Lawson Products Reports First Quarter

Apr 20, 2001, 01:00 ET from Lawson Products, Inc.

    DES PLAINES, Ill., April 20 /PRNewswire Interactive News Release/ --
 Lawson Products, Inc. (Nasdaq: LAWS), Friday said net sales for the first
 quarter decreased 3.0 percent to $83,650,000 compared to the first quarter of
 last year.  Sales activity reflected one less business day for the quarter
 compared to the same period last year and the slowdown in the economy which
 the Company began to experience towards the end of last year.
     Net income for the quarter was $3,238,000, a decrease of 49.7 percent
 compared to the first quarter of last year.  Diluted net income per share was
 $.33, a decrease of 48.4 percent.  The decrease in net income was partly
 attributable to a decrease in gross margin of $2,621,000 resulting from
 reduced sales.
     An increase in selling, general and administrative expenses of $2,639,000,
 a 5.7 percent increase over the same period in 2000, also contributed to the
 decrease in net income.  The increase in these expenses included additional
 staff in anticipation of increased activity related to the Lawson core
 businesses and to the acquisition of certain assets and the sales forces of
 the North American Industrial Products and Kent Automotive Divisions of
 Premier Farnell plc. which was completed March 30.  The sales forces acquired
 represent the five business units acquired and included over 360 field sales
 representatives and 70 telephone sales personnel.
     Higher wages and attendant costs, and transition costs associated with the
 acquisition, including costs of moving inventory, warehouse realignment,
 information systems modifications, travel and other costs necessary to service
 the newly acquired businesses were factors reflected in the increase in
 selling, general and administrative expenses for the first quarter.  The new
 business activities commenced during April, 2001.  The Company anticipates
 additional transition costs associated with the acquisition will be incurred
 in the second quarter.
     The Company is focused on efforts designed to provide profitable growth in
 the near and long term.  Sales conferences held in February and March were
 utilized to make field sales representatives aware of newly created sales
 channels and tools becoming available to assist them in increasing
 productivity.  The Company is fully committed to implementing, as efficiently
 as practicable, the use of the new channels and sales tools and the transition
 of the newly acquired businesses and sales professionals into the Lawson
 Family of Businesses.  The Company believes these efforts will yield improved
 results over the remainder of the year.
     Lawson Products is an international seller and distributor of systems,
 services and products to the industrial, commercial and institutional
 maintenance, repair and replacement marketplace.  The company also
 manufactures, sells and distributes production and specialized component parts
 to the original equipment marketplace including the automotive, appliance,
 aerospace, construction and transportation industries.
     This press release contains historical information and forward-looking
 statements and opinions.  Statements looking forward in time are included in
 this press release pursuant to the "safe harbor" provision of the Private
 Securities Litigation Reform Act of 1995.  These statements are based on
 management's current expectations or beliefs and are subject to a number of
 factors and uncertainties that could cause actual results to differ materially
 from those described in the forward-looking statements.  The factors that
 could cause actual results to differ materially from those described in the
 forward-looking statements include increased competition, seasonality, or an
 economic downturn.
 
 
                     LAWSON PRODUCTS, INC. AND SUBSIDIARIES
                       CONSOLIDATED SUMMARY OF OPERATIONS
                                  (UNAUDITED)
 
 
                                                Three Months Ended March 31,
                                               2001          2000     % Change
 
 
     Net Sales (a)                          $83,649,631   $86,280,099    -3.0%
 
 
     Income
      Before Taxes (b)                        5,825,376    10,907,505   -46.6%
 
 
     Provision
      for Income Taxes                        2,587,000     4,463,000
 
 
     Net Income (b)                           3,238,376     6,444,505   -49.7%
 
 
     Net Income per share of Common Stock:
          Basic                                   $0.33         $0.64   -48.4%
          Diluted                                 $0.33         $0.64   -48.4%
 
 
     Weighted Average Shares Outstanding:
          Basic                               9,710,354    10,092,922
          Diluted                             9,729,974    10,098,220
 
 
 
     (a) Net sales for 2000 have been restated to reflect a shipping revenue
         reclassification required by the the adoption of Emerging Issues Task
         Force No. 00-10 in the fourth quarter of 2000.
 
     (b) The Company uses estimated gross profit rates to determine inventories
         and cost of goods sold during interim periods.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X24773725
 
 

SOURCE Lawson Products, Inc.
    DES PLAINES, Ill., April 20 /PRNewswire Interactive News Release/ --
 Lawson Products, Inc. (Nasdaq: LAWS), Friday said net sales for the first
 quarter decreased 3.0 percent to $83,650,000 compared to the first quarter of
 last year.  Sales activity reflected one less business day for the quarter
 compared to the same period last year and the slowdown in the economy which
 the Company began to experience towards the end of last year.
     Net income for the quarter was $3,238,000, a decrease of 49.7 percent
 compared to the first quarter of last year.  Diluted net income per share was
 $.33, a decrease of 48.4 percent.  The decrease in net income was partly
 attributable to a decrease in gross margin of $2,621,000 resulting from
 reduced sales.
     An increase in selling, general and administrative expenses of $2,639,000,
 a 5.7 percent increase over the same period in 2000, also contributed to the
 decrease in net income.  The increase in these expenses included additional
 staff in anticipation of increased activity related to the Lawson core
 businesses and to the acquisition of certain assets and the sales forces of
 the North American Industrial Products and Kent Automotive Divisions of
 Premier Farnell plc. which was completed March 30.  The sales forces acquired
 represent the five business units acquired and included over 360 field sales
 representatives and 70 telephone sales personnel.
     Higher wages and attendant costs, and transition costs associated with the
 acquisition, including costs of moving inventory, warehouse realignment,
 information systems modifications, travel and other costs necessary to service
 the newly acquired businesses were factors reflected in the increase in
 selling, general and administrative expenses for the first quarter.  The new
 business activities commenced during April, 2001.  The Company anticipates
 additional transition costs associated with the acquisition will be incurred
 in the second quarter.
     The Company is focused on efforts designed to provide profitable growth in
 the near and long term.  Sales conferences held in February and March were
 utilized to make field sales representatives aware of newly created sales
 channels and tools becoming available to assist them in increasing
 productivity.  The Company is fully committed to implementing, as efficiently
 as practicable, the use of the new channels and sales tools and the transition
 of the newly acquired businesses and sales professionals into the Lawson
 Family of Businesses.  The Company believes these efforts will yield improved
 results over the remainder of the year.
     Lawson Products is an international seller and distributor of systems,
 services and products to the industrial, commercial and institutional
 maintenance, repair and replacement marketplace.  The company also
 manufactures, sells and distributes production and specialized component parts
 to the original equipment marketplace including the automotive, appliance,
 aerospace, construction and transportation industries.
     This press release contains historical information and forward-looking
 statements and opinions.  Statements looking forward in time are included in
 this press release pursuant to the "safe harbor" provision of the Private
 Securities Litigation Reform Act of 1995.  These statements are based on
 management's current expectations or beliefs and are subject to a number of
 factors and uncertainties that could cause actual results to differ materially
 from those described in the forward-looking statements.  The factors that
 could cause actual results to differ materially from those described in the
 forward-looking statements include increased competition, seasonality, or an
 economic downturn.
 
 
                     LAWSON PRODUCTS, INC. AND SUBSIDIARIES
                       CONSOLIDATED SUMMARY OF OPERATIONS
                                  (UNAUDITED)
 
 
                                                Three Months Ended March 31,
                                               2001          2000     % Change
 
 
     Net Sales (a)                          $83,649,631   $86,280,099    -3.0%
 
 
     Income
      Before Taxes (b)                        5,825,376    10,907,505   -46.6%
 
 
     Provision
      for Income Taxes                        2,587,000     4,463,000
 
 
     Net Income (b)                           3,238,376     6,444,505   -49.7%
 
 
     Net Income per share of Common Stock:
          Basic                                   $0.33         $0.64   -48.4%
          Diluted                                 $0.33         $0.64   -48.4%
 
 
     Weighted Average Shares Outstanding:
          Basic                               9,710,354    10,092,922
          Diluted                             9,729,974    10,098,220
 
 
 
     (a) Net sales for 2000 have been restated to reflect a shipping revenue
         reclassification required by the the adoption of Emerging Issues Task
         Force No. 00-10 in the fourth quarter of 2000.
 
     (b) The Company uses estimated gross profit rates to determine inventories
         and cost of goods sold during interim periods.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X24773725
 
 SOURCE  Lawson Products, Inc.