1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
10qk
10qk
Articles 

Lawson Products Inc. Reports Operating Results (10-Q)

July 28, 2010 | About:

Lawson Products Inc. (NASDAQ:LAWS) filed Quarterly Report for the period ended 2010-06-30.

Lawson Products Inc. has a market cap of $148.7 million; its shares were traded at around $17.46 with a P/E ratio of 25 and P/S ratio of 0.4. The dividend yield of Lawson Products Inc. stocks is 1.4%.LAWS is in the portfolios of Arnold Van Den Berg of Century Management, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

MRO net sales increased 5.2% in the second quarter of 2010, to $84.7 million from $80.6 million in the prior year period. OEM net sales increased $2.4 million or 16.7% in the second quarter of 2010, to $16.9 million from $14.5 million in the prior year period.

We reported net income of $1.7 million or $0.20 per share in the second quarter of 2010. The 2010 net income was driven by increased sales and cost savings initiatives offset by pre-tax $0.6 million expense related to our ERP implementation and $1.2 million related to severance costs. The second quarter of 2009 net income of $1.8 million or $0.22 per share benefited from the $0.4 million gain on sale of the Charlotte distribution center.

Net sales for the first half of 2010 increased 1.2% to $196.7 million, from $194.4 million in the first half of 2009. MRO net sales increased $1.0 million or 0.6% in the first half of 2010, to $164.4 million from $163.4 million in the prior year period. OEM net sales increased $1.3 million or 4.2% in the first six months of 2010, to $32.3 million from $31.0 million in the prior year period.

We reported net income of $4.0 million or $0.47 per share in the first six months of 2010. The 2010 net income was driven by improved gross profit margins, a $1.7 million gain related to the sale of the Dallas distribution center and cost savings initiatives. These items were offset by pre-tax $0.6 million expense related to our ERP implementation and $1.7 million of severance costs. The first six months of 2009 net loss of $4.1 million or $0.48 per share loss was partially driven by $5.9 million of severance costs.

Cash flows from investing activities in the first six months of 2010 and 2009 benefited from the receipt of $2.0 million and $2.2 million, respectively from the sale of our Dallas, Texas and Charlotte, North Carolina distribution centers. Capital expenditures, including $2.8 million related to the implementation of a new ERP system, were $3.6 million for the first six months of 2010 compared to $2.0 million in 2009. We anticipate that the total cost of the ERP implementation, including both capital and expense, will range from $15 million to $20 million and will continue through 2011.

Net cash provided by financing activities in the first six months of 2010 was $3.6 million compared to cash used for financing activities of $9.9 million in the first six months of 2009. The change was primarily due to a net borrowing on our revolving credit line of $5.2 million in the first half of 2010 compared to a net payment of $7.7 million in the first six months of 2009. On June 30, 2010, we had $5.2 million of borrowings outstanding on our revolving line of credit and $1.4 million of outstanding letters of credit, leaving borrowing availability of $48.4 million subject to the following covenant limitations.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 4.0/5 (3 votes)

Comments

Please leave your comment:


Select portfolio(s):

  • Loading...

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK