Lawson Products Inc. (LAWS, Financial) filed Quarterly Report for the period ended 2012-06-30.
Lawson Products, Inc. has a market cap of $85.1 million; its shares were traded at around $9.08 with and P/S ratio of 0.3. The dividend yield of Lawson Products, Inc. stocks is 4.9%.
Gross profit decreased $11.5 million in the second quarter of 2012, to $36.8 million from $48.3 million in the prior year period. MRO gross profit as a percent of net MRO sales decreased to 51.2% in the second quarter of 2012, compared to 59.1% achieved in the second quarter of 2011, primarily due to lower outbound freight recoveries, $5.8 million of additional inventory reserves primarily as a result of discontinuing certain products, additional labor to support customer service and a shift toward higher volume national customers with lower margins. Strategic accounts represented approximately 12.8% of MRO sales for the quarter versus approximately 10.5% in the prior year quarter.
Selling expenses consist of commissions paid to our independent sales representatives, employee sales expenses and related expenses to support our sales efforts. Selling expenses decreased to $21.8 million in the second quarter of 2012 from $23.0 million in the prior year quarter, primarily due to lower sales. Selling expenses increased as a percent of sales to 29.3% in 2012 compared to 27.3% in 2011 due to the impact of fixed selling costs on decreased sales levels.
MRO net sales decreased 11.7% in the first half of 2012, to $141.2 million from $159.9 million in the prior year period. MRO average daily sales decreased to $1.103 million in the first half of 2012 compared to $1.259 million in the first half of 2011. The decrease was mainly driven by a sales decline of $8.2 million within the government segment primarily within bases that support troop deployment, lower freight revenues, an increase in small customer account attrition and a decline in sales representatives from a year ago. The decline was partially offset by an increase within the strategic accounts segment.
Gross profit decreased $20.0 million in the first half of 2012, to $78.2 million from $98.2 million in the prior year period. MRO gross profit as a percent of net MRO sales decreased to 53.8% in the first half of 2012, compared to 60.6% achieved in the first half of 2011, primarily due to lower outbound freight recoveries, an increase of $6.4 million in our inventory reserves, additional labor to support our customer service and a shift toward higher volume national customers with lower margins. Strategic accounts represented approximately 12.1% of MRO sales for the half versus approximately 10.2% in the prior year half.
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Lawson Products, Inc. has a market cap of $85.1 million; its shares were traded at around $9.08 with and P/S ratio of 0.3. The dividend yield of Lawson Products, Inc. stocks is 4.9%.
Highlight of Business Operations:
MRO net sales decreased 13.4% in the second quarter of 2012, to $69.8 million from $80.6 million in the prior year period. MRO average daily sales decreased to $1.091 million in the second quarter of 2012 compared to $1.260 million in the second quarter of 2011. The decrease was mainly driven by a sales decline of $3.8 million within the government segment primarily within bases that support troop deployment, lower freight revenues, an increase in small customer account attrition and a decline in sales representatives from a year ago. The decline was partially offset by an increase within the strategic accounts segment.Gross profit decreased $11.5 million in the second quarter of 2012, to $36.8 million from $48.3 million in the prior year period. MRO gross profit as a percent of net MRO sales decreased to 51.2% in the second quarter of 2012, compared to 59.1% achieved in the second quarter of 2011, primarily due to lower outbound freight recoveries, $5.8 million of additional inventory reserves primarily as a result of discontinuing certain products, additional labor to support customer service and a shift toward higher volume national customers with lower margins. Strategic accounts represented approximately 12.8% of MRO sales for the quarter versus approximately 10.5% in the prior year quarter.
Selling expenses consist of commissions paid to our independent sales representatives, employee sales expenses and related expenses to support our sales efforts. Selling expenses decreased to $21.8 million in the second quarter of 2012 from $23.0 million in the prior year quarter, primarily due to lower sales. Selling expenses increased as a percent of sales to 29.3% in 2012 compared to 27.3% in 2011 due to the impact of fixed selling costs on decreased sales levels.
MRO net sales decreased 11.7% in the first half of 2012, to $141.2 million from $159.9 million in the prior year period. MRO average daily sales decreased to $1.103 million in the first half of 2012 compared to $1.259 million in the first half of 2011. The decrease was mainly driven by a sales decline of $8.2 million within the government segment primarily within bases that support troop deployment, lower freight revenues, an increase in small customer account attrition and a decline in sales representatives from a year ago. The decline was partially offset by an increase within the strategic accounts segment.
Gross profit decreased $20.0 million in the first half of 2012, to $78.2 million from $98.2 million in the prior year period. MRO gross profit as a percent of net MRO sales decreased to 53.8% in the first half of 2012, compared to 60.6% achieved in the first half of 2011, primarily due to lower outbound freight recoveries, an increase of $6.4 million in our inventory reserves, additional labor to support our customer service and a shift toward higher volume national customers with lower margins. Strategic accounts represented approximately 12.1% of MRO sales for the half versus approximately 10.2% in the prior year half.
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