Lawson Products (LAWS) Tops Q3 EPS by 7c, Revenues Beat

Lawson Products (NASDAQ: LAWS) reported Q3 EPS of $0.62, $0.07 better than the analyst estimate of $0.55. Revenue for the quarter came in at $90.3 million versus the consensus estimate of $87.07 million.

“Our third quarter results confirm we are on the right path recovering from the impact of the pandemic-led economic downturn. Net sales for the third quarter grew 25.1% over the prior quarter and our adjusted EBITDA margin improved to 10.4% from 8.7% in the second quarter. Account collections and cash flows remain strong and our balance sheet has strengthened despite the economic uncertainty that still exists,” said Michael DeCata, president and chief executive officer.

“During the quarter, we completed the acquisition of Partsmaster, another leading MRO distributor, with sales of $63 million over the last twelve months. Partsmaster is an excellent strategic fit with many similarities to Lawson. Less than 60 days since closing we are already acting on opportunities created by this combination. We are confident that we will produce value exceeding the sum-of-the-parts.

DeCata continued, “The pandemic continues to impact the industrial economy with uncertainties that still exist. Although we expect some challenges, Lawson is on the path to rebuild organic growth with better customer-facing business processes and more efficient operations that will benefit our customers, employees and shareholders.

“Recognizing that most of our customers have been impacted by the medical and economic consequences of the COVID-19 pandemic, our strategy has continued to be to protect our entire team and distribution capabilities. This has enabled us to quickly stabilize our customer supply chains and provide outstanding customer service while sequentially improving our profitability and cash flows. Pairing this with the acquisition of Partsmaster continues to position Lawson for long-term growth and value accretion.”

“I would like to acknowledge the tremendous efforts of our entire team, delivering essential goods and services during difficult circumstances. Thank you, also, to our growing list of customers - everyone at Lawson Products is here to serve you to make your jobs easier and to traverse these challenging times together.”

For earnings history and earnings-related data on Lawson Products (LAWS) click here.

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