Lawson Products (LAWS) Tops Q4 EPS by 15c

Lawson Products (NASDAQ: LAWS) reported Q4 EPS of $0.60, $0.15 better than the analyst estimate of $0.45. Revenue for the quarter came in at $98.1 million versus the consensus estimate of $98.45 million.

“Our fourth quarter results demonstrate the progress we are making with the ongoing recovery from the 2020 pandemic-driven economic downturn. Net sales for the quarter grew 11% to $98.1 million including a full quarter's contribution from the Partsmaster acquisition completed in the third quarter. Profitability improved as we continued to leverage our cost structure and realize the benefit from our recent acquisition. Our organic adjusted EBITDA performance has returned to pre-pandemic levels. Cash flow generated during the quarter was $12.5 million and we finished 2020 in a strong financial position," said Michael DeCata, president and chief executive officer.

“We are pleased with the Partsmaster performance and it has proven to be an excellent strategic fit. During the fourth quarter, Partsmaster contributed sales of $17.2 million to the organization and was accretive to our full-year consolidated 9.7% operating margin.

“Reflecting on last year’s results, I am encouraged by our performance during the most difficult business environment we have ever encountered. We were able to ensure the safety of our team while providing outstanding service to our customers at the standards they have come to expect. By adjusting our cost structure for the effect of the pandemic to protect our profitability and cash flows, we are well positioned entering 2021. We have been able to recover organic daily sales by 38% over April’s levels, improve operating margins, and integrate a significant acquisition in an uncertain business environment. With continued focus on our cost structure and almost 100 more sales reps than in 2019, we expect to continue to deliver improving results and execute on our ongoing growth strategy,” concluded DeCata.

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

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