DSG Q2 2020 Earnings Report
Key Takeaways
Lawson Products reported a decrease in net sales by 24.9% year-over-year due to the COVID-19 pandemic. However, the company maintained a steady gross margin of 53.1% and achieved net cash generated from operations of $14.7 million. The company ended the quarter with $8.3 million in a positive cash position, net of debt.
Sales decreased 24.9% year-over-year, but showed sequential improvement in May and June.
Gross margin remained steady at 53.1%, despite a shift in sales mix.
Net cash from operations was $14.7 million, with a focus on preserving cash.
The company had a positive cash position of $8.3 million, net of debt, and $97.3 million available under its credit facility.
DSG
DSG
Forward Guidance
Lawson is focused on improving sales to leverage its streamlined cost structure and expand operating margins. The company believes the actions taken will position it for solid growth, and it will be opportunistic in utilizing its strong balance sheet and cash position for accretive acquisitions.