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Sep 30, 2020
DSG Q3 2020 Earnings Report
Lawson Products' third quarter results confirmed recovery from the pandemic-led economic downturn, with net sales growing 25.1% over the prior quarter and adjusted EBITDA margin improving to 10.4%.
Key Takeaways
Lawson Products reported a decrease in net sales by 4.7% compared to the same quarter last year, but a 25.1% increase compared to the second quarter of 2020. The adjusted EBITDA margin improved to 10.4% from 8.7% in the second quarter. The company completed the acquisition of Partsmaster and is focused on rebuilding organic growth and improving operational efficiency.
Acquired Partsmaster, a leading MRO distributor based in Texas, for $35.3 million.
Third quarter sales reached $90.3 million, a 25.1% increase over the second quarter of 2020.
Reported operating income was $2.0 million, while adjusted operating income increased to $7.7 million, a 61.2% improvement over the second quarter of 2020.
Cash on hand at the end of the quarter was $17.2 million, compared to $5.5 million at the end of 2019.
Forward Guidance
Lawson Products expects some challenges due to the ongoing impact of the pandemic on the industrial economy, but is on the path to rebuild organic growth with better customer-facing business processes and more efficient operations.
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