CHICAGO—Lawson Products, Inc.(NASDAQ:LAWS) (“Lawson” or the “Company”), a distributor of products and services to the MRO marketplace, today announced results for the fourth quarter ended December 31, 2018.
The company reported Q4 EPS of $0.22, $0.10 better than the analyst estimate of $0.12. Revenue for the quarter came in at $86.3 million versus the consensus estimate of $86.01 million.
- Sales of $86.3 million in the quarter, up 7.0%. Full year sales increase of 14.3% to $349.6 million.
- Lawson MRO segment average daily sales increased 5.6% in 4Q18, primarily due to a 5.4% improvement in sales rep productivity
- Operating income of $4.1 million in the quarter compared to operating income of $0.2 million in the prior year quarter. Adjusted non-GAAP EBITDA, excluding stock based compensation, severance and other non-recurring charges, of $5.1 million for the quarter compared to $3.0 million a year ago quarter. (See reconciliation in Table 2).
- Full year operating income of $9.2 million. Adjusted non-GAAP EBITDA improvement of $9.4 million or 59% to $25.2 million as compared to 2017. (See reconciliation in Table 2)
- Net income of $2.6 million or $0.28 per diluted share for the quarter. On a full year basis, adjusted net income of $13.0 million or $1.39 per diluted share compared to $0.45 in 2017 (See reconciliation in Table 3)
- Cash flows from operating activities of $20.3 million in 2018, including $10.1 million in 4Q18, compared to $7.2 million for all of 2017
- Completed the acquisition of Dallas-based Screw Products, Inc. on October 1, 2018
“The fourth quarter ended with a strong sales increase of 7.0% resulting in full year sales growth to over 14%. Reported operating income improved to $4.1 million for the quarter, up significantly over $0.2 million a year ago. 2018 was a very strong year for the company in both sales and operating income driven by leveraging the investments that we’ve made over the past several years. I’m very encouraged with these results and anticipate that we’ll continue generating incremental earnings with our existing growth strategy,” said Michael DeCata, president and chief executive officer.
“Our 2018 growth was achieved through broad-based demand within the Lawson segment in all customer and product categories, a full year of The Bolt Supply House included in our results and the completion of our sixth acquisition in three years at the beginning of the quarter. We continue to leverage the infrastructure investments to position us to increase EBITDA and free cash flows at an accelerated rate over our sales increase. We are confident that our future growth will generate improved operating results and margins enhanced by accretive acquisitions,” said DeCata.
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