Acquisition and Revenue - The company acquired Partsmaster for $35.3 million, contributing $15.7 million in revenue and $0.7 million in operating income in Q1 2021[93] - Total sales increased by 13.8% to $103.6 million in Q1 2021 compared to $91.0 million in Q1 2020, with Partsmaster accounting for $15.7 million of this increase[109] - Average daily sales rose by 15.6% to $1.644 million in Q1 2021, with Partsmaster contributing $0.250 million[109] Profitability and Margins - Gross profit increased by $5.6 million to $54.6 million in Q1 2021, with a gross profit margin of 52.7% compared to 53.7% in the prior year[111] - Adjusted non-GAAP operating income was $7.2 million in Q1 2021, down from $7.9 million in Q1 2020, primarily due to lower organic sales[105] - The organic Lawson MRO segment gross margin declined to 58.2% in Q1 2021 from 60.8% in the prior year, impacted by a shift to lower margin products[111] Expenses - Selling expenses increased to $23.8 million in Q1 2021 from $20.0 million in Q1 2020, driven by $5.5 million from the Partsmaster acquisition[1] - General and administrative expenses rose to $25.9 million in Q1 2021 from $10.3 million in Q1 2020, primarily due to an $11.7 million increase in stock-based compensation[2] - Interest expense was $0.3 million in Q1 2021, an increase of $0.2 million compared to Q1 2020, mainly due to interest on the accrued acquisition liability[3] Tax and Other Income - Income tax expense was $1.3 million in Q1 2021, with a 26.0% effective tax rate, compared to $4.9 million and 28.0% in Q1 2020[5] - Other income, net increased by $1.5 million in Q1 2021, primarily due to Canadian currency exchange rate effects[4] Cash and Capital Expenditures - Available cash and cash equivalents were $26.3 million on March 31, 2021, down from $28.4 million on December 31, 2020[6] - Capital expenditures for Q1 2021 were $0.8 million, up from $0.6 million in Q1 2020, primarily for distribution center improvements[7] - The company had $64.4 million of borrowing availability remaining under its Revolving Credit Facility as of March 31, 2021[8] Future Obligations and Strategic Focus - A payment of $33.0 million is due to the sellers of Partsmaster in May 2021, guaranteed under the Purchase Agreement[9] - The company believes cash from operations and available funds under the Credit Agreement are sufficient to meet operating requirements and strategic initiatives[10] Sales and Productivity - The average sales representative headcount increased to 1,083 in Q1 2021 from 998 in Q1 2020, with productivity rising 7.3% to $1,360 per rep per day[103] - The company plans to continue focusing on increasing the productivity of its sales representatives[103] Market Indicators - The PMI index averaged 61.4 in Q1 2021, indicating expansion in the manufacturing sector compared to 50.0 in Q1 2020[102] - The company deferred $3.5 million in employer-side social security payments under the CARES Act, with $1.7 million expected to be paid in 2021[97]

Financial Performance - Revenue for 2020 was $351.6 million, a decrease of 5.2% from $370.8 million in 2019[147] - Gross profit for 2020 was $186.5 million, representing 53.1% of net sales, down from 53.2% in 2019[147] - Operating income increased to $20.6 million in 2020 from $9.1 million in 2019, reflecting improved cost control measures[151] - Net income for 2020 was $15.1 million, a significant increase from $7.2 million in 2019[147] - Adjusted non-GAAP operating income decreased to $27.4 million in 2020 from $28.6 million in 2019, impacted by lower sales[151] - Consolidated revenue decreased by 5.2% to $351.6 million in 2020 from $370.8 million in 2019, primarily due to the COVID-19 pandemic and lower sales to oil and gas customers[154] - Gross profit decreased to $186.5 million in 2020 from $197.4 million in 2019, with a gross profit margin of 53.1%, down from 53.2% in the previous year[155] - Average daily sales decreased to $1.390 million in 2020 compared to $1.471 million in 2019, despite having one more selling day in 2020[154] - Basic income per share rose to $1.68 in 2020 from $0.81 in 2019, marking a substantial increase of 107.4%[202] - Income from operations before income taxes was $20.785 million for the year ended December 31, 2020, compared to $9.674 million in 2019[275] Cash Flow and Liquidity - The company had $28.4 million in unrestricted cash and $66.0 million in borrowing capacity as of December 31, 2020[137] - Cash provided by operating activities was $32.5 million in 2020, significantly higher than $9.2 million in 2019, reflecting stronger operating results[164] - Total cash, cash equivalents, and restricted cash at the end of 2020 amounted to $29,391,000, up from $6,297,000 at the end of 2019[209] - As of December 31, 2020, the company had no borrowings under its Credit Agreement and had borrowing availability of $66.0 million[167] - The company continues to monitor its liquidity and cash flows while managing operating expenses in response to COVID-19[138] Acquisitions - The acquisition of Partsmaster in August 2020 cost $35.3 million, with $2.3 million paid at acquisition and $33.0 million due in May 2021[143] - The Company completed the acquisition of Partsmaster on August 31, 2020, for $35.3 million in cash, resulting in $7.7 million of intangible assets[193] - Partsmaster contributed $22.6 million in sales and $13.2 million in gross profit since its inclusion on August 31, 2020[154][155] - The Company acquired Partsmaster for a purchase price of $35.3 million in cash, with $2.3 million paid at closing and the remaining $33.0 million due in May 2021[247][248] Expenses and Cost Management - Selling expenses decreased to $76.8 million in 2020 from $85.3 million in 2019, representing 21.8% of sales compared to 23.0% in 2019[157] - General and administrative expenses decreased to $89.2 million in 2020 from $102.9 million in 2019, primarily due to a reduction in stock-based compensation and other cost control measures[158] - The Company recorded severance costs of $2.077 million in 2020, resulting in an ending balance of $1.251 million in the reserve for severance[303] Assets and Liabilities - Total current assets increased to $143.1 million as of December 31, 2020, compared to $106.4 million as of December 31, 2019[199] - Accounts receivable increased to $44.5 million in 2020, up from $38.8 million in 2019, reflecting a growth of approximately 14.3%[199] - Total liabilities increased to $133.9 million in 2020 from $96.4 million in 2019, indicating a rise of approximately 38.9%[199] - The Company has a current liability for accrued acquisition liability of $32.7 million as of December 31, 2020[199] Goodwill and Intangible Assets - The Company recorded a goodwill impairment charge of $1.9 million related to the Screw Products reporting unit[159] - The Company's consolidated goodwill balance as of December 31, 2020, was $35.2 million, with the Bolt reporting unit's goodwill at $13.8 million[190] - Goodwill increased from $20.9 million in 2019 to $35.2 million in 2020, reflecting the cost of business acquisitions exceeding the fair value of identifiable net assets[226] - The gross carrying amount of intangible assets was $23.638 million as of December 31, 2020, with a net carrying value of $18.503 million[273] Taxation - Total income tax expense for the year ended December 31, 2020, was $5.672 million, compared to $2.453 million for the year ended December 31, 2019, representing an increase of 131.0%[277] - The effective income tax rate for 2020 was 27.3%, up from 25.4% in 2019[277] - The Company recorded $35.2 million of tax-deductible goodwill from recent acquisitions, which may provide future tax benefits[281] - As of December 31, 2020, the company had $7.2 million of U.S. federal net operating loss carryforwards, expiring beginning in 2030, and $7.7 million of state net operating loss carryforwards, expiring through 2034[277] Stock and Compensation - The Company repurchased 47,504 shares of its common stock in 2020 at a cost of $3.3 million[241][242] - The Company contributed $2.9 million to its 401(k) plan in 2020, down from $3.2 million in 2019[307] - As of December 31, 2020, the outstanding Stock Performance Rights (SPRs) were 581,000, with an intrinsic value of $14.6 million[320] - Compensation expenses related to Restricted Stock Awards (RSAs) were $1.2 million in 2020, down from $1.3 million in 2019[322]

Lawson Products, Inc. (LAWS) Q3 2020 Earnings Conference Call October 29, 2020 9:00 AM ET Company Participants Michael DeCata - President and Chief Executive Officer Ron Knutson - Chief Financial Officer Conference Call Participants Carl Schemm - KeyBanc Capital Markets Kevin Steinke - Barrington Research Operator Good morning, ladies and gentlemen, and welcome to the Lawson Products Third Quarter 2020 Earnings Call. This call will be hosted by Michael DeCata, Lawson Products’ President and Chief Executive ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report under Section 13 OR 15(d) of the Securities Exchange Act of 1934 For quarterly period ended September 30, 2020 or ☐ Transition Report under Section 13 OR 15(d) of the Securities Exchange Act of 1934 For the transition period from to | --- | --- | --- | |---------------------------------------------------------------|--------------------------------------------------------------------------------- ...

Lawson Products, Inc. (LAWS) Q2 2020 Earnings Conference Call July 30, 2020 9:00 AM ET Company Participants Michael DeCata – President and Chief Executive Officer Ron Knutson – Chief Financial Officer Conference Call Participants Kevin Steinke – Barrington Research Operator Good morning, ladies and gentlemen, and welcome to the Lawson Products Second Quarter 2020 Earnings Call. This call will be hosted by Michael DeCata, Lawson Products' President and Chief Executive Officer, and Ron Knutson, Lawson Product ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol Name of each exchange on which registered Common stock, $1.00 par value LAWS NASDAQ Global Select Market FORM 10-Q (Mark One) ☒ Quarterly Report under Section 13 OR 15(d) of the Securities Exchange Act of 1934 For quarterly period ended June 30, 2020 or ☐ Transition Report under Section 13 OR 15(d) of the Securities Exchange Act of 1934 For t ...

Lawson Products, Inc. (LAWS) Q1 2020 Results Conference Call April 30, 2020 9:00 AM ET Company Participants Michael DeCata - President and CEO Ron Knutson - CFO Conference Call Participants Kevin Steinke - Barrington Research Carl Schemm - KeyBanc Capital Markets Operator Good morning, ladies and gentlemen, and welcome to the Lawson Products First Quarter 2020 Earnings Call. This call will be hosted by Michael DeCata, Lawson Products' President and Chief Executive Officer; and Ron Knutson, Lawson Products' ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ý Quarterly Report under Section 13 OR 15(d) of the Securities Exchange Act of 1934 For quarterly period ended March 31, 2020 or ¨ Transition Report under Section 13 OR 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file Number: 0-10546 | --- | --- | |-----------------------------------------------------------------------------|------------------------------------------| | ...

Lawson Products, Inc (LAWS) Q4 2019 Earnings Conference Call February 27, 2020 9:00 AM ET Company Participants Michael DeCata - President and Chief Executive Officer Ron Knutson - Chief Financial Officer Conference Call Participants Kevin Steinke - Barrington Research Carl Schemm - KeyBanc Operator Good morning, ladies and gentlemen and welcome to the Lawson Products Fourth Quarter 2019 Earnings Call. This call will be hosted by Michael DeCata, Lawson Products’ President and Chief Executive Officer and Ron ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 0-10546 LAWSON PRODUCTS, INC. (Exact Name of Registrant as Specified in Charter) (State or other jurisdiction of (I.R.S. Employer Delawa ...