Financial Performance - Total sales increased 7.1% to $94.8 million in Q3 2019 compared to $88.5 million in Q3 2018[105] - Gross profit rose by $2.5 million to $50.6 million in Q3 2019, with a gross profit margin of 53.4% compared to 54.3% a year ago[106] - Operating income improved to $6.4 million in Q3 2019 from a loss of $2.3 million in Q3 2018[104] - Net income for Q3 2019 was $4.8 million, a significant recovery from a loss of $0.8 million in Q3 2018[104] - Revenue for the nine months ended September 30, 2019 increased 7.2% to $282.2 million from $263.4 million for the same period in 2018[115] - Gross profit increased to $150.5 million in the first nine months of 2019, with a gross profit margin of 53.3%, down from 54.5% a year ago[117] Expenses - Selling expenses decreased to $21.3 million in Q3 2019, representing 22.4% of sales, down from 25.0% in Q3 2018[107] - General and administrative expenses fell to $22.9 million in Q3 2019 from $28.2 million in Q3 2018, primarily due to a decrease in stock-based compensation[108] - Selling expenses decreased to $64.9 million, representing 23.0% of sales, down from 25.1% in the prior year[118] - General and administrative expenses slightly decreased to $72.1 million, with a minor reduction in stock-based compensation[119] - Interest expense decreased to $0.1 million in Q3 2019 from $0.3 million in Q3 2018 due to lower borrowing levels[109] - Interest expenses decreased by $0.3 million due to lower average outstanding borrowings compared to the prior year[120] Taxation - Income tax expense was $1.5 million in Q3 2019, resulting in a 24.2% effective tax rate, compared to an income tax benefit of $1.5 million and a 65.2% effective tax rate in Q3 2018[111] - Income tax expenses were $3.7 million, resulting in a 26.6% effective tax rate for the first nine months of 2019[122] Sales Segments - The Lawson segment's total sales increased by 6.1% to $83.5 million, while Bolt Supply sales grew by 15.0% to $11.3 million[105] Cash and Financing - Available cash and cash equivalents were $8.6 million on September 30, 2019, down from $11.9 million at the end of 2018[125] - The company authorized a stock repurchase program of up to $7.5 million, purchasing 32,362 shares at an average price of $38.13[127] - A new five-year credit agreement was entered into on October 11, 2019, providing for $100.0 million of revolving commitments, with potential to increase to $150.0 million[130] Sales Representatives - The average number of sales representatives increased to 989 in Q3 2019 from 967 in Q3 2018, with productivity per rep rising 1.3% to $1,309[102] Other Income - Other income increased by $1.1 million, primarily due to Canadian currency exchange rate effects[121]
DSG(DSGR) - 2019 Q3 - Quarterly Report