SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) : October 22, 2003
LAWSON PRODUCTS, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-10546 36-2229304
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
incorporation)
1666 East Touhy Avenue, Des Plaines, Illinois 60018
(Address of principal executive offices) (Zip code)
(Registrant's telephone number, including area code) (847) 827-9666
(Former name or former address, if changed since last report) Not Applicable
Lawson Products, Inc.
Current Report of Form 8-K
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
99.1 Press release issued by Lawson Products, Inc. on October 22, 2003.
Item 12. Results of Operations and Financial Condition.
On October 22, 2003, Lawson Products, Inc. issued a press release
announcing its operating results for the fiscal quarter ended September
30, 2003. A copy of the press release is attached as Exhibit 99.1 to
this Form 8-K.
The information in this Form 8-K is being furnished and shall not be
deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of
1934 or otherwise subject to the liabilities of that Section. The information in
this Form 8-K may only be incorporated by reference in another filing under the
Securities Exchange Act or Securities Act of 1933 if such subsequent filing
specifically references this Form 8-K.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
LAWSON PRODUCTS, INC.
/s/ Joseph L. Pawlick
------------------------------------
Joseph L. Pawlick
Date: October 30, 2003 Senior Vice President, Accounting
(principal accounting officer)
EXHIBIT INDEX
NUMBER DESCRIPTION
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99.1 Press release issued by Lawson Products, Inc. on October 22, 2003.
Exhibit 99.1
LAWSON PRODUCTS REPORTS THIRD QUARTER RESULTS
DES PLAINES, Ill., Oct. 22 /PRNewswire-FirstCall/ -- Lawson Products, Inc.
(Nasdaq: LAWS) reported net income in the third quarter of $4.4 million, a 16.1%
increase over net income in the third quarter of 2002 of $3.8 million. On a per
share basis, 2003 third quarter net income was $0.46 against $0.39 for the third
quarter 2002, an increase of 17.9%. Third quarter 2003 net sales were $99.3
million, an increase of 0.8% from net sales of $98.5 million in the third
quarter of 2002.
For the first nine months of 2003, net income was $12.3 million ($1.29 per
share) versus $12.3 million ($1.28 per share) for the first nine months of 2002.
Year-to-date 2003 net income includes after-tax charges of $1.0 million related
to the termination and retirement of certain management personnel. These charges
offset continued cost containment efforts. Net sales for the first nine months
of 2003 declined 0.6% to $292.5 million compared to $294.1 million reported in
the same period of 2002.
During the third quarter, net sales in the OEM segment increased 5.9% to $17.2
million. For the nine-month period, OEM net sales were $50.7 million, an
increase of 3.7%. Third quarter net sales in the MRO segment decreased 0.2% to
$82.1 million. Nine-month MRO net sales were $241.8 million, a decline of 1.4%.
Robert J. Washlow, Chairman of the Board and CEO, said, "Our efforts to expand
the markets served by our Family of Businesses have helped to stabilize and grow
our revenues. Those efforts, combined with continued cost controls, have
produced improved results at Lawson during a difficult economic period."
Lawson Products is an international seller and distributor of systems, services
and products to the industrial, commercial and institutional maintenance, repair
and replacement marketplace. The Company also manufactures, sells and
distributes production and specialized component parts to the original equipment
marketplace, including the automotive, appliance, aerospace, construction and
transportation industries.
This press release, including Mr. Washlow's comments, may contain historical
information and forward-looking statements and opinions. Statements looking
forward in time are included in this press release pursuant to the "safe harbor"
provision of the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations or beliefs and are
subject to a number of factors and uncertainties that could cause actual results
to differ materially from those described in the forward- looking statements.
The factors that could cause actual results to differ materially from those
described in the forward-looking statements include increased competition,
seasonality, effectiveness of our sales and marketing programs, or an economic
downturn.
LAWSON PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED SUMMARY OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
% %
2003 2002 Change 2003 2002 Change
Net Sales $99,300,936 $98,473,865 0.8% $292,484,605 $294,110,197 -0.6%
Income Before
Taxes (a)(b) 7,488,253 6,628,489 13.0% 20,814,426 21,094,204 -1.3%
Provision for
Income Taxes 3,124,000 2,869,000 8,551,000 8,807,000
Net Income
(a)(b) $4,364,253 $3,759,489 16.1% $12,263,426 $12,287,204 -0.2%
Net Income per
share of Common
Stock:
Basic $0.46 $0.39 17.9% $1.29 $1.28 0.8%
Diluted $0.46 $0.39 17.9% $1.29 $1.28 0.8%
Weighted Average
Shares
Outstanding:
Basic 9,491,561 9,550,908 9,491,541 9,592,807
Diluted 9,510,883 9,576,114 9,509,607 9,618,654
(a) The Company used estimated gross profit rates in 2002 to determine
inventories and cost of goods sold during interim periods.
(b) In the third quarter of 2003, the Company recorded a special pre-tax
charge of $398,000, having an after-tax effect of $240,000, for the
severance of certain management personnel. Year-to-date results
include special pre-tax charges of $1,644,000, having an after-tax
effect of $991,000, for the severance of certain management personnel.
SOURCE Lawson Products, Inc.
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