View:
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) : April 21, 2004
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
incorporation) No.)
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 April 21, 2004.
Item 12. Results of Operations and Financial Condition.
On April 21, 2004, Lawson Products, Inc. issued a press release
announcing its operating results for the quarter ended March 31, 2004. 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: April 21, 2004 Senior Vice President, Accounting
(principal accounting officer)
EXHIBIT INDEX
NUMBER DESCRIPTION
- ------ -----------
99.1 Press release issued by Lawson Products, Inc. on
April 21, 2004.
Exhibit 99.1
PRESS RELEASE Source: Lawson Products, Inc.
Lawson Products, Inc. Reports Increase in First Quarter,
2004 Sales and Net Income
DES PLAINES, Ill., April 21 /PRNewswire-FirstCall/ -- Lawson Products, Inc.
(Nasdaq: LAWS) reported net income of $6.5 million for the first quarter of
2004, an increase of 73.7% over the first quarter of 2003. Diluted net income
per share of $.69 earned in the first quarter of 2004 was 72.5% higher than the
$.40 earned in the same period last year.
Earnings increased due to increased sales, lower cost of goods sold,
continuing efforts to streamline the selling, general and administrative
functions, and a lower effective tax rate.
Net sales of $100.7 million for the first quarter of 2004 increased 4.8%
compared to $96.1 million in the first quarter of the prior year and reflected
growth in both the maintenance, repair and replacement (MRO) and original
equipment marketplace (OEM) segments, as well as a favorable impact of foreign
exchange on Canadian and UK sales. The MRO segment net sales grew at a 2.5% pace
to $81.4 million in the first quarter of 2004, while the OEM segment net sales
grew to $19.2 million, a 15.4% gain over the first quarter in the prior year.
Sales growth reflected increased activity with existing customers and attracting
new customers in new customer segments.
Consolidated operating margins of 10% in the first quarter of 2004 improved
from 6.5% in the first quarter of 2003, as a result of the factors discussed
above.
Robert J. Washlow, Chairman of the Board and CEO, commented, "We are pleased
with our results and feel that some of the initiatives undertaken have started
to take root and yield results."
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 statements, may contain certain
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 that involve risks and uncertainties. These
statements are not guarantees of future performance and involve risks,
uncertainties and assumptions that are difficult to predict. These statements
are based on management's current expectations, intentions or beliefs and are
subject to a number of factors, assumptions and uncertainties that could cause
actual results to differ materially from those described in the forward-looking
statements. Factors that could cause or contribute to such differences include,
but are not limited to, those related to general economic conditions and market
conditions in the original equipment manufacturers and maintenance, repair and
replacement distribution industries in North America and to a lesser extent, the
United Kingdom, the Company's ability to obtain new customers and manage growth,
material or labor cost increases, competition in the Company's business,
operating margin risk due to competitive pricing and operating efficiencies,
seasonality, effectiveness of our sales and marketing programs, and the length
of economic downturns in the Company's markets. The Company undertakes no
obligation to update any such factor or to publicly announce the results of any
revisions to any forward-looking statements contained herein whether as a result
of new information, future events or otherwise.
LAWSON PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED SUMMARY OF OPERATIONS
(UNAUDITED)
Three Months Ended
March 31,
2004 2003 % Change
Net Sales $100,657,758 $ 96,075,110 4.8%
Income
Before Taxes 10,527,262 6,621,171 59.0%
Provision
for Income Taxes 4,001,000 2,863,000
Net Income 6,526,262 3,758,171 73.7%
Net Income per share of Common Stock:
Basic $ 0.69 $ 0.40 72.5%
Diluted $ 0.69 $ 0.40 72.5%
Weighted Average Shares Outstanding:
Basic 9,486,789 9,492,236
Diluted 9,515,152 9,511,473
SOURCE Lawson Products, Inc.
04/21/2004
/CONTACT: Joseph Pawlick, Senior Vice President, Accounting, of Lawson
Products, Inc., +1-847-827-9666/
/First Call Analyst: /
/FCMN Contact: /
(LAWS)