Lawson Products Inc. (Nasdaq: LAWS), Chicago, reported third quarter sales of $90.3 million, down 4.7% compared to the 2019 third quarter. Net income of $1.7 million was down from $4.8 million in the year-ago period.
During the period, Lawson closed on the largest acquisition in company history with the $35.3 million purchase of Partsmaster, a Greenville, Texas-based MRO solutions provider.
“Our third quarter results confirm we are on the right path recovering from the impact of the pandemic-led economic downturn,” said Michael DeCata, president and CEO. “Net sales for the third quarter grew 25.1% over the prior quarter and our adjusted EBITDA margin improved to 10.4% from 8.7% in the second quarter. Account collections and cash flows remain strong and our balance sheet has strengthened despite the economic uncertainty that still exists.
“During the quarter, we completed the acquisition of Partsmaster, another leading MRO distributor, with sales of $63 million over the last twelve months. Partsmaster is an excellent strategic fit with many similarities to Lawson. Less than 60 days since closing we are already acting on opportunities created by this combination. We are confident that we will produce value exceeding the sum-of-the-parts.”
For the first nine months sales fell 10.2% to $253.5 million. Profit grew 45.6% to $14.9 million.