Lawson Products Announces Second Quarter 2021 Results

Lawson Products, Inc. (NASDAQ: LAWS) (“Lawson” or the "Company"), a leading distributor of products and services to the MRO marketplace, today announced results for the second quarter ended June 30, 2021.

Summary Financial Highlights

 

Three months ended June 30,

 

Six months ended June 30,

($ in millions, except earnings per share data)

 

2021

 

2020

 

Change

 

2021

 

2020

 

Change

Net Sales

 

$106.5

 

$72.1

 

47.7%

 

$210.1

 

$163.2

 

28.8%

Average Daily Net Sales

 

$1.665

 

$1.127

 

47.7%

 

$1.654

 

$1.275

 

29.7%

Number of Business Days

 

64

 

64

 

 

 

127

 

128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported Operating Income

 

$3.4

 

$0.6

 

494.4%

 

$8.2

 

$19.2

 

(57.3)%

Adjusted Operating Income (1)

 

$6.8

 

$4.8

 

43.0%

 

$14.1

 

$12.7

 

11.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (1)

 

$8.8

 

$6.3

 

40.5%

 

$18.0

 

$15.7

 

14.6%

Adjusted EBITDA Margin (1)

 

8.3%

 

8.7%

 

(42 bps)

 

8.6%

 

9.6%

 

(108 bps)

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported Diluted Earnings Per Share

 

$0.31

 

$0.07

 

$0.24

 

$0.70

 

$1.41

 

$(0.71)

Adjusted Diluted Earnings Per Share (2)

 

$0.60

 

$0.37

 

$0.23

 

$1.17

 

$0.93

 

$0.24

(1)

Excludes the impact of stock-based compensation, severance and employee acquisition costs and other non-recurring items. (See reconciliation in Table 1)

(2)

Excludes the impact of stock-based compensation, severance and employee acquisition costs, and other non-recurring items. (See reconciliation in Table 2)

"Lawson continues to generate solid operating results while maintaining a strong financial position. Despite widely reported global supply chain disruptions, sales grew to $107 million in the second quarter, demonstrating both sequential and year-over-year growth. Our financial performance in this quarter benefited from continuing recovery in our customers' end markets combined with the inclusion of our 2020 Partsmaster acquisition and ongoing operational investments in our business to support sales rep productivity and our distribution capabilities," said Michael DeCata, president and chief executive officer.

"I continue to be encouraged by the positive trends in the quarter, including the organic growth of our business which underscores the value of our well-established vendor managed inventory business model. Additionally, during the quarter we successfully transitioned the Partsmaster sales representatives to the Lawson platform and are now fulfilling their orders through the Lawson distribution network.”

"During the quarter, we made the final payment for the acquisition of Partsmaster while ending the quarter with nearly $92 million of available borrowing capacity under our $100 million committed credit facility. Our success has been built around improving sales rep productivity on our strong customer relationships while successfully integrating the Partsmaster acquisition on a reduced cost structure. While continuing to give due respect to the uncertainties and unevenness of the pandemic recovery, we remain in position to continue executing on all three pillars of our strategy to grow through sales rep productivity, expansion of our sales team and make accretive acquisitions on a reduced cost structure,” concluded Mr. DeCata.

Highlights

  • Achieved second quarter sales of $106.5 million compared to $72.1 million in the prior year quarter and $103.6 million in the first quarter. Sales, excluding Partsmaster, have rebounded to within 3% of pre-pandemic levels.
  • Reported operating income was $3.4 million in the second quarter of 2021 compared to $0.6 million in the second quarter of 2020. Adjusted operating income was $6.8 million in the second quarter of 2021 compared to $4.8 million reported in the year ago quarter. (See reconciliation in Table 1)
  • Reported net income of $2.9 million for the quarter, or $0.31 per diluted share compared to $0.07 in the prior year quarter. On an adjusted basis, diluted earnings per share was $0.60 compared to $0.37 in the year ago quarter. (See reconciliation in Table 2)
  • Ended the quarter with cash on hand, net of borrowings of $0.9 million and $91.9 million of availability under the credit facility after final payment in May 2021 of the $33.0 million accrued acquisition liability for Partsmaster.
  • In the quarter, the Board of Directors established a special committee of disinterested, independent directors to evaluate the transaction proposed by Luther King Capital Management (“LKCM) as disclosed in a Schedule 13D amendment filed by LKCM on May 17, 2021. The special committee has engaged legal and financial advisors to assist in its evaluation.

Second Quarter Results

Net sales in the second quarter of 2021 were $106.5 million, an increase of 47.7% compared to $72.1 million in sales in the second quarter 2020 and an increase of 2.9% compared to first quarter with one additional selling day over the first quarter of 2021. Partsmaster contributed $15.3 million in sales in the second quarter of 2021. Lawson sales, excluding Partsmaster, have continued to strengthen and are running at approximately 97% of pre-pandemic levels. On a consolidated basis, average daily sales were $1.665 million in the second quarter of 2021 compared with $1.644 million in the first quarter 2021 and $1.127 million in the prior year quarter. The year-over-year average daily sales increase was primarily driven by the improved business environment as a year ago quarter was in the early pandemic stage, the inclusion of Partsmaster sales and continued operational investments in the business to support sales rep productivity and expansion of our distribution capabilities.

Gross profit rose $16.3 million to $54.6 million in the second quarter of 2021 compared to $38.3 million in the year ago quarter primarily driven by higher sales and was flat with the first quarter of 2021. Gross profit as a percentage of sales was 51.3% for the second quarter of 2021 compared to 53.1% in the second quarter of 2020 and 52.7% last quarter. The organic Lawson MRO segment gross margin as a percent of sales declined to 57.3% in the second quarter of 2021 compared to 58.7% in the second quarter of 2020 quarter before the classification of certain service-related costs in gross profit. The year-over-year decline was primarily a result of increased freight and additional costs from the global supply chain disruption, additional inventory reserves related to the one-time rationalization of inventory related to the Partsmaster acquisition, and changes in product and customer sales mix. To offset these costs, the Company is currently implementing pricing actions.

Selling expenses were $24.2 million in the second quarter of 2021 compared to $16.3 million in the prior year quarter and $23.8 million in Q1 2021. The growth was primarily driven by higher compensation on increased sales, along with the inclusion of $5.3 million of Partsmaster selling expenses in the quarter. As a percentage of sales, selling expenses were 22.7%, essentially even versus the second quarter last year and down slightly from the 23.0% in the first quarter of 2021 on higher sales.

General and administrative expenses were $27.0 million in the second quarter of 2021 compared to $21.4 million in the prior year quarter and $25.9 million in the first quarter 2021. The increase compared to the prior year was driven by the inclusion of Partsmaster operating expenses of $3.3 million, $1.4 million of costs related to potential acquisitions and partly restored operating expenses on normalized sales volumes. These costs were offset by a decrease in stock-based compensation expense of $1.6 million compared to the second quarter of 2020.

Reported operating income in the second quarter of 2021 was $3.4 million compared to reported operating income of $0.6 million in the second quarter of 2020. Adjusted operating income was $6.8 million for the quarter compared to $4.8 million in the year ago quarter. (See reconciliation in Table 1) For the second quarter of 2021, adjusted EBITDA was 8.3% of sales or $8.8 million compared to $6.3 million for the prior year quarter and $9.1 million in the first quarter of 2021. (See reconciliation in Table 1)

Reported net income was $2.9 million, or $0.31 per diluted share compared to net income of $0.6 million, or $0.07 per diluted share for the year ago quarter and $3.6 million, or $0.39 per diluted share reported in the first quarter of 2021. Adjusted net income was $5.6 million or $0.60 per diluted share compared to $3.5 million or $0.37 per diluted share a year ago and $5.4 million, or $0.58 per diluted share last quarter. (See reconciliation in Table 2) On a year-to-date basis, adjusted net income has improved to $11.0 million or $1.17 per diluted share compared to $8.5 million or $0.93 per diluted share a year ago. (See reconciliation in Table 2)

At June 30, 2021, the Company ended the quarter with cash on hand, net of borrowings, of $0.9 million with $91.9 million, net of drawn letters of credit, of availability under its $100.0 million committed credit facility. The final payment for the Partsmaster acquisition was made in May 2021.

Conference Call

Lawson Products, Inc. will conduct a conference call with investors to discuss second quarter 2021 results at 9:00 a.m. Eastern Time on July 29, 2021. The conference call is available by direct dial at 1-888-506-0062 in the U.S. or 1-973-528-0011 from outside of the U.S. A replay of the conference call will be available approximately two hours after completion of the call through August 31, 2021. Callers can access the replay by dialing 1-877-481-4010 in the U.S. or 1-919-882-2331 outside the U.S. The PIN access number for the replay is 41933#. A streaming audio of the call and an archived replay will also be available on the investor relations page of Lawson's website through August 31, 2021.

About Lawson Products, Inc.

Founded in 1952, Lawson Products, Inc., headquartered in Chicago, IL, sells and distributes specialty products to the industrial, commercial, institutional and government maintenance, repair and operations market (MRO). The Company is dedicated to helping customers in the U.S. and Canada lower their total cost of operation by increasing productivity and efficiency. The combination of Lawson and Partsmaster's Vendor Managed Inventory process and the Company’s problem-solving professionals ensures customers always have the right parts to handle the job. Through The Bolt Supply House, customers in Western Canada have access to products at several branch locations. Under its Kent Automotive brand, the Company provides collision and mechanical repair products to the automotive aftermarket.

Lawson Products ships from several strategically located distribution centers to customers in all 50 states, Puerto Rico, Canada, Mexico, and the Caribbean.

For additional information, please visit https://www.lawsonproducts.com/ or https://www.kent-automotive.com/.

This Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. The terms "may," "should," "could," "anticipate," "believe," "continues," "estimate," "expect," "intend," "objective," "plan," "potential," "project" and similar expressions are intended to identify forward-looking statements. 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 or contribute to such differences or that might otherwise impact the business and include the risk factors set forth in Item 1A of the December 31, 2020, Form 10-K filed on February 26, 2021. The Company undertakes no obligation to update any such factor or to publicly announce the results of any revisions to any forward-looking statements whether as a result of new information, future events or otherwise.

-TABLES FOLLOW-

Lawson Products, Inc.

Condensed Consolidated Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Net sales

 

106,540

 

 

 

72,146

 

 

 

210,096

 

 

 

163,181

 

Cost of goods sold

 

51,920

 

 

 

33,833

 

 

 

100,916

 

 

 

75,947

 

Gross profit

 

54,620

 

 

 

38,313

 

 

 

109,180

 

 

 

87,234

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Selling expenses

 

24,235

 

 

 

16,306

 

 

 

48,037

 

 

 

36,290

 

General and administrative expenses

 

27,003

 

 

 

21,438

 

 

 

52,951

 

 

 

31,737

 

Operating expenses

 

51,238

 

 

 

37,744

 

 

 

100,988

 

 

 

68,027

 

 

 

 

 

 

 

 

 

Operating income

 

3,382

 

 

 

569

 

 

 

8,192

 

 

 

19,207

 

 

 

 

 

 

 

 

 

Interest expense

 

(268

)

 

 

(72

)

 

 

(591

)

 

 

(187

)

Other income (expense), net

 

639

 

 

 

511

 

 

 

1,011

 

 

 

(600

)

 

 

 

 

 

 

 

 

Income before income taxes

 

3,753

 

 

 

1,008

 

 

 

8,612

 

 

 

18,420

 

Income tax expense

 

818

 

 

 

389

 

 

 

2,081

 

 

 

5,268

 

 

 

 

 

 

 

 

 

Net income

$

2,935

 

 

$

619

 

 

$

6,531

 

 

$

13,152

 

 

 

 

 

 

 

 

 

Basic income per share of common stock

$

0.32

 

 

$

0.07

 

 

$

0.72

 

 

$

1.46

 

 

 

 

 

 

 

 

 

Diluted income per share of common stock

$

0.31

 

 

$

0.07

 

 

$

0.70

 

 

$

1.41

 

Lawson Products, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands, except share data)

 

 

June 30,

 

December 31,

 

2021

 

2020

ASSETS

(Unaudited)

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

5,855

 

 

$

28,393

 

Restricted cash

 

1,003

 

 

 

998

 

Accounts receivable, less allowance for doubtful accounts of $680 and $654, respectively

 

46,228

 

 

 

44,515

 

Inventories, net

 

63,029

 

 

 

61,867

 

Miscellaneous receivables and prepaid expenses

 

7,545

 

 

 

7,289

 

Total current assets

 

123,660

 

 

 

143,062

 

 

 

 

 

Property, plant and equipment, net

 

17,439

 

 

 

15,800

 

Deferred income taxes

 

19,456

 

 

 

18,482

 

Goodwill

 

35,674

 

 

 

35,176

 

Cash value of life insurance

 

16,895

 

 

 

16,185

 

Intangible assets, net

 

17,592

 

 

 

18,503

 

Right of use assets

 

13,483

 

 

 

8,764

 

Other assets

 

329

 

 

 

332

 

Total assets

$

244,528

 

 

$

256,304

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

 

23,787

 

 

 

22,262

 

Accrued acquisition liability

 

 

 

 

32,673

 

Lease obligation

 

4,417

 

 

 

4,568

 

Accrued expenses and other liabilities

 

38,024

 

 

 

38,492

 

Total current liabilities

 

66,228

 

 

 

97,995

 

 

 

 

 

Revolving line of credit

 

5,000

 

 

 

 

Security bonus plan

 

10,958

 

 

 

11,262

 

Lease obligation

 

10,611

 

 

 

5,738

 

Deferred compensation

 

11,493

 

 

 

10,461

 

Deferred tax liability

 

3,560

 

 

 

2,841

 

Other liabilities

 

5,780

 

 

 

5,585

 

Total liabilities

 

113,630

 

 

 

133,882

 

 

 

 

 

Stockholders’ equity:

 

 

 

Preferred stock, $1 par value:

 

 

 

Authorized - 500,000 shares, Issued and outstanding — None

 

 

 

 

 

Common stock, $1 par value:

 

 

 

Authorized - 35,000,000 shares
Issued - 9,304,366 and 9,287,625 shares, respectively
Outstanding - 9,077,512 and 9,061,039 shares, respectively

 

9,304

 

 

 

9,288

 

Capital in excess of par value

 

20,798

 

 

 

19,841

 

Retained earnings

 

108,140

 

 

 

101,609

 

Treasury stock – 226,854 and 226,586 shares, respectively

 

(9,028

)

 

 

(9,015

)

Accumulated other comprehensive income (loss)

 

1,684

 

 

 

699

 

Total stockholders’ equity

 

130,898

 

 

 

122,422

 

Total liabilities and stockholders’ equity

$

244,528

 

 

$

256,304

 

LAWSON PRODUCTS, INC.

SEC REGULATION G GAAP RECONCILIATIONS

 

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, the Company's management believes that certain non-GAAP financial measures may provide users of this financial information with additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain non-operational items that impact the overall comparability. See Tables below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and six months ended June 30, 2021 and 2020, and three months ended March 31, 2021. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.

Table 1 - Reconciliation of GAAP Operating Income

to Adjusted Non-GAAP Operating Income and Adjusted EBITDA

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June 30,
2021

 

March 31,
2021

 

June 30,
2020

 

June 30,
2021

 

June 30,
2020

 

 

 

 

 

 

 

 

 

 

Operating income as reported per GAAP

$

3,382

 

$

4,810

 

$

569

 

$

8,192

 

$

19,207

 

Stock-based compensation (1)

 

1,574

 

 

1,000

 

 

3,187

 

 

2,574

 

 

(7,513

)

Inventory reserves (2)

 

500

 

 

825

 

 

 

 

1,325

 

 

 

Severance and employee acquisition costs

 

29

 

 

576

 

 

1,025

 

 

605

 

 

1,032

 

Costs related to potential acquisitions (3)

 

1,354

 

 

 

 

 

 

1,354

 

 

 

Adjusted non-GAAP operating Income

 

6,839

 

 

7,211

 

 

4,781

 

 

14,050

 

 

12,726

 

Depreciation and amortization

 

2,004

 

 

1,935

 

 

1,511

 

 

3,939

 

 

3,020

 

Non-GAAP adjusted EBITDA

$

8,843

 

$

9,146

 

$

6,292

 

$

17,989

 

$

15,746

 

(1)

A portion of stock-based compensation expense varies with the Company's stock price

(2)

Expense for Partsmaster inventory rationalization plan and write-down of personal protective equipment product to net realizable value

(3)

Including costs related to the evaluation of the LKCM proposal disclosed in a Schedule 13D amendment filed May 17, 2021

Table 2 - Reconciliation of GAAP Net Income and Diluted EPS to

Non-GAAP Adjusted Net Income and Adjusted Diluted EPS

(Dollars in Thousands, Except Per Share Amounts)

(Unaudited)

 

 

Three Months Ended

 

June 30, 2021

 

March 31, 2021

 

June 30, 2020

 

Amount

 

Diluted
EPS (5)

 

Amount

 

Diluted
EPS (5)

 

Amount

 

Diluted
EPS (5)

Net income, as reported per GAAP

$

2,935

 

 

$

0.31

 

 

$

3,596

 

 

$

0.39

 

 

$

619

 

 

$

0.07

 

Pretax adjustments:

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation (1)

 

1,574

 

 

 

0.17

 

 

 

1,000

 

 

 

0.11

 

 

 

3,187

 

 

 

0.34

 

Inventory reserves (2)

 

500

 

 

 

0.05

 

 

 

825

 

 

 

0.09

 

 

 

 

 

 

 

Severance expense and employee acquisition costs

 

29

 

 

 

 

 

 

576

 

 

 

0.06

 

 

 

1,025

 

 

 

0.11

 

Costs related to potential acquisitions (3)

 

1,354

 

 

 

0.15

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjustments

 

3,457

 

 

 

0.37

 

 

 

2,401

 

 

 

0.26

 

 

 

4,212

 

 

 

0.45

 

Tax effect (4)

 

(754

)

 

 

(0.08

)

 

 

(624

)

 

 

(0.07

)

 

 

(1,365

)

 

 

(0.15

)

Total adjustments, net of tax

 

2,703

 

 

 

0.29

 

 

 

1,777

 

 

 

0.19

 

 

 

2,847

 

 

 

0.30

 

Non-GAAP adjusted net income

$

5,638

 

 

$

0.60

 

 

$

5,373

 

 

$

0.58

 

 

$

3,466

 

 

$

0.37

 

(1)

A portion of stock-based compensation expense varies with the Company's stock price

(2)

Expense for Partsmaster inventory rationalization plan and write-down of personal protective equipment product to net realizable value

(3)

Including costs related to the evaluation of the LKCM proposal disclosed in a Schedule 13D amendment filed May 17, 2021

(4)

Tax effected at quarterly effective tax rate of 21.8% for the three months ended June 30, 2021, 26.0% for the three months ended March 31, 2021 and 32.4% for the three months ended June 30, 2020

(5)

Diluted EPS calculated on 9.349 million for the second quarter of 2021, 9.328 million for the first quarter 2021 and 9.298 million diluted shares for second quarter 2020

 

Six Months Ended

 

June 30, 2021

 

June 30, 2020

 

Amount

 

Diluted
EPS (5)

 

Amount

 

Diluted
EPS (5)

Net income, as reported per GAAP

$

6,531

 

 

$

0.70

 

 

$

13,152

 

 

$

1.41

 

Pretax adjustments:

 

 

 

 

 

 

 

Stock-based compensation (1)

 

2,574

 

 

 

0.28

 

 

 

(7,513

)

 

 

(0.81

)

Inventory reserves (2)

 

1,325

 

 

 

0.14

 

 

 

 

 

 

 

Severance expense and employee acquisition costs

 

605

 

 

 

0.06

 

 

 

1,032

 

 

 

0.12

 

Costs related to potential acquisitions (3)

 

1,354

 

 

 

0.15

 

 

 

 

 

 

 

Pretax adjustments

 

5,858

 

 

 

0.63

 

 

 

(6,481

)

 

 

(0.69

)

Tax effect (4)

 

(1,418

)

 

 

(0.16

)

 

 

1,854

 

 

 

0.21

 

Total adjustments, net of tax

 

4,440

 

 

 

0.47

 

 

 

(4,627

)

 

 

(0.48

)

Non-GAAP adjusted net income

$

10,971

 

 

$

1.17

 

 

$

8,525

 

 

$

0.93

 

(1)

A portion of stock-based compensation expense varies with the Company's stock price

(2)

Expense for Partsmaster inventory rationalization plan and write-down of personal protective equipment product to net realizable value

(3)

Including costs related to the evaluation of the LKCM proposal disclosed in a Schedule 13D amendment filed May 17, 2021

(4)

Tax effected at the effective tax rate of 24.2% for the six months ended June 30, 2021 and 28.6% for the six months ended June 30, 2020

(5)

Diluted EPS calculated on 9.342 million diluted shares for the six months ended June 30, 2021 and 9.327 million diluted shares for six months ended June 30, 2020

Table 3 - Historic Lawson Segment (Including Partsmaster) Sales and Sales Rep Productivity

(Dollars in Thousands)

(Unaudited)

 

 

Three Months Ended

 

Jun. 30,
2021

 

Mar. 31,
2021

 

Dec. 31,
2020

 

Sep. 30,
2020

 

Jun. 30,
2020

 

 

 

 

 

 

 

 

 

 

Number of business days

 

64

 

 

 

63

 

 

 

61

 

 

 

64

 

 

 

64

 

 

 

 

 

 

 

 

 

 

 

Average daily net sales (1)

$

1,471

 

 

$

1,473

 

 

$

1,439

 

 

$

1,240

 

 

$

979

 

Year over year increase (decrease)

 

50.3

%

 

 

16.4

%

 

 

12.5

%

 

 

(4.2

)%

 

 

(25.6

)%

Sequential quarter increase (decrease)

 

(0.1

)%

 

 

2.4

%

 

 

16.0

%

 

 

26.7

%

 

 

(22.6

)%

 

 

 

 

 

 

 

 

 

 

Average active sales rep. count (1), (2)

 

1,081

 

 

 

1,083

 

 

 

1,099

 

 

 

993

 

 

 

957

 

Period-end active sales rep count

 

1,086

 

 

 

1,079

 

 

 

1,090

 

 

 

1,120

 

 

 

938

 

 

 

 

 

 

 

 

 

 

 

Sales per rep. per day

$

1.361

 

 

$

1.360

 

 

$

1.309

 

 

$

1.249

 

 

$

1.023

 

Year over year increase (decrease)

 

33.0

%

 

 

7.3

%

 

 

2.6

%

 

 

(4.6

)%

 

 

(23.8

)%

Sequential quarter increase (decrease)

 

0.1

%

 

 

3.9

%

 

 

4.8

%

 

 

22.1

%

 

 

(19.3

)%

(1)

Quarters ended June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020 include Partsmaster revenue of $15.3 million, $15.7 million, $17.2 million and $5.4 million, respectively, and weighted average reps counts of 186, 186,196 and 67, respectively

(2)

Average active sales representative count represents the average of the month-end sales representative counts

Table 4 - Consolidated Quarterly Results

(Dollars in Thousands)

(Unaudited)

 

 

Three Months Ended

 

Jun. 30,
2021

 

Mar. 31,
2021

 

Dec. 31,
2020

 

Sep. 30,
2020

 

Jun. 30,
2020

 

 

 

 

 

 

 

 

 

 

Average daily net sales

$

1,665

 

 

$

1,644

 

 

$

1,609

 

 

$

1,411

 

 

$

1,127

 

Year over year increase (decrease)

 

47.7

%

 

 

15.6

%

 

 

10.8

%

 

 

(4.7

)%

 

 

(25.0

)%

Sequential quarter increase (decrease)

 

1.3

%

 

 

2.2

%

 

 

14.0

%

 

 

25.2

%

 

 

(20.7

)%

 

 

 

 

 

 

 

 

 

 

Net Sales

$

106,540

 

 

$

103,556

 

 

$

98,133

 

 

$

90,277

 

 

$

72,146

 

Gross profit

 

54,620

 

 

 

54,560

 

 

 

52,079

 

 

 

47,225

 

 

 

38,313

 

 

 

 

 

 

 

 

 

 

 

Gross profit percentage

 

51.3

%

 

 

52.7

%

 

 

53.1

%

 

 

52.3

%

 

 

53.1

%

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative expenses

$

51,238

 

 

$

49,750

 

 

$

52,737

 

 

$

45,224

 

 

$

37,744

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

3,382

 

 

$

4,810

 

 

$

(658

)

 

$

2,001

 

 

$

569