Quarterly Report under Section 13 OR 15(d) of the Securities Exchange Act of 1934 |
Transition Report under Section 13 OR 15(d) of the Securities Exchange Act of 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Large accelerated filer | ¨ | ☒ | |||||||||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | |||||||||
Emerging growth company |
Page # | ||||||||
June 30, | December 31, | ||||||||||
2020 | 2019 | ||||||||||
ASSETS | (Unaudited) | ||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable, less allowance for doubtful accounts of $961 and $593, respectively | |||||||||||
Inventories, net | |||||||||||
Miscellaneous receivables and prepaid expenses | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Deferred income taxes | |||||||||||
Goodwill | |||||||||||
Cash value of life insurance | |||||||||||
Intangible assets, net | |||||||||||
Right of use assets | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Lease obligation | |||||||||||
Accrued expenses and other liabilities | |||||||||||
Total current liabilities | |||||||||||
Revolving line of credit | |||||||||||
Security bonus plan | |||||||||||
Lease obligation | |||||||||||
Deferred compensation | |||||||||||
Deferred tax liability | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $ | |||||||||||
Authorized - | |||||||||||
Common stock, $ | |||||||||||
Authorized - Issued - 9,201,315 and 9,190,171 shares, respectively Outstanding -9,007,411 and 9,043,771 shares, respectively | |||||||||||
Capital in excess of par value | |||||||||||
Retained earnings | |||||||||||
Treasury stock – 193,904 and 146,400 shares, respectively | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Product revenue | $ | $ | $ | $ | |||||||||||||||||||
Service revenue | |||||||||||||||||||||||
Total revenue | |||||||||||||||||||||||
Product cost of goods sold | |||||||||||||||||||||||
Service costs | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling expenses | |||||||||||||||||||||||
General and administrative expenses | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Other income (expense), net | ( | ||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Basic income per share of common stock | $ | $ | $ | $ | |||||||||||||||||||
Diluted income per share of common stock | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic weighted average shares outstanding | |||||||||||||||||||||||
Effect of dilutive securities outstanding | |||||||||||||||||||||||
Diluted weighted average shares outstanding | |||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income, net of tax | |||||||||||||||||||||||
Adjustment for foreign currency translation | ( | ||||||||||||||||||||||
Net comprehensive income | $ | $ | $ | $ |
Common Stock | Capital in Excess of Par Value | Accumulated Other Comprehensive Income (Loss) | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||
Outstanding Shares | $1 Par Value | Retained Earnings | Treasury Stock | ||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | 9,043,771 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Treasury shares repurchased | ( | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Adjustment for foreign currency translation | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Adjustment for foreign currency translation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Shares issued | — | — | — | ||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | $ | ( | $ | ( | $ |
Common Stock | Capital in Excess of Par Value | Accumulated Other Comprehensive Income (Loss) | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||
Outstanding Shares | $1 Par Value | Retained Earnings | Treasury Stock | ||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2019 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Change in accounting principle (1) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Adjustment for foreign currency translation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Shares issued | ( | — | — | — | |||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Adjustment for foreign currency translation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Shares issued | ( | — | — | — | |||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | ( | $ | ( | $ |
Six Months Ended June 30, | |||||||||||
2020 | 2019 | ||||||||||
Operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation | ( | ||||||||||
Deferred income taxes | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ||||||||||
Inventories | ( | ||||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Accounts payable and other liabilities | ( | ( | |||||||||
Other | |||||||||||
Net cash provided by (used in) operating activities | $ | $ | ( | ||||||||
Investing activities: | |||||||||||
Purchases of property, plant and equipment | $ | ( | $ | ( | |||||||
Net cash used in investing activities | $ | ( | $ | ( | |||||||
Financing activities: | |||||||||||
Net payments on revolving lines of credit | $ | ( | $ | ( | |||||||
Repurchase treasury shares | ( | ||||||||||
Payment of financing lease principal | ( | ( | |||||||||
Proceeds from stock option exercises | |||||||||||
Net cash used in financing activities | $ | ( | $ | ( | |||||||
Effect of exchange rate changes on cash and cash equivalents | $ | ( | $ | ||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | |||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Cash, cash equivalents and restricted cash | $ | $ | |||||||||
Supplemental disclosure of cash flow information | |||||||||||
Net cash paid for income taxes | |||||||||||
Net cash paid for interest |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Canada | |||||||||||||||||||||||
Consolidated total | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Fastening Systems | % | % | % | % | |||||||||||||||||||
Fluid Power | % | % | % | % | |||||||||||||||||||
Specialty Chemicals | % | % | % | % | |||||||||||||||||||
Cutting Tools and Abrasives | % | % | % | % | |||||||||||||||||||
Electrical | % | % | % | % | |||||||||||||||||||
Safety | % | % | % | % | |||||||||||||||||||
Aftermarket Automotive Supplies | % | % | % | % | |||||||||||||||||||
Welding and Metal Repair | % | % | % | % | |||||||||||||||||||
Other | % | % | % | % | |||||||||||||||||||
Consolidated Total | % | % | % | % |
(Dollars in thousands) | |||||||||||
June 30, 2020 | December 31, 2019 | ||||||||||
Inventories, gross | $ | $ | |||||||||
Reserve for obsolete and excess inventory | ( | ( | |||||||||
Inventories, net | $ | $ |
(Dollars in thousands) | |||||||||||
Six Months Ended June 30, | |||||||||||
2020 | 2019 | ||||||||||
Beginning balance | $ | $ | |||||||||
Adjustment to original acquisition allocation | |||||||||||
Impact of foreign exchange | ( | ||||||||||
Ending balance | $ | $ |
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | ||||||||||||||||||||||||||||||
Trade names | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Customer relationships | ( | ( | |||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | $ | ( | $ |
Lease Type | Classification | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | |||||||||||||||||
Consolidated Operating Lease Expense (1) | Operating expenses | $ | $ | |||||||||||||||||
Consolidated Financing Lease Amortization | Operating expenses | $ | ||||||||||||||||||
Consolidated Financing Lease Interest | Interest expense | |||||||||||||||||||
Consolidated Financing Lease Expense | ||||||||||||||||||||
Sublease Income (2) | Operating expenses | ( | ||||||||||||||||||
Net Lease Cost | $ | $ |
Lease Type | Classification | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | |||||||||||||||||
Consolidated Operating Lease Expense (1) | Operating expenses | $ | $ | |||||||||||||||||
Consolidated Financing Lease Amortization | Operating expenses | |||||||||||||||||||
Consolidated Financing Lease Interest | Interest expense | |||||||||||||||||||
Consolidated Financing Lease Expense | ||||||||||||||||||||
Sublease Income (2) | Operating expenses | ( | ||||||||||||||||||
Net Lease Cost | $ | $ |
Lease Type | June 30, 2020 | December 31, 2019 | ||||||||||||
Total ROU operating lease assets (1) | $ | $ | ||||||||||||
Total ROU financing lease assets (2) | ||||||||||||||
Total lease assets | $ | $ | ||||||||||||
Total current operating lease obligation | $ | $ | ||||||||||||
Total current financing lease obligation | ||||||||||||||
Total current lease obligations | $ | $ | ||||||||||||
Total long term operating lease obligation | $ | $ | ||||||||||||
Total long term financing lease obligation | ||||||||||||||
Total long term lease obligation | $ | $ |
Maturity Date of Lease Liabilities | Operating Leases | Financing Leases | Total | |||||||||||||||||
Year one | $ | $ | $ | |||||||||||||||||
Year two | ||||||||||||||||||||
Year three | ||||||||||||||||||||
Year four | ||||||||||||||||||||
Year five | ||||||||||||||||||||
Subsequent years | ||||||||||||||||||||
Total lease payments | ||||||||||||||||||||
Less: Interest | ||||||||||||||||||||
Present value of lease liabilities | $ | $ | $ |
Lease Type | Weighted Average Term in Years | Weighted Average Interest Rate | ||||||||||||
Operating Leases | ||||||||||||||
Financing Leases |
Cash Flow Source | Classification | Amount | ||||||||||||
Operating cash flows from operating leases | Operating activities | $ | ||||||||||||
Operating cash flows from financing leases | Operating activities | |||||||||||||
Financing cash flows from financing leases | Financing activities |
Quarterly Financial Covenants | Requirement | Actual | ||||||||||||
EBITDA to fixed charges ratio | 1.15 : 1.00 | 6.98 : 1.00 | ||||||||||||
Total net leverage ratio | 3.25 : 1.00 | 0.00 : 1.00 |
(Dollars in thousands) | |||||||||||
Six Months Ended June 30, | |||||||||||
2020 | 2019 | ||||||||||
Balance at beginning of period | $ | $ | |||||||||
Charged to earnings | |||||||||||
Payments | ( | ( | |||||||||
Balance at end of period | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Lawson product revenue | $ | $ | $ | $ | |||||||||||||||||||
Lawson service revenue | |||||||||||||||||||||||
Total Lawson revenue | |||||||||||||||||||||||
Bolt Supply | |||||||||||||||||||||||
Consolidated total | $ | $ | $ | $ | |||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Lawson product gross profit | $ | $ | $ | $ | |||||||||||||||||||
Lawson service gross profit | |||||||||||||||||||||||
Total Lawson gross profit | |||||||||||||||||||||||
Bolt Supply | |||||||||||||||||||||||
Consolidated total | $ | $ | $ | $ | |||||||||||||||||||
Operating income | |||||||||||||||||||||||
Lawson | $ | ( | $ | $ | $ | ||||||||||||||||||
Bolt Supply | |||||||||||||||||||||||
Consolidated total | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Other income (expense), net | ( | ||||||||||||||||||||||
Income before income taxes | $ | $ | $ | $ |
Reconciliation of GAAP Operating Income to Adjusted Non-GAAP Operating Income (Unaudited) | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(Dollars in Thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Operating income as reported by GAAP | $ | 569 | $ | $ | $ | |||||||||||||||||||||
Stock based compensation (1) | 3,187 | 4,839 | (7,513) | 5,247 | ||||||||||||||||||||||
Severance expense | 1,025 | 1,485 | $ | 1,032 | 1,512 | |||||||||||||||||||||
Adjusted non-GAAP operating income | $ | 4,781 | $ | 7,947 | $ | 12,726 | $ | 13,926 |
2020 | 2019 | ||||||||||||||||||||||
(Dollars in thousands) | Amount | % of Net Sales | Amount | % of Net Sales | |||||||||||||||||||
Revenue | $ | 72,146 | 100.0 | % | $ | 96,097 | 100.0 | % | |||||||||||||||
Cost of goods sold | 33,833 | 46.9 | % | 45,054 | 46.9 | % | |||||||||||||||||
Gross profit | 38,313 | 53.1 | % | 51,043 | 53.1 | % | |||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling expenses | 16,306 | 22.6 | % | 21,867 | 22.8 | % | |||||||||||||||||
General and administrative expenses | 21,438 | 29.7 | % | 27,553 | 28.6 | % | |||||||||||||||||
Total operating expenses | 37,744 | 52.3 | % | 49,420 | 51.4 | % | |||||||||||||||||
Operating income | 569 | 0.8 | % | 1,623 | 1.7 | % | |||||||||||||||||
Interest expense | (72) | (0.1) | % | (146) | (0.2) | % | |||||||||||||||||
Other income, net | 511 | 0.7 | % | 339 | 0.4 | % | |||||||||||||||||
Income before income taxes | 1,008 | 1.4 | % | 1,816 | 1.9 | % | |||||||||||||||||
Income tax expense | 389 | 0.5 | % | 509 | 0.5 | % | |||||||||||||||||
Net income | $ | 619 | 0.9 | % | $ | 1,307 | 1.4 | % |
Three Months Ended June 30, | Decrease | ||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | Amount | % | |||||||||||||||||||
Revenue | |||||||||||||||||||||||
Lawson | $ | 63,214 | $ | 84,967 | $ | (21,753) | (25.6)% | ||||||||||||||||
Bolt Supply | 8,932 | 11,130 | (2,198) | (19.7)% | |||||||||||||||||||
Consolidated | $ | 72,146 | $ | 96,097 | $ | (23,951) | (24.9)% | ||||||||||||||||
Gross profit | |||||||||||||||||||||||
Lawson | $ | 34,873 | $ | 46,757 | $ | (11,884) | (25.4)% | ||||||||||||||||
Bolt Supply | 3,440 | 4,286 | (846) | (19.7)% | |||||||||||||||||||
Consolidated | $ | 38,313 | $ | 51,043 | $ | (12,730) | (24.9)% | ||||||||||||||||
Gross profit margin | |||||||||||||||||||||||
Lawson | 55.2 | % | 55.0 | % | |||||||||||||||||||
Bolt Supply | 38.5 | % | 38.5 | % | |||||||||||||||||||
Consolidated | 53.1 | % | 53.1 | % |
Three Months Ended June 30, | Decrease | ||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | Amount | % | |||||||||||||||||||
Selling expenses | |||||||||||||||||||||||
Lawson | $ | 15,652 | $ | 20,979 | $ | (5,327) | (25.4)% | ||||||||||||||||
Bolt Supply | 654 | 888 | (234) | (26.4)% | |||||||||||||||||||
Consolidated | $ | 16,306 | $ | 21,867 | $ | (5,561) | (25.4)% | ||||||||||||||||
General and administrative expenses | |||||||||||||||||||||||
Lawson | $ | 19,423 | $ | 25,124 | $ | (5,701) | (22.7)% | ||||||||||||||||
Bolt Supply | 2,015 | 2,429 | (414) | (17.0)% | |||||||||||||||||||
Consolidated | $ | 21,438 | $ | 27,553 | $ | (6,115) | (22.2)% |
2020 | 2019 | ||||||||||||||||||||||
(Dollars in thousands) | Amount | % of Net Sales | Amount | % of Net Sales | |||||||||||||||||||
Revenue | $ | 163,181 | 100.0 | % | $ | 187,440 | 100.0 | % | |||||||||||||||
Cost of goods sold | 75,947 | 46.5 | % | 87,474 | 46.7 | % | |||||||||||||||||
Gross profit | 87,234 | 53.5 | % | 99,966 | 53.3 | % | |||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling expenses | 36,290 | 22.2 | % | 43,609 | 23.3 | % | |||||||||||||||||
General and administrative expenses | 31,737 | 19.5 | % | 49,190 | 26.2 | % | |||||||||||||||||
Total operating expenses | 68,027 | 41.7 | % | 92,799 | 49.5 | % | |||||||||||||||||
Operating income | 19,207 | 11.8 | % | 7,167 | 3.8 | % | |||||||||||||||||
Interest expense | (187) | (0.1) | % | (343) | (0.2) | % | |||||||||||||||||
Other income (expense), net | (600) | (0.4) | % | 811 | 0.5 | % | |||||||||||||||||
Income before income taxes | 18,420 | 11.3 | % | 7,635 | 4.1 | % | |||||||||||||||||
Income tax expense | 5,268 | 3.2 | % | 2,182 | 1.2 | % | |||||||||||||||||
Net income | $ | 13,152 | 8.1 | % | $ | 5,453 | 2.9 | % |
Six Months Ended June 30, | Decrease | ||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | Amount | % | |||||||||||||||||||
Revenue | |||||||||||||||||||||||
Lawson | $ | 144,705 | $ | 167,434 | $ | (22,729) | (13.6)% | ||||||||||||||||
Bolt Supply | 18,476 | 20,006 | (1,530) | (7.6)% | |||||||||||||||||||
Consolidated | $ | 163,181 | $ | 187,440 | $ | (24,259) | (12.9)% | ||||||||||||||||
Gross profit | |||||||||||||||||||||||
Lawson | $ | 79,993 | $ | 92,376 | $ | (12,383) | (13.4)% | ||||||||||||||||
Bolt Supply | 7,241 | 7,590 | (349) | (4.6)% | |||||||||||||||||||
Consolidated | $ | 87,234 | $ | 99,966 | $ | (12,732) | (12.7)% | ||||||||||||||||
Gross profit margin | |||||||||||||||||||||||
Lawson | 55.3 | % | 55.2 | % | |||||||||||||||||||
Bolt Supply | 39.2 | % | 37.9 | % | |||||||||||||||||||
Consolidated | 53.5 | % | 53.3 | % |
Six Months Ended June 30, | Decrease | ||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | Amount | % | |||||||||||||||||||
Selling expenses | |||||||||||||||||||||||
Lawson | $ | 34,839 | $ | 41,932 | $ | (7,093) | (16.9)% | ||||||||||||||||
Bolt Supply | 1,451 | 1,677 | (226) | (13.5)% | |||||||||||||||||||
Consolidated | $ | 36,290 | $ | 43,609 | $ | (7,319) | (16.8)% | ||||||||||||||||
General and administrative expenses | |||||||||||||||||||||||
Lawson | $ | 27,263 | $ | 44,331 | $ | (17,068) | (38.5)% | ||||||||||||||||
Bolt Supply | 4,474 | 4,859 | (385) | (7.9)% | |||||||||||||||||||
Consolidated | $ | 31,737 | $ | 49,190 | $ | (17,453) | (35.5)% |
(a) | (b) | (c) | (d) | |||||||||||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||||||||||||||
April 1 to April 30, 2020 | — | $ | — | — | $ | 4,512,000 | ||||||||||||||||||||
May 1 to May 31, 2020 | — | — | — | 4,512,000 | ||||||||||||||||||||||
June 1 to June 30, 2020 | — | — | — | 4,512,000 | ||||||||||||||||||||||
Total | — | — |
Exhibit # | |||||
101 | The following financial statements from the Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statement of Income and Comprehensive Income, (iii) Condensed Consolidated Statements of Stockholders’ Equity, (iv) Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements. | ||||
104 | The cover page from the Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, formatted in Inline XBRL | ||||
101.INS | XBRL Instance Document | ||||
101.SCH | XBRL Taxonomy Extension Schema Document | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
LAWSON PRODUCTS, INC. | |||||||||||
(Registrant) | |||||||||||
Dated: | July 30, 2020 | /s/ Michael G. DeCata | |||||||||
Michael G. DeCata President and Chief Executive Officer (principal executive officer) | |||||||||||
Dated: | July 30, 2020 | /s/ Ronald J. Knutson | |||||||||
Ronald J. Knutson Executive Vice President, Chief Financial Officer, Treasurer and Controller (principal financial and accounting officer) |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2020 |
Dec. 31, 2019 |
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Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common stock, shares outstanding | 9,007,411 |
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Total revenue | $ 72,146 | $ 96,097 | $ 163,181 | $ 187,440 |
Gross profit | 38,313 | 51,043 | 87,234 | 99,966 |
Operating expenses: | ||||
Selling expenses | 16,306 | 21,867 | 36,290 | 43,609 |
General and administrative expenses | 21,438 | 27,553 | 31,737 | 49,190 |
Operating expenses | 37,744 | 49,420 | 68,027 | 92,799 |
Operating income | 569 | 1,623 | 19,207 | 7,167 |
Interest expense | (72) | (146) | (187) | (343) |
Other income (expense), net | (511) | (339) | 600 | (811) |
Income before income taxes | 1,008 | 1,816 | 18,420 | 7,635 |
Income tax expense | 389 | 509 | 5,268 | 2,182 |
Net income | $ 619 | $ 1,307 | $ 13,152 | $ 5,453 |
Basic income per share of common stock | $ 0.07 | $ 0.15 | $ 1.46 | $ 0.61 |
Diluted income per share of common stock | $ 0.07 | $ 0.14 | $ 1.41 | $ 0.58 |
Weighted average shares outstanding: | ||||
Basic weighted average shares outstanding | 9,002 | 8,976 | 9,017 | 8,969 |
Effect of dilutive securities outstanding | 296 | 405 | 310 | 379 |
Diluted weighted average shares outstanding | 9,298 | 9,381 | 9,327 | 9,348 |
Comprehensive income: | ||||
Net income | $ 619 | $ 1,307 | $ 13,152 | $ 5,453 |
Adjustment for foreign currency translation | 1,178 | 717 | (1,316) | 1,392 |
Net comprehensive income | 1,797 | 2,024 | 11,836 | 6,845 |
Product [Member] | ||||
Revenue | 64,571 | 85,996 | 145,906 | 167,911 |
Cost of goods sold | 31,063 | 40,580 | 68,868 | 78,587 |
Service [Member] | ||||
Revenue | 7,575 | 10,101 | 17,275 | 19,529 |
Cost of goods sold | $ 2,770 | $ 4,474 | $ 7,079 | $ 8,887 |
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
6 Months Ended | |
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Jun. 30, 2020 |
Jun. 30, 2019 |
|
Operating activities: | ||
Net income | $ 13,152 | $ 5,453 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 3,020 | 2,933 |
Stock-based compensation | (7,513) | 5,247 |
Deferred income taxes | 2,514 | 1,591 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,887 | (7,974) |
Inventories | 311 | (1,882) |
Prepaid expenses and other assets | (499) | (1,629) |
Accounts payable and other liabilities | (7,527) | (6,406) |
Other | 492 | 434 |
Net cash provided by (used in) operating activities | 7,837 | (2,233) |
Investing activities: | ||
Purchases of property, plant and equipment | (720) | (944) |
Net cash used in investing activities | (720) | (944) |
Financing activities: | ||
Net payments on revolving lines of credit | (559) | (2,000) |
Repurchase treasury shares | (1,756) | 0 |
Payment of financing lease principal | (135) | (123) |
Proceeds from stock option exercises | 15 | 16 |
Net cash used in financing activities | (2,435) | (2,107) |
Effect of exchange rate changes on cash and cash equivalents | (165) | 316 |
Increase (decrease) in cash, cash equivalents and restricted cash | 4,517 | (4,968) |
Cash, cash equivalents and restricted cash at beginning of period | 6,297 | 12,683 |
Cash, cash equivalents and restricted cash at end of period | 10,814 | 7,715 |
Cash, cash equivalents and restricted cash | 10,814 | 7,715 |
Supplemental disclosure of cash flow information | ||
Net cash paid for income taxes | 207 | 259 |
Net cash paid for interest | $ 247 | $ 358 |
Basis of Presentation and Summary of Significant Accounting Policies |
6 Months Ended |
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Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting PoliciesThe accompanying unaudited condensed consolidated financial statements of Lawson Products, Inc. (the “Company”) have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not contain all disclosures required by generally accepted accounting principles. Reference should be made to the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. In the opinion of the Company, all normal recurring adjustments have been made that are necessary to present fairly the results of operations for the interim periods. Operating results for the three and six month periods ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The Company has two operating segments. The first segment, the Lawson operating segment, distributes maintenance, repair and operations ("MRO") products to customers primarily through a network of sales representatives offering vendor managed inventory ("VMI") service to customers throughout the United States and Canada. The second segment, The Bolt Supply House Ltd. ("Bolt Supply") operating segment, distributes MRO products primarily through its branches located in Western Canada. Bolt Supply had 14 branches in operation at the end of the second quarter 2020. |
Revenue Recognition |
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Deferred Revenue Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition As part of the Company's revenue recognition analysis, it concluded that it has two separate performance obligations, and accordingly, two separate revenue streams: products and services. As a result, the Company reports two separate revenue streams and two separate costs of revenues. Under the definition of a contract as defined by ASC 606, the Company considers contracts to be created at the time an order to purchase product is agreed upon regardless of whether or not there is a written contract. Performance Obligations Lawson has two operating segments; the Lawson segment and the Bolt Supply segment. The Lawson segment has two distinct performance obligations offered to its customers: a product performance obligation and a service performance obligation. Although the Company has identified that it offers its customers both a product and a service obligation, the customer only receives one invoice per transaction with no price breakout between these obligations. The Company does not price its offerings based on any breakout between these obligations. Lawson generates revenue primarily from the sale of MRO products to its customers. Revenue related to product sales is recognized at the time that control of the product has been transferred to the customer; either at the time the product is shipped or the time the product has been received by the customer. The Company does not commit to long-term contracts to sell customers a certain minimum quantity of products. The Lawson segment offers a vendor managed inventory ("VMI") service proposition to its customers. A portion of these services, primarily related to stocking of product and maintenance of the MRO inventory, is provided a short period of time after control of the purchased product has been transferred to the customer. Since some components of VMI service have not been provided at the time the control of the product transfers to the customer, that portion of expected consideration is deferred until the time that those services have been provided. The Bolt Supply segment does not provide VMI services for its customers or provide services in addition to product sales to customers. Revenue is recognized at the time that control of the product has been transferred to the customer which is either upon delivery or shipment depending on the terms of the contract. Accounting Policy Elections The Company has elected to treat shipping and handling costs after the control of the product has been transferred to the customer as a fulfillment cost. Sales taxes that are imposed on our sales and collected from customers are excluded from revenues. The Company expenses sales commissions when incurred as the amortization period is one year or less. Certain Judgments The Company employs certain judgments to estimate the dollar amount of revenue, and related expenses, allocated to the sale of product and service. These judgments include, among others, the percentage of customers that take advantage of the VMI services offered, the amount of revenue to be allocated to the VMI service based on the value of the service to its customers, and the amount of time after control of the product passes to the customer that the VMI service obligation is completed. It is assumed that any customer who averages placing orders at a frequency of longer than 30 days does not take advantage of the available VMI services offered. The estimate of the cost of sales is based on expenses directly related to sales representatives that provide direct VMI services to the customer. The onset of the COVID-19 pandemic impacted the ability of the Lawson sales representatives to call on their customers in person, particularly in the first half of the second quarter of 2020. As a result, Lawson sales representatives were not able to perform VMI services with the same frequency in the second quarter of 2020 as they were in prior quarters. As a result, the amount of revenue allocated to the service revenue component is lower in the second quarter of 2020 than in previous quarters. Additionally the amount of service costs allocated to gross margin from selling expense is lower than in prior quarters. The Company expects the COVID-19 pandemic to continue to impact the allocation of service revenue and service related costs for the foreseeable future, though the Company is unable to determine the extent of the impact at this time. At June 30, 2020, the Company had a deferred revenue liability of $0.5 million and a deferred expense of $0.2 million for related expenses associated with the deferred service performance obligations, respectively. The decrease in deferred revenues and related expenses associated with the deferred service performance obligations is driven by the effects of the COVID-19 pandemic. The deferral of revenue and expenses does not affect the amount, timing and any uncertainty of cash flows generated from operations. Disaggregated revenue by geographic area follows:
Disaggregated revenue by product type follows:
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Restricted Cash |
6 Months Ended |
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Jun. 30, 2020 | |
Restricted Cash [Abstract] | |
Restricted Cash | Restricted CashThe Company has agreed to maintain $0.8 million in a money market account as collateral for an outside party that is providing certain commercial card processing services for the Company. The Company is restricted from withdrawing this balance without the prior consent of the outside party during the term of the agreement. |
Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, Net | Inventories, Net Inventories, net, consisting primarily of purchased goods which are offered for resale, were as follows:
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Goodwill Goodwill |
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Goodwill | Goodwill Goodwill activity for the first six months of 2020 and 2019 is included in the table below:
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Intangible Assets |
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Intangible Assets | Intangible Assets The gross carrying amount and accumulated amortization by intangible asset class were as follows:
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company leases property used for distribution centers, office space, and Bolt branch locations throughout the US and Canada, along with various equipment located in distribution centers and corporate headquarters. The Company is also a lessor of its Decatur, Alabama property previously used in conjunction with a discontinued operation. Lawson Operating Leases Lawson MRO primarily has two types of leases: leases for real estate and leases for equipment. Operating real estate leases that have a material impact on the operations of the Company are related to the Company's distribution network and headquarters. The Company possesses several additional property leases that are month to month basis and are not material in nature. Lawson MRO does not possess any leases that have residual value guarantees. Several property leases include renewal clauses which vary in length and may not include specific rent renewal amounts. The Company will revise the value of the right of use assets and associated lease liabilities when the Company is reasonably certain it will renew a lease. The value of the Right Of Use ("ROU") assets and associated lease liabilities is calculated using the total cash payments over the course of the lease, discounted to the present value using the appropriate incremental borrowing rate. The right of use asset will be amortized over its useful life. The lease liability is reduced in conjunction with the lease payments made, with adjustments made to the lease liability in order to account for non-straight line cash payments through the life of the lease. Bolt primarily leases the real estate for its branch locations as well as its distribution center in Calgary, Alberta. Bolt possesses additional property leases that are month to month and not material in nature. Bolt property leases include renewal clauses which vary in length and may not include specific rent renewal amounts. The Company will revise the value of the right of use asset and associated lease liability when the Company is reasonably certain it will renew a lease. Significant Assumptions The Company is required to determine a discount rate for the present value of lease payments. If the rate is not included in the lease or cannot be readily determined, the Company must estimate the incremental borrowing rate to be used for the discount rate. The discount rate of Lawson MRO and Bolt will be reviewed on a periodic basis and updated as needed. The expenses and income generated by the leasing activity of Lawson as lessee for the three months ended June 30, 2020 and June 30, 2019 are as follows (Dollars in thousands):
(1) Includes short term lease expense, which is immaterial (2) Sublease income from sublease of a portion of the Company headquarters. The sublease was terminated in June 2019 and the Company has no other subleases. The expenses and income generated by the leasing activity of Lawson as lessee for the six months ended June 30, 2020 and June 30, 2019 are as follows (Dollars in thousands):
(1) Includes short term lease expense, which is immaterial (2) Sublease income from sublease of a portion of the Company headquarters. The sublease was terminated in June 2019 and the Company has no other subleases. The value of the net assets and liabilities generated by the leasing activity of Lawson as lessee as of June 30, 2020 and December 31, 2019 are as follows (Dollars in thousands):
(1) Operating lease assets are recorded net of accumulated amortization of $4.5 million and $2.4 million as of June 30, 2020 and December 31, 2019, respectively (2) Financing lease assets are recorded net of accumulated amortization of $0.3 million and $0.2 million as of June 30, 2020 and December 31, 2019, respectively The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of June 30, 2020 were as follows (Dollars in thousands):
(1) Minimum lease payments exclude payments to landlord for real estate taxes and common area maintenance $0.4 million The weighted average lease terms and interest rates of the leases held by Lawson as of June 30, 2020 are as follows:
The cash outflows of the leasing activity of Lawson as lessee for the six months ending June 30, 2020 are as follows (Dollars in thousands):
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Credit Agreement |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Agreement | Credit Agreement In the fourth quarter of 2019, the Company entered into a five-year credit agreement led by J.P. Morgan Chase Bank N.A, as administrative agent and including CIBC Bank USA and Bank of America, N.A. as other lenders. The credit agreement matures on October 11, 2024 and provides for $100.0 million of revolving commitments. The credit agreement allows borrowing capacity to increase to $150.0 million subject to meeting certain criteria and additional commitments from its lenders. The Credit Agreement consists of borrowings as alternate base rate loans, Canadian prime rate loans, Eurodollar loans, and Canadian dollar offered rate loans as the Company requests. The applicable interest rate spread is determined by the type of borrowing used and the Total Net Leverage Ratio as of the most recent fiscal quarter as defined in the Credit Agreement. The covenants associated with the Credit Agreement restrict the ability of the Company to, among other things: incur additional indebtedness and liens, make certain investments, merge or consolidate, engage in certain transactions such as the disposition of assets and sales-leaseback transactions, and make certain restricted cash payments such as dividends in excess of defined amounts contained within the Credit Agreement. In addition to these items and other customary terms and conditions, the Credit Agreement requires the Company to comply with certain financial covenants as follows: a) The Company is required to maintain an EBITDA to Fixed Charge Coverage Ratio of at least 1.15 to 1.00 for any period of four consecutive fiscal quarters ending on the last day of any fiscal quarter; and b) The Company is required to maintain a Total Net Leverage Ratio of no more than 3.25 to 1.00 on the last day of any fiscal quarter. The maximum Total Net Leverage Ratio will be allowed to increase to 3.75 to 1.00 after certain permitted acquisitions. The Credit Agreement also includes events of default for, among others, non-payment of obligations under the Credit Agreement, change of control, cross default to other indebtedness in an aggregate amount in excess of $5.0 million, failure to comply with covenants, and insolvency. In addition to other customary representations, warranties and covenants, the results of the financial covenants are provided below:
The Company was in compliance with all covenants as of June 30, 2020. At June 30, 2020, the Company had $1.7 million of borrowings and $97.3 million of availability under its revolving line of credit facility. The weighted average interest rate was 2.64% and 3.82% for the six months ended June 30, 2020 and 2019, respectively.
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Stock Repurchase Program |
6 Months Ended |
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Jun. 30, 2020 | |
Treasury Shares Repurchase [Abstract] | |
Stock Repurchase Program | Stock Repurchase ProgramIn the second quarter of 2019, the Board of Directors authorized a program in which the Company may repurchase up to $7.5 million of the Company's common stock from time to time in open market transactions, privately negotiated transactions or by other methods. In the first quarter of 2020 the Company purchased 47,504 shares of common stock at an average purchase price of $36.93 under the repurchase program. No shares were repurchased in the second quarter of 2020. |
Severance Reserve |
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Severance Reserve [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Severance Reserve | Severance Reserve Changes in the Company’s reserve for severance as of June 30, 2020 and 2019 were as follows:
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Stock-Based Compensation |
6 Months Ended |
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Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company recorded stock-based compensation income of $7.5 million and expense of $5.2 million for the first six months of 2020 and 2019, respectively. A portion of stock-based compensation is related to the change in the market value of the Company's common stock. Stock-based compensation liability of $6.3 million as of June 30, 2020 and $14.9 million as of December 31, 2019 is included in Accrued expenses and other liabilities. A summary of stock-based awards issued during the six months ended June 30, 2020 follows: Restricted Stock Units ("RSUs") The Company issued 6,847 RSUs to key employees that cliff vest on December 31, 2022. The Company issued 2,500 RSUs to an executive that cliff vest on March 2, 2023 and 3,000 RSUs that cliff vest on March 9, 2023. The Company issued 10,965 RSUs to certain members of the Company's Board of Directors with a vesting date of May 12, 2021. Each RSU is exchangeable for one share of the Company's common stock at the end of the vesting period. Market Stock Units ("MSUs") The Company issued 22,284 MSUs to key employees that cliff vest on December 31, 2022. MSUs are exchangeable for the Company's common stock at the end of the vesting period. The number of shares of common stock that will be issued upon vesting, ranging from zero to 33,426, will be determined based upon the trailing sixty-day average closing price of the Company's common stock on December 31, 2022. Performance Awards ("PAs") The Company issued 10,852 PAs to key employees that cliff vest on December 31, 2022. PAs are exchangeable for the Company's common stock ranging from zero to 16,278, or the equivalent amount in cash, based upon the achievement of certain financial performance metrics. For the three months ended June 30, 2020, stock options to purchase approximately 19,000 shares of the Company's common stock were excluded from the computation of diluted earnings per share because they were anti-dilutive. No stock options were excluded from the computation of diluted earnings per share for the three months ended June 30, 2019 or the six months ended June 30, 2020 and June 30, 2019.
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Income Taxes |
6 Months Ended |
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Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company recorded income tax expense of $5.3 million, a 28.6% effective tax rate for the six months ended June 30, 2020. The effective tax rate is higher than the U.S. statutory tax rate due primarily to state taxes, recording of reserves for uncertain tax positions, and an inclusion for Global Intangible Low Taxed Income. Income tax expense of $2.2 million, a 28.6% effective tax rate was recorded for the six months ended June 30, 2019. This effective tax rate was higher than the U.S. statutory rate due primarily to state taxes, income in higher tax jurisdictions and an inclusion for Global Intangible Low Tax Income. The Company and its subsidiaries are subject to U.S. Federal income tax, as well as income tax of multiple state and foreign jurisdictions. As of June 30, 2020, the Company is subject to U.S. Federal income tax examinations for the years 2016 through 2018 and income tax examinations from various other jurisdictions for the years 2012 through 2018. Earnings from the Company’s foreign subsidiaries are considered to be indefinitely reinvested. A distribution of these non-U.S. earnings in the form of dividends or otherwise may subject the Company to foreign withholding taxes and U.S. federal and state taxes. |
Contingent Liability |
6 Months Ended |
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Jun. 30, 2020 | |
Contingent Liability [Abstract] | |
Contingent Liability | Contingent LiabilitiesIn 2012, the Company identified that a site it owns in Decatur, Alabama, contains hazardous substances in the soil and groundwater as a result of historical operations prior to the Company's ownership. The Company retained an environmental consulting firm to further investigate the contamination including the measurement and monitoring of the site and the site was enrolled in the Alabama Department of Environmental Management (“ADEM") voluntary cleanup program. The remediation plan was approved by ADEM in 2018. The plan consists of chemical injections throughout the affected area, as well as subsequent monitoring of the area for three consecutive periods. The injection process was completed in the first quarter of 2019 and the environmental consulting firm is monitoring the affected area. The Company believes the remaining environmental remediation liability of approximately $0.1 million, classified within Accrued expenses and other liabilities on the accompanying Consolidated Balance Sheet, will be sufficient to cover the remaining cost of the plan. The Company does not expect to capitalize any amounts related to the remediation plan. |
Related Party Disclosures |
6 Months Ended |
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Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | Related Party TransactionDuring the second quarter of 2020 the Company purchased approximately $0.2 million of inventory from a company owned by an immediate relative of a Board member at fair market value. The Company paid the amount owed in the second quarter and therefore no remaining liabilities exist as of June 30, 2020. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company operates in two reportable segments. The businesses have been determined to be separate reportable segments because of differences in their financial characteristics and the methods they employ to deliver product to customers. The operating segments are reviewed by the Company’s chief operating decision maker responsible for reviewing operating performance and allocating resources. The Lawson segment primarily relies on its large network of sales representatives to visit the customer at the customers' work location and provide VMI service and produce sales orders for product that is then shipped to the customer. The Bolt Supply segment primarily sells product to customers through its branch locations. Bolt Supply had 14 branches in operation at the end of the second quarter of 2020. Financial information for the Company's reportable segments follows:
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COVID-19 Risks and Uncertainties |
6 Months Ended |
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Jun. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
COVID-19 Risks and Uncertainties | COVID-19 Risks and Uncertainties There is substantial uncertainty as to the overall effect the COVID-19 pandemic will have on the results of the Company for 2020 and beyond. Various events related to COVID-19 have resulted in lost revenue to our Company, limitations on our ability to source high demand products, limitations on our sales force to perform certain functions due to state or federal stay-at-home orders, slow-down of customer demand for our products and limitations of some customers to pay us on a timely basis. On March 27, 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide certain relief as a result of the COVID-19 outbreak. The Company has elected to defer the employer side social security payments in accordance with the CARES Act. The Company will continue to evaluate how the provisions of the CARES Act will impact its financial position, results of operations and cash flows. The Company has utilized the Canadian Emergency Wage Subsidy (CEWS) Act for both Lawson Canada and Bolt for assistance with hourly employee costs. The CEWS is a program that provides a subsidy of 75% of eligible wages for up to 24 weeks, retroactive from March 15, 2020 to August 29, 2020 subject to meeting certain criteria. During the three months ended June 30, 2020 the Company recorded $0.9 million in subsidies from the CEWS program which is recognized as a reduction to selling, general and administrative expenses in the consolidated statement of income and comprehensive income. In the first quarter of 2020, the government of the state of Illinois defined essential businesses, allowing Lawson to operate during the pandemic. A change in this status could result in the temporary closure of our business. Additionally the COVID-19 pandemic could result in a temporary closure of any or all of our distribution facilities or the Bolt branch locations, which would negatively impact our operations. Other disruptions to our supply chain such as reduced capacity or temporary shutdowns of freight carriers could also negatively impact Company performance. The pandemic is negatively impacting sales and operations currently and may negatively impact future financial results, liquidity and overall performance of the Company. Additionally, it is reasonably possible that estimates made in the financial statements may be materially and adversely impacted in the near term as a result of these conditions, including delay in payment of receivables, impairment losses related to goodwill and other long-lived assets, and inability to utilize deferred tax assets. The Lawson MRO business model relies upon customer interaction as well as a consistent schedule of onsite visits by our sales representatives to customer locations. The Bolt business model relies on foot traffic in its branch locations. The onset of the COVID-19 pandemic, as well as social distancing guidelines and government mandated shelter in place orders, have negatively impacted our business. The Company has taken several steps to mitigate the potential negative impacts of COVID-19. While sales reps representatives continued to call on current and prospective customers via phone, fax and electronic methods, the lack of physically visiting customer sites along with the closure of customer locations across North America in response to the pandemic led to a decrease in sales compared to April 2019. The Bolt Supply House also saw a decline in sales in April 2020 compared to April 2019 as the ability of customers to visit branch locations was restricted and certain customers temporarily closed. As certain restrictions were lifted by states toward the end of the second quarter developed, Lawson sales representatives were able to visit additional customers and Bolt was able to allow customers inside their branch locations again on a limited basis, as well as continue to offer curbside pickup. This led to improved sales activity in May and June on a sequential basis. The Company took additional actions in the second quarter, including, but not limited to furloughing approximately 100 employees, reducing base salaries, canceling travel and award trips, temporarily consolidating its Suwanee distribution center operations into the McCook facility, and eliminating non-critical capital expenditures. The Company continues to monitor its balance sheet and liquidity position and is taking actions to protect cash flows from operations, while at the same time managing its operating expenses in relation to current sales trends. At June 30, 2020, the Company had $10.0 million of unrestricted cash and cash equivalents and an additional $97.3 million of borrowing capacity, net of outstanding letters of credit, under its committed credit facility. The Company will continue to closely monitor the operating environment and will take appropriate actions to protect the safety for its employees, customers and suppliers while continuing to meet its working capital needs and remain in compliance with its debt covenants.
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Revenue Recognition (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Revenue Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregated Revenue by Geographic Areas | Disaggregated revenue by geographic area follows:
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Disaggregated Revenue by Product Type | Disaggregated revenue by product type follows:
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Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of inventories | Inventories, net, consisting primarily of purchased goods which are offered for resale, were as follows:
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Goodwill (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Goodwill activity for the first six months of 2020 and 2019 is included in the table below:
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Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets Disclosure | The gross carrying amount and accumulated amortization by intangible asset class were as follows:
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Leases (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Lease Cost | The expenses and income generated by the leasing activity of Lawson as lessee for the three months ended June 30, 2020 and June 30, 2019 are as follows (Dollars in thousands):
(1) Includes short term lease expense, which is immaterial (2) Sublease income from sublease of a portion of the Company headquarters. The sublease was terminated in June 2019 and the Company has no other subleases.
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Operating Lease Assets And Liabilities | The value of the net assets and liabilities generated by the leasing activity of Lawson as lessee as of June 30, 2020 and December 31, 2019 are as follows (Dollars in thousands):
(1) Operating lease assets are recorded net of accumulated amortization of $4.5 million and $2.4 million as of June 30, 2020 and December 31, 2019, respectively (2) Financing lease assets are recorded net of accumulated amortization of $0.3 million and $0.2 million as of June 30, 2020 and December 31, 2019, respectively
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Value of Lease Liabilities Generated by Leasing Activities | The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of June 30, 2020 were as follows (Dollars in thousands):
(1) Minimum lease payments exclude payments to landlord for real estate taxes and common area maintenance $0.4 million
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Lease Disclosures | The weighted average lease terms and interest rates of the leases held by Lawson as of June 30, 2020 are as follows:
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Schedule of Cash Flow, Supplemental Disclosures | The cash outflows of the leasing activity of Lawson as lessee for the six months ending June 30, 2020 are as follows (Dollars in thousands):
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Credit Agreement (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Covenants | In addition to other customary representations, warranties and covenants, the results of the financial covenants are provided below:
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Severance Reserve (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Severance Reserve [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the Company's reserve for severance and related payments | Changes in the Company’s reserve for severance as of June 30, 2020 and 2019 were as follows:
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Segment Reporting (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Financial information for the Company's reportable segments follows:
|
Basis of Presentation and Summary of Significant Accounting Policies (Details) |
6 Months Ended |
---|---|
Jun. 30, 2020
Segment
| |
Accounting Policies [Abstract] | |
Number of Reportable Segments | 2 |
Revenue Recognition - Narrative (Details) $ in Millions |
Jun. 30, 2020
USD ($)
|
---|---|
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 0.5 |
Deferred expense | $ 0.2 |
Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 72,146 | $ 96,097 | $ 163,181 | $ 187,440 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 57,096 | 76,119 | 130,679 | 150,167 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 15,050 | $ 19,978 | $ 32,502 | $ 37,273 |
Revenue Recognition - Product Type (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Product Revenue [Abstract] | ||||
Fastening Systems | 23.80% | 24.30% | 23.30% | 23.90% |
Fluid Power | 13.20% | 15.20% | 13.80% | 15.20% |
Specialty Chemicals | 12.50% | 13.00% | 12.90% | 11.50% |
Cutting Tools and Abrasives | 12.80% | 11.70% | 11.90% | 13.10% |
Electrical | 10.00% | 10.70% | 10.40% | 11.10% |
Aftermarket Automotive Supplies | 6.00% | 7.60% | 7.20% | 8.00% |
Safety | 6.10% | 4.70% | 6.20% | 4.70% |
Welding and Metal Repair | 1.50% | 1.60% | 1.50% | 1.70% |
Other Products | 14.10% | 11.20% | 12.80% | 10.80% |
Total Products | 100.00% | 100.00% | 100.00% | 100.00% |
Restricted Cash (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
---|---|---|---|
Restricted Cash [Abstract] | |||
Restricted cash | $ 802 | $ 802 | $ 800 |
Inventories (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Components of inventories | ||
Inventory, Gross | $ 59,467 | $ 60,500 |
Inventory Valuation Reserves | (4,557) | (4,595) |
Inventories, net | $ 54,910 | $ 55,905 |
Goodwill (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Goodwill [Roll Forward] | ||
Beginning balance | $ 20,923 | $ 20,079 |
Adjustment to original acquisition allocation | 0 | 2 |
Impact of foreign exchange | (773) | 713 |
Ending balance | $ 20,150 | $ 20,794 |
Intangible Assets (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 15,256 | $ 15,759 | |
Accumulated Amortization | (4,006) | (3,424) | |
Net Carrying Value | 11,250 | 12,335 | |
Amortization of Intangible Assets | 700 | $ 300 | |
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 8,121 | 8,422 | |
Accumulated Amortization | (2,237) | (2,020) | |
Net Carrying Value | 5,884 | 6,402 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 7,135 | 7,337 | |
Accumulated Amortization | (1,769) | (1,404) | |
Net Carrying Value | $ 5,366 | $ 5,933 |
Leases - Net Lease Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Leases [Abstract] | ||||
Consolidated Operating Lease Expense | $ 1,183 | $ 1,227 | $ 2,369 | $ 2,502 |
Consolidated Financing Lease Amortization | 50 | 51 | 102 | 99 |
Consolidated Financing Lease Interest | 7 | 7 | 14 | 13 |
Consolidated Financing Lease Expense | 57 | 58 | 116 | 112 |
Sublease Income | 0 | (80) | 0 | (160) |
Net Lease Cost | $ 1,240 | $ 1,205 | $ 2,485 | $ 2,454 |
Leases - Net Lease Assets and Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Leases [Abstract] | ||
Total ROU operating lease assets | $ 8,944 | $ 10,592 |
Total ROU financing lease assets | 563 | 654 |
Total lease assets | 9,507 | 11,246 |
Total current operating lease obligation | 3,678 | 3,591 |
Total current financing lease obligation | 243 | 239 |
Total current lease obligations | 3,921 | 3,830 |
Total long term operating lease obligation | 7,166 | 9,133 |
Total long term financing lease obligation | 261 | 371 |
Total long term lease obligation | 7,427 | 9,504 |
Operating lease accumulated depreciation | 4,500 | 2,400 |
Finance lease accumulated depreciation | $ 300 | $ 200 |
Leases - Value of Lease Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Operating Leases | ||
2019 | $ 4,126 | |
2020 | 4,056 | |
2021 | 1,955 | |
2022 | 951 | |
2023 | 151 | |
Subsequent years | 498 | |
Total lease payments | 11,737 | |
Less: Interest | 893 | |
Present value of lease liabilities | 10,844 | |
Financing Leases | ||
2019 | 263 | |
2020 | 145 | |
2021 | 98 | |
2022 | 30 | |
2023 | 2 | |
Subsequent years | 0 | |
Total lease payments | 538 | $ 400 |
Less: Interest | 34 | |
Present value of lease liabilities | 504 | |
Total | ||
2019 | 4,389 | |
2020 | 4,201 | |
2021 | 2,053 | |
2022 | 981 | |
2023 | 153 | |
Subsequent years | 498 | |
Total lease payments | 12,275 | |
Less: Interest | 927 | |
Present value of lease liabilities | $ 11,348 |
Leases - Leases Weighted-Average Lease Terms and Interest Rates (Details) |
Jun. 30, 2020 |
---|---|
Leases [Abstract] | |
Operating Leases, Weighted Average Term in Years | 3 years 3 months 18 days |
Operating Leases, Weighted Average Interest Rate | 5.10% |
Finance Leases, Weighted Average Term in Years | 2 years 7 months 6 days |
Finance Leases, Weighted Average Interest Rate | 5.44% |
Leases - Cash Outflows of the Leasing Activity (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
| |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 2,021 |
Operating cash flow from financing leases | 15 |
Financing cash flow from financing leases | $ 135 |
Credit Agreement - Covenant (Details) |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Loan Agreement [Line Items] | |
Minimum Debt Service Coverage Ratio | 1.15 |
Minimum Net Leverage Ratio | 3.25 |
Credit Agreement (Details) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2019 |
|
Credit Facility (Textual) [Abstract] | ||
Weighted average interest rate | 2.64% | 3.82% |
Minimum Net Leverage Ratio | 3.25 | |
Minimum Debt Service Coverage Ratio | 1.15 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 97.3 | |
Revolving Credit Facility [Member] | ||
Credit Facility (Textual) [Abstract] | ||
JP Morgan Credit Agreement Limit | 100.0 | |
JP Morgan Agreement Potential Future Credit Limit | 150.0 | |
Line of Credit [Member] | Revolving Credit Facility [Member] | ||
Credit Facility (Textual) [Abstract] | ||
Long-term Debt | $ 1.7 |
Stock Repurchase Program (Details) - USD ($) |
3 Months Ended | 6 Months Ended |
---|---|---|
Mar. 31, 2020 |
Jun. 30, 2020 |
|
Treasury Shares Repurchase [Abstract] | ||
Stock Repurchase Program, Authorized Amount | $ 7,500,000 | |
Treasury Stock, Shares, Acquired | 47,504 | 47,504 |
Average price of treasury shares repurchased during the period | $ 36.93 |
Severance Reserve (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Reserve for severance and related payments | ||
Balance at beginning of period | $ 909 | $ 359 |
Charged to earnings | 1,032 | 1,512 |
Cash paid | (910) | (409) |
Balance at end of the period | $ 1,031 | $ 1,462 |
Stock-Based Compensation (Details) - USD ($) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Share-based Payment Arrangement [Abstract] | |||
Share-based Payment Arrangement, Expense | $ (7.5) | $ 5.2 | |
Deferred Compensation Share-based Arrangements, Liability, Current and Noncurrent | $ 6.3 | $ 14.9 |
Stock-Based Compensation - Restricted Stock Awards (Details) - Restricted Stock Units (RSUs) [Member] |
6 Months Ended |
---|---|
Jun. 30, 2020
shares
| |
Stock-Based Compensation Details | |
Stock-based awards issued (shares) | 6,847 |
Executive [Member] | Cliff vest on March 2, 2023 [Member] | |
Stock-Based Compensation Details | |
Stock-based awards issued (shares) | 2,500 |
Executive [Member] | Cliff vest on March 9, 2023 [Member] | |
Stock-Based Compensation Details | |
Stock-based awards issued (shares) | 3,000 |
Certain members of the Company's Board of Directors [Member] | |
Stock-Based Compensation Details | |
Stock-based awards issued (shares) | 10,965 |
Stock-Based Compensation - Market Stock Units (Details) - MSUs [Member] |
6 Months Ended |
---|---|
Jun. 30, 2020
shares
| |
Stock-Based Compensation Details | |
Stock-based awards issued (shares) | 22,284 |
Minimum [Member] | |
Stock-Based Compensation Details | |
Equity Share Payout Range | 0 |
Maximum [Member] | |
Stock-Based Compensation Details | |
Equity Share Payout Range | 33,426 |
Stock-Based Compensation - Performance Awards (Details) - PAs |
6 Months Ended |
---|---|
Jun. 30, 2020
shares
| |
Stock-Based Compensation Details | |
Stock-based awards issued (shares) | 10,852 |
Minimum [Member] | |
Stock-Based Compensation Details | |
Equity Share Payout Range | 0 |
Maximum [Member] | |
Stock-Based Compensation Details | |
Equity Share Payout Range | 16,278 |
Stock-Based Compensation - Anti Dilutive Options (Details) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Stock Compensation Plan [Member] | ||||
Stock-Based Compensation Details | ||||
Antidilutive Stock Excluded from Computation of Earnings Per Share | 19,000,000 | 0 | 0 | 0 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Income Tax Disclosure [Abstract] | ||||
Income Tax Expense (Benefit) | $ 389 | $ 509 | $ 5,268 | $ 2,182 |
Effective income tax rate | 28.60% | 28.60% |
Contingent Liability (Details) $ in Millions |
Jun. 30, 2020
USD ($)
|
---|---|
Contingent Liability [Abstract] | |
Environmental Exit Costs, Costs Accrued to Date | $ 0.1 |
Related Party Disclosures (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
| |
Related Party Transactions [Abstract] | |
Related Party Transaction, Expenses from Transactions with Related Party | $ 0.2 |
Segment Reporting (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2020
USD ($)
Segment
|
Jun. 30, 2019
USD ($)
|
|
Segment Reporting [Abstract] | ||||
Number of Reportable Segments | Segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 72,146 | $ 96,097 | $ 163,181 | $ 187,440 |
Gross profit | 38,313 | 51,043 | 87,234 | 99,966 |
Operating Income (Loss) | 569 | 1,623 | 19,207 | 7,167 |
Interest Expense | 72 | 146 | 187 | 343 |
Other Nonoperating Income (Expense) | 511 | 339 | (600) | 811 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 1,008 | 1,816 | 18,420 | 7,635 |
Lawson [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 63,214 | 84,967 | 144,705 | 167,434 |
Gross profit | 34,873 | 46,757 | 79,993 | 92,376 |
Operating Income (Loss) | (202) | 654 | 17,891 | 6,113 |
Bolt [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 8,932 | 11,130 | 18,476 | 20,006 |
Gross profit | 3,440 | 4,286 | 7,241 | 7,590 |
Operating Income (Loss) | 771 | 969 | 1,316 | 1,054 |
Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 64,571 | 85,996 | 145,906 | 167,911 |
Product [Member] | Lawson [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 55,639 | 74,866 | 127,430 | 147,905 |
Gross profit | 30,068 | 41,130 | 69,797 | 81,734 |
Service [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 7,575 | 10,101 | 17,275 | 19,529 |
Service [Member] | Lawson [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit | $ 4,805 | $ 5,627 | $ 10,196 | $ 10,642 |
COVID-19 Risks and Uncertainties (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
|
Risks and Uncertainties [Abstract] | |||
Canada Emergency Wage Subsidy | $ 900 | ||
Cash and cash equivalents | 10,012 | $ 5,495 | $ 6,915 |
Restricted cash | 802 | $ 802 | $ 800 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 97,300 |
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