Segment Information

6 Months Ended

Jun. 30, 2020

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:



	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Revenue
Lawson product revenue	$	55,639	$	74,866	$	127,430	$	147,905
Lawson service revenue	7,575		10,101		17,275		19,529
Total Lawson revenue	63,214		84,967		144,705		167,434
Bolt Supply	8,932		11,130		18,476		20,006
Consolidated total	$	72,146	$	96,097	$	163,181	$	187,440

Gross profit
Lawson product gross profit	$	30,068	$	41,130	$	69,797	$	81,734
Lawson service gross profit	4,805		5,627		10,196		10,642
Total Lawson gross profit	34,873		46,757		79,993		92,376
Bolt Supply	3,440		4,286		7,241		7,590
Consolidated total	$	38,313	$	51,043	$	87,234	$	99,966

Operating income
Lawson	$	(202)	$	654	$	17,891	$	6,113
Bolt Supply	771		969		1,316		1,054
Consolidated total	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