Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 15, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 0-10546 | |
Entity Registrant Name | LAWSON PRODUCTS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-2229304 | |
Entity Address, Address Line One | 8770 W. Bryn Mawr Avenue | |
Entity Address, Address Line Two | Suite 900 | |
Entity Address, City or Town | Chicago, | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60631 | |
City Area Code | (773) | |
Local Phone Number | 304-5050 | |
Title of 12(b) Security | Common stock, $1.00 par value | |
Trading Symbol | LAWS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,078,347 | |
Entity Central Index Key | 0000703604 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 7,460 | $ 28,393 |
Restricted cash | 197 | 998 |
Accounts receivable, less allowance for doubtful accounts of $771 and $654, respectively | 50,779 | 44,515 |
Inventories, net | 67,452 | 61,867 |
Miscellaneous receivables and prepaid expenses | 8,629 | 7,289 |
Total current assets | 134,517 | 143,062 |
Property, plant and equipment, net | 17,794 | 15,800 |
Goodwill | 35,253 | 35,176 |
Deferred income taxes | 18,877 | 18,482 |
Intangible assets, net | 16,796 | 18,503 |
Cash value of life insurance | 18,240 | 16,185 |
Right of use assets | 12,702 | 8,764 |
Other assets | 318 | 332 |
Total assets | 254,497 | 256,304 |
Current liabilities: | ||
Accrued acquisition liability | 0 | 32,673 |
Accounts payable | 25,585 | 22,262 |
Lease obligation | 4,348 | 4,568 |
Accrued expenses and other liabilities | 39,083 | 38,492 |
Total current liabilities | 69,016 | 97,995 |
Revolving line of credit | 10,900 | 0 |
Security bonus plan | 10,853 | 11,262 |
Deferred compensation | 11,821 | 10,461 |
Lease obligation | 9,744 | 5,738 |
Deferred tax liability | 2,945 | 2,841 |
Other liabilities | 4,862 | 5,585 |
Total liabilities | 120,141 | 133,882 |
Stockholders’ equity: | ||
Preferred Stock, $1 par value: Authorized - 500,000 shares, Issued and outstanding — None | 0 | 0 |
Common Stock, $1 par value: Authorized - 35,000,000 shares Issued - 9,305,566 and 9,287,625 shares, respectively Outstanding - 9,078,347 and 9,061,039 shares, respectively | 9,306 | 9,288 |
Capital in excess of par value | 21,546 | 19,841 |
Retained earnings | 111,796 | 101,609 |
Treasury stock – 227,219 and 226,586 shares, respectively | (9,048) | (9,015) |
Accumulated other comprehensive income | 756 | 699 |
Total stockholders’ equity | 134,356 | 122,422 |
Total liabilities and stockholders’ equity | $ 254,497 | $ 256,304 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Allowance for doubtful accounts | $ 771 | $ 654 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Preferred stock, par value (in USD per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 35,000,000 | 35,000,000 |
Common stock, shares issued (in shares) | 9,305,566 | 9,287,625 |
Common stock, shares outstanding (in shares) | 9,078,347 | 9,061,039 |
Treasury stock (in shares) | 227,219 | 226,586 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 105,570 | $ 90,277 | $ 315,666 | $ 253,458 |
Cost of goods sold | 49,524 | 43,052 | 150,440 | 118,999 |
Gross profit | 56,046 | 47,225 | 165,226 | 134,459 |
Operating expenses: | ||||
Selling expenses | 24,908 | 19,155 | 72,945 | 55,445 |
General and administrative expenses | 26,518 | 26,069 | 79,469 | 57,806 |
Operating expenses | 51,426 | 45,224 | 152,414 | 113,251 |
Operating income | 4,620 | 2,001 | 12,812 | 21,208 |
Interest expense | (119) | (142) | (710) | (329) |
Other income (expense), net | 209 | (615) | (802) | (15) |
Income before income taxes | 4,292 | 2,474 | 12,904 | 20,894 |
Income tax expense | 636 | 736 | 2,717 | 6,004 |
Net income | $ 3,656 | $ 1,738 | $ 10,187 | $ 14,890 |
Basic income per share of common stock (in USD per share) | $ 0.40 | $ 0.19 | $ 1.12 | $ 1.65 |
Diluted income per share of common stock (in USD per share) | $ 0.39 | $ 0.19 | $ 1.09 | $ 1.60 |
Weighted average shares outstanding: | ||||
Basic weighted average shares outstanding (in shares) | 9,078 | 9,017 | 9,073 | 9,017 |
Effect of dilutive securities outstanding (in shares) | 279 | 313 | 273 | 312 |
Diluted weighted average shares outstanding (in shares) | 9,357 | 9,330 | 9,346 | 9,329 |
Comprehensive income: | ||||
Net income | $ 3,656 | $ 1,738 | $ 10,187 | $ 14,890 |
Adjustment for foreign currency translation | (928) | 398 | 57 | (918) |
Net comprehensive income | $ 2,728 | $ 2,136 | $ 10,244 | $ 13,972 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Income |
Balance at beginning of year (in shares) at Dec. 31, 2019 | 9,043,771 | ||||||
Balance at beginning of year at Dec. 31, 2019 | $ 108,001 | $ 9,190 | $ 18,077 | $ 86,496 | $ (5,761) | $ (1) | |
Net income | 12,533 | 12,533 | |||||
Adjustment for foreign currency translation | (2,494) | (2,494) | |||||
Stock-based compensation | 451 | 451 | |||||
Shares repurchased held in treasury (in shares) | (47,504) | ||||||
Shares repurchased held in treasury | (1,756) | (1,756) | |||||
Balance at end of period (in shares) at Mar. 31, 2020 | 8,996,267 | ||||||
Balance at end of period at Mar. 31, 2020 | 116,735 | $ 9,190 | 18,528 | 99,029 | (7,517) | (2,495) | |
Balance at beginning of year (in shares) at Dec. 31, 2019 | 9,043,771 | ||||||
Balance at beginning of year at Dec. 31, 2019 | 108,001 | $ 9,190 | 18,077 | 86,496 | (5,761) | (1) | |
Net income | 14,890 | ||||||
Adjustment for foreign currency translation | (918) | ||||||
Balance at end of period (in shares) at Sep. 30, 2020 | 9,025,617 | ||||||
Balance at end of period at Sep. 30, 2020 | 121,254 | $ 9,232 | 19,508 | 101,386 | (7,953) | (919) | |
Balance at beginning of year (in shares) at Mar. 31, 2020 | 8,996,267 | ||||||
Balance at beginning of year at Mar. 31, 2020 | 116,735 | $ 9,190 | 18,528 | 99,029 | (7,517) | (2,495) | |
Net income | 619 | 619 | |||||
Adjustment for foreign currency translation | 1,178 | 1,178 | |||||
Stock-based compensation | 498 | 498 | |||||
Shares issued (in shares) | 11,144 | ||||||
Shares issued | 14 | $ 11 | 3 | ||||
Balance at end of period (in shares) at Jun. 30, 2020 | 9,007,411 | ||||||
Balance at end of period at Jun. 30, 2020 | 119,044 | $ 9,201 | 19,029 | 99,648 | (7,517) | (1,317) | |
Net income | 1,738 | 1,738 | |||||
Adjustment for foreign currency translation | 398 | $ 398 | |||||
Stock-based compensation | 510 | 510 | |||||
Shares issued (in shares) | 30,283 | ||||||
Shares issued | $ 0 | $ 31 | (31) | ||||
Shares repurchased held in treasury (in shares) | (12,077) | ||||||
Shares repurchased held in treasury | $ (436) | ||||||
Balance at end of period (in shares) at Sep. 30, 2020 | 9,025,617 | ||||||
Balance at end of period at Sep. 30, 2020 | $ 121,254 | $ 9,232 | 19,508 | 101,386 | (7,953) | (919) | |
Balance at beginning of year (in shares) at Dec. 31, 2020 | 9,287,625 | 9,061,039 | |||||
Balance at beginning of year at Dec. 31, 2020 | $ 122,422 | $ 9,288 | 19,841 | 101,609 | (9,015) | 699 | |
Net income | 3,596 | 3,596 | |||||
Adjustment for foreign currency translation | 631 | 631 | |||||
Stock-based compensation | 422 | 422 | |||||
Shares issued (in shares) | 5,776 | ||||||
Shares issued | 0 | $ 5 | (5) | ||||
Shares repurchased held in treasury (in shares) | (268) | ||||||
Shares repurchased held in treasury | (13) | (13) | |||||
Balance at end of period (in shares) at Mar. 31, 2021 | 9,066,547 | ||||||
Balance at end of period at Mar. 31, 2021 | $ 127,058 | $ 9,293 | 20,258 | 105,205 | (9,028) | 1,330 | |
Balance at beginning of year (in shares) at Dec. 31, 2020 | 9,287,625 | 9,061,039 | |||||
Balance at beginning of year at Dec. 31, 2020 | $ 122,422 | $ 9,288 | 19,841 | 101,609 | (9,015) | 699 | |
Net income | 10,187 | ||||||
Adjustment for foreign currency translation | $ 57 | ||||||
Balance at end of period (in shares) at Sep. 30, 2021 | 9,305,566 | 9,078,347 | |||||
Balance at end of period at Sep. 30, 2021 | $ 134,356 | $ 9,306 | 21,546 | 111,796 | (9,048) | 756 | |
Balance at beginning of year (in shares) at Mar. 31, 2021 | 9,066,547 | ||||||
Balance at beginning of year at Mar. 31, 2021 | 127,058 | $ 9,293 | 20,258 | 105,205 | (9,028) | 1,330 | |
Net income | 2,935 | 2,935 | |||||
Adjustment for foreign currency translation | 354 | 354 | |||||
Stock-based compensation | $ 551 | 551 | |||||
Shares issued (in shares) | 10,965 | ||||||
Shares issued | $ 0 | $ 11 | (11) | ||||
Balance at end of period (in shares) at Jun. 30, 2021 | 9,077,512 | ||||||
Balance at end of period at Jun. 30, 2021 | 130,898 | $ 9,304 | 20,798 | 108,140 | (9,028) | 1,684 | |
Net income | 3,656 | 3,656 | |||||
Adjustment for foreign currency translation | (928) | $ (928) | |||||
Stock-based compensation | $ 750 | 750 | |||||
Shares issued (in shares) | 1,200 | ||||||
Shares issued | $ 0 | $ 2 | (2) | ||||
Shares repurchased held in treasury (in shares) | (365) | ||||||
Shares repurchased held in treasury | $ (20) | (20) | |||||
Balance at end of period (in shares) at Sep. 30, 2021 | 9,305,566 | 9,078,347 | |||||
Balance at end of period at Sep. 30, 2021 | $ 134,356 | $ 9,306 | $ 21,546 | $ 111,796 | $ (9,048) | $ 756 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities: | ||
Net income | $ 10,187 | $ 14,890 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 5,990 | 4,660 |
Stock-based compensation | 1,403 | (2,767) |
Deferred income taxes | (298) | 1,454 |
Changes in operating assets and liabilities, net of acquisition | ||
Accounts receivable | (6,582) | (2,128) |
Inventories | (5,554) | 1,101 |
Miscellaneous receivables, prepaid expenses and other assets | (3,443) | (725) |
Accounts payable and other liabilities | 3,790 | 3,097 |
Other | 672 | 441 |
Net cash provided by operating activities | 6,165 | 20,023 |
Investing activities: | ||
Purchases of property, plant and equipment | (5,664) | (1,311) |
Business acquisition | (33,000) | (2,300) |
Net cash used in investing activities | (38,664) | (3,611) |
Financing activities: | ||
Net proceeds from revolving line of credit | 10,900 | (2,271) |
Repurchase treasury shares | (33) | (2,192) |
Payment of financing lease principal | (179) | (192) |
Proceeds from stock option exercise | 0 | 15 |
Net cash provided by (used in) financing activities | 10,688 | (4,640) |
Effect of exchange rate changes on cash and cash equivalents | 77 | (74) |
Increase (decrease) in cash, cash equivalents and restricted cash | (21,734) | 11,698 |
Cash, cash equivalents and restricted cash at beginning of period | 29,391 | 6,297 |
Cash, cash equivalents and restricted cash at end of period | 7,657 | 17,995 |
Cash and cash equivalents | 7,460 | 17,193 |
Restricted cash | 197 | 802 |
Cash, cash equivalents and restricted cash | 7,657 | 17,995 |
Supplemental disclosure of cash flow information | ||
Net cash paid for income taxes | 4,044 | 3,733 |
Net cash paid for interest | 834 | 295 |
Additions of property, plant and equipment included in accounts payable | $ 47 | $ 78 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
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 Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020. 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 nine month periods ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The Company has two operating segments. 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 Bolt Supply House Ltd. ("Bolt Supply") operating segment distributes MRO products primarily through its branches located in Western Canada. Bolt Supply had 14 b |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition | Acquisition On August 31, 2020, the Company acquired Partsmaster from NCH Corporation. Partsmaster is a leading maintenance, MRO solutions provider that serves approximately 16,000 customers with approximately 200 sales representatives. The acquisition was made primarily to expand the Company's sales coverage, expand product lines, add experienced sales representatives, and leverage the Company's infrastructure. The purchase price was $35.3 million in cash plus the assumption of certain liabilities. The Company paid $2.3 million of the purchase price in cash at closing and paid the remaining $33.0 million in May 2021. The payment obligation was discounted to present value and recognized as an accrued acquisition liability of $32.7 million as of December 31, 2020 in the Company's condensed consolidated balance sheet. Interest expense of $0.3 million was recorded in the nine months ended September 30, 2021. P ayment was guaranteed under the Purchase Agreement, and included the issuance of a $33.0 million irrevocable standby letter of credit. The letter of credit was released upon payment of the acquisition liability in May 2021. The purchase price of the acquisition was allocated to the fair value of Partsmaster’s assets and liabilities on the acquisition date. The fair market value appraisals of the majority of the assets and liabilities was determined by a third party valuation firm using management estimates and assumptions including intangible assets of $5.0 million for customer relationships and $2.8 million for trade names, and their estimated useful lives of 10 and 5 years, respectively. The $15.8 million allocated to goodwill reflects the purchase price less the fair market value of the identifiable net assets. The goodwill is attributable to the workforce of the acquired business and the synergies expected to arise after Lawson's acquisition of Partsmaster. The entire amount of goodwill is expected to be deductible for tax purposes. The accounting for this acquisition was complete as of June 30, 2021 . Partsmaster contributed $13.6 million of revenue and an operating loss of $0.8 million in the third quarter of 2021 and $44.6 million of revenue and $0.4 million of operating income in the first nine months of 2021, compared to $5.4 million of revenue and $0.4 million of operating income in the third quarter 2020 post acquisition. A summary of the purchase price allocation of the acquisition is as follows (Dollars in thousands): Cash paid and payable and liabilities assumed Cash paid $ 34,523 Accounts payable and accrued expenses 4,086 Deferred compensation 2,938 Lease obligation 620 $ 42,167 Fair value of assets acquired Goodwill $ 15,816 Inventories 7,797 Accounts receivable 7,706 Customer relationships 4,961 Trade names 2,775 Property, plant and equipment 2,121 Right of use asset 620 Other assets 371 $ 42,167 The unaudited pro forma revenue and net income for the Company for the three months ended September 30, 2020, assuming the Partsmaster acquisition closed on January 1, 2019, was $101.2 million and $2.0 million , respectively. The unaudited pro forma revenue and net income for the Company for the nine months ended September 30, 2020 , assuming the Partsmaster acquisition closed on January 1, 2019, was $298.5 million and $16.3 million, respectively. The pro forma disclosures include adjustments for amortization of intangible assets, implied interest expense and acquisition costs to reflect results as if the acquisition of Partsmaster had closed on January 1, 2019 rather than on the actual |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2021 | |
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. Under the definition of a contract as defined by Accounting Standards Codification 606, Revenue From Contracts With Customers ("ASC 606"), the Company considers contracts to be created at the time an order to purchase product and services is agreed upon regardless of whether or not there is a written contract. Performance Obligations The Company has two operating segments; the Lawson segment and the Bolt Supply segment. The Lawson segment has two distinct performance obligations from contracts with its customers: a product performance obligation and a service performance obligation. While the Company offers both a product and a service obligation, customers receive one invoice per transaction with no price breakout between these obligations. The Company does not separately price performance obligations. The Lawson segment generates revenue primarily from the sale of MRO products to its customers. Revenues 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, including the recent Partsmaster acquisition, 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 provides product sales and does not provide VMI services or other services. 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 with the customer. Disaggregated revenue by geographic area follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 United States $ 85,343 $ 72,030 $ 256,577 $ 202,709 Canada 20,227 18,247 59,089 50,749 Consolidated total $ 105,570 $ 90,277 $ 315,666 $ 253,458 Disaggregated revenue by product type follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Fastening Systems 22.2 % 22.3 % 21.4 % 22.7 % Cutting Tools and Abrasives 15.0 % 12.2 % 14.8 % 13.1 % Fluid Power 13.0 % 12.6 % 13.2 % 13.2 % Specialty Chemicals 10.5 % 13.3 % 10.1 % 11.7 % Electrical 10.4 % 10.0 % 10.4 % 10.2 % Aftermarket Automotive Supplies 7.6 % 7.0 % 7.2 % 7.1 % Safety 5.1 % 7.0 % 5.0 % 6.4 % Welding and Metal Repair 1.4 % 1.4 % 1.6 % 1.4 % Other 14.8 % 14.2 % 16.3 % 14.2 % Consolidated Total 100.0% 100.0% 100.0% 100.0% Activities as lessor Prior to acquisition, Partsmaster leased parts washer machines to customers through its Torrents leasing program. The Torrents leasing program comprised a minor portion of the Partsmaster business. The Company will continue the leasing program for the foreseeable future. These leases are classified as operating leases. The leased machines are recognized as fixed assets on the Company's consolidated balance sheet and the leasing revenue is recognized on a straight line basis over the leasing term. The Torrents machine leasing program generated $0.8 million and $2.2 million of revenue in the three and nine months ended September 30, 2021. The carrying value of the Torrents leasing assets as of September 30, 2021 is $1.0 million. The Company has adopted the practical expedient not to separate non-lease components that would be within the scope of ASC 606 from the associated lease components as the relevant criteria under ASC 842 are met. |
Restricted Cash
Restricted Cash | 9 Months Ended |
Sep. 30, 2021 | |
Restricted Cash [Abstract] | |
Restricted Cash | Restricted CashThe Company has agreed to maintain $0.2 million in a guaranteed investment certificate as collateral for an outside party that is providing certain commercial credit card services for Bolt. The Company is restricted from withdrawing this balance without the prior consent of the outside party during the term of the agreement. The Company previously agreed to maintain $0.8 million in a money market account as collateral for an outside party that provided certain commercial card processing services for the Company, however this agreement ended in the third quarter 2021 and the $0.8 million is now unrestricted. |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net, consisting primarily of purchased goods offered for resale, were as follows: (Dollars in thousands) September 30, 2021 December 31, 2020 Inventories, gross $ 75,632 $ 67,137 Reserve for obsolete and excess inventory (8,180) (5,270) Inventories, net $ 67,452 $ 61,867 During the nine months ended September 30, 2021, the Company increased its reserve for obsolete and excess inventory by $0.9 million for which its cost exceeded its estimated selling price and $1.0 million |
Goodwill Goodwill
Goodwill Goodwill | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill activity for the first nine months of 2021 is included in the table below: (Dollars in Thousands) Goodwill By Reportable Segment Lawson Bolt Total Beginning balance December 31, 2020 $ 21,352 $ 13,824 $ 35,176 Impact of foreign exchange rates 18 59 77 Balance at September 30, 2021 $ 21,370 $ 13,883 $ 35,253 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible Assets The gross carrying amount and accumulated amortization by intangible asset class were as follows: (Dollars in thousands) September 30, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade names $ 11,364 $ (3,593) $ 7,771 $ 11,289 $ (2,733) $ 8,556 Customer relationships 12,410 (3,385) 9,025 12,349 (2,402) 9,947 $ 23,774 $ (6,978) $ 16,796 $ 23,638 $ (5,135) $ 18,503 Amortization expense of $0.6 million and $0.4 million related to intangible assets was recorded in General and administrative expense for the three months ended September 30, 2021 and 2020, respectively. Amortization expense of $1.8 million |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases Activities as Lessee The Company leases equipment, distribution centers, office space, and branch locations throughout the US and Canada. Expenses related to leasing activities for the three months ended September 30, 2021 and September 30, 2020 are as follows (Dollars in thousands): Three Months Ended September 30, Lease Type Classification 2021 2020 Operating Lease Expense Operating expenses $ 1,500 $ 1,262 Financing Lease Amortization Operating expenses 44 $ 63 Financing Lease Interest Interest expense 2 8 Financing Lease Expense 46 71 Net Lease Cost $ 1,546 $ 1,333 Expenses related to leasing activities for the nine months ended September 30, 2021 and September 30, 2020 are as follows (Dollars in thousands): Nine Months Ended September 30, Lease Type Classification 2021 2020 Operating Lease Expense Operating expenses $ 4,429 $ 3,630 Financing Lease Amortization Operating expenses 179 $ 165 Financing Lease Interest Interest expense 12 22 Financing Lease Expense 191 187 Net Lease Cost $ 4,620 $ 3,817 Net assets and liabilities related to leasing activities as of September 30, 2021 and December 31, 2020 are as follows (Dollars in thousands): Lease Type September 30, 2021 December 31, Total Right Of Use ("ROU") operating lease assets (1) $ 12,292 $ 8,246 Total ROU financing lease assets (2) 410 518 Total lease assets $ 12,702 $ 8,764 Total current operating lease obligation $ 4,187 $ 4,360 Total current financing lease obligation 161 208 Total current lease obligations $ 4,348 $ 4,568 Total long term operating lease obligation $ 9,587 $ 5,498 Total long term financing lease obligation 157 240 Total long term lease obligation $ 9,744 $ 5,738 (1) Operating lease assets are recorded net of accumulated amortization of $8.7 million and $5.9 million as of September 30, 2021 and December 31, 2020, respectively (2) Financing lease assets are recorded net of accumulated amortization of $0.6 million and $0.4 million as of September 30, 2021 and December 31, 2020, respectively Liabilities generated by leasing activities as of September 30, 2021 were as follows (Dollars in thousands): Maturity Date of Lease Liabilities Operating Leases Financing Leases Total Year one $ 4,535 $ 166 $ 4,701 Year two 3,841 114 3,955 Year three 2,865 39 2,904 Year four 1,870 14 1,884 Year five 345 — 345 Subsequent years 1,265 — 1,265 Total lease payments 14,721 333 15,054 Less: Interest 947 15 962 Present value of lease liabilities $ 13,774 $ 318 $ 14,092 (1) Minimum lease payments exclude payments to landlord for real estate taxes and common area maintenance $0.6 million The weighted average lease terms and interest rates of the leases held by Lawson as of September 30, 2021 are as follows: Lease Type Weighted Average Term in Years Weighted Average Interest Rate Operating Leases 4.0 3.53% Financing Leases 2.2 4.99% The cash outflows of the leasing activity for the three months ending September 30, 2021 are as follows (Dollars in thousands): Cash Flow Source Classification Amount Operating cash flows from operating leases Operating activities $ 3,549 Operating cash flows from financing leases Operating activities 12 Financing cash flows from financing leases Financing activities 179 In March 2021 the Company signed a three year extension for their lease at the McCook distribution center ("McCook"). The lease extension created a right of use asset of $5.3 million and a lease liability of $5.3 million. Refer to Note 3 - Revenue Recognition for a discussion on Lawson activities as lessor. |
Leases | Leases Activities as Lessee The Company leases equipment, distribution centers, office space, and branch locations throughout the US and Canada. Expenses related to leasing activities for the three months ended September 30, 2021 and September 30, 2020 are as follows (Dollars in thousands): Three Months Ended September 30, Lease Type Classification 2021 2020 Operating Lease Expense Operating expenses $ 1,500 $ 1,262 Financing Lease Amortization Operating expenses 44 $ 63 Financing Lease Interest Interest expense 2 8 Financing Lease Expense 46 71 Net Lease Cost $ 1,546 $ 1,333 Expenses related to leasing activities for the nine months ended September 30, 2021 and September 30, 2020 are as follows (Dollars in thousands): Nine Months Ended September 30, Lease Type Classification 2021 2020 Operating Lease Expense Operating expenses $ 4,429 $ 3,630 Financing Lease Amortization Operating expenses 179 $ 165 Financing Lease Interest Interest expense 12 22 Financing Lease Expense 191 187 Net Lease Cost $ 4,620 $ 3,817 Net assets and liabilities related to leasing activities as of September 30, 2021 and December 31, 2020 are as follows (Dollars in thousands): Lease Type September 30, 2021 December 31, Total Right Of Use ("ROU") operating lease assets (1) $ 12,292 $ 8,246 Total ROU financing lease assets (2) 410 518 Total lease assets $ 12,702 $ 8,764 Total current operating lease obligation $ 4,187 $ 4,360 Total current financing lease obligation 161 208 Total current lease obligations $ 4,348 $ 4,568 Total long term operating lease obligation $ 9,587 $ 5,498 Total long term financing lease obligation 157 240 Total long term lease obligation $ 9,744 $ 5,738 (1) Operating lease assets are recorded net of accumulated amortization of $8.7 million and $5.9 million as of September 30, 2021 and December 31, 2020, respectively (2) Financing lease assets are recorded net of accumulated amortization of $0.6 million and $0.4 million as of September 30, 2021 and December 31, 2020, respectively Liabilities generated by leasing activities as of September 30, 2021 were as follows (Dollars in thousands): Maturity Date of Lease Liabilities Operating Leases Financing Leases Total Year one $ 4,535 $ 166 $ 4,701 Year two 3,841 114 3,955 Year three 2,865 39 2,904 Year four 1,870 14 1,884 Year five 345 — 345 Subsequent years 1,265 — 1,265 Total lease payments 14,721 333 15,054 Less: Interest 947 15 962 Present value of lease liabilities $ 13,774 $ 318 $ 14,092 (1) Minimum lease payments exclude payments to landlord for real estate taxes and common area maintenance $0.6 million The weighted average lease terms and interest rates of the leases held by Lawson as of September 30, 2021 are as follows: Lease Type Weighted Average Term in Years Weighted Average Interest Rate Operating Leases 4.0 3.53% Financing Leases 2.2 4.99% The cash outflows of the leasing activity for the three months ending September 30, 2021 are as follows (Dollars in thousands): Cash Flow Source Classification Amount Operating cash flows from operating leases Operating activities $ 3,549 Operating cash flows from financing leases Operating activities 12 Financing cash flows from financing leases Financing activities 179 In March 2021 the Company signed a three year extension for their lease at the McCook distribution center ("McCook"). The lease extension created a right of use asset of $5.3 million and a lease liability of $5.3 million. Refer to Note 3 - Revenue Recognition for a discussion on Lawson activities as lessor. |
Leases | Leases Activities as Lessee The Company leases equipment, distribution centers, office space, and branch locations throughout the US and Canada. Expenses related to leasing activities for the three months ended September 30, 2021 and September 30, 2020 are as follows (Dollars in thousands): Three Months Ended September 30, Lease Type Classification 2021 2020 Operating Lease Expense Operating expenses $ 1,500 $ 1,262 Financing Lease Amortization Operating expenses 44 $ 63 Financing Lease Interest Interest expense 2 8 Financing Lease Expense 46 71 Net Lease Cost $ 1,546 $ 1,333 Expenses related to leasing activities for the nine months ended September 30, 2021 and September 30, 2020 are as follows (Dollars in thousands): Nine Months Ended September 30, Lease Type Classification 2021 2020 Operating Lease Expense Operating expenses $ 4,429 $ 3,630 Financing Lease Amortization Operating expenses 179 $ 165 Financing Lease Interest Interest expense 12 22 Financing Lease Expense 191 187 Net Lease Cost $ 4,620 $ 3,817 Net assets and liabilities related to leasing activities as of September 30, 2021 and December 31, 2020 are as follows (Dollars in thousands): Lease Type September 30, 2021 December 31, Total Right Of Use ("ROU") operating lease assets (1) $ 12,292 $ 8,246 Total ROU financing lease assets (2) 410 518 Total lease assets $ 12,702 $ 8,764 Total current operating lease obligation $ 4,187 $ 4,360 Total current financing lease obligation 161 208 Total current lease obligations $ 4,348 $ 4,568 Total long term operating lease obligation $ 9,587 $ 5,498 Total long term financing lease obligation 157 240 Total long term lease obligation $ 9,744 $ 5,738 (1) Operating lease assets are recorded net of accumulated amortization of $8.7 million and $5.9 million as of September 30, 2021 and December 31, 2020, respectively (2) Financing lease assets are recorded net of accumulated amortization of $0.6 million and $0.4 million as of September 30, 2021 and December 31, 2020, respectively Liabilities generated by leasing activities as of September 30, 2021 were as follows (Dollars in thousands): Maturity Date of Lease Liabilities Operating Leases Financing Leases Total Year one $ 4,535 $ 166 $ 4,701 Year two 3,841 114 3,955 Year three 2,865 39 2,904 Year four 1,870 14 1,884 Year five 345 — 345 Subsequent years 1,265 — 1,265 Total lease payments 14,721 333 15,054 Less: Interest 947 15 962 Present value of lease liabilities $ 13,774 $ 318 $ 14,092 (1) Minimum lease payments exclude payments to landlord for real estate taxes and common area maintenance $0.6 million The weighted average lease terms and interest rates of the leases held by Lawson as of September 30, 2021 are as follows: Lease Type Weighted Average Term in Years Weighted Average Interest Rate Operating Leases 4.0 3.53% Financing Leases 2.2 4.99% The cash outflows of the leasing activity for the three months ending September 30, 2021 are as follows (Dollars in thousands): Cash Flow Source Classification Amount Operating cash flows from operating leases Operating activities $ 3,549 Operating cash flows from financing leases Operating activities 12 Financing cash flows from financing leases Financing activities 179 In March 2021 the Company signed a three year extension for their lease at the McCook distribution center ("McCook"). The lease extension created a right of use asset of $5.3 million and a lease liability of $5.3 million. Refer to Note 3 - Revenue Recognition for a discussion on Lawson activities as lessor. |
Revolving Credit Facility
Revolving Credit Facility | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | Revolving Credit Facility The Revolving Credit Facility matures on October 11, 2024 and provides $100.0 million of revolving commitments. Net of outstanding letters of credit, the Company had $87.4 million of borrowing availability under the Revolving Credit Facility as of September 30, 2021 and $66.0 million as of December 31, 2020. Weighted average interest rates for the nine months ended September 30, 2021 and September 30, 2020 were 2.88% and 2.64%, respectively. Fees are reported as interest expense and include customary charges relating to letters of credit and an unused commitment fee ranging from 0.15% to 0.30%, depending on the Total Net Leverage Ratio as defined in the Credit Agreement. Fees for both the nine months ended September 30, 2021 and September 30, 2020 were $0.1 million governing the Revolving Credit Facility. In connection with the Revolving Credit Facility originated in 2019, deferred financing costs of $0.6 million were incurred. Deferred financing costs are amortized over the life of the debt instrument and reported as interest e xpense. As of September 30, 2021 and December 31, 2020 deferred financing costs net of accumulated amortization were $0.3 million and $0.4 million, respectively, and are included in Other assets. Borrowings are designed as alternate base rate loans, Canadian prime rate loans, Eurodollar loans, and Canadian dollar offered rate loans. Interest rates vary by the type of borrowing and Total Net Leverage Ratio as defined in the Credit Agreement of the most recent fiscal quarter. The Revolving Credit Facility includes customary financial covenants representations and warranties. The Company was in compliance with all financial covenants as of September 30, 2021. |
Accrued Acquisition Liability
Accrued Acquisition Liability | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Accrued Acquisition Liability | Accrued Acquisition Liability On August 31, 2020, Lawson acquired Partsmaster from NCH Corporation. As part of the purchase price, the Company agreed to pay $33.0 million in May 2021. The payment obligation was discounted to present value using an implied interest rate of 1.8%. A discounted current liability of $32.7 million was recognized as of December 31, 2020 in the Company's consolidated balance sheet. In May 2021, the Company paid the outstanding $33.0 million accrued acquisition liability. Payment was guaranteed under the Purchase Agreement which included the issuance of a $33.0 million irrevocable standby letter of credit. The letter of credit was released in June 2021 subsequent to payment of the liability in May 2021. Interest expense of $0.3 million |
Stock Repurchase Program
Stock Repurchase Program | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure of Repurchase Agreements [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. The Company had $4.5 million remaining under its repurchase plan as of September 30, 2021. No shares were repurchased in 2021 under the Company stock repurchase plan. The Company purchased 47,504 of common stock at an average price of $36.93 under the repurchase program in the first quarter of 2020. |
Severance Reserve
Severance Reserve | 9 Months Ended |
Sep. 30, 2021 | |
Severance Reserve [Abstract] | |
Severance Reserve | Severance Reserve Changes in the Company’s reserve for severance included in Accrued expenses and other liabilities, as of September 30, 2021 and 2020 were as follows: (Dollars in thousands) Nine Months Ended September 30, 2021 2020 Balance at beginning of period $ 1,251 $ 909 Charged to earnings 328 1,520 Payments (1,085) (1,239) Balance at end of period $ 494 $ 1,190 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company recorded stock-based compensation benefit of $1.2 million and expense of $4.7 million for the three months ending September 30, 2021 and 2020, respectively, and expense of $1.4 million and benefit of $2.8 million for the nine months ending September 30, 2021 and 2020, 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 lia bility of $14.0 million as of September 30, 2021 and $14.4 million as of December 31, 2020 is included in Accrued expenses and other liabilities. A summary of stock-based awards issued during the nine months ended September 30, 2021 follows: Restricted Stock Units ("RSUs") The Company i ssued 7,862 RSUs to key employees that cliff vest on December 31, 2023. The Company issued 2,000 RSUs to one key employee that vest ratably through June 15, 2023 and 5,000 RSUs to one key employee that cliff vest on April 15, 2024. Additionally the Company issued 28,600 RSUs to various employees that vest ratably through May 16, 2024. The Company issued 6,995 RSUs to certain members of the Company's Board of Directors with a vesting date of May 11, 2022. 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 19,688 MSUs to key employees that cliff vest on December 31, 2023. 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 29,532 shares, will be determined based upon the trailing sixty-day average closing price of the Company's common stock on December 31, 2023. Performance Awards ("PAs") The Company issued 15,723 PAs to key employees that cliff vest on December 31, 2023. PAs are exchangeable for shares of the Company's common stock ranging from zero to 23,585 shares, or the equivalent amount in cash, based upon the achievement of certain financial performance metrics. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded income tax expense of $2.7 million, a 21.1% effective tax rate for the nine months ended September 30, 2021. The effective tax rate approximates the U.S. statutory tax rate as state taxes and other permanent items are offset by the reversal of uncertain tax positions. Income tax expense of $6.0 million, a 28.7% effective tax rate was recorded for the nine months ended September 30, 2020. The effective tax rate is higher than the U.S. statutory rate due primarily to state taxes, recording of reserves for uncertain tax positions, 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 September 30, 2021, the Company is subject to U.S. Federal income tax examinations for the years 2017 through 2019 and income tax examinations from various other jurisdictions for the years 2014 through 2019. |
Contingent Liabilities
Contingent Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | Contingent Liabilities In 2012, it was determined a Company owned site in Decatur, Alabama, contained 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, prepare a remediation plan, and enroll the site in the Alabama Department of Environmental Management (“ADEM") voluntary cleanup program. The remediation plan, approved by ADEM in 2018, consists of chemical injections throughout the affected area and subsequent monitoring. The injection process was completed in the first quarter of 2019 and monitoring is ongoing pending certification by ADEM. At September 30, 2021 estimated costs for future monitoring are not significant and have been fully accrued. The Company does not expect to capitalize any amounts related to the remediation plan. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's operating segments, Lawson and Bolt, also represent its reportable segments because of differences in the businesses' financial characteristics and the methods they employ to deliver product to customers. The results of the Company's 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' location and produce sales orders for product that is then shipped to the customer and it also provides VMI services. The Bolt segment primarily sells product to customers when the customers visit one of Bolt's 14 b ranch locations and the product is delivered to the customers at the point of sale. The Bolt segment total assets include the value of the acquired intangibles and the related amortization within its operating income. Financial information for the Company's reportable segments follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Revenue Lawson $ 93,686 $ 79,806 $ 281,877 $ 224,511 Bolt Supply 11,884 10,471 33,789 28,947 Consolidated total $ 105,570 $ 90,277 $ 315,666 $ 253,458 Gross profit Lawson $ 51,127 $ 43,038 $ 151,436 $ 123,031 Bolt Supply 4,919 4,187 13,790 11,428 Consolidated total $ 56,046 $ 47,225 $ 165,226 $ 134,459 Operating income Lawson $ 3,488 $ 1,112 $ 10,188 $ 19,003 Bolt Supply 1,132 889 2,624 2,205 Consolidated total 4,620 2,001 12,812 21,208 Interest expense (119) (142) (710) (329) Other income (expense), net (209) 615 802 15 Income before income taxes $ 4,292 $ 2,474 $ 12,904 $ 20,894 |
COVID-19 Risks and Uncertaintie
COVID-19 Risks and Uncertainties | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
COVID-19 Risks and Uncertainties | COVID-19 Risks and Uncertainties There is substantial uncertainty as to the effect the COVID-19 pandemic will have on the future results of the Company. Various events related to COVID-19 may impact revenue, product sourcing, sales functions, and customers' ability to pay timely. The government of the State of Illinois defines Lawson Products as an essential business. A change in this status could result in the temporary closure of our business if the COVID-19 pandemic worsens, and government restrictions are reimposed to require business shutdowns. The COVID-19 pandemic could result in a temporary closure of any or all of our office space, distribution facilities, or Bolt branch locations, as well as disruptions to our supply chain and interactions with our suppliers and customers. The pandemic may have a material adverse impact on future financial results, liquidity, and overall performance of the Company. It is reasonably possible that estimates made in the financial statements may be materially and adversely impacted 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. 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 total amount deferred is $3.5 million, with $1.7 million expected to be paid in the fourth quarter of 2021 and the remainder in 2022. The Company will continue to evaluate how the provisions of the CARES Act will impact its financial position, results of operations and cash flows. |
Related Party Transaction
Related Party Transaction | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | Related Party TransactionDuring the nine months ended September 30, 2021, the Company purchased approximately $0.1 million of inventory from a company owned by an immediate relative of a Board member at fair market value. No remaining liabilities exist with respect to this purchase as of September 30, 2021. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
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. Under the definition of a contract as defined by Accounting Standards Codification 606, Revenue From Contracts With Customers ("ASC 606"), the Company considers contracts to be created at the time an order to purchase product and services is agreed upon regardless of whether or not there is a written contract. Performance Obligations The Company has two operating segments; the Lawson segment and the Bolt Supply segment. The Lawson segment has two distinct performance obligations from contracts with its customers: a product performance obligation and a service performance obligation. While the Company offers both a product and a service obligation, customers receive one invoice per transaction with no price breakout between these obligations. The Company does not separately price performance obligations. The Lawson segment generates revenue primarily from the sale of MRO products to its customers. Revenues 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, including the recent Partsmaster acquisition, 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. |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | A summary of the purchase price allocation of the acquisition is as follows (Dollars in thousands): Cash paid and payable and liabilities assumed Cash paid $ 34,523 Accounts payable and accrued expenses 4,086 Deferred compensation 2,938 Lease obligation 620 $ 42,167 Fair value of assets acquired Goodwill $ 15,816 Inventories 7,797 Accounts receivable 7,706 Customer relationships 4,961 Trade names 2,775 Property, plant and equipment 2,121 Right of use asset 620 Other assets 371 $ 42,167 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Deferred Revenue Disclosure [Abstract] | |
Disaggregation of Revenue | Disaggregated revenue by geographic area follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 United States $ 85,343 $ 72,030 $ 256,577 $ 202,709 Canada 20,227 18,247 59,089 50,749 Consolidated total $ 105,570 $ 90,277 $ 315,666 $ 253,458 Disaggregated revenue by product type follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Fastening Systems 22.2 % 22.3 % 21.4 % 22.7 % Cutting Tools and Abrasives 15.0 % 12.2 % 14.8 % 13.1 % Fluid Power 13.0 % 12.6 % 13.2 % 13.2 % Specialty Chemicals 10.5 % 13.3 % 10.1 % 11.7 % Electrical 10.4 % 10.0 % 10.4 % 10.2 % Aftermarket Automotive Supplies 7.6 % 7.0 % 7.2 % 7.1 % Safety 5.1 % 7.0 % 5.0 % 6.4 % Welding and Metal Repair 1.4 % 1.4 % 1.6 % 1.4 % Other 14.8 % 14.2 % 16.3 % 14.2 % Consolidated Total 100.0% 100.0% 100.0% 100.0% |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories, net, consisting primarily of purchased goods offered for resale, were as follows: (Dollars in thousands) September 30, 2021 December 31, 2020 Inventories, gross $ 75,632 $ 67,137 Reserve for obsolete and excess inventory (8,180) (5,270) Inventories, net $ 67,452 $ 61,867 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill activity for the first nine months of 2021 is included in the table below: (Dollars in Thousands) Goodwill By Reportable Segment Lawson Bolt Total Beginning balance December 31, 2020 $ 21,352 $ 13,824 $ 35,176 Impact of foreign exchange rates 18 59 77 Balance at September 30, 2021 $ 21,370 $ 13,883 $ 35,253 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets Disclosure | The gross carrying amount and accumulated amortization by intangible asset class were as follows: (Dollars in thousands) September 30, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade names $ 11,364 $ (3,593) $ 7,771 $ 11,289 $ (2,733) $ 8,556 Customer relationships 12,410 (3,385) 9,025 12,349 (2,402) 9,947 $ 23,774 $ (6,978) $ 16,796 $ 23,638 $ (5,135) $ 18,503 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Net Lease Cost | Expenses related to leasing activities for the three months ended September 30, 2021 and September 30, 2020 are as follows (Dollars in thousands): Three Months Ended September 30, Lease Type Classification 2021 2020 Operating Lease Expense Operating expenses $ 1,500 $ 1,262 Financing Lease Amortization Operating expenses 44 $ 63 Financing Lease Interest Interest expense 2 8 Financing Lease Expense 46 71 Net Lease Cost $ 1,546 $ 1,333 Expenses related to leasing activities for the nine months ended September 30, 2021 and September 30, 2020 are as follows (Dollars in thousands): Nine Months Ended September 30, Lease Type Classification 2021 2020 Operating Lease Expense Operating expenses $ 4,429 $ 3,630 Financing Lease Amortization Operating expenses 179 $ 165 Financing Lease Interest Interest expense 12 22 Financing Lease Expense 191 187 Net Lease Cost $ 4,620 $ 3,817 The weighted average lease terms and interest rates of the leases held by Lawson as of September 30, 2021 are as follows: Lease Type Weighted Average Term in Years Weighted Average Interest Rate Operating Leases 4.0 3.53% Financing Leases 2.2 4.99% The cash outflows of the leasing activity for the three months ending September 30, 2021 are as follows (Dollars in thousands): Cash Flow Source Classification Amount Operating cash flows from operating leases Operating activities $ 3,549 Operating cash flows from financing leases Operating activities 12 Financing cash flows from financing leases Financing activities 179 |
Operating Lease Assets and Liabilities | Net assets and liabilities related to leasing activities as of September 30, 2021 and December 31, 2020 are as follows (Dollars in thousands): Lease Type September 30, 2021 December 31, Total Right Of Use ("ROU") operating lease assets (1) $ 12,292 $ 8,246 Total ROU financing lease assets (2) 410 518 Total lease assets $ 12,702 $ 8,764 Total current operating lease obligation $ 4,187 $ 4,360 Total current financing lease obligation 161 208 Total current lease obligations $ 4,348 $ 4,568 Total long term operating lease obligation $ 9,587 $ 5,498 Total long term financing lease obligation 157 240 Total long term lease obligation $ 9,744 $ 5,738 (1) Operating lease assets are recorded net of accumulated amortization of $8.7 million and $5.9 million as of September 30, 2021 and December 31, 2020, respectively (2) Financing lease assets are recorded net of accumulated amortization of $0.6 million and $0.4 million as of September 30, 2021 and December 31, 2020, respectively |
Value of Operating Lease Liabilities Generated by Leasing Activities | Liabilities generated by leasing activities as of September 30, 2021 were as follows (Dollars in thousands): Maturity Date of Lease Liabilities Operating Leases Financing Leases Total Year one $ 4,535 $ 166 $ 4,701 Year two 3,841 114 3,955 Year three 2,865 39 2,904 Year four 1,870 14 1,884 Year five 345 — 345 Subsequent years 1,265 — 1,265 Total lease payments 14,721 333 15,054 Less: Interest 947 15 962 Present value of lease liabilities $ 13,774 $ 318 $ 14,092 (1) Minimum lease payments exclude payments to landlord for real estate taxes and common area maintenance $0.6 million |
Value of Finance Lease Liabilities Generated by Leasing Activities | Liabilities generated by leasing activities as of September 30, 2021 were as follows (Dollars in thousands): Maturity Date of Lease Liabilities Operating Leases Financing Leases Total Year one $ 4,535 $ 166 $ 4,701 Year two 3,841 114 3,955 Year three 2,865 39 2,904 Year four 1,870 14 1,884 Year five 345 — 345 Subsequent years 1,265 — 1,265 Total lease payments 14,721 333 15,054 Less: Interest 947 15 962 Present value of lease liabilities $ 13,774 $ 318 $ 14,092 (1) Minimum lease payments exclude payments to landlord for real estate taxes and common area maintenance $0.6 million |
Severance Reserve (Tables)
Severance Reserve (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Severance Reserve [Abstract] | |
Changes in the Company's Reserve for Severance | Changes in the Company’s reserve for severance included in Accrued expenses and other liabilities, as of September 30, 2021 and 2020 were as follows: (Dollars in thousands) Nine Months Ended September 30, 2021 2020 Balance at beginning of period $ 1,251 $ 909 Charged to earnings 328 1,520 Payments (1,085) (1,239) Balance at end of period $ 494 $ 1,190 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information for the Company's reportable segments follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Revenue Lawson $ 93,686 $ 79,806 $ 281,877 $ 224,511 Bolt Supply 11,884 10,471 33,789 28,947 Consolidated total $ 105,570 $ 90,277 $ 315,666 $ 253,458 Gross profit Lawson $ 51,127 $ 43,038 $ 151,436 $ 123,031 Bolt Supply 4,919 4,187 13,790 11,428 Consolidated total $ 56,046 $ 47,225 $ 165,226 $ 134,459 Operating income Lawson $ 3,488 $ 1,112 $ 10,188 $ 19,003 Bolt Supply 1,132 889 2,624 2,205 Consolidated total 4,620 2,001 12,812 21,208 Interest expense (119) (142) (710) (329) Other income (expense), net (209) 615 802 15 Income before income taxes $ 4,292 $ 2,474 $ 12,904 $ 20,894 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) | 9 Months Ended |
Sep. 30, 2021branchsegment | |
Accounting Policies [Abstract] | |
Number of reportable segments | segment | 2 |
Number of branches | branch | 14 |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) customer in Thousands, $ in Thousands | Aug. 31, 2020USD ($)sale_representativecustomer | May 31, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | May 31, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) |
Business Acquisition [Line Items] | ||||||||
Payments for purchase | $ 33,000 | $ 2,300 | ||||||
Accrued acquisition liability | $ 0 | 0 | $ 32,673 | |||||
Interest expense | 119 | $ 142 | 710 | 329 | ||||
Goodwill | 35,253 | 35,253 | 35,176 | |||||
Partsmaster | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of customers | customer | 16 | |||||||
Number of sales representatives | sale_representative | 200 | |||||||
Payments for purchase | $ 2,300 | $ 33,000 | $ 35,300 | |||||
Accrued acquisition liability | $ 32,700 | |||||||
Interest expense | 300 | |||||||
Letter of credit | 33,000 | |||||||
Goodwill | 15,816 | |||||||
Revenue | 13,600 | 5,400 | 44,600 | |||||
Operating income since acquisition | $ 800 | 400 | $ 400 | |||||
Pro Forma revenue | 101,200 | 298,500 | ||||||
Pro Forma net income | $ 2,000 | $ 16,300 | ||||||
Partsmaster | Customer relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangibles | $ 4,961 | |||||||
Intangibles weighted average life | 10 years | |||||||
Partsmaster | Trade names | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangibles | $ 2,775 | |||||||
Intangibles weighted average life | 5 years |
Acquisition - Initial Purchase
Acquisition - Initial Purchase Price Allocation (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Aug. 31, 2020 |
Fair value of assets acquired | |||
Goodwill | $ 35,253 | $ 35,176 | |
Partsmaster | |||
Cash paid and payable and liabilities assumed | |||
Cash paid | $ 34,523 | ||
Accounts payable and accrued expenses | 4,086 | ||
Deferred compensation | 2,938 | ||
Lease obligation | 620 | ||
Cash paid and payable and liabilities assumed | 42,167 | ||
Fair value of assets acquired | |||
Goodwill | 15,816 | ||
Inventories | 7,797 | ||
Accounts receivable | 7,706 | ||
Property, plant and equipment | 2,121 | ||
Right of use asset | 620 | ||
Other assets | 371 | ||
Fair value of assets acquired | 42,167 | ||
Partsmaster | Customer relationships | |||
Fair value of assets acquired | |||
Intangibles | 4,961 | ||
Partsmaster | Trade names | |||
Fair value of assets acquired | |||
Intangibles | $ 2,775 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021USD ($)revenueStream | Sep. 30, 2021USD ($)segmentrevenueStream | |
Revenue from Contract with Customer [Abstract] | ||
Number of revenue streams | revenueStream | 2 | 2 |
Number of operating segments | segment | 2 | |
Operating lease revenue | $ 0.8 | $ 2.2 |
Carrying value | $ 1 | $ 1 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 105,570 | $ 90,277 | $ 315,666 | $ 253,458 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 85,343 | 72,030 | 256,577 | 202,709 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 20,227 | $ 18,247 | $ 59,089 | $ 50,749 |
Revenue Recognition - Product T
Revenue Recognition - Product Type (Details) - Product Concentration Risk - Revenue from Contract with Customer Benchmark | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Concentration risk (as a percent) | 100.00% | 100.00% | 100.00% | 100.00% |
Fastening Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk (as a percent) | 22.20% | 22.30% | 21.40% | 22.70% |
Cutting Tools and Abrasives | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk (as a percent) | 15.00% | 12.20% | 14.80% | 13.10% |
Fluid Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk (as a percent) | 13.00% | 12.60% | 13.20% | 13.20% |
Specialty Chemicals | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk (as a percent) | 10.50% | 13.30% | 10.10% | 11.70% |
Electrical | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk (as a percent) | 10.40% | 10.00% | 10.40% | 10.20% |
Aftermarket Automotive Supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk (as a percent) | 7.60% | 7.00% | 7.20% | 7.10% |
Safety | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk (as a percent) | 5.10% | 7.00% | 5.00% | 6.40% |
Welding and Metal Repair | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk (as a percent) | 1.40% | 1.40% | 1.60% | 1.40% |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk (as a percent) | 14.80% | 14.20% | 16.30% | 14.20% |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 197 | $ 998 | $ 802 |
Guaranteed Investment Certificate | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | 200 | ||
Money Market Funds | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 800 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Components of inventories | ||
Inventories, gross | $ 75,632 | $ 67,137 |
Reserve for obsolete and excess inventory | (8,180) | (5,270) |
Inventories, net | $ 67,452 | $ 61,867 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Inventory [Line Items] | |
Rationalization of inventory | $ 0.9 |
Partsmaster | |
Inventory [Line Items] | |
Rationalization of inventory | $ 1 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 35,176 |
Impact of foreign exchange rates | 77 |
Goodwill, ending balance | 35,253 |
Lawson | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 21,352 |
Impact of foreign exchange rates | 18 |
Goodwill, ending balance | 21,370 |
Bolt | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 13,824 |
Impact of foreign exchange rates | 59 |
Goodwill, ending balance | $ 13,883 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 23,774 | $ 23,774 | $ 23,638 | ||
Accumulated Amortization | (6,978) | (6,978) | (5,135) | ||
Net Carrying Value | 16,796 | 16,796 | 18,503 | ||
Amortization of Intangible Assets | 600 | $ 400 | 1,800 | $ 1,100 | |
Trade names | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 11,364 | 11,364 | 11,289 | ||
Accumulated Amortization | (3,593) | (3,593) | (2,733) | ||
Net Carrying Value | 7,771 | 7,771 | 8,556 | ||
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 12,410 | 12,410 | 12,349 | ||
Accumulated Amortization | (3,385) | (3,385) | (2,402) | ||
Net Carrying Value | $ 9,025 | $ 9,025 | $ 9,947 |
Leases - Net Lease Cost (Detail
Leases - Net Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||||
Operating Lease Expense | $ 1,500 | $ 1,262 | $ 4,429 | $ 3,630 |
Financing Lease Amortization | 44 | 63 | 179 | 165 |
Financing Lease Interest | 2 | 8 | 12 | 22 |
Financing Lease Expense | 46 | 71 | 191 | 187 |
Net Lease Cost | $ 1,546 | $ 1,333 | $ 4,620 | $ 3,817 |
Leases - Net Lease Assets and L
Leases - Net Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Total Right Of Use ("ROU") operating lease assets | $ 12,292 | $ 8,246 |
Total ROU financing lease assets | 410 | 518 |
Total lease assets | 12,702 | 8,764 |
Total current operating lease obligation | 4,187 | 4,360 |
Total current financing lease obligation | 161 | 208 |
Total current lease obligations | 4,348 | 4,568 |
Total long term operating lease obligation | 9,587 | 5,498 |
Total long term financing lease obligation | 157 | 240 |
Total long term lease obligation | 9,744 | 5,738 |
Operating lease accumulated depreciation | 8,700 | 5,900 |
Finance lease accumulated amortization | $ 600 | $ 400 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total current lease obligations | Total current lease obligations |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total current lease obligations | Total current lease obligations |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total long term lease obligation | Total long term lease obligation |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total long term lease obligation | Total long term lease obligation |
Leases - Value of Lease Liabili
Leases - Value of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Year one | $ 4,535 | |
Year two | 3,841 | |
Year three | 2,865 | |
Year four | 1,870 | |
Year five | 345 | |
Subsequent years | 1,265 | |
Total lease payments | 14,721 | |
Less: Interest | 947 | |
Present value of lease liabilities | 13,774 | |
Financing Leases | ||
Year one | 166 | |
Year two | 114 | |
Year three | 39 | |
Year four | 14 | |
Year five | 0 | |
Subsequent years | 0 | |
Total lease payments | 333 | $ 600 |
Less: Interest | 15 | |
Present value of lease liabilities | 318 | |
Total | ||
Year one | 4,701 | |
Year two | 3,955 | |
Year three | 2,904 | |
Year four | 1,884 | |
Year five | 345 | |
Subsequent years | 1,265 | |
Total lease payments | 15,054 | |
Less: Interest | 962 | |
Present value of lease liabilities | $ 14,092 |
Leases - Leases Weighted-Averag
Leases - Leases Weighted-Average Lease Terms and Interest Rates (Details) | Sep. 30, 2021 |
Leases [Abstract] | |
Operating Leases, Weighted Average Term in Years | 4 years |
Operating Leases, Weighted Average Interest Rate | 3.53% |
Finance Leases, Weighted Average Term in Years | 2 years 2 months 12 days |
Finance Leases, Weighted Average Interest Rate | 4.99% |
Leases - Cash Outflows of the L
Leases - Cash Outflows of the Leasing Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 3,549 | ||
Operating cash flows from financing leases | 12 | ||
Financing cash flows from financing leases | $ 179 | $ 179 | $ 192 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | |||
Renewal term (in years) | 3 years | ||
Right of use asset | $ 12,292 | $ 8,246 | |
Lease liability | $ 13,774 | ||
McCook | |||
Lessee, Lease, Description [Line Items] | |||
Right of use asset | $ 5,300 | ||
Lease liability | $ 5,300 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) - Line of Credit - USD ($) | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Line of Credit Facility [Line Items] | |||||
Weighted average interest rate | 2.88% | 2.64% | |||
Allowable indebtedness for acquisition | $ 36,000,000 | ||||
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility, borrowing capacity | $ 100,000,000 | ||||
Line of credit facility, remaining borrowing capacity | $ 87,400,000 | 66,000,000 | |||
Commitment fee | 100,000 | 100,000 | |||
Deferred financing costs incurred | $ 600,000 | ||||
Deferred financing costs net of accumulated amortization | $ 300,000 | $ 400,000 | |||
Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Letter of credit | $ 40,000,000 | $ 15,000,000 | |||
Letter of Credit | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 0.15% | ||||
Letter of Credit | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 0.30% |
Accrued Acquisition Liability (
Accrued Acquisition Liability (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | May 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | May 31, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||||||||
Payments for purchase | $ 33,000 | $ 2,300 | ||||||
Implied interest rate | 1.80% | |||||||
Accrued acquisition liability | $ 0 | 0 | $ 32,673 | |||||
Interest expense | $ 119 | $ 142 | 710 | $ 329 | ||||
Partsmaster | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments for purchase | $ 2,300 | $ 33,000 | $ 35,300 | |||||
Accrued acquisition liability | $ 32,700 | |||||||
Interest expense | $ 300 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2019 | |
Disclosure of Repurchase Agreements [Abstract] | |||||
Stock repurchase program, authorized amount | $ 4.5 | $ 7.5 | |||
Stock repurchased (in shares) | 0 | 0 | 0 | 47,504 | |
Stock repurchased (in USD per share) | $ 36.93 |
Severance Reserve (Details)
Severance Reserve (Details) - Employee Severance - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Reserve for severance and related payments | ||
Balance at beginning of period | $ 1,251 | $ 909 |
Charged to earnings | 328 | 1,520 |
Payments | (1,085) | (1,239) |
Balance at end of period | $ 494 | $ 1,190 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |||||
Stock-based compensation benefit | $ 1.2 | ||||
Stock-based compensation expense (income) | $ 4.7 | $ 1.4 | $ (2.8) | ||
Stock-based compensation liability | $ 14 | $ 14 | $ 14.4 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) | 9 Months Ended |
Sep. 30, 2021shares | |
Executive | |
Stock-Based Compensation Details | |
Stock-based awards issued (in shares) | 28,600 |
Restricted Stock Units (RSUs) | |
Stock-Based Compensation Details | |
Stock-based awards issued (in shares) | 7,862 |
Amount of Common stock exchanged for each RSU vested (in shares) | 1 |
Restricted Stock Units (RSUs) | Executive | |
Stock-Based Compensation Details | |
Stock-based awards issued (in shares) | 2,000 |
Restricted Stock Units (RSUs) | Executive | Cliff vest on March 9, 2023 | |
Stock-Based Compensation Details | |
Stock-based awards issued (in shares) | 5,000 |
Restricted Stock Units (RSUs) | Certain members of the Company's Board of Directors | |
Stock-Based Compensation Details | |
Stock-based awards issued (in shares) | 6,995 |
Stock-Based Compensation - Mark
Stock-Based Compensation - Market Stock Units (Details) - MSUs | 9 Months Ended |
Sep. 30, 2021shares | |
Stock-Based Compensation Details | |
Stock-based awards issued (in shares) | 19,688 |
Minimum | |
Stock-Based Compensation Details | |
Equity share payout range | 0 |
Maximum | |
Stock-Based Compensation Details | |
Equity share payout range | 29,532 |
Equity share payout range, trailing period | 60 days |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Awards (Details) - PAs | 9 Months Ended |
Sep. 30, 2021shares | |
Stock-Based Compensation Details | |
Stock-based awards issued (in shares) | 15,723 |
Minimum | |
Stock-Based Compensation Details | |
Equity share payout range | 0 |
Maximum | |
Stock-Based Compensation Details | |
Equity share payout range | 23,585 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 636 | $ 736 | $ 2,717 | $ 6,004 |
Effective income tax rate | 21.10% | 28.70% |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)branch | Sep. 30, 2020USD ($) | |
Segment Reporting [Abstract] | ||||
Number of branches | branch | 14 | |||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 105,570 | $ 90,277 | $ 315,666 | $ 253,458 |
Gross profit | 56,046 | 47,225 | 165,226 | 134,459 |
Operating income | 4,620 | 2,001 | 12,812 | 21,208 |
Interest expense | 119 | 142 | 710 | 329 |
Other income (expense), net | (209) | 615 | 802 | 15 |
Income before income taxes | 4,292 | 2,474 | 12,904 | 20,894 |
Lawson | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 93,686 | 79,806 | 281,877 | 224,511 |
Gross profit | 51,127 | 43,038 | 151,436 | 123,031 |
Operating income | 3,488 | 1,112 | 10,188 | 19,003 |
Bolt Supply | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 11,884 | 10,471 | 33,789 | 28,947 |
Gross profit | 4,919 | 4,187 | 13,790 | 11,428 |
Operating income | $ 1,132 | $ 889 | $ 2,624 | $ 2,205 |
COVID-19 Risks and Uncertaint_2
COVID-19 Risks and Uncertainties (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Mar. 27, 2020 | |
Unusual Risk or Uncertainty [Line Items] | ||
Deferred employer side social security payments | $ 3.5 | |
Forecast | ||
Unusual Risk or Uncertainty [Line Items] | ||
Payments Of deferred employer payroll tax, CARES Act | $ 1.7 |
Related Party Transaction (Deta
Related Party Transaction (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Related Party Transactions [Abstract] | ||
Related party transaction expense | $ 0.1 | $ 0.1 |