Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | ||||||
Jun. 30, 2019 | Jul. 15, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Document and Entity Information [Abstract] | |||||||
Entity Registrant Name | LAWSON PRODUCTS INC/NEW/DE/ | ||||||
Entity Central Index Key | 0000703604 | ||||||
Document Type | 10-Q | ||||||
Document Period End Date | Jun. 30, 2019 | ||||||
Amendment Flag | false | ||||||
Document Fiscal Year Focus | 2019 | ||||||
Document Fiscal Period Focus | Q2 | ||||||
Current Fiscal Year End Date | --12-31 | ||||||
Entity Filer Category | Accelerated Filer | ||||||
Entity Small Business | true | ||||||
Entity Current Reporting Status | Yes | ||||||
Entity Emerging Growth Company | false | ||||||
Entity Shell Company | false | ||||||
Entity Common Stock, Shares Outstanding | 8,983,162 | ||||||
Common Stock, Shares, Outstanding | 8,983,162 | 8,989,343 | 8,962,450 | 8,955,930 | 8,918,639 | 8,888,335 | 8,888,028 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 6,915 | $ 11,883 |
Restricted cash | 800 | 800 |
Accounts receivable, less allowance for doubtful accounts of $596 and $549, respectively | 45,570 | 37,682 |
Allowance for Doubtful Accounts | 596 | 549 |
Inventories, net | 55,360 | 52,887 |
Miscellaneous receivables and prepaid expenses | 4,742 | 3,653 |
Total current assets | 113,387 | 106,905 |
Property, plant and equipment, net | 17,630 | 23,548 |
Deferred income taxes | 19,021 | 20,592 |
Goodwill | 20,794 | 20,079 |
Cash value of life insurance | 13,167 | 12,599 |
Intangible assets, net | 12,895 | 13,112 |
Lease Assets, Right-of-Use Asset | 11,840 | 0 |
Other assets | 298 | 307 |
Total assets | 209,032 | 197,142 |
Current liabilities: | ||
Revolving lines of credit | 8,823 | 10,823 |
Accounts payable | 16,550 | 15,207 |
Lease obligation | 3,708 | 0 |
Accrued expenses and other liabilities | 34,904 | 40,179 |
Total current liabilities | 63,985 | 66,209 |
Noncurrent liabilities: | ||
Security bonus plan | 12,353 | 12,413 |
Lease obligation | 10,500 | 5,213 |
Deferred compensation | 5,670 | 5,304 |
Deferred tax liability | 2,900 | 2,761 |
Other liabilities | 4,292 | 6,069 |
Total liabilities | 99,700 | 97,969 |
Stockholders' equity: | ||
Authorized - 500,000 shares, Issued and outstanding — None | 0 | 0 |
Authorized - 35,000,000 shares Issued - 9,032,948 and 9,005,716 shares, respectively Outstanding - 8,983,162 and 8,955,930 shares, respectively | 9,033 | 9,006 |
Capital in excess of par value | 16,973 | 15,623 |
Retained earnings | 84,728 | 77,338 |
Treasury stock – 49,786 shares | (1,234) | (1,234) |
Accumulated other comprehensive loss | (168) | (1,560) |
Total stockholders’ equity | 109,332 | 99,173 |
Total liabilities and stockholders’ equity | $ 209,032 | $ 197,142 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
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 issued | 9,032,948 | 9,005,716 |
Common stock, shares outstanding | 8,983,162 | 8,955,930 |
Treasury Stock, Shares | 49,786 | 49,786 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Total revenue | $ 96,097 | $ 90,382 | $ 187,440 | $ 174,841 |
Gross profit | 51,043 | 49,131 | 99,966 | 95,349 |
Operating expenses: | ||||
Selling expenses | 21,867 | 22,004 | 43,609 | 43,944 |
General and administrative expenses | 27,553 | 21,573 | 49,190 | 44,014 |
Operating expenses | 49,420 | 43,577 | 92,799 | 87,958 |
Operating income | 1,623 | 5,554 | 7,167 | 7,391 |
Interest expense | (146) | (264) | (343) | (504) |
Other income (expense), net | (339) | 777 | (811) | 490 |
Income before income taxes | 1,816 | 4,513 | 7,635 | 6,397 |
Income tax expense | 509 | 1,319 | 2,182 | 1,967 |
Net income | $ 1,307 | $ 3,194 | $ 5,453 | $ 4,430 |
Basic income per share of common stock | $ 0.15 | $ 0.36 | $ 0.61 | $ 0.50 |
Diluted income per share of common stock | $ 0.14 | $ 0.35 | $ 0.58 | $ 0.48 |
Weighted average shares outstanding: | ||||
Basic weighted average shares outstanding | 8,976 | 8,903 | 8,969 | 8,896 |
Effect of dilutive securities outstanding | 405 | 314 | 379 | 304 |
Diluted weighted average shares outstanding | 9,381 | 9,217 | 9,348 | 9,200 |
Comprehensive income: | ||||
Net income | $ 1,307 | $ 3,194 | $ 5,453 | $ 4,430 |
Adjustment for foreign currency translation | 717 | 22 | 1,392 | (1,461) |
Net comprehensive (loss) income | 2,024 | 3,216 | 6,845 | 2,969 |
Product [Member] | ||||
Revenue | 85,996 | 80,397 | 167,911 | 155,367 |
Cost of goods sold | 40,580 | 37,856 | 78,587 | 72,688 |
Service [Member] | ||||
Revenue | 10,101 | 9,985 | 19,529 | 19,474 |
Cost of goods sold | $ 4,474 | $ 3,395 | $ 8,887 | $ 6,804 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] |
Common Stock, Shares, Outstanding | 8,888,028 | ||
Common Stock Outstanding, $1 Par Value | $ 8,921 | ||
Capital in Excess of Par Value | 13,005 | ||
Retained Earnings | 71,453 | ||
Treasury Stock | (711) | ||
Accumulated Other Comprehensive Income (Loss) | 822 | ||
Total Stockholders' Equity | 93,490 | ||
Net income | 1,236 | ||
Adjustment for foreign currency translation | (1,483) | ||
Stock-based compensation | $ 651 | ||
Shares Issued | 307 | ||
Shares Issued, Par Value | $ 1 | $ (1) | |
Net income | $ 4,430 | ||
Adjustment for foreign currency translation | $ (1,461) | ||
Common Stock, Shares, Outstanding | 8,888,335 | ||
Common Stock Outstanding, $1 Par Value | $ 8,922 | ||
Capital in Excess of Par Value | 13,655 | ||
Retained Earnings | 72,360 | ||
Treasury Stock | (711) | ||
Accumulated Other Comprehensive Income (Loss) | (661) | ||
Total Stockholders' Equity | 93,565 | ||
Change in accounting principle | (329) | ||
Net income | 3,194 | ||
Adjustment for foreign currency translation | 22 | ||
Stock-based compensation | $ 673 | ||
Shares Issued | 30,304 | ||
Shares Issued, Par Value | 30 | (30) | |
Common Stock, Shares, Outstanding | 8,918,639 | ||
Common Stock Outstanding, $1 Par Value | $ 8,952 | ||
Capital in Excess of Par Value | 14,298 | ||
Retained Earnings | 75,554 | ||
Treasury Stock | (711) | ||
Accumulated Other Comprehensive Income (Loss) | (639) | ||
Total Stockholders' Equity | $ 97,454 | ||
Common Stock, Shares, Outstanding | 8,955,930 | ||
Common Stock Outstanding, $1 Par Value | $ 9,006 | ||
Capital in Excess of Par Value | 15,623 | ||
Retained Earnings | 77,338 | ||
Treasury Stock | (1,234) | ||
Accumulated Other Comprehensive Income (Loss) | (1,560) | ||
Total Stockholders' Equity | 99,173 | ||
Net income | 4,146 | ||
Adjustment for foreign currency translation | 675 | ||
Stock-based compensation | $ 666 | ||
Shares issued, Par Value | 6,520 | ||
Shares Issued, Par Value | $ 0 | 6 | (6) |
Net income | 5,453 | ||
Adjustment for foreign currency translation | $ 1,392 | ||
Common Stock, Shares, Outstanding | 8,962,450 | ||
Common Stock Outstanding, $1 Par Value | $ 9,012 | ||
Capital in Excess of Par Value | 16,283 | ||
Retained Earnings | 83,421 | ||
Treasury Stock | (1,234) | ||
Accumulated Other Comprehensive Income (Loss) | (885) | ||
Total Stockholders' Equity | 106,597 | ||
Change in accounting principle | 1,937 | ||
Net income | 1,307 | ||
Adjustment for foreign currency translation | 717 | ||
Stock-based compensation | $ 711 | ||
Shares issued, Par Value | 20,712 | ||
Shares Issued, Par Value | $ 0 | $ 21 | $ (21) |
Common Stock, Shares, Outstanding | 8,983,162 | ||
Common Stock Outstanding, $1 Par Value | $ 9,033 | ||
Capital in Excess of Par Value | 16,973 | ||
Retained Earnings | 84,728 | ||
Treasury Stock | (1,234) | ||
Accumulated Other Comprehensive Income (Loss) | (168) | ||
Total Stockholders' Equity | $ 109,332 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Income Taxes Paid | $ 259 | $ 1,101 |
Operating activities: | ||
Net income | 5,453 | 4,430 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 2,933 | 3,365 |
Stock-based compensation | 5,247 | 1,057 |
Deferred income taxes | 1,591 | 1,380 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (7,974) | (4,632) |
Inventories | (1,882) | (682) |
Prepaid expenses and other assets | (1,629) | (1,563) |
Accounts payable and other liabilities | (6,406) | (1,745) |
Other | 434 | 238 |
Net cash (used in) provided by operating activities | (2,233) | 1,848 |
Investing activities: | ||
Purchases of property, plant and equipment | (944) | (1,428) |
Business acquisition | 0 | (157) |
Net cash used in investing activities | (944) | (1,585) |
Financing activities: | ||
Net (payments on) proceeds from revolving lines of credit | (2,000) | 1,528 |
Payment of financing lease principal | (123) | 0 |
Proceeds from stock option exercises | 16 | 0 |
Net cash (used in) provided by financing activities | (2,107) | 1,528 |
Effect of exchange rate changes on cash and cash equivalents | 316 | (215) |
Increase (decrease) in cash, cash equivalents and restricted cash | (4,968) | 1,576 |
Cash, cash equivalents and restricted cash at beginning of period | 12,683 | 5,216 |
Cash, cash equivalents and restricted cash at end of period | 7,715 | 6,792 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 12,683 | $ 5,216 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies The 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, 2018 . 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, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . 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 2019. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases In February 2016 the FASB established Topic ASC 842, Leases, by issuing Accounting Standards Update 2016-02. Lawson adopted ASC 842 as of January 1, 2019. 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, and is a sublessor of a portion of its corporate headquarters. 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 key change commencing on January 1, 2019 for the Company is the recognition of assets and liabilities of operating leases with lease terms longer than twelve months that were not previously capitalized on the balance sheet. 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. Similar to deferred rent under ASC 840, 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. Lease of McCook Distribution Facility Upon adoption of ASC 842, the previously capitalized financing asset and lease liability for the McCook distribution facility was removed from the balance sheet and re-established as a ROU asset and a lease liability as an operating lease. The Company did not include the lease renewal periods in its assessment of the McCook lease as it did not meet the reasonably certain threshold required under ASC 842. Changes in the value of the assets and liabilities associated with the property due to adoption of ASC 842 have been accounted for as an adjustment to beginning retained earnings of $1.9 million . Accounting Policy Elections As part of the transition to ASC 842, the Company elected the following practical expedients: The transitional package of practical expedients as prescribed by ASC 842. Per the practical expedient for the transition to ASC 842, the Company did not reassess expired leases, existing lease classifications or initial indirect costs for existing leases in the calculation of the right to use asset and lease liability. The Company elected the modified retrospective method of transition, which resulted in no restatement of prior period results with the adoption impact being recorded to opening retained earnings. The Company did not capitalize short term leases, for all asset classes defined as leases with a term of shorter than twelve months, on the balance sheet. These leases have not been transitioned to ASC 842. As a practical expedient, the Company did not reassess the accounting for initial direct costs of current leases. The Company elected not to use the hindsight practical expedient in determining the lease term. The Company recognizes certain lease components and non-lease components together and not as separate parts of a lease for real estate leases. The Company will exercise this practical expedient in the future by asset class. 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 Company determined that Lawson MRO and Bolt have different discount rates for leases, as both reporting units have separate borrowing agreements. The Lawson MRO segment will discount the present value of the total payments for the operating and financing leases using the incremental borrowing rate of 5.5% , given the similarity of the lease terms amongst asset classes. The Bolt segment will discount the present value of the total payments of each operating and financing lease at its incremental borrowing rate of 4.2% . 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 and six months ending June 30, 2019 are as follows (Dollars in thousands): Lease Type Classification Three Months Ending June 30, 2019 Six Months Ending June 30, 2019 Consolidated Operating Lease Expense (1) Operating expenses $ 1,227 $ 2,502 Consolidated Financing Lease Amortization Operating expenses 51 99 Consolidated Financing Lease Interest Interest expense 7 13 Consolidated Financing Lease Expense 58 112 Sublease Income (2) Operating expenses (80 ) (160 ) Net Lease Cost $ 1,205 $ 2,454 (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 Company recorded $1.1 million of operating lease expense in the second quarter of 2018 and $2.2 million of operating lease expense in the first two quarters of 2018. The value of the net assets and liabilities generated by the leasing activity of Lawson as lessee as of June 30, 2019 are as follows (Dollars in thousands): Lease Type Amount Total ROU operating lease assets (1) $ 11,142 Total ROU financing lease assets (2) 698 Total lease assets $ 11,840 Total current operating lease obligation $ 3,434 Total current financing lease obligation 274 Total current lease obligations $ 3,708 Total long term operating lease obligation $ 10,089 Total long term financing lease obligation 411 Total long term lease obligation $ 10,500 (1) Operating lease assets are recorded net of accumulated amortization of $1.4 million as of June 30, 2019 (2) Financing lease assets are recorded net of accumulated amortization of $0.1 million as of June 30, 2019 The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of June 30, 2019 were as follows (Dollars in thousands): Maturity Date of Lease Liabilities Operating Leases Financing Leases Total Year one $ 4,032 $ 267 $ 4,299 Year two 4,044 240 4,284 Year three 3,981 126 4,107 Year four 1,880 79 1,959 Year five 845 25 870 Subsequent years 55 — 55 Total lease payments 14,837 737 15,574 Less: Interest 1,314 52 1,366 Present value of lease liabilities $ 13,523 $ 685 $ 14,208 The Company’s future minimum lease commitments as of December 31, 2018 , were as follows (Dollars in thousands): Maturity Date of Lease Liabilities Operating Leases (2)(3) Financing Lease (3)(4) Capital Leases (4) Year one $ 2,574 $ 1,395 $ 201 Year two 2,369 1,444 155 Year three 2,349 1,493 91 Year four 2,008 760 11 Year five 1,130 — — Subsequent years 374 — — Total lease payments (1) $ 10,804 $ 5,092 $ 458 (1) Minimum lease payments exclude payments to landlord for real estate taxes and common area maintenance (2) On January 1, 2019, t he Company elected the modified retrospective method of transition to adopt the new lease standard ASC 842, which resulted in no restatement of prior period results. At December 31, 2018, prior to adoption of the new lease standard, operating lease obligations were not included as a liability on the balance sheet. Therefore, the operating lease obligations are included in the table for comparative purposes only and the total lease liability is not included as it is not applicable (3) The $5.1 million minimum lease obligation attributable to the McCook lease that was classified as a financing lease on December 31, 2018 was reclassified as an operating lease under the new accounting standard adopted on January 1, 2019 (4) Lease obligations classified as capital leases on December 31, 2018 were reclassified as financing leases under the new lease standard adopted on January 1, 2019 The weighted average lease terms and interest rates of the leases held by Lawson as of June 30, 2019 are as follows: Lease Type Weighted Average Term in Years Weighted Average Interest Rate Operating Leases 3.8 5.2% Financing Leases 3.2 5.5% The cash outflows of the leasing activity of Lawson as lessee for the six months ending June 30, 2019 are as follows (Dollars in thousands): Cash Flow Source Classification Amount Operating cash flows from operating leases Operating activities $ 1,857 Operating cash flows from financing leases Operating activities 7 Financing cash flows from financing leases Financing activities 123 Lawson as Lessor The Company is a lessor of its facility in Decatur, Alabama, which was previously used in conjunction with a discontinued operation. The lease expires in February, 2024. Both the lessor and lessee have a put option to each other upon the completion of the remediation of the environmental matter at a pre-negotiated price less 50% of the rent paid upon the put option being exerci sed. The net book value at June 30, 2019 is $0.4 million . The Company classifies this lease as an operating lease. The operating lease of the Decatur facility generated approximately $0.1 million of income to the Company for the six months ending June 30, 2019 . Annual lease income classified as operating expenses of $0.2 million is anticipated through the earlier of the put option exercise or February, 2024. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Deferred Revenue Disclosure [Abstract] | |
Revenue Recognition | Revenue Recognition Adoption of ASC 606 On January 1, 2018 the Company adopted Accounting Standards Codification 606-Revenue From Contracts With Customers (“ASC 606”). As part of the Company's adoption of ASC 606, 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. ASC 606 defines a five step process to recognize revenues at the time and in an amount that reflects the consideration expected to be received for the performance obligations that have been provided. ASC 606 defines contracts as written, oral and through customary business practice. Under this definition, 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. Customer contracts have the following performance obligations: 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 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. Significant Judgments The Company employs certain significant 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. Financial Impact of ASC 606 Adoption As a result of applying ASC 606 the Company recorded a liability of $0.7 million for deferred revenue on January 1, 2018 . Expenses related to these revenues of $0.4 million were also deferred resulting in a net reduction to opening retained earnings of $0.3 million as of January 1, 2018 . At June 30, 2019 , the Company had a deferred revenue liability of $0.7 million and a deferred expense of $0.3 million for related expenses associated with the deferred service performance obligations, respectively. 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: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 United States $ 76,119 $ 71,626 $ 150,167 $ 139,944 Canada 19,978 18,756 37,273 34,897 Consolidated total $ 96,097 $ 90,382 $ 187,440 $ 174,841 Disaggregated revenue by product type follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Fastening Systems 24.3 % 24.6 % 23.9 % 24.4 % Fluid Power 15.2 % 14.8 % 15.2 % 14.7 % Cutting Tools and Abrasives 13.0 % 13.4 % 13.1 % 12.3 % Specialty Chemicals 11.7 % 12.3 % 11.5 % 13.4 % Electrical 10.7 % 10.8 % 11.1 % 11.0 % Aftermarket Automotive Supplies 7.6 % 7.8 % 8.0 % 8.2 % Safety 4.7 % 4.7 % 4.7 % 4.7 % Welding and Metal Repair 1.6 % 2.1 % 1.7 % 2.0 % Other 11.2 % 9.5 % 10.8 % 9.3 % Consolidated Total 100.0 % 100.0 % 100.0 % 100.0 % |
Restricted Cash Restricted Cash
Restricted Cash Restricted Cash | 6 Months Ended |
Jun. 30, 2019 | |
Restricted Cash [Abstract] | |
Restricted Cash | Restricted Cash The 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
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net Inventories, net, consisting primarily of purchased goods which are offered for resale, were as follows: (Dollars in thousands) June 30, 2019 December 31, 2018 Inventories, gross $ 60,144 $ 58,215 Reserve for obsolete and excess inventory (4,784 ) (5,328 ) Inventories, net $ 55,360 $ 52,887 |
Goodwill Goodwill
Goodwill Goodwill | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Disclosure [Text Block] | Goodwill Goodwill activity for the first six months of 2019 and 2018 is included in the table below: (Dollars in thousands) Six Months Ended June 30, 2019 2018 Beginning balance $ 20,079 $ 19,614 Adjustment to original acquisition allocation 2 (17 ) Impact of foreign exchange 713 (793 ) Ending balance $ 20,794 $ 18,804 |
Intangible assets (Notes)
Intangible assets (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Intangible Assets [Abstract] | |
Intangible Assets Disclosure [Text Block] | Intangible Assets The gross carrying amount and accumulated amortization by intangible asset class were as follows: (Dollars in thousands) June 30, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade names $ 8,367 $ (1,741 ) $ 6,626 $ 8,090 $ (1,447 ) $ 6,643 Customer relationships 7,301 (1,032 ) 6,269 7,114 (645 ) 6,469 $ 15,668 $ (2,773 ) $ 12,895 $ 15,204 $ (2,092 ) $ 13,112 Amortization expense of $0.7 million and $0.4 million related to intangible assets was recorded in General and administrative expenses for the six months ended June 30, 2019 and 2018 , respectively. |
Loan Agreement
Loan Agreement | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Loan Agreement | Lawson Loan Agreement In 2012, the Company entered into a Loan and Security Agreement (“Loan Agreement”). The Loan Agreement consists of a $40.0 million revolving line of credit facility, which includes a $10.0 million sub-facility for letters of credit. Certain terms of the original Loan Agreement have been revised by subsequent amendments. The Loan Agreement, as amended, expires in August 2020. Due to the lock box arrangement and a subjective acceleration clause contained in the Loan Agreement, any outstanding borrowings under the revolving line of credit are classified as a current liability. Currently, credit available under the Loan Agreement, as amended, is based upon: a) 85% of the face amount of the Company’s eligible accounts receivable, generally less than 60 days past due, and b) the lesser of 60% of the lower of cost or market value of the Company’s eligible inventory, generally inventory expected to be sold within 18 months , or $20.0 million . The applicable interest rates for borrowings are at the Prime rate or, if the Company elects, the LIBOR rate plus 1.50% to 1.85% based on the Company’s debt to EBITDA ratio. The Loan Agreement is secured by a first priority perfected security interest in substantially all existing assets of the Company. Dividends are restricted to amounts not to exceed $7.0 million annually. At June 30, 2019 , the Company had $6.0 million of borrowings under its revolving line of credit facility and additional borrowing availability of $30.7 million . The Company paid interest of $0.4 million and $0.5 million for the six months ended June 30, 2019 and 2018 , respectively. The weighted average interest rate was 4.48% and 3.74% for the six months ended June 30, 2019 and 2018 , respectively. In the second quarter of 2019, the Company's 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 addition to other customary representations, warranties and covenants, if the excess borrowing capacity is below $10.0 million the Company is required to meet a minimum trailing twelve month EBITDA to fixed charges ratio, as defined in the amended Loan Agreement. On June 30, 2019 , the Company's borrowing capacity exceeded $10.0 million . Therefore, the Company was not subject to this financial covenant, however, for informational purposes the result of the financial covenant is provided below: Quarterly Financial Covenant Requirement Actual EBITDA to fixed charges ratio 1.10 : 1.00 7.55 : 1.00 Commitment Letter Bolt Supply has a Commitment Letter with BMO Bank of Montreal ("BMO") dated March 30, 2017 which allows Bolt Supply to access up to $5.5 million Canadian dollars in the form of either an overdraft facility or as commercial letters of credit. The Commitment Letter is cancellable at any time at BMOs sole discretion and is secured by substantially all of Bolt Supply’s assets. It carries an interest rate of the bank's prime rate plus 0.25% . At June 30, 2019 , Bolt Supply had $3.7 million Canadian dollars of outstanding borrowings and remaining borrowing availability of $1.8 million Canadian dollars. The Commitment Letter is subject to a working capital ratio of 1.35 :1, a maximum ratio of debt to tangible net worth of 2.5 :1 of the Bolt Supply assets and Debt Service Coverage Ratio 1.25 :1 as defined in the Commitment Letter. At June 30, 2019 , Bolt Supply was in compliance with all covenants which are subject to periodic review, at least annually, with the next review due by August 31, 2019. |
Reserve for Severance
Reserve for Severance | 6 Months Ended |
Jun. 30, 2019 | |
Severance Reserve [Abstract] | |
Reserve for Severance | Severance Reserve Changes in the Company’s reserve for severance as of June 30, 2019 and 2018 were as follows: (Dollars in thousands) Six Months Ended June 30, 2019 2018 Balance at beginning of period $ 359 $ 483 Charged to earnings 1,512 692 Payments (409 ) (532 ) Balance at end of period $ 1,462 $ 643 |
Stock-Based Compensation (Notes
Stock-Based Compensation (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Stock Based Compensation [Abstract] | |
Stock Performance Rights | Stock-Based Compensation The Company recorded stock-based compensation expense of $5.2 million and $1.1 million for the first six months of 2019 and 2018, respectively. A portion of stock-based compensation is related to the change in the market value of the Company's common stock. A summary of stock-based awards issued during the six months ended June 30, 2019 follows: Stock Performance Rights ("SPRs") The Company issued 25,793 SPRs to key employees with an exercise price of $30.54 per share that cliff vest on December 31, 2021 and have a termination date of December 31, 2026. SPRs entitle the recipient to receive a cash payment equal to the excess of the market value of the Company's common stock over the SPR exercise price when the SPRs are surrendered. Restricted Stock Units ("RSUs") The Company issued 10,045 RSUs to certain members of the Company's Board of Directors with a vesting date of May 14, 2020. The Company issued 16,781 RSUs to key employees that cliff vest on December 31, 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 39,948 MSUs to key employees that cliff vest on December 31, 2021. MSU's 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 59,922 , will be determined based upon the trailing sixty-day weighted average closing price of the Company's common stock on December 31, 2021. No stock options were excluded from the computation of diluted earnings per share for the three months ended June 30, 2019. For the three months ended June 30, 2018, stock options to purchase approximately 80,000 shares of the Company's common stock were excluded from the computation of diluted earnings per share because they were anti-dilutive. For the six months ended June 30, 2019 and 2018, stock options to purchase approximately 9,524 and 63,210 shares of the Company's common stock were excluded from the computation of diluted earnings per share because they were anti-dilutive. |
Income Tax
Income Tax | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded income tax expenses of $2.2 million , a 28.6% effective tax rate for the six months ended June 30, 2019 and an income tax expense of $2.0 million , a 30.7% effective tax rate for the six months ended June 30, 2018 . The effective tax rates were higher than the U.S. statutory rate due primarily to state taxes, income in higher tax jurisdictions and an inclusion for global intangible low taxed 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, 2019 , the Company is subject to U.S. Federal income tax examinations for the years 2015 through 2017 and income tax examinations from various other jurisdictions for the years 2011 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 Contingent
Contingent Liability Contingent Liability (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Contingent Liability [Abstract] | |
Environmental Contingency | Contingent Liabilities In 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 made payments of $1.3 million in the first two quarters of 2019 for services rendered by the environmental consulting firm. These payments were applied to the previously accrued environmental remediation liability. 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. |
Acquisitions Acquisition
Acquisitions Acquisition | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisition The Company completed the acquisition of Screw Products, Inc. in October 2018 for approximately $5.2 million . The purchase price was funded with cash on hand and utilization of the Company's existing credit facility. Screw Products, Inc. is a distributor of bulk industrial products to large manufacturers and job shops. The Company allocated $2.6 million of the purchase price to an intangible asset for customer relationships and $0.5 million for intangible asset for trade names. These amounts were determined by a third party valuation firm with estimated useful lives of 10 and 15 years, respectively. The excess of the purchase price over the fair values of the identifiable assets and liabilities was recorded as goodwill and represents the expected future benefit to the Company from the acquisition of Screw Products. The Company's Lawson operating segment includes revenues of approximately $0.7 million and $1.5 million from Screw Products in the three and six months ended June, 30 2019, respectively. The following table contains unaudited pro forma revenue and net income for Lawson Products assuming the Screw Products acquisition closed on January 1, 2018. (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenue Actual $ 96,097 $ 90,382 $ 187,440 $ 174,841 Pro forma 96,097 91,261 187,440 176,469 Net income Actual $ 1,307 $ 3,194 $ 5,453 $ 4,430 Pro forma 1,307 3,308 5,453 4,632 The pro forma disclosures in the table above include adjustments for, amortization of intangible assets and acquisition costs to reflect results as if the acquisition of Screw Products had closed on January 1, 2018 rather than on the actual acquisition date. This pro forma information utilizes certain estimates, is presented for illustrative purposes only and is not intended to be indicative of the actual results of operation. In addition, future results may vary significantly from the results reflected in the pro forma information. The unaudited pro forma financial information does not reflect the impact of future positive or negative events that may occur after the acquisition, such as anticipated cost savings from operating synergies. |
Segment Information (Notes)
Segment Information (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 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 2019. Financial information for the Company's reportable segments follows: (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenue Lawson product revenue $ 74,866 $ 70,632 $ 147,905 $ 137,569 Lawson service revenue 10,101 9,985 19,529 19,474 Total Lawson revenue 84,967 80,617 167,434 157,043 Bolt Supply 11,130 9,765 20,006 17,798 Consolidated total $ 96,097 $ 90,382 $ 187,440 $ 174,841 Gross profit Lawson product gross profit $ 41,130 $ 38,707 $ 81,734 $ 75,549 Lawson service gross profit 5,627 6,590 10,642 12,670 Total Lawson gross profit 46,757 45,297 92,376 88,219 Bolt Supply 4,286 3,834 7,590 7,130 Consolidated total $ 51,043 $ 49,131 $ 99,966 $ 95,349 Operating income Lawson $ 654 $ 4,794 $ 6,113 $ 6,284 Bolt Supply 969 760 1,054 1,107 Consolidated total 1,623 5,554 7,167 7,391 Interest expense (146 ) (264 ) (343 ) (504 ) Other income (expense), net 339 (777 ) 811 (490 ) Income before income taxes $ 1,816 $ 4,513 $ 7,635 $ 6,397 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Net Lease Cost | The expenses and income generated by the leasing activity of Lawson as lessee for the three and six months ending June 30, 2019 are as follows (Dollars in thousands): Lease Type Classification Three Months Ending June 30, 2019 Six Months Ending June 30, 2019 Consolidated Operating Lease Expense (1) Operating expenses $ 1,227 $ 2,502 Consolidated Financing Lease Amortization Operating expenses 51 99 Consolidated Financing Lease Interest Interest expense 7 13 Consolidated Financing Lease Expense 58 112 Sublease Income (2) Operating expenses (80 ) (160 ) Net Lease Cost $ 1,205 $ 2,454 (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. |
Value of Net Assets and Liabilities of Leasing Activities | The value of the net assets and liabilities generated by the leasing activity of Lawson as lessee as of June 30, 2019 are as follows (Dollars in thousands): Lease Type Amount Total ROU operating lease assets (1) $ 11,142 Total ROU financing lease assets (2) 698 Total lease assets $ 11,840 Total current operating lease obligation $ 3,434 Total current financing lease obligation 274 Total current lease obligations $ 3,708 Total long term operating lease obligation $ 10,089 Total long term financing lease obligation 411 Total long term lease obligation $ 10,500 (1) Operating lease assets are recorded net of accumulated amortization of $1.4 million as of June 30, 2019 (2) Financing lease assets are recorded net of accumulated amortization of $0.1 million as of June 30, 2019 |
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, 2019 were as follows (Dollars in thousands): Maturity Date of Lease Liabilities Operating Leases Financing Leases Total Year one $ 4,032 $ 267 $ 4,299 Year two 4,044 240 4,284 Year three 3,981 126 4,107 Year four 1,880 79 1,959 Year five 845 25 870 Subsequent years 55 — 55 Total lease payments 14,837 737 15,574 Less: Interest 1,314 52 1,366 Present value of lease liabilities $ 13,523 $ 685 $ 14,208 |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | December 31, 2018 , were as follows (Dollars in thousands): Maturity Date of Lease Liabilities Operating Leases (2)(3) Financing Lease (3)(4) Capital Leases (4) Year one $ 2,574 $ 1,395 $ 201 Year two 2,369 1,444 155 Year three 2,349 1,493 91 Year four 2,008 760 11 Year five 1,130 — — Subsequent years 374 — — Total lease payments (1) $ 10,804 $ 5,092 $ 458 |
Lease Disclosures | he weighted average lease terms and interest rates of the leases held by Lawson as of June 30, 2019 are as follows: Lease Type Weighted Average Term in Years Weighted Average Interest Rate Operating Leases 3.8 5.2% Financing Leases 3.2 5.5% |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The cash outflows of the leasing activity of Lawson as lessee for the six months ending June 30, 2019 are as follows (Dollars in thousands): Cash Flow Source Classification Amount Operating cash flows from operating leases Operating activities $ 1,857 Operating cash flows from financing leases Operating activities 7 Financing cash flows from financing leases Financing activities 123 |
Operating Lease Income | Annual lease income classified as operating expenses of $0.2 million is anticipated through the earlier of the put option exercise or February, 2024. |
Revenue Recognition Revenue R_2
Revenue Recognition Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Deferred Revenue Disclosure [Abstract] | |
Disaggregated Revenue by Geographic Areas | Disaggregated revenue by geographic area follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 United States $ 76,119 $ 71,626 $ 150,167 $ 139,944 Canada 19,978 18,756 37,273 34,897 Consolidated total $ 96,097 $ 90,382 $ 187,440 $ 174,841 |
Disaggregated revenue by Product Type | Disaggregated revenue by product type follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Fastening Systems 24.3 % 24.6 % 23.9 % 24.4 % Fluid Power 15.2 % 14.8 % 15.2 % 14.7 % Cutting Tools and Abrasives 13.0 % 13.4 % 13.1 % 12.3 % Specialty Chemicals 11.7 % 12.3 % 11.5 % 13.4 % Electrical 10.7 % 10.8 % 11.1 % 11.0 % Aftermarket Automotive Supplies 7.6 % 7.8 % 8.0 % 8.2 % Safety 4.7 % 4.7 % 4.7 % 4.7 % Welding and Metal Repair 1.6 % 2.1 % 1.7 % 2.0 % Other 11.2 % 9.5 % 10.8 % 9.3 % Consolidated Total 100.0 % 100.0 % 100.0 % 100.0 % |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Components of inventories | Inventories, net, consisting primarily of purchased goods which are offered for resale, were as follows: (Dollars in thousands) June 30, 2019 December 31, 2018 Inventories, gross $ 60,144 $ 58,215 Reserve for obsolete and excess inventory (4,784 ) (5,328 ) Inventories, net $ 55,360 $ 52,887 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Goodwill activity for the first six months of 2019 and 2018 is included in the table below: (Dollars in thousands) Six Months Ended June 30, 2019 2018 Beginning balance $ 20,079 $ 19,614 Adjustment to original acquisition allocation 2 (17 ) Impact of foreign exchange 713 (793 ) Ending balance $ 20,794 $ 18,804 |
Intangible assets (Tables)
Intangible assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Intangible Assets [Abstract] | |
Intangible Assets Disclosure [Text Block] | Intangible Assets The gross carrying amount and accumulated amortization by intangible asset class were as follows: (Dollars in thousands) June 30, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade names $ 8,367 $ (1,741 ) $ 6,626 $ 8,090 $ (1,447 ) $ 6,643 Customer relationships 7,301 (1,032 ) 6,269 7,114 (645 ) 6,469 $ 15,668 $ (2,773 ) $ 12,895 $ 15,204 $ (2,092 ) $ 13,112 Amortization expense of $0.7 million and $0.4 million related to intangible assets was recorded in General and administrative expenses for the six months ended June 30, 2019 and 2018 , respectively. |
Intangible Assets Disclosure [Table Text Block] | The gross carrying amount and accumulated amortization by intangible asset class were as follows: (Dollars in thousands) June 30, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade names $ 8,367 $ (1,741 ) $ 6,626 $ 8,090 $ (1,447 ) $ 6,643 Customer relationships 7,301 (1,032 ) 6,269 7,114 (645 ) 6,469 $ 15,668 $ (2,773 ) $ 12,895 $ 15,204 $ (2,092 ) $ 13,112 |
Loan Agreement (Tables)
Loan Agreement (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Quarterly Financial Covenants [Table Text Block] | In addition to other customary representations, warranties and covenants, if the excess borrowing capacity is below $10.0 million the Company is required to meet a minimum trailing twelve month EBITDA to fixed charges ratio, as defined in the amended Loan Agreement. On June 30, 2019 , the Company's borrowing capacity exceeded $10.0 million . Therefore, the Company was not subject to this financial covenant, however, for informational purposes the result of the financial covenant is provided below: Quarterly Financial Covenant Requirement Actual EBITDA to fixed charges ratio 1.10 : 1.00 7.55 : 1.00 Commitment Letter Bolt Supply has a Commitment Letter with BMO Bank of Montreal ("BMO") dated March 30, 2017 which allows Bolt Supply to access up to $5.5 million Canadian dollars in the form of either an overdraft facility or as commercial letters of credit. The Commitment Letter is cancellable at any time at BMOs sole discretion and is secured by substantially all of Bolt Supply’s assets. It carries an interest rate of the bank's prime rate plus 0.25% . At June 30, 2019 , Bolt Supply had $3.7 million Canadian dollars of outstanding borrowings and remaining borrowing availability of $1.8 million Canadian dollars. The Commitment Letter is subject to a working capital ratio of 1.35 :1, a maximum ratio of debt to tangible net worth of 2.5 :1 of the Bolt Supply assets and Debt Service Coverage Ratio 1.25 :1 as defined in the Commitment Letter. At June 30, 2019 , Bolt Supply was in compliance with all covenants which are subject to periodic review, at least annually, with the next review due by August 31, 2019. |
Reserve for Severance (Tables)
Reserve for Severance (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and 2018 were as follows: (Dollars in thousands) Six Months Ended June 30, 2019 2018 Balance at beginning of period $ 359 $ 483 Charged to earnings 1,512 692 Payments (409 ) (532 ) Balance at end of period $ 1,462 $ 643 |
Acquisitions Acquisitions (Tabl
Acquisitions Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisition Pro Forma Information | The following table contains unaudited pro forma revenue and net income for Lawson Products assuming the Screw Products acquisition closed on January 1, 2018. (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenue Actual $ 96,097 $ 90,382 $ 187,440 $ 174,841 Pro forma 96,097 91,261 187,440 176,469 Net income Actual $ 1,307 $ 3,194 $ 5,453 $ 4,430 Pro forma 1,307 3,308 5,453 4,632 The pro forma disclosures in the table above include adjustments for, amortization of intangible assets and acquisition costs to reflect results as if the acquisition of Screw Products had closed on January 1, 2018 rather than on the actual acquisition date. This pro forma information utilizes certain estimates, is presented for illustrative purposes only and is not intended to be indicative of the actual results of operation. In addition, future results may vary significantly from the results reflected in the pro forma information. The unaudited pro forma financial information does not reflect the impact of future positive or negative events that may occur after the acquisition, such as anticipated cost savings from operating synergies. |
Segment Information Segment Rep
Segment Information Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Financial information for the Company's reportable segments follows: (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenue Lawson product revenue $ 74,866 $ 70,632 $ 147,905 $ 137,569 Lawson service revenue 10,101 9,985 19,529 19,474 Total Lawson revenue 84,967 80,617 167,434 157,043 Bolt Supply 11,130 9,765 20,006 17,798 Consolidated total $ 96,097 $ 90,382 $ 187,440 $ 174,841 Gross profit Lawson product gross profit $ 41,130 $ 38,707 $ 81,734 $ 75,549 Lawson service gross profit 5,627 6,590 10,642 12,670 Total Lawson gross profit 46,757 45,297 92,376 88,219 Bolt Supply 4,286 3,834 7,590 7,130 Consolidated total $ 51,043 $ 49,131 $ 99,966 $ 95,349 Operating income Lawson $ 654 $ 4,794 $ 6,113 $ 6,284 Bolt Supply 969 760 1,054 1,107 Consolidated total 1,623 5,554 7,167 7,391 Interest expense (146 ) (264 ) (343 ) (504 ) Other income (expense), net 339 (777 ) 811 (490 ) Income before income taxes $ 1,816 $ 4,513 $ 7,635 $ 6,397 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Details) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018shares | Jun. 30, 2019Segmentshares | Jun. 30, 2018shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of Reportable Segments | Segment | 2 | ||
New Credit Facility Inventory Base Selling Period | 18 months | ||
Stock Compensation Plan [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive Options Outstanding | shares | 80,000 | 9,524,000 | 63,210,000 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies Cumulative adjustment to retained earnings (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Cumulative adjustment to retained earnings [Abstract] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 1,937 | $ (329) |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | Jun. 30, 2019leases | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) |
Lessee, Lease, Description [Line Items] | |||
Number of types of leases | leases | 2 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 1,937 | $ (329) | |
Retained Earnings [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 1,900 | ||
Lawson [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee's discount rate | 5.50% | ||
Bolt [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee's discount rate | 4.20% |
Leases - Net Lease Cost (Detail
Leases - Net Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Consolidated Operating Lease Expense | $ 1,227 | $ 2,502 |
Consolidated Financing Lease Amortization | 51 | 99 |
Consolidated Financing Lease Interest | 7 | 13 |
Consolidated Financing Lease Expense | 58 | 112 |
Sublease Income | (80) | (160) |
Net Lease Cost | $ 1,205 | $ 2,454 |
Leases - Net Lease Assets and L
Leases - Net Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Total ROU operating lease assets | $ 11,142 | |
Total ROU financing lease assets | 698 | |
Total lease assets | 11,840 | $ 0 |
Total current operating lease obligation | 3,434 | |
Total current financing lease obligation | 274 | |
Total current lease obligations | 3,708 | 0 |
Total long term operating lease obligation | 10,089 | |
Total long term financing lease obligation | 411 | |
Total long term lease obligation | 10,500 | $ 5,213 |
Operating lease accumulated depreciation | 1,372 | |
Finance lease accumulated depreciation | $ 99 |
Leases - Value of Lease Liabili
Leases - Value of Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Operating Leases | ||
2019 | $ 4,032 | $ 2,574 |
2020 | 4,044 | 2,369 |
2021 | 3,981 | 2,349 |
2022 | 1,880 | |
2023 | 845 | 1,130 |
Subsequent years | 55 | 374 |
Total lease payments (1) | 14,837 | 10,804 |
Less: Interest | 1,314 | |
Present value of lease liabilities | 13,523 | |
Financing Leases | ||
2019 | 267 | 1,395 |
2020 | 240 | 1,444 |
2021 | 126 | 1,493 |
2022 | 79 | 760 |
2023 | 25 | 0 |
Subsequent years | 0 | 0 |
Total lease payments (1) | 737 | $ 5,092 |
Less: Interest | 52 | |
Present value of lease liabilities | 685 | |
Total | ||
2019 | 4,299 | |
2020 | 4,284 | |
2021 | 4,107 | |
2022 | 1,959 | |
2023 | 870 | |
Subsequent years | 55 | |
Total lease payments (1) | 15,574 | |
Less: Interest | 1,366 | |
Present value of lease liabilities | $ 14,208 |
Leases - Leases Weighted-Averag
Leases - Leases Weighted-Average Lease Terms and Interest Rates (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Operating Leases, Weighted Average Term in Years | 3 years 9 months 18 days |
Operating Leases, Weighted Average Interest Rate | 5.00% |
Finance Leases, Weighted Average Term in Years | 3 years 2 months 12 days |
Finance Leases, Weighted Average Interest Rate | 5.50% |
Leases - Cash Outflows of the L
Leases - Cash Outflows of the Leasing Activity (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 1,857 |
Operating cash flow from financing leases | 7 |
Financing cash flow from financing leases | $ 123 |
Leases - Income Generated as Le
Leases - Income Generated as Lessor (Details) $ in Millions | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Lessor, Operating Lease, Payments to be Received | $ 0.2 |
Lessor, Operating Lease, Assumptions and Judgments, Value of Underlying Asset, Amount | $ 0.4 |
Leases Minimum Contractual Laes
Leases Minimum Contractual Laese Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Contractual Minimum Lease Obligations [Abstract] | ||
Operating Lease Payments Due First Year | $ 4,032 | $ 2,574 |
Finance Lease, Liability, Payments, Due Next Twelve Months | 267 | 1,395 |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 201 | |
Operating Lease Payments Due Second Year | 4,044 | 2,369 |
Finance Lease, Liability, Payments, Due Year Two | 240 | 1,444 |
Capital Leases, Future Minimum Payments Due in Two Years | 155 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 3,981 | 2,349 |
Finance Lease, Liability, Payments, Due Year Three | 126 | 1,493 |
Capital Leases, Future Minimum Payments Due in Three Years | 91 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 2,008 | |
Finance Lease, Liability, Payments, Due Year Four | 79 | 760 |
Capital Leases, Future Minimum Payments Due in Four Years | 11 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 845 | 1,130 |
Finance Lease, Liability, Payments, Due Year Five | 25 | 0 |
Capital Leases, Future Minimum Payments Due in Five Years | 0 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 55 | 374 |
Finance Lease, Liability, Payments, Due after Year Five | 0 | 0 |
Capital Leases, Future Minimum Payments Due Thereafter | 0 | |
Operating Leases, Future Minimum Payments Due | 14,837 | 10,804 |
Finance Lease, Liability, Payments, Due | $ 737 | 5,092 |
Capital Leases, Future Minimum Payments Due | $ 458 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Deferred revenue | $ 700 | ||||||
Deferred expense | 300 | $ 400 | |||||
Decrease to retained earnings | $ (84,728) | $ (83,421) | $ (77,338) | $ (75,554) | $ (72,360) | $ (71,453) | |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Deferred revenue | 700 | ||||||
Decrease to retained earnings | $ 300 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 96,097 | $ 90,382 | $ 187,440 | $ 174,841 |
UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 76,119 | 71,626 | 150,167 | 139,944 |
CANADA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 19,978 | $ 18,756 | $ 37,273 | $ 34,897 |
Revenue Recognition - Product V
Revenue Recognition - Product Vertcal (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Product Revenue [Abstract] | ||||
Fastening Systems | 24.30% | 24.60% | 23.90% | 24.40% |
Fluid Power | 15.20% | 14.80% | 15.20% | 14.70% |
Specialty Chemicals | 11.70% | 12.30% | 13.10% | 13.40% |
Cutting Tools and Abrasives | 13.00% | 13.40% | 11.50% | 12.30% |
Electrical | 10.70% | 10.80% | 11.10% | 11.00% |
Aftermarket Automotive Supplies | 7.60% | 7.80% | 8.00% | 8.20% |
Safety | 4.70% | 4.70% | 4.70% | 4.70% |
Welding and Metal Repair | 1.60% | 2.10% | 1.70% | 2.00% |
Other Products | 11.20% | 9.50% | 10.80% | 9.30% |
Total Products | 100.00% | 100.00% | 100.00% | 100.00% |
Restricted Cash Restricted Ca_2
Restricted Cash Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Restricted Cash [Abstract] | |||
Restricted cash | $ 800 | $ 800 | $ 800 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Components of inventories | ||
Inventory, Gross | $ 60,144 | $ 58,215 |
Inventory Valuation Reserves | (4,784) | (5,328) |
Inventories, net | $ 55,360 | $ 52,887 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 20,079 | $ 19,614 |
Adjustment to original acquisition allocation | 2 | (17) |
Impact of foreign exchange | 713 | (793) |
Ending balance | $ 20,794 | $ 18,804 |
Intangible assets (Details)
Intangible assets (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 700 | $ 400 | |
Finite-Lived Intangible Assets, Gross | 15,668 | $ 15,204 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (2,773) | (2,092) | |
Finite-Lived Intangible Assets, Net | 12,895 | 13,112 | |
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 8,367 | 8,090 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,741) | (1,447) | |
Finite-Lived Intangible Assets, Net | 6,626 | 6,643 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 7,301 | 7,114 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,032) | (645) | |
Finite-Lived Intangible Assets, Net | $ 6,269 | $ 6,469 |
Loan Agreement Covenant (Detail
Loan Agreement Covenant (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Loan Agreement [Line Items] | |
Minimum Debt Service Coverage Ratio | 1.25 |
Maximum [Member] | Actual Value [Member] | |
Loan Agreement [Line Items] | |
Minimum Debt Service Coverage Ratio | 7.55 |
Maximum [Member] | Required Minimum Value [Member] | |
Loan Agreement [Line Items] | |
Minimum Debt Service Coverage Ratio | 1.10 |
Minimum [Member] | Actual Value [Member] | |
Loan Agreement [Line Items] | |
Minimum Debt Service Coverage Ratio | 1 |
Minimum [Member] | Required Minimum Value [Member] | |
Loan Agreement [Line Items] | |
Minimum Debt Service Coverage Ratio | 1 |
Loan Agreement (Details)
Loan Agreement (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Loan Agreement [Line Items] | |||
Excess cash capacity | $ 10,000 | ||
Credit Facility (Textual) [Abstract] | |||
Proceeds from (Repayments of) Lines of Credit | $ (2,000) | $ 1,528 | |
Eligible accounts receivables percentage | 85.00% | ||
Eligible accounts receivables past due days | 60 days | ||
Eligible inventory percentage | 60.00% | ||
Eligible inventory expected to be sold period | 18 months | ||
Maximum borrowing amount based on inventory | $ 20,000 | ||
Revolving Line of Credit | 8,823 | $ 10,823 | |
Line of Credit Facility, Remaining Borrowing Capacity | 30,700 | ||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 400 | $ 500 | |
Weighted average interest rate | 4.48% | 3.74% | |
Bank Overdrafts | $ 5,500 | ||
Working Capital Ratio | 1.35 | ||
Ratio of Indebtedness to Net Capital | 2.5 | ||
Minimum Debt Service Coverage Ratio | 1.25 | ||
Stock Repurchase Program, Authorized Amount | $ 7,500 | ||
Maximum | |||
Credit Facility (Textual) [Abstract] | |||
Spread on LIBOR | 1.85% | ||
Restricted Dividends | $ 7,000 | ||
Minimum | |||
Credit Facility (Textual) [Abstract] | |||
Spread on LIBOR | 1.50% | ||
Revolving Credit Facility [Member] | |||
Credit Facility (Textual) [Abstract] | |||
Credit facility, borrowing capacity | $ 40,000 | ||
Letter of Credit [Member] | |||
Credit Facility (Textual) [Abstract] | |||
Credit facility, borrowing capacity | 10,000 | ||
Bolt [Member] | |||
Credit Facility (Textual) [Abstract] | |||
Line of Credit Facility, Remaining Borrowing Capacity | 1,800 | ||
Secured Debt, Current | 3,700 | ||
Line of Credit [Member] | Revolving Credit Facility [Member] | |||
Credit Facility (Textual) [Abstract] | |||
Long-term Debt | $ 6,000 | ||
Prime Rate [Member] | |||
Credit Facility (Textual) [Abstract] | |||
Spread on LIBOR | 0.25% |
Reserve for Severance Activity
Reserve for Severance Activity in reserve (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Reserve for severance and related payments | ||
Balance at beginning of period | $ 359 | $ 483 |
Charged to earnings | 1,512 | 692 |
Cash paid | (409) | (532) |
Balance at end of the period | $ 1,462 | $ 643 |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation Details (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Stock-Based Compensation Details | ||
Employee Benefits and Share-based Compensation | $ 5,247 | $ 1,057 |
Minimum [Member] | ||
Stock-Based Compensation Details | ||
Equity Share Payout Range | 0 | |
Maximum [Member] | ||
Stock-Based Compensation Details | ||
Equity Share Payout Range | 59,922 | |
Share-based Compensation Award, Tranche Two [Member] | ||
Stock-Based Compensation Details | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 25,793 | |
Share Based Compensation Non Option Equity Instruments Granted Weighted Average Exercise Price | $ 30.54 |
Stock-Based Compensation Restri
Stock-Based Compensation Restricted Stock Awards (Details) | Jun. 30, 2019shares |
Director Grant [Domain] | |
Stock-Based Compensation Details | |
Restricted Stock Awards Outstanding | 16,781 |
Director [Member] | |
Stock-Based Compensation Details | |
Restricted Stock Awards Outstanding | 10,045 |
Stock-Based Compensation Market
Stock-Based Compensation Market Stock Units (Details) | 6 Months Ended |
Jun. 30, 2019shares | |
Maximum [Member] | |
Stock-Based Compensation Details | |
Equity Share Payout Range | 59,922 |
MSU [Member] | |
Stock-Based Compensation Details | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 39,948 |
Stock-Based Compensation Anti D
Stock-Based Compensation Anti Dilutive Options (Details) - shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stock Compensation Plan [Member] | |||
Stock-Based Compensation Details | |||
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | 80,000 | 9,524,000 | 63,210,000 |
Income Tax Income Tax (Details)
Income Tax Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax [Abstract] | ||||
Increase (Decrease) in Deferred Income Taxes | $ (1,591) | $ (1,380) | ||
Income Tax Expense (Benefit) | $ 509 | $ 1,319 | $ 2,182 | $ 1,967 |
Effective income tax rate | 28.60% | 30.70% |
Contingent Liability Continge_2
Contingent Liability Contingent Liability (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Loss Contingencies [Line Items] | |
Payments for Environmental Liabilities | $ 1.3 |
Environmental Exit Costs, Costs Accrued to Date | $ 0.1 |
Acquisitions Acquisition Detail
Acquisitions Acquisition Detail (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Gross | $ 0 | $ 157 | |||
Goodwill | $ 20,794 | 20,794 | $ 18,804 | $ 20,079 | $ 19,614 |
revenue from acquired business | 700 | 1,500 | |||
Bolt [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Gross | 5,200 | ||||
Trade Names [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 500 | $ 500 | |||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||||
Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 2,600 | $ 2,600 | |||
Finite-Lived Intangible Asset, Useful Life | 10 years |
Acquisitions Pro Forma Informat
Acquisitions Pro Forma Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Business Combinations [Abstract] | ||||||
Total revenue | $ 96,097 | $ 90,382 | $ 187,440 | $ 174,841 | ||
Net Sales Pro Forma | 96,097 | 91,261 | 187,440 | 176,469 | ||
Net Income Actual | 1,307 | $ 4,146 | 3,194 | $ 1,236 | 5,453 | 4,430 |
Net income Pro Forma | $ 1,307 | $ 3,308 | $ 5,453 | $ 4,632 |
Segment Information Segment R_2
Segment Information Segment Reporting (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Segment | Jun. 30, 2018USD ($) | |
Segment Reporting [Abstract] | ||||
Number of Reportable Segments | Segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 96,097 | $ 90,382 | $ 187,440 | $ 174,841 |
Gross profit | 51,043 | 49,131 | 99,966 | 95,349 |
Operating Income (Loss) | 1,623 | 5,554 | 7,167 | 7,391 |
Interest Expense | 146 | 264 | 343 | 504 |
Other Nonoperating Income (Expense) | 339 | (777) | 811 | (490) |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 1,816 | 4,513 | 7,635 | 6,397 |
Lawson [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 84,967 | 80,617 | 167,434 | 157,043 |
Gross profit | 46,757 | 45,297 | 92,376 | 88,219 |
Operating Income (Loss) | 654 | 4,794 | 6,113 | 6,284 |
Bolt [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 11,130 | 9,765 | 20,006 | 17,798 |
Gross profit | 4,286 | 3,834 | 7,590 | 7,130 |
Operating Income (Loss) | 969 | 760 | 1,054 | 1,107 |
Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 85,996 | 80,397 | 167,911 | 155,367 |
Product [Member] | Lawson [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 74,866 | 70,632 | 147,905 | 137,569 |
Gross profit | 41,130 | 38,707 | 81,734 | 75,549 |
Service [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 10,101 | 9,985 | 19,529 | 19,474 |
Service [Member] | Lawson [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit | $ 5,627 | $ 6,590 | $ 10,642 | $ 12,670 |