Lawson Products Inc. (NASDAQ:LAWS) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 09:00 am ET
Good morning, ladies and gentlemen, and welcome to the Lawson Products Second Quarter 2020 Earnings Call. This call will be hosted by Michael DeCata, Lawson Products' President and Chief Executive Officer, and Ron Knutson, Lawson Products' Chief Financial Officer. During this call, they will be providing an update on the business, as well as covering relevant financial and operational information. Then there will be time for questions-and-answers.
Please note that statements on this call and in the press release contain forward-looking statements concerning goals, beliefs, expectations, strategies, plans, future operating results and underlying assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from those described.
In addition, statements made during this call are based on the company's views as of today. The company anticipates that future developments may cause those views to change. Please consider the information presented in that light. The company may at some point elect to update the forward-looking statements made today, but specifically disclaims any obligation to do so.
This call is being audio simulcast on the Internet via Lawson Products Investor Relations page on the company's website, lawsonproducts.com. A replay of the webcast will be available on the website through August 31, 2020.
I will now turn the call over to Lawson Products' CEO, Mike DeCata.
Michael G. DeCata
Good morning, and thank you for joining the call. This morning, I will comment on the second quarter and our actions that we've taken to drive sales and earnings in this challenging economic environment, followed by our plans going forward. Ron Knutson, our CFO, will provide a more detailed review of our second quarter financial results, followed by your questions.
The COVID-19 pandemic had an unprecedented adverse effect on the US economy starting in March. However, Lawson is weathering this storm, and we believe will come through this a stronger company in the future. While our second quarter revenues reflected a drop-off early in the quarter, in most of our customer categories, we realized a nice recovery in May, and have seen continued sequential improvement in the following months.
Our strategy during this quarter was to ensure a safe working environment for our employees, support our customer and supplier relationships, all while protecting the financial position of the company and long-term interests of our shareholders.
I'd be remiss if I didn't acknowledge the hard work and sacrifice our team members made through this challenging quarter. In that respect, this quarter was a great example of how the most important asset of the organization, our employees, stepped up and allowed us to continue to serve our customers, all while maintaining the financial strength of the organization. We have all learned a great deal during this environment.
Rapidly modifying our sales by employing multiple channels to market; protecting a portion of our sales rep compensation; managing our supply chain by working to develop new PPE sources; and re-engineering administrative processes will provide future benefits to our organization. We believe these actions, their near-term results and