LESCO Reports Record Net Income For Fiscal Year

Net sales for the 12 months increased 10.5 percent to a record $460.4 million, compared with net sales of $416.7 million for the same period last year. Sales of consumable goods – fertilizers, turf protection products and turfgrass seed – made up the majority of that figure with $385.4 million, an increase of 9.7 percent compared with a year ago. Sales of hard goods – commercial lawn care equipment and parts – were $75.0 million, an increase of 14.6 percent compared with a year ago.

LESCO noted that positive factors for profitability included improvements in inventory control, cost controls and the company’s sales mix. The company also cited improved performance at Commercial Turf Products Ltd., its 50/50 commercial equipment joint venture with MTD Products Inc., as another factor for 1999’s profits.

"Throughout the year we focused our energies toward improving our profitability," said William Foley, LESCO chairman, president and CEO. "We are encouraged by our progress and remain very focused on improving our return on capital. We look for continued improvement in our 2000 results."

Part of the company’s strategy for continuing improvement for 2000 is already in place with the Feb. 7 announcement that LESCO has divided the company into three divisions – the Lawn Care Division, the Golf Division and the Product Supply Division.

The company also reported that its net loss in the fourth quarter of 1999 narrowed to $1.3 million, compared with a net loss of $2.4 million, over the same 1998 period. According to the company, LESCO typically reports a loss in the last three months of its fiscal year because of the seasonality of its business.

Net sales for the 1999 fourth quarter increased 5.4 percent to $95.6 million, compared with net sales of $90.8 million for the same quarter a year ago. According to LESCO, sales were somewhat impacted by poor weather early in the quarter. For the quarter, sales of consumable goods were $82.7 million, an increase of 4.8 percent over the fourth quarter a year ago. Sales of hard goods were $12.9 million, an increase of 9.5 percent over the comparable period a year ago.

For more information about LESCO, visit their web site at www.lesco.com.

For an in-depth conversation between William Foley and Lawn & Landscape Publisher Cindy Code, please click here: Conversation Series: Bill Foley, LESCO.