CLEVELAND – LESCO Inc., a provider of products for the professional turf care market, reported July 26 that the company reached record sales and earnings for the second quarter and for the six months ended June 30 with growth reflected in all major product categories in the first half.
Net sales for the second quarter increased 5 percent to a record $158.3 million, compared with net sales of $150.7 million for the same period last year. Net income for the quarter increased 11 percent to a record $10.0 million compared with net income of $9.0 million in the same period a year ago.
LESCO also noted its record quarter-over-quarter improvement was achieved while it absorbed $1.0 million of unanticipated start-up costs in the second quarter at its new technology NOVEX fertilizer plant near Richmond, Va.
Net sales for the six months increased 10 percent to a record $257.2 million, compared with net sales of $233.8 million in the comparable period a year ago. Net income for the six-month period increased 22 percent to a record $8.8 million, compared with net income of $7.2 million in the first six months of 1999.
"Second quarter and six-month results were driven by improved sales mix, cost controls and price increases on selective products," said William Foley, LESCO chairman, president and CEO.
All three of LESCO's segments participated in the continuing improvement in the company's profitability, with first half operating margins one-half of a percentage point higher than in the first half of 1999.
LESCO recognized a profit of $121,000 from its 50/50 commercial equipment joint venture Commercial Turf Products Ltd. (CTP) compared to a $303,000 loss in the first half last year. Due to production demand and inventory reduction efforts, the company expects a modest loss from CTP for the full year, which is in line with LESCO's operating plan.
LESCO plan for the rest of 2000 is to significantly increase cash flow. Therefore, the company anticipates that year-end inventories will be reduced to below $90 million at year end – at least $10 million lower than at year-end 1999 – strengthening LESCO’s balance sheet and reducing its interest expense.
LESCO distributes specialty products for the professional turf care market through 234 LESCO Service Centers®, 75 LESCO Stores-on-Wheels®, lawn care service representatives and other direct sales efforts.
For more information about LESCO visit the company’s web site at www.lesco.com.