CLEVELAND – LESCO Inc., a provider of products for the professional lawn care and golf markets, announced today, Oct. 26, 2000, that revenues for the third quarter increased 6.6 percent to a record $139.6 million compared with $130.9 for the same period last year.
Earnings for the quarter, however were down to $4.2 million, compared with $5.8 million for 1999’s third quarter. According to the company, the 2000 third quarter was impacted by $315,000 of non-recurring costs associated with an acquisition that was not completed.
Additionally, LESCO cited severe drought in the South, unusually cool and wet weather in the North and production inefficiencies at the plant that produces Novex, LESCO’s ‘smart’ fertilizer, as negatively impacting both earnings and sales growth. Net income for the nine months of 2000 was $13.0 million, equal to the $13.0 million earned for the same period in 1999.
William Foley, LESCO chairman, president and CEO, said, "The third quarter was a challenge for the company. Despite our record sales performance, the weather we faced reduced demand for many of the products typically sold during the summer months in many regions of the country.
"We suspended advanced discussions with an acquisition candidate late in the quarter when it became apparent in the due diligence process that the transaction would be dilutive to shareholders. We continue to be interested in western expansion and are weighing our build versus buy options," he continued.
LESCO will host a conference call with investors today, Oct. 26, at 10:00 a.m. (EDT), which will be simultaneously webcast through www.lesco.com. A replay of the conference call is available through the site or beginning at l:00 p.m. (EDT) and continuing through midnight Oct. 30 by calling 719-457-0820 (confirmation code 431462).