LESCO announces second quarter operating results
LESCO, Inc., announced second quarter operating results, which included one-time pre-tax charges to markdown discontinued inventory for immediate liquidation ($9.6 million), to rationalize its manufacturing invested capital by announcing its intention to sell two of its five fertilizer plants ($12.0 million) and to record severance costs ($1.8 million). Of the total pre-tax charges of $23.4 million, non-cash charges totaled $18.8 million (inventory of $9.6 million and asset impairment of $9.2 million).
The Company currently manages and carries inventory for over 22,000 stock keeping units (SKUs). The inventory markdown and liquidation will eliminate over 12,000 SKUs resulting in a remaining SKU count of approximately 10,000 active and managed items. Approximately 6,500 of the remaining SKUs are replacement parts for lawncare equipment.
Sales for the second quarter increased 1.4 percent to $166.5 million from $164.1 million in 2001. Lawn Care sales for the quarter increased to $96.4 million, up 5.2 percent from the comparable period of 2001 ($91.7 million). Golf sales and National Account sales declined 4.3 percent and 1.5 percent, respectively, during the second quarter.