HOUSTON--(BUSINESS WIRE)--
DXP Enterprises, Inc. (NASDAQ: DXPE) today announced that
effective June 25, 2018, it has successfully repriced its $248.8 million
Term Loan B.
Under the amended term loan, the interest rate has been reduced by 75
basis points to LIBOR + 4.75 percent (the LIBOR floor of 1.00 percent is
unchanged), from LIBOR + 5.50 percent, which is expected to generate
annualized interest expense savings of approximately $1.9 million based
on the current principal balance outstanding.
“In-line with our commitment to further improving the financial strength
of DXP, we are announcing the successful repricing of our term loan. We
will continually explore opportunities to lower borrowing costs as we
reduce the financial leverage within our capital structure. We
appreciate our lenders’ continued support of DXP,” said Kent Yee, CFO of
DXP Enterprises, Inc.
The Company expects full year 2018 interest expense to be favorably
impacted by approximately $0.93 million, reflecting the benefit of a
lower interest rate. This will be offset by one-time transaction fees
and incremental and accelerated amortization of debt issuance costs.
Non-GAAP Financial Measures
DXP supplements reporting of net income with non-GAAP measurements,
including EBITDA, Adjusted EBITDA and free cash flow. This supplemental
information should not be considered in isolation or as a substitute for
the unaudited GAAP measurements. Additional information regarding EBITDA
and free cash flow referred to in this press release are included below
under "--Unaudited Reconciliation of Non-GAAP Financial Information."
The Company believes EBITDA provides additional information about: (i)
operating performance, because it assists in comparing the operating
performance of the business, as it removes the impact of non-cash
depreciation and amortization expense as well as items not directly
resulting from core operations such as interest expense and income taxes
and (ii) the performance and the effectiveness of operational
strategies. Additionally, EBITDA performance is a component of a measure
of the Company’s financial covenants under its credit facility.
Furthermore, some investors use EBITDA as a supplemental measure to
evaluate the overall operating performance of companies in the industry.
Management believes that some investors’ understanding of performance is
enhanced by including this non-GAAP financial measure as a reasonable
basis for comparing ongoing results of operations. By providing this
non-GAAP financial measure, together with a reconciliation from net
income, the Company believes it is enhancing investors’ understanding of
the business and results of operations, as well as assisting investors
in evaluating how well the Company is executing strategic initiatives.
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading products and service distributor that
adds value and total cost savings solutions to industrial customers
throughout the United States, Canada, Mexico and Dubai. DXP provides
innovative pumping solutions, supply chain services and maintenance,
repair, operating and production ("MROP") services that emphasize and
utilize DXP’s vast product knowledge and technical expertise in rotating
equipment, bearings, power transmission, metal working, industrial
supplies and safety products and services. DXP's breadth of MROP
products and service solutions allows DXP to be flexible and
customer-driven, creating competitive advantages for our customers.
DXP’s business segments include Service Centers, Innovative Pumping
Solutions and Supply Chain Services. For more information, go to www.dxpe.com.
The Private Securities Litigation Reform Act of 1995 provides a
“safe-harbor” for forward-looking statements. Certain information
included in this press release (as well as information included in oral
statements or other written statements made by or to be made by the
Company) contains statements that are forward-looking. Such
forward-looking information involves important risks and uncertainties
that could significantly affect anticipated results in the future; and
accordingly, such results may differ from those expressed in any
forward-looking statement made by or on behalf of the Company. These
risks and uncertainties include, but are not limited to; ability to
obtain needed capital, dependence on existing management, leverage and
debt service, domestic or global economic conditions, and changes in
customer preferences and attitudes. In some cases, you can identify
forward-looking statements by terminology such as, but not limited to,
“may,” “will,” “should,” “intend,” “expect,” “plan,” “anticipate,”
“believe,” “estimate,” “predict,” “potential,” “goal,” or “continue” or
the negative of such terms or other comparable terminology. For more
information, review the Company’s filings with the Securities and
Exchange Commission.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20180626006279/en/
DXP Enterprises, Inc.
Kent Yee, 713-996-4700
Senior Vice
President, CFO
www.dxpe.com
Source: DXP Enterprises, Inc.