HOUSTON--(BUSINESS WIRE)--
DXP Enterprises, Inc. (NASDAQ: DXPE) today announced net income
of $13.7 million for the second quarter ended June 30, 2013, with
diluted earnings per share of $0.90 compared to net income of $12.2
million and diluted earnings per share of $0.80 for the second quarter
of 2012. Sales increased $46.0 million, or 17.6%, to approximately
$307.9 million from $261.9 million for the same period in 2012. After
excluding sales from acquisitions of $45.3 million, on a same store
sales basis, sales for the second quarter of 2013 increased $0.7
million, or 0.3% from 2012 on a same store sales basis.
Net income for the six months ended June 30, 2013 was $27.0 million,
with diluted earnings per share of $1.77 compared to net income of $23.8
million and diluted earnings per share of $1.57 for the first half of
2012. Sales for the six months ended June 30, 2013 increased $83.9
million, or 16.3%, to approximately $598.0 million from $514.2 million
for the same period in 2012.
Net income for the second quarter sequentially increased 3.9% from $13.2
million to $13.7 million in the second quarter of 2013. Likewise, sales
sequentially increased 6.2% from $290.1 million in the first quarter to
$307.9 million in the second quarter.
David R. Little, Chairman and Chief Executive Officer, remarked, "We are
pleased with our second quarter results and see positive momentum in
parts of our businesses. During the quarter, we delivered organic growth
consistent with our expectations outlined in the first quarter. We
completed two acquisitions in the second quarter, Natpro and Tucker
Tool. DXP’s Service Centers, Supply Chain Services and Innovative
Pumping Solutions are focused on battling for market share in today’s
choppy environment while not losing sight of profitability and cash flow
generation.
As we look to the second half of the year, we maintain a conservative
macro outlook, while remaining confident in our ability to grow
organically and via acquisitions. We will continue to fund growth and
initiatives that we believe will strengthen DXP's presence in North
America."
Mac McConnell, Senior Vice President and CFO, added, "We are pleased to
report sequential sales and earnings growth. While we experienced
organic sequential growth, we were impacted by one-time acquisition
costs and seasonality in Canada. Our leverage ratio under our credit
facility at June 30, 2013 was a modest 1.9:1. Subsequent to the quarter
end, we closed two additional acquisitions, Alaska Pump and Tool-Tech."
DXP will host a conference call to be web cast live on the Company’s
website (www.dxpe.com)
at 5:00 P.M. Eastern time today.
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 and Sonora, Mexico. 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, 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.For more information, review
the Company’s filings with the Securities and Exchange Commission.
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DXP ENTERPRISES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (in thousands, except per share amounts) (unaudited) |
| | | | | | | | | | | | |
|
| | | Three Months Ended June 30, | | | | Six Months Ended June 30, |
| | | 2013 | | | 2012 | | | | 2013 | | | 2012 |
| | | | | | | | | | | | |
|
|
Sales
| | |
$
|
307,942
| | |
$
|
261,894
| | | |
$
|
598,039
| | |
$
|
514,181
| |
|
Cost of sales
| | |
|
216,427
| | |
|
185,265
| | | |
|
417,417
| | |
|
366,078
|
|
|
Gross profit
| | | |
91,515
| | | |
76,629
| | | | |
180,622
| | | |
148,103
| |
|
Selling, general and
| | | | | | | | | | | | | | | | | | |
|
administrative expense
| | |
|
68,250
| | |
|
55,782
| | | |
|
134,653
| | |
|
107,351
|
|
|
Operating income
| | | |
23,265
| | | |
20,847
| | | | |
45,969
| | | |
40,752
| |
|
Other expense (income)
| | | |
21
| | | |
3
| | | | |
22
| | | |
(12
|
)
|
|
Interest expense
| | |
|
1,689
| | |
|
762
| | | |
|
3,316
| | |
|
1,591
|
|
|
Income before income taxes
| | | |
21,555
| | | |
20,082
| | | | |
42,631
| | | |
39,173
| |
|
Provision for income taxes
| | |
|
7,806
| | |
|
7,905
| | | |
|
15,650
| | |
|
15,350
|
|
|
Net income
| | | |
13,749
| | | |
12,177
| | | | |
26,981
| | | |
23,823
| |
|
Preferred stock dividend
| | |
|
22
| | |
|
22
| | | |
|
45
| | |
|
45
|
|
|
Net income attributable to
| | | | | | | | | | | | | | | | | | |
|
common shareholders
| | |
$
|
13,727
| | |
$
|
12,155
| | | |
$
|
26,936
| | |
$
|
23,778
|
|
| | | | | | | | | | | | |
|
|
Basic earnings per share
| | |
$
|
0.95
| | |
$
|
0.84
| | | |
$
|
1.87
| | |
$
|
1.66
|
|
|
Weighted average common
| | | | | | | | | | | | | | | | | | |
|
shares outstanding
| | |
|
14,451
| | |
|
14,392
| | | |
|
14,424
| | |
|
14,360
|
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|
Diluted earnings per share
| | |
$
|
0.90
| | |
$
|
0.80
| | | |
$
|
1.77
| | |
$
|
1.57
|
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|
Weighted average common shares
| | | | | | | | | | | | | | | | | | |
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and common equivalent
| | | | | | | | | | | | | | | | | | |
|
shares outstanding
| | |
|
15,291
| | |
|
15,232
| | | |
|
15,264
| | |
|
15,200
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SEGMENT DATA
(in thousands)
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Three Months Ended June 30,
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Six Months Ended June 30,
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Service
Centers
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IPS
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SCS
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Total
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Service
Centers
|
|
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IPS
|
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SCS
|
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Total
|
| 2013 |
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|
|
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Sales
|
|
|
|
$
|
217,925
|
|
|
$
|
52,954
|
|
|
$
|
37,063
|
|
|
$
|
307,942
|
|
|
|
$
|
428,023
|
|
|
$
|
94,477
|
|
|
$
|
75,539
|
|
|
$
|
598,039
|
|
Operating income for reportable segments
|
|
|
|
$
|
23,376
|
|
|
$
|
8,090
|
|
|
$
|
3,160
|
|
|
$
|
34,626
|
|
|
|
$
|
48,420
|
|
|
$
|
15,208
|
|
|
$
|
6,347
|
|
|
$
|
69,975
|
|
|
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|
| 2012 |
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|
|
|
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|
|
|
|
|
|
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Sales
|
|
|
|
$
|
184,106
|
|
|
$
|
35,177
|
|
|
$
|
42,611
|
|
|
$
|
261,894
|
|
|
|
$
|
359,178
|
|
|
$
|
74,612
|
|
|
$
|
80,391
|
|
|
$
|
514,181
|
|
Operating income for reportable segments
|
|
|
|
$
|
22,491
|
|
|
$
|
6,939
|
|
|
$
|
3,902
|
|
|
$
|
33,332
|
|
|
|
$
|
41,045
|
|
|
$
|
15,187
|
|
|
$
|
6,719
|
|
|
$
|
62,951
|
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|
|
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|
| | |
|
| | |
|
| | |
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| | |
|
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Unaudited Reconciliation of Non-GAAP Financial Information
The following table is a reconciliation of EBITDA*, a non-GAAP financial
measure, to income before income taxes, calculated and reported in
accordance with U.S. GAAP (in thousands):
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Three months ended
June 30,
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Six months ended
June 30,
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2013
|
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|
|
2012
|
|
|
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2013
|
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2012
|
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|
|
|
|
|
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|
|
|
|
|
|
|
|
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Income before income taxes
|
|
|
|
|
$
|
21,555
|
|
|
|
$
|
20,082
|
|
|
|
$
|
42,631
|
|
|
|
$
|
39,173
|
|
Plus interest expense
|
|
|
|
|
|
1,689
|
|
|
|
|
762
|
|
|
|
|
3,316
|
|
|
|
|
1,591
|
|
Plus depreciation and amortization
|
|
|
|
|
|
5,602
|
|
|
|
|
3,661
|
|
|
|
|
10,492
|
|
|
|
|
6,809
|
|
EBITDA*
|
|
|
|
|
$
|
28,846
|
|
|
|
$
|
24,505
|
|
|
|
$
|
56,439
|
|
|
|
$
|
47,573
|
*EBITDA - earnings before interest, taxes, depreciation and
amortization
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DXP Enterprises, Inc.
Mac McConnell, 713-996-4700
Senior Vice
President, Finance & CFO
www.dxpe.com
Source: DXP Enterprises, Inc.