HOUSTON--(BUSINESS WIRE)--
DXP Enterprises, Inc. (NASDAQ:DXPE) today announced net income of
$16.4 million for the third quarter ended September 30, 2013, with
diluted earnings per share of $1.07 compared to net income of $13.1
million and diluted earnings per share of $0.86 for the third quarter of
2012. Sales increased $39.8 million, or 13.7%, to approximately $329.7
million from $289.9 million for the same period in 2012. After excluding
sales from acquisitions of $28.9 million, on a same store sales basis,
sales for the third quarter of 2013 increased $10.9 million, or 3.8%
from 2012 on a same store sales basis.
Net income for the nine months ended September 30, 2013 was $43.3
million, with diluted earnings per share of $2.84 compared to net income
of $36.9 million and diluted earnings per share of $2.43 for the first
nine months of 2012. Sales for the nine months ended September 30, 2013
increased $123.7 million, or 15.4%, to approximately $927.8 million from
$804.1 million for the same period in 2012.
Net income for the third quarter sequentially increased 18.9% from $13.7
million to $16.4 million in the third quarter of 2013. Likewise, sales
sequentially increased 7.1% from $307.9 million in the second quarter to
$329.7 million in the third quarter.
David R. Little, Chairman and Chief Executive Officer remarked, “Our
DXPeople continue to execute well, delivering solid revenue growth and
margin improvement. We are pleased to report third quarter sales
increases of 7% sequentially and 14% year over year. EBITDA margins
continue to move in the right direction having improved 38 basis points
since the beginning of the year. Strong execution enabled DXP to achieve
solid results again this quarter. We believe our focus on growth,
productivity and efficiency, combined with our optimism on the
acquisition front, position us well for the balance of 2013 and beyond.”
Mac McConnell, Senior Vice President and CFO, added, “We are pleased
with our third quarter financial performance. Specifically, we are
realizing solid free cash flow, having spent over $19 million on
acquisitions while also paying down over $11 million in debt during the
quarter. Through the first nine months of 2013, DXP spent approximately
$61 million on acquisitions achieving our goal of 10% inorganic growth,
all while deleveraging the balance sheet. Our leverage ratio under our
credit facility at September 30, 2013 is 1.8:1, giving us substantial
room for future acquisitions.”
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, Canada and 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.
|
|
DXP ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(in thousands,
except per share amounts) (unaudited) |
|
|
|
| Three Months Ended
September 30, |
| Nine Months Ended
September 30, |
| | 2013 |
| 2012 | | 2013 |
| 2012 |
| | | | | | | |
|
|
Sales
| |
$
|
329,719
| | |
$
|
289,923
| | |
$
|
927,758
| | |
$
|
804,104
| |
|
Cost of sales
| |
|
232,598
|
| |
|
206,414
|
| |
|
650,015
|
| |
|
572,492
|
|
|
Gross profit
| | |
97,121
| | | |
83,509
| | | |
277,743
| | | |
231,612
| |
Selling, general and administrative expense
| |
|
70,223
|
| |
|
58,995
|
| |
|
204,876
|
| |
|
166,346
|
|
|
Operating income
| | |
26,898
| | | |
24,514
| | | |
72,867
| | | |
65,266
| |
|
Other income, net
| | |
(38
|
)
| | |
(21
|
)
| | |
(16
|
)
| | |
(33
|
)
|
|
Interest expense
| |
|
1,614
|
| |
|
2,287
|
| |
|
4,930
|
| |
|
3,878
|
|
|
Income before income taxes
| | |
25,322
| | | |
22,248
| | | |
67,953
| | | |
61,421
| |
|
Provision for income taxes
| |
|
8,970
|
| |
|
9,156
|
| |
|
24,620
|
| |
|
24,506
|
|
|
Net income
| | |
16,352
| | | |
13,092
| | | |
43,333
| | | |
36,915
| |
|
Preferred stock dividend
| |
|
23
|
| |
|
23
|
| |
|
68
|
| |
|
68
|
|
Net income attributable to common shareholders
| |
$
|
16,329
|
| |
$
|
13,069
|
| |
$
|
43,265
|
| |
$
|
36,847
|
|
| | | | | | | |
|
|
Basic earnings per share
| |
$
|
1.13
|
| |
$
|
0.91
|
| |
$
|
3.00
|
| |
$
|
2.56
|
|
Weighted average common shares outstanding
| |
|
14,444
|
| |
|
14,411
|
| |
|
14,430
|
| |
|
14,375
|
|
|
Diluted earnings per share
| |
$
|
1.07
|
| |
$
|
0.86
|
| |
$
|
2.84
|
| |
$
|
2.43
|
|
Weighted average common shares and common equivalent shares
outstanding
| |
|
15,284
|
| |
|
15,251
|
| |
|
15,270
|
| |
|
15,215
|
|
|
|
|
|
SEGMENT DATA
(in thousands)
|
|
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, |
|
|
| Service
Centers |
| IPS |
| SCS |
| Total |
| Service
Centers |
| IPS |
| SCS |
| Total |
| 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
232,529
|
|
$
|
61,094
|
|
$
|
36,096
|
|
$
|
329,719
|
|
$
|
660,552
|
|
$
|
155,572
|
|
$
|
111,634
|
|
$
|
927,758
|
|
Operating income for reportable segments
|
|
$
|
27,557
|
|
$
|
9,059
|
|
$
|
3,202
|
|
$
|
39,818
|
|
$
|
75,976
|
|
$
|
24,267
|
|
$
|
9,550
|
|
$
|
109,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
212,497
|
|
$
|
38,854
|
|
$
|
38,572
|
|
$
|
289,923
|
|
$
|
571,675
|
|
$
|
113,466
|
|
$
|
118,963
|
|
$
|
804,104
|
|
Operating income for reportable segments
|
|
$
|
26,410
|
|
$
|
7,227
|
|
$
|
2,781
|
|
$
|
36,418
|
|
$
|
67,455
|
|
$
|
22,414
|
|
$
|
9,500
|
|
$
|
99,369
|
|
|
The following table presents reconciliations of operating income for
reportable segments to the consolidated income before taxes (in
thousands):
|
|
|
| Three Months Ended
September 30, |
| Nine Months Ended
September 30, |
| | 2013 |
| 2012 | | 2013 |
| 2012 |
|
Operating income for reportable segments
| |
$
|
39,818
| | |
$
|
36,418
| | |
$
|
109,793
| | |
$
|
99,369
| |
|
Adjustment for:
| | | | | | | | |
|
Amortization of intangibles
| | |
3,434
| | | |
3,474
| | | |
9,221
| | | |
8,264
| |
|
Corporate and other expense, net
| |
|
9,486
|
| |
|
8,430
|
| |
|
27,705
|
| |
|
25,839
|
|
|
Total operating income
| | |
26,898
| | | |
24,514
| | | |
72,867
| | | |
65,266
| |
|
Interest expense, net
| | |
1,614
| | | |
2,287
| | | |
4,930
| | | |
3,878
| |
|
Other income, net
| |
|
(38
|
)
| |
|
(21
|
)
| |
|
(16
|
)
| |
|
(33
|
)
|
|
Income before income taxes
| |
$
|
25,322
|
| |
$
|
22,248
|
| |
$
|
67,953
|
| |
$
|
61,421
|
|
|
|
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)
|
|
|
|
| Three months ended
September 30, |
| Nine months ended
September 30, |
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
$
|
25,322
|
|
$
|
22,248
|
|
$
|
67,953
|
|
$
|
61,421
|
|
Plus interest expense
|
|
|
1,614
|
|
|
2,287
|
|
|
4,930
|
|
|
3,878
|
|
Plus depreciation and amortization
|
|
|
5,663
|
|
|
6,299
|
|
|
16,155
|
|
|
13,108
|
|
EBITDA*
|
|
$
|
32,599
|
|
$
|
30,834
|
|
$
|
89,038
|
|
$
|
78,407
|
|
|
*EBITDA - earnings before interest, taxes, depreciation and
amortization
|
|
|
DXP Enterprises, Inc.
Mac McConnell, 713-996-4700
Senior Vice
President, Finance & CFO
www.dxpe.com
Source: DXP Enterprises, Inc.