DXP Enterprises, Inc. Reports Second Quarter 2024 Results
DXP Enterprises, Inc. (NASDAQ: DXPE) reported strong financial results for Q2 2024. Sales increased 8.0% sequentially to $445.6 million, up 4.1% year-over-year. Net income was $16.7 million, with earnings per diluted share at $1.00. Adjusted EBITDA reached $48.2 million, a 10.8% margin. The company saw growth across its segments: Service Center ($306.5M), Innovative Pumping Solutions ($73.4M), and Supply Chain Services ($65.7M). DXP completed four acquisitions through Q2, enhancing its water and industrial rotating equipment capabilities. With a strong balance sheet and a secured leverage ratio of 2.64:1.0, DXP plans to close at least two more acquisitions in H2 2024, demonstrating its commitment to strategic growth and diversification.
DXP Enterprises, Inc. (NASDAQ: DXPE) ha riportato risultati finanziari solidi per il secondo trimestre del 2024. Le vendite sono aumentate dell'8,0% rispetto al trimestre precedente, raggiungendo $445,6 milioni, registrando un incremento del 4,1% rispetto all'anno precedente. Il reddito netto è stato di $16,7 milioni, con un utile per azione diluita di $1,00. L'EBITDA rettificato ha raggiunto $48,2 milioni, con un margine del 10,8%. L'azienda ha visto crescita nei suoi segmenti: Centro Servizi ($306,5M), Soluzioni Innovative di Pompa ($73,4M) e Servizi della Supply Chain ($65,7M). DXP ha completato quattro acquisizioni fino al secondo trimestre, migliorando le sue capacità nel settore dell'acqua e delle attrezzature rotanti industriali. Con un bilancio solido e un rapporto di indebitamento sicuro di 2,64:1,0, DXP prevede di chiudere almeno altre due acquisizioni nel secondo semestre del 2024, dimostrando il suo impegno per la crescita strategica e la diversificazione.
DXP Enterprises, Inc. (NASDAQ: DXPE) reportó sólidos resultados financieros para el segundo trimestre de 2024. Las ventas aumentaron un 8.0% secuencialmente a $445.6 millones, lo que representa un incremento del 4.1% en comparación con el año anterior. El ingreso neto fue de $16.7 millones, con ganancias por acción diluida de $1.00. El EBITDA ajustado alcanzó $48.2 millones, con un margen del 10.8%. La compañía experimentó crecimiento en todos sus segmentos: Centro de Servicios ($306.5M), Soluciones de Bombeo Innovadoras ($73.4M) y Servicios de la Cadena de Suministro ($65.7M). DXP completó cuatro adquisiciones hasta el segundo trimestre, mejorando sus capacidades en equipos rotativos industriales y de agua. Con un balance sólido y un ratio de apalancamiento asegurado de 2.64:1.0, DXP planea cerrar al menos dos adquisiciones más en el segundo semestre de 2024, demostrando su compromiso con el crecimiento estratégico y la diversificación.
DXP Enterprises, Inc. (NASDAQ: DXPE)는 2024년 2분기 강력한 재무 결과를 보고했습니다. 매출은 이전 분기 대비 8.0% 증가하여 4억 4,560만 달러에 달했습니다, 전년 대비 4.1% 성장한 수치입니다. 순이익은 1,670만 달러이며, 희석 주당 순이익은 1.00 달러입니다. 조정된 EBITDA는 4,820만 달러로, 10.8%의 마진을 기록했습니다. 회사는 서비스 센터($3억 6,500만), 혁신적인 펌프 솔루션($7,340만), 공급망 서비스($6,570만) 등 모든 부문에서 성장을 경험했습니다. DXP는 2분기까지 4건의 인수합병을 완료하며 물 및 산업용 회전 장비 역량을 강화했습니다. 강력한 대차대조표와 2.64:1.0의 안전한 레버리지 비율을 유지하며, DXP는 2024년 하반기 중 최소 두 건의 추가 인수를 계획하고 있습니다. 이는 전략적 성장 및 다각화에 대한 그들의 의지를 보여줍니다.
DXP Enterprises, Inc. (NASDAQ: DXPE) a rapporté de solides résultats financiers pour le deuxième trimestre 2024. Les ventes ont augmenté de 8,0 % par rapport au trimestre précédent pour atteindre 445,6 millions de dollars, en hausse de 4,1 % par rapport à l'année précédente. Le bénéfice net s'est élevé à 16,7 millions de dollars, avec un bénéfice par action diluée de 1,00 dollar. L'EBITDA ajusté a atteint 48,2 millions de dollars, avec une marge de 10,8 %. L'entreprise a connu une croissance dans tous ses segments : Centre de Services (306,5 millions $), Solutions de Pompage Innovantes (73,4 millions $) et Services de Chaîne d'Approvisionnement (65,7 millions $). DXP a complété quatre acquisitions jusqu'au deuxième trimestre, améliorant ses capacités en matière d'équipements tournants d'eau et industriels. Avec un bilan solide et un ratio delevage sécurisé de 2,64:1,0, DXP prévoit de réaliser au moins deux autres acquisitions dans la seconde moitié de 2024, démontrant ainsi son engagement envers la croissance stratégique et la diversification.
DXP Enterprises, Inc. (NASDAQ: DXPE) hat für das zweite Quartal 2024 starke finanziellen Ergebnisse gemeldet. Der Umsatz stieg im Vergleich zum vorangegangenen Vierteljahr um 8,0% auf 445,6 Millionen US-Dollar, was einem Anstieg von 4,1% im Jahresvergleich entspricht. Der Nettogewinn betrug 16,7 Millionen US-Dollar, mit einem Ergebnis pro verwässerter Aktie von 1,00 US-Dollar. Das bereinigte EBITDA erreichte 48,2 Millionen US-Dollar bei einer Marge von 10,8%. Das Unternehmen verzeichnete in seinen Segmenten Wachstum: Service Center (306,5 Millionen US-Dollar), Innovative Pumplösung (73,4 Millionen US-Dollar) und Lieferkettenservices (65,7 Millionen US-Dollar). DXP hat bis zum 2. Quartal vier Übernahmen abgeschlossen, die die Fähigkeiten im Bereich Wasser- und Industrie- rotierende Ausrüstung verbessert haben. Mit einer soliden Bilanz und einem gesicherten Verschuldungsgrad von 2,64:1,0 plant DXP, in der zweiten Hälfte des Jahres 2024 mindestens zwei weitere Übernahmen abzuschließen, was das Engagement für strategisches Wachstum und Diversifizierung unterstreicht.
- Sales increased 8.0% sequentially and 4.1% year-over-year to $445.6 million
- Adjusted EBITDA grew 19.5% sequentially to $48.2 million, with a 10.8% margin
- Completed four strategic acquisitions, strengthening water and industrial rotating equipment segments
- Free Cash Flow improved to $5.9 million, compared to $(4.2) million in Q2 2023
- Sequential organic sales growth of 5.3% or $21.3 million
- Net income decreased to $16.7 million from $19.1 million in Q2 2023
- Earnings per diluted share decreased to $1.00 from $1.06 in Q2 2023
- Total debt outstanding increased to $545.9 million as of June 30, 2024
Insights
DXP Enterprises' Q2 2024 results show solid growth and financial performance. Sales increased
However, net income decreased year-over-year from
DXP's Q2 results reflect a strategic shift towards diversification and reduced energy industry exposure. The Service Center segment led with
The company's acquisition strategy, focusing on water and industrial rotating equipment companies, positions DXP to capitalize on growing infrastructure and industrial markets. With plans for at least two more acquisitions in H2 2024, DXP is poised for continued growth. However, investors should watch for potential integration challenges and the impact on margins as the company expands.
-
$49.9 million -
$445.6 million -
GAAP diluted EPS of
$1.00 -
$48.2 million -
Free Cash Flow of
$30.0 million - Completed four acquisitions through Q2; two water, and two industrial rotating equipment companies
Second Quarter 2024 Financial Highlights:
-
Sales increased 8.0 percent sequentially to
$445.6 million $412.6 million $428.0 million -
Net income for the second quarter was
$16.7 million $19.1 million $11.3 million -
Earnings per diluted share for the second quarter was
$1.00 $1.06 $1.02 $1.06 -
Adjusted EBITDA for the second quarter was
$48.2 million $45.3 million -
Free Cash Flow (cash flow from operating activities less capital expenditures) for the second quarter was
$5.9 million $(4.2) million
David R. Little, Chairman and Chief Executive Officer commented, "Second quarter results reflect the execution of our growth strategy and the resilience and durability of DXP’s business. We are pleased with our sequential sales growth and strength in our gross profit margins. This resulted in operating leverage that produced earnings per share of
Kent Yee, Chief Financial Officer and Senior Vice President, remarked, “DXP achieved another high watermark quarter with an 8.0 percent sequential sales increase to
Conference Call Information
DXP Enterprises, Inc. management will host a conference call, August 9, 2024, at 10:30 a.m. Central Time, to discuss the Company’s financial results. The conference call may be accessed by going to https://ir.dxpe.com.
Interested investors and other parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of the Company's website at https://ir.dxpe.com. The online replay will be available on the same website immediately following the call. A slide presentation highlighting the Company’s results and key performance indicators will also be available on the Investor Relations section of the Company’s website.
To learn more about DXP Enterprises, Inc., please visit the Company's website at https://www.dxpe.com
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
Non-GAAP Financial Measures
DXP supplements reporting of net income with certain non-GAAP measurements, including EBITDA, Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin, 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, Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin, Free Cash Flow and net debt 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 facilities. 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 to its most directly comparable GAAP financial measure, 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. Free Cash Flow reconciles to the most directly comparable GAAP financial measure of cash flows from operations as provided below. We believe Free Cash Flow is an important liquidity metric because it measures, during a given period, the amount of cash generated that is available to fund acquisitions, make investments, repay debt obligations, repurchase shares of the Company's common stock, and for certain other activities.
Information Related to Forward-Looking Statements
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. These forward-looking statements include, without limitation, those about the Company’s expectations regarding the Company's expectations regarding the filing of the Form 10-Q; the description of the anticipated changes in the Company's consolidated balance sheet and the results of operations and the Company's assessment of the impact of such anticipated changes; the Company’s business, the Company’s future profitability, cash flow, liquidity, and growth. 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: the effectiveness of management’s strategies and decisions; our ability to implement our internal growth and acquisition growth strategies; general economic and business conditions specific to our primary customers; changes in government regulations; our ability to effectively integrate businesses we may acquire; new or modified statutory or regulatory requirements; availability of materials and labor; inability to obtain or delay in obtaining government or third-party approvals and permits; non-performance by third parties of their contractual obligations; unforeseen hazards such as weather conditions, acts of war or terrorist acts and the governmental or military response thereto; cyber-attacks adversely affecting our operations; other geological, operating and economic considerations and declining prices and market conditions, including supply or demand for maintenance, repair and operating products, equipment and service; inability of the Company or its independent auditors to complete the work necessary in order to file the Form 10-Q in the expected time frame; unanticipated changes to the Company's operating results in the Form 10-Q as filed or in relation to prior periods, including as compared to the anticipated changes stated here; unanticipated impact of such changes and its materiality; ability to obtain needed capital, dependence on existing management, leverage and debt service, domestic or global economic conditions, ability to manage changes and the continued health or availability of management personnel 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. More information on these risks and other potential factors that could affect the Company’s business and financial results is included in the Company’s filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
DXP ENTERPRISES, INC. AND SUBSIDIARIES |
|||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
($ thousands, except share amounts) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Sales |
$ |
445,556 |
|
|
$ |
428,040 |
|
|
$ |
858,191 |
|
|
$ |
852,307 |
|
Cost of sales |
|
307,763 |
|
|
|
296,188 |
|
|
|
596,516 |
|
|
|
595,414 |
|
Gross profit |
|
137,793 |
|
|
|
131,852 |
|
|
|
261,675 |
|
|
|
256,893 |
|
Selling, general and administrative expenses |
|
100,441 |
|
|
|
94,372 |
|
|
|
195,192 |
|
|
|
184,014 |
|
Income from operations |
|
37,352 |
|
|
|
37,480 |
|
|
|
66,483 |
|
|
|
72,879 |
|
Other income, net |
|
(1,035 |
) |
|
|
(242 |
) |
|
|
(3,004 |
) |
|
|
(712 |
) |
Interest expense |
|
15,384 |
|
|
|
11,863 |
|
|
|
30,928 |
|
|
|
23,384 |
|
Income before income taxes |
|
23,003 |
|
|
|
25,859 |
|
|
|
38,559 |
|
|
|
50,207 |
|
Provision for income taxes |
|
6,310 |
|
|
|
6,805 |
|
|
|
10,534 |
|
|
|
13,573 |
|
Net income |
|
16,693 |
|
|
|
19,054 |
|
|
|
28,025 |
|
|
|
36,634 |
|
Preferred stock dividend |
|
22 |
|
|
|
22 |
|
|
|
45 |
|
|
|
45 |
|
Net income attributable to common shareholders |
$ |
16,671 |
|
|
$ |
19,032 |
|
|
$ |
27,980 |
|
|
$ |
36,589 |
|
|
|
|
|
|
|
|
|
||||||||
Net income |
$ |
16,693 |
|
|
$ |
19,054 |
|
|
$ |
28,025 |
|
|
$ |
36,634 |
|
Foreign currency translation adjustments |
|
93 |
|
|
|
659 |
|
|
|
(521 |
) |
|
|
757 |
|
Comprehensive income |
$ |
16,786 |
|
|
$ |
19,713 |
|
|
$ |
27,504 |
|
|
$ |
37,391 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
1.05 |
|
|
$ |
1.11 |
|
|
$ |
1.75 |
|
|
$ |
2.10 |
|
Diluted |
$ |
1.00 |
|
|
$ |
1.06 |
|
|
$ |
1.66 |
|
|
$ |
2.01 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
15,868 |
|
|
|
17,211 |
|
|
|
15,998 |
|
|
|
17,402 |
|
Diluted |
|
16,708 |
|
|
|
18,051 |
|
|
|
16,838 |
|
|
|
18,242 |
|
DXP ENTERPRISES, INC. AND SUBSIDIARIES |
|||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
($ thousands, except share amounts) |
|||||||
|
June 30, 2024 |
|
December 31, 2023 |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash |
$ |
49,936 |
|
|
$ |
173,120 |
|
Restricted cash |
|
90 |
|
|
|
91 |
|
Accounts receivable, net of allowance of |
|
326,583 |
|
|
|
311,171 |
|
Inventories |
|
107,483 |
|
|
|
103,805 |
|
Costs and estimated profits in excess of billings |
|
36,741 |
|
|
|
42,323 |
|
Prepaid expenses and other current assets |
|
23,262 |
|
|
|
18,044 |
|
Total current assets |
|
544,095 |
|
|
|
648,554 |
|
Property and equipment, net |
|
68,407 |
|
|
|
61,618 |
|
Goodwill |
|
426,821 |
|
|
|
343,991 |
|
Other intangible assets, net |
|
85,895 |
|
|
|
63,895 |
|
Operating lease right of use assets, net |
|
50,520 |
|
|
|
48,729 |
|
Other long-term assets |
|
13,408 |
|
|
|
10,649 |
|
Total assets |
$ |
1,189,146 |
|
|
$ |
1,177,436 |
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Current maturities of debt |
$ |
5,500 |
|
|
$ |
5,500 |
|
Trade accounts payable |
|
101,185 |
|
|
|
96,469 |
|
Accrued wages and benefits |
|
32,987 |
|
|
|
36,238 |
|
Customer advances |
|
13,286 |
|
|
|
12,160 |
|
Billings in excess of costs and estimated profits |
|
12,080 |
|
|
|
9,506 |
|
Short-term operating lease liabilities |
|
15,218 |
|
|
|
15,438 |
|
Other current liabilities |
|
47,447 |
|
|
|
48,854 |
|
Total current liabilities |
|
227,703 |
|
|
|
224,165 |
|
Long-term debt, net of unamortized debt issuance costs and discounts |
|
519,735 |
|
|
|
520,697 |
|
Long-term operating lease liabilities |
|
36,617 |
|
|
|
34,336 |
|
Other long-term liabilities |
|
20,410 |
|
|
|
17,359 |
|
Total long-term liabilities |
|
576,762 |
|
|
|
572,392 |
|
Total liabilities |
|
804,465 |
|
|
|
796,557 |
|
Commitments and Contingencies |
|
|
|
||||
Shareholders' equity: |
|
|
|
||||
Series A preferred stock, |
|
1 |
|
|
|
1 |
|
Series B preferred stock, |
|
15 |
|
|
|
15 |
|
Common stock, |
|
345 |
|
|
|
345 |
|
Additional paid-in capital |
|
216,803 |
|
|
|
216,482 |
|
Retained earnings |
|
347,251 |
|
|
|
319,271 |
|
Accumulated other comprehensive loss |
|
(31,761 |
) |
|
|
(31,240 |
) |
Treasury stock, at cost 4,607,773 and 4,141,989 shares, respectively |
|
(147,973 |
) |
|
|
(123,995 |
) |
Total DXP Enterprises, Inc. equity |
|
384,681 |
|
|
|
380,879 |
|
Total liabilities and equity |
$ |
1,189,146 |
|
|
$ |
1,177,436 |
|
Business segment financial highlights:
-
Service Centers’ revenue for the second quarter was
$306.5 million
-
Innovative Pumping Solutions’ revenue for the second quarter was
$73.4 million
-
Supply Chain Services’ revenue for the second quarter was
$65.7 million
SEGMENT DATA |
|||||||||||
($ thousands, unaudited) |
|||||||||||
|
|
|
|
|
|
|
|
||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
Sales |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Service Centers |
$ |
306,516 |
|
$ |
313,806 |
|
$ |
594,952 |
|
$ |
619,619 |
Innovative Pumping Solutions |
|
73,377 |
|
|
48,067 |
|
|
135,592 |
|
|
99,478 |
Supply Chain Services |
|
65,663 |
|
|
66,167 |
|
|
127,647 |
|
|
133,210 |
Total Sales |
$ |
445,556 |
|
$ |
428,040 |
|
$ |
858,191 |
|
$ |
852,307 |
|
|
|
|
|
|
|
|
||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
Operating Income |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Service Centers |
$ |
43,855 |
|
$ |
46,823 |
|
$ |
84,175 |
|
$ |
92,637 |
Innovative Pumping Solutions |
|
13,366 |
|
|
6,760 |
|
|
20,336 |
|
|
15,956 |
Supply Chain Services |
|
5,823 |
|
|
5,416 |
|
|
11,085 |
|
|
10,930 |
Total Segments Operating Income |
$ |
63,044 |
|
$ |
58,999 |
|
$ |
115,596 |
|
$ |
119,523 |
RECONCILIATION OF OPERATING INCOME FOR REPORTABLE SEGMENTS |
|||||||||||||||
($ thousands, unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Income from operations for reportable segments |
$ |
63,044 |
|
|
$ |
58,999 |
|
|
$ |
115,596 |
|
|
$ |
119,523 |
|
Adjustment for: |
|
|
|
|
|
|
|
||||||||
Amortization of intangibles |
|
4,719 |
|
|
|
4,582 |
|
|
|
9,088 |
|
|
|
9,340 |
|
Corporate expenses |
|
20,973 |
|
|
|
16,937 |
|
|
|
40,025 |
|
|
|
37,304 |
|
Income from operations |
$ |
37,352 |
|
|
$ |
37,480 |
|
|
$ |
66,483 |
|
|
$ |
72,879 |
|
Interest expense |
|
15,384 |
|
|
|
11,863 |
|
|
|
30,928 |
|
|
|
23,384 |
|
Other income, net |
|
(1,035 |
) |
|
|
(242 |
) |
|
|
(3,004 |
) |
|
|
(712 |
) |
Income before income taxes |
$ |
23,003 |
|
|
$ |
25,859 |
|
|
$ |
38,559 |
|
|
$ |
50,207 |
|
|
|
|
|
|
|
|
|
||||||||
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
($ thousands, unaudited)
The following table sets forth the reconciliation of EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin to the most comparable
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Income before income taxes |
$ |
23,003 |
|
|
$ |
25,859 |
|
|
$ |
38,559 |
|
|
$ |
50,207 |
|
Plus: Interest expense |
|
15,384 |
|
|
|
11,863 |
|
|
|
30,928 |
|
|
|
23,384 |
|
Plus: Depreciation and amortization |
|
8,127 |
|
|
|
6,703 |
|
|
|
15,665 |
|
|
|
13,485 |
|
EBITDA |
$ |
46,514 |
|
|
$ |
44,425 |
|
|
$ |
85,152 |
|
|
$ |
87,076 |
|
Plus: other non-recurring items(1) |
|
500 |
|
|
|
— |
|
|
|
1,342 |
|
|
|
— |
|
Plus: stock compensation expense |
|
1,212 |
|
|
|
871 |
|
|
|
2,076 |
|
|
|
1,347 |
|
Adjusted EBITDA |
$ |
48,226 |
|
|
$ |
45,296 |
|
|
$ |
88,570 |
|
|
$ |
88,423 |
|
|
|
|
|
|
|
|
|
||||||||
Operating Income Margin |
|
8.4 |
% |
|
|
8.8 |
% |
|
|
7.7 |
% |
|
|
8.6 |
% |
EBITDA Margin |
|
10.4 |
% |
|
|
10.4 |
% |
|
|
9.9 |
% |
|
|
10.2 |
% |
Adjusted EBITDA Margin |
|
10.8 |
% |
|
|
10.6 |
% |
|
|
10.3 |
% |
|
|
10.4 |
% |
(1) Other non-recurring items includes unique acquisition integration costs and other non-cash, non-recurring costs not related to continuing business operations. |
|||||||||||||||
The following table sets forth the reconciliation of Organic Sales and Organic Sales per Business Day to the most comparable
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Sales by Business Segment |
|
|
|
|
|
|
|
||||
Service Centers |
$ |
306,516 |
|
$ |
313,806 |
|
$ |
594,952 |
|
$ |
619,619 |
Innovative Pumping Solutions |
|
73,377 |
|
|
48,067 |
|
|
135,592 |
|
|
99,478 |
Supply Chain Services |
|
65,663 |
|
|
66,167 |
|
|
127,647 |
|
|
133,210 |
Total DXP Sales |
$ |
445,556 |
|
$ |
428,040 |
|
$ |
858,191 |
|
$ |
852,307 |
Acquisition Sales |
|
23,403 |
|
|
7,265 |
|
|
35,178 |
|
|
26,398 |
Organic Sales |
$ |
422,153 |
|
$ |
420,775 |
|
$ |
823,013 |
|
$ |
825,909 |
|
|
|
|
|
|
|
|
||||
Business Days |
|
64 |
|
|
64 |
|
|
127 |
|
|
128 |
Sales per Business Day |
$ |
6,962 |
|
$ |
6,688 |
|
$ |
6,757 |
|
$ |
6,659 |
Organic Sales per Business Day |
$ |
6,596 |
|
$ |
6,575 |
|
$ |
6,480 |
|
$ |
6,452 |
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION CONTINUED
($ thousands, unaudited)
The following table sets forth the reconciliation of Free Cash Flow to the most comparable GAAP financial measure (in thousands):
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash from operating activities |
$ |
14,735 |
|
|
$ |
(2,430 |
) |
|
$ |
41,724 |
|
|
$ |
24,017 |
|
Less: purchases of property and equipment |
|
(8,825 |
) |
|
|
(1,813 |
) |
|
|
(11,719 |
) |
|
|
(5,617 |
) |
Free Cash Flow |
$ |
5,910 |
|
|
$ |
(4,243 |
) |
|
$ |
30,005 |
|
|
$ |
18,400 |
|
The following table is a reconciliation of adjusted net income attributable to DXP Enterprises, Inc., a non-GAAP financial measure, to net income, calculated and reported in accordance with
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
Net Income |
$ |
16,693 |
|
|
$ |
19,054 |
|
$ |
28,025 |
|
|
$ |
36,634 |
One-time non-cash items |
|
500 |
|
|
|
— |
|
|
1,342 |
|
|
|
— |
Adjustment for taxes |
|
(137 |
) |
|
|
— |
|
|
(367 |
) |
|
|
— |
Adjusted Net Income |
$ |
17,056 |
|
|
$ |
19,054 |
|
$ |
29,000 |
|
|
$ |
36,634 |
|
|
|
|
|
|
|
|
||||||
Weighted average common shares and common equivalent shares outstanding |
|
|
|
|
|
|
|
||||||
Diluted |
|
16,708 |
|
|
|
18,051 |
|
|
16,838 |
|
|
|
18,242 |
|
|
|
|
|
|
|
|
||||||
Diluted Earnings per Share |
$ |
1.00 |
|
|
$ |
1.06 |
|
$ |
1.66 |
|
|
$ |
2.01 |
Adjusted Diluted Earnings per Share |
$ |
1.02 |
|
|
$ |
1.06 |
|
$ |
1.72 |
|
|
$ |
2.01 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808816353/en/
Kent Yee
Senior Vice President, CFO
713-996-4700
www.dxpe.com
Source: DXP Enterprises, Inc.
FAQ
What was DXP Enterprises' (DXPE) revenue for Q2 2024?
How many acquisitions did DXP Enterprises (DXPE) complete in Q2 2024?
What was DXP Enterprises' (DXPE) Adjusted EBITDA for Q2 2024?
What is DXP Enterprises' (DXPE) outlook for acquisitions in the second half of 2024?
