0001020710-11-000004.txt : 20110316 0001020710-11-000004.hdr.sgml : 20110316 20110316160228 ACCESSION NUMBER: 0001020710-11-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20101231 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20110316 DATE AS OF CHANGE: 20110316 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DXP ENTERPRISES INC CENTRAL INDEX KEY: 0001020710 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-INDUSTRIAL MACHINERY & EQUIPMENT [5084] IRS NUMBER: 760509661 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-21513 FILM NUMBER: 11691887 BUSINESS ADDRESS: STREET 1: 7272 PINEMONT DRIVE CITY: HOUSTON STATE: TX ZIP: 77040 BUSINESS PHONE: 7139964700 MAIL ADDRESS: STREET 1: 7272 PINEMONT DRIVE CITY: HOUSTON STATE: TX ZIP: 77040 FORMER COMPANY: FORMER CONFORMED NAME: INDEX INC DATE OF NAME CHANGE: 19960808 8-K 1 q42010_8k.htm 2010 Q4 & FULL YEAR EARNINGS RELEASE 8-K q42010_8k.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported):  December 31, 2010

 
 
Commission file number 0-21513

DXP Enterprises, Inc.
(Exact name of registrant as specified in its charter)
 


Texas
      
76-0509661
(State or other jurisdiction
of incorporation or organization)
      
(I.R.S. Employer Identification Number)
         
7272 Pinemont, Houston, Texas
  
77040
  
(713) 996-4700
(Address of principal executive offices)
  
(Zip Code)
  
(Registrant’s telephone number,
 including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
 
[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 

ITEM 2.02.  REGULATION FD DISCLOSURE

The following information is furnished pursuant to Regulation FD.

On March 16, 2011, DXP Enterprises, Inc., issued a press release announcing financial results for the quarter and year ended December 31, 2010, a copy of which is furnished as Exhibit 99.1 hereto, which is incorporated herein by reference.  Such exhibit (i) is furnished pursuant to Item 2.02 of Form 8-K, (ii) is not to be considered “filed” under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and (iii) shall not be incorporated by reference into any previous or future filings made by or to be made by the Company with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act.


ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS

(d)  Exhibits.

99.1        Press Release dated March 16, 2011

 
1
 



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

DXP ENTERPRISES, INC.

March 16, 2011                                                                           By:  /s/Mac McConnell
Mac McConnell
Senior Vice President and
Chief Financial Officer




INDEX TO EXHIBITS

Introductory Note:    The following exhibit is furnished pursuant to Item 2.02 of Form 8-K and is not to be considered “filed” under the Exchange Act and shall not be incorporated by reference into any of the Company’s previous or future filings under the Securities Act or the Exchange Act.

Exhibit No.                                           Description
99.1                                                         Press Release dated March 16, 2011 regarding financial results for the quarter and year ended December 31, 2010.

 
2
 

EX-99.1 2 q410newsrelease.htm NEWS RELEASE DATED MARCH 16, 2011 q410newsrelease.htm
DXP logo
NEWS RELEASE
March 16, 2011
logo.jpg DXP logo CONTACT:  Mac McConnell
Senior Vice President, Finance & CFO
713-996-4700
www.dxpe.com

 
DXP ENTERPRISES ANNOUNCES 2010 FOURTH QUARTER AND YEAR END RESULTS
 
 
Houston, TX, -- March 16, 2011 – DXP Enterprises, Inc. (NASDAQ: DXPE) today announced that for the fourth quarter ended December 31, 2010 it earned net income of $5.9 million, or $0.39 per fully diluted share.  Sequentially, earnings per share improved 8.3% from $0.36 per fully diluted share, or $5.3 million in net income for the third quarter ended September 30, 2010.  Compared to adjusted fourth quarter 2009 earnings of $2.6 million or $0.19 per fully diluted share, fourth quarter 2010 earnings per share improved 105.3%.
 
The fourth quarter and annual 2009 results included an impairment of goodwill and other intangibles of $53.0 million, a $13.8 million reduction in value of inventory and $5.6 million of restructuring and other special fourth quarter charges, amounting to $72.4 million of total charges.  Absent these charges, adjusted EPS for the fourth quarter and full year 2009 would have been $0.19 and $0.76, respectively.
 
For the year ended December 31, 2010, DXP reported net income of $19.4 million, with diluted EPS of $1.32 compared to adjusted year end December 31, 2009 net income of $10.7 million, with EPS of $0.76 for an improvement of $8.7 million in net income or 73.7% per fully diluted share.
 
Sales for the fourth quarter of 2010 increased $31.8 million, or 23.1% to approximately $169.7 million from $137.8 million for the same period in 2009.
 
For the year ended December 31, 2010, DXP reported a sales increase of $73.0 million, or 12.5% to approximately $656.2 million from $583.2 million for 2009.
 
David R. Little, Chairman and Chief Executive Officer remarked, “We achieved solid results in 2010.  Operationally our business was more efficient and we continued to invest in our growth strategies.  We spent approximately $18.4 million in cash on two acquisitions and launched several service centers in new geographies.  As cash flow continues to grow we look forward to building a bigger and more efficient Company to serve the needs of our industrial customers.  I would like to thank all of our dedicated employees for their hard work and outstanding execution to deliver this year’s results.  2011 looks bright as we enter the year with strong financial resources, great technology and an experienced team capable of delivering great products and services to our customers and excellent financial results to our shareholders.  We believe that most of our markets, especially oil and gas, are improving.”
 
Mac McConnell, Senior Vice President and CFO, added, “Fourth quarter and annual financial results reflect our focus on customers and continued growth in the market.  The revenue growth, combined with our cost discipline, helped us improve margins quarter-over-quarter and year-over-year, while growing EBITDA.  I was also very pleased that DXP was able to generate over $22.7 million in free cash flow which was primarily used to complete two significant acquisitions and reduce long-term debt.  As of December 31, 2010, $50.0 million was available to be borrowed under our credit facility.”
 
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 in virtually every industry since 1908.  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 ww.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.

 
 
 
 
 
 
NEWS RELEASE
March 16, 2011
CONTACT:  Mac McConnell
Senior Vice President, Finance & CFO
713-996-4700
www.dxpe.com


DXP ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
 
 
Years ending
December 31,
Three Months Ending
December 31,
 
2010
2009
2010
2009
Sales
$         656,202
$         583,226
$         169,669
$         137,826
Cost of sales
467,807
431,812
120,021
114,648
Gross profit
188,395
151,414
49,648
23,178
Selling, general and administrative expense
151,304
147,795
38,591
37,005
Goodwill and other intangibles impairment
-
52,951
-
(52,951)
Operating income (loss)
37,091
(49,332)
11,057
(66,778)
Other income
249
95
6
24
Interest expense
(5,208)
(5,245)
(1,185)
(1,225)
Income (loss) before provision for income taxes
32,132
(54,482)
9,878
(67,979)
Provision (benefit) for income taxes
12,751
(12,070)
4,018
(17,545)
Net income (loss)
19,381
(42,412)
5,860
(50,434)
         
Per share and share amounts
        
  Basic earnings (loss) per common share – restated
$              1.40
$            (3.24)
$              0.41
$            (3.84)
  Common shares outstanding
13,821
13,117
14,149
13,152
  Diluted earnings (loss) per share
$              1.32
$            (3.24)
$              0.39
$            (3.84)
  Common and common equivalent shares
   outstanding
 
14,821
 
13,117
 
14,989
 
13,152


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)

 
Years Ended
December 31,
  
Three Months Ended
December 31,
 
2010
  
2009
  
2010
  
2009
               
Income (loss) before income taxes
$      32,132
  
$    (54,482)
  
$          9,878
  
$     (67,979)
Plus interest expense
5,208
  
5,245
  
1,185
  
1,225
Plus depreciation and amortization
9,568
  
11,476
  
2,447
  
2,702
Goodwill and other intangibles impairment
-
  
52,951
  
-
  
52,951
EBITDA
$      46,908
  
$       15,190
  
$        13,510
  
$     (11,101)
               
**EBITDA – earnings before interest, taxes, depreciation and amortization
 
 



 
 
 

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