Texas
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76-0509661
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification Number)
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7272 Pinemont, Houston, Texas 77040
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(713) 996-4700
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(Address of principal executive offices)
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Registrant’s telephone number, including area code.
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·
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Sales were $323.7 million for the second quarter of 2015, compared to $381.6 million for the second quarter of 2014, a decrease of 15.2%. Organic sales decreased 16.3%, acquisitions positively impacted sales by $4.4 million. The impact of the stronger U.S. dollar decreased revenues by $4.1 million or 1.3%.
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·
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Gross profit was $91.3 million, or 28.2% of sales, for the second quarter of 2015, compared to $111.0 million, or 29.1% of sales, for the second quarter of 2014.
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·
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Selling, general & administrative (SG&A) expenses were $77.3 million, or 23.9% of sales, for the second quarter of 2015, compared to $83.7 million, or 21.9% of sales, for the second quarter of 2014.
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·
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Operating income was $14.0 million for the current quarter, compared to $27.4 million for the second quarter of 2014. Operating profit as a percentage of sales was 4.3% and 7.2% in 2015 and 2014, respectively.
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·
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Net income was $7.2 million, or 2.2% of sales compared to $14.9 million or 3.9% of sales for the second quarter of 2014.
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·
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Earnings per diluted share for the second quarter of 2015 were $0.47 per share, based on 15.2 million diluted shares, compared to $0.96 per diluted share in the second quarter of 2014, based on 15.5 million diluted shares.
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·
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Free cash flow for the second quarter of 2015 was $28.9 million, or 403% of net income.
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·
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Service Centers revenue was down 14.0% year-over-year with a 9.9% operating income margin. Organic revenue was down 15.7% year over year. Currency headwinds decreased revenues by $2.9 million or 1.3%.
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·
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Innovative Pumping Solutions revenue was down 26.1% year over year with an 8.8% operating income margin. The stronger U.S. dollar decreased IPS revenues by $1.2 million or 1.8%.
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·
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Supply Chain Services revenue was up 1.1% year over year with an 8.8% operating margin.
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Three Months Ended
June 30,
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Six Months Ended
June 30,
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||||||
2015
|
2014
|
2015
|
2014
|
||||
Sales
|
$ 323,688
|
$ 381,603
|
$ 665,282
|
$ 730,107
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|||
Cost of sales
|
232,389
|
270,557
|
475,934
|
517,354
|
|||
Gross profit
|
91,299
|
111,046
|
189,348
|
212,753
|
|||
Selling, general and
administrative expense
|
77,304
|
83,654
|
157,254
|
164,207
|
|||
Operating income
|
13,995
|
27,392
|
32,094
|
48,546
|
|||
Other expense (income)
|
(145)
|
141
|
(394)
|
(9)
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|||
Interest expense
|
2,592
|
3,176
|
5,275
|
6,573
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|||
Income before income taxes
|
11,548
|
24,075
|
27,213
|
41,982
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|||
Provision for income taxes
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4,381
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9,191
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10,395
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16,135
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|||
Net income
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$ 7,167
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$ 14,884
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$ 16,818
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$ 25,847
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|||
Diluted earnings per share
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$ 0.47
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$ 0.96
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$ 1.11
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$ 1.66
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|||
Weighted average common shares
and common equivalent
shares outstanding
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15,208
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15,548
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15,220
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15,556
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SEGMENT DATA
(in thousands) (unaudited)
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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
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||
2015
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|||||||||
Sales
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$ 214,116
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$ 66,905
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$ 42,667
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$ 323,688
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$ 439,907
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$ 141,169
|
$ 84,206
|
$ 665,282
|
|
Operating income for reportable segments
|
$ 21,119
|
$ 5,912
|
$ 3,736
|
$ 30,767
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$ 43,985
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$ 14,539
|
$ 7,014
|
$ 65,538
|
|
2014
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|||||||||
Sales
|
$ 248,839
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$ 90,575
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$ 42,189
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$ 381,603
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$ 480,063
|
$ 170,456
|
$ 79,588
|
$ 730,107
|
|
Operating income for reportable segments
|
$ 25,486
|
$ 15,800
|
$ 3,579
|
$ 44,865
|
$ 49,911
|
$ 25,350
|
$ 6,703
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$ 81,964
|
Three months ended June 30, | Six months ended June 30, | ||||||
2015
|
2014
|
2015
|
2014
|
||||
Operating income for reportable segments
|
$ 30,767
|
$ 44,865
|
$ 65,538
|
$ 81,964
|
|||
Adjustment for:
|
|||||||
Amortization of intangibles
|
5,309
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5,660
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10,667
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11,237
|
|||
Corporate expense
|
11,463
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11,813
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22,777
|
22,181
|
|||
Total operating income
|
13,995
|
27,392
|
32,094
|
48,546
|
|||
Interest expense
|
2,592
|
3,176
|
5,275
|
6,573
|
|||
Other expense (income), net
|
(145)
|
141
|
(394)
|
(9)
|
|||
Income before income taxes
|
$ 11,548
|
$ 24,075
|
$ 27,213
|
$ 41,982
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||
2015
|
2014
|
2015
|
2014
|
|
Income before income taxes
|
$ 11,548
|
$ 24,075
|
$ 27,213
|
$ 41,982
|
Plus interest expense
|
2,592
|
3,176
|
5,275
|
6,573
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Plus depreciation and amortization
|
8,327
|
8,753
|
16,586
|
17,314
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EBITDA*
|
$ 22,467
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$ 36,004
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$ 49,074
|
$ 65,869
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*EBITDA - earnings before interest, taxes, depreciation and amortization
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