☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended June 30, 2017
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.For the transition period fromto
|
Texas
|
76-0509661
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
|
7272 Pinemont, Houston, Texas 77040
|
||
(Address of principal executive offices, including zip code)
|
||
(713) 996-4700
|
||
(Registrant's telephone number, including area code)
|
June 30, 2017
|
December 31, 2016
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash
|
$
|
2,479
|
$
|
1,590
|
||||
Trade accounts receivable, net of allowance for doubtful accounts of $8,966 in 2017 and $8,160 in 2016
|
160,370
|
148,919
|
||||||
Inventories, net
|
90,697
|
83,699
|
||||||
Costs and estimated profits in excess of billings on uncompleted contracts
|
19,218
|
18,421
|
||||||
Prepaid expenses and other current assets
|
3,875
|
2,138
|
||||||
Income taxes recoverable
|
3,198
|
2,558
|
||||||
Total current assets
|
279,837
|
257,325
|
||||||
Property and equipment, net
|
56,610
|
60,807
|
||||||
Goodwill
|
187,591
|
187,591
|
||||||
Other intangible assets, net of accumulated amortization of $76,443 in 2017 and $70,027 in 2016
|
86,707
|
94,831
|
||||||
Other long-term assets
|
1,734
|
1,498
|
||||||
Total assets
|
$
|
612,479
|
$
|
602,052
|
||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities:
|
||||||||
Current maturities of long-term debt, less unamortized debt issuance costs of $744 in 2017
|
$
|
217,974
|
$
|
51,354
|
||||
Trade accounts payable
|
88,953
|
78,698
|
||||||
Accrued wages and benefits
|
16,148
|
16,962
|
||||||
Customer advances
|
2,348
|
2,441
|
||||||
Billings in excess of costs and estimated profits on uncompleted contracts
|
2,719
|
2,813
|
||||||
Other current liabilities
|
12,460
|
14,391
|
||||||
Total current liabilities
|
340,602
|
166,659
|
||||||
Long-term debt, less current maturities and unamortized debt issuance costs of $992 in 2016
|
2,284
|
173,331
|
||||||
Deferred income taxes
|
11,765
|
9,513
|
||||||
Commitments and contingencies (Note 13)
|
||||||||
Equity:
|
||||||||
Series A preferred stock, 1/10th vote per share; $1.00 par value; liquidation preference of $112 ($100 per share); 1,000,000 shares authorized; 1,122 shares issued and outstanding
|
1
|
1
|
||||||
Series B convertible preferred stock, 1/10th vote per share; $1.00 par value; $100 stated value; liquidation preference of $1,500 ($100 per share); 1,000,000 shares authorized; 15,000 shares issued and outstanding
|
15
|
15
|
||||||
Common stock, $0.01 par value, 100,000,000 shares authorized; 17,401,724 at June 30, 2017 and 17,197,380 at December 31, 2016 shares issued
|
174
|
172
|
||||||
Additional paid-in capital
|
152,727
|
152,313
|
||||||
Retained earnings
|
124,617
|
117,396
|
||||||
Accumulated other comprehensive loss
|
(20,139
|
)
|
(18,274
|
)
|
||||
Total DXP Enterprises, Inc. equity
|
257,395
|
251,623
|
||||||
Noncontrolling interest
|
433
|
926
|
||||||
Total equity
|
257,828
|
252,549
|
||||||
Total liabilities and equity
|
$
|
612,479
|
$
|
602,052
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Sales
|
$
|
250,698
|
$
|
256,215
|
$
|
489,225
|
$
|
509,776
|
||||||||
Cost of sales
|
181,762
|
184,612
|
355,774
|
369,355
|
||||||||||||
Gross profit
|
68,936
|
71,603
|
133,451
|
140,421
|
||||||||||||
Selling, general and administrative expenses
|
58,679
|
62,754
|
114,958
|
133,574
|
||||||||||||
Income from operations
|
10,257
|
8,849
|
18,493
|
6,847
|
||||||||||||
Other expense (income), net
|
57
|
9
|
(171
|
)
|
(146
|
)
|
||||||||||
Interest expense
|
3,992
|
3,951
|
7,645
|
7,360
|
||||||||||||
Income (loss) before provision for income taxes
|
6,208
|
4,889
|
11,019
|
(367
|
)
|
|||||||||||
Provision (benefit) for income taxes
|
2,239
|
(197
|
)
|
4,056
|
(205
|
)
|
||||||||||
Net income (loss)
|
3,969
|
5,086
|
6,963
|
(162
|
)
|
|||||||||||
Net loss attributable to noncontrolling interest
|
(166
|
)
|
(84
|
)
|
(305
|
)
|
(220
|
)
|
||||||||
Net income attributable to DXP Enterprises, Inc.
|
4,135
|
5,170
|
7,268
|
58
|
||||||||||||
Preferred stock dividend
|
22
|
22
|
45
|
45
|
||||||||||||
Net income attributable to common shareholders
|
$
|
4,113
|
$
|
5,148
|
$
|
7,223
|
$
|
13
|
||||||||
Net income (loss)
|
$
|
3,969
|
$
|
5,086
|
$
|
6,963
|
$
|
(162
|
)
|
|||||||
Cumulative translation adjustment
|
455
|
(251
|
)
|
(1,865
|
)
|
387
|
||||||||||
Comprehensive income
|
$
|
4,424
|
$
|
4,835
|
$
|
5,098
|
$
|
225
|
||||||||
Basic earnings per share attributable to DXP Enterprises, Inc.
|
$
|
0.24
|
$
|
0.36
|
$
|
0.42
|
$
|
0.00
|
||||||||
Weighted average common shares outstanding
|
17,404
|
14,503
|
17,406
|
14,494
|
||||||||||||
Diluted earnings per share attributable to DXP Enterprises, Inc.
|
$
|
0.23
|
$
|
0.34
|
$
|
0.40
|
$
|
0.00
|
||||||||
Weighted average common shares and common equivalent shares outstanding
|
18,244
|
15,343
|
18,246
|
15,334
|
Six Months Ended
|
||||||||
June 30,
|
||||||||
2017
|
2016
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income attributable to DXP Enterprises, Inc.
|
$
|
7,268
|
$
|
58
|
||||
Less net loss attributable to non-controlling interest
|
(305
|
)
|
(220
|
)
|
||||
Net income (loss)
|
6,963
|
(162
|
)
|
|||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
||||||||
Depreciation
|
5,155
|
5,997
|
||||||
Amortization of intangible assets
|
8,607
|
9,038
|
||||||
Bad debt expense
|
1,001
|
986
|
||||||
Amortization of debt issuance costs
|
628
|
477
|
||||||
Write off of debt issuance costs
|
-
|
967
|
||||||
Compensation expense for restricted stock
|
1,010
|
1,253
|
||||||
Tax loss related to vesting of restricted stock
|
-
|
565
|
||||||
Deferred income taxes
|
1,998
|
738
|
||||||
Changes in operating assets and liabilities, net of assets and liabilities acquired in business combinations:
|
||||||||
Trade accounts receivable
|
(11,768
|
)
|
4,483
|
|||||
Costs and estimated profits in excess of billings on uncompleted contracts
|
(780
|
)
|
2,124
|
|||||
Inventories
|
(6,914
|
)
|
5,650
|
|||||
Prepaid expenses and other assets
|
(1,923
|
)
|
(1,145
|
)
|
||||
Trade accounts payable and accrued expenses
|
3,979
|
(13,734
|
)
|
|||||
Billings in excess of costs and estimated profits on uncompleted contracts
|
(102
|
)
|
(5,829
|
)
|
||||
Net cash provided by operating activities
|
7,854
|
11,408
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchase of property and equipment
|
(1,118
|
)
|
(2,930
|
)
|
||||
Equity method investment contribution
|
-
|
(4,000
|
)
|
|||||
Net cash used in investing activities
|
(1,118
|
)
|
(6,930
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds from debt
|
394,966
|
219,019
|
||||||
Principal payments on revolving line of credit and other long-term debt
|
(399,641
|
)
|
(222,840
|
)
|
||||
Costs for registration of common shares
|
-
|
(226
|
)
|
|||||
Debt issuance fees
|
(380
|
)
|
-
|
|||||
Loss for non-controlling interest owners, net of tax
|
(187
|
)
|
(136
|
)
|
||||
Dividends paid
|
(45
|
)
|
(45
|
)
|
||||
Payment for employee taxes withheld from stock awards
|
(596
|
)
|
(203
|
)
|
||||
Tax loss related to vesting of restricted stock
|
-
|
(565
|
)
|
|||||
Net cash used in financing activities
|
(5,883
|
)
|
(4,996
|
)
|
||||
EFFECT OF FOREIGN CURRENCY ON CASH
|
36
|
(88
|
)
|
|||||
NET CHANGE IN CASH
|
889
|
(606
|
)
|
|||||
CASH AT BEGINNING OF PERIOD
|
1,590
|
1,693
|
||||||
CASH AT END OF PERIOD
|
$
|
2,479
|
$
|
1,087
|
Topic
|
Method of Adoption
|
Impact on Consolidated Financial Statements
|
Recognize all excess tax benefits and tax deficiencies as income tax benefit or expense
|
Prospective
|
The Company recognized $0.2 million and $0.1 million of excess tax benefit in income taxes in the three and six months ended June 30, 2017, respectively, decreasing the effective tax rate for each period.
|
Excess tax benefits and deficiencies on the statement of cash flows are classified as an operating activity
|
Prospective
|
The Company recognized $0.1 million of excess tax benefit in the six months ended June 30, 2017 as an operating activity. Prior to the adoption of the ASU 2016-09, the excess tax expense in the six months ended June 30, 2016 was $0.6 million recognized as a financing activity.
|
Employee taxes paid when an employer withholds shares for tax-withholding purposes on the statement of cash flows are classified as financing activity
|
Retrospective
|
The Company reclassified $0.2 million of employee taxes paid from cash flows from operating activities to cash flows from financing on the Consolidated Statements of Cash Flows in the six months ended June 30, 2016.
|
Accounting for forfeitures and tax withholding elections
|
Prospective
|
The Company has not changed its accounting policy for forfeitures. There is no significant impact on Consolidated Financial Statements.
|
June 30,
2017
|
December 31,
2016
|
|||||||
Finished goods
|
$
|
79,525
|
$
|
74,269
|
||||
Work in progress
|
11,172
|
9,430
|
||||||
Inventories, net
|
$
|
90,697
|
$
|
83,699
|
June 30,
2017
|
December 31,
2016
|
|||||||
Costs incurred on uncompleted contracts
|
$
|
24,974
|
$
|
25,214
|
||||
Estimated profits, thereon
|
3,491
|
6,274
|
||||||
Total
|
28,465
|
31,488
|
||||||
Less: billings to date
|
11,968
|
15,864
|
||||||
Net
|
$
|
16,497
|
$
|
15,624
|
June 30,
2017
|
December 31, 2016
|
|||||||
Costs and estimated profits in excess of billings on uncompleted contracts
|
$
|
19,218
|
$
|
18,421
|
||||
Billings in excess of costs and estimated profits on uncompleted contracts
|
(2,719
|
)
|
(2,813
|
)
|
||||
Translation adjustment
|
(2
|
)
|
16
|
|||||
Net
|
$
|
16,497
|
$
|
15,624
|
June 30,
2017
|
December 31,
2016
|
|||||||
Land
|
$
|
2,346
|
$
|
2,346
|
||||
Buildings and leasehold improvements
|
16,463
|
16,259
|
||||||
Furniture, fixtures and equipment
|
95,065
|
94,784
|
||||||
Less – Accumulated depreciation
|
(57,264
|
)
|
(52,582
|
)
|
||||
Total property and equipment, net
|
$
|
56,610
|
$
|
60,807
|
Goodwill
|
Other
Intangible Assets
|
Total
|
||||||||||
Balance as of December 31, 2016
|
$
|
187,591
|
$
|
94,831
|
$
|
282,422
|
||||||
Translation adjustment
|
-
|
483
|
483
|
|||||||||
Amortization
|
-
|
(8,607
|
)
|
(8,607
|
)
|
|||||||
Balance as of June 30, 2017
|
$
|
187,591
|
$
|
86,707
|
$
|
274,298
|
June 30,
2017
|
December 31,
2016
|
|||||||
Service Centers
|
$
|
154,473
|
$
|
154,473
|
||||
Innovative Pumping Solutions
|
15,980
|
15,980
|
||||||
Supply Chain Services
|
17,138
|
17,138
|
||||||
Total
|
$
|
187,591
|
$
|
187,591
|
As of June 30, 2017
|
As of December 31, 2016
|
|||||||||||||||||||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Carrying Amount, net
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Carrying Amount, net
|
|||||||||||||||||||
Customer relationships
|
$
|
162,201
|
$
|
(75,681
|
)
|
$
|
86,520
|
$
|
163,022
|
$
|
(68,446
|
)
|
$
|
94,576
|
||||||||||
Non-compete agreements
|
949
|
(762
|
)
|
187
|
1,836
|
(1,581
|
)
|
255
|
||||||||||||||||
Total
|
$
|
163,150
|
$
|
(76,443
|
)
|
$
|
86,707
|
$
|
164,858
|
$
|
(70,027
|
)
|
$
|
94,831
|
June 30,
2017
|
December 31,
2016
|
|||||||
Line of credit
|
$
|
162,600
|
$
|
147,600
|
||||
Term loan
|
55,250
|
74,500
|
||||||
Promissory note payable in monthly installments at 2.9% through January 2021, collateralized by equipment
|
3,152
|
3,577
|
||||||
Less unamortized debt issuance costs
|
(744
|
)
|
(992
|
)
|
||||
220,258
|
224,685
|
|||||||
Less: Current portion
|
(217,974
|
)
|
(51,354
|
)
|
||||
Long-term debt less current maturities
|
$
|
2,284
|
$
|
173,331
|
Number of
Shares
|
Weighted Average
Grant Price
|
|||||||
Non-vested at December 31, 2016
|
143,380
|
$
|
26.76
|
|||||
Granted
|
12,150
|
$
|
33.84
|
|||||
Forfeited
|
-
|
$
|
-
|
|||||
Vested
|
(13,900
|
)
|
$
|
62.65
|
||||
Non-vested at June 30, 2017
|
141,630
|
$
|
23.84
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Basic:
|
||||||||||||||||
Weighted average shares outstanding
|
17,404
|
14,503
|
17,406
|
14,494
|
||||||||||||
Net income attributable to DXP Enterprises, Inc.
|
$
|
4,135
|
$
|
5,170
|
$
|
7,268
|
$
|
58
|
||||||||
Convertible preferred stock dividend
|
22
|
22
|
45
|
45
|
||||||||||||
Net income attributable to common shareholders
|
$
|
4,113
|
$
|
5,148
|
$
|
7,223
|
$
|
13
|
||||||||
Per share amount
|
$
|
0.24
|
$
|
0.36
|
$
|
0.42
|
$
|
0.00
|
||||||||
Diluted:
|
||||||||||||||||
Weighted average shares outstanding
|
17,404
|
14,503
|
17,406
|
14,494
|
||||||||||||
Assumed conversion of convertible preferred stock
|
840
|
840
|
840
|
840
|
||||||||||||
Total dilutive shares
|
18,244
|
15,343
|
18,246
|
15,334
|
||||||||||||
Net income attributable to common shareholders
|
$
|
4,113
|
$
|
5,148
|
$
|
7,223
|
$
|
13
|
||||||||
Convertible preferred stock dividend
|
22
|
22
|
45
|
45
|
||||||||||||
Net income attributable to DXP Enterprises, Inc. for diluted earnings per share
|
$
|
4,135
|
$
|
5,170
|
$
|
7,268
|
$
|
58
|
||||||||
Per share amount
|
$
|
0.23
|
$
|
0.34
|
$
|
0.40
|
$
|
0.00
|
For the Three Months Ended June 30,
|
||||||||||||||||||||||||||||||||
2017
|
2016
|
|||||||||||||||||||||||||||||||
SC
|
IPS
|
SCS
|
Total
|
SC
|
IPS
|
SCS
|
Total
|
|||||||||||||||||||||||||
Sales
|
$
|
164,749
|
$
|
44,470
|
$
|
41,479
|
$
|
250,698
|
$
|
161,832
|
$
|
54,353
|
$
|
40,030
|
$
|
256,215
|
||||||||||||||||
Amortization
|
2,227
|
1,793
|
271
|
4,291
|
2,284
|
1,955
|
271
|
4,510
|
||||||||||||||||||||||||
Income (loss) from operations
|
16,190
|
(38
|
)
|
3,447
|
19,599
|
10,313
|
3,532
|
3,931
|
17,776
|
|||||||||||||||||||||||
Income from operations, excluding amortization
|
$
|
18,417
|
$
|
1,755
|
$
|
3,718
|
$
|
23,890
|
$
|
12,597
|
$
|
5,487
|
$
|
4,202
|
$
|
22,286
|
For the Six Months Ended June 30,
|
||||||||||||||||||||||||||||||||
2017
|
2016
|
|||||||||||||||||||||||||||||||
SC
|
IPS
|
SCS
|
Total
|
SC
|
IPS
|
SCS
|
Total
|
|||||||||||||||||||||||||
Sales
|
$
|
313,461
|
$
|
93,528
|
$
|
82,236
|
$
|
489,225
|
$
|
329,334
|
$
|
101,784
|
$
|
78,658
|
$
|
509,776
|
||||||||||||||||
Amortization
|
4,477
|
3,588
|
542
|
8,607
|
4,579
|
3,917
|
542
|
9,038
|
||||||||||||||||||||||||
Income from operations
|
27,281
|
1,676
|
7,234
|
36,191
|
17,555
|
1,876
|
7,140
|
26,571
|
||||||||||||||||||||||||
Income from operations, excluding amortization
|
$
|
31,758
|
$
|
5,264
|
$
|
7,776
|
$
|
44,798
|
$
|
22,134
|
$
|
5,793
|
$
|
7,682
|
$
|
35,609
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Operating income for reportable segments, excluding amortization
|
$
|
23,890
|
$
|
22,286
|
$
|
44,798
|
$
|
35,609
|
||||||||
Adjustment for:
|
||||||||||||||||
Amortization of intangible assets
|
4,291
|
4,510
|
8,607
|
9,038
|
||||||||||||
Corporate expense
|
9,342
|
8,927
|
17,698
|
19,724
|
||||||||||||
Income from operations
|
10,257
|
8,849
|
18,493
|
6,847
|
||||||||||||
Interest expense
|
3,992
|
3,951
|
7,645
|
7,360
|
||||||||||||
Other expense (income), net
|
57
|
9
|
(171
|
)
|
(146
|
)
|
||||||||||
Income (loss) before income taxes
|
$
|
6,208
|
$
|
4,889
|
$
|
11,019
|
$
|
(367
|
)
|
Three Months Ended June 30,
|
Six Months June 30,
|
|||||||||||||||||||||||||||||||
2017
|
%
|
2016
|
%
|
2017
|
%
|
2016
|
%
|
|||||||||||||||||||||||||
Sales
|
$
|
250,698
|
100.0
|
%
|
$
|
256,215
|
100.0
|
%
|
$
|
489,225
|
100.0
|
%
|
$
|
509,776
|
100.0
|
%
|
||||||||||||||||
Cost of sales
|
181,762
|
72.5
|
%
|
184,612
|
72.1
|
%
|
355,774
|
72.7
|
%
|
369,355
|
72.5
|
%
|
||||||||||||||||||||
Gross profit
|
68,936
|
27.5
|
%
|
71,603
|
27.9
|
%
|
133,451
|
27.3
|
%
|
140,421
|
27.5
|
%
|
||||||||||||||||||||
Selling, general and administrative expense
|
58,679
|
23.4
|
%
|
62,754
|
24.5
|
%
|
114,958
|
23.5
|
%
|
133,574
|
26.2
|
%
|
||||||||||||||||||||
Income from operations
|
10,257
|
4.1
|
%
|
8,849
|
3.5
|
%
|
18,493
|
3.8
|
%
|
6,847
|
1.3
|
%
|
||||||||||||||||||||
Other expense (income), net
|
57
|
0.0
|
%
|
9
|
0.0
|
%
|
(171
|
)
|
0.0
|
%
|
(146
|
)
|
0.0
|
%
|
||||||||||||||||||
Interest expense
|
3,992
|
1.6
|
%
|
3,951
|
1.5
|
%
|
7,645
|
1.6
|
%
|
7,360
|
1.4
|
%
|
||||||||||||||||||||
Income (loss) before taxes
|
6,208
|
2.5
|
%
|
4,889
|
2.0
|
%
|
11,019
|
2.2
|
%
|
(367
|
)
|
-0.1
|
%
|
|||||||||||||||||||
Provision(benefit) for income taxes
|
2,239
|
0.9
|
%
|
(197
|
)
|
0.0
|
%
|
4,056
|
0.8
|
%
|
(205
|
)
|
0.0
|
%
|
||||||||||||||||||
Net income (loss)
|
3,969
|
1.5
|
%
|
5,086
|
2.0
|
%
|
6,963
|
1.4
|
%
|
(162
|
)
|
0.0
|
%
|
|||||||||||||||||||
Net loss attributable to noncontrolling interest
|
(166
|
)
|
0.0
|
%
|
(84
|
)
|
0.0
|
%
|
(305
|
)
|
-0.1
|
%
|
(220
|
)
|
0.0
|
%
|
||||||||||||||||
Net income attributable to DXP Enterprises, Inc.
|
$
|
4,135
|
1.6
|
%
|
$
|
5,170
|
2.0
|
%
|
$
|
7,268
|
1.5
|
%
|
$
|
58
|
0.0
|
%
|
||||||||||||||||
Per share amounts attributable to DXP Enterprises, Inc.
|
||||||||||||||||||||||||||||||||
Basic earnings per share
|
$
|
0.24
|
$
|
0.36
|
$
|
0.42
|
$
|
0.00
|
||||||||||||||||||||||||
Diluted earnings per share
|
$
|
0.23
|
$
|
0.34
|
$
|
0.40
|
$
|
0.00
|
Period
|
Minimum Consolidated EBITDA
|
|||
June 30, 2017
|
$
|
36,210,000
|
||
July 31, 2017
|
$
|
42,968,000
|
||
August 31, 2017
|
$
|
42,411,000
|
||
September 30, 2017
|
$
|
39,306,000
|
||
October 31, 2017 and thereafter
|
$
|
39,000,000
|
For the Twelve Months ended
June 30, 2017
|
||||
Income before taxes
|
$
|
21,060
|
||
Before tax loss attributable to noncontrolling interest
|
1,024
|
|||
Interest expense
|
15,849
|
|||
Depreciation and amortization
|
28,721
|
|||
Stock compensation expense
|
3,337
|
|||
(A) Defined EBITDA
|
$
|
69,991
|
||
As of June 30, 2017
|
||||
Total long-term debt, including current maturities
|
$
|
220,258
|
||
Unamortized debt issuance costs
|
744
|
|||
(B) Defined indebtedness
|
$
|
221,002
|
||
Consolidated Leverage Ratio (B)/(A)
|
3.16
|
For the Twelve Months ended
June 30, 2017
|
||||
Defined EBITDA
|
$
|
69,991
|
||
Cash paid for income taxes
|
3,557
|
|||
Capital expenditures
|
3,055
|
|||
(A) Defined EBITDA minus capital expenditures & cash income taxes
|
$
|
63,379
|
||
Cash interest payments
|
$
|
14,809
|
||
Dividends
|
91
|
|||
Scheduled principal payments
|
56,954
|
|||
(B) Fixed charges
|
$
|
71,854
|
||
Consolidated Fixed Charge Coverage Ratio (A)/(B)
|
0.88
|
The following table sets forth the computation of the Asset Coverage Ratio as of June 30, 2017 (in thousands, except for ratios):
|
||||
Accounts receivable (net), valued at 85% of gross
|
$
|
136,596
|
||
Inventory, valued at 65% of gross
|
58,953
|
|||
(A)Aggregate outstanding
|
$
|
195,549
|
||
Credit facility outstanding balance
|
$
|
162,600
|
||
Outstanding letters of credit
|
6,454
|
|||
(B)
|
$
|
169,054
|
||
Asset Coverage Ratio (A)/(B)
|
1.16
|
June 30, 2017
|
December 31, 2016
|
Increase (Decrease)
|
||||||||||
Current maturities of long-term debt, less unamortized debt issuance costs (2)
|
$
|
217,974
|
$
|
51,354
|
$
|
166,620
|
||||||
Long-term debt
|
2,284
|
173,331
|
(171,047
|
)
|
||||||||
Total long-term debt (2)
|
$
|
220,258
|
$
|
224,685
|
$
|
(4,427
|
)
|
|||||
Amount available (1)
|
$
|
20,946
|
$
|
37,347
|
$
|
(16,401
|
)
|
|||||
(1) Represents the amount available to be borrowed at the indicated date under the Facility under the most restrictive covenant. The decrease in the amount available to be borrowed is primarily the result of the revolving line of credit reducing from $205 million at December 31, 2016, to $190 million at June 30, 2017.
(2) All of our debt under the Facility has been characterized as current because the Facility matures on March 31, 2018.
|
Three Months Ended June 30,
|
|||||
Increase
|
|||||
2017
|
2016
|
(Decrease)
|
|||
Days of sales outstanding
|
61.5
|
60.1
|
1.4
|
||
Inventory turns
|
8.0
|
7.5
|
0.5
|
·
|
Maintaining adequate documentation to support proper revenue recognition;
|
·
|
Capturing and accounting for all fixed price contracts;
|
·
|
Obtaining proper approvals for contract change orders;
|
·
|
Documenting approval of management bonuses in a timely manner;
|
·
|
Improperly recording proceeds from property and equipment disposals to cost of sales;
|
·
|
Improper recording of valuation accounts in purchase accounting;
|
·
|
Obtaining proper approvals for freight invoices;
|
·
|
Accounting for fully amortized intangible assets;
|
·
|
Improperly recording operating leases on a method other than straight line recognition; and
|
·
|
Improper access to payroll records.
|
·
|
We augmented our tax accounting resources by engaging third party professionals and hiring an experienced tax director to strengthen tax accounting review procedures in the United States and Canada.
|
·
|
We developed and implemented enhanced policies and procedures relating to tax account reconciliations and analysis.
|
·
|
We are implementing close procedures at interim periods to allow for more timely and increased oversight by our management of the calculation and reporting of certain tax balances.
|
·
|
We are reassessing the design of our tax review controls to identify areas where enhanced precision will help detect and prevent material misstatements.
|
·
|
In connection with the remediation of the material weakness in our control activities, we are enhancing our policies relating to the documentation, review and approval of account reconciliations.
|
·
|
To enhance our information technology controls, we are implementing systems and processes in order to create an effective segregation of duties, restrict user access to applications and improve output controls.
|
·
|
We are implementing procedures to enhance the level of communication and understanding of our accounting and internal control policies and procedures in an effort to remediate the material weakness in our monitoring efforts.
|
3.1 |
Restated Articles of Incorporation, as amended (incorporated by reference to Exhibit 4.1 to the Registrant's Registration Statement on Form S-8 (Reg. No. 333-61953), filed with Commission on August 20, 1998).
|
3.2 |
Bylaws (incorporated by reference to Exhibit 3.2 to the Registrant's Registration Statement on Form S-4 (Reg. No. 333-10021), filed with the Commission on August 12, 1996).
|
3.3 |
Amendment No. 1 to Bylaws (incorporated by reference to Exhibit A to the Registrant's Current Report on Form 8-K, filed with the Commission on July 28, 2011 (file no. 000-71513)).
|
* 31.1 |
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and rule 15d-14(a) of the Securities Exchange Act, as amended.
|
* 31.2 |
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and rule 15d-14(a) of the Securities Exchange Act, as amended.
|
* 32.1 |
Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
* 32.2 |
Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101 |
Interactive Data Files
|
1. |
I have reviewed this report on Form 10-Q of DXP Enterprises, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d) |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5. |
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
1. |
I have reviewed this report on Form 10-Q of DXP Enterprises, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d) |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5. |
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jul. 27, 2017 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | DXP ENTERPRISES INC | |
Entity Central Index Key | 0001020710 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,401,724 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 |
THE COMPANY |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
THE COMPANY [Abstract] | |
THE COMPANY | NOTE 1 - THE COMPANY DXP Enterprises, Inc. together with its subsidiaries (collectively "DXP," "Company," "us," "we," or "our") are engaged in the business of distributing maintenance, repair, and operating (MRO) products and services to industrial customers. Additionally, DXP provides integrated custom pump skid packages, pump remanufacturing, and manufactures branded private label pumps to industrial customers. The Company is organized into three business segments: Service Centers ("SC"), Supply Chain Services ("SCS"), and Innovative Pumping Solutions ("IPS"). See Note 14 for discussion of the business segments. |
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES Basis of Presentation The Company's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and its variable interest entity ("VIE"). The accompanying unaudited condensed consolidated financial statements have been prepared on substantially the same basis as our annual consolidated financial statements and should be read in conjunction with our annual report on Form 10-K for the year ended December 31, 2016. For a more complete discussion of our significant accounting policies and business practices, refer to the consolidated annual report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2017. The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of results expected for the full fiscal year. In the opinion of management, these condensed consolidated financial statements contain all adjustments necessary to present fairly the Company's condensed consolidated balance sheets as of December 31, 2016 and June 30, 2017 (unaudited), condensed consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2017 and June 30, 2016 (unaudited), and condensed consolidated statements of cash flows for the six months ended June 30, 2017 and June 30, 2016 (unaudited). All such adjustments represent normal recurring items. DXP is the primary beneficiary of a VIE in which DXP owns 47.5% of the equity. DXP consolidates the financial statements of the VIE with the financial statements of DXP. As of June 30, 2017, the total assets of the VIE were approximately $5.3 million including approximately $5.0 million of property and equipment compared to $5.2 million of total assets and $5.2 million of property and equipment at December 31, 2016. DXP is the primary customer of the VIE. For the three months ended June 30, 2017 and 2016, consolidation of the VIE increased cost of sales by approximately $0.3 million and $0.2 million, respectively and increased SG&A by approximately $0.2 million and $46 thousand, respectively. For the six months ended June 30, 2017 and 2016, consolidation of the VIE increased cost of sales by approximately $0.5 million and $0.6 million, respectively and increased SG&A by approximately $0.5 million and $0.1 million, respectively. The Company recognized a related income tax benefit of $0.3 million and $50 thousand, respectively, related to the VIE for the three months ended June 30, 2017 and 2016 and $0.5 million and $150 thousand, respectively, for the six months ended June 30, 2017 and 2016. At June 30, 2017, the owners of 52.5% of the equity not owned by DXP included a former executive officer and other employees of DXP. Equity investments in which we exercise significant influence, but do not control and are not the primary beneficiary, are accounted for using the equity method of accounting. During the first quarter of 2016, DXP invested $4.0 million in a related party equity method investment. During the third and fourth quarters of 2016, the investment was reduced to zero by $4.0 million of distributions received from the entity. All intercompany accounts and transactions have been eliminated upon consolidation. |
RISKS AND UNCERTAINTIES |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
RISKS AND UNCERTAINTIES [Abstract] | |
RISKS AND UNCERTAINTIES | NOTE 3 – RISKS AND UNCERTAINTIES We believe cash generated from our operations will meet our normal working capital needs during the next twelve months. We expect that we will be in compliance with the financial covenants under our credit facility through and including March 31, 2018. However, because our credit facility matures on March 31, 2018, and we do not foresee the ability to pay the credit facility with cash from our operations, we intend to seek alternative financing during the next nine months. This alternative financing could include additional bank debt and/or the public or private sale of debt or equity securities. If we issue securities as a way of obtaining such financing, that may substantially dilute the interests of our shareholders. However, we may not be able to obtain alternative financing on attractive terms. Based upon discussions with investment bankers, DXP management believes that it is probable that DXP will have the ability to refinance the current debt before maturity. DXP's Board of Directors has approved a plan to refinance the credit facility. The plan to refinance could include institutional debt or equity, combined with an asset based revolving loan. |
RECENT ACCOUNTING PRONOUNCEMENTS |
6 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | ||||||||||||||||
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | ||||||||||||||||
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 4 - RECENT ACCOUNTING PRONOUNCEMENTS Standards Effective in 2017 or Earlier Accounting Changes and Error Corrections. In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-03 ("ASU 2017-03"), Accounting Changes and Error Corrections (Topic 250) and Investments-Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings. This update adds language to the SEC Staff Guidance in relation to ASU 2014-09, ASU 2016-02, and ASU 2016-13. This ASU 2017-03 provides the SEC Staff view that a registrant should consider additional quantitative and qualitative disclosures related to the previously mentioned ASUs in connection with the status and impact of their adoption. This guidance, which was effective immediately, did not have a material impact on our Condensed Consolidated Financial Statements. Compensation – Stock Compensation. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The update aims to simplify aspects of accounting for share-based payment award transactions, including (a) income tax consequences, (b) classification of awards as either equity or liabilities, and (c) classification on the statement of cash flows. This pronouncement is effective for financial statements issued for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company adopted the ASU January 1, 2017 and it had the following impact on the Company's Condensed Consolidated Financial Statements:
Income Taxes. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes. The update requires entities to present deferred tax assets and liabilities as noncurrent in a classified balance sheet. The update simplifies the current guidance, which requires entities to separately present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. This pronouncement is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within. The Company adopted this ASU January 1, 2017 and reclassified $9.5 million of current deferred income tax assets from current assets to non-current deferred income tax liabilities on the Condensed Consolidated Balance Sheet. Inventory. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory. The amendments in ASU 2015-11 clarify the subsequent measurement of inventory requiring an entity to subsequently measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. This ASU applies only to inventory that is measured using the first-in, first-out (FIFO) or average cost method. Subsequent measurement is unchanged for inventory measured using last-in, first-out (LIFO) or the retail inventory method. The amendments in ASU 2015-11 should be applied prospectively and are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company adopted this ASU January 1, 2017 and it did not have a material impact on the Company's Condensed Consolidated Financial Statements. Standards Effective in 2018 or Later Compensation - Stock Compensation. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. An entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The amendments in this ASU are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 with early adoption permitted. The amendments in this ASU should be applied prospectively to an award modified on or after the adoption date. The Company is currently assessing the impact, if any, that this ASU will have upon adoption. Intangibles-Goodwill and Other. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU is to simplify how an entity is required to test goodwill for impairment. The effective date of the amendment to the standard is for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company's goodwill impairment testing for the fiscal period beginning January 1, 2020, will follow the provisions of this ASU. This ASU is not expected to have a material impact on the Company's Consolidated Financial Statements. Business Combinations. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. The effective date of this ASU is for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This ASU is not expected to have a material impact on the Company's Consolidated Financial Statements. Statement of Cash Flows. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments. This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The effective date of the amendment to the standard is for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This ASU is not expected to have a material impact on the Company's Consolidated Financial Statements. Financial Instruments – Credit Losses. In June 2016, the FASB issued ASU 2016-13: Financial Instruments – Credit Losses, which replaces the incurred loss impairment methodology in current US GAAP with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more useful information about expected credit losses. The amended guidance is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the effect, if any, that the guidance will have on the Company's Consolidated Financial Statements and related disclosures. Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The update requires organizations that lease assets ("lessees") to recognize the assets and liabilities for the rights and obligations created by leases with terms of more than 12 months. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee remains dependent on its classification as a finance or operating lease. The criteria for determining whether a lease is a finance or operating lease has not been significantly changed by this ASU. The ASU also requires additional disclosure of the amount, timing, and uncertainty of cash flows arising from leases, including qualitative and quantitative requirements. This pronouncement is effective for financial statements issued for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that this standard will have on its Consolidated Financial Statements. Financial Instruments. In January 2016, the FASB issued ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities. This change to the financial instrument model primarily affects the accounting for equity investments, financial liabilities under fair value options and the presentation and disclosure requirements for financial instruments. The effective date for the standard is for fiscal years and interim periods within those years beginning after December 15, 2017. Certain provisions of the new guidance can be adopted early. The Company is evaluating the impact of this ASU. Revenue Recognition. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which provides guidance on revenue recognition. The core principal of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance requires entities to apply a five-step method to (1) identify the contract(s) with customers, (2) identify the performance obligation(s) in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligation(s) in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. This pronouncement, as amended by ASU 2015-14, is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company has evaluated the provisions of the new standard and is in the process of assessing its impact on financial statements, information systems, business processes and financial statement disclosures. Based on initial reviews, the standard is not expected to have a material impact on the Company's Consolidated Financial Statements. |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES |
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FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES [Abstract] | |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | NOTE 5 - FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES Authoritative guidance for financial assets and liabilities measured on a recurring basis applies to all financial assets and financial liabilities that are being measured and reported on a fair value basis. Fair value, as defined in the authoritative guidance, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative guidance affects the fair value measurement of an investment with quoted market prices in an active market for identical instruments, which must be classified in one of the following categories: Level 1 Inputs Level 1 inputs come from quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 Inputs Level 2 inputs are other than quoted prices that are observable for an asset or liability. These inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from, or corroborated by, observable market data by correlation or other means. Level 3 Inputs Level 3 inputs are unobservable inputs for the asset or liability which require the Company's own assumptions. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. |
INVENTORIES, NET |
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INVENTORIES, NET [Abstract] | |||||||||||||||||||||||||||||||||||||
INVENTORIES, NET | NOTE 6 – INVENTORIES, NET The carrying values of inventories are as follows (in thousands):
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COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS |
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COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS | NOTE 7 – COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS Costs and estimated profits in excess of billings on uncompleted contracts arise in the consolidated balance sheets when revenues have been recognized but the amounts cannot be billed under the terms of the contracts. Such amounts are recoverable from customers upon various measures of performance, including achievement of certain milestones, completion of specified units, or completion of a contract. Costs and estimated profits on uncompleted contracts and related amounts billed were as follows (in thousands):
Such amounts were included in the accompanying condensed consolidated balance sheets for 2017 and 2016 under the following captions (in thousands):
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PROPERTY AND EQUIPMENT, NET |
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PROPERTY AND EQUIPMENT, NET [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT, NET | NOTE 8 - PROPERTY AND EQUIPMENT, NET The carrying values of property and equipment are as follows (in thousands):
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GOODWILL AND OTHER INTANGIBLE ASSETS |
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GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 9 - GOODWILL AND OTHER INTANGIBLE ASSETS The following table presents the changes in the carrying amount of goodwill and other intangible assets during the six months ended June 30, 2017 (in thousands):
The following table presents the goodwill balance by reportable segment (in thousands):
The following table presents a summary of amortizable other intangible assets (in thousands):
Gross carrying amounts as well as accumulated amortization are partially affected by the fluctuation of foreign currency rates. Other intangible assets are amortized according to estimated economic benefits over their estimated useful lives. |
LONG-TERM DEBT |
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LONG-TERM DEBT [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | NOTE 10 – LONG-TERM DEBT Long-term debt consisted of the following (in thousands):
On July 11, 2012, DXP entered into a credit facility with Wells Fargo Bank National Association, as Issuing Lender, Swingline Lender and Administrative Agent for the lenders (as amended, the "Original Facility"). On January 2, 2014, the Company entered into an Amended and Restated Credit Agreement with Wells Fargo Bank, National Association, as Issuing Lender and Administrative Agent for other lenders (as amended by that certain First Amendment to the Amended and Restated Credit Agreement, dated as of August 6, 2015 (the "First Amendment"), that certain Second Amendment to the Amended and Restated Credit Agreement, dated as of September 30, 2015 (the "Second Amendment"), that certain Third Amendment to the Amended and Restated Credit Agreement, dated as of May 12, 2016 (the "Third Amendment"), that certain Fourth Amendment to the Amended and Restated Credit Agreement, dated as of August 15, 2016 (the "Fourth Amendment"), and that certain Fifth Amendment to the Amended and Restated Credit Agreement, dated as of November 28, 2016 (the "Fifth Amendment" and as so amended, the "Facility")), amending and restating the Original Facility. Pursuant to the Facility, as of June 30, 2017, the lenders named therein provided to DXP a $55.2 million term loan and a $190 million revolving line of credit. The Facility expires on March 31, 2018. Loans made from the Facility may be used for working capital and general corporate purposes of DXP and its subsidiaries. As of June 30, 2017, the aggregate principal amount of revolving loans outstanding under the facility was $162.6 million. Amortization payments are payable at $15.6 million per quarter for the fiscal quarter periods ending September 30, 2017 and thereafter. At June 30, 2017, the aggregate principal amount of term loan outstanding under the Facility was $55.2 million. On June 30, 2017, the LIBOR based rate in effect under the Facility was LIBOR plus 5.0% and the prime based rate of the Facility was prime plus 4.0%. At June 30, 2017, $217.9 million was borrowed under the Facility at a weighted average interest rate of approximately 6.2%. At June 30, 2017, the Company had $20.9 million available for borrowing under the Facility. Commitment fees of 0.50% per annum are payable on the portion of the Facility capacity not in use at any given time on the line of credit. Commitment fees are included as interest in the Condensed Consolidated Statements of Operations. The Facility contains financial covenants defining various financial measures and levels of these measures with which the Company must comply monthly. Substantially all of the Company's assets are pledged as collateral to secure the credit facility. |
STOCK-BASED COMPENSATION |
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STOCK-BASED COMPENSATION | NOTE 11 - STOCK-BASED COMPENSATION Restricted Stock Under the restricted stock plans approved by our shareholders, directors, consultants and employees were awarded shares of DXP's common stock. The shares of restricted stock granted to employees and that are outstanding as of June 30, 2017 vest in accordance with one of the following vesting schedules: 100% one year after date of grant; 33.3% each year for three years after the date of grant; 20% each year for five years after the grant date; or 10% each year for ten years after the grant date. The shares of restricted stock granted to non-employee directors of DXP vest one year after the grant date. The fair value of restricted stock awards was measured based upon the closing prices of DXP's common stock on the grant dates and is recognized as compensation expense over the vesting period of the awards. Once restricted stock vests, new shares of the Company's stock are issued. At June 30, 2017, 407,447 shares were available for future grants. Changes in restricted stock for the six months ended June 30, 2017 were as follows:
Compensation expense, associated with restricted stock, recognized in the six months ended June 30, 2017 and 2016 was $1.0 million and $1.3 million, respectively. Related income tax benefits recognized in earnings for the six months ended June 30, 2017 and 2016 were approximately $0.4 million and $0.5 million, respectively. Unrecognized compensation expense under the Restricted Stock Plan at June 30, 2017 and December 31, 2016 was $2.1 million and $2.7 million, respectively. As of June 30, 2017, the weighted average period over which the unrecognized compensation expense is expected to be recognized is 15.0 months. |
EARNINGS PER SHARE DATA |
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EARNINGS PER SHARE DATA [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE DATA | NOTE 12 - EARNINGS PER SHARE DATA Basic earnings per share is computed based on weighted average shares outstanding and excludes dilutive securities. Diluted earnings per share is computed including the impacts of all potentially dilutive securities. The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data):
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COMMITMENTS AND CONTINGENCIES |
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COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13 - COMMITMENTS AND CONTINGENCIES From time to time, the Company is a party to various legal proceedings arising in the ordinary course of business. While DXP is unable to predict the outcome of these lawsuits, it believes that the ultimate resolution will not have, either individually or in aggregate, a material adverse effect on DXP's consolidated financial position, cash flows, or results of operations. |
SEGMENT REPORTING |
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SEGMENT REPORTING [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING | NOTE 14 - SEGMENT REPORTING The Company's reportable business segments are: Service Centers, Innovative Pumping Solutions and Supply Chain Services. The Service Centers segment is engaged in providing maintenance, MRO products, equipment and integrated services, including logistics capabilities, to industrial customers. The Service Centers segment provides a wide range of MRO products in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, fastener, industrial supply, safety products and safety services categories. The Innovative Pumping Solutions segment fabricates and assembles custom-made pump packages, remanufactures pumps and manufactures branded private label pumps. The Supply Chain Services segment provides a wide range of MRO products and manages all or part of a customer's supply chain, including warehouse and inventory management. The high degree of integration of the Company's operations necessitates the use of a substantial number of allocations and apportionments in the determination of business segment information. Sales are shown net of intersegment eliminations. The following table sets out financial information related to the Company's segments (in thousands):
The following table presents reconciliations of operating income for reportable segments to the consolidated income before taxes (in thousands):
|
SUBSEQUENT EVENTS |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 15 - SUBSEQUENT EVENTS We have evaluated subsequent events through the date the interim Condensed Consolidated Financial Statements were issued. There were no subsequent events that required recognition or disclosure unless elsewhere identified in this report. |
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES [Abstract] | |
Basis of Presentation | Basis of Presentation The Company's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and its variable interest entity ("VIE"). The accompanying unaudited condensed consolidated financial statements have been prepared on substantially the same basis as our annual consolidated financial statements and should be read in conjunction with our annual report on Form 10-K for the year ended December 31, 2016. For a more complete discussion of our significant accounting policies and business practices, refer to the consolidated annual report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2017. The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of results expected for the full fiscal year. In the opinion of management, these condensed consolidated financial statements contain all adjustments necessary to present fairly the Company's condensed consolidated balance sheets as of December 31, 2016 and June 30, 2017 (unaudited), condensed consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2017 and June 30, 2016 (unaudited), and condensed consolidated statements of cash flows for the six months ended June 30, 2017 and June 30, 2016 (unaudited). All such adjustments represent normal recurring items. DXP is the primary beneficiary of a VIE in which DXP owns 47.5% of the equity. DXP consolidates the financial statements of the VIE with the financial statements of DXP. As of June 30, 2017, the total assets of the VIE were approximately $5.3 million including approximately $5.0 million of property and equipment compared to $5.2 million of total assets and $5.2 million of property and equipment at December 31, 2016. DXP is the primary customer of the VIE. For the three months ended June 30, 2017 and 2016, consolidation of the VIE increased cost of sales by approximately $0.3 million and $0.2 million, respectively and increased SG&A by approximately $0.2 million and $46 thousand, respectively. For the six months ended June 30, 2017 and 2016, consolidation of the VIE increased cost of sales by approximately $0.5 million and $0.6 million, respectively and increased SG&A by approximately $0.5 million and $0.1 million, respectively. The Company recognized a related income tax benefit of $0.3 million and $50 thousand, respectively, related to the VIE for the three months ended June 30, 2017 and 2016 and $0.5 million and $150 thousand, respectively, for the six months ended June 30, 2017 and 2016. At June 30, 2017, the owners of 52.5% of the equity not owned by DXP included a former executive officer and other employees of DXP. Equity investments in which we exercise significant influence, but do not control and are not the primary beneficiary, are accounted for using the equity method of accounting. During the first quarter of 2016, DXP invested $4.0 million in a related party equity method investment. During the third and fourth quarters of 2016, the investment was reduced to zero by $4.0 million of distributions received from the entity. All intercompany accounts and transactions have been eliminated upon consolidation. |
INVENTORIES, NET (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||
INVENTORIES, NET [Abstract] | |||||||||||||||||||||||||||||||||||||
Carrying Values of Inventories | The carrying values of inventories are as follows (in thousands):
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COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Costs and Estimated Profits on Uncompleted Contracts | Costs and estimated profits on uncompleted contracts and related amounts billed were as follows (in thousands):
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Schedule of Costs and Estimated Earnings on Uncompleted Contracts Included in Condensed Consolidated Balance Sheets | Such amounts were included in the accompanying condensed consolidated balance sheets for 2017 and 2016 under the following captions (in thousands):
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PROPERTY AND EQUIPMENT, NET (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT, NET [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Values of Property and Equipment | The carrying values of property and equipment are as follows (in thousands):
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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | The following table presents the changes in the carrying amount of goodwill and other intangible assets during the six months ended June 30, 2017 (in thousands):
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Goodwill Balance by Reportable Segment | The following table presents the goodwill balance by reportable segment (in thousands):
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Amortizable Other Intangible Assets | The following table presents a summary of amortizable other intangible assets (in thousands):
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LONG-TERM DEBT (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | Long-term debt consisted of the following (in thousands):
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STOCK-BASED COMPENSATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Restricted Stock | Changes in restricted stock for the six months ended June 30, 2017 were as follows:
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EARNINGS PER SHARE DATA (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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EARNINGS PER SHARE DATA [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data):
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SEGMENT REPORTING (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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SEGMENT REPORTING [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Financial Information | The following table sets out financial information related to the Company's segments (in thousands):
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Reconciliation of Operating Income for Reportable Segments to Consolidated Income before Taxes | The following table presents reconciliations of operating income for reportable segments to the consolidated income before taxes (in thousands):
|
THE COMPANY (Details) |
6 Months Ended |
---|---|
Jun. 30, 2017
Segment
| |
THE COMPANY [Abstract] | |
Number of segments | 3 |
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Jun. 30, 2017 |
Dec. 31, 2016 |
Jun. 30, 2016 |
|
Variable Interest Entity [Line Items] | ||||||
Ownership percentage in VIE | 47.50% | |||||
Assets of VIE | $ 5,300,000 | $ 5,300,000 | $ 5,200,000 | |||
Increase cost of sales from consolidation of the VIE | 300,000 | $ 200,000 | 500,000 | $ 600,000 | ||
Increase in selling, general and administrative expense | 200,000 | 46,000 | 500,000 | 100,000 | ||
Income tax benefit of VIE | 300,000 | $ 50,000 | 500 | 150,000 | ||
Equity method investment | $ 4,000,000 | $ 0 | 0 | $ 4,000,000 | ||
Distributions received from investments | 4,000,000 | |||||
Former Executive Officers and Other Employees of DXP [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Ownership percentage in VIE | 52.50% | |||||
Property and Equipment [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Assets of VIE | $ 5,000,000 | $ 5,000,000 | $ 5,200,000 |
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Income tax benefit | $ 2,239 | $ (197) | $ 4,056 | $ (205) | |
Income tax benefit recognized as an operating activity | 0 | (565) | |||
Income tax expense recognized as a financing activity | 0 | (565) | |||
Non-current deferred income tax liabilities | 11,765 | 11,765 | $ 9,513 | ||
ASU 2016-09 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Income tax benefit | (200) | (100) | |||
Income tax benefit recognized as an operating activity | 100 | ||||
Income tax expense recognized as a financing activity | 600 | $ 200 | |||
ASU 2015-17 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Non-current deferred income tax liabilities | $ 9,500 | $ 9,500 |
INVENTORIES, NET (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
INVENTORIES, NET [Abstract] | ||
Finished goods | $ 79,525 | $ 74,269 |
Work in progress | 11,172 | 9,430 |
Inventories, net | $ 90,697 | $ 83,699 |
COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Schedule of costs and estimated earnings on uncompleted contracts [Abstract] | ||
Costs incurred on uncompleted contracts | $ 24,974 | $ 25,214 |
Estimated profits, thereon | 3,491 | 6,274 |
Total | 28,465 | 31,488 |
Less: billings to date | 11,968 | 15,864 |
Net | 16,497 | 15,624 |
Schedule of Costs and Estimated Earnings on Uncompleted Contracts Included in Condensed Consolidated Balance Sheets [Abstract] | ||
Costs and estimated profits in excess of billings on uncompleted contracts | 19,218 | 18,421 |
Billings in excess of costs and estimated profits on uncompleted contracts | (2,719) | (2,813) |
Translation adjustment | (2) | 16 |
Net | $ 16,497 | $ 15,624 |
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Less - Accumulated depreciation | $ (57,264) | $ (52,582) |
Total property and equipment, net | 56,610 | 60,807 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,346 | 2,346 |
Buildings and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 16,463 | 16,259 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 95,065 | $ 94,784 |
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 187,591 | |
Translation adjustment | 0 | |
Balance at end of period | 187,591 | |
Other Intangibles Assets [Roll Forward] | ||
Balance at beginning of period | 94,831 | |
Translation adjustment | 483 | |
Amortization | (8,607) | $ (9,038) |
Balance at end of period | 86,707 | |
Total Goodwill and Intangible Assets [Roll Forward] | ||
Balance at beginning of period | 282,422 | |
Translation adjustment | 483 | |
Amortization | (8,607) | $ (9,038) |
Balance at end of period | $ 274,298 |
GOODWILL AND OTHER INTANGIBLE ASSETS, Goodwill Balance by Reportable Segment (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Goodwill [Line Items] | ||
Goodwill | $ 187,591 | $ 187,591 |
Service Centers [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 154,473 | 154,473 |
Innovative Pumping Solutions [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 15,980 | 15,980 |
Supply Chain Services [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 17,138 | $ 17,138 |
GOODWILL AND OTHER INTANGIBLE ASSETS, Amortizable Other Intangible Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 163,150 | $ 164,858 |
Accumulated amortization | (76,443) | (70,027) |
Carrying amount, net | 86,707 | 94,831 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 162,201 | 163,022 |
Accumulated amortization | (75,681) | (68,446) |
Carrying amount, net | 86,520 | 94,576 |
Non-Compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 949 | 1,836 |
Accumulated amortization | (762) | (1,581) |
Carrying amount, net | $ 187 | $ 255 |
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