Texas | 76-0509661 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
5301 Hollister, Houston, Texas 77040 | (713) 996-4700 |
(Address of principal executive offices) | Registrant’s telephone number, including area code. |
Title of Each Class | Trading Symbol | Name of Exchange on which Registered |
Common Stock par value $0.01 | DXPE | NASDAQ Global Select Market |
DXP ENTERPRISES, INC. | ||
(Registrant) | ||
By: | /s/ Kent Yee | |
Kent Yee | ||
Senior Vice President/Finance and Chief Financial Officer | ||
By: | /s/ Gene Padgett | |
Gene Padgett | ||
Senior Vice President/Chief Accounting Officer | ||
Dated: | March 6, 2020 |
NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO www.dxpe.com THE INDUSTRIAL DISTRIBUTION EXPERTS |
• | Fiscal 2019 sales of $1.3 billion, up 4.2%, |
• | Full year GAAP diluted EPS of $1.96 |
• | Net income of $ $35.9 million |
• | $91.3 million in earnings before interest, taxes, depreciation and amortization (“EBITDA”) |
• | $13 million in growth capital expenditures |
• | Free cash flow of $19.2 million |
• | Sales decreased 5.0 percent to $295.5 million, compared to $311.0 million for the fourth quarter of 2018. |
• | Earnings per diluted share for the fourth quarter was $0.12 based upon 18.4 million diluted shares, compared to $0.60 per share in the fourth quarter of 2018, based on 18.4 million diluted shares. |
• | Sales increased 4.2 percent to $1.3 billion , compared to $1.2 billion for 2018. |
• | Earnings per diluted share for 2019 of $1.96 based upon 18.4 million diluted shares, compared to $1.94 per share in 2018, based on 18.4 million diluted shares. |
• | Earnings before interest, taxes, depreciation and amortization (EBITDA) for 2019 was $91.3 million compared to $95.8 million for 2018. EBITDA as a percentage of sales was 7.2 percent and 7.9 percent, respectively. |
• | $13 million in growth capital expenditures |
NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO www.dxpe.com THE INDUSTRIAL DISTRIBUTION EXPERTS |
• | Service Centers' revenue for the fiscal year was $762.3 million, an increase of 1.6 percent year-over-year with a 11.4 percent operating income margin. |
◦ | Revenue for the fourth quarter was $182.4 million, a decrease of 5.7 percent year-over-year with a 10.7 percent operating income margin. |
• | Innovative Pumping Solutions’ revenue for the fiscal year was $303.7 million, an increase of 4.1 percent year over year with an 9.5 percent operating income margin. |
◦ | Revenue for the fourth quarter was $65.7 million, a decrease of 10.1 percent year-over-year with a flat or 0.0 percent operating income margin. |
• | Supply Chain Services’ revenue for the fiscal year was $201.3 million, an increase of 15.4 percent year-over-year with a 7.2 percent operating margin. |
◦ | Revenue for the fourth quarter was $47.4 million, an increase of 6.4 percent year-over-year with a 7.3 percent operating income margin. |
NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO www.dxpe.com THE INDUSTRIAL DISTRIBUTION EXPERTS |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Sales | $ | 295,468 | $ | 311,006 | $ | 1,267,189 | $ | 1,216,197 | |||||||||
Cost of sales | 217,135 | 224,429 | 919,965 | 883,989 | |||||||||||||
Gross profit | 78,333 | 86,577 | 347,224 | 332,208 | |||||||||||||
Selling, general and administrative expenses | 71,591 | 66,148 | 281,102 | 263,757 | |||||||||||||
Operating income | 6,742 | 20,429 | 66,122 | 68,451 | |||||||||||||
Other (income) expense, net | (172 | ) | 126 | (45 | ) | (1,192 | ) | ||||||||||
Interest expense | 4,587 | 4,978 | 19,498 | 20,937 | |||||||||||||
Income before income taxes | 2,327 | 15,325 | 46,669 | 48,706 | |||||||||||||
Provision for (benefit from) income taxes | 239 | 4,223 | 10,894 | 13,185 | |||||||||||||
Net income | 2,088 | 11,102 | 35,775 | 35,521 | |||||||||||||
Net income (loss) attributable to NCI* | (88 | ) | (20 | ) | (260 | ) | (111 | ) | |||||||||
Net income attributable to DXP Enterprises, Inc. | 2,176 | 11,122 | 36,035 | 35,632 | |||||||||||||
Preferred stock dividend | 22 | 22 | 90 | 90 | |||||||||||||
Net income attributable to common shareholders | $ | 2,154 | $ | 11,100 | $ | 35,945 | $ | 35,542 | |||||||||
Diluted earnings per share attributable to DXP Enterprises, Inc. | $ | 0.12 | $ | 0.60 | $ | 1.96 | $ | 1.94 | |||||||||
Weighted average common shares and common equivalent shares outstanding | 18,443 | 18,443,000 | 18,410 | 18,432 | 18,393 | ||||||||||||
*NCI represents non-controlling interest |
NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO www.dxpe.com THE INDUSTRIAL DISTRIBUTION EXPERTS |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
Sales | 2019 | 2018 | 2019 | 2018 | |||||||||||
Service Centers | $ | 182,372 | $ | 193,343 | $ | 762,256 | $ | 750,044 | |||||||
Innovative Pumping Solutions | 65,735 | 73,137 | 303,655 | 291,697 | |||||||||||
Supply Chain Services | 47,361 | 44,526 | 201,278 | 174,456 | |||||||||||
Total DXP Sales | $ | 295,468 | $ | 311,006 | $ | 1,267,189 | $ | 1,216,197 | |||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
Operating Income | 2019 | 2018 | 2019 | 2018 | |||||||||||
Service Centers | $ | 19,497 | $ | 22,366 | $ | 86,778 | $ | 80,718 | |||||||
Innovative Pumping Solutions | (29 | ) | 9,833 | 28,895 | 33,943 | ||||||||||
Supply Chain Services | 3,465 | 4,008 | 14,445 | 16,204 | |||||||||||
Total Segment Operating Income | $ | 22,933 | $ | 36,207 | $ | 130,118 | $ | 130,865 |
NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO www.dxpe.com THE INDUSTRIAL DISTRIBUTION EXPERTS |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating income for reportable segments | $ | 22,933 | $ | 36,207 | $ | 130,118 | $ | 130,865 | |||||||
Adjustment for: | |||||||||||||||
Amortization of intangibles | 3,651 | 4,011 | 15,074 | 16,586 | |||||||||||
Corporate expenses | 12,540 | 11,767 | 48,922 | 45,828 | |||||||||||
Total operating income | $ | 6,742 | $ | 20,429 | $ | 66,122 | $ | 68,451 | |||||||
Interest expense | 4,587 | 4,978 | 19,498 | 20,937 | |||||||||||
Other expense (income), net | (172 | ) | 126 | (45 | ) | (1192 | ) | ||||||||
Income before income taxes | $ | 2,327 | $ | 15,325 | $ | 46,669 | $ | 48,706 |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Income before income taxes | $ | 2,327 | $ | 15,325 | $ | 46,669 | $ | 48,706 | |||||||
Plus: interest expense | 4,587 | 4,978 | 19,498 | 20,937 | |||||||||||
Plus: depreciation and amortization | 6,481 | 6,454 | 25,174 | 26,164 | |||||||||||
EBITDA | 13,395 | 26,757 | 91,341 | 95,807 | |||||||||||
Plus: NCI loss(gain) before tax | 114 | 37 | 342 | 157 | |||||||||||
Plus: Stock compensation expense | 461 | 526 | 1,963 | 2,549 | |||||||||||
Adjusted EBITDA | 13,970 | 27,320 | 93,646 | 98,513 |
NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO www.dxpe.com THE INDUSTRIAL DISTRIBUTION EXPERTS |
December 31, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash | $ | 54,203 | $ | 40,304 | |||
Restricted Cash | 124 | 215 | |||||
Accounts receivable | 187,116 | 191,829 | |||||
Inventories | 129,364 | 114,830 | |||||
Costs and estimated profits in excess of billings | 32,455 | 32,514 | |||||
Prepaid expenses and other current assets | 4,223 | 4,938 | |||||
Federal income taxes receivable | 996 | 960 | |||||
Total current assets | $ | 408,481 | $ | 385,590 | |||
Property and equipment, net | 63,703 | 51,330 | |||||
Goodwill | 194,052 | 194,052 | |||||
Other intangible assets, net of accumulated amortization | 52,582 | 67,207 | |||||
Operating lease ROU assets | 66,191 | — | |||||
Other long-term assets | 3,211 | 1,783 | |||||
Total assets | $ | 788,220 | $ | 699,962 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Current maturities of long-term debt | $ | 2,500 | $ | 3,407 | |||
Trade accounts payable | 76,438 | 87,407 | |||||
Accrued wages and benefits | 23,412 | 21,275 | |||||
Customer advances | 3,408 | 3,223 | |||||
Billings in excess of costs and estimated profits | 11,871 | 10,696 | |||||
Short-term operating lease liabilities | 17,603 | — | |||||
Other current liabilities | 12,939 | 17,269 | |||||
Total current liabilities | $ | 148,171 | $ | 143,277 | |||
Long-term debt, less unamortized debt issuance costs | 235,419 | 236,979 | |||||
Long-term operating lease liabilities | 48,605 | — | |||||
Other long-term liabilities | 1,205 | 2,819 | |||||
Deferred income taxes | 9,872 | 8,633 | |||||
Total long-term liabilities | $ | 295,101 | $ | 248,431 | |||
Total Liabilities | $ | 443,272 | $ | 391,708 | |||
Equity: | |||||||
Total DXP Enterprises, Inc. equity | $ | 343,802 | $ | 306,848 | |||
Non-controlling interest | 1,146 | 1,406 | |||||
Total Equity | $ | 344,948 | $ | 308,254 | |||
Total liabilities and equity | $ | 788,220 | $ | 699,962 |
NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO www.dxpe.com THE INDUSTRIAL DISTRIBUTION EXPERTS |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net cash provided by operating activities | $ | 33,823 | $ | 25,998 | $ | 41,307 | $ | 35,840 | |||||||
Less: purchase of equipment | 7,873 | 1,618 | 22,120 | 9,323 | |||||||||||
Plus: proceeds from sales of assets | — | 12 | 35 | 2,558 | |||||||||||
Free cash flow | $ | 25,950 | $ | 24,392 | $ | 19,222 | $ | 29,075 |