We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
DXP Enterprises Inc | NASDAQ:DXPE | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.91 | 1.87% | 49.67 | 48.11 | 51.52 | 50.54 | 48.91 | 48.91 | 113,468 | 00:57:14 |
DXP Enterprises, Inc. (NASDAQ: DXPE) today announced financial results for the fourth quarter ended December 31, 2017. The following are results for the three and twelve months ended December 31, 2017, compared to the three and twelve months ended December 31, 2016. A reconciliation of the non-GAAP financial measures can be found in the back of this press release.
Fourth Quarter 2017 financial highlights:
Fiscal Year 2017 financial highlights:
Business segment financial highlights:
David R. Little, Chairman and CEO remarked, “We closed the year with fourth-quarter sales growing 5.4 percent sequentially leading to full year results growing 7.2 percent year-over-year, adjusting for the divestiture of Vertex. Improved market conditions together with DXP’s ability to execute on key organic initiatives are delivering widespread improvements across DXP.
I am encouraged with the current state of our company and I have never been more confident in our strategy and ability to create shareholder and stakeholder value. We are prioritizing investments and focusing on DXP having a smart recovery through this next up cycle. We are also emphasizing continuous improvement across DXP to generate margin expansion while growing the top-line.
DXP’s fiscal 2017 sales were $1.0 billion, or a 4.6 percent increase over fiscal 2016, on a reported actual basis. Each of our business segments experienced sales growth in fiscal 2017 with Innovative Pumping Solutions growing 9.0 percent, Supply Chain Services growing 4.9 percent and Service Centers growing 3.3 percent. Fiscal 2017 sales were $641.3 million for Service Centers, $204.0 million for Innovative Pumping Solutions and $161.5 million for Supply Chain Services. DXP produced EBITDA of $61.7 million growing 11.8 percent over fiscal 2016.
As we look ahead, we expect accelerating organic sales growth, EBITDA margin enhancement, with strong cash flow generation and growth in earnings. Our key end markets continue to show stabilization but we will watch all our markets closely, especially given our recent experience of both oil and gas and industrial cycling down at the same time. In 2018, we will build on the momentum we have generated and remain customer-focused as we continue to create long-term value for shareholders.”
Kent Yee, CFO added, “DXP’s fiscal 2017 financial performance reflects the beginning of a positive improvement in our business. Adjusting for the divestiture of Vertex, sales and EBITDA grew 7.2 percent and 32.2 percent, respectively. Our fiscal 2017 diluted earnings per share was $0.93, which also includes a $1.3 million provisional benefit related to U.S. tax reform. DXP ended the year with $25.6 million in cash on the balance sheet and net debt of $226.5 million. During the year, we successfully refinanced our credit facility with a new ABL and Term Loan B, while positioning DXP to take advantage of what we believe is building momentum in our business. DXP is in a position to invest in our business and see potential for significant value creation as we pivot our strategy to growth and continuous improvement to expand margins. DXP’s execution from our sales teams and partners is driving growth across our businesses and we look forward to a successful fiscal 2018.”
Non-GAAP Financial Measures
DXP supplements reporting of net income with non-GAAP measurements, including EBITDA, Adjusted EBITDA and free cash flow. This supplemental information should not be considered in isolation or as a substitute for the unaudited GAAP measurements. Additional information regarding EBITDA and free cash flow referred to in this press release are included below under "--Unaudited Reconciliation of Non-GAAP Financial Information."
The Company believes EBITDA provides additional information about: (i) operating performance, because it assists in comparing the operating performance of the business, as it removes the impact of non-cash depreciation and amortization expense as well as items not directly resulting from core operations such as interest expense and income taxes and (ii) the performance and the effectiveness of operational strategies. Additionally, EBITDA performance is a component of a measure of the Company’s financial covenants under its credit facility. Furthermore, some investors use EBITDA as a supplemental measure to evaluate the overall operating performance of companies in the industry. Management believes that some investors’ understanding of performance is enhanced by including this non-GAAP financial measure as a reasonable basis for comparing ongoing results of operations. By providing this non-GAAP financial measure, together with a reconciliation from net income, the Company believes it is enhancing investors’ understanding of the business and results of operations, as well as assisting investors in evaluating how well the Company is executing strategic initiatives.
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout the United States, Canada, Mexico and Dubai. DXP provides innovative pumping solutions, supply chain services and maintenance, repair, operating and production ("MROP") services that emphasize and utilize DXP’s vast product knowledge and technical expertise in rotating equipment, bearings, power transmission, metal working, industrial supplies and safety products and services. DXP's breadth of MROP products and service solutions allows DXP to be flexible and customer-driven, creating competitive advantages for our customers. DXP’s business segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. For more information, go to www.dxpe.com.
The Private Securities Litigation Reform Act of 1995 provides a “safe-harbor” for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made by or to be made by the Company) contains statements that are forward-looking. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future; and accordingly, such results may differ from those expressed in any forward-looking statement made by or on behalf of the Company. These risks and uncertainties include, but are not limited to; ability to obtain needed capital, dependence on existing management, leverage and debt service, domestic or global economic conditions, and changes in customer preferences and attitudes. In some cases, you can identify forward-looking statements by terminology such as, but not limited to, “may,” “will,” “should,” “intend,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “goal,” or “continue” or the negative of such terms or other comparable terminology. For more information, review the Company’s filings with the Securities and Exchange Commission.
DXP ENTERPRISES, INC. AND SUBSIDIARIESUNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
($ thousands, except per share amounts)
Years Ended
Three Months Ended
December 31, December 31, 2017 2016 2017 2016 Sales $ 1,006,782 $ 962,092 $ 265,627 $ 222,291 Cost of sales 735,201 697,290 194,460 161,730 Gross profit 271,581 264,802 71,167 60,561 Selling, general and administrative expenses 238,091 245,470 62,680 53,009 Operating income 33,490 19,332 8,487 7,552 Other income, net (456) (5,906) (132) (5,509) Interest expense 17,054 15,564 4,481 3,866 Income before income taxes 16,892 9,674 4,138 9,195 Provision (benefit) for income taxes 363 2,523 (2,517) 2,064 Net income 16,529 7,151 6,655 7,131 Less: Net (loss) income attributable to non-controlling interest (359) (551) 1 (250) Net income attributable to DXP Enterprises, Inc. 16,888 7,702 6,654 7,381 Preferred stock dividend 90 90 22 22 Net income attributable to common shareholders$
16,798
$
7,612
$
6,632
$
7,359
Diluted earnings per share attributable to DXP Enterprises, Inc. $ 0.93 $ 0.49 $ 0.36 $ 0.42Weighted average common shares and common equivalent shares outstanding
18,240
15,882
18,232
17,411
SEGMENT DATA
($ thousands, unaudited)
Sales by Segment Years Ended Three Months Ended December 31, December 31,2017
2016
2017
2016
Service Centers $641,275
$ 621,007 $166,951
$ 139,655 Innovative Pumping Solutions204,030
187,12459,474
45,510 Supply Chain Services 161,477 153,961 39,201 37,126Total DXP
$1,006,782
$ 962,092 $265,626
$ 222,291Operating Income by Segment
Years Ended Three Months Ended December 31, December 31,2017
2016
2017
2016
Service Centers $63,250
$ 47,633 $15,941
$ 12,155 Innovative Pumping Solutions11,423
9,8674,321
2,444 Supply Chain Services 15,450 15,449 3,693 3,838Total DXP
$90,123
$ 72,949 $23,955
$ 18,437 Reconciliation of Operating Income for Reportable Segments($ thousands, unaudited)
Years Ended
Three Months EndedDecember 31,
December 31,
2017 2016 2017 2016 Operating income for reportable segments $90,123
$ 72,949 $23,955
$ 18,437 Adjustment for: Amortization of intangibles17,265
18,0614,323
4,504 Corporate expense 39,368 35,556 11,145 6,381 Total operating income 33,490 19,332 8,487 7,552 Interest expense 17,054 15,564 4,481 3,866 Other income, net (456) (5,906) (132) (5,509) Income before income taxes $16,892
$ 9,674 $ 4,138 $ 9,195
Unaudited Reconciliation of Non-GAAP Financial Information
The following table is a reconciliation of Adjusted EBITDA**, a non-GAAP financial measure, to income before income taxes, calculated and reported in accordance with U.S. GAAP ($ thousands, unaudited).
Years Ended Three Months Ended December 31, December 31, 2017 2016 2017 2016 Income before income taxes $ 16,892 $ 9,674 $ 4,138 $ 9,195Plus: interest expense
17,054 15,564 4,481 3,866 Plus: depreciation and amortization 27,786 29,994 7,188 7,367EBITDA
$ 61,732 $ 55,232 $ 15,807 $ 20,428 Plus: NCI loss (income) before tax 577 886 (1) 400 Plus: Stock compensation expense 1,708 3,580 316 1,636 Adjusted EBITDA $ 64,017 $ 59,698 $ 16,122 $ 22,464 **EBITDA – earnings before impairments, interest, taxes, depreciation and amortizationThe following table is a reconciliation of Free Cash Flow***, a non-GAAP financial measure, to cash flow from operating activities, calculated and reported in accordance with U.S. GAAP ($ thousands, unaudited).
Years Ended Three Months Ended December 31, December 31, 2017 2016 2017 2016 Net cash provided by operating activities $ 12,545 $ 48,006 $ 4,017 $ 12,866 Less: purchase of equipment 2,811 4,868 654 1,977Free Cash Flow
$ 9,734 $ 43,138 $ 3,363 $ 10,889 Plus: Outstanding Checks 17,054 - 4,354 - Adjusted Free Cash Flow $ 26,788 $ 43,138 $ 7,717 $ 10,889 ***Outstanding Checks – Accounting rules require companies to net outstanding check balances against cash that is available. Prior to DXP’s Q3 refinancing, DXP did not have cash on its balance sheet with its primary lender to net the outstanding checks, thus they were included in the accounts payable balance.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180320006658/en/
DXP Enterprises, Inc.Kent Yee, 713-996-4700Senior Vice President, CFOwww.dxpe.com
1 Year DXP Enterprises Chart |
1 Month DXP Enterprises Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions