[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) DXP Enterprises reported robust fiscal year 2023 financial performance, driven by strong sales growth and improved profitability [Q4 & Fiscal Year 2023 Financial Highlights](index=1&type=section&id=Q4%20%26%20Fiscal%20Year%202023%20Financial%20Highlights) DXP Enterprises reported strong growth for fiscal year 2023, with sales increasing 13.4% to $1.7 billion and net income rising significantly to $68.8 million from $48.2 million in 2022. The fourth quarter showed stable sales year-over-year at approximately $407 million, but a substantial improvement in profitability, with diluted EPS more than doubling to $0.94 Q4 2023 vs Q4 2022 Key Metrics | Metric | Q4 2023 | Q4 2022 | | :--- | :--- | :--- | | Sales | $407.0 million | $406.3 million | | Diluted EPS | $0.94 | $0.37 | | Adjusted Diluted EPS | $1.12 | $0.50 | | Adjusted EBITDA | $41.9 million | $31.6 million | | Adjusted EBITDA Margin | 10.3% | 7.8% | Fiscal Year 2023 vs 2022 Key Metrics | Metric | Fiscal 2023 | Fiscal 2022 | | :--- | :--- | :--- | | Sales | $1.7 billion | $1.5 billion | | Sales Growth | 13.4% | - | | GAAP Diluted EPS | $3.89 | $2.47 | | Adjusted Diluted EPS | $4.09 | $2.69 | | Net Income | $68.8 million | $48.2 million | | Adjusted EBITDA | $174.3 million | $126.8 million | | Adjusted EBITDA Margin | 10.4% | 8.6% | - Key strategic and financial activities during fiscal year 2023 included: - Refinancing the Senior Secured Term Loan B, raising **$550 million** - Repurchasing **1.7 million shares** for **$54.7 million** - Completing three acquisitions: Florida Valve, Riordan, and Alliance Pump & Mechanical - Ending the year with **$173.2 million** in cash and restricted cash[5](index=5&type=chunk) [Management Commentary](index=3&type=section&id=Management%20Commentary) Management expressed satisfaction with the strong fiscal 2023 results, highlighting broad-based strength and double-digit revenue growth across all business segments. They noted that sales momentum and a strengthened balance sheet, with $173.2 million in cash, position the company for further organic and acquisition-driven growth in 2024. The outlook is positive for key end markets like oil & gas and water & wastewater - CEO David R Little highlighted that strong performance across all business segments drove the **13.4% year-over-year revenue growth** in fiscal 2023[7](index=7&type=chunk) - The company strengthened its balance sheet in Q4 by raising a new Term Loan B, adding an incremental **$125 million in cash**[7](index=7&type=chunk) - CFO Kent Yee noted that DXP ended fiscal 2023 with a net debt to EBITDA ratio of **2.1:1.0** and plans to drive both organic and acquisition-driven growth in 2024[7](index=7&type=chunk) [Business Segment Performance Highlights](index=3&type=section&id=Business%20Segment%20Performance%20Highlights) For the full fiscal year 2023, all business segments achieved significant year-over-year revenue growth. Innovative Pumping Solutions led with an 18.2% increase, followed by Service Centers at 13.4% and Supply Chain Services at 8.3%. Operating income margins were strongest in Innovative Pumping Solutions at 16.2% Fiscal Year 2023 Segment Performance | Business Segment | Revenue | YoY Growth | Operating Income Margin | | :--- | :--- | :--- | :--- | | Service Centers | $1.1 billion | 13.4% | 14.3% | | Innovative Pumping Solutions | $273.2 million | 18.2% | 16.2% | | Supply Chain Services | $260.4 million | 8.3% | 8.3% | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents DXP's consolidated financial statements, detailing significant growth in sales, net income, and assets [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the twelve months ended December 31, 2023, DXP's sales grew to $1.68 billion from $1.48 billion in 2022. Gross profit increased to $505.3 million, and income from operations rose to $138.7 million. Net income attributable to common shareholders was $68.7 million, resulting in a diluted EPS of $3.89, a significant increase from $2.47 in the prior year Consolidated Statement of Operations (in thousands) | Line Item | 2023 | 2022 | | :--- | :--- | :--- | | Sales | $1,678,600 | $1,480,832 | | Gross Profit | $505,291 | $422,038 | | Income from Operations | $138,722 | $97,752 | | Net Income | $68,812 | $48,102 | | Diluted EPS | $3.89 | $2.47 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2023, DXP's total assets increased to $1.18 billion from $1.04 billion at the end of 2022, primarily driven by a significant rise in cash to $173.1 million. Total liabilities also grew to $796.6 million, largely due to an increase in long-term debt. Total shareholders' equity saw a modest increase to $380.9 million Consolidated Balance Sheet Highlights (in thousands) | Line Item | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $173,120 | $46,026 | | Total Current Assets | $648,554 | $516,114 | | Total Assets | $1,177,436 | $1,037,280 | | **Liabilities & Equity** | | | | Total Current Liabilities | $224,165 | $212,901 | | Long-term Debt, net | $520,697 | $409,205 | | Total Liabilities | $796,557 | $671,888 | | Total DXP Enterprises, Inc. equity | $380,879 | $365,392 | [Non-GAAP Financial Measures & Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section provides reconciliations for key non-GAAP financial measures, including Adjusted EBITDA, Free Cash Flow, and Adjusted Net Income [Reconciliation of EBITDA and Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20EBITDA%20and%20Adjusted%20EBITDA) The company provides a reconciliation from net income to EBITDA and Adjusted EBITDA. For fiscal year 2023, Adjusted EBITDA was $174.3 million, a 37.5% increase from $126.8 million in 2022. Adjustments from net income primarily included interest expense, taxes, D&A, stock compensation, and other non-recurring items EBITDA and Adjusted EBITDA Reconciliation (in thousands) | Metric | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Income attributable to DXP | $16,005 | $7,154 | $68,812 | $48,155 | | EBITDA | $40,500 | $31,136 | $170,182 | $123,536 | | Adjusted EBITDA | $41,861 | $31,618 | $174,305 | $126,806 | [Reconciliation of Free Cash Flow](index=8&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) Free cash flow for fiscal year 2023 was $94.0 million, a dramatic improvement from just $1.0 million in fiscal 2022. This was driven by a substantial increase in net cash from operating activities, which grew to $106.2 million Free Cash Flow Reconciliation (in thousands) | Metric | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | :--- | | Net cash from operating activities | $42,444 | $3,638 | $106,222 | $5,894 | | Less: purchases of property and equipment, net | ($5,160) | ($1,490) | ($12,263) | ($4,916) | | Free Cash Flow | $37,284 | $2,148 | $93,959 | $978 | [Reconciliation of Adjusted Net Income and EPS](index=9&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income%20and%20EPS) Adjusted Net Income for fiscal year 2023 was $72.5 million, or $4.09 per diluted share, compared to $52.3 million, or $2.69 per diluted share, in 2022. Adjustments to GAAP Net Income included one-time debt financing costs and other non-recurring items Adjusted Net Income and EPS Reconciliation | Metric | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Income attributable to DXP | $16.0M | $7.2M | $68.8M | $48.2M | | Adjusted Net Income | $19.0M | $9.7M | $72.5M | $52.3M | | Diluted EPS | $0.94 | $0.37 | $3.89 | $2.47 | | Adjusted Diluted EPS | $1.12 | $0.50 | $4.09 | $2.69 | [Supplemental Financial Data](index=7&type=section&id=Supplemental%20Financial%20Data) This section provides detailed segment performance data and an analysis of sales drivers, including organic growth and acquisitions [Segment Data](index=7&type=section&id=Segment%20Data) For the full year 2023, Service Centers remained the largest segment with $1.15 billion in sales and $163.9 million in operating income. Innovative Pumping Solutions showed strong growth, with sales reaching $273.2 million and operating income of $44.3 million. Supply Chain Services contributed $260.4 million in sales and $21.5 million in operating income Segment Sales (in thousands) | Segment | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | :--- | | Service Centers | $256,966 | $279,378 | $1,145,082 | $1,009,356 | | Innovative Pumping Solutions | $88,748 | $61,212 | $273,150 | $231,102 | | Supply Chain Services | $61,330 | $65,704 | $260,368 | $240,374 | Segment Operating Income (in thousands) | Segment | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | :--- | | Service Centers | $33,603 | $31,807 | $163,877 | $127,174 | | Innovative Pumping Solutions | $12,622 | $6,826 | $44,260 | $30,037 | | Supply Chain Services | $5,001 | $5,238 | $21,524 | $19,530 | [Sales Analysis](index=9&type=section&id=Sales%20Analysis) The company's sales per business day remained consistent throughout 2023, averaging around $6.7 million. For the full year, organic sales growth was the primary driver of performance, with organic sales reaching $1.65 billion, up from $1.44 billion in 2022. Sales from acquisitions contributed $33.1 million in 2023 2023 Sales Per Business Day (in thousands) | Quarter | Total Sales | Business Days | Sales Per Business Day | | :--- | :--- | :--- | :--- | | Q1 | $424 | 64 | $6,629 | | Q2 | $428 | 64 | $6,688 | | Q3 | $419 | 63 | $6,655 | | Q4 | $407 | 61 | $6,673 | Organic vs. Acquisition Sales (in thousands) | Sales Type | 2023 | 2022 | | :--- | :--- | :--- | | Total DXP Sales | $1,678,600 | $1,480,832 | | Acquisition Sales | $33,078 | $41,527 | | Organic Sales | $1,645,522 | $1,439,305 | [Company Information & Disclosures](index=4&type=section&id=Company%20Information%20%26%20Disclosures) This section provides an overview of DXP Enterprises' business and outlines important disclosures regarding forward-looking statements and risks [About DXP Enterprises, Inc.](index=4&type=section&id=About%20DXP%20Enterprises%2C%20Inc.) DXP Enterprises, Inc. is a distributor of products and services to industrial customers in the United States, Canada, Mexico, and Dubai. The company provides innovative pumping solutions, supply chain services, and a wide range of MROP (maintenance, repair, operating, and production) products and services. Its operations are divided into three business segments: Service Centers, Innovative Pumping Solutions, and Supply Chain Services - DXP is a leading products and service distributor focused on adding value and total cost savings for industrial customers[9](index=9&type=chunk) - The company's business segments are Service Centers, Innovative Pumping Solutions, and Supply Chain Services[9](index=9&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements that involve risks and uncertainties. These statements pertain to expectations about future profitability, cash flow, liquidity, and growth. Key risks include fluctuations in oil and gas prices, economic conditions, the ability to obtain capital, and other factors detailed in the company's SEC filings - The report includes forward-looking statements concerning future business performance, profitability, and growth, which are subject to significant risks and uncertainties[10](index=10&type=chunk) - Identified risks include oil and gas price volatility, economic conditions, and other factors disclosed in SEC filings like Form 10-K and 10-Q[10](index=10&type=chunk)

HOUSTON--(BUSINESS WIRE)--DXP Enterprises, Inc. (NASDAQ: DXPE) today announced financial results for the fourth quarter and fiscal year ended December 31, 2023. The following are results for the three and twelve months ended December 31, 2023, compared to the three and twelve months ended December 31, 2022. A reconciliation of the non-GAAP financial measures can be found in the back of this press release. Fourth Quarter 2023 financial highlights: Sales were $407.0 million or $6.7 million per day for th ...

HOUSTON--(BUSINESS WIRE)--DXP Enterprises, Inc. (NASDAQ: DXPE) today announced that it has completed the acquisition of Pro-Seal, Inc. (“Pro-Seal”). Founded in 1987, Pro-Seal is headquartered in Pontiac, Michigan and operates out of two locations servicing the Great Lakes Region of the U.S. and all of Alaska. Pro-Seal is a leading distributor of pumping systems, fluid sealing and related seal support systems and other industrial pumping equipment and services and lubricants. DXP funded the acquisition wi ...

DXP Enterprises (DXPE) ended the recent trading session at $35.12, demonstrating a -1.27% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.12%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 0.41%.Shares of the industrial products supplier have appreciated by 9.61% over the course of the past month, outperforming the Industrial Products sector's gain of 6.08% and the S&P 500's gain of 4.83%.Investors will be eagerly watching ...

HOUSTON--(BUSINESS WIRE)--DXP Enterprises, Inc. (NASDAQ:DXPE), a leading products and service distributor that adds value and total cost savings solutions to MRO and OEM customers in virtually every industry, plans to issue a press release announcing its financial results for the fourth quarter and year ended December 31, 2023, on Thursday, March 7th. The earnings announcement will be released before the market opens. DXP will host a conference call, to be webcast live, on the Company’s website (www.dxpe.co ...

The latest trading session saw DXP Enterprises (DXPE) ending at $35.16, denoting a +0.46% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.13%.Shares of the industrial products supplier have appreciated by 6.03% over the course of the past month, underperforming the Industrial Products sector's gain of 6.21% and outperforming the S&P 500's gain of 4.74%.Market participants will be closely follow ...

In the latest trading session, DXP Enterprises (DXPE) closed at $34.24, marking a -1.27% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.6%. On the other hand, the Dow registered a loss of 0.17%, and the technology-centric Nasdaq decreased by 0.92%.Coming into today, shares of the industrial products supplier had gained 6.97% in the past month. In that same time, the Industrial Products sector gained 5.78%, while the S&P 500 gained 3.56%.The upcoming earnings relea ...

HOUSTON--(BUSINESS WIRE)--DXP Enterprises, Inc. (NASDAQ: DXPE) today announced that it has completed the acquisition of Kappe Associates, Inc. (“Kappe”). Founded in 1946, Kappe is headquartered in Frederick, Maryland and operates out of three locations servicing Maryland, the District of Columbia, Delaware, Virginia, Pennsylvania, Southern New Jersey, and West Virginia. Kappe is a leading distributor and manufacturers representative of pumps, controls and process equipment focused on serving the water and ...

DXP Enterprises, Inc. (NASDAQ:DXPE) Q3 2023 Earnings Conference Call November 9, 2023 11:00 AM ET Company Participants Kent Yee - Chief Financial Officer David Little - Chairman & Chief Executive Officer Conference Call Participants Tommy Moll - Stephens Inc. Operator Good morning. My name is Krista, and I'll be your conference operator today. At this time, I would like to welcome everyone to the DXP Enterprises Third Quarter Earnings Conference Call. All lines have been placed on mute to prevent any backgr ...

THE INDUSTRIAL DISTRIBUTION EXPERTS Results for Q3 Fiscal 2023 Earnings Announcement: November 9, 2023 (Quarter Ending September 30, 2023) This presentation contains forward-looking statements within the meaning of the U.S. federal securities laws that involve risks and uncertainties. Certain statements contained in this report are not purely historical, including statements regarding our expectations, beliefs, intentions or strategies regarding the future that are forward-looking. These statements include ...