Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with DXP Enterprises identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - DXP Enterprises has a historical EPS growth rate of 60.2%, with projected EPS growth of 17.5% for the current year, significantly outperforming the industry average of 5% [5]. Group 2: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 6.5%, surpassing the industry average of 1.6%. Additionally, its annualized cash flow growth rate over the past 3-5 years stands at 12.3%, compared to the industry average of 9% [6][7]. Group 3: Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for DXP Enterprises, with the Zacks Consensus Estimate increasing by 0.4% over the past month, indicating positive momentum [9]. Group 4: Overall Positioning - DXP Enterprises holds a Growth Score of B and a Zacks Rank of 2, positioning it favorably for potential outperformance in the growth stock category [10][11].

Core Viewpoint - The importance of cash flow in assessing a company's financial health and investment potential is emphasized, highlighting that cash flow is a critical indicator of a company's ability to sustain growth and manage obligations effectively [1][2][3]. Cash Flow Analysis - Companies must be evaluated not just on profit but on their efficiency in generating cash flows, as a lack of cash flow can lead to financial difficulties even for profitable firms [2]. - In the current global economic climate, characterized by uncertainties and liquidity concerns, analyzing a company's cash-generating efficiency is particularly relevant [3]. - Positive cash flow indicates an increase in liquid assets, enabling a company to meet obligations, reinvest, and return wealth to shareholders, while negative cash flow suggests declining liquidity and reduced operational flexibility [4]. Growth and Management Efficiency - A company must not only maintain positive cash flow but also ensure that it is increasing over time, reflecting effective cash management and reduced reliance on external financing [5]. Screening Parameters for Investment - A screening process was established to identify stocks with increasing cash flow, focusing on those whose latest reported cash flow is at least equal to the 5-year average cash flow per share, indicating a positive trend [6]. - Additional criteria include a Zacks Rank of 1 (Strong Buy), an average broker rating of 1, a current price of at least $5, and a VGM Score of B or better [7]. Selected Stocks - **Nomad Foods Limited (NOMD)**: Engages in frozen food manufacturing and distribution, with a Zacks Consensus Estimate for 2025 earnings per share improving by 4.0% recently and a VGM Score of A [8]. - **DXP Enterprises, Inc. (DXPE)**: Provides innovative pumping solutions and services, with a current-year earnings estimate revised upward by 22.5% over the past two months and a VGM Score of B [9]. - **Great Lakes Dredge & Dock Corporation (GLDD)**: The largest provider of dredging services in the U.S., with a 34.8% upward revision in the 2025 earnings estimate to 93 cents per share and a VGM Score of A [10]. - **Kingstone Companies, Inc. (KINS)**: Offers property and casualty insurance products, with a 5.6% improvement in the 2025 earnings estimate to $1.90 and a VGM Score of A [10].

Company Performance - DXP Enterprises (NASDAQ: DXPE) reported solid double-digit growth in its topline as it entered 2025, primarily driven by nearly 39% growth in its Innovative Pumping Solutions (IPS) segment [1] Growth Outlook - The growth momentum in the IPS segment is expected to continue, indicating a positive outlook for the company's future performance [1]

Financial Performance - For the three months ended March 31, 2025, DXP Enterprises reported total sales of approximately $476.6 million, an increase of 15.5% compared to $412.6 million for the same period in 2024[107]. - Gross profit for the three months ended March 31, 2025, was $150.3 million, resulting in a gross profit margin of 31.5%, up from 30.0% in the prior year[107]. - EBITDA for the same period was $51.0 million, with an EBITDA margin of 10.7%, compared to 9.4% in the previous year[98]. - Operating income for Q1 2025 increased by $11.4 million to $40.5 million, reflecting growth in the SC and IPS segments[112]. - Total DXP Sales for the three months ended March 31, 2025, increased by $63.9 million, or 15.5%, to $476.6 million compared to $412.6 million in the prior year[108]. Sales Growth - Sales in the Service Centers segment increased by $38.6 million, while the Innovative Pumping Solutions segment saw an increase of $24.0 million, contributing to the overall sales growth[107]. - The Company experienced a 17.9% increase in sales in its Service Centers and Innovative Pumping Solutions segments, totaling approximately $413.3 million for the quarter[93]. - Sales in the Service Centers segment rose by $38.6 million, or 13.4%, driven by increases in the Texas Gulf Coast, Ohio River Valley, and California regions[108]. - Innovative Pumping Solutions segment sales increased by $24.0 million, or 38.5%, attributed to growth in fabrication and global solutions groups[109]. - The Supply Chain Services segment reported sales of approximately $63.3 million, a 2.1% increase compared to the same period in 2024[94]. - Supply Chain Services segment sales grew by $1.3 million, or 2.1%, primarily due to increases in the oil and gas end market[110]. Cash Flow and Debt - Free cash flow for the three months ended March 31, 2025, was $(16.9) million, a decrease from $24.1 million in the same period of 2024[98]. - Total outstanding debt as of March 31, 2025, was $647.3 million, representing 59.3% of total capitalization[129]. - Cash available as of March 31, 2025, was $114.3 million, with an additional $108.9 million in credit facility availability[123]. - Working capital increased by $34.3 million to $325.3 million as of March 31, 2025, due to sustained sales growth and acquisitions[136]. Expenses and Economic Conditions - SG&A expenses rose by $15.0 million, or 15.8%, to $109.8 million, mainly due to higher payroll and related expenses[111]. - DXP Enterprises is actively monitoring economic conditions and adjusting strategies to mitigate risks associated with inflation and supply chain challenges[90].

[First Quarter 2025 Results Overview](index=1&type=section&id=First%20Quarter%202025%20Results%20Overview) DXP Enterprises, Inc. reported strong financial performance in Q1 2025, driven by significant sales and net income growth, alongside strategic acquisition and positive management outlook [Financial Highlights](index=1&type=section&id=Financial%20Highlights) DXP Enterprises, Inc. achieved significant financial growth in Q1 2025, with double-digit year-over-year increases in sales and net income, alongside substantial improvements in adjusted EBITDA and diluted EPS, reflecting the company's business resilience Financial Performance Overview | Metric | Q1 2025 | Q1 2024 | Y-o-Y Change | Q4 2024 | Q-o-Q Change | | :-------------------------------- | :------------- | :------------- | :--------- | :------------- | :--------- | | Sales ($ millions) | $476.6 | $412.6 | 15.5% | - | - | | Organic Sales ($ millions) | - | - | 11.1% | - | - | | Net Income ($ millions) | $20.6 | $11.3 | 82.3% | $21.4 | -3.7% | | GAAP Diluted EPS ($) | $1.25 | $0.67 | 86.6% | - | - | | Adjusted Diluted EPS ($) | $1.26 | $0.70 | 80.0% | - | - | | Adjusted EBITDA ($ millions) | $52.5 | $40.3 | 30.3% | $50.3 | 4.4% | | Adjusted EBITDA Margin (%) | 11.0% | 9.8% | 1.2 ppt | 10.7% | 0.3 ppt | | Ending Cash ($ millions) | $114.3 | - | - | - | - | | Total Debt ($ millions) | $647.3 | - | - | - | - | | Net Debt to EBITDA Ratio | 2.50:1.0 | - | - | - | - | - The company completed the acquisition of Arroyo Process Equipment, further expanding its business scope[5](index=5&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management expressed satisfaction with Q1 results, highlighting business resilience and continuous sales growth, anticipating increased project backlog and diversified end markets to drive H2 growth, supported by a strong balance sheet - Chairman and CEO David R. Little stated that Q1 results reflect the resilience and durability of DXP's business, expressing satisfaction with continuous sales growth and strong gross margins, and expecting sustained sales and profit growth for the remainder of 2025[4](index=4&type=chunk) - CFO Kent Yee noted market bright spots and anticipated H2 growth driven by increased project backlog and diversified end markets, with a strong balance balance sheet including **$114.3 million** in cash and a **2.50:1.0** net debt to EBITDA ratio[4](index=4&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) This section provides an overview of DXP Enterprises, Inc.'s business model, service offerings, and details for the upcoming investor conference call [About DXP Enterprises, Inc.](index=2&type=section&id=About%20DXP%20Enterprises%2C%20Inc.) DXP Enterprises, Inc. is a leading distributor of products and services, providing value-added and total cost savings solutions to industrial customers across North America and Dubai, specializing in innovative pumping solutions, supply chain services, and MROP services - DXP Enterprises, Inc. is a leading distributor of products and services, providing value-added and total cost savings solutions to industrial customers across North America and Dubai[9](index=9&type=chunk) - The company offers innovative pumping solutions, supply chain services, and maintenance, repair, operating, and production (MROP) services, leveraging extensive product knowledge and technical expertise in rotating equipment, bearings, power transmission, metalworking, industrial supplies, and safety products[9](index=9&type=chunk) - DXP's business segments include Service Centers, Innovative Pumping Solutions, and Supply Chain Services[9](index=9&type=chunk) [Conference Call Details](index=2&type=section&id=Conference%20Call%20Details) DXP Enterprises, Inc. management will host a conference call on May 8, 2025, to discuss financial results, with investors able to access the webcast and slide presentation via the company's investor relations website - DXP management will host a conference call on May 8, 2025, at 10:30 AM CT to discuss the company's financial results[7](index=7&type=chunk) - Investors can listen to the webcast and access the slide presentation through the investor relations section of the company's website at https://ir.dxpe.com[7](index=7&type=chunk)[8](index=8&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents DXP's Q1 2025 unaudited financial statements, including detailed operating results and balance sheet information, reflecting significant year-over-year growth [Statements of Operations](index=4&type=section&id=Statements%20of%20Operations) In Q1 2025, DXP saw significant growth in sales and net income, with increased cost of sales and SG&A expenses, but a larger rise in operating income and income before taxes, leading to a substantial year-over-year increase in net income Condensed Consolidated Statements of Operations | Metric ($ thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--------------------------------- | :-------------------- | :-------------------- | :------- | | Sales | 476,569 | 412,635 | 15.5% | | Cost of Sales | 326,304 | 288,753 | 13.0% | | Gross Profit | 150,265 | 123,882 | 21.3% | | Selling, General and Administrative Expenses | 109,750 | 94,751 | 15.8% | | Operating Income | 40,515 | 29,131 | 39.1% | | Interest Expense | 14,660 | 15,544 | -5.7% | | Income Before Income Taxes | 27,173 | 15,555 | 74.7% | | Provision for Income Taxes | 6,584 | 4,223 | 55.9% | | Net Income | 20,589 | 11,332 | 81.7% | | Diluted Earnings Per Share | 1.25 | 0.67 | 86.6% | | Diluted Weighted Average Common Shares | 16,538 | 16,968 | -2.5% | [Balance Sheets](index=5&type=section&id=Balance%20Sheets) As of March 31, 2025, DXP's total assets increased from December 31, 2024, primarily due to higher accounts receivable, inventory, and net property and equipment, while cash balances decreased, and total liabilities and equity both rose Condensed Consolidated Balance Sheets | Metric ($ thousands) | March 31, 2025 | December 31, 2024 | Q-o-Q Change | | :--------------------------------- | :------------- | :------------- | :------- | | **Assets** | | | | | Cash | 114,283 | 148,320 | -22.9% | | Accounts Receivable, Net | 357,764 | 339,365 | 5.4% | | Inventory | 109,876 | 103,113 | 6.6% | | Total Current Assets | 661,756 | 661,874 | 0.0% | | Property and Equipment, Net | 97,658 | 81,556 | 19.7% | | Goodwill | 459,963 | 452,343 | 1.7% | | Total Assets | 1,382,512 | 1,349,494 | 2.4% | | **Liabilities and Equity** | | | | | Total Current Liabilities | 245,417 | 243,984 | 0.6% | | Long-Term Debt, Net | 620,901 | 621,684 | -0.1% | | Total Liabilities | 937,853 | 926,706 | 1.2% | | Total DXP Enterprises, Inc. Equity | 444,659 | 422,788 | 5.2% | | Total Liabilities and Equity | 1,382,512 | 1,349,494 | 2.4% | [Segment Performance](index=6&type=section&id=Segment%20Performance) DXP's Q1 2025 segment performance shows robust sales and operating income growth across all business units, particularly in Innovative Pumping Solutions [Sales by Business Segment](index=6&type=section&id=Sales%20by%20Business%20Segment) In Q1 2025, all business segments achieved year-over-year sales growth, with the Innovative Pumping Solutions segment showing the strongest increase and Service Centers contributing the largest sales volume Sales by Business Segment | Business Segment ($ thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--------------------- | :-------------------- | :-------------------- | :------- | | Service Centers | 327,075 | 288,435 | 13.4% | | Innovative Pumping Solutions | 86,182 | 62,216 | 38.5% | | Supply Chain Services | 63,312 | 61,984 | 2.1% | | **Total Sales** | **476,569** | **412,635** | **15.5%** | [Operating Income by Business Segment](index=6&type=section&id=Operating%20Income%20by%20Business%20Segment) In Q1 2025, all business segments reported year-over-year operating income growth, with the Innovative Pumping Solutions segment achieving the highest growth rate and Service Centers contributing the largest operating income Operating Income by Business Segment | Business Segment ($ thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--------------------- | :-------------------- | :-------------------- | :------- | | Service Centers | 47,045 | 40,320 | 16.7% | | Innovative Pumping Solutions | 13,406 | 6,970 | 92.3% | | Supply Chain Services | 5,564 | 5,262 | 5.7% | | **Total Segment Operating Income** | **66,015** | **52,552** | **25.6%** | [Reconciliation of Operating Income for Reportable Segments](index=6&type=section&id=Reconciliation%20of%20Operating%20Income%20for%20Reportable%20Segments) The company reconciles total operating income from reportable segments to consolidated operating income by deducting intangible asset amortization and corporate expenses, further adjusting for interest expense and other income to arrive at income before taxes Reconciliation of Operating Income for Reportable Segments | Metric ($ thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------------------------- | :-------------------- | :-------------------- | | Reportable Segment Operating Income | 66,015 | 52,552 | | Less: Amortization of Intangible Assets | 5,355 | 4,369 | | Less: Corporate Expenses | 20,145 | 19,052 | | **Operating Income** | **40,515** | **29,131** | | Less: Interest Expense | 14,660 | 15,544 | | Plus: Other Income, Net | (1,318) | (1,968) | | **Income Before Income Taxes** | **27,173** | **15,555** | [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles DXP's non-GAAP financial metrics, including EBITDA, Adjusted EBITDA, Organic Sales, Free Cash Flow, and Adjusted Net Income, providing additional insights into operational performance [Definitions and Rationale](index=8&type=section&id=Definitions%20and%20Rationale) DXP uses non-GAAP metrics like EBITDA, Adjusted EBITDA, Free Cash Flow, Organic Sales, and Adjusted Net Income to supplement GAAP reporting, providing a clearer view of operational performance, liquidity, and strategic execution by excluding non-cash and non-recurring items - EBITDA is defined as net income attributable to DXP Enterprises, Inc. plus interest, taxes, depreciation, and amortization; Adjusted EBITDA further subtracts stock-based compensation expense and all other non-cash expenses, adjustments, and non-recurring items[22](index=22&type=chunk) - The company believes EBITDA provides additional information regarding operating performance and the effectiveness of operating strategies by eliminating the impact of non-cash depreciation and amortization expenses, and non-core operating items such as interest expense and income taxes[11](index=11&type=chunk) - Free Cash Flow is defined as net cash provided by operating activities less purchases of property and equipment; the company considers Free Cash Flow an important liquidity measure, indicating cash available for acquisitions, investments, debt repayment, and stock repurchases[11](index=11&type=chunk)[26](index=26&type=chunk) - Organic Sales include sales from locations and acquired businesses owned for at least twelve months, excluding sales from acquisitions owned for less than twelve months[24](index=24&type=chunk) [EBITDA and Adjusted EBITDA Reconciliation](index=7&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) In Q1 2025, DXP's EBITDA and Adjusted EBITDA both saw significant growth, with Adjusted EBITDA margin also improving year-over-year, indicating an enhancement in the company's core profitability Reconciliation of EBITDA and Adjusted EBITDA | Metric ($ thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--------------------- | :-------------------- | :-------------------- | :------- | | Income Before Income Taxes | 27,173 | 15,555 | 74.7% | | Plus: Interest Expense | 14,660 | 15,544 | -5.7% | | Plus: Depreciation and Amortization | 9,134 | 7,538 | 21.2% | | **EBITDA** | **50,967** | **38,637** | **31.9%** | | Plus: Other Non-Recurring Items | 235 | 842 | -72.1% | | Plus: Stock-Based Compensation Expense | 1,317 | 864 | 52.4% | | **Adjusted EBITDA** | **52,519** | **40,343** | **30.2%** | | Operating Income Margin (%) | 8.5% | 7.1% | 1.4 ppt | | EBITDA Margin (%) | 10.7% | 9.4% | 1.3 ppt | | Adjusted EBITDA Margin (%) | 11.0% | 9.8% | 1.2 ppt | [Organic Sales Reconciliation](index=8&type=section&id=Organic%20Sales%20Reconciliation) In Q1 2025, DXP's total sales and organic sales both increased, with acquisitions contributing **$31.112 million** in sales, and organic sales growing by **11.1%** year-over-year Organic Sales Reconciliation | Metric ($ thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--------------------- | :-------------------- | :-------------------- | :------- | | Service Centers Sales | 327,075 | 288,435 | 13.4% | | Innovative Pumping Solutions Sales | 86,182 | 62,216 | 38.5% | | Supply Chain Services Sales | 63,312 | 61,984 | 2.1% | | **DXP Total Sales** | **476,569** | **412,635** | **15.5%** | | Acquisition Sales | 31,112 | 11,775 | 164.2% | | **Organic Sales** | **445,457** | **400,860** | **11.1%** | | Business Days | 63 | 63 | 0.0% | | Sales Per Business Day | 7,565 | 6,550 | 15.5% | | Organic Sales Per Business Day | 7,071 | 6,363 | 11.1% | [Free Cash Flow Reconciliation](index=8&type=section&id=Free%20Cash%20Flow%20Reconciliation) In Q1 2025, DXP's Free Cash Flow was negative **$16.941 million**, primarily due to a significant decrease in cash flow from operating activities and increased purchases of property and equipment Free Cash Flow Reconciliation | Metric ($ thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--------------------- | :-------------------- | :-------------------- | :------- | | Net Cash Provided by Operating Activities | 2,973 | 26,989 | -89.0% | | Less: Purchases of Property and Equipment | (19,914) | (2,894) | 588.1% | | **Free Cash Flow** | **(16,941)** | **24,095** | **-170.3%** | [Adjusted Net Income and EPS Reconciliation](index=8&type=section&id=Adjusted%20Net%20Income%20and%20EPS%20Reconciliation) In Q1 2025, DXP's Adjusted Net Income and Adjusted Diluted EPS were higher than GAAP reported net income and diluted EPS, primarily due to adjustments for non-recurring items and tax impacts Reconciliation of Adjusted Net Income and Adjusted Diluted EPS | Metric ($ thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--------------------------------- | :-------------------- | :-------------------- | :------- | | Net Income | 20,589 | 11,332 | 81.7% | | Other Non-Recurring Items | 235 | 842 | -72.1% | | Tax Adjustment | (57) | (256) | -77.8% | | **Adjusted Net Income** | **20,767** | **11,918** | **74.2%** | | Diluted Weighted Average Common Shares | 16,538 | 16,968 | -2.5% | | Diluted Earnings Per Share | $1.25 | $0.67 | 86.6% | | **Adjusted Diluted Earnings Per Share** | **$1.26** | **$0.70** | **80.0%** | [Additional Information](index=3&type=section&id=Additional%20Information) This section includes important forward-looking statements, outlining potential risks and uncertainties that could impact DXP's future financial results and operational strategies [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements protected by the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, concerning expectations for future performance, cash flow, liquidity, and growth, but these are subject to significant risks and uncertainties that could cause actual results to differ materially - Certain information in this press release contains forward-looking statements protected by the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995[12](index=12&type=chunk) - Forward-looking statements involve the company's expectations regarding future profitability, cash flow, liquidity, and growth, as well as descriptions of anticipated changes in Form 10-Q filings, consolidated balance sheets, and operating results[12](index=12&type=chunk) - These forward-looking statements involve significant risks and uncertainties that could cause actual future results to differ materially from expectations, including the effectiveness of management strategies, economic and business conditions, regulatory changes, acquisition integration capabilities, material and labor availability, and cyberattacks[12](index=12&type=chunk)

Financial Data and Key Metrics Changes - The first quarter adjusted EBITDA was $52.5 million, with adjusted diluted earnings per share of $1.26, supported by a year-over-year sales growth of 15.5% and sequential sales growth of 1.2% [6][18] - Total sales for Q1 increased to $476.6 million, with average daily sales rising from $6.9 million in January to $8.1 million in March [11][19] - Gross margins improved to 31.5%, reflecting a year-over-year increase of 151 basis points [24] Business Line Data and Key Metrics Changes - Innovative Pumping Solutions (IPS) saw a sales growth of 38.5% year over year, while Service Centers grew by 13.4% and Supply Chain Services by 2.1% [11][19] - IPS backlog continued to grow, with energy-related backlog increasing by 5.5% over Q4 [22] - Service Centers achieved a new sales watermark of $327 million, with notable growth in regions like Alaska and Texas Gulf Coast [20][18] Market Data and Key Metrics Changes - The ISM and PMI manufacturing index indicated a slight contraction, moving from 50.9 in January to 49 in March, with expectations that price increases will offset this contraction [9] - Oil and gas, representing 23% of the business, showed consistent demand, with anticipated growth driven by large projects [10] Company Strategy and Development Direction - The company remains focused on organic and inorganic growth, with a commitment to customer-driven expertise and operational improvements [5][7] - DXP is actively pursuing acquisitions to diversify its market presence, having closed one acquisition in Q1 and planning more [8][32] - The company aims to maintain a balance between strategic investments and preserving liquidity amid market uncertainties [15][31] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future demand despite tariff uncertainties, noting that no significant demand effects have been observed yet [16][44] - The company is well-positioned to navigate market volatility and is focused on improving efficiencies while making strategic investments [15][17] Other Important Information - The company reported a working capital increase to $325.3 million, reflecting a rise in receivables [27] - Cash flow from operations was $3 million, impacted by growth in accounts receivable and tax payments [29] Q&A Session Summary Question: Can you share daily sales trends by month for Q1 and Q2? - Daily sales trends showed an increase from $6.8 million in January to $8.1 million in March, with April at $7.8 million [38][39] Question: Will there be any significant margin differences between Q1 and Q2? - There are no substantive factors expected to cause a significant margin difference between Q1 and Q2 [40][41] Question: Are there signs of slowing down due to tariffs and macro uncertainty? - Management noted no significant effect on demand yet, although there may be some stalling due to uncertainty around tariffs [42][44]

DXP Enterprises (DXPE) Q1 2025 Earnings Call May 08, 2025 11:30 AM ET Speaker0 Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the DXP Enterprises First Quarter twenty twenty five Earnings Release. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. I would now like to turn the conference over ...

FORWARD LOOKING STATEMENTS Presented by: David Little Chairman, President & CEO Kent Yee Senior Vice President & CFO NASDAQ: DXPE Results for Q1 Fiscal 2025 Earnings Announcement: May 8, 2025 (Quarter Ending March 31, 2025 ) 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 ...

Core Insights - The article highlights Steven Cress's role as VP of Quantitative Strategy and Market Data at Seeking Alpha, emphasizing his contributions to the platform's quantitative stock rating system and analytical tools [1][2] - Cress is dedicated to removing emotional biases from investment decisions through a data-driven approach, utilizing sophisticated algorithms to simplify investment research [2][3] - With over 30 years of experience in equity research and quantitative strategies, Cress is well-equipped to address various investment topics [4] Company Overview - Seeking Alpha has integrated Cress's quantitative analysis and market data capabilities, enhancing its investment research offerings [3] - The platform features a systematic stock recommendation tool called Alpha Picks, aimed at helping long-term investors build superior portfolios [1][2] Professional Background - Prior to joining Seeking Alpha, Cress founded CressCap Investment Research, which was acquired in 2018, and also established the quant hedge fund Cress Capital Management [3] - Cress has extensive experience in proprietary trading and international business development, having worked at Morgan Stanley and Northern Trust [3][4]

Core Viewpoint - Healthy cash flow is essential for a company's existence, development, and success, providing the strength and flexibility needed for investment decisions and growth [1][2][3] Cash Flow Importance - Even profitable companies can fail if their cash flow is irregular, highlighting the importance of cash flow in assessing a company's resiliency [2][4] - Positive cash flow indicates an increase in liquid assets, enabling a company to meet obligations, reinvest, and return wealth to shareholders, while negative cash flow reduces liquidity and flexibility [4][5] Growth and Management Efficiency - A company must not only have positive cash flow but also increasing cash flow to indicate management's efficiency and reduced dependency on external financing [5][6] Screening Parameters for Investment - Stocks were screened for those with cash flow in the latest quarter at least equal to the 5-year average cash flow per share, indicating a positive trend [6] - Additional criteria included Zacks Rank 1, average broker rating of 1, current price greater than or equal to $5, and a VGM Score of B or better [7] Qualified Stocks - Griffon Corporation (GFF) operates through subsidiaries providing consumer and professional products, with a revised fiscal 2025 earnings estimate [8] - Nomad Foods (NOMD) focuses on frozen foods in Europe, with a 4.0% improvement in the earnings estimate for 2025 [9] - DXP Enterprises (DXPE) offers innovative pumping solutions, with a 22.5% upward revision in current-year earnings [10] - Limbach Holdings (LMB) provides building systems, with a 9.9% increase in the 2025 earnings estimate [10]