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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from __________ to __________ Commission file number 0-21513 DXP Enterprises, Inc. (Exact name of registrant as specified in its charter) (State or other jur ...

Financial Data and Key Metrics - Q2 2023 total sales increased 16.4% YoY to a record $428 million, with average daily sales of $6.8 million [27][38] - Adjusted EBITDA for Q2 2023 was a record $45.3 million, with margins at 10.6%, marking the second consecutive quarter of 10%+ EBITDA margins [9][17][33] - Net income for Q2 2023 was $19 million, with diluted EPS of $1.06, up from $0.74 in Q2 2022 [9] - Gross profit margins improved to 30.8%, a 245 basis point increase YoY, driven by improvements across all business segments [40][33] - The company returned $25.1 million to shareholders through share repurchases in Q2 2023 [9][35] Business Segment Performance - Service Centers grew sales by 18.85% YoY, driven by strong performance in regions like the Lyo River Valley, North Rockies, Texas Gulf Coast, and Southeast [6][8] - Supply Chain Services grew sales by 12.29% YoY, supported by a large diversified chemical customer added in Q2 2022 [6][39] - Innovative Pumping Solutions (IPS) grew sales by 9.78% YoY, with a notable increase in energy-related backlog [6][52] - Service Centers contributed 69.7% of total sales, followed by Supply Chain Services at 15.5% and IPS at 14.8% [40] Market Performance - Key end markets driving growth include energy, power, chemicals, aerospace, food and beverage, and water and wastewater [8][15][32] - The company is seeing early signs of an upcycle in the energy market, supported by energy transition trends [28][52] - Water and wastewater markets are performing well, with acquisitions like Florida Valve and Riordan Materials enhancing the platform [44][87] Strategic Direction and Industry Competition - The company plans to close 2-4 acquisitions in H2 2023, focusing on water and wastewater, rotating equipment, and other strategic areas [3][83] - The acquisition strategy aims to diversify the business while maintaining a conservative balance sheet with a target leverage ratio of 3.5x or less [3][44] - The company is investing in growth opportunities in energy, biofuels, hydrogen, carbon capture, and other emerging markets [32][81] Management Commentary on Operating Environment and Future Outlook - Management expects continued strong demand trends and operational improvements in H2 2023, supported by a robust acquisition pipeline and a well-balanced business [18][36] - The company remains focused on maintaining 10%+ EBITDA margins and driving long-term shareholder value through acquisitions and share repurchases [34][36] - Inflationary pressures are being managed effectively, with the company passing on supplier cost increases and maintaining strong gross margins [66][33] Other Important Information - The company closed two acquisitions in Q2 2023: Florida Valve and Riordan Materials, both enhancing the water and wastewater platform [44] - Total debt outstanding as of June 30, 2023, was $425.9 million, with $132.3 million of liquidity available [43] - CapEx for Q2 2023 was $1.8 million, reflecting investments in facilities and equipment [42] Q&A Session Summary Question: Average daily sales trends and M&A impact - Average daily sales were $6.8 million reported, $6.7 million excluding M&A impact, with monthly trends showing growth from $6.65 million in April to $6.9 million in June [50][62] - The company expects to maintain sequential sales growth in Q3, supported by growth in aerospace, energy, water and wastewater, and food and beverage markets [74][75] Question: Gross margin performance and price-cost dynamics - Gross margins improved to 30.8%, driven by effective management of supplier cost increases and labor costs, with no significant one-time factors impacting margins [66][33] - The company expects gross margins to remain in the 29.5%-30.5% range, supported by a favorable mix of high-margin businesses like water and wastewater [66][78] Question: Energy market dynamics and backlog trends - The company is seeing strong organic growth in IPS, with energy-related backlog increasing 6.5% sequentially in Q2 2023 [52][53] - The energy market is supported by trends in energy transition, with opportunities in hydrogen, biofuels, and carbon capture [81][82] Question: M&A pipeline and water/wastewater strategy - The company aims to close 2-4 acquisitions in H2 2023, focusing on water and wastewater, rotating equipment, and other strategic areas [83][97] - The water and wastewater platform is expected to scale to $350-$500 million, with current sales slightly above $100 million [100][87] - Acquisitions in this space are accretive to margins and provide growth opportunities in repair, automation, and process equipment [87][103]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from __________ to __________ Commission file number 0-21513 DXP Enterprises, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdic ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) [ ☒ ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended March 31, 2023 or [ ☐ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to Commission file number 0-21513 DXP Enterprises, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incor ...

DXP Enterprises, Inc. (NASDAQ:DXPE) Q1 2023 Earnings Conference Call May 10, 2023 11:00 AM ET Company Participants David Little - Chairman and Chief Executive Officer Kent Yee - Chief Financial Officer Conference Call Participants Tommy Moll - Stephens Operator Ladies and gentlemen, welcome to the DXP Enterprise First Quarter Earnings Results Conference Call. My name is Glenn and I will be the operator for today’s call. [Operator Instructions] I will now hand you over to your host, Kent Yee, CFO of DXP Ente ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to Commission file number 0-21513 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) 5301 Hollister, Houston, ...

DXP Enterprises, Inc. (NASDAQ:DXPE) Q3 2022 Earnings Conference Call November 9, 2022 11:30 AM ET Company Participants Kent Yee - CFO David Little - Chairman and CEO Conference Call Participants Tommy Moll - Stephens Operator Good morning. My name is Chris, and I'll be your conference operator today. At this time, I'd like to welcome everyone to DXP Enterprises' 2022 Third Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there ...