DXP Enterprises Inc. (DXPE) filed Quarterly Report for the period ended 2009-06-30.
DXP Enterprises Inc. is a leading supplier of maintenance repair and operating products equipment and services to industrial customers. The company offers its customers a single source of supply on an efficient and competitive basis by being a first-tier distributor which purchases its products directly from the manufacturer. The company also provides value-added services such as system design fabrication installation repair and maintenance for its customers. DXP Enterprises Inc. has a market cap of $136.28 million; its shares were traded at around $10.59 with a P/E ratio of 7.56 and P/S ratio of 0.18. DXP Enterprises Inc. had an annual average earning growth of 15.2% over the past 10 years.
Highlight of Business Operations:
SALES. Revenues for the three months ended June 30, 2009 decreased $43.4 million, or 23.1% to $144.4 million from $187.8 million for the same period in 2008. Sales for the MRO Segment decreased $43.2 million, or 23.1%, to approximately $143.7 million from $186.8 million for the same period in 2008. Sales by businesses acquired in 2008, on a same store sales basis, accounted for $12.0 million of 2009 sales for the three month period ended June 30, 2009. Excluding these sales by the acquired businesses, sales for the MRO segment decreased 29.5%. This sales decrease is primarily due to a broad-based decrease in sales of pumps, bearings, safety products and mill supplies resulting from economic crisis in the United States. Sales for the Electrical Contractor segment for the three months ended June 30, 2009 decreased by $0.3 million, or 27.7%, to $0.7 million from $1.0 million for the same period in 2008 resulting from the decline in the economy. Sales of commodity and specialty type electrical products decreased.
SELLING, GENERAL AND ADMINISTRATIVE. Selling, general and administrative expense for the three months ended June 30, 2009 decreased by approximately $4.1 million, to $36.3 million from $40.4 million for the same period in 2008. Selling, general and administrative expense associated with the two businesses acquired after March 31, 2008, on a same store basis, accounted for $3.8 million of the 2009 expense. On a same stores basis, selling, general and administrative expense decreased approximately $7.9 million. This decrease primarily
OPERATING INCOME. Operating income for the three months ended June 30, 2009 decreased 55.4% to $5.1 million from $11.5 million for the same period in 2008. Operating income for the MRO segment decreased 55.4%, to $5.0 million for the three months ended June 30, 2009, from $11.3 million for the same period in 2008 as a result of a $10.4 million decrease in gross profit, partially offset by a $4.1 million decrease in selling, general and administrative expense. Operating income for the Electrical Contractor segment for the three months ended June 30, 2009 decreased 57.7%, to $0.1 million from $0.2 million for the same period in 2008 primarily as a result of decreased gross profit due to decreased sales.
SALES. Revenues for the six months ended June 30, 2009 decreased $54.3 million, or 15.2%, to approximately $302.0 million from $356.3 million for the same period in 2008. Sales for the MRO Segment decreased $53.8 million, or 15.2%, to $300.6 million for the six months ended June 30, 2009, from $354.4 million for the same period in 2008. Sales by businesses acquired in 2008, on a same store sales basis, accounted for $26.2 million of 2009 sales. Excluding these sales by the acquired businesses, sales for the MRO segment decreased 22.6%. This sales decrease is primarily due to a broad-based decrease in sales of pumps, bearings, safety products and mill supplies in connection with a broad-based decline in the U. S. economy. Sales for the Electrical Contractor segment decreased by $0.5 million, or 26.0%,to $1.4 million for the six months ended June 30, 2009 from $1.9 million for the same period in 2008, resulting from the decline in the economy. Sales of commodity and specialty type electrical products declined.
SELLING, GENERAL AND ADMINISTRATIVE. Selling, general and administrative expense for the six months ended June 30, 2009 decreased by approximately $0.1 million to $75.6 million from $75.8 million for the same period in 2008. Selling, general and administrative expense associated with the three businesses acquired in 2008, on a same store basis, accounted for $8.2 million of the 2009 expense. On a same store basis, selling, general and administrative expense decreased approximately $8.3 million. This decrease primarily resulted from reduced salaries, incentive compensation, employee benefits and travel expenses compared to the same period in 2008. As a percentage of revenue, the 2009 expense increased by approximately 3.8%, to 25.1% for the six months ended June 30, 2009 from 21.3% for the same period in 2008. This increase is primarily the result of sales decreasing more than selling, general and administrative expenses decreased on a same store sales basis.
OPERATING INCOME. Operating income for the six months ended June 30, 2009 decreased 46.4%, to $11.8 million for the six months ended June 30, 2009, from $22.1 million for the same period in 2008. Operating income for the MRO segment decreased 46.3%, to $$11.7 million for the six months ended June 30, 2009 from $21.7 million for the same period in 2008 as a result of a $10.2 million decrease in gross profit, partially offset by a $0.1 million decrease in selling, general and administrative expense. Operating income for the Electrical Contractor
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