DXP Enterprises Inc. (DXPE, Financial) filed Amended Quarterly Report for the period ended 2010-02-02.
Dxp Enterprises Inc. has a market cap of $171.3 million; its shares were traded at around $13.24 with a P/E ratio of 12.3 and P/S ratio of 0.2. Dxp Enterprises Inc. had an annual average earning growth of 15.2% over the past 10 years.
GROSS PROFIT. Gross profit as a percentage of sales increased by approximately 1.9% for the first quarter of 2009, when compared to the same period in 2008. Gross profit as a percentage of sales for the MRO segment increased to 29.2% for the three months ended March 31, 2009, from 27.2% in the comparable period of 2008. This increase is primarily the result of increased gross profit as a percentage of sales on sales of fabricated pump packages, supply chain services and MRO products and services in 2009 as compared to 2008 combined with the effect of the three businesses acquired during 2008 having a higher gross profit percentage than the remainder of DXP. Gross profit as a percentage of sales for the Electrical Contractor segment decreased to 35.3% for the three months ended March 31, 2009 from 36.7% in the comparable period of 2008. This decrease resulted from sales of higher margin specialty-type electrical products decreasing more than sales of commodity products decreased.
SELLING, GENERAL AND ADMINISTRATIVE. Selling, general and administrative expense for the quarter ended March 31, 2009 increased by approximately $4.0 million when compared to the same period in 2008. The increase consists of selling, general and administrative expenses of businesses acquired in 2008. Selling, general and administrative expense associated with the three businesses acquired in 2008, on a same store basis, accounted for $4.4 million of the 2009 expense. As a percentage of revenue, the 2009 expense increased by approximately 4.0%, to 25.0%, from 21.0% for the quarter ended March 31, 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 first three months of 2009 decreased 36.7% compared to the same period in 2008. Operating income for the MRO segment decreased 36.4% as a result of increased selling, general and administrative expense for businesses acquired in 2008, partially offset by a minimal increase in gross profit. Operating income for the Electrical Contractor segment decreased 55.3% primarily as a result of decreased gross profit due to decreased sales.
The Company s borrowings under the revolving credit portion of the Facility and letters of credit outstanding under the Facility at each month-end must be less than an asset test measured as of the same month-end. The asset test is defined under the Facility as the sum of 85% of the Company s net accounts receivable, 60% of net inventory, and 50% of non real estate property and equipment. The Company s borrowing and letter of credit capacity under the revolving credit portion of the Facility at any given time is $150 million less borrowings under the revolving credit portion of the facility and letters of credit outstanding, subject to the asset test described above.
The revolving credit portion of the Facility provides the option of interest at LIBOR plus a margin ranging from 1.00% to 2.00% or prime plus a margin of 0.0% to 0.50%. On March 31, 2009, the LIBOR based rate on the revolving credit portion of the Facility was LIBOR plus 1.50%. On March 31, 2009 the prime based rate on the revolving credit portion of the Facility was prime plus 0.0%. Commitment fees of 0.15% to 0.30% per annum are payable on the portion of the Facility capacity not in use for borrowings or letters of credit at any given time. At March 31, 2009, the commitment fee was 0.25%. The term loan provides the option of interest at LIBOR plus a margin ranging from 2.00% to 2.50% or prime plus a margin of 0.50% to 1.00%. At March 31, 2009, the LIBOR based rate for the term loan was LIBOR plus 2.25%. At March 31, 2009, the prime based rate for the term loan was prime plus 0.75%. At March 31, 2009, $140.0 million was borrowed under the Facility at a weighted average interest rate of approximately 3.2% under the LIBOR options, including the effect of the interest rate swap, and nothing was borrowed under the prime options under the Facility. Borrowings under the Facility are secured by all of the Company s accounts receivable, inventory, general intangibles and non real estate property and equipment. At March 31, 2009, we were in compliance with all covenants. At March 31, 2009, we had $45.7 million available for borrowing under the most restrictive covenant of the Facility.
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Dxp Enterprises Inc. has a market cap of $171.3 million; its shares were traded at around $13.24 with a P/E ratio of 12.3 and P/S ratio of 0.2. 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 quarter ended March 31, 2009 decreased $10.9 million, or 6.5%, to approximately $157.6 million from $168.5 million for the same period in 2008. Sales for the MRO Segment decreased $10.7 million, or 6.4%. Sales by businesses acquired in 2008, on a same store sales basis, accounted for $14.2 million of 2009 sales. Excluding these sales by the acquired businesses, sales for the MRO segment decreased 14.9%. This sales decrease is primarily due to a broad-based decrease in sales of pumps, bearings, safety products and mill supplies. Sales for the Electrical Contractor segment decreased by $0.2 million, or 24.1%, for the current quarter when compared to the same period in 2008 resulting from the decline in the economy. The sales decrease resulted from decreased sales of commodity and specialty type electrical products.GROSS PROFIT. Gross profit as a percentage of sales increased by approximately 1.9% for the first quarter of 2009, when compared to the same period in 2008. Gross profit as a percentage of sales for the MRO segment increased to 29.2% for the three months ended March 31, 2009, from 27.2% in the comparable period of 2008. This increase is primarily the result of increased gross profit as a percentage of sales on sales of fabricated pump packages, supply chain services and MRO products and services in 2009 as compared to 2008 combined with the effect of the three businesses acquired during 2008 having a higher gross profit percentage than the remainder of DXP. Gross profit as a percentage of sales for the Electrical Contractor segment decreased to 35.3% for the three months ended March 31, 2009 from 36.7% in the comparable period of 2008. This decrease resulted from sales of higher margin specialty-type electrical products decreasing more than sales of commodity products decreased.
SELLING, GENERAL AND ADMINISTRATIVE. Selling, general and administrative expense for the quarter ended March 31, 2009 increased by approximately $4.0 million when compared to the same period in 2008. The increase consists of selling, general and administrative expenses of businesses acquired in 2008. Selling, general and administrative expense associated with the three businesses acquired in 2008, on a same store basis, accounted for $4.4 million of the 2009 expense. As a percentage of revenue, the 2009 expense increased by approximately 4.0%, to 25.0%, from 21.0% for the quarter ended March 31, 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 first three months of 2009 decreased 36.7% compared to the same period in 2008. Operating income for the MRO segment decreased 36.4% as a result of increased selling, general and administrative expense for businesses acquired in 2008, partially offset by a minimal increase in gross profit. Operating income for the Electrical Contractor segment decreased 55.3% primarily as a result of decreased gross profit due to decreased sales.
The Company s borrowings under the revolving credit portion of the Facility and letters of credit outstanding under the Facility at each month-end must be less than an asset test measured as of the same month-end. The asset test is defined under the Facility as the sum of 85% of the Company s net accounts receivable, 60% of net inventory, and 50% of non real estate property and equipment. The Company s borrowing and letter of credit capacity under the revolving credit portion of the Facility at any given time is $150 million less borrowings under the revolving credit portion of the facility and letters of credit outstanding, subject to the asset test described above.
The revolving credit portion of the Facility provides the option of interest at LIBOR plus a margin ranging from 1.00% to 2.00% or prime plus a margin of 0.0% to 0.50%. On March 31, 2009, the LIBOR based rate on the revolving credit portion of the Facility was LIBOR plus 1.50%. On March 31, 2009 the prime based rate on the revolving credit portion of the Facility was prime plus 0.0%. Commitment fees of 0.15% to 0.30% per annum are payable on the portion of the Facility capacity not in use for borrowings or letters of credit at any given time. At March 31, 2009, the commitment fee was 0.25%. The term loan provides the option of interest at LIBOR plus a margin ranging from 2.00% to 2.50% or prime plus a margin of 0.50% to 1.00%. At March 31, 2009, the LIBOR based rate for the term loan was LIBOR plus 2.25%. At March 31, 2009, the prime based rate for the term loan was prime plus 0.75%. At March 31, 2009, $140.0 million was borrowed under the Facility at a weighted average interest rate of approximately 3.2% under the LIBOR options, including the effect of the interest rate swap, and nothing was borrowed under the prime options under the Facility. Borrowings under the Facility are secured by all of the Company s accounts receivable, inventory, general intangibles and non real estate property and equipment. At March 31, 2009, we were in compliance with all covenants. At March 31, 2009, we had $45.7 million available for borrowing under the most restrictive covenant of the Facility.
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