DXP Enterprises Inc. (DXPE, Financial) filed Quarterly Report for the period ended 2010-06-30.
Dxp Enterprises Inc. has a market cap of $284.6 million; its shares were traded at around $20.72 with a P/E ratio of 21.8 and P/S ratio of 0.5. Dxp Enterprises Inc. had an annual average earning growth of 15.7% over the past 10 years.DXPE is in the portfolios of Jim Simons of Renaissance Technologies LLC.
OPERATING INCOME. Operating income for the three months ended June 30, 2010 increased 78.3% compared to the same period in 2009. Operating income for the MRO segment increased 32.2% as a result of the 19.8% increase in sales combined with the effect of cost reduction measures implemented during 2009. Operating income for the SCS segment decreased 2.3%, primarily as a result of the 5.7% decline in sales for this segment. Operating income for the IPS segment increased 58.5% as a result of the 41.1% increase in sales.
SALES. Sales for the six months ended June 30, 2010 increased $12.3 million, or 4.1%, to approximately $314.3 million from $302.0 million for the same period in 2009. Sales by Quadna, acquired April 1, 2010, accounted for $13.4 million of 2010 sales. Excluding Quadna sales, sales for the six months ended June 30, 2010 decreased 0.4%. Sales for the MRO segment increased $17.5 million, or 8.6%. Excluding Quadna MRO sales of $7.1 million, MRO sales for the six months ended June 30, 2010 increased 5.1% from the same period for 2009. This sales increase is primarily due to improvement in the industrial portion of the U.S. economy. Sales for the SCS segment decreased by $6.4 million, or 9.2%, for the current six months when compared to the same period in 2009. The sales decrease resulted from sales to customers in 2009 which subsequently terminated supply agreements, exceeding sales to
OPERATING INCOME. Operating income for the first six months of 2010 increased 34.4% compared to the same period in 2009. Operating income for the MRO segment decreased 1.9% as a result of lower gross profit as a percentage of sales due to competitive pressures. Operating income for the SCS segment decreased 4.0%, primarily as a result of the 9.2% decline in sales for this segment. Operating income for the IPS segment increased 12.6% as a result of the 3.9% increase in sales for this segment.
On August 28, 2008, DXP entered into the Facility. The Facility was amended on March 15, 2010. The March 15, 2010 amendment to the Facility significantly increased the interest rates and commitment fees applicable at various leverage ratios from levels in effect before March 15, 2010. The Facility consists of a $50 million term loan and a revolving credit facility that provides a $150 million line of credit to the Company. The term loan requires principal payments of $2.5 million per quarter beginning on December 31, 2008. The Facility matures on August 11, 2013. The Facility contains financial covenants defining various financial measures and levels of these measures with which the Company must comply. Covenant compliance is assessed as of each quarter end and certain month ends for the asset test. 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 the net book value 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 borrowing under the revolving credit portion of the Facility and letters of credit outstanding, subject to the asset test described above.
On June 30, 2010, the LIBOR-based rate on the revolving credit portion of the Facility was LIBOR plus 3.5%, the prime-based rate on the revolving credit portion of the Facility was the prime rate plus 2.5%, the commitment fee was 0.50%, the LIBOR-based rate for the term loan was LIBOR plus 3.0% and the prime-based rate for the term loan was the prime rate plus 4.00%. At June 30, 2010, $102.5 million was borrowed under the Facility at a weighted average interest rate of approximately 4.0% under the LIBOR options. The revolving credit portion of the Facility provides the option of interest at LIBOR plus a margin ranging from 2.25% to 4.00% or at the prime rate plus a margin of 1.25% to 3.00%. Commitment fees of 0.25% to 0.625% per annum are payable on the portion of the Facility capacity not in use for borrowings or letters of credit at any given time. The term loan portion of the Facility provides the option of interest at LIBOR plus a margin ranging from 2.75% to 4.50% or at the prime rate plus a margin of 1.75% to 3.50%. 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 June 30, 2010, we had $50.5 million available for borrowing and letters of credit under the Facility.
Read the The complete Report
Dxp Enterprises Inc. has a market cap of $284.6 million; its shares were traded at around $20.72 with a P/E ratio of 21.8 and P/S ratio of 0.5. Dxp Enterprises Inc. had an annual average earning growth of 15.7% over the past 10 years.DXPE is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
SALES. Sales for the quarter ended June 30, 2010 increased $22.9 million, or 15.9%, to approximately $167.3 million from $144.4 million for the same period in 2009. Sales by Quadna, acquired April 1, 2010, accounted for $13.4 million of 2010 sales. Excluding Quadna sales, sales for the three months ended June 30, 2010 increased 6.6%. Sales for the MRO segment increased $19.4 million, or 19.8%. Excluding Quadna MRO sales of $7.1 million, MRO sales for the second quarter of 2010 increased 12.5% from the second quarter of 2009. This sales increase is primarily due to improvement in the industrial portion of the U.S. economy. Sales for the SCS segment decreased by $1.9 million, or 5.7%, for the current three months when compared to the same period in 2009. The sales decrease resulted from sales to customers in 2009 which subsequently terminated supply agreements, exceeding sales to customers which had been added since the second quarter of 2009. Sales for the IPS segment increased by $5.5 million, or 41.1%, for the current three months when compared to the same period in 2009. Excluding Quadna IPS sales of $6.3 million for the second quarter of 2010, IPS sales decreased 6.4% from the second quarter of 2009. The sales decrease resulted from the decline in the economy and the associated decline in capital spending by our customers.OPERATING INCOME. Operating income for the three months ended June 30, 2010 increased 78.3% compared to the same period in 2009. Operating income for the MRO segment increased 32.2% as a result of the 19.8% increase in sales combined with the effect of cost reduction measures implemented during 2009. Operating income for the SCS segment decreased 2.3%, primarily as a result of the 5.7% decline in sales for this segment. Operating income for the IPS segment increased 58.5% as a result of the 41.1% increase in sales.
SALES. Sales for the six months ended June 30, 2010 increased $12.3 million, or 4.1%, to approximately $314.3 million from $302.0 million for the same period in 2009. Sales by Quadna, acquired April 1, 2010, accounted for $13.4 million of 2010 sales. Excluding Quadna sales, sales for the six months ended June 30, 2010 decreased 0.4%. Sales for the MRO segment increased $17.5 million, or 8.6%. Excluding Quadna MRO sales of $7.1 million, MRO sales for the six months ended June 30, 2010 increased 5.1% from the same period for 2009. This sales increase is primarily due to improvement in the industrial portion of the U.S. economy. Sales for the SCS segment decreased by $6.4 million, or 9.2%, for the current six months when compared to the same period in 2009. The sales decrease resulted from sales to customers in 2009 which subsequently terminated supply agreements, exceeding sales to
OPERATING INCOME. Operating income for the first six months of 2010 increased 34.4% compared to the same period in 2009. Operating income for the MRO segment decreased 1.9% as a result of lower gross profit as a percentage of sales due to competitive pressures. Operating income for the SCS segment decreased 4.0%, primarily as a result of the 9.2% decline in sales for this segment. Operating income for the IPS segment increased 12.6% as a result of the 3.9% increase in sales for this segment.
On August 28, 2008, DXP entered into the Facility. The Facility was amended on March 15, 2010. The March 15, 2010 amendment to the Facility significantly increased the interest rates and commitment fees applicable at various leverage ratios from levels in effect before March 15, 2010. The Facility consists of a $50 million term loan and a revolving credit facility that provides a $150 million line of credit to the Company. The term loan requires principal payments of $2.5 million per quarter beginning on December 31, 2008. The Facility matures on August 11, 2013. The Facility contains financial covenants defining various financial measures and levels of these measures with which the Company must comply. Covenant compliance is assessed as of each quarter end and certain month ends for the asset test. 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 the net book value 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 borrowing under the revolving credit portion of the Facility and letters of credit outstanding, subject to the asset test described above.
On June 30, 2010, the LIBOR-based rate on the revolving credit portion of the Facility was LIBOR plus 3.5%, the prime-based rate on the revolving credit portion of the Facility was the prime rate plus 2.5%, the commitment fee was 0.50%, the LIBOR-based rate for the term loan was LIBOR plus 3.0% and the prime-based rate for the term loan was the prime rate plus 4.00%. At June 30, 2010, $102.5 million was borrowed under the Facility at a weighted average interest rate of approximately 4.0% under the LIBOR options. The revolving credit portion of the Facility provides the option of interest at LIBOR plus a margin ranging from 2.25% to 4.00% or at the prime rate plus a margin of 1.25% to 3.00%. Commitment fees of 0.25% to 0.625% per annum are payable on the portion of the Facility capacity not in use for borrowings or letters of credit at any given time. The term loan portion of the Facility provides the option of interest at LIBOR plus a margin ranging from 2.75% to 4.50% or at the prime rate plus a margin of 1.75% to 3.50%. 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 June 30, 2010, we had $50.5 million available for borrowing and letters of credit under the Facility.
Read the The complete Report
