DXP Enterprises Inc. (DXPE, Financial) filed Quarterly Report for the period ended 2010-09-30.
Dxp Enterprises Inc. has a market cap of $289.21 million; its shares were traded at around $21.02 with a P/E ratio of 18.77 and P/S ratio of 0.5. Dxp Enterprises Inc. had an annual average earning growth of 15.7% over the past 10 years.
OPERATING INCOME. Operating income for the three months ended September 30, 2010 increased 80.3% compared to the same period in 2009. Operating income for the MRO segment increased 54.1% as a result of the 23.2% increase in sales combined with the effect of cost reduction measures implemented during 2009. Operating income for the SCS segment increased 10.3%, primarily as a result of the reduced costs for this segment. Operating income for the IPS segment increased 17.1% as a result of the 59.8% increase in sales.
SALES. Sales for the nine months ended September 30, 2010 increased $41.1 million, or 9.2%, to approximately $486.5 million from $445.4 million for the same period in 2009. Sales by Quadna, acquired April 1, 2010, accounted for $27.9 million of 2010 sales. Excluding Quadna sales, sales for the nine months ended September 30, 2010 increased 3.0%. Sales for the MRO segment increased $39.7 million, or 13.3%. Excluding Quadna MRO sales of $14.8 million, MRO sales for the nine months ended September 30, 2010 increased 8.3% 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 $8.1 million, or 7.9%, for the current nine 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 third quarter of 2009.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE. Selling, general and administrative expense for the nine months ended September 30, 2010 increased by approximately $1.9 million, or 1.7%, when compared to the same period in 2009. Selling, general and administrative expense for Quadna for the six months ended September 30, 2010 was approximately $5.3 million, including $0.7 million of acquisition expenses. As a percentage of revenue, the 2010 expense decreased to 23.2%, from 24.9% for the nine months ended September 30, 2009. This decrease primarily resulted from sales increasing by 9.2% and expenses increasing only 1.7%.
OPERATING INCOME. Operating income for the first nine months of 2010 increased 49.2% compared to the same period in 2009. Operating income for the MRO segment increased 13.1% as a result of the 13.3% increase in sales. Operating income for the SCS segment decreased 0.4%, primarily as a result of the 7.9% decline in sales for this segment. Operating income for the IPS segment increased 14.0% as a result of the 21.9% increase in sales for this segment.
On September 30, 2010, the LIBOR-based rate on the revolving credit portion of the Facility was LIBOR plus 2.75%, the prime-based rate on the revolving credit portion of the Facility was the prime rate plus 1.75%, the commitment fee was 0.375%, the LIBOR-based rate for the term loan was LIBOR plus 3.25% and the prime-based rate for the term loan was the prime rate plus 2.25%. At September 30, 2010, $106.7 million was borrowed under the Facility at a weighted average interest rate of approximately 3.9% 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 September 30, 2010, we had $51.5 million available for borrowing and letters of credit under the Facility.
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Dxp Enterprises Inc. has a market cap of $289.21 million; its shares were traded at around $21.02 with a P/E ratio of 18.77 and P/S ratio of 0.5. Dxp Enterprises Inc. had an annual average earning growth of 15.7% over the past 10 years.
Highlight of Business Operations:
SALES. Sales for the quarter ended September 30, 2010 increased $28.8 million, or 20.1%, to approximately $172.2 million from $143.4 million for the same period in 2009. Sales by Quadna, acquired April 1, 2010, accounted for $14.5 million of third quarter 2010 sales. Excluding Quadna sales, sales for the three months ended September 30, 2010 increased 10.0%. Sales for the MRO segment increased $22.1 million, or 23.2%. Excluding Quadna MRO sales of $7.7 million, MRO sales for the third quarter of 2010 increased 15.1% from the third 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 $1.8 million, or 5.2%, 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 third quarter of 2009. Sales for the IPS segment increased by $8.4 million, or 59.8%, for the current three months when compared to the same period in 2009. Excluding Quadna IPS sales of $6.8 million for the third quarter of 2010, IPS sales increased 11.5% from the third quarter of 2009. The sales increase resulted from the improvement in the economy and the associated increase in capital spending by our customers.OPERATING INCOME. Operating income for the three months ended September 30, 2010 increased 80.3% compared to the same period in 2009. Operating income for the MRO segment increased 54.1% as a result of the 23.2% increase in sales combined with the effect of cost reduction measures implemented during 2009. Operating income for the SCS segment increased 10.3%, primarily as a result of the reduced costs for this segment. Operating income for the IPS segment increased 17.1% as a result of the 59.8% increase in sales.
SALES. Sales for the nine months ended September 30, 2010 increased $41.1 million, or 9.2%, to approximately $486.5 million from $445.4 million for the same period in 2009. Sales by Quadna, acquired April 1, 2010, accounted for $27.9 million of 2010 sales. Excluding Quadna sales, sales for the nine months ended September 30, 2010 increased 3.0%. Sales for the MRO segment increased $39.7 million, or 13.3%. Excluding Quadna MRO sales of $14.8 million, MRO sales for the nine months ended September 30, 2010 increased 8.3% 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 $8.1 million, or 7.9%, for the current nine 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 third quarter of 2009.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE. Selling, general and administrative expense for the nine months ended September 30, 2010 increased by approximately $1.9 million, or 1.7%, when compared to the same period in 2009. Selling, general and administrative expense for Quadna for the six months ended September 30, 2010 was approximately $5.3 million, including $0.7 million of acquisition expenses. As a percentage of revenue, the 2010 expense decreased to 23.2%, from 24.9% for the nine months ended September 30, 2009. This decrease primarily resulted from sales increasing by 9.2% and expenses increasing only 1.7%.
OPERATING INCOME. Operating income for the first nine months of 2010 increased 49.2% compared to the same period in 2009. Operating income for the MRO segment increased 13.1% as a result of the 13.3% increase in sales. Operating income for the SCS segment decreased 0.4%, primarily as a result of the 7.9% decline in sales for this segment. Operating income for the IPS segment increased 14.0% as a result of the 21.9% increase in sales for this segment.
On September 30, 2010, the LIBOR-based rate on the revolving credit portion of the Facility was LIBOR plus 2.75%, the prime-based rate on the revolving credit portion of the Facility was the prime rate plus 1.75%, the commitment fee was 0.375%, the LIBOR-based rate for the term loan was LIBOR plus 3.25% and the prime-based rate for the term loan was the prime rate plus 2.25%. At September 30, 2010, $106.7 million was borrowed under the Facility at a weighted average interest rate of approximately 3.9% 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 September 30, 2010, we had $51.5 million available for borrowing and letters of credit under the Facility.
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