Houston, TX – DXP Enterprises, Inc. today announced net income of $13.1 million for the third quarter ended September 30, 2012, with diluted earnings per share of $0.86 compared to net income of $8.3 million and diluted earnings per share of $0.55 for the third quarter of 2011. Sales increased $82.1 million, or 39.5%, to approximately $289.9 million from $207.9 million for the same period in 2011. After excluding sales from acquisitions, sales increased 7.4% from 2011, on a same store sales basis.
Net income for the nine months ended September 30, 2012 was $36.9 million, with diluted earnings per share of $2.43 compared to net income of $22.2 million and diluted earnings per share of $1.47 for the first nine months of 2011. Sales for the nine months ended September 30, 2012 increased $215.5 million, or 36.6%, to approximately $804.1 million from $588.6 million for the same period in 2011. After excluding sales from acquisitions, sales for the first nine months of 2012 increased 13.2% from 2011 on a same store sales basis.
Net income for the third quarter sequentially increased 7.5% from $12.2 million to $13.1 from the second quarter 2012. Likewise, sales sequentially increased 10.7% from $261.9 million in the second quarter to $289.9 million in the third quarter.
David R. Little, Chairman and Chief Executive Officer remarked, “We are pleased to report a strong third quarter in sales and profitability. On a trailing twelve month basis, we exceeded our sales goal of $1 billion and third quarter EBITDA margins were 10.6%. Congratulations to DXPeople for achieving our financial goals earlier than expected. We also added three new SuperCenters in the third quarter. We believe that our internal and external growth strategies will take market share despite the uncertainty and softness in the market. We look forward to our new financial goals of $2 billion in sales by 2016 at 10% EBITDA margins and our moral goal of providing the opportunity for DXPeople and customers to be more successful."
Mac McConnell, Senior Vice President and CFO, added, “We are pleased with our third quarter financial performance. Our quarterly financial results reflect 7.4% organic growth with meaningful sales increase from acquisitions. Additionally, we continue to see improvement in EBITDA margins. While the financial tone of our business remains strong, we are monitoring our results against any changes in customer behavior. Our leverage ratio under our credit facility is a modest 2.1:1"
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout the United States, Canada and Sonora, Mexico. DXP provides innovative pumping solutions, supply chain services and maintenance, repair, operating and production (MROP) services that emphasize and utilize DXP’s vast product knowledge and technical expertise in rotating equipment, bearings, power transmission, industrial supplies and safety products and services. DXP's breadth of MROP products and service solutions allows DXP to be flexible and customer driven, creating competitive advantages for our customers. DXP’s business segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. For more information, go to www.dxpe.com.