Houston-based DXP Enterprises — No. 19 on Industrial Distribution's 2017 Big 50 List — reported its 2017 fourth quarter and full year financial results on Tuesday, led by continued gains in year-over-year (YoY) and sequential sales.
DXP posted Q4 total sales of $265.6 million, up 19.5 percent YoY and up 5.4 percent from Q3. It marked four straight quarters of sequential sales growth for the company. Q4 EBITDA of $15.8 million increased 17.1 percent YoY, while total profit of $6.7 million decreased 6.7 percent. Q4 gross profit of $71.2 million jumped 17.5 percent, while operating profit of $8.5 million increased 12.4 percent.
For the full-year, DXP's 2017 total sales of $1.01 billion increased 7.2 percent over 2016, while total profit of $16.5 million more than doubled 2016's $7.7 million. EBITDA in 2017 was $61.7 million, up from $55.2 million a year earlier. Gross profit of $271.6 million increased 2.6 percent YoY, while operating profit of $33.5 million dwarfed 2016's $19.3 million.
"Improved market conditions together with DXP’s ability to execute on key organic initiatives are delivering widespread improvements across DXP," company chairman and CEO David Little said. "I am encouraged with the current state of our company and I have never been more confident in our strategy and ability to create shareholder and stakeholder value. We are prioritizing investments and focusing on DXP having a smart recovery through this next up cycle. We are also emphasizing continuous improvement across DXP to generate margin expansion while growing the top-line."
By business segment:
- Service Centers Q4 sales of $167 million increased19.5 percent YoY and increased 3.8 percent from Q3, with a 9.6 percent operating profit margin. Full-year sales of $641.3 million increased 3.3 percent from 2016, with a 9.9 percent profit margin.
- Innovative Pumping Solutions Q4 sales of $59.5 million jumped 30.7 percent YoY and increased 16.6 percent from Q3, with a 7.3 percent profit margin. Full-year sales of $204 million increased 9.0 percent from 2016, with a 5.6 percent profit margin.
- Supply Chain Services Q4 sales of $39.2 million increased 5.6 percent YoY and declined 2.1 percent from Q3, with a 9.4 percent profit margin. Full-year sales of $161.5 million increased 4.9 percent from 2016, with a 9.6 percent profit margin.