Houston-based DXP Enterprises — No. 19 on Industrial Distribution's 2017 Big 50 List — reported its 2018 first quarter financial results on Tuesday, led by continued gains in year-over-year (YoY) and sequential sales.
DXP posted Q1 total sales of $285.9 million, up 19.9 percent year-over-year and up 7.6 sequentially from Q4 2017. It marked five straight quarters of sequential sales growth for the company, with Q1's sequential growth outpacing Q4's 5.4 percent. DXP had Q1 organic sales growth of 15.4 percent YoY, while acquisitions added $10.6 million in sales.
Q1 EBIDTA of $17.9 million improved $2.4 million YoY and $2.1 million sequentially. Meanwhile, Q1's total profit of $4.5 million improved from $3.0 million a year earlier and compared with $6.7 million in Q4 2017. Operating profit of $11.1 million was up from $8.2 million a year earlier, while gross profit of $76.4 million grew nearly $12 million YoY.
“During the first quarter of 2018 we experienced broad-based demand improvement across our key end markets and regions," DXP chairman and CEO David Little said. "DXP’s positive results demonstrate how we have strengthened our business organically and through acquisitions."
By business segment in Q1:
- Service Centers sales of $175.4 million increased 17.9 percent YoY and increased 5.0 percent sequentially, while operating profit of $15.8 million increased 18.7 percent and operating margin was 9.0 percent. Organic sales increased 10.8 percent YoY.
- Innovative Pumping Solutions sales of $67.6 million jumped 37.9 percent YoY and soared 72.4 percent sequentially, while operating profit of $6.4 million increased 81.8 percent and operating margin was 9.4 percent
- Supply Chain Services sales of $42.9 million increased 5.3 percent YoY and increased 9.4 percent sequentially, while operating profit of $4.1 million was flat and operating margin was 9.4 percent
Early in Q1 on Jan. 1 DXP closed the acquisition of Auburn, WA-based tool distributor Application Specialists Inc. for an undisclosed amount and announced the deal two days later.