DXP Enterprises, Inc. announced financial results for the first quarter ended March 31, 2019. The following are results for the three months ended March 31, 2019, compared to the three months ended March 31, 2018. A reconciliation of the non-GAAP financial measures can be found in the back of this press release.
First Quarter 2019 financial highlights:
- Sales increased 8.8 percent to $311.2 million, compared to $285.9 million for the first quarter of 2018.
- Earnings per diluted share for the first quarter was $0.40 based upon 18.4 million diluted shares, compared to $0.24 per share in the first quarter of 2018.
- Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter was $21.1 million compared to $17.9 million for the first quarter of 2018, an increase of 17.7 percent. EBITDA as a percentage of sales was 6.8 percent and 6.3 percent, respectively, comparing the first quarter of 2019 versus 2018.
David R. Little, Chairman and CEO commented, “We are off to a good start again in 2019. Our first quarter performance shows the team maintained momentum and delivered on expected results. The oil and gas and industrial economy continues to remain firm with all key indicators remaining positive. During the first quarter, we achieved 8.8 percent organic sales growth and believe we continue to expand our leading market positions across our business segments. Our strong earnings per share growth speaks to our team's execution and focus on continuous improvement. DXP’s first quarter 2019 sales were $311.2 million while EBITDA increased 17.7 percent year-over-year. In terms of our business segments for the first quarter of 2019, sales were $186.2 million for Service Centers, $74.7 million for Innovative Pumping Solutions and $50.3 million for Supply Chain Services. Business segment operating income increased 13.7 percent year-over-year. We delivered on our financial results as our markets and customers continue to perform. Entering the second quarter, we look forward to continued strength in our end markets while we drive operational excellence.”
Kent Yee, CFO, remarked, “The first quarter of 2019 financial results were great to see. Our year-over-year financial results continue to reflect the growth we experienced in fiscal 2018. Solid sales growth, accompanied by in-line diluted earnings per share. Our current run rate sales volumes should allow us to leverage operating expenses, deliver on profitability and will lead to strong cash flow generation. We remain confident in the momentum continuing in our business segments and a strong 2019. Total debt outstanding as of March 31, 2019 was $247.9 million. DXP’s secured leverage ratio or net debt to EBITDA ratio was 2.2:1.0.”