Houston-based pumping solutions and MROP products distributor DXP Enterprises reported its 2019 fourth quarter and full-year financial results on Friday, showing that sales considerably decelerated in the company's last three months of last year, though annual sales managed moderate growth.
The company, which closed on the acquisition of Richmond, CA-based Turbo Machinery Repair on Jan. 31, posted Q4 sales of $295.5 million, down 5.0 percent year-over-year, while total profit of $2.2 million compared with $11.1 million a year earlier. Comparatively, Q3 sales of $327.2 million increased 6.2 percent year-over-year and Q2 sales increased 7.1 percent.
For the full year, DXP's total 2019 sales of $1.3 billion increased 4.2 percent over 2018, while profit of $35.9 million was essentially flat compared to $35.5 million a year earlier.
By DXP business segment in 2019:
- Service Centers' full-year revenue of $762.3 million increased 1.6 percent over 2018, with an 11.4 percent operating income margin. Q4 revenue of $182.4 million decreased 5.7 percent year-over-year, with a 10.7 percent operating income margin.
- Innovative Pumping Solutions’ full-year revenue of $303.7 million increased 4.1 percent over 2019, with a 9.5 percent operating income margin. Q4 revenue of $65.7 million decreased 10.1 percent year-over-year, with a flat or 0.0 percent operating income margin.
- Supply Chain Services’ full-year revenue of $201.3 million increased 15.4 percent over 2018, with a 7.2 percent operating margin. Q4 revenue of $47.4 million increased 6.4 percent year-over-year, with a 7.3 percent operating income margin.
"Overall performance was positive with more strength during the first half of the year versus the third and fourth quarter," commented DXP chief executive David Little in the company's earnings report. "Despite the changing market environment, we made a decision to invest in the business and position DXP to continue to take market share. We believe our financial performance during the second half of the year reflects our oil and gas customers reaching their budget limits towards the end of the third quarter and remaining disciplined on the capital spending side through the fourth quarter."