Pumping solutions and MROP products distributor and supply chain provider DXP Enterprises reported its 2021 third quarter results on Dec. 8, showing a significant acceleration in year-over-year sales.
The Houston-based company posted total Q3 sales of $289 million, up 31.5 percent year-over-year and far outpacing Q2's growth of 13.6 percent. Sequentially, Q3 sales narrowly outpaced Q2's $286 million by 1.3 percent.
During the July-September quarter, DXP acquired Charlotte, NC-based water management products distributor Premier Water, marking its second water management distributor bolted-on in a four-month span, following its May acquisition of Tampa, FL-based Carter & Verplanck.
The company said it has more active deals that it expects to close moving into fiscal 2022.
DXP's Q3 gross profit of $87 million jumped 41.8 percent year-over-year, while operating profit of $11 million was a complete reversal of a $41 million loss a year earlier and trailed Q2's $15 million.
The company's total Q3 net profit was $7 million, likewise reversing the $35 million loss from a year earlier and trailing Q2's $8 million.
"Total DXP sales increased sequentially and were essentially flat from a sales per business day standpoint compared to Q2 with continued improvement in gross margins," said David Little, DXP chairman and CEO. "Service Centers led the way with strong performance across all comparatives. Our improved momentum continued in the third quarter as our DXPeople worked together to manage through supply chain challenges and get in front of rising product costs as we rebound from COVID. With strong contributions from our acquisitions, we delivered another quarter of sales and gross margin improvement."
By DXP business segment in Q3:
- Service Centers revenue of $213 million jumped 28.9 percent year-over-year and topped Q2's $209 million. Operating profit of $29 million improved 34.3 percent.
- Innovative Pumping Solutions revenue of $36 million jumped 66.2 percent and were flat sequentially. Operating profit of $277,000 improved from a $2.9 million loss from a year earlier.
- Supply Chain Services revenue of $41 million increased 21.3 percent year-over-year and topped Q2's $39 million. Operatin profit of $3 million was essentially flat.