HOUSTON — DXP Enterprises Inc. on Friday announced financial results for the fourth quarter and fiscal year ended Dec. 31, 2021.
For the fourth quarter, sales grew 26% to $293.1 million, compared to $232.7 million for the fourth quarter of 2020, while earnings per diluted share for the fourth quarter was $0.05 based upon 19.6 million diluted shares, compared to a loss of $0.18 per share in the final quarter of 2020 based on 17.8 million diluted shares. Excluding inventory impairment charges and debt extinguishment costs, earnings per diluted share was $0.13 per share for the fourth quarter of last year.
For the full year, sales increased 10.8% to $1.1 billion, compared to $1 billion for 2020. Earnings per diluted share for 2021 was $0.83 based upon 19.8 million diluted shares, compared to a loss of $1.65 per share in 2020 based on 17.7 million basic shares. Excluding non-cash impairment and other one-time charges of $59.9 million, and $5.4 million in debt extinguishment costs, earnings per diluted share were $0.73 per share, assuming a 22.5% tax rate for full year 2020 .
Adjusted EBITDA for 2021 was $70.2 million compared to $59 million for 2020; adjusted EBITDA as a percentage of sales was 6.3% and 5.9%, respectively. Free cash flow — cash flow from operating activities less capital expenditures — for the full year was $32.8 million.
“Given that our oil and gas customers' budgets were significantly reduced and the impact of COVID were stronger during the first of half of 2021, impacting the industrial side of DXP, fiscal 2021 was a good transitional year," said David R. Little, chairman and CEO. "DXP experienced growth in sales and gross margin resulting in 19.1% year-over-year growth in adjusted EBITDA. We are pleased with the overall financial performance in 2021.
"Similar to last year, fiscal 2021 was another unique year and presented corporate, societal and individual challenges. During the second half of 2021, we worked through accelerating supply chain headwinds and the beginning of meaningful inflation along with the continued impacts from COVID-19. DXP’s fiscal 2021 total sales were $1.1 billion a 10.8% increase year-over-year. Service center sales were up 23.2% to $816.5 million, followed by supply chain services growing 2.1% at $157.8 million and innovative pumping solutions sales declined 25.8% to $139.6 million.
"The sales momentum from our fourth quarter has positioned us for continued success as we move into 2022. Specifically, we have now experienced two sequential quarters of organic growth within IPS. The improved but volatile conditions in our traditional end markets along with DXP setting the stage to accelerate new growth through our focus on new markets, products and continued efficiency will be a catalyst as we move forward and into 2022."
"We generated $32.8 million in free cash flow, which reflects investments in working capital as we started to grow during the second half of the year," added CFO Kent Yee. "We continue to execute on our acquisition program having closed three acquisitions, bringing the total to seven acquisitions during this COVID cycle."
