HOUSTON--(BUSINESS WIRE)--DXP Enterprises, Inc. (NASDAQ: DXPE) announces results for its second quarter ended June 30, 2014. The following are results for the three months ended June 30, 2014 compared to the three months ended June 30, 2013. A reconciliation of the Non-GAAP Financial Measures is at the end of this press release.
DXP Enterprises 2014 second quarter financial highlights:
- Sales were $381.6 million for the second quarter of 2014, compared to $307.9 million for the second quarter of 2013, an increase of 23.9%. Organic sales increased $13.1 million or 4.2%, and acquisitions positively impacted sales by $60.6 million.
- Gross profit was $111.0 million, or 29.1% of sales, for the second quarter of 2014, compared to $91.5 million, or 29.7% of sales, for the second quarter of 2013.
- Selling, general & administrative (SG&A) expenses were $82.6 million, or 21.7% of sales, for the second quarter of 2014, compared to $68.3 million, or 22.2% of sales, for the second quarter of 2013.
- Operating income was $28.4 million for the current quarter, compared to $23.3 million for the second quarter of 2013. Operating profit as a percentage of sales was 7.4% and 7.6% in 2014 and 2013, respectively.
- Net income of $15.5 million for the current quarter was up 13.0% compared to $13.7 million, for the second quarter of 2013.
- Earnings per diluted share for the second quarter of 2014 were $1.00 per share, based on 15.5 million diluted shares, compared to $0.90 per share in the second quarter of 2013, based on 15.3 million diluted shares.
David R. Little, Chairman and Chief Executive Officer remarked, “Reviewing our second quarter results, we are pleased with the progress we have made since our first quarter but believe we still have plenty of work ahead of us. We experienced 23.9% sales growth year over year and saw improvement in both Natpro and B27. We continue to feel that the overall economy is only going to provide modest growth but DXP remains committed to executing strategies that will take market share, improve operating performance and provide returns to shareholders. During the second quarter, we had strong organic growth within Supply Chain Services, organic sales were essentially flat within our Innovative Pumping Solutions and we had a modest increase within Service Centers. As we focus on the second half of 2014, we are excited about the opportunities to grow in excess of the market and improve our operations while continuing to focus on understanding, serving and meeting our customer’s needs.”
Mac McConnell, Chief Financial Officer added, "We are pleased to report sequential and year over year organic sales and earnings growth. While we experienced growth, our cash flow and leverage was impacted by project related contracts within Innovative Pumping Solutions, the purchase of MT&S and seasonality in Canada. Our leverage ratio under our credit facility at June 30, 2014 was 3.1:1. During the second half of the year, we look forward to improving our cash flow generation and continuing the progress from the first quarter."