Mar 31, 2020

DXP Q1 2020 Earnings Report

DXP Enterprises reported mixed results for Q1 2020, with a decrease in sales but improved earnings per share compared to the previous quarter.

Key Takeaways

DXP Enterprises reported a decrease in sales by 3.3% to $301.0 million compared to Q1 2019. Net income was $5.7 million, with GAAP diluted EPS of $0.31. The company focused on managing its balance sheet and prioritizing the health and safety of its employees during the COVID-19 pandemic.

Sales decreased by 3.3% to $301.0 million compared to $311.2 million in Q1 2019.

Earnings per diluted share was $0.31, based upon 18.6 million diluted shares.

EBITDA for the first quarter was $17.8 million compared to $21.1 million for the first quarter of 2019.

Expanded ABL facility from $85 million to $135 million with no changes in pricing or terms.

Total Revenue
$301M
Previous year: $311M
-3.3%
EPS
$0.31
Previous year: $0.4
-22.5%
Adjusted EBITDA
$18.8M
Previous year: $21.7M
-13.5%
Gross Profit
$84M
Previous year: $84.2M
-0.3%
Cash and Equivalents
$32.9M
Previous year: $30.6M
+7.5%
Free Cash Flow
-$4.85M
Previous year: -$7.62M
-36.4%
Total Assets
$792M
Previous year: $775M
+2.1%

DXP

DXP

DXP Revenue by Segment

Forward Guidance

While DXP Enterprises expects demand to trough in the second quarter, the company's flexible balance sheet, liquidity, and cash flow generation provide confidence to manage the impact of fluctuating and lower demand. DXP remains well positioned to support its customers, suppliers and communities during this extraordinary time.

Positive Outlook

  • Emphasizing and implementing good hygiene protocol at all facilities
  • Implementing a temporary hiring freeze, travel restrictions and wage freeze
  • Expanding our $85 million ABL facility to $135 million
  • Internal focus on cash management
  • Monitoring likely areas of exposure

Revenue & Expenses

Visualization of income flow from segment revenue to net income