Jun 30, 2020

DXP Q2 2020 Earnings Report

DXP Enterprises reported second quarter results with strong free cash flow generation and debt reduction.

Key Takeaways

DXP Enterprises announced financial results for the second quarter ended June 30, 2020. Sales were $251.4 million, and earnings per diluted share was $0.12. The company generated $61.6 million in free cash flow and paid down debt by $15.6 million.

Sales were $251.4 million compared to $333.3 million for the second quarter of 2019.

Earnings per diluted share for the second quarter was $0.12 based upon 18.6 million diluted shares.

Free cash flow for the second quarter was $61.6 million, or 489.5% of EBITDA.

As of June 30, 2020, DXP had $78.8 million in cash and cash equivalents on the balance sheet.

Total Revenue
$251M
Previous year: $333M
-24.6%
EPS
$0.12
Previous year: $0.73
-83.6%
Adjusted EBITDA
$13.8M
Previous year: $29.1M
-52.6%
Gross Profit
$69.7M
Previous year: $92M
-24.2%
Cash and Equivalents
$78.8M
Previous year: $25.4M
+209.9%
Free Cash Flow
$61.6M
Previous year: -$4.42M
-1493.0%
Total Assets
$783M
Previous year: $787M
-0.4%

DXP

DXP

DXP Revenue by Segment

Forward Guidance

Visibility on the economic outlook remains extremely limited. Specifically, the risk of a second wave of virus cases, the reinstitution of select geographic lockdowns, the upcoming election and the risk of lingering high unemployment create an uncertain economic environment that likely persists through the rest of 2020 based upon what we know today.

Challenges Ahead

  • Risk of a second wave of virus cases
  • Reinstitution of select geographic lockdowns
  • Upcoming election
  • Risk of lingering high unemployment
  • Uncertain economic environment

Revenue & Expenses

Visualization of income flow from segment revenue to net income