Sep 30, 2021

DXP Q3 2021 Earnings Report

DXP Enterprises reported a year-over-year sales increase, driven by growth across all three business segments and strategic acquisitions.

Key Takeaways

DXP Enterprises announced third quarter 2021 financial results, featuring a 31.5% year-over-year increase in sales to $289.5 million and GAAP diluted EPS of $0.36. The company also reported $63.1 million in cash and cash equivalents and $5.2 million in free cash flow for the quarter. Strategic acquisitions, including Process Machinery and Premier Water, contributed to the company's performance.

Sales increased by 31.5% year-over-year, reaching $289.5 million.

GAAP diluted EPS was reported at $0.36, a significant improvement compared to the previous year.

Cash and cash equivalents totaled $63.1 million.

Free cash flow for the quarter amounted to $5.2 million.

Total Revenue
$289M
Previous year: $220M
+31.5%
EPS
$0.36
Previous year: $0.16
+125.0%
Adjusted EBITDA
$18.8M
Previous year: $13.7M
+37.4%
Gross Profit
$86.9M
Previous year: $61.3M
+41.8%
Cash and Equivalents
$63M
Previous year: $97.4M
-35.3%
Free Cash Flow
$5.17M
Previous year: $29.1M
-82.2%
Total Assets
$913M
Previous year: $737M
+23.9%

DXP

DXP

DXP Revenue by Segment

Forward Guidance

DXP Enterprises is confident in its ability to deliver strong results to stakeholders during the remainder of 2021 and beyond, driven by ongoing positive market trends, a strong acquisition pipeline, and steady improvement in execution and capabilities.

Positive Outlook

  • Ongoing positive market trends
  • Strong acquisition pipeline
  • Steady improvement in execution
  • Sequential increase in the IPS backlog
  • Teamwork and overall tone at DXP is moving in the right direction

Challenges Ahead

  • Continued choppiness associated with COVID-19
  • Related supply chain issues
  • Decrease in cash has been primarily driven by our acquisition activity
  • Exposure to decreases in oil and natural gas prices
  • Dependence on existing management

Revenue & Expenses

Visualization of income flow from segment revenue to net income