DXP sales rise 6.1% in third quarter
DXP Enterprises Inc. reported its third quarter sales increased 6.1% sequentially to $472.9 million, compared to $445.6 million for the second quarter of 2024 and increased 12.8% compared to $419.2 million for the third quarter of 2023.
Net income for the third quarter was $21.1 million, compared to $16.2 million for the third quarter of 2023 and $16.7 million for the second quarter of 2024.
Chairman and Chief Executive Officer David R. Little said, "The company posted excellent third quarter financial results in a lessening inflationary and varied spending by end market, delivering solid sales, adjusted EBITDA, earnings per share and free cash flow. Third quarter results reflect the continued execution of our growth strategy and the impact of our acquisition program. We continue to set new high watermarks as DXPeople. We are pleased with our sequential sales growth and strong adjusted EBITDA margins. This resulted in operating leverage that produced earnings per share of $1.27. DXP’s third quarter 2024 sales were $472.9 million, or a 6.1% increase over the second quarter of 2024 and a 12.8% growth over the same period in 2023. Adjusted EBITDA grew $4.2 million, or 8.7% over the second quarter of 2024 to $52.4 million. During the third quarter of 2024, sales were $316.8 million for Service Centers, $89.8 million for Innovative Pumping Solutions, and $66.3 million for Supply Chain Services. Overall, we are very pleased with our performance and the progress DXP continues to make as a growth company."
Chief Financial Officer and Senior Vice President Kent Yee remarked, "DXP achieved yet another high watermark quarter with a 6.1 percent sequential sales increase to $472.9 million in sales and 11.1 percent Adjusted EBITDA margins. We have closed five acquisitions through the third quarter, and we have closed two acquisitions during the fourth quarter of 2024. This quarters financial results reflect continued execution of our strategic goals and the impact of our diversification efforts, an overall reduced energy industry exposure, and a strong balance sheet to support our key initiatives. Subsequent to the third quarter, we announced the successful completion of the repricing of our existing debt plus raising an incremental $105 million. DXP is saving one hundred basis points on existing debt, while raising incremental money to further drive anticipated acquisition growth. Total debt outstanding as of September 30, 2024, was $544.5 million. DXP’s secured leverage ratio or net debt to EBITDA ratio was 2.54:1.0 with a covenant EBITDA of $200.7 million for the last 12 months ending September 30, 2024. We expect to finish fiscal year 2024 strong with momentum going into fiscal year 2025."
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