UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): April 27, 2005
Commission file number 0-21513
DXP Enterprises, Inc.
(Exact name of registrant as specified in its charter)
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Texas |
76-0509661 |
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(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) |
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7272 Pinemont, Houston, Texas 77040 |
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(Address of principal executive offices) |
_________________________
Registrant's telephone number, including area code:
(713) 996-4700
_________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02. REGULATION FD DISCLOSURE
The following information is furnished pursuant to Regulation FD.
On April 27, 2005, DXP Enterprises, Inc., issued a press release announcing financial results for the quarterly period ended March 31, 2005, a copy of which is furnished as Exhibit 99.1 hereto, which is incorporated herein by reference. Such exhibit (i) is furnished pursuant to Item 2.02 of Form 8-K, (ii) is not to be considered "filed" under the Securities Exchange Act of 1934, as amended (the "Exchange Act") and (iii) shall not be incorporated by reference into any previous or future filings made by or to be made by the Company with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits.
99.1 Press Release dated April 27, 2005
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
DXP ENTERPRISES, INC.
April 27, 2005 By: /s/Mac McConnell
Mac McConnell
Senior Vice President and
Chief Financial Officer
INDEX TO EXHIBITS
Introductory Note: The following exhibit is furnished pursuant to Item 2.02 of Form 8-K and is not to be considered "filed" under the Exchange Act and shall not be incorporated by reference into any of the Company's previous or future filings under the Securities Act or the Exchange Act.
Exhibit No. Description
99.1 Press Release dated April 27, 2005 regarding financial results for the
quarterly period ended March 31, 2005
Exhibit 99.1
NEWS RELEASE
CONTACT: Mac McConnell
Senior Vice President, Finance
713-996-4700
www.dxpe.com
DXP ENTERPRISES ANNOUNCES FIRST QUARTER RESULTS
NET INCOME INCREASES 26%
Houston, TX, -- April 27, 2005- DXP Enterprises, Inc. (NASDAQ: DXPE)
today announced net income of $854,000 for the first quarter ending March 31, 2005, with diluted earnings per share of $.15 compared to net income of $678,000 and diluted earnings per share of $.12 for the first quarter of 2004. Sales increased 10.2% to $41.8 million from $37.9 million for the first quarter of last year.David R. Little, Chairman and Chief Executive Officer said, "The first quarter sales increase was broad based with increased sales of pumps, bearings, safety products and mill supplies to oil field service, oil and gas production, mining, electricity generation and petrochemical processing customers. We are enthusiastic about the current level of business opportunities and our strategic abilities to take market share from the competition."
DXP Enterprises, Inc. is a leading products and service distributor that adds value and total cost savings solutions to MRO and OEM customers in virtually every industry since 1908. DXP provides innovative pumping solutions, integrated supply and MROP (maintenance, repair, operating and production) services that emphasize and utilize DXP's vast product knowledge and technical expertise in pumps, bearings, power transmission, seals, hose, safety, fluid power, electrical and industrial supplies. DXP's breadth of MROP products and service solutions allows DXP to be flexible and customer driven creating competitive advantages for our customers.
DXP's innovative pumping solutions provide engineering, fabrication and technical design to meet the capital equipment needs of its global customer base. DXP provides solutions by utilizing manufacturer authorized equipment and certified personnel. Pump packages require MRO and OEM equipment such as pumps, motors and valves, and consumable products. DXP leverages its MROP inventories and technical knowledge to lower the total cost and maintain the quality of the pump package.
SmartSource, a DXP integrated supply program, allows a more efficient way to manage the customer's supply chain needs for MROP products. The program allows the customer to transfer all or part of their supply chain needs to DXP, so the customer can focus on his core business. SmartSource effectively lowers costs by outsourcing purchasing, accounting, and on-site supply management to DXP, which reduces the duplication of effort by the customer and supplier. DXP's broad range of first-tier products provides an efficient measurable solution to reduce cost and streamline procurement and sourcing operations.
The Private Securities Litigation Reform Act of 1995 provides a "safe-harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made by or to be made by the Company) contains statements that are forward-looking. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future; and accordingly, such results may differ from those expressed in any forward-looking statement made by or on behalf of the Company. These risks and uncertainties include, but are not limited to; ability to obtain needed capital, dependence on existing management, leverage and debt service, domestic or global economic conditions, and changes in customer preferences and attitudes. For more information, review the Company's filings with the Securities and Exchange Commission.
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
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Three Months Ended |
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March 31, |
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2005 |
2004 |
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Sales |
$ 41,790 |
$ 37,910 |
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Cost of sales |
30,821 |
28,299 |
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Gross profit |
10,969 |
9,611 |
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Selling, general and administrative expense |
9,454 |
8,335 |
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Operating income |
1,515 |
1,276 |
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Other income |
10 |
17 |
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Interest expense |
(244) |
(223) |
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Minority interest in loss of consolidated subsidiary |
63 |
- |
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Income before taxes |
1,344 |
1,070 |
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Provision for income taxes |
490 |
392 |
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Net income |
854 |
678 |
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Preferred stock dividend |
23 |
23 |
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Net income attributable to common shareholders |
$ 831 |
$ 655 |
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Basic income per share |
$ 0.20 |
$ 0.16 |
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Weighted average common shares outstanding |
4,062 |
4,070 |
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Diluted income per share |
$ 0.15 |
$ 0.12 |
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Weighted average common and common equivalent shares outstanding |
5,568 |
5,514 |
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