Q2 2024 DXP Enterprises Inc Earnings Call Transcript
Key Points
- DXP Enterprises Inc (DXPE) achieved a 4.1% year-over-year sales growth and an 8% sequential growth rate.
- The company reported a strong adjusted EBITDA margin of 10.8%, marking the fifth quarter out of the last six with margins above 10%.
- Innovative Pumping Solutions (IPS) segment saw a significant sales increase of 52.7% year over year.
- DXP Enterprises Inc (DXPE) completed four acquisitions in the first half of 2024, contributing $23.4 million in sales during Q2.
- The company maintained a strong balance sheet with $49.9 million in cash and a secured leverage ratio of 2.6:1.
- Service Centers segment experienced a 2.3% decline in sales year over year.
- Supply Chain Services (SCS) sales were flat, reflecting challenges in adding new customers and facility closures with existing customers.
- Increased SG&A expenses by $6.1 million year over year, reflecting growth in the business and associated incentive compensation.
- Higher interest expenses impacted net income, resulting in a slight decrease in earnings per diluted share from $1.06 last year to $1.02 this year.
- Working capital increased by $18.1 million from March, indicating higher inventory and operational costs.
Thank you for standing by. My name is John, and I'll be your conference operator today. At this time, I would like to welcome everyone to the DXP Enterprise's Second Quarter 2024 Earnings Release and Conference Call. All lines have been placed in mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. (Operator Instructions) As a reminder, this call is being recorded.
Thank you. I would now like to turn the call over to Kent Yee, Chief Financial Officer. Please go ahead.
Thank you, John. And thank you to everyone joining us this morning. This is Kent Yee, and welcome to DXP's Q2 2024 conference call to discuss our results for the second quarter ending June 30, 2024. Joining me today is our Chairman and CEO, David Little.
Before we get started, I want to remind you that today's call is being webcast and recorded and includes forward-looking statements. Actual results may differ
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