Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 11, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'DXP ENTERPRISES INC | ' | ' |
Entity Central Index Key | '0001020710 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $687,772,472 |
Entity Common Stock, Shares Outstanding | ' | 14,492,403 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash | $5,469 | $10,455 |
Trade accounts receivable, net of allowances for doubtful accounts of $8,798 in 2013 and $7,204 in 2012 | 192,003 | 174,832 |
Inventories, net | 105,271 | 101,422 |
Prepaid expenses and other current assets | 2,693 | 3,811 |
Deferred income taxes | 7,713 | 5,182 |
Total current assets | 313,149 | 295,702 |
Property and equipment, net | 58,253 | 58,713 |
Goodwill | 188,110 | 145,788 |
Other intangible assets, net of accumulated amortization of $44,410 in 2013 and $31,699 in 2012 | 69,722 | 63,189 |
Other long-term assets | 6,043 | 6,340 |
Total assets | 635,277 | 569,732 |
Current liabilities: | ' | ' |
Current maturities of long-term debt | 26,213 | 22,057 |
Trade accounts payable | 78,853 | 74,356 |
Accrued wages and benefits | 20,473 | 15,216 |
Federal income taxes payable | 853 | 1,696 |
Customer advances | 3,720 | 2,996 |
Other accrued liabilities | 18,605 | 12,131 |
Total current liabilities | 148,717 | 128,452 |
Long-term debt, less current maturities | 168,372 | 216,339 |
Non-current deferred income taxes | 21,938 | 16,448 |
Commitments and Contingencies (Note 13) | ' | ' |
Shareholders' equity: | ' | ' |
Common stock, $0.01 par value, 100,000,000 shares authorized; 14,468,485 in 2013 and 14,118,348 in 2012 shares issued | 144 | 141 |
Additional paid-in capital | 109,892 | 78,554 |
Retained earnings | 193,737 | 133,590 |
Accumulated other comprehensive (loss) income | -2,368 | 1,059 |
Treasury stock, at cost (146,871 shares at December 31, 2013 and 141,471 shares at December 31, 2012) | -5,171 | -4,867 |
Total shareholders' equity | 296,250 | 208,493 |
Total liabilities and shareholders' equity | 635,277 | 569,732 |
Series A Preferred Stock [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock | 1 | 1 |
Series B Convertible Preferred Stock [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock | $15 | $15 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ' | ' |
Trade accounts receivable, allowances for doubtful accounts | $8,798 | $7,204 |
Accumulated amortization | $44,410 | $31,699 |
Shareholders' equity: | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock shares issued (in shares) | 14,468,485 | 14,118,348 |
Treasury stock (in shares) | 146,871 | 141,471 |
Series A Preferred Stock [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock, voting rights | '1/10th | '1/10th |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, liquidation preference (in dollars per share) | $112 | $100 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 1,122 | 1,122 |
Preferred stock, outstanding (in shares) | 1,122 | 1,122 |
Series B Convertible Preferred Stock [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock, voting rights | '1/10th | '1/10th |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, Stated value (in dollars per share) | $100 | $100 |
Preferred stock, liquidation preference (in dollars per share) | $1,500 | $100 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 15,000 | 15,000 |
Preferred stock, outstanding (in shares) | 15,000 | 15,000 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME [Abstract] | ' | ' | ' |
Sales | $1,241,510 | $1,097,110 | $807,005 |
Cost of sales | 869,165 | 778,019 | 575,169 |
Gross profit | 372,345 | 319,091 | 231,836 |
Selling, general and administrative expense | 271,421 | 228,569 | 176,351 |
Operating income | 100,924 | 90,522 | 55,485 |
Other income, net | -75 | -47 | -28 |
Interest expense | 6,282 | 5,560 | 3,518 |
Income before income taxes | 94,717 | 85,009 | 51,995 |
Provision for income taxes | 34,480 | 34,024 | 20,558 |
Net income | 60,237 | 50,985 | 31,437 |
Preferred stock dividend | 90 | 90 | 90 |
Net income attributable to common shareholders | 60,147 | 50,895 | 31,347 |
Net income | 60,237 | 50,985 | 31,437 |
(Loss) gain on long-term investment, net of income taxes | -387 | 378 | 64 |
Cumulative translation adjustment, net of income taxes | -3,040 | 617 | 0 |
Comprehensive income | $56,810 | $51,980 | $31,501 |
Basic earnings per share (in dollars per share) | $4.17 | $3.54 | $2.19 |
Weighted average common shares outstanding (in shares) | 14,439 | 14,374 | 14,301 |
Diluted earnings per share (in dollars per share) | $3.94 | $3.35 | $2.08 |
Weighted average common shares and common equivalent shares outstanding (in shares) | 15,279 | 15,214 | 15,141 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Common Stock [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands, unless otherwise specified | ||||||||
BALANCES at Dec. 31, 2010 | $124,120 | $1 | $15 | $140 | $72,616 | $51,348 | $0 | $0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends paid | -90 | 0 | 0 | 0 | 0 | -90 | 0 | 0 |
Compensation expense for restricted stock | 1,256 | 0 | 0 | 0 | 1,256 | 0 | 0 | 0 |
Net gain on interest rate swap (long-term Investment) for comprehensive income | 64 | 0 | 0 | 0 | 0 | 0 | 0 | 64 |
Issuance of shares in connection with acquisitions | 1,143 | 0 | 0 | 0 | 1,143 | 0 | 0 | 0 |
Vesting of restricted stock | 190 | 0 | 0 | 1 | 189 | 0 | 0 | 0 |
Acquisition of treasury stock | -1,445 | 0 | 0 | 0 | 0 | 0 | -1,445 | 0 |
Net income | 31,437 | 0 | 0 | 0 | 0 | 31,437 | 0 | 0 |
BALANCES at Dec. 31, 2011 | 156,675 | 1 | 15 | 141 | 75,204 | 82,695 | -1,445 | 64 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends paid | -90 | 0 | 0 | 0 | 0 | -90 | 0 | 0 |
Compensation expense for restricted stock | 1,955 | 0 | 0 | 0 | 1,955 | 0 | 0 | 0 |
Net gain on interest rate swap (long-term Investment) for comprehensive income | 378 | 0 | 0 | 0 | 0 | 0 | 0 | 378 |
Issuance of shares in connection with acquisitions | 946 | 0 | 0 | 0 | 946 | 0 | 0 | 0 |
Vesting of restricted stock | 449 | 0 | 0 | 0 | 449 | 0 | 0 | 0 |
Acquisition of treasury stock | -3,422 | 0 | 0 | 0 | 0 | 0 | -3,422 | 0 |
Cumulative translation adjustment | 617 | 0 | 0 | 0 | 0 | 0 | 0 | 617 |
Net income | 50,985 | 0 | 0 | 0 | 0 | 50,985 | 0 | 0 |
BALANCES at Dec. 31, 2012 | 208,493 | 1 | 15 | 141 | 78,554 | 133,590 | -4,867 | 1,059 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends paid | -90 | 0 | 0 | 0 | 0 | -90 | 0 | 0 |
Issuance of common stock | 24,358 | ' | ' | 2 | 24,356 | ' | ' | ' |
Compensation expense for restricted stock | 2,832 | 0 | 0 | 0 | 2,832 | 0 | 0 | 0 |
Net gain on interest rate swap (long-term Investment) for comprehensive income | -387 | 0 | 0 | 0 | 0 | 0 | 0 | -387 |
Issuance of shares in connection with acquisitions | 3,518 | 0 | 0 | 1 | 3,517 | 0 | 0 | 0 |
Vesting of restricted stock | 633 | 0 | 0 | 0 | 633 | 0 | 0 | 0 |
Acquisition of treasury stock | -304 | 0 | 0 | 0 | 0 | 0 | -304 | 0 |
Cumulative translation adjustment | -3,040 | 0 | 0 | 0 | 0 | 0 | 0 | -3,040 |
Net income | 60,237 | 0 | 0 | 0 | 0 | 60,237 | 0 | 0 |
BALANCES at Dec. 31, 2013 | $296,250 | $1 | $15 | $144 | $109,892 | $193,737 | ($5,171) | ($2,368) |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Issuance of shares in connection with acquisitions (in shares) | 52,542 | 19,685 | 35,714 |
Vesting of restricted stock for common stock (in shares) | 67,021 | 75,419 | 68,069 |
Acquisition of treasury stock (in shares) | 5,400 | 76,300 | 65,171 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net income | $60,237 | $50,985 | $31,437 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation | 9,830 | 7,196 | 3,510 |
Amortization of Intangible Assets | 11,830 | 10,886 | 6,572 |
Write-off of debt issuance costs | 0 | 654 | 0 |
Gain on reversal of earn-out | -2,805 | 0 | 0 |
Compensation expense for restricted stock | 2,832 | 1,955 | 1,256 |
Tax benefit related to vesting of restricted stock | -958 | -680 | -198 |
Deferred income taxes | 2,834 | 1,230 | 2,426 |
Changes in operating assets and liabilities, net of assets and liabilities acquired in business acquisitions: | ' | ' | ' |
Trade accounts receivable | -1,297 | -1,978 | -21,548 |
Inventories | 3,860 | -3,470 | -4,258 |
Prepaid expenses and other assets | 2,215 | -2,211 | -2,617 |
Accounts payable and accrued expenses | -6,380 | -13,361 | 9,248 |
Net cash provided by operating activities | 82,198 | 51,206 | 25,828 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Purchase of property and equipment | -7,745 | -14,110 | -4,096 |
Purchase of long-term investment | -68 | -105 | -1,572 |
Acquisitions of businesses, net of cash acquired | -61,195 | -144,879 | -18,434 |
Net cash used in investing activities | -69,008 | -159,094 | -24,102 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Proceeds from debt | 458,446 | 465,163 | 224,307 |
Principal payments on revolving line of credit and other long-term debt | -501,990 | -345,231 | -223,959 |
Dividends paid | -90 | -90 | -90 |
Purchase of treasury stock | -304 | -3,422 | -1,445 |
Proceeds from issuance of common shares, net | 24,358 | 0 | 0 |
Tax benefit related to vesting of restricted stock | 958 | 680 | 198 |
Net (used in) cash provided by financing activities | -18,622 | 117,100 | -989 |
EFFECT OF FOREIGN CURRENCY ON CASH | 446 | -264 | 0 |
(DECREASE) INCREASE IN CASH | -4,986 | 8,948 | 737 |
CASH AT BEGINNING OF YEAR | 10,455 | 1,507 | 770 |
CASH AT END OF YEAR | 5,469 | 10,455 | 1,507 |
Supplemental Cash Flow Information [Abstract] | ' | ' | ' |
Cash paid for Interest | 5,489 | 4,285 | 3,490 |
Cash paid for Income Taxes | $35,697 | $32,311 | $14,190 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF CASH FLOWS [Abstract] | ' | ' | ' |
Exclusion of stock issued in connection with acquisitions | $3.60 | $0.90 | $1.10 |
Outstanding checks excluded from purchases of business | ' | ' | $36.70 |
THE_COMPANY
THE COMPANY | 12 Months Ended |
Dec. 31, 2013 | |
THE COMPANY [Abstract] | ' |
THE COMPANY | ' |
NOTE 1 - THE COMPANY | |
DXP Enterprises, Inc. together with its subsidiaries (collectively “DXP,” “Company,” “us,” “we,” or “our”) was incorporated in Texas on July 26, 1996, to be the successor to SEPCO Industries, Inc. DXP Enterprises, Inc. and its subsidiaries are engaged in the business of distributing maintenance, repair and operating (MRO) products, equipment and service to industrial customers. The Company is organized into three segments: Service Centers, Supply Chain Services (SCS) and Innovative Pumping Solutions (IPS). See Note 16 for discussion of the business segments. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES | 12 Months Ended | |
Dec. 31, 2013 | ||
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES [Abstract] | ' | |
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES | ' | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES | ||
Basis of Presentation | ||
The Company’s financial statements are prepared in accordance with the accounting principles generally accepted in the United States of America (“USGAAP”). The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. | ||
All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation; none affected net income. | ||
Foreign Currency | ||
The financial statements of the Company’s Canadian subsidiaries are measured using local currencies as their functional currencies. Assets and liabilities are translated into U.S. dollars at current exchange rates, while income and expenses are translated at average exchange rates. Translation gains and losses are reported in other comprehensive income (loss) in the statements of consolidated comprehensive income. | ||
Use of Estimates | ||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In the opinion of management, all adjustments necessary in order to make the financial statements not misleading have been included. Actual results could differ from those estimates. | ||
Cash and Cash Equivalents | ||
The Company’s presentation of cash includes cash equivalents. Cash equivalents are defined as short-term investments with maturity dates of 90 days or less at time of purchase. | ||
Receivables and Credit Risk | ||
Trade receivables consist primarily of uncollateralized customer obligations due under normal trade terms, which usually require payment within 30 days of the invoice date. However, these payment terms are extended in select cases and many customers do not pay within stated trade terms. | ||
The Company has trade receivables from a diversified customer base located primarily in the Rocky Mountain, Northeastern, Midwestern, Southeastern and Southwestern regions of the United States, and Canada. The Company believes no significant concentration of credit risk exists. The Company evaluates the creditworthiness of its customers' financial positions and monitors accounts on a regular basis, but generally does not require collateral. Provisions to the allowance for doubtful accounts are made monthly and adjustments are made periodically (as circumstances warrant) based upon management’s best estimate of the collectability of all such accounts. The Company writes-off uncollectible trade accounts receivable when the accounts are determined to be uncollectible. No customer represents more than 10% of consolidated sales. | ||
Fair Value of Financial Instruments | ||
The Company is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. USGAAP establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. USGAAP prioritizes the inputs into three levels that may be used to measure fair value: | ||
Level 1 | ||
Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | ||
Level 2 | ||
Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | ||
Level 3 | ||
Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | ||
See Note 4 for further information regarding the Company’s financial instruments. | ||
Inventories | ||
Inventories consist principally of finished goods and are priced at lower of cost or market, cost being determined using the first-in, first-out (“FIFO”) method. Reserves are provided against inventories for estimated obsolescence based upon the aging of the inventories and market trends. | ||
Property and Equipment | ||
Property and equipment are carried on the basis of cost. Expenditures for major additions and betterments are capitalized. Depreciation of property and equipment is computed using the straight-line method over their estimated useful lives. Maintenance and repairs of depreciable assets are charged against earnings as incurred. Additions and improvements are capitalized. When properties are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and gains or losses are credited or charged to earnings. | ||
The principal estimated useful lives used in determining depreciation are as follows: | ||
Buildings | 20-39 years | |
Building improvements | 10-20 years | |
Furniture, fixtures and equipment | 3-20 years | |
Leasehold improvements | Shorter of estimated useful life or related lease term | |
Impairment of Goodwill and Other Intangible Assets | ||
The Company tests goodwill and other indefinite lived intangible assets for impairment on an annual basis and when events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company assigns the carrying value of these intangible assets to its "reporting units" and applies the test for goodwill at the reporting unit level. A reporting unit is defined as an operating segment or one level below a segment (a "component") if the component is a business and discrete information is prepared and reviewed regularly by segment management. | ||
The Company’s goodwill impairment assessment first requires evaluating qualitative factors to determine if a reporting unit's carrying value would more likely than not exceed its fair value. If the Company concludes, based on the qualitative assessment, that a reporting unit's carrying value would more likely than not exceed its fair value, the Company would perform a two-step quantitative test for that reporting unit. When a quantitative assessment is performed, the first step is to identify a potential impairment, and the second step measures the amount of the impairment loss, if any. Goodwill is deemed to be impaired if the carrying amount of a reporting unit’s goodwill exceeds its estimated fair value. No impairment of goodwill was required in 2013, 2012 or 2011. | ||
Impairment of Long-Lived Assets, Excluding Goodwill | ||
The Company tests long-lived assets or asset groups for recoverability on an annual basis and when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value. | ||
Stock-based Compensation | ||
The Company uses restricted stock for share-based compensation programs. The Company measures compensation cost with respect to equity instruments granted as stock-based payments to employees based upon the estimated fair value of the equity instruments at the date of the grant. The cost as measured is recognized as expense over the period which an employee is required to provide services in exchange for the award. | ||
Revenue Recognition | ||
For binding agreements to fabricate tangible assets to customer specifications, the Company recognizes revenues using the percentage of completion method. Under this method, revenues are recognized as costs are incurred and include estimated profits calculated on the basis of the relationship between costs incurred and total estimated costs at completion. If at any time expected costs exceed the value of the contract, the loss is recognized immediately. Revenues of approximately $12.7 million, $15.9 million, and $9.8 million were recognized on contracts in process for the years ended December 31, 2013, 2012, and 2011, respectively. The typical time span of these contracts is approximately one to two years. At December 31, 2013 and 2012, $5.1 million and $8.5 million, respectively, of unbilled costs and estimated earnings are included in accounts receivable. | ||
For other sales, the Company recognizes revenues when an agreement is in place, the price is fixed, title for product passes to the customer or services have been provided and collectability is reasonably assured. Revenues are recorded net of sales taxes. | ||
The Company reserves for potential customer returns based upon the historical level of returns. | ||
Shipping and Handling Costs | ||
The Company classifies shipping and handling charges billed to customers as sales. Shipping and handling charges paid to others are classified as a component of cost of sales. | ||
Self-insured Insurance and Medical Claims | ||
We generally retain up to $100,000 of risk for each claim for workers compensation, general liability, automobile and property loss. We accrue for the estimated loss on the self-insured portion of these claims. The accrual is adjusted quarterly based upon reported claims information. The actual cost could deviate from the recorded estimate. | ||
We generally retain up to $250,000 of risk on each medical claim for our employees and their dependents. We accrue for the estimated outstanding balance of unpaid medical claims for our employees and their dependents. The accrual is adjusted monthly based on recent claims experience. The actual claims could deviate from recent claims experience and be materially different from the reserve. | ||
The accrual for these claims at December 31, 2013 and 2012 was approximately $2.1 million and $1.8 million, respectively. | ||
Purchase Accounting | ||
DXP estimates the fair value of assets, including property, machinery and equipment and their related useful lives and salvage values, intangibles and liabilities when allocating the purchase price of an acquisition. The fair value estimates are developed using the best information available. Third party valuation specialists assist in valuing the Company’s significant acquisitions. | ||
Cost of Sales and Selling, General and Administrative Expense | ||
Cost of sales includes product and product related costs, inbound freight charges, internal transfer costs and depreciation. Selling, general and administrative expense includes purchasing and receiving costs, inspection costs, warehousing costs, depreciation and amortization. DXP’s gross margins may not be comparable to those of other entities, since some entities include all of the costs related to their distribution network in cost of sales and others like DXP exclude a portion of these costs from gross margin, including the costs in a line item, such as selling, general and administrative expense. | ||
Income Taxes | ||
The Company utilizes the asset and liability method of accounting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and income tax bases of assets and liabilities. Such deferred income tax asset and liability computations are based on enacted tax laws and rates applicable to periods in which the differences are expected to reverse. Valuation allowances are established to reduce deferred income tax assets to the amounts expected to be realized. | ||
Comprehensive Income | ||
Comprehensive income includes net income, foreign currency translation adjustments, unrecognized gains (losses) on postretirement and other employment-related plans, changes in fair value of certain derivatives, and unrealized gains and losses on certain investments in debt and equity securities. The Company’s other comprehensive (loss) income is comprised of changes in the market value of an investment with quoted market prices in an active market for identical instruments and translation adjustments from translating foreign subsidiaries to the reporting currency. | ||
Accounting for Uncertainty in Income Taxes | ||
In July 2006, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which requires that a position taken or expected to be taken in a tax return be recognized in the financial statements when it is more likely than not (i.e. a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states. With few exceptions, the Company is no longer subject to U. S. federal, state and local tax examination by tax authorities for years prior to 2007. The Company's policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as operating expenses. The Company believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2013 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS | |
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740), which requires entities to present unrecognized tax benefits as a liability and not combine it with deferred tax assets to the extent a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward is not available at the reporting date. ASU 2013-11 will become effective for fiscal years beginning after December 15, 2013. DXP will adopt this guidance in the first quarter of 2014. Management believes that the adoption of this guidance will not have a material effect on its consolidated financial position, results of operations or cash flows. |
FAIR_VALUE_OF_FINANCIAL_ASSETS
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | 12 Months Ended | |||
Dec. 31, 2013 | ||||
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES [Abstract] | ' | |||
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | ' | |||
NOTE 4 - FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | ||||
Authoritative guidance for financial assets and liabilities measured on a recurring basis applies to all financial assets and financial liabilities that are being measured and reported on a fair value basis. Fair value, as defined in the authoritative guidance, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative guidance affects the fair value measurement of an investment with quoted market prices in an active market for identical instruments, which must be classified in one of the following categories: | ||||
Level 1 Inputs | ||||
Level 1 inputs come from quoted prices (unadjusted) in active markets for identical assets or liabilities. | ||||
Level 2 Inputs | ||||
Level 2 inputs are other than quoted prices that are observable for an asset or liability. These inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. | ||||
Level 3 Inputs | ||||
Level 3 inputs are unobservable inputs for the asset or liability which require the Company’s own assumptions. | ||||
Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. | ||||
The following table presents the changes in Level 1 assets for the period indicated (in thousands): | ||||
Years Ended December 31, | ||||
2013 | 2012 | |||
Fair value at beginning of period | $ 2,413 | $ 1,679 | ||
Investment during period | 68 | 105 | ||
Realized and unrealized gains (losses) | -644 | 629 | ||
included in other comprehensive income | ||||
Fair value at end of period | $ 1,837 | $ 2,413 | ||
The Company has paid a total of $1.7 million for an investment with quoted market prices in an active market. At December 31, 2012, the market value of the investment was $2.4 million. At December 31, 2013, the market value of the investment was $1.8 million and is included within other long-term assets in the balance sheet. The $0.6 million decrease in the market value during the year ended December 31, 2013 was included in other comprehensive income, net of taxes. |
INVENTORY
INVENTORY | 12 Months Ended | |||
Dec. 31, 2013 | ||||
INVENTORY [Abstract] | ' | |||
INVENTORY | ' | |||
NOTE 5 - INVENTORY | ||||
The carrying values of inventories are as follows (in thousands): | ||||
December 31, | December 31, | |||
2013 | 2012 | |||
Finished goods | $ 102,608 | $ 97,679 | ||
Work in process | 6,657 | 7,470 | ||
Inventory reserve | -3,994 | -3,727 | ||
Inventories | $ 105,271 | $ 101,422 |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||
Dec. 31, 2013 | ||||
PROPERTY AND EQUIPMENT [Abstract] | ' | |||
PROPERTY AND EQUIPMENT | ' | |||
NOTE 6 - PROPERTY AND EQUIPMENT | ||||
The carrying values of property and equipment are as follows (in thousands): | ||||
December 31, | December 31, | |||
2013 | 2012 | |||
Land | $ 2,137 | $ 1,861 | ||
Buildings and leasehold improvements | 9,565 | 7,378 | ||
Furniture, fixtures and equipment | 79,633 | 72,219 | ||
Less – Accumulated depreciation | -33,082 | -22,745 | ||
Total Property and Equipment | $ 58,253 | $ 58,713 | ||
Depreciation expense was $9.8 million, $7.2 million, and $3.5 million for the years ended December 31, 2013, 2012, and 2011, respectively. Capital expenditures by segment are included in Note 16. | ||||
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | ' | |||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | |||||||||||
NOTE 7 - GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||
The following table presents the changes in the carrying amount of goodwill and other intangible assets during the year ended December 31, 2013 (in thousands): | ||||||||||||
Goodwill | Other | Total | ||||||||||
Intangible Assets | ||||||||||||
Balance as of December 31, 2012 | $145,788 | $63,189 | $208,977 | |||||||||
Acquired during the period | 39,898 | 22,033 | 61,931 | |||||||||
Adjustments to prior period estimates | 2,424 | -2,424 | - | |||||||||
Translation adjustment | - | -1,246 | -1,246 | |||||||||
Amortization | - | -11,830 | -11,830 | |||||||||
Balance as of December 31, 2013 | $188,110 | $69,722 | $257,832 | |||||||||
During the year, the Company reduced customer lists from our HSE acquisition by approximately $2.3 million based on a valuation specialists’ report. This resulted in an increase in goodwill. There were other insignificant changes to prior year estimates. | ||||||||||||
The following table presents the changes in the carrying amount of goodwill and other intangible assets during the year ended December 31, 2012 (in thousands): | ||||||||||||
Other | Total | |||||||||||
Goodwill | Intangible Assets | |||||||||||
Balance as of December 31, 2011 | $ 101,764 | $43,194 | $144,958 | |||||||||
Acquired during the year | 44,074 | 30,643 | 74,717 | |||||||||
Adjustments to prior year estimates | -50 | 50 | - | |||||||||
Translation adjustment | - | 188 | 188 | |||||||||
Amortization | - | -10,886 | -10,886 | |||||||||
Balance as of December 31, 2012 | $145,788 | $63,189 | $208,977 | |||||||||
The following table presents goodwill balance by reportable segment as of December 31, 2013 and 2012 (in thousands): | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Service Centers | $ 142,714 | $ 112,670 | ||||||||||
Innovative Pumping Solutions | 28,258 | 15,980 | ||||||||||
Supply Chain Services | 17,138 | 17,138 | ||||||||||
Total | $ 188,110 | $ 145,788 | ||||||||||
The following table presents a summary of amortizable other intangible assets (in thousands): | ||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||
Gross | Carrying Amount, net | Gross | Carrying Amount, net | |||||||||
Carrying | Accumulated | Carrying | Accumulated | |||||||||
Amount | Amortization | Amount | Amortization | |||||||||
Vendor agreements | $ 2,496 | $ (1,205) | $ 1,291 | $ 2,496 | $ (1,081) | $ 1,415 | ||||||
Customer relationships | 109,897 | -42,468 | 67,429 | 90,851 | -30,010 | 60,841 | ||||||
Non-compete agreements | 1,739 | -737 | 1,002 | 1,541 | -608 | 933 | ||||||
Total | $114,132 | ($44,410) | $ 69,722 | $94,888 | ($31,699) | $ 63,189 | ||||||
Other intangible assets are generally amortized on a straight-line basis over their estimated useful lives. Amortization expense was $11.8 million, $10.9 million, and $6.6 million for the years ended December 31, 2013, 2012, and 2011, respectively. The estimated future annual amortization of intangible assets for each of the next five years and thereafter are as follows (in thousands): | ||||||||||||
2014 | 12,966 | |||||||||||
2015 | 11,532 | |||||||||||
2016 | 9,172 | |||||||||||
2017 | 9,089 | |||||||||||
2018 | 8,354 | |||||||||||
Thereafter | 18,609 | |||||||||||
The weighted average remaining estimated life for vendor agreements, customer relationships, and non-compete agreements are 11.9 years, 7.1 years, and 3.4 years, respectively. | ||||||||||||
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | |||
Dec. 31, 2013 | ||||
LONG-TERM DEBT [Abstract] | ' | |||
LONG-TERM DEBT | ' | |||
NOTE 8 – LONG-TERM DEBT | ||||
Long-term debt consisted of the following (in thousands): | ||||
December 31, | ||||
2013 | 2012 | |||
Line of credit | $76,849 | $104,526 | ||
Term loan | 109,375 | 130,000 | ||
Promissory note payable in monthly installments at 2.9% through January 2021, collateralized by equipment | 6,000 | - | ||
Unsecured subordinated notes payable in quarterly installments at 5% | 2,361 | 3,870 | ||
through November 2015 | ||||
194,585 | 238,396 | |||
Less: Current portion | -26,213 | -22,057 | ||
Total Long-term Debt | $168,372 | $216,339 | ||
On July 11, 2012 DXP entered into a credit facility with Wells Fargo Bank National Association, as Issuing Lender, Swingline Lender and Administrative Agent for the lenders. On December 31, 2012 the Company amended the agreement which increased the Credit Facility by $75 million (the “Facility”). At December 31, 2013, the Facility consisted of a $109.4 million term loan and a revolving credit facility that provided a $262.5 million line of credit. | ||||
The line of credit portion of the Facility provided the option of interest at LIBOR plus an applicable margin ranging from 1.25% to 2.25% or prime plus an applicable margin from 0.25% to 1.25% where the applicable margin is determined by the Company’s leverage ratio as defined by the Facility at the date of borrowing. Rates for the term loan component were 25 basis points higher than the line of credit borrowings. Commitment fees of 0.20% to 0.40% per annum were payable on the portion of the Facility capacity not in use at any given time on the line of credit. Commitment fees are included as interest in the consolidated statements of income. | ||||
Primarily because the leverage ratio was higher after the acquisition of HSE that occurred on July 11, 2012, interest rates in effect on July 11, 2012 were approximately 70 basis points higher than they were immediately prior to the acquisition. Approximately $0.7 million of debt issuance costs associated with the prior credit facility were expensed in 2012. | ||||
On December 31, 2013, the LIBOR based rate on the line of credit portion of the Facility was LIBOR plus 1.50%, the prime based rate of the Facility was prime plus 0.50%, the LIBOR based rate on the term loan portion of the Facility was LIBOR plus 1.75% and the commitment fee was 0.25%. At December 31, 2013, $186.2 million was borrowed under the Facility at a weighted average interest rate of approximately 1.8% under the LIBOR options. At December 31, 2013, the Company had $154.1 million available for borrowing under the Facility. | ||||
The Facility contains financial covenants defining various financial measures and levels of these measures with which the Company must comply. Covenant compliance is assessed as of each quarter end. Substantially all of the Company’s assets are pledged as collateral to secure to the credit facility. | ||||
At December 31, 2013, the Facility’s principal financial covenants included: | ||||
Consolidated Leverage Ratio – The Facility required that the Company’s Consolidated Leverage Ratio, determined at the end of each fiscal quarter, not exceed 3.5 to 1.0 as of the last day of each quarter from the closing date through March 31, 2015 and not to exceed 3.25 to 1.00 from June 30, 2015 and thereafter. The Consolidated Leverage Ratio is defined as the outstanding indebtedness divided by Consolidated EBITDA for the period of four consecutive fiscal quarters ending on or immediately prior to such date. Indebtedness is defined under the Facility for financial covenant purposes as: (a) all obligations of DXP for borrowed money including but not limited to obligations evidenced by bonds, debentures, notes or other similar instruments; (b) obligations to pay deferred purchase price of property or services; (c) capital lease obligations; (d) obligations under conditional sale or other title retention agreements relating to property purchased; (e) issued and outstanding letters of credit; and (f) contingent obligations for funded indebtedness. At December 31, 2013, the Company’s Leverage Ratio was 1.48 to 1.00. | ||||
Consolidated Fixed Charge Coverage Ratio –The Facility required that the Consolidated Fixed Charge Coverage Ratio on the last day of each quarter be not less than 1.25 to 1.0 with “Consolidated Fixed Charge Coverage Ratio” defined as the ratio of (a) Consolidated EBITDA for the period of 4 consecutive fiscal quarters ending on such date minus capital expenditures during such period (excluding acquisitions) minus income tax expense paid minus the aggregate amount of restricted payments defined in the agreement to (b) the interest expense paid in cash, scheduled principal payments in respect of long-term debt and the current portion of capital lease obligations for such 12-month period, determined in each case on a consolidated basis for DXP and its subsidiaries. At December 31, 2013, the Company's Consolidated Fixed Charge Coverage Ratio was 2.84 to 1.00. | ||||
Asset Coverage Ratio –The Facility required that the Asset Coverage Ratio at any time be not less than 1.0 to 1.0 with “Asset Coverage Ratio” defined as the ratio of (a) the sum of 85% of net accounts receivable plus 65% of net inventory to (b) the aggregate outstanding amount of the revolving credit outstandings on such date. At December 31, 2013, the Company's Asset Coverage Ratio was 2.99 to 1.00. | ||||
Consolidated EBITDA as defined under the Facility for financial covenant purposes means, without duplication, for any period the consolidated net income of DXP plus, to the extent deducted in calculating consolidated net income, depreciation, amortization (except to the extent that such non-cash charges are reserved for cash charges to be taken in the future), non-cash compensation including stock option or restricted stock expense, interest expense and income tax expense for taxes based on income, certain one-time costs associated with our acquisitions, integration costs, facility consolidation and closing costs, severance costs and expenses and one-time compensation costs in connection with the acquisition of HSE and any permitted acquisition, write-down of cash expenses incurred in connection with the existing credit agreement and extraordinary losses less interest income and extraordinary gains. Consolidated EBITDA shall be adjusted to give pro forma effect to disposals or business acquisitions assuming that such transaction(s) had occurred on the first day of the period excluding all income statement items attributable to the assets or equity interests that is subject to such disposition made during the period and including all income statement items attributable to property or equity interests of such acquisitions permitted under the Facility. | ||||
The following table sets forth the computation of the Leverage Ratio as of December 31, 2013 (in thousands, except for ratios): | ||||
For the Twelve Months ended | Leverage | |||
31-Dec-13 | Ratio | |||
Income before taxes | $94,717 | |||
Interest expense | 6,282 | |||
Depreciation and amortization | 21,660 | |||
Stock compensation expense | 2,832 | |||
Pro forma acquisition EBITDA | 6,612 | |||
Other adjustments | -351 | |||
(A) Defined EBITDA | $131,752 | |||
As of December 31, 2013 | ||||
Total long-term debt, including current maturities | $194,585 | |||
(B) Defined indebtedness | $194,585 | |||
Leverage Ratio (B)/(A) | 1.48 | |||
As of December 31, 2013, the maturities of long-term debt under the Company’s term loan for the next five years and thereafter were as follows (in thousands): | ||||
2014 | $ 26,213 | |||
2015 | 32,672 | |||
2016 | 35,204 | |||
2017 | 97,701 | |||
2018 | 879 | |||
Thereafter | 1,916 | |||
Subsequent to year end, the Company entered into an Amended and Restated Credit Agreement, further discussed in Note 18. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
INCOME TAXES [Abstract] | ' | |||||
INCOME TAXES | ' | |||||
NOTE 9 - INCOME TAXES | ||||||
The components of income before income taxes are as follows (in thousands): | ||||||
Years Ended December 31, | ||||||
2013 | 2012 | 2011 | ||||
Domestic | $86,567 | $84,349 | $51,995 | |||
Foreign | 8,150 | 660 | - | |||
Total income before taxes | $94,717 | $85,009 | $51,995 | |||
The provision for income taxes consists of the following (in thousands): | ||||||
Years Ended December 31, | ||||||
2013 | 2012 | 2011 | ||||
Current - | ||||||
Federal | $21,481 | $27,393 | $15,401 | |||
State | 2,681 | 4,438 | 2,731 | |||
Foreign | 7,484 | 963 | - | |||
31,646 | 32,794 | 18,132 | ||||
Deferred - | ||||||
Federal | 8,631 | 1,835 | 2,081 | |||
State | 167 | 146 | 345 | |||
Foreign | -5,964 | -751 | - | |||
2,834 | 1,230 | 2,426 | ||||
$34,480 | $34,024 | $20,558 | ||||
The difference between income taxes computed at the federal statutory income tax rate (35%) and the provision for income taxes is as follows (in thousands): | ||||||
Years Ended December 31, | ||||||
2013 | 2012 | 2011 | ||||
Income taxes computed at federal statutory rate | $33,150 | $29,753 | $18,198 | |||
State income taxes, net of federal benefit | 1,852 | 2,917 | 1,999 | |||
Other, primarily non-tax deductible, or non-taxable items | -522 | 1,354 | 361 | |||
$34,480 | $34,024 | $20,558 | ||||
The net current and noncurrent components of deferred income tax balances are as follows (in thousands): | ||||||
December 31, | ||||||
2013 | 2012 | |||||
Net current assets | $ 7,713 | $ 5,182 | ||||
Net non-current liabilities | (21,938) | (16,448) | ||||
Net assets (liabilities) | ($14,225) | ($11,266) | ||||
Deferred tax liabilities and assets were comprised of the following (in thousands): | ||||||
December 31, | ||||||
2013 | 2012 | |||||
Deferred tax assets: | ||||||
Allowance for doubtful accounts | $ 2,849 | $ 2,408 | ||||
Inventories | 2,514 | 1,803 | ||||
Accruals | 945 | 842 | ||||
Other | 1,401 | 342 | ||||
Total deferred tax assets | 7,709 | 5,395 | ||||
Less valuation allowance | - | - | ||||
Total deferred tax assets, net of valuation allowance | 7,709 | 5,395 | ||||
Deferred tax liabilities | ||||||
Goodwill | 1,159 | 2,270 | ||||
Intangibles | -10,707 | -9,232 | ||||
Property and equipment | -11,697 | -8,430 | ||||
Unremitted foreign earnings | -818 | -577 | ||||
Cumulative translation adjustment | 1,275 | -298 | ||||
Other | -1,146 | -394 | ||||
Net deferred tax asset (liability) | $ (14,225) | $ (11,266) | ||||
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended | |||
Dec. 31, 2013 | ||||
STOCK-BASED COMPENSATION [Abstract] | ' | |||
STOCK-BASED COMPENSATION | ' | |||
NOTE 10 - SHARE-BASED COMPENSATION | ||||
Restricted Stock | ||||
Under the restricted stock plan approved by our shareholders (the “Restricted Stock Plan”), directors, consultants and employees may be awarded shares of DXP’s common stock. The shares of restricted stock granted to employees and that are outstanding as of December 31, 2013 vest in accordance with one of the following vesting schedules: 100% one year after date of grant; 33.3% each year for three years after date of grant; 20% each year for five years after the grant date; or 10% each year for ten years after the grant date. The Restricted Stock Plan provides that on each July 1 during the term of the plan each non-employee director of DXP will be granted the number of whole shares calculated by dividing $75 thousand by the closing price of the common stock on such July 1. The shares of restricted stock granted to non-employee directors of DXP vest one year after the grant date. The fair value of restricted stock awards is measured based upon the closing prices of DXP’s common stock on the grant dates and is recognized as compensation expense over the vesting period of the awards. Once restricted stock vests, new shares of the Company’s stock are issued. | ||||
The following table provides certain information regarding the shares authorized and outstanding under the Restricted Stock Plan at December 31, 2013: | ||||
Number of shares authorized for grants | 800,000 | |||
Number of shares granted | -785,159 | |||
Number of shares forfeited | 108,909 | |||
Number of shares available for future grants | 123,750 | |||
Weighted-average grant price of granted shares | $23.49 | |||
Changes in restricted stock for the twelve months ended December 31, 2013 were as follows: | ||||
Number of | Weighted Average | |||
Shares | Grant Price | |||
Non-vested at December 31, 2012 | 210,654 | $26.85 | ||
Granted | 96,788 | $51.08 | ||
Forfeited | -28,911 | $37.15 | ||
Vested | -67,021 | $27.85 | ||
Non-vested at December 31, 2013 | 211,510 | $36.17 | ||
Compensation expense, associated with restricted stock, recognized in the years ended December 31, 2013, 2012 and 2011 was $2.8 million, $2.0 million, and $1.3 million, respectively. Related income tax benefits recognized in earnings in the years ended December 31, 2013, 2012, and 2011 were approximately $1.1 million, $0.8 million, and $0.5 million, respectively. Unrecognized compensation expense under the Restricted Stock Plan at December 31, 2013 and December 31, 2012 was $5.7 million and $4.6 million, respectively. As of December 31, 2013, the weighted average period over which the unrecognized compensation expense is expected to be recognized is 25.1 months. |
EARNINGS_PER_SHARE_DATA
EARNINGS PER SHARE DATA | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
EARNINGS PER SHARE DATA [Abstract] | ' | ||||||
EARNINGS PER SHARE DATA | ' | ||||||
NOTE 11 - EARNINGS PER SHARE DATA | |||||||
Basic earnings per share is computed based on weighted average shares outstanding and excludes dilutive securities. Diluted earnings per share is computed including the impacts of all potentially dilutive securities. | |||||||
The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data): | |||||||
December 31, | |||||||
2013 | 2012 | 2011 | |||||
Basic: | |||||||
Weighted average shares outstanding | 14,439 | 14,374 | 14,301 | ||||
Net income | $ 60,237 | $ 50,985 | $ 31,437 | ||||
Convertible preferred stock dividend | -90 | -90 | -90 | ||||
Net income attributable to common shareholders | |||||||
$ 60,147 | $ 50,895 | $ 31,347 | |||||
Per share amount | $ 4.17 | $ 3.54 | $ 2.19 | ||||
Diluted: | |||||||
Weighted average shares outstanding | 14,439 | 14,374 | 14,301 | ||||
Assumed conversion of convertible | 840 | 840 | 840 | ||||
preferred stock | |||||||
Total dilutive shares | 15,279 | 15,214 | 15,141 | ||||
Net income attributable to | $ 60,147 | $ 50,895 | $ 31,347 | ||||
common shareholders | |||||||
Convertible preferred stock dividend | 90 | 90 | 90 | ||||
Net income for diluted | $ 60,237 | $ 50,985 | $ 31,437 | ||||
earnings per share | |||||||
Per share amount | $ 3.94 | $ 3.35 | $ 2.08 | ||||
BUSINESS_ACQUISITIONS
BUSINESS ACQUISITIONS | 12 Months Ended | |||
Dec. 31, 2013 | ||||
BUSINESS ACQUISITIONS [Abstract] | ' | |||
BUSINESS ACQUISITIONS | ' | |||
NOTE 12 - BUSINESS ACQUISITIONS | ||||
All of the Company’s acquisitions have been accounted for using the purchase method of accounting. Revenues and expenses of the acquired businesses have been included in the accompanying consolidated financial statements beginning on their respective dates of acquisition. The allocation of purchase price to the acquired assets and liabilities is based on estimates of fair market value and may be prospectively revised if and when additional information the Company is awaiting concerning certain asset and liability valuations is obtained, provided that such information is received no later than one year after the date of acquisition. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. It specifically includes the expected synergies and other benefits that we believe will result from combining the operations of our acquisitions with the operations of DXP and any intangible assets that do not qualify for separate recognition such as the assembled workforce. | ||||
On January 31, 2012, DXP acquired substantially all of the assets of Mid-Continent Safety ("Mid-Continent"). DXP acquired this business to expand DXP's geographic presence in the Midwestern U.S. and strengthen DXP's safety products offering. DXP paid approximately $3.7 million for Mid-Continent, which was borrowed under our existing credit facility. Estimated goodwill of $1.1 million and intangible assets of $1.8 million were recognized for this acquisition. All of the estimated goodwill is included in the Service Centers segment. | ||||
On February 29, 2012, DXP acquired substantially all of the assets of Pump & Power Equipment, Inc. ("Pump & Power"). DXP acquired this business to expand DXP's geographic presence in the mid-western U.S. and strengthen DXP's municipal pump products and services offering. DXP paid approximately $1.9 million for Pump & Power which was borrowed under our existing credit facility. Estimated goodwill of $0.7 million and intangible assets of $0.8 million were recognized for this acquisition. All of the estimated goodwill is included in the Service Centers segment. | ||||
On April 2, 2012, DXP acquired the stock of Aledco, Inc. ("Aledco"). DXP acquired Aledco to expand its ability to service customers in the oil and gas, water and waste water treatment, pharmaceutical and industrial markets in and around Pennsylvania. DXP paid approximately $8.1 million for Aledco which was borrowed under our existing credit facility. Estimated goodwill of $3.4 million and intangible assets of $3.1 million were recognized for this acquisition. None of the estimated goodwill or intangible assets are expected to be tax deductible. All of the estimated goodwill is included in the Service Centers segment. | ||||
On May 1, 2012, DXP completed the acquisition of Industrial Paramedic Services through its wholly owned subsidiary, DXP Canada Enterprises Ltd. Industrial Paramedic Services is a provider of industrial medical and safety services to industrial customers operating in remote locations and large facilities in western Canada. DXP acquired this business to expand DXP's geographic presence into Canada and to expand our safety services offering. Industrial Paramedic Services is headquartered in Calgary, Alberta and operates out of three locations in Calgary, Nisku and Dawson Creek. The $25.3 million purchase price was financed with $20.6 million of borrowings under DXP's existing credit facility, $2.5 million of promissory notes bearing a 5% interest rate and 19,685 shares of DXP common stock. Estimated goodwill of $12.3 million and intangible assets of $9.9 million were recognized for this acquisition. None of the estimated goodwill or intangible assets are expected to be tax deductible. All of the estimated goodwill is included in the Service Centers segment. | ||||
On May 31, 2012, DXP acquired the stock of Austin and Denholm Industrial Sales Alberta, Inc. (“ADI”). DXP acquired this business to expand DXP's geographic presence in Western Canada and strengthen DXP's pump products and services offering. DXP paid approximately $2.7 million for ADI which was borrowed under our existing credit facility. Estimated goodwill of $0.3 million and intangible assets of $0.6 million were recognized for this acquisition. None of the estimated goodwill or intangibles are expected to be tax deductible. All of the estimated goodwill is included in the Service Centers segment. | ||||
On July 11, 2012, DXP completed the acquisition of HSE Integrated Ltd. (“HSE"). DXP Canada Enterprises Ltd., acquired all of the outstanding common shares of HSE by way of a plan of arrangement under the Business Corporations Act (Alberta) (the "Arrangement"). Pursuant to the Arrangement, HSE shareholders received CDN $1.80 in cash per each common share of HSE held. The total transaction value is approximately $85 million, including approximately $4 million in debt and approximately $3 million in transaction costs. The purchase price was financed with borrowings under DXP’s credit facility. DXP acquired HSE to expand our industrial health and safety services offering. Estimated goodwill of $27.9 million and intangible assets of $8.8 million were recognized for this acquisition. None of the estimated goodwill or intangible assets are expected to be tax deductible. All of the estimated goodwill is included in the Service Centers Segment. | ||||
On October 1, 2012, DXP acquired substantially all of the assets of Jerzy Supply, Inc. (“Jerzy”). DXP acquired this business to expand DXP's geographic presence in the Southern U.S. and strengthen DXP's industrial and hydraulic hoses offering. DXP paid approximately $5.3 million for Jerzy which was borrowed under our existing credit facility. Estimated goodwill of $0.6 million and intangible assets of $2.0 million were recognized for this acquisition. All of the estimated goodwill is included in the Service Centers Segment. | ||||
On April 16, 2013, DXP acquired all of the stock of National Process Equipment Inc. (“NatPro”) through its wholly owned subsidiary, DXP Canada Enterprises Ltd. DXP acquired this business to expand DXP’s geographic presence in Canada and strengthen DXP’s pump, integrated system packaging, compressor, and related equipment offering. The $40.1 million purchase price was financed with $36.6 million of borrowings under DXP's existing credit facility and 52,542 shares of DXP common stock. Additionally, the purchase agreement included an earn-out provision, which states that former owners of NatPro may earn $6.0 million based on achievement of an earnings target during the first year of DXP’s ownership. The fair value of the earn-out recorded at the acquisition date was $2.8 million. As of December 31, 2013, the Company’s earn-out liability was estimated to be zero and $2.8 million was recorded as a reduction of selling, general and administrative expense. Estimated goodwill of $24.6 million and intangible assets of $14.8 million were recognized for this acquisition. None of the estimated goodwill or intangible assets are expected to be tax deductible. The estimated goodwill associated with this acquisition is included in both the Service Centers segment and IPS segment. | ||||
On May 17, 2013, DXP acquired substantially all of the assets of Tucker Tool Company, Inc. (“Tucker Tool”). DXP acquired this business to expand DXP's geographic presence in the northern U.S. and strengthen DXP's industrial cutting tools offering. DXP paid approximately $5.0 million for Tucker Tool which was borrowed under our existing credit facility. Estimated goodwill of $3.2 and intangible assets of $1.5 million were recognized for this acquisition. All of the estimated goodwill is included in the Service Centers segment. | ||||
On July 1, 2103, DXP acquired all of the stock of Alaska Pump & Supply, Inc. (APS). DXP acquired this business to expand DXP's geographic presence in Alaska. DXP paid approximately $13.0 million for APS which was borrowed under our existing credit facility. Estimated goodwill of $8.1 million and intangible assets of $4.1 million were recognized for this acquisition. None of the estimated goodwill or intangible assets are expected to be tax deductible. All of the estimated goodwill is included in the Service Centers segment. | ||||
On July 31, 2013, DXP acquired substantially all of the assets of Tool-Tech Industrial Machine & Supply, Inc. (“Tool-Tech”). DXP acquired this business to enhance our metal working product offering in the southwest region of the United States. DXP paid approximately $7.2 million for Tool-Tech which was borrowed under our existing credit facility. Estimated goodwill of $4.1 million and intangible assets of $2.4 million were recognized for this acquisition. All of the estimated goodwill is included in the Service Centers segment. | ||||
The value as signed to the non-compete agreements and customer relationships for business acquisitions were determined by discounting the estimated cash flows associated with non-compete agreements and customer relationships as of the date the acquisition was consummated. The estimated cash flows were based on estimated revenues net of operating expenses and net of capital charges for assets that contribute to the projected cash flow from these assets. The projected revenues and operating expenses were estimated based on management estimates. Net capital charges for assets that contribute to projected cash flow were based on the estimated fair value of those assets. For the acquisitions discussed above, discount rates of 15.9% to 18.7% were deemed appropriate for valuing these assets and were based on the risks associated with the respective cash flows taking into consideration the acquired company’s weighted average cost of capital. | ||||
For the twelve months ended December 31, 2013, businesses acquired during 2012 and 2013 contributed sales of $162.7 million and $63.7 million, respectively, and earnings before taxes of approximately $7.2 million and $1.4 million, respectively. | ||||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed during 2012 and 2013 in connection with the acquisitions described above (in thousands): | ||||
Cash | $ 12,804 | |||
Accounts Receivable, net | 53,314 | |||
Inventory | 12,727 | |||
Property and equipment | 38,421 | |||
Goodwill and intangibles | 139,391 | |||
Other assets | 3,793 | |||
Assets acquired | 260,450 | |||
Current liabilities assumed | -49,482 | |||
Non-current liabilities assumed | -22,406 | |||
Net assets acquired | $ 188,562 | |||
The pro forma unaudited results of operations for the Company on a consolidated basis for the twelve months ended December 31, 2013 and 2012, assuming the acquisition of businesses completed in 2013 and 2012 were consummated as of January 1, 2012 are as follows (in thousands, except per share data): | ||||
Years Ended | ||||
December 31, | ||||
2013 | 2012 | |||
Net sales | $1,284,465 | $1,279,870 | ||
Net income | $ 61,929 | $ 55,309 | ||
Per share data | ||||
Basic earnings | $ 4.28 | $ 3.83 | ||
Diluted earnings | $ 4.05 | $ 3.62 | ||
The pro forma unaudited results of operations for the Company on a consolidated basis for the twelve months ended December 31, 2012 and 2011, assuming the acquisition of businesses completed in 2012 and 2011 were consummated as of January 1, 2011 are as follows (in thousands, except per share data): | ||||
Years Ended | ||||
December 31, | ||||
2012 | 2011 | |||
Net sales | $1,177,091 | $1,062,540 | ||
Net income | $ 54,033 | $ 41,359 | ||
Per share data | ||||
Basic earnings | $ 3.75 | $ 2.88 | ||
Diluted earnings | $ 3.55 | $ 2.72 |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |
Dec. 31, 2013 | ||
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | |
COMMITMENTS AND CONTINGENCIES | ' | |
NOTE 13 - COMMITMENTS AND CONTINGENCIES | ||
The Company leases equipment, automobiles and office facilities under various operating leases. The future minimum rental commitments as of December 31, 2013, for non-cancelable leases are as follows (in thousands): | ||
2014 | $24,733 | |
2015 | 19,825 | |
2016 | 15,057 | |
2017 | 10,526 | |
2018 | 5,025 | |
Thereafter | 2,931 | |
Rental expense for operating leases was $27.6 million, $21.6 million and $14.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||
The Company’s commitments related to long-term debt are discussed in Note 8. | ||
From time to time, the Company is a party to various legal proceedings arising in the ordinary course of business. While DXP is unable to predict the outcome of these lawsuits, it believes that the ultimate resolution will not have, either individually or in the aggregate, a material adverse effect on DXP’s consolidated financial position, cash flows, or results of operations. | ||
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2013 | |
EMPLOYEE BENEFIT PLANS [Abstract] | ' |
EMPLOYEE BENEFIT PLANS | ' |
NOTE 14 - EMPLOYEE BENEFIT PLANS | |
The Company offers a 401(K) plan which is eligible to substantially all employees. During 2013, 2012 and 2011, the Company elected to match employee contributions at a rate of 50 percent of up to 4 percent of salary deferral. The Company contributed $2.7 million, $1.9 million, and $1.5 million to the 401(K) plan in the years ended December 31, 2013, 2012, and 2011, respectively. |
OTHER_COMPREHENSIVE_INCOME
OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2013 | |
OTHER COMPREHENSIVE INCOME [Abstract] | ' |
OTHER COMPREHENSIVE INCOME | ' |
NOTE 15 - OTHER COMPREHENSIVE INCOME | |
Other comprehensive income generally represents all changes in shareholders’ equity during the period, except those resulting from investments by, or distributions to, shareholders. | |
During 2013, 2012, and 2011 the Company had net other comprehensive (loss) income of ($0.6) million, $0.4 million and $0.1 million, respectively, related to changes in the market value of an investment with quoted market prices in an active market for identical instruments. | |
During 2012 and 2013, the Company acquired four entities that operate in Canada. These Canadian entities maintain financial data in Canadian dollars. Upon consolidation, the Company translates the financial data from these foreign subsidiaries into U.S. dollars and records cumulative translation adjustments in other comprehensive income. The Company recorded ($3.0) million and $0.6 million in translation adjustments in other comprehensive income during the years ended December 31, 2013 and 2012, respectively. |
SEGMENT_AND_GEOGRAPHICAL_REPOR
SEGMENT AND GEOGRAPHICAL REPORTING | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
SEGMENT AND GEOGRAPHICAL REPORTING [Abstract] | ' | ||||||||
SEGMENT AND GEOGRAPHICAL REPORTING | ' | ||||||||
NOTE 16 – SEGMENT AND GEOGRAPHICAL REPORTING | |||||||||
The Company’s reportable business segments are: Service Centers, Innovative Pumping Solutions and Supply Chain Services. The Service Centers segment is engaged in providing maintenance, MRO products, equipment and integrated services, including logistics capabilities, to industrial customers. The Service Centers segment provides a wide range of MRO products in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, fastener, industrial supply, safety products and safety services categories. The Innovative Pumping Solutions segment fabricates and assembles custom-made pump packages. The Supply Chain Services segment manages all or part of a customer's supply chain, including warehouse and inventory management. | |||||||||
The high degree of integration of the Company’s operations necessitates the use of a substantial number of allocations and apportionments in the determination of business segment information. Sales are shown net of intersegment eliminations. | |||||||||
Business Segmented Financial Information | |||||||||
The following table sets out financial information relating the Company’s segments (in thousands): | |||||||||
Years Ended December 31, | Service | Innovative | Supply | Total | |||||
Centers | Pumping | Chain | |||||||
Solutions | Services | ||||||||
2013 | |||||||||
Sales | $884,821 | $209,175 | $147,514 | $1,241,510 | |||||
Operating income for reportable segments | 107,142 | 33,766 | 12,490 | 153,398 | |||||
Identifiable assets at year end | 500,978 | 66,007 | 48,049 | 615,034 | |||||
Capital expenditures | 6,321 | 357 | 206 | 6,884 | |||||
Depreciation | 7,770 | 446 | 366 | 8,582 | |||||
Amortization | 8,574 | 1,043 | 2,213 | 11,830 | |||||
Interest expense | 3,762 | 1,636 | 884 | 6,282 | |||||
2012 | |||||||||
Sales | $779,038 | $161,834 | $156,238 | $1,097,110 | |||||
Operating income for reportable segments | 88,924 | 32,099 | 12,495 | 133,518 | |||||
Identifiable assets at year end | 440,271 | 56,982 | 50,515 | 547,768 | |||||
Capital expenditures | 4,829 | 261 | - | 5,090 | |||||
Depreciation | 5,734 | 306 | 175 | 6,215 | |||||
Amortization | 8,795 | 663 | 1,428 | 10,886 | |||||
Interest expense | 3,701 | 1,243 | 616 | 5,560 | |||||
2011 | |||||||||
Sales | $560,233 | $102,305 | $144,467 | $807,005 | |||||
Operating income for reportable segments | 64,491 | 16,920 | 8,455 | 89,866 | |||||
Identifiable assets at year end | 294,410 | 43,636 | 56,058 | 394,104 | |||||
Capital expenditures | 1,258 | 310 | 73 | 1,641 | |||||
Depreciation | 2,090 | 326 | 276 | 2,692 | |||||
Amortization | 4,725 | 675 | 1,172 | 6,572 | |||||
Interest expense | 2,073 | 986 | 459 | 3,518 | |||||
Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Operating income for reportable segments | $153,398 | $133,518 | $89,866 | ||||||
Adjustments for: | |||||||||
Amortization of intangibles | 11,830 | 10,886 | 6,572 | ||||||
Corporate and other expense, net | 40,644 | 32,110 | 27,809 | ||||||
Total operating income | 100,924 | 90,522 | 55,485 | ||||||
Interest expense | 6,282 | 5,560 | 3,518 | ||||||
Other expenses (income), net | -75 | -47 | -28 | ||||||
Income before income taxes | $94,717 | $85,009 | $51,995 | ||||||
The Company had capital expenditures at Corporate of $0.9 million, $9.0 million, and $2.5 million for the years ended December 31, 2013, 2012, and 2011, respectively. The Company had identifiable assets at Corporate of $20.3 million, $22.0 million, and $11.2 million as of December 31, 2013, 2012, and 2011, respectively. Corporate depreciation was $1.2 million, $1.0 million, and $0.8 million for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||
Geographical Information | |||||||||
Revenues are presented in geographic area based on location of the facility shipping products or providing services. Long-lived assets are based on physical locations and are comprised of the net book value of property. | |||||||||
The Company’s revenues and property and equipment by geographical location are as follow (in thousands): | |||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Revenues | |||||||||
United States | $1,075,962 | $1,039,712 | $807,005 | ||||||
Canada | 165,548 | 57,398 | - | ||||||
Total | $1,241,510 | $1,097,110 | $807,005 | ||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Property and Equipment, net | |||||||||
United States | $32,878 | $31,334 | |||||||
Canada | 25,375 | 27,379 | |||||||
Total | $58,253 | $58,713 |
QUARTERLY_FINANCIAL_INFORMATIO
QUARTERLY FINANCIAL INFORMATION (Unaudited) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
QUARTERLY FINANCIAL INFORMATION (Unaudited) [Abstract] | ' | ||||
QUARTERLY FINANCIAL INFORMATION (Unaudited) | ' | ||||
NOTE 17 - QUARTERLY FINANCIAL INFORMATION (unaudited) | |||||
Summarized quarterly financial information for the years ended December 31, 2013, 2012 and 2011 is as follows (in millions, except per share data): | |||||
First | Second | Third | Fourth | ||
Quarter | Quarter | Quarter | Quarter | ||
2013 | |||||
Sales | $290.10 | $307.90 | $329.70 | $313.80 | |
Gross profit | 89.1 | 91.5 | 97.1 | 94.6 | |
Net income | 13.2 | 13.7 | 16.4 | 16.9 | |
Earnings per share - basic | $0.92 | $0.95 | $1.13 | $1.17 | |
Earnings per share - diluted | $0.87 | $0.90 | $1.07 | $1.10 | |
2012 | |||||
Sales | $252.30 | $261.90 | $289.90 | $293.00 | |
Gross profit | 71.5 | 76.6 | 83.5 | 87.5 | |
Net income | 11.6 | 12.2 | 13.1 | 14.1 | |
Earnings per share - basic | $0.81 | $0.84 | $0.91 | $0.98 | |
Earnings per share - diluted | $0.77 | $0.80 | $0.86 | $0.92 | |
2011 | |||||
Sales | $183.10 | $197.70 | $207.90 | $218.30 | |
Gross profit | 52.4 | 57.3 | 59.5 | 62.6 | |
Net income | 6.3 | 7.6 | 8.3 | 9.2 | |
Earnings per share - basic | $0.44 | $0.53 | $0.58 | $0.64 | |
Earnings per share - diluted | $0.42 | $0.50 | $0.55 | $0.61 | |
The sum of the individual quarterly earnings per share amounts may not agree with year-to-date earnings per share as each quarter’s computation is based on the weighted average number of shares outstanding during the quarter, the weighted average stock price during the quarter and the dilutive effects of the stock options and restricted stock in each quarter. | |||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended | |||
Dec. 31, 2013 | ||||
SUBSEQUENT EVENTS [Abstract] | ' | |||
SUBSEQUENT EVENTS | ' | |||
NOTE 18 – SUBSEQUENT EVENTS | ||||
On January 2, 2014, the Company completed the acquisition of all of the equity securities and units of B27, LLC (“B27”) by way of a Securities Purchase Agreement to expand DXP’s pump packaging offering. The total transaction value was approximately $293.6 million, excluding approximately $1.0 million in transaction costs recognized within SG&A in the 2013 statement of income. The purchase price was financed with borrowings under DXP’s amended credit facility and approximately $4.0 million of DXP common stock. | ||||
DXP has not completed appraisals of intangibles for B27, and therefore, has made preliminary estimates for purposes of this disclosure. Estimated goodwill of $227.3 million and intangible assets of $66.3 million were recognized for this acquisition. Approximately $235.0 million of the estimated goodwill or intangible assets are expected not to be tax deductible. The estimated goodwill associated with this acquisition will be included in the IPS segment. | ||||
The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed in the acquisition of B27 (in thousands): | ||||
Cash | $ 2,538 | |||
Accounts Receivable, net | 51,448 | |||
Inventory | 6,472 | |||
Property and equipment | 14,573 | |||
Goodwill and intangibles | 293,588 | |||
Other assets | 948 | |||
Assets acquired | 369,567 | |||
Current liabilities assumed | -52,818 | |||
Non-current liabilities assumed | -23,198 | |||
Net assets acquired | $ 293,551 | |||
The pro forma unaudited results of operations for the Company on a consolidated basis for the twelve months ended December 31, 2013 and 2012, assuming the acquisition of B27 was consummated as of January 1, 2012 are as follows (in thousands, except per share data): | ||||
Years Ended | ||||
December 31, | ||||
2013 | 2012 | |||
Net sales | $1,415,123 | $1,239,006 | ||
Net income | $ 67,759 | $ 53,453 | ||
Per share data | ||||
Basic earnings | $ 4.67 | $ 3.70 | ||
Diluted earnings | $ 4.42 | $ 3.51 | ||
In connection with the closing of this acquisition, on January 2, 2014, the Company entered into an Amended and Restated Credit Agreement with Wells Fargo Bank, National Association, as Issuing Lender, and Administrative Agent for other lenders (the “New Facility”), amending the Company’s existing credit facility initially entered into on July 11, 2012 and amended on December 31, 2012. | ||||
The New Facility provides a $250 million term loan and a $350 million revolving line of credit facility to the Company. The New Facility provides the option of interest at LIBOR (or CDOR for Canadian dollar loans) plus an applicable margin ranging from 1.25% to 2.50% or prime (or Canadian prime for Canadian dollar loans) plus an applicable margin from 0.25% to 1.50% where the applicable margin is determined by the Company’s leverage ratio as defined by the New Facility as of the last day of the fiscal quarter most recently ended prior to the date of borrowing. Commitment fees of 0.20% to 0.45% per annum will be payable on the portion of the New Facility capacity not in use at any given time on the line of credit. | ||||
The Company incurred approximately $2.0 million in debt issuance costs related to the New Facility. The New Facility will expire five years after the closing date of the New Facility. | ||||
We have evaluated subsequent events through the date the consolidated financial statements were filed with the Securities and Exchange Commission. There were no additional subsequent events that required recognition for disclosure. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS [Abstract] | ' | |||||||||
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | ' | |||||||||
SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS | ||||||||||
DXP ENTERPRISES, INC. | ||||||||||
Years Ended December 31, 2013, 2012 and 2011 | ||||||||||
(in thousands) | ||||||||||
Balance at | Charged to | Charged to | Balance | |||||||
Beginning | Cost and | Other | At End | |||||||
Description | of Year | Expenses | Accounts | Deductions | of Year | |||||
Year ended December 31, 2013 | ||||||||||
Deducted from assets accounts | ||||||||||
Allowance for doubtful accounts | $ 7,204 | $ 2,018 | $ 560 | $ (984)1 | $ 8,798 | |||||
Year ended December 31, 2012 | ||||||||||
Deducted from assets accounts | ||||||||||
Allowance for doubtful accounts | $ 6,202 | $ 1,283 | $ 454 | $ (735)1 | $ 7,204 | |||||
Year ended December 31, 2011 | ||||||||||
Deducted from assets accounts | ||||||||||
Allowance for doubtful accounts | $ 3,540 | $ 3,101 | $ 193 | $ (632)1 | $ 6,202 | |||||
(1) Uncollectible accounts written off, net of recoveries. | ||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES [Abstract] | ' | |
Basis of Presentation | ' | |
Basis of Presentation | ||
The Company’s financial statements are prepared in accordance with the accounting principles generally accepted in the United States of America (“USGAAP”). The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. | ||
All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation; none affected net income. | ||
Foreign Currency | ' | |
Foreign Currency | ||
The financial statements of the Company’s Canadian subsidiaries are measured using local currencies as their functional currencies. Assets and liabilities are translated into U.S. dollars at current exchange rates, while income and expenses are translated at average exchange rates. Translation gains and losses are reported in other comprehensive income (loss) in the statements of consolidated comprehensive income. | ||
Use of Estimates | ' | |
Use of Estimates | ||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In the opinion of management, all adjustments necessary in order to make the financial statements not misleading have been included. Actual results could differ from those estimates. | ||
Cash and Cash Equivalents | ' | |
Cash and Cash Equivalents | ||
The Company’s presentation of cash includes cash equivalents. Cash equivalents are defined as short-term investments with maturity dates of 90 days or less at time of purchase. | ||
Receivables and Credit Risk | ' | |
Receivables and Credit Risk | ||
Trade receivables consist primarily of uncollateralized customer obligations due under normal trade terms, which usually require payment within 30 days of the invoice date. However, these payment terms are extended in select cases and many customers do not pay within stated trade terms. | ||
The Company has trade receivables from a diversified customer base located primarily in the Rocky Mountain, Northeastern, Midwestern, Southeastern and Southwestern regions of the United States, and Canada. The Company believes no significant concentration of credit risk exists. The Company evaluates the creditworthiness of its customers' financial positions and monitors accounts on a regular basis, but generally does not require collateral. Provisions to the allowance for doubtful accounts are made monthly and adjustments are made periodically (as circumstances warrant) based upon management’s best estimate of the collectability of all such accounts. The Company writes-off uncollectible trade accounts receivable when the accounts are determined to be uncollectible. No customer represents more than 10% of consolidated sales. | ||
Fair Value of Financial Instruments | ' | |
Fair Value of Financial Instruments | ||
The Company is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. USGAAP establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. USGAAP prioritizes the inputs into three levels that may be used to measure fair value: | ||
Level 1 | ||
Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | ||
Level 2 | ||
Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | ||
Level 3 | ||
Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | ||
See Note 4 for further information regarding the Company’s financial instruments. | ||
Inventories | ' | |
Inventories | ||
Inventories consist principally of finished goods and are priced at lower of cost or market, cost being determined using the first-in, first-out (“FIFO”) method. Reserves are provided against inventories for estimated obsolescence based upon the aging of the inventories and market trends. | ||
Property and Equipment | ' | |
Property and Equipment | ||
Property and equipment are carried on the basis of cost. Expenditures for major additions and betterments are capitalized. Depreciation of property and equipment is computed using the straight-line method over their estimated useful lives. Maintenance and repairs of depreciable assets are charged against earnings as incurred. Additions and improvements are capitalized. When properties are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and gains or losses are credited or charged to earnings. | ||
The principal estimated useful lives used in determining depreciation are as follows: | ||
Buildings | 20-39 years | |
Building improvements | 10-20 years | |
Furniture, fixtures and equipment | 3-20 years | |
Leasehold improvements | Shorter of estimated useful life or related lease term | |
Impairment of Goodwill and Other Intangible Assets | ' | |
Impairment of Goodwill and Other Intangible Assets | ||
The Company tests goodwill and other indefinite lived intangible assets for impairment on an annual basis and when events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company assigns the carrying value of these intangible assets to its "reporting units" and applies the test for goodwill at the reporting unit level. A reporting unit is defined as an operating segment or one level below a segment (a "component") if the component is a business and discrete information is prepared and reviewed regularly by segment management. | ||
The Company’s goodwill impairment assessment first requires evaluating qualitative factors to determine if a reporting unit's carrying value would more likely than not exceed its fair value. If the Company concludes, based on the qualitative assessment, that a reporting unit's carrying value would more likely than not exceed its fair value, the Company would perform a two-step quantitative test for that reporting unit. When a quantitative assessment is performed, the first step is to identify a potential impairment, and the second step measures the amount of the impairment loss, if any. Goodwill is deemed to be impaired if the carrying amount of a reporting unit’s goodwill exceeds its estimated fair value. No impairment of goodwill was required in 2013, 2012 or 2011. | ||
Impairment of Long-Lived Assets, Excluding Goodwill | ' | |
Impairment of Long-Lived Assets, Excluding Goodwill | ||
The Company tests long-lived assets or asset groups for recoverability on an annual basis and when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value. | ||
Stock-Based Compensation | ' | |
Stock-based Compensation | ||
The Company uses restricted stock for share-based compensation programs. The Company measures compensation cost with respect to equity instruments granted as stock-based payments to employees based upon the estimated fair value of the equity instruments at the date of the grant. The cost as measured is recognized as expense over the period which an employee is required to provide services in exchange for the award. | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
For binding agreements to fabricate tangible assets to customer specifications, the Company recognizes revenues using the percentage of completion method. Under this method, revenues are recognized as costs are incurred and include estimated profits calculated on the basis of the relationship between costs incurred and total estimated costs at completion. If at any time expected costs exceed the value of the contract, the loss is recognized immediately. Revenues of approximately $12.7 million, $15.9 million, and $9.8 million were recognized on contracts in process for the years ended December 31, 2013, 2012, and 2011, respectively. The typical time span of these contracts is approximately one to two years. At December 31, 2013 and 2012, $5.1 million and $8.5 million, respectively, of unbilled costs and estimated earnings are included in accounts receivable. | ||
For other sales, the Company recognizes revenues when an agreement is in place, the price is fixed, title for product passes to the customer or services have been provided and collectability is reasonably assured. Revenues are recorded net of sales taxes. | ||
The Company reserves for potential customer returns based upon the historical level of returns. | ||
Shipping and Handling Costs | ' | |
Shipping and Handling Costs | ||
The Company classifies shipping and handling charges billed to customers as sales. Shipping and handling charges paid to others are classified as a component of cost of sales. | ||
Self-insured Insurance and Medical Claims | ' | |
Self-insured Insurance and Medical Claims | ||
We generally retain up to $100,000 of risk for each claim for workers compensation, general liability, automobile and property loss. We accrue for the estimated loss on the self-insured portion of these claims. The accrual is adjusted quarterly based upon reported claims information. The actual cost could deviate from the recorded estimate. | ||
We generally retain up to $250,000 of risk on each medical claim for our employees and their dependents. We accrue for the estimated outstanding balance of unpaid medical claims for our employees and their dependents. The accrual is adjusted monthly based on recent claims experience. The actual claims could deviate from recent claims experience and be materially different from the reserve. | ||
The accrual for these claims at December 31, 2013 and 2012 was approximately $2.1 million and $1.8 million, respectively. | ||
Purchase accounting | ' | |
Purchase Accounting | ||
DXP estimates the fair value of assets, including property, machinery and equipment and their related useful lives and salvage values, intangibles and liabilities when allocating the purchase price of an acquisition. The fair value estimates are developed using the best information available. Third party valuation specialists assist in valuing the Company’s significant acquisitions. | ||
Cost of Sales and Selling, General and Administrative Expense | ' | |
Cost of Sales and Selling, General and Administrative Expense | ||
Cost of sales includes product and product related costs, inbound freight charges, internal transfer costs and depreciation. Selling, general and administrative expense includes purchasing and receiving costs, inspection costs, warehousing costs, depreciation and amortization. DXP’s gross margins may not be comparable to those of other entities, since some entities include all of the costs related to their distribution network in cost of sales and others like DXP exclude a portion of these costs from gross margin, including the costs in a line item, such as selling, general and administrative expense. | ||
Income Taxes | ' | |
Income Taxes | ||
The Company utilizes the asset and liability method of accounting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and income tax bases of assets and liabilities. Such deferred income tax asset and liability computations are based on enacted tax laws and rates applicable to periods in which the differences are expected to reverse. Valuation allowances are established to reduce deferred income tax assets to the amounts expected to be realized. | ||
Comprehensive Income | ' | |
Comprehensive Income | ||
Comprehensive income includes net income, foreign currency translation adjustments, unrecognized gains (losses) on postretirement and other employment-related plans, changes in fair value of certain derivatives, and unrealized gains and losses on certain investments in debt and equity securities. The Company’s other comprehensive (loss) income is comprised of changes in the market value of an investment with quoted market prices in an active market for identical instruments and translation adjustments from translating foreign subsidiaries to the reporting currency. | ||
Accounting for Uncertainty in Income Taxes | ' | |
Accounting for Uncertainty in Income Taxes | ||
In July 2006, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which requires that a position taken or expected to be taken in a tax return be recognized in the financial statements when it is more likely than not (i.e. a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states. With few exceptions, the Company is no longer subject to U. S. federal, state and local tax examination by tax authorities for years prior to 2007. The Company's policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as operating expenses. The Company believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES (Tables) | 12 Months Ended | |
Dec. 31, 2013 | ||
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES [Abstract] | ' | |
Principal Estimated Useful Lives Used in Determining Depreciation | ' | |
The principal estimated useful lives used in determining depreciation are as follows: | ||
Buildings | 20-39 years | |
Building improvements | 10-20 years | |
Furniture, fixtures and equipment | 3-20 years | |
Leasehold improvements | Shorter of estimated useful life or related lease term |
FAIR_VALUE_OF_FINANCIAL_ASSETS1
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES [Abstract] | ' | |||
Changes in Level 1 Assets | ' | |||
The following table presents the changes in Level 1 assets for the period indicated (in thousands): | ||||
Years Ended December 31, | ||||
2013 | 2012 | |||
Fair value at beginning of period | $ 2,413 | $ 1,679 | ||
Investment during period | 68 | 105 | ||
Realized and unrealized gains (losses) | -644 | 629 | ||
included in other comprehensive income | ||||
Fair value at end of period | $ 1,837 | $ 2,413 |
INVENTORY_Tables
INVENTORY (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
INVENTORY [Abstract] | ' | |||
Carrying Values of Inventories | ' | |||
The carrying values of inventories are as follows (in thousands): | ||||
December 31, | December 31, | |||
2013 | 2012 | |||
Finished goods | $ 102,608 | $ 97,679 | ||
Work in process | 6,657 | 7,470 | ||
Inventory reserve | -3,994 | -3,727 | ||
Inventories | $ 105,271 | $ 101,422 |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
PROPERTY AND EQUIPMENT [Abstract] | ' | |||
Property and equipment | ' | |||
The carrying values of property and equipment are as follows (in thousands): | ||||
December 31, | December 31, | |||
2013 | 2012 | |||
Land | $ 2,137 | $ 1,861 | ||
Buildings and leasehold improvements | 9,565 | 7,378 | ||
Furniture, fixtures and equipment | 79,633 | 72,219 | ||
Less – Accumulated depreciation | -33,082 | -22,745 | ||
Total Property and Equipment | $ 58,253 | $ 58,713 |
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | ' | |||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||
The following table presents the changes in the carrying amount of goodwill and other intangible assets during the year ended December 31, 2013 (in thousands): | ||||||||||||
Goodwill | Other | Total | ||||||||||
Intangible Assets | ||||||||||||
Balance as of December 31, 2012 | $145,788 | $63,189 | $208,977 | |||||||||
Acquired during the period | 39,898 | 22,033 | 61,931 | |||||||||
Adjustments to prior period estimates | 2,424 | -2,424 | - | |||||||||
Translation adjustment | - | -1,246 | -1,246 | |||||||||
Amortization | - | -11,830 | -11,830 | |||||||||
Balance as of December 31, 2013 | $188,110 | $69,722 | $257,832 | |||||||||
The following table presents the changes in the carrying amount of goodwill and other intangible assets during the year ended December 31, 2012 (in thousands): | ||||||||||||
Other | Total | |||||||||||
Goodwill | Intangible Assets | |||||||||||
Balance as of December 31, 2011 | $ 101,764 | $43,194 | $144,958 | |||||||||
Acquired during the year | 44,074 | 30,643 | 74,717 | |||||||||
Adjustments to prior year estimates | -50 | 50 | - | |||||||||
Translation adjustment | - | 188 | 188 | |||||||||
Amortization | - | -10,886 | -10,886 | |||||||||
Balance as of December 31, 2012 | $145,788 | $63,189 | $208,977 | |||||||||
Goodwill balance by reportable segment | ' | |||||||||||
The following table presents goodwill balance by reportable segment as of December 31, 2013 and 2012 (in thousands): | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Service Centers | $ 142,714 | $ 112,670 | ||||||||||
Innovative Pumping Solutions | 28,258 | 15,980 | ||||||||||
Supply Chain Services | 17,138 | 17,138 | ||||||||||
Total | $ 188,110 | $ 145,788 | ||||||||||
Amortizable Other Intangible Assets | ' | |||||||||||
The following table presents a summary of amortizable other intangible assets (in thousands): | ||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||
Gross | Carrying Amount, net | Gross | Carrying Amount, net | |||||||||
Carrying | Accumulated | Carrying | Accumulated | |||||||||
Amount | Amortization | Amount | Amortization | |||||||||
Vendor agreements | $ 2,496 | $ (1,205) | $ 1,291 | $ 2,496 | $ (1,081) | $ 1,415 | ||||||
Customer relationships | 109,897 | -42,468 | 67,429 | 90,851 | -30,010 | 60,841 | ||||||
Non-compete agreements | 1,739 | -737 | 1,002 | 1,541 | -608 | 933 | ||||||
Total | $114,132 | ($44,410) | $ 69,722 | $94,888 | ($31,699) | $ 63,189 | ||||||
Estimated future annual amortization of intangible assets | ' | |||||||||||
The estimated future annual amortization of intangible assets for each of the next five years and thereafter are as follows (in thousands): | ||||||||||||
2014 | 12,966 | |||||||||||
2015 | 11,532 | |||||||||||
2016 | 9,172 | |||||||||||
2017 | 9,089 | |||||||||||
2018 | 8,354 | |||||||||||
Thereafter | 18,609 |
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
LONG-TERM DEBT [Abstract] | ' | |||
Long term debt | ' | |||
Long-term debt consisted of the following (in thousands): | ||||
December 31, | ||||
2013 | 2012 | |||
Line of credit | $76,849 | $104,526 | ||
Term loan | 109,375 | 130,000 | ||
Promissory note payable in monthly installments at 2.9% through January 2021, collateralized by equipment | 6,000 | - | ||
Unsecured subordinated notes payable in quarterly installments at 5% | 2,361 | 3,870 | ||
through November 2015 | ||||
194,585 | 238,396 | |||
Less: Current portion | -26,213 | -22,057 | ||
Total Long-term Debt | $168,372 | $216,339 | ||
Computation of the Leverage Ratio | ' | |||
The following table sets forth the computation of the Leverage Ratio as of December 31, 2013 (in thousands, except for ratios): | ||||
For the Twelve Months ended | Leverage | |||
31-Dec-13 | Ratio | |||
Income before taxes | $94,717 | |||
Interest expense | 6,282 | |||
Depreciation and amortization | 21,660 | |||
Stock compensation expense | 2,832 | |||
Pro forma acquisition EBITDA | 6,612 | |||
Other adjustments | -351 | |||
(A) Defined EBITDA | $131,752 | |||
As of December 31, 2013 | ||||
Total long-term debt, including current maturities | $194,585 | |||
(B) Defined indebtedness | $194,585 | |||
Leverage Ratio (B)/(A) | 1.48 | |||
Maturities of long-term debt | ' | |||
As of December 31, 2013, the maturities of long-term debt under the Company’s term loan for the next five years and thereafter were as follows (in thousands): | ||||
2014 | $ 26,213 | |||
2015 | 32,672 | |||
2016 | 35,204 | |||
2017 | 97,701 | |||
2018 | 879 | |||
Thereafter | 1,916 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
INCOME TAXES [Abstract] | ' | |||||
Income before income taxes | ' | |||||
The components of income before income taxes are as follows (in thousands): | ||||||
Years Ended December 31, | ||||||
2013 | 2012 | 2011 | ||||
Domestic | $86,567 | $84,349 | $51,995 | |||
Foreign | 8,150 | 660 | - | |||
Total income before taxes | $94,717 | $85,009 | $51,995 | |||
Provision for income taxes | ' | |||||
The provision for income taxes consists of the following (in thousands): | ||||||
Years Ended December 31, | ||||||
2013 | 2012 | 2011 | ||||
Current - | ||||||
Federal | $21,481 | $27,393 | $15,401 | |||
State | 2,681 | 4,438 | 2,731 | |||
Foreign | 7,484 | 963 | - | |||
31,646 | 32,794 | 18,132 | ||||
Deferred - | ||||||
Federal | 8,631 | 1,835 | 2,081 | |||
State | 167 | 146 | 345 | |||
Foreign | -5,964 | -751 | - | |||
2,834 | 1,230 | 2,426 | ||||
$34,480 | $34,024 | $20,558 | ||||
The difference between income taxes computed at the federal statutory income tax rate and the provision for income taxes | ' | |||||
The difference between income taxes computed at the federal statutory income tax rate (35%) and the provision for income taxes is as follows (in thousands): | ||||||
Years Ended December 31, | ||||||
2013 | 2012 | 2011 | ||||
Income taxes computed at federal statutory rate | $33,150 | $29,753 | $18,198 | |||
State income taxes, net of federal benefit | 1,852 | 2,917 | 1,999 | |||
Other, primarily non-tax deductible, or non-taxable items | -522 | 1,354 | 361 | |||
$34,480 | $34,024 | $20,558 | ||||
The net current and noncurrent components of deferred income tax balances | ' | |||||
The net current and noncurrent components of deferred income tax balances are as follows (in thousands): | ||||||
December 31, | ||||||
2013 | 2012 | |||||
Net current assets | $ 7,713 | $ 5,182 | ||||
Net non-current liabilities | (21,938) | (16,448) | ||||
Net assets (liabilities) | ($14,225) | ($11,266) | ||||
Deferred tax liabilities and assets were comprised of the following (in thousands): | ||||||
December 31, | ||||||
2013 | 2012 | |||||
Deferred tax assets: | ||||||
Allowance for doubtful accounts | $ 2,849 | $ 2,408 | ||||
Inventories | 2,514 | 1,803 | ||||
Accruals | 945 | 842 | ||||
Other | 1,401 | 342 | ||||
Total deferred tax assets | 7,709 | 5,395 | ||||
Less valuation allowance | - | - | ||||
Total deferred tax assets, net of valuation allowance | 7,709 | 5,395 | ||||
Deferred tax liabilities | ||||||
Goodwill | 1,159 | 2,270 | ||||
Intangibles | -10,707 | -9,232 | ||||
Property and equipment | -11,697 | -8,430 | ||||
Unremitted foreign earnings | -818 | -577 | ||||
Cumulative translation adjustment | 1,275 | -298 | ||||
Other | -1,146 | -394 | ||||
Net deferred tax asset (liability) | $ (14,225) | $ (11,266) | ||||
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
STOCK-BASED COMPENSATION [Abstract] | ' | |||
Employee and Non-employee Restricted Stock Plan | ' | |||
The following table provides certain information regarding the shares authorized and outstanding under the Restricted Stock Plan at December 31, 2013: | ||||
Number of shares authorized for grants | 800,000 | |||
Number of shares granted | -785,159 | |||
Number of shares forfeited | 108,909 | |||
Number of shares available for future grants | 123,750 | |||
Weighted-average grant price of granted shares | $23.49 | |||
Changes in Non-vested Restricted Stock | ' | |||
Changes in restricted stock for the twelve months ended December 31, 2013 were as follows: | ||||
Number of | Weighted Average | |||
Shares | Grant Price | |||
Non-vested at December 31, 2012 | 210,654 | $26.85 | ||
Granted | 96,788 | $51.08 | ||
Forfeited | -28,911 | $37.15 | ||
Vested | -67,021 | $27.85 | ||
Non-vested at December 31, 2013 | 211,510 | $36.17 |
EARNINGS_PER_SHARE_DATA_Tables
EARNINGS PER SHARE DATA (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
EARNINGS PER SHARE DATA [Abstract] | ' | ||||||
Computation of Basic and Diluted Earnings per Share | ' | ||||||
The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data): | |||||||
December 31, | |||||||
2013 | 2012 | 2011 | |||||
Basic: | |||||||
Weighted average shares outstanding | 14,439 | 14,374 | 14,301 | ||||
Net income | $ 60,237 | $ 50,985 | $ 31,437 | ||||
Convertible preferred stock dividend | -90 | -90 | -90 | ||||
Net income attributable to common shareholders | |||||||
$ 60,147 | $ 50,895 | $ 31,347 | |||||
Per share amount | $ 4.17 | $ 3.54 | $ 2.19 | ||||
Diluted: | |||||||
Weighted average shares outstanding | 14,439 | 14,374 | 14,301 | ||||
Assumed conversion of convertible | 840 | 840 | 840 | ||||
preferred stock | |||||||
Total dilutive shares | 15,279 | 15,214 | 15,141 | ||||
Net income attributable to | $ 60,147 | $ 50,895 | $ 31,347 | ||||
common shareholders | |||||||
Convertible preferred stock dividend | 90 | 90 | 90 | ||||
Net income for diluted | $ 60,237 | $ 50,985 | $ 31,437 | ||||
earnings per share | |||||||
Per share amount | $ 3.94 | $ 3.35 | $ 2.08 | ||||
BUSINESS_ACQUISITIONS_Tables
BUSINESS ACQUISITIONS (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
BUSINESS ACQUISITIONS [Abstract] | ' | |||
Estimated fair values of assets acquired and liabilities assumed | ' | |||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed during 2012 and 2013 in connection with the acquisitions described above (in thousands): | ||||
Cash | $ 12,804 | |||
Accounts Receivable, net | 53,314 | |||
Inventory | 12,727 | |||
Property and equipment | 38,421 | |||
Goodwill and intangibles | 139,391 | |||
Other assets | 3,793 | |||
Assets acquired | 260,450 | |||
Current liabilities assumed | -49,482 | |||
Non-current liabilities assumed | -22,406 | |||
Net assets acquired | $ 188,562 | |||
Pro forma unaudited results of operations | ' | |||
The pro forma unaudited results of operations for the Company on a consolidated basis for the twelve months ended December 31, 2013 and 2012, assuming the acquisition of businesses completed in 2013 and 2012 were consummated as of January 1, 2012 are as follows (in thousands, except per share data): | ||||
Years Ended | ||||
December 31, | ||||
2013 | 2012 | |||
Net sales | $1,284,465 | $1,279,870 | ||
Net income | $ 61,929 | $ 55,309 | ||
Per share data | ||||
Basic earnings | $ 4.28 | $ 3.83 | ||
Diluted earnings | $ 4.05 | $ 3.62 | ||
The pro forma unaudited results of operations for the Company on a consolidated basis for the twelve months ended December 31, 2012 and 2011, assuming the acquisition of businesses completed in 2012 and 2011 were consummated as of January 1, 2011 are as follows (in thousands, except per share data): | ||||
Years Ended | ||||
December 31, | ||||
2012 | 2011 | |||
Net sales | $1,177,091 | $1,062,540 | ||
Net income | $ 54,033 | $ 41,359 | ||
Per share data | ||||
Basic earnings | $ 3.75 | $ 2.88 | ||
Diluted earnings | $ 3.55 | $ 2.72 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |
Dec. 31, 2013 | ||
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | |
Future minimum rental commitments for non-cancelable leases | ' | |
The Company leases equipment, automobiles and office facilities under various operating leases. The future minimum rental commitments as of December 31, 2013, for non-cancelable leases are as follows (in thousands): | ||
2014 | $24,733 | |
2015 | 19,825 | |
2016 | 15,057 | |
2017 | 10,526 | |
2018 | 5,025 | |
Thereafter | 2,931 | |
SEGMENT_AND_GEOGRAPHICAL_REPOR1
SEGMENT AND GEOGRAPHICAL REPORTING (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
SEGMENT AND GEOGRAPHICAL REPORTING [Abstract] | ' | ||||||||
Segment Reporting Financial Information | ' | ||||||||
The following table sets out financial information relating the Company’s segments (in thousands): | |||||||||
Years Ended December 31, | Service | Innovative | Supply | Total | |||||
Centers | Pumping | Chain | |||||||
Solutions | Services | ||||||||
2013 | |||||||||
Sales | $884,821 | $209,175 | $147,514 | $1,241,510 | |||||
Operating income for reportable segments | 107,142 | 33,766 | 12,490 | 153,398 | |||||
Identifiable assets at year end | 500,978 | 66,007 | 48,049 | 615,034 | |||||
Capital expenditures | 6,321 | 357 | 206 | 6,884 | |||||
Depreciation | 7,770 | 446 | 366 | 8,582 | |||||
Amortization | 8,574 | 1,043 | 2,213 | 11,830 | |||||
Interest expense | 3,762 | 1,636 | 884 | 6,282 | |||||
2012 | |||||||||
Sales | $779,038 | $161,834 | $156,238 | $1,097,110 | |||||
Operating income for reportable segments | 88,924 | 32,099 | 12,495 | 133,518 | |||||
Identifiable assets at year end | 440,271 | 56,982 | 50,515 | 547,768 | |||||
Capital expenditures | 4,829 | 261 | - | 5,090 | |||||
Depreciation | 5,734 | 306 | 175 | 6,215 | |||||
Amortization | 8,795 | 663 | 1,428 | 10,886 | |||||
Interest expense | 3,701 | 1,243 | 616 | 5,560 | |||||
2011 | |||||||||
Sales | $560,233 | $102,305 | $144,467 | $807,005 | |||||
Operating income for reportable segments | 64,491 | 16,920 | 8,455 | 89,866 | |||||
Identifiable assets at year end | 294,410 | 43,636 | 56,058 | 394,104 | |||||
Capital expenditures | 1,258 | 310 | 73 | 1,641 | |||||
Depreciation | 2,090 | 326 | 276 | 2,692 | |||||
Amortization | 4,725 | 675 | 1,172 | 6,572 | |||||
Interest expense | 2,073 | 986 | 459 | 3,518 | |||||
Reconciliation of Operating Income for Reportable Segments to Consolidated Income before Taxes | ' | ||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Operating income for reportable segments | $153,398 | $133,518 | $89,866 | ||||||
Adjustments for: | |||||||||
Amortization of intangibles | 11,830 | 10,886 | 6,572 | ||||||
Corporate and other expense, net | 40,644 | 32,110 | 27,809 | ||||||
Total operating income | 100,924 | 90,522 | 55,485 | ||||||
Interest expense | 6,282 | 5,560 | 3,518 | ||||||
Other expenses (income), net | -75 | -47 | -28 | ||||||
Income before income taxes | $94,717 | $85,009 | $51,995 | ||||||
Schedule of revenue by geographic area | ' | ||||||||
The Company’s revenues and property and equipment by geographical location are as follow (in thousands): | |||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Revenues | |||||||||
United States | $1,075,962 | $1,039,712 | $807,005 | ||||||
Canada | 165,548 | 57,398 | - | ||||||
Total | $1,241,510 | $1,097,110 | $807,005 | ||||||
Schedule of property and equipment by geographical areas | ' | ||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Property and Equipment, net | |||||||||
United States | $32,878 | $31,334 | |||||||
Canada | 25,375 | 27,379 | |||||||
Total | $58,253 | $58,713 |
QUARTERLY_FINANCIAL_INFORMATIO1
QUARTERLY FINANCIAL INFORMATION (Unaudited) (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
QUARTERLY FINANCIAL INFORMATION (Unaudited) [Abstract] | ' | ||||
Summarized quarterly financial information | ' | ||||
Summarized quarterly financial information for the years ended December 31, 2013, 2012 and 2011 is as follows (in millions, except per share data): | |||||
First | Second | Third | Fourth | ||
Quarter | Quarter | Quarter | Quarter | ||
2013 | |||||
Sales | $290.10 | $307.90 | $329.70 | $313.80 | |
Gross profit | 89.1 | 91.5 | 97.1 | 94.6 | |
Net income | 13.2 | 13.7 | 16.4 | 16.9 | |
Earnings per share - basic | $0.92 | $0.95 | $1.13 | $1.17 | |
Earnings per share - diluted | $0.87 | $0.90 | $1.07 | $1.10 | |
2012 | |||||
Sales | $252.30 | $261.90 | $289.90 | $293.00 | |
Gross profit | 71.5 | 76.6 | 83.5 | 87.5 | |
Net income | 11.6 | 12.2 | 13.1 | 14.1 | |
Earnings per share - basic | $0.81 | $0.84 | $0.91 | $0.98 | |
Earnings per share - diluted | $0.77 | $0.80 | $0.86 | $0.92 | |
2011 | |||||
Sales | $183.10 | $197.70 | $207.90 | $218.30 | |
Gross profit | 52.4 | 57.3 | 59.5 | 62.6 | |
Net income | 6.3 | 7.6 | 8.3 | 9.2 | |
Earnings per share - basic | $0.44 | $0.53 | $0.58 | $0.64 | |
Earnings per share - diluted | $0.42 | $0.50 | $0.55 | $0.61 |
SUBSEQUENT_EVENTS_Tables
SUBSEQUENT EVENTS (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Subsequent Event [Line Items] | ' | |||
Schedule of Purchase Price Allocation | ' | |||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed during 2012 and 2013 in connection with the acquisitions described above (in thousands): | ||||
Cash | $ 12,804 | |||
Accounts Receivable, net | 53,314 | |||
Inventory | 12,727 | |||
Property and equipment | 38,421 | |||
Goodwill and intangibles | 139,391 | |||
Other assets | 3,793 | |||
Assets acquired | 260,450 | |||
Current liabilities assumed | -49,482 | |||
Non-current liabilities assumed | -22,406 | |||
Net assets acquired | $ 188,562 | |||
Pro forma unaudited results of operations | ' | |||
The pro forma unaudited results of operations for the Company on a consolidated basis for the twelve months ended December 31, 2013 and 2012, assuming the acquisition of businesses completed in 2013 and 2012 were consummated as of January 1, 2012 are as follows (in thousands, except per share data): | ||||
Years Ended | ||||
December 31, | ||||
2013 | 2012 | |||
Net sales | $1,284,465 | $1,279,870 | ||
Net income | $ 61,929 | $ 55,309 | ||
Per share data | ||||
Basic earnings | $ 4.28 | $ 3.83 | ||
Diluted earnings | $ 4.05 | $ 3.62 | ||
The pro forma unaudited results of operations for the Company on a consolidated basis for the twelve months ended December 31, 2012 and 2011, assuming the acquisition of businesses completed in 2012 and 2011 were consummated as of January 1, 2011 are as follows (in thousands, except per share data): | ||||
Years Ended | ||||
December 31, | ||||
2012 | 2011 | |||
Net sales | $1,177,091 | $1,062,540 | ||
Net income | $ 54,033 | $ 41,359 | ||
Per share data | ||||
Basic earnings | $ 3.75 | $ 2.88 | ||
Diluted earnings | $ 3.55 | $ 2.72 | ||
Subsequent Event [Member] | ' | |||
Subsequent Event [Line Items] | ' | |||
Schedule of Purchase Price Allocation | ' | |||
The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed in the acquisition of B27 (in thousands): | ||||
Cash | $ 2,538 | |||
Accounts Receivable, net | 51,448 | |||
Inventory | 6,472 | |||
Property and equipment | 14,573 | |||
Goodwill and intangibles | 293,588 | |||
Other assets | 948 | |||
Assets acquired | 369,567 | |||
Current liabilities assumed | -52,818 | |||
Non-current liabilities assumed | -23,198 | |||
Net assets acquired | $ 293,551 | |||
Pro forma unaudited results of operations | ' | |||
The pro forma unaudited results of operations for the Company on a consolidated basis for the twelve months ended December 31, 2013 and 2012, assuming the acquisition of B27 was consummated as of January 1, 2012 are as follows (in thousands, except per share data): | ||||
Years Ended | ||||
December 31, | ||||
2013 | 2012 | |||
Net sales | $1,415,123 | $1,239,006 | ||
Net income | $ 67,759 | $ 53,453 | ||
Per share data | ||||
Basic earnings | $ 4.67 | $ 3.70 | ||
Diluted earnings | $ 4.42 | $ 3.51 |
THE_COMPANY_Details
THE COMPANY (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Segment | |
THE COMPANY [Abstract] | ' |
Number of segments | 3 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Risks and Uncertainties [Abstract] | ' | ' | ' |
Threshold percentage of sales (in hundredths) | 10.00% | ' | ' |
Revenue Recognition [Abstract] | ' | ' | ' |
Revenues recognized on contracts in process | $12,700,000 | $15,900,000 | $9,800,000 |
Minimum contract period | '1 year | ' | ' |
Maximum contract period | '2 years | ' | ' |
Unbilled costs and estimated earnings included in accounts receivable | 5,100,000 | 8,500,000 | ' |
Self-insured Insurance and Medical Claims [Abstract] | ' | ' | ' |
Workers compensation insurance reserves, per claim | 100,000 | ' | ' |
Medical insurance reserves, per claim | 250,000 | ' | ' |
Accrual for claims | $2,100,000 | $1,800,000 | ' |
Buildings [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful life | '20 years | ' | ' |
Buildings [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful life | '39 years | ' | ' |
Building improvements [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful life | '10 years | ' | ' |
Building improvements [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful life | '20 years | ' | ' |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful life | '3 years | ' | ' |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful life | '20 years | ' | ' |
Leasehold improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful life | 'Shorter of estimated useful life or related lease term | ' | ' |
FAIR_VALUE_OF_FINANCIAL_ASSETS2
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' |
Payment for investment | $68 | $105 | $1,572 |
Level 1 [Member] | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' |
Fair value at beginning of period | 2,413 | 1,679 | ' |
Investment during period | 68 | 105 | ' |
Realized and unrealized gains (losses) included in other comprehensive income | -644 | 629 | ' |
Fair value at end of period | 1,837 | 2,413 | ' |
Payment for investment | $1,700 | ' | ' |
INVENTORY_Details
INVENTORY (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
INVENTORY [Abstract] | ' | ' |
Finished goods | $102,608 | $97,679 |
Work in process | 6,657 | 7,470 |
Inventory reserve | -3,994 | -3,727 |
Inventories | $105,271 | $101,422 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Less - Accumulated depreciation | ($33,082) | ($22,745) | ' |
Total Property and Equipment | 58,253 | 58,713 | ' |
Depreciation expense | 9,830 | 7,196 | 3,510 |
Land [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 2,137 | 1,861 | ' |
Buildings and Leasehold Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 9,565 | 7,378 | ' |
Furniture, Fixtures and Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | $79,633 | $72,219 | ' |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Goodwill [Roll Forward] | ' | ' | ' |
Beginning balance | $145,788,000 | $101,764,000 | ' |
Acquired during the year | 39,898,000 | 44,074,000 | ' |
Adjustments to prior year estimates | 2,424,000 | -50,000 | ' |
Translation adjustment | 0 | 0 | ' |
Ending balance | 188,110,000 | 145,788,000 | 101,764,000 |
Other Intangibles Assets [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 63,189,000 | 43,194,000 | ' |
Acquired during the year | 22,033,000 | 30,643,000 | ' |
Adjustments to prior year estimates | -2,424,000 | 50,000 | ' |
Translation adjustment | -1,246,000 | 188,000 | ' |
Amortization | -11,830,000 | -10,886,000 | -6,572,000 |
Balance at end of period | 69,722,000 | 63,189,000 | 43,194,000 |
Total Goodwill and Intangible Assets [Roll Forward] | ' | ' | ' |
Beginning Balance | 208,977,000 | 144,958,000 | ' |
Acquired during the year | 61,931,000 | 74,717,000 | ' |
Adjustment to prior year estimates | 0 | 0 | ' |
Translation adjustment | -1,246,000 | 188,000 | ' |
Amortization | -11,830,000 | -10,886,000 | -6,572,000 |
Ending Balance | 257,832,000 | 208,977,000 | 144,958,000 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross carrying amount | 114,132,000 | 94,888,000 | ' |
Accumulated amortization | -44,410,000 | -31,699,000 | ' |
Carrying amount, net | 69,722,000 | 63,189,000 | ' |
Amortization expense | 11,830,000 | 10,886,000 | 6,572,000 |
The estimated future annual amortization of intangible assets for each of the next five years and thereafter [Abstract] | ' | ' | ' |
2014 | 12,966,000 | ' | ' |
2015 | 11,532,000 | ' | ' |
2016 | 9,172,000 | ' | ' |
2017 | 9,089,000 | ' | ' |
2018 | 8,354,000 | ' | ' |
Thereafter | 18,609,000 | ' | ' |
Vendor Agreements [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross carrying amount | 2,496,000 | 2,496,000 | ' |
Accumulated amortization | -1,205,000 | -1,081,000 | ' |
Carrying amount, net | 1,291,000 | 1,415,000 | ' |
Weighted average remaining estimated life | '11 years 10 months 24 days | ' | ' |
Customer Relationships [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross carrying amount | 109,897,000 | 90,851,000 | ' |
Accumulated amortization | -42,468,000 | -30,010,000 | ' |
Carrying amount, net | 67,429,000 | 60,841,000 | ' |
Weighted average remaining estimated life | '7 years 1 month 6 days | ' | ' |
Increase in goodwill | 2,300,000 | ' | ' |
Non-Compete Agreements [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross carrying amount | 1,739,000 | 1,541,000 | ' |
Accumulated amortization | -737,000 | -608,000 | ' |
Carrying amount, net | 1,002,000 | 933,000 | ' |
Weighted average remaining estimated life | '3 years 4 months 24 days | ' | ' |
Service Centers [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Ending balance | 142,714,000 | 112,670,000 | ' |
Innovative Pumping Solutions [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Ending balance | 28,258,000 | 15,980,000 | ' |
Supply Chain Services [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Ending balance | $17,138,000 | $17,138,000 | ' |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, Goodwill balance by reportable segment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Goodwill [Line Items] | ' | ' | ' |
Goodwill | $188,110 | $145,788 | $101,764 |
Service Centers [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | 142,714 | 112,670 | ' |
Innovative Pumping Solutions [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | 28,258 | 15,980 | ' |
Supply Chain Services [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | $17,138 | $17,138 | ' |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jul. 11, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Line of Credit [Member] | Line of Credit [Member] | Term Loan [Member] | Term Loan [Member] | Promissory Note Payable [Member] | Promissory Note Payable [Member] | Unsecured Subordinated Notes Payable [Member] | Unsecured Subordinated Notes Payable [Member] | Revolving Credit Facility [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | ||||
Line of Credit [Member] | Term Loan [Member] | Term Loan [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | |||||||||||||
LIBOR [Member] | Minimum [Member] | Maximum [Member] | LIBOR [Member] | LIBOR [Member] | LIBOR [Member] | Prime rate [Member] | Prime rate [Member] | Prime rate [Member] | |||||||||||||||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | ||||||||||||||||||||||
Borrowings [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | $194,585,000 | $238,396,000 | ' | $76,849,000 | $104,526,000 | $109,375,000 | $130,000,000 | $6,000,000 | $0 | $2,361,000 | $3,870,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current portion of long-term debt | -26,213,000 | -22,057,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt | 168,372,000 | 216,339,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 262,500,000 | 109,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | 'LIBOR | ' | ' | 'prime | ' | ' |
Basis spread on base rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | ' | ' | ' | ' | 1.50% | 1.25% | 2.25% | 0.50% | 0.25% | 1.25% |
Incremental basis points for term loan (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | 0.20% | 0.40% | ' | ' | ' | ' | ' | ' |
Incremental higher interest rate after acquisition (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance costs expensed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 186,200,000 | ' | ' | ' | ' | ' |
Available for borrowing under the facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 154,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.80% | ' | ' | ' | ' | ' |
Monthly installments (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 2.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly installments (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum consolidated leverage ratio required through March 31, 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum consolidated leverage ratio required from June 30, 2015 and thereafter | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum asset coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage ratio | 1.48 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.48 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum consolidated fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.84 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.99 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of net accounts receivable for calculating asset coverage ratio (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of net inventory for calculating asset coverage ratio (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Computation of the Leverage Ratio [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income before taxes | 94,717,000 | 85,009,000 | 51,995,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | 6,282,000 | 5,560,000 | 3,518,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | 21,660,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock compensation expense | 2,832,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pro forma acquisition EBITDA | 6,612,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other adjustments | -351,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined EBITDA | 131,752,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined indebtedness | 194,585,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage Ratio (B)/(A) | 1.48 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.48 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 26,213,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 32,672,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 35,204,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 97,701,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 879,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | $1,916,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Components of income before income taxes [Abstract] | ' | ' | ' |
Domestic | $86,567 | $84,349 | $51,995 |
Foreign | 8,150 | 660 | 0 |
Income before income taxes | 94,717 | 85,009 | 51,995 |
Current [Abstract] | ' | ' | ' |
Federal | 21,481 | 27,393 | 15,401 |
State | 2,681 | 4,438 | 2,731 |
Foreign | 7,484 | 963 | 0 |
Total current | 31,646 | 32,794 | 18,132 |
Deferred [Abstract] | ' | ' | ' |
Federal | 8,631 | 1,835 | 2,081 |
State | 167 | 146 | 345 |
Foreign | -5,964 | -751 | 0 |
Total Deferred | 2,834 | 1,230 | 2,426 |
Total | 34,480 | 34,024 | 20,558 |
Federal statutory income tax rate (in hundredths) | 35.00% | ' | ' |
The difference between income taxes computed at the federal statutory income tax rate and the provision for income taxes [Abstract] | ' | ' | ' |
Income taxes computed at federal statutory rate | 33,150 | 29,753 | 18,198 |
State income taxes, net of federal benefit | 1,852 | 2,917 | 1,999 |
Other, primarily non-tax deductible items | -522 | 1,354 | 361 |
Total | 34,480 | 34,024 | 20,558 |
The net current and noncurrent components of deferred income tax balances [Abstract] | ' | ' | ' |
Net current assets | 7,713 | 5,182 | ' |
Net non-current assets | 0 | 0 | ' |
Net non-current liabilities | -21,938 | -16,448 | ' |
Net deferred tax asset (liability) | -14,225 | -11,266 | ' |
Deferred tax assets [Abstract] | ' | ' | ' |
Allowance for doubtful accounts | 2,849 | 2,408 | ' |
Inventories | 2,514 | 1,803 | ' |
Accruals | 945 | 842 | ' |
Other | 1,401 | 342 | ' |
Total deferred tax assets | 7,709 | 5,395 | ' |
Less valuation allowance | 0 | 0 | ' |
Total deferred tax assets, net of valuation allowance | 7,709 | 5,395 | ' |
Deferred tax liabilities [Abstract] | ' | ' | ' |
Goodwill | 1,159 | 2,270 | ' |
Intangibles | -10,707 | -9,232 | ' |
Property and equipment | -11,697 | -8,430 | ' |
Unremitted foreign earnings | -818 | -577 | ' |
Cumulative translation adjustment | 1,275 | -298 | ' |
Other | -1,146 | -394 | ' |
Net deferred tax asset (liability) | ($14,225) | ($11,266) | ' |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of shares granted (in shares) | -96,788 | ' | ' |
Number of shares forfeited (in shares) | 28,911 | ' | ' |
Weighted-average grant price of granted shares (in dollars per share) | $51.08 | ' | ' |
Restricted Stock [Roll Forward] | ' | ' | ' |
Non-vested, beginning balance (in shares) | 210,654 | ' | ' |
Granted (in shares) | 96,788 | ' | ' |
Forfeited (in shares) | -28,911 | ' | ' |
Vested (in shares) | -67,021 | ' | ' |
Nonvested, ending balance (in shares) | 211,510 | 210,654 | ' |
Weighted Average Grant Price [Roll Forward] | ' | ' | ' |
Non vested, beginning balance (in dollars per share) | $26.85 | ' | ' |
Granted (in dollars per share) | $51.08 | ' | ' |
Forfeitures (in dollars per share) | $37.15 | ' | ' |
Vested (in dollars per share) | $27.85 | ' | ' |
Nonvested, ending balance (in dollars per share) | $36.17 | $26.85 | ' |
Stock compensation expense | $2,832,000 | $1,955,000 | $1,256,000 |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Award vesting rights | 'The shares of restricted stock granted to employees and that are outstanding as of December 31, 2013 vest in accordance with one of the following vesting schedules: 100% one year after date of grant; 33.3% each year for three years after date of grant; 20% each year for five years after the grant date; or 10% each year for ten years after the grant date. | ' | ' |
Numerator used for calculating the number of whole shares granted | 75,000 | ' | ' |
Award vesting period | '1 year | ' | ' |
Number of shares authorized for grants (in shares) | 800,000 | ' | ' |
Number of shares granted (in shares) | -785,159 | ' | ' |
Number of shares forfeited (in shares) | 108,909 | ' | ' |
Number of shares available for future grants (in shares) | 123,750 | ' | ' |
Weighted-average grant price of granted shares (in dollars per share) | $23.49 | ' | ' |
Restricted Stock [Roll Forward] | ' | ' | ' |
Granted (in shares) | 785,159 | ' | ' |
Forfeited (in shares) | -108,909 | ' | ' |
Weighted Average Grant Price [Roll Forward] | ' | ' | ' |
Granted (in dollars per share) | $23.49 | ' | ' |
Stock compensation expense | 2,800,000 | 2,000,000 | 1,300,000 |
Related income tax benefit recognized | 1,100,000 | 800,000 | 500,000 |
Unrecognized compensation expense | $5,700,000 | $4,600,000 | ' |
Compensation cost not yet recognized, Period for recognition | '25 months 3 days | ' | ' |
EARNINGS_PER_SHARE_DATA_Detail
EARNINGS PER SHARE DATA (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Basic [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,439 | 14,374 | 14,301 |
Net income | $16,900 | $16,400 | $13,700 | $13,200 | $14,100 | $13,100 | $12,200 | $11,600 | $9,200 | $8,300 | $7,600 | $6,300 | $60,237 | $50,985 | $31,437 |
Convertible preferred stock dividend | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -90 | -90 | -90 |
Net income attributable to common shareholders | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,147 | 50,895 | 31,347 |
Per share amount (in dollars per share) | $1.17 | $1.13 | $0.95 | $0.92 | $0.98 | $0.91 | $0.84 | $0.81 | $0.64 | $0.58 | $0.53 | $0.44 | $4.17 | $3.54 | $2.19 |
Diluted [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,439 | 14,374 | 14,301 |
Assumed conversion of convertible preferred stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 840 | 840 | 840 |
Total dilutive shares (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,279 | 15,214 | 15,141 |
Net income attributable to common shareholders | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,147 | 50,895 | 31,347 |
Convertible preferred stock dividend | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90 | 90 | 90 |
Net income for diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $60,237 | $50,985 | $31,437 |
Per share amount (in dollars per share) | $1.10 | $1.07 | $0.90 | $0.87 | $0.92 | $0.86 | $0.80 | $0.77 | $0.61 | $0.55 | $0.50 | $0.42 | $3.94 | $3.35 | $2.08 |
BUSINESS_ACQUISITIONS_Details
BUSINESS ACQUISITIONS (Details) | 12 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2012 | Feb. 29, 2012 | Apr. 02, 2012 | 1-May-12 | 1-May-12 | Jul. 11, 2012 | Jul. 11, 2012 | 31-May-12 | Oct. 01, 2012 | Jun. 30, 2013 | Jul. 31, 2013 | Apr. 16, 2013 | Sep. 30, 2013 | 17-May-13 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | |
USD ($) | USD ($) | Minimum [Member] | Maximum [Member] | Mid-Continent Safety [Member] | Pump & Power Equipment, Inc. [Member] | Aledco, Inc. [Member] | Industrial Paramedic Services [Member] | Industrial Paramedic Services [Member] | HSE Integrated Ltd. [Member] | HSE Integrated Ltd. [Member] | Austin and Denholm Industrial Sales Alberta, Inc. [Member] | Jerzy Supply, Inc. [Member] | Alaska Pump and Supply, Inc. [Member] | Tool Tech Industrial Machine and Supply, Inc. [Member] | National Process Equipment Inc. [Member] | National Process Equipment Inc. [Member] | Tucker Tool Company, Inc. [Member] | Units acquired in 2011 and 2012 [Member] | Units acquired in 2011 and 2012 [Member] | Units acquired in 2012 and 2013 [Member] | Units acquired in 2012 and 2013 [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | Promissory note [Member] | USD ($) | CAD | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||
Location | USD ($) | |||||||||||||||||||||
Purchase price allocation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | $12,804,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts Receivable, net | 53,314,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventory, net | 12,727,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment | 38,421,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill and intangibles | 139,391,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | 3,793,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets acquired | 260,450,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current liabilities assumed | -49,482,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non current liabilities assumed | -22,406,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net assets acquired | 188,562,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price | ' | ' | ' | ' | 3,700,000 | 1,900,000 | 8,100,000 | 25,300,000 | ' | 85,000,000 | ' | 2,700,000 | 5,300,000 | 13,000,000 | 7,200,000 | 40,100,000 | ' | 5,000,000 | ' | ' | ' | ' |
Borrowings under existing credit facility | ' | ' | ' | ' | ' | ' | ' | 20,600,000 | ' | ' | ' | ' | ' | ' | ' | 36,600,000 | ' | ' | ' | ' | ' | ' |
Goodwill on acquisition | ' | ' | ' | ' | 1,100,000 | 700,000 | 3,400,000 | 12,300,000 | ' | 27,900,000 | ' | 300,000 | 600,000 | 8,100,000 | 4,100,000 | 24,600,000 | ' | 3,200,000 | ' | ' | ' | ' |
Intangible assets on acquisition | ' | ' | ' | ' | 1,800,000 | 800,000 | 3,100,000 | 9,900,000 | ' | 8,800,000 | ' | 600,000 | 2,000,000 | 4,100,000 | 2,400,000 | 14,800,000 | ' | 1,500,000 | ' | ' | ' | ' |
Number of shares issued on acquisition (in shares) | ' | ' | ' | ' | ' | ' | ' | 19,685 | ' | ' | ' | ' | ' | ' | ' | 52,542 | ' | ' | ' | ' | ' | ' |
Number of operating locations | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings under notes | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities assumed on acquisiton | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transaction cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnout amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' |
Earnout liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000 | ' | ' | ' | ' | ' |
Fair value of earnout recorded at acquisition date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000 | ' | ' | ' | ' | ' | ' |
Discount rate for valuation of acquired intangibles (in hundredths) | ' | ' | 15.90% | 18.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales from business acquisitions | 63,700,000 | 162,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings from business acquisitions | 1,400,000 | 7,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pro Forma Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,177,091,000 | 1,062,540,000 | 1,284,465,000 | 1,279,870,000 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $54,033,000 | $41,359,000 | $61,929,000 | $55,309,000 |
Per share data [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.75 | $2.88 | $4.28 | $3.83 |
Diluted earnings (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.55 | $2.72 | $4.05 | $3.62 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Future minimum rental commitments for non-cancelable leases [Abstract] | ' | ' | ' |
2014 | $24,733,000 | ' | ' |
2015 | 19,825,000 | ' | ' |
2016 | 15,057,000 | ' | ' |
2017 | 10,526,000 | ' | ' |
2018 | 5,025,000 | ' | ' |
Thereafter | 2,931,000 | ' | ' |
Rental expense for operating leases | $27,600,000 | $21,600,000 | $14,200,000 |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
EMPLOYEE BENEFIT PLANS [Abstract] | ' | ' | ' |
Rate of company matching (in hundredths) | 50.00% | 50.00% | 50.00% |
Percentage of deferred salary which is matched (in hundredths) | 4.00% | 4.00% | 4.00% |
Company contribution to the 401(K) plan | $2.70 | $1.90 | $1.50 |
OTHER_COMPREHENSIVE_INCOME_Det
OTHER COMPREHENSIVE INCOME (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Company | |||
OTHER COMPREHENSIVE INCOME [Abstract] | ' | ' | ' |
Other comprehensive income related to investment valuation | ($600,000) | $400,000 | $100,000 |
Number of companies acquired | 4 | ' | ' |
Cumulative translation adjustment | ($3,040,000) | $617,000 | $0 |
SEGMENT_AND_GEOGRAPHICAL_REPOR2
SEGMENT AND GEOGRAPHICAL REPORTING, Business Segmented Financial Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Sales | $1,241,510 | $1,097,110 | $807,005 |
Operating income for reportable segments | 153,398 | 133,518 | 89,866 |
Identifiable assets at year end | 615,034 | 547,768 | 394,104 |
Capital expenditures | 6,884 | 5,090 | 1,641 |
Depreciation | 8,582 | 6,215 | 2,692 |
Amortization | 11,830 | 10,886 | 6,572 |
Interest expense | 6,282 | 5,560 | 3,518 |
Service Centers [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Sales | 884,821 | 779,038 | 560,233 |
Operating income for reportable segments | 107,142 | 88,924 | 64,491 |
Identifiable assets at year end | 500,978 | 440,271 | 294,410 |
Capital expenditures | 6,321 | 4,829 | 1,258 |
Depreciation | 7,770 | 5,734 | 2,090 |
Amortization | 8,574 | 8,795 | 4,725 |
Interest expense | 3,762 | 3,701 | 2,073 |
IPS [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Sales | 209,175 | 161,834 | 102,305 |
Operating income for reportable segments | 33,766 | 32,099 | 16,920 |
Identifiable assets at year end | 66,007 | 56,982 | 43,636 |
Capital expenditures | 357 | 261 | 310 |
Depreciation | 446 | 306 | 326 |
Amortization | 1,043 | 663 | 675 |
Interest expense | 1,636 | 1,243 | 986 |
SCS [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Sales | 147,514 | 156,238 | 144,467 |
Operating income for reportable segments | 12,490 | 12,495 | 8,455 |
Identifiable assets at year end | 48,049 | 50,515 | 56,058 |
Capital expenditures | 206 | 0 | 73 |
Depreciation | 366 | 175 | 276 |
Amortization | 2,213 | 1,428 | 1,172 |
Interest expense | $884 | $616 | $459 |
SEGMENT_AND_GEOGRAPHICAL_REPOR3
SEGMENT AND GEOGRAPHICAL REPORTING, Adjustments (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Adjustment for [Abstract] | ' | ' | ' |
Operating income for reportable segments | $153,398,000 | $133,518,000 | $89,866,000 |
Amortization of intangibles | 11,830,000 | 10,886,000 | 6,572,000 |
Corporate and other expense, net | 40,644,000 | 32,110,000 | 27,809,000 |
Operating income | 100,924,000 | 90,522,000 | 55,485,000 |
Interest expense | 6,282,000 | 5,560,000 | 3,518,000 |
Other expense (income), net | -75,000 | -47,000 | -28,000 |
Income before income taxes | 94,717,000 | 85,009,000 | 51,995,000 |
Identifiable assets at year end | 635,277,000 | 569,732,000 | ' |
Depreciation | 9,830,000 | 7,196,000 | 3,510,000 |
Corporate [Member] | ' | ' | ' |
Adjustment for [Abstract] | ' | ' | ' |
Capital expenditures | 900,000 | 9,000,000 | 2,500,000 |
Identifiable assets at year end | 20,600,000 | 22,000,000 | 11,200,000 |
Depreciation | $1,200,000 | $1,000,000 | $800,000 |
SEGMENT_AND_GEOGRAPHICAL_REPOR4
SEGMENT AND GEOGRAPHICAL REPORTING, Geographical Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | $1,241,510 | $1,097,110 | $807,005 |
Property and equipment, net | 58,253 | 58,713 | ' |
UNITED STATES [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 1,075,962 | 1,039,712 | 807,005 |
Property and equipment, net | 32,878 | 31,334 | ' |
CANADA [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 165,548 | 57,398 | 0 |
Property and equipment, net | $25,375 | $27,379 | ' |
QUARTERLY_FINANCIAL_INFORMATIO2
QUARTERLY FINANCIAL INFORMATION (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
QUARTERLY FINANCIAL INFORMATION (Unaudited) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | $313,800 | $329,700 | $307,900 | $290,100 | $293,000 | $289,900 | $261,900 | $252,300 | $218,300 | $207,900 | $197,700 | $183,100 | $1,241,510 | $1,097,110 | $807,005 |
Gross profit | 94,600 | 97,100 | 91,500 | 89,100 | 87,500 | 83,500 | 76,600 | 71,500 | 62,600 | 59,500 | 57,300 | 52,400 | 372,345 | 319,091 | 231,836 |
Net income | $16,900 | $16,400 | $13,700 | $13,200 | $14,100 | $13,100 | $12,200 | $11,600 | $9,200 | $8,300 | $7,600 | $6,300 | $60,237 | $50,985 | $31,437 |
Earnings per share - basic (in dollars per share) | $1.17 | $1.13 | $0.95 | $0.92 | $0.98 | $0.91 | $0.84 | $0.81 | $0.64 | $0.58 | $0.53 | $0.44 | $4.17 | $3.54 | $2.19 |
Earnings per share - diluted (in dollars per share) | $1.10 | $1.07 | $0.90 | $0.87 | $0.92 | $0.86 | $0.80 | $0.77 | $0.61 | $0.55 | $0.50 | $0.42 | $3.94 | $3.35 | $2.08 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 02, 2014 | Jan. 02, 2014 | Jan. 02, 2014 | Jan. 02, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Pro Forma [Member] | Pro Forma [Member] | ||
Term Loan [Member] | Term Loan [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | B27, LLC [Member] | B27, LLC [Member] | B27, LLC [Member] | B27, LLC [Member] | B27, LLC [Member] | B27, LLC [Member] | B27, LLC [Member] | |||||
LIBOR [Member] | Minimum [Member] | Maximum [Member] | LIBOR [Member] | LIBOR [Member] | LIBOR [Member] | Prime rate [Member] | Prime rate [Member] | Prime rate [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Selling, General and Administrative Expenses [Member] | Term Loan [Member] | Revolving Credit Facility [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | ||||||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | LIBOR [Member] | LIBOR [Member] | LIBOR [Member] | Prime rate [Member] | Prime rate [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | ||||||||||||||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||||||||||||||
Purchase price allocation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | $12,804,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,538,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts Receivable, net | 53,314,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51,448,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventory | 12,727,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,472,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment | 38,421,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,573,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill and intangibles | 139,391,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 293,588,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | 3,793,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 948,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets acquired | 260,450,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 369,567,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current liabilities assumed | -49,482,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -52,818,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non current liabilities assumed | -22,406,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -23,198,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net assets acquired | 188,562,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 293,551,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pro Forma Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,415,123,000 | 1,239,006,000 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67,759,000 | 53,453,000 |
Per share data [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.67 | $3.70 |
Diluted earnings (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.42 | $3.51 |
Purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 293,600,000 | ' | ' | ' | ' | ' | ' | ' |
Transaction cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' |
Borrowings under existing credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | 350,000,000 | ' | ' | ' | ' |
Purchase price financed under common stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' |
Goodwill recognized on acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 227,300,000 | ' | ' | ' | ' | ' | ' | ' |
Intangible assets on acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66,300,000 | ' | ' | ' | ' | ' | ' | ' |
Base rate | ' | ' | 'LIBOR | ' | ' | 'LIBOR | ' | ' | 'prime | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on base rate (in hundredths) | ' | ' | 1.75% | ' | ' | 1.50% | 1.25% | 2.25% | 0.50% | 0.25% | 1.25% | ' | ' | 1.25% | 2.50% | 0.25% | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee (in hundredths) | ' | 0.25% | ' | 0.20% | 0.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.20% | 0.45% | ' | ' |
Debt issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility expiration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' |
Nontax deductible goodwill or intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $235,000,000 | ' | ' | ' | ' | ' | ' | ' |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) (Allowance for Doubtful Accounts [Member], USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Allowance for Doubtful Accounts [Member] | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Year | $7,204 | $6,202 | $3,540 | |||
Charged to Cost and Expenses | 2,018 | 1,283 | 3,101 | |||
Charged to Other Accounts | 560 | 454 | 193 | |||
Deductions | -984 | [1] | -735 | [1] | -632 | [1] |
Balance At End of Year | $8,798 | $7,204 | $6,202 | |||
[1] | Uncollectible accounts written off, net of recoveries. |