Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 27, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | DXP ENTERPRISES INC | |
Entity Central Index Key | 1,020,710 | |
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 Common Stock, Shares Outstanding | 17,401,724 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash | $ 2,479 | $ 1,590 |
Trade accounts receivable, net of allowance for doubtful accounts of $8,966 in 2017 and $8,160 in 2016 | 160,370 | 148,919 |
Inventories, net | 90,697 | 83,699 |
Costs and estimated profits in excess of billings on uncompleted contracts | 19,218 | 18,421 |
Prepaid expenses and other current assets | 3,875 | 2,138 |
Income taxes recoverable | 3,198 | 2,558 |
Total current assets | 279,837 | 257,325 |
Property and equipment, net | 56,610 | 60,807 |
Goodwill | 187,591 | 187,591 |
Other intangible assets, net of accumulated amortization of $76,443 in 2017 and $70,027 in 2016 | 86,707 | 94,831 |
Other long-term assets | 1,734 | 1,498 |
Total assets | 612,479 | 602,052 |
Current liabilities: | ||
Current maturities of long-term debt, less unamortized debt issuance costs of $744 in 2017 | 217,974 | 51,354 |
Trade accounts payable | 88,953 | 78,698 |
Accrued wages and benefits | 16,148 | 16,962 |
Customer advances | 2,348 | 2,441 |
Billings in excess of costs and estimated profits on uncompleted contracts | 2,719 | 2,813 |
Other current liabilities | 12,460 | 14,391 |
Total current liabilities | 340,602 | 166,659 |
Long-term debt, less current maturities and unamortized debt issuance costs of $992 in 2016 | 2,284 | 173,331 |
Deferred income taxes | 11,765 | 9,513 |
Commitments and contingencies (Note 13) | ||
Equity: | ||
Common stock, $0.01 par value, 100,000,000 shares authorized; 17,401,724 at June 30, 2017 and 17,197,380 at December 31, 2016 shares issued | 174 | 172 |
Additional paid-in capital | 152,727 | 152,313 |
Retained earnings | 124,617 | 117,396 |
Accumulated other comprehensive loss | (20,139) | (18,274) |
Total DXP Enterprises, Inc. equity | 257,395 | 251,623 |
Noncontrolling interest | 433 | 926 |
Total equity | 257,828 | 252,549 |
Total liabilities and equity | 612,479 | 602,052 |
Series A Preferred Stock [Member] | ||
Equity: | ||
Preferred stock | 1 | 1 |
Series B Convertible Preferred Stock [Member] | ||
Equity: | ||
Preferred stock | $ 15 | $ 15 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Current assets: | ||
Trade accounts receivable, allowance for doubtful accounts | $ 8,966 | $ 8,160 |
Other intangible assets accumulated amortization | 76,443 | 70,027 |
Current liabilities: | ||
Unamortized debt issuance costs - current | $ 744 | |
Unamortized debt issuance costs - noncurrent | $ 922 | |
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) | 17,401,724 | 17,197,380 |
Common stock shares outstanding (in shares) | 17,401,724 | 17,197,380 |
Series A Preferred Stock [Member] | ||
Equity: | ||
Preferred stock, voting rights | 1/10th vote per share | 1/10th vote per share |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, liquidation preference (in dollars per share) | 112 | 112 |
Preferred stock, stated value (in dollars per share) | $ 100 | $ 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] | ||
Equity: | ||
Preferred stock, voting rights | 1/10th vote per share | 1/10th vote per share |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, liquidation preference (in dollars per share) | 1,500 | 1,500 |
Preferred stock, stated value (in dollars per share) | $ 100 | $ 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 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE OPERATIONS (unaudited) [Abstract] | ||||
Sales | $ 250,698 | $ 256,215 | $ 489,225 | $ 509,776 |
Cost of sales | 181,762 | 184,612 | 355,774 | 369,355 |
Gross profit | 68,936 | 71,603 | 133,451 | 140,421 |
Selling, general and administrative expenses | 58,679 | 62,754 | 114,958 | 133,574 |
Income from operations | 10,257 | 8,849 | 18,493 | 6,847 |
Other expense (income), net | 57 | 9 | (171) | (146) |
Interest expense | 3,992 | 3,951 | 7,645 | 7,360 |
Income (loss) before provision for income taxes | 6,208 | 4,889 | 11,019 | (367) |
Provision (benefit) for income taxes | 2,239 | (197) | 4,056 | (205) |
Net income (loss) | 3,969 | 5,086 | 6,963 | (162) |
Net loss attributable to noncontrolling interest | (166) | (84) | (305) | (220) |
Net income attributable to DXP Enterprises, Inc. | 4,135 | 5,170 | 7,268 | 58 |
Preferred stock dividend | 22 | 22 | 45 | 45 |
Net income attributable to common shareholders | 4,113 | 5,148 | 7,223 | 13 |
Net income (loss) | 3,969 | 5,086 | 6,963 | (162) |
Cumulative translation adjustment | 455 | (251) | (1,865) | 387 |
Comprehensive income | $ 4,424 | $ 4,835 | $ 5,098 | $ 225 |
Basic earnings per share attributable to DXP Enterprises, Inc. (in dollars per share) | $ 0.24 | $ 0.36 | $ 0.42 | $ 0 |
Weighted average common shares outstanding (in shares) | 17,404 | 14,503 | 17,406 | 14,494 |
Diluted earnings per share attributable to DXP Enterprises, Inc. (in dollars per share) | $ 0.23 | $ 0.34 | $ 0.40 | $ 0 |
Weighted average common shares and common equivalent shares outstanding (in shares) | 18,244 | 15,343 | 18,246 | 15,334 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income attributable to DXP Enterprises, Inc. | $ 7,268 | $ 58 |
Less net loss attributable to non-controlling interest | (305) | (220) |
Net income (loss) | 6,963 | (162) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 5,155 | 5,997 |
Amortization of intangible assets | 8,607 | 9,038 |
Bad debt expense | 1,001 | 986 |
Amortization of debt issuance costs | 628 | 477 |
Write off of debt issuance costs | 0 | 967 |
Compensation expense for restricted stock | 1,010 | 1,253 |
Tax loss related to vesting of restricted stock | 0 | 565 |
Deferred income taxes | 1,998 | 738 |
Changes in operating assets and liabilities, net of assets and liabilities acquired in business combinations: | ||
Trade accounts receivable | (11,768) | 4,483 |
Costs and estimated profits in excess of billings on uncompleted contracts | (780) | 2,124 |
Inventories | (6,914) | 5,650 |
Prepaid expenses and other assets | (1,923) | (1,145) |
Trade accounts payable and accrued expenses | 3,979 | (13,734) |
Billings in excess of costs and estimated profits on uncompleted contracts | (102) | (5,829) |
Net cash provided by operating activities | 7,854 | 11,408 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (1,118) | (2,930) |
Equity method investment contribution | 0 | (4,000) |
Net cash used in investing activities | (1,118) | (6,930) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from debt | 394,966 | 219,019 |
Principal payments on revolving line of credit and other long-term debt | (399,641) | (222,840) |
Costs for registration of common shares | 0 | (226) |
Debt issuance fees | (380) | 0 |
Loss for non-controlling interest owners, net of tax | (187) | (136) |
Dividends paid | (45) | (45) |
Payment for employee taxes withheld from stock awards | (596) | (203) |
Tax loss related to vesting of restricted stock | 0 | (565) |
Net cash used in financing activities | (5,883) | (4,996) |
EFFECT OF FOREIGN CURRENCY ON CASH | 36 | (88) |
NET CHANGE IN CASH | 889 | (606) |
CASH AT BEGINNING OF PERIOD | 1,590 | 1,693 |
CASH AT END OF PERIOD | $ 2,479 | $ 1,087 |
THE COMPANY
THE COMPANY | 6 Months Ended |
Jun. 30, 2017 | |
THE COMPANY [Abstract] | |
THE COMPANY | NOTE 1 - THE COMPANY DXP Enterprises, Inc. together with its subsidiaries (collectively "DXP," "Company," "us," "we," or "our") are engaged in the business of distributing maintenance, repair, and operating (MRO) products and services to industrial customers. Additionally, DXP provides integrated custom pump skid packages, pump remanufacturing, and manufactures branded private label pumps to industrial customers. The Company is organized into three business segments: Service Centers ("SC"), Supply Chain Services ("SCS"), and Innovative Pumping Solutions ("IPS"). See Note 14 for discussion of the business segments. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES | 6 Months Ended |
Jun. 30, 2017 | |
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 accounting principles generally accepted in the United States of America ("US GAAP"). The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and its variable interest entity ("VIE"). The accompanying unaudited condensed consolidated financial statements have been prepared on substantially the same basis as our annual consolidated financial statements and should be read in conjunction with our annual report on Form 10-K for the year ended December 31, 2016. In the opinion of management, these condensed consolidated financial statements contain all adjustments necessary to present fairly the Company's condensed consolidated balance sheets as of December 31, 2016 and June 30, 2017 (unaudited), condensed consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2017 and June 30, 2016 (unaudited), and condensed consolidated statements of cash flows for the six months ended June 30, 2017 and June 30, 2016 (unaudited). All such adjustments represent normal recurring items. DXP is the primary beneficiary of a VIE in which DXP owns 47.5% of the equity. DXP consolidates the financial statements of the VIE with the financial statements of DXP. As of June 30, 2017, the total assets of the VIE were approximately $5.3 million including approximately $5.0 million of property and equipment compared to $5.2 million of total assets and $5.2 million of property and equipment at December 31, 2016. DXP is the primary customer of the VIE. For the three months ended June 30, 2017 and 2016, consolidation of the VIE increased cost of sales by approximately $0.3 million and $0.2 million, respectively and increased SG&A by approximately $0.2 million and $46 thousand, respectively. For the six months ended June 30, 2017 and 2016, consolidation of the VIE increased cost of sales by approximately $0.5 million and $0.6 million, respectively and increased SG&A by approximately $0.5 million and $0.1 million, respectively. The Company recognized a related income tax benefit of $0.3 million and $50 thousand, respectively, related to the VIE for the three months ended June 30, 2017 and 2016 and $0.5 million and $150 thousand, respectively, for the six months ended June 30, 2017 and 2016. At June 30, 2017, the owners of 52.5% of the equity not owned by DXP included a former executive officer and other employees of DXP. Equity investments in which we exercise significant influence, but do not control and are not the primary beneficiary, are accounted for using the equity method of accounting. During the first quarter of 2016, DXP invested $4.0 million in a related party equity method investment . All intercompany accounts and transactions have been eliminated upon consolidation. |
RISKS AND UNCERTAINTIES
RISKS AND UNCERTAINTIES | 6 Months Ended |
Jun. 30, 2017 | |
RISKS AND UNCERTAINTIES [Abstract] | |
RISKS AND UNCERTAINTIES | NOTE 3 – RISKS AND UNCERTAINTIES We believe cash generated from our operations will meet our normal working capital needs during the next twelve months. We expect that we will be in compliance with the financial covenants under our credit facility through and including March 31, 2018. However, because our credit facility matures on March 31, 2018, and we do not foresee the ability to pay the credit facility with cash from our operations, we intend to seek alternative financing during the next nine months. This alternative financing could include additional bank debt and/or the public or private sale of debt or equity securities. If we issue securities as a way of obtaining such financing, that may substantially dilute the interests of our shareholders. However, we may not be able to obtain alternative financing on attractive terms. Based upon discussions with investment bankers, DXP management believes that it is probable that DXP will have the ability to refinance the current debt before maturity. DXP's Board of Directors has approved a plan to refinance the credit facility. The plan to refinance could include institutional debt or equity, combined with an asset based revolving loan. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2017 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 4 - RECENT ACCOUNTING PRONOUNCEMENTS Standards Effective in 2017 or Earlier Accounting Changes and Error Corrections. Compensation – Stock Compensation. Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. he Company's Condensed Consolidated Financial Statements Topic Method of Adoption Impact on Consolidated Financial Statements Recognize all excess tax benefits and tax deficiencies as income tax benefit or expense Prospective The Company recognized $0.2 million and $0.1 million of excess tax benefit in income taxes in the three and six months ended June 30, 2017, respectively, decreasing the effective tax rate for each period. Excess tax benefits and deficiencies on the statement of cash flows are classified as an operating activity Prospective The Company recognized $0.1 million of excess tax benefit in the six months ended June 30, 2017 as an operating activity. Prior to the adoption of the ASU 2016-09, the excess tax expense in the six months ended June 30, 2016 was $0.6 million recognized as a financing activity. Employee taxes paid when an employer withholds shares for tax-withholding purposes on the statement of cash flows are classified as financing activity Retrospective The Company reclassified $0.2 million of employee taxes paid from cash flows from operating activities to cash flows from financing on the Consolidated Statements of Cash Flows in the six months ended June 30, 2016. Accounting for forfeitures and tax withholding elections Prospective The Company has not changed its accounting policy for forfeitures. There is no significant impact on Consolidated Financial Statements. Income Taxes. Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes. reclassified $9.5 million of current deferred income tax assets from current assets to non-current deferred income tax liabilities on the Condensed Consolidated Balance Sheet. Inventory. Inventory (Topic 330), Simplifying the Measurement of Inventory. Standards Effective in 2018 or Later Compensation - Stock Compensation. Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. Intangibles-Goodwill and Other. Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. Business Combinations. Business Combinations (Topic 805): Clarifying the Definition of a Business. Statement of Cash Flows. Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments. Financial Instruments – Credit Losses. Financial Instruments – Credit Losses, . Leases. Leases (Topic 842). classification as a finance or operating lease. The criteria for determining whether a lease is a finance or operating lease has not been significantly changed by this ASU. The ASU also requires additional disclosure of the amount, timing, and uncertainty of cash flows arising from leases, including qualitative and quantitative requirements. This pronouncement is effective for financial statements issued for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Financial Instruments. Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities Revenue Recognition. Revenue from Contracts with Customers (Topic 606), |
FAIR VALUE OF FINANCIAL ASSETS
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2017 | |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES [Abstract] | |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | NOTE 5 - 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. |
INVENTORIES, NET
INVENTORIES, NET | 6 Months Ended |
Jun. 30, 2017 | |
INVENTORIES, NET [Abstract] | |
INVENTORIES, NET | NOTE 6 – INVENTORIES, NET The carrying values of inventories are as follows ( in thousands June 30, 2017 December 31, 2016 Finished goods $ 79,525 $ 74,269 Work in progress 11,172 9,430 Inventories, net $ 90,697 $ 83,699 |
COSTS AND ESTIMATED PROFITS ON
COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS | 6 Months Ended |
Jun. 30, 2017 | |
COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS [Abstract] | |
COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS | NOTE 7 – COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS Costs and estimated profits in excess of billings on uncompleted contracts arise in the consolidated balance sheets when revenues have been recognized but the amounts cannot be billed under the terms of the contracts. Such amounts are recoverable from customers upon various measures of performance, including achievement of certain milestones, completion of specified units, or completion of a contract. Costs and estimated profits on uncompleted contracts and related amounts billed were as follows ( in thousands June 30, 2017 December 31, 2016 Costs incurred on uncompleted contracts $ 24,974 $ 25,214 Estimated profits, thereon 3,491 6,274 Total 28,465 31,488 Less: billings to date 11,968 15,864 Net $ 16,497 $ 15,624 Such amounts were included in the accompanying condensed consolidated balance sheets for 2017 and 2016 under the following captions ( in thousands June 30, 2017 December 31, 2016 Costs and estimated profits in excess of billings on uncompleted contracts $ 19,218 $ 18,421 Billings in excess of costs and estimated profits on uncompleted contracts (2,719 ) (2,813 ) Translation adjustment (2 ) 16 Net $ 16,497 $ 15,624 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2017 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 8 - PROPERTY AND EQUIPMENT, NET The carrying values of property and equipment are as follows ( in thousands June 30, 2017 December 31, 2016 Land $ 2,346 $ 2,346 Buildings and leasehold improvements 16,463 16,259 Furniture, fixtures and equipment 95,065 94,784 Less – Accumulated depreciation (57,264 ) (52,582 ) Total property and equipment, net $ 56,610 $ 60,807 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2017 | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 9 - GOODWILL AND OTHER INTANGIBLE ASSETS The following table presents the changes in the carrying amount of goodwill and other intangible assets during the six months ended June 30, 2017 ( in thousands Goodwill Other Intangible Assets Total Balance as of December 31, 2016 $ 187,591 $ 94,831 $ 282,422 Translation adjustment - 483 483 Amortization - (8,607 ) (8,607 ) Balance as of June 30, 2017 $ 187,591 $ 86,707 $ 274,298 The following table presents the goodwill balance by reportable segment (in thousands) June 30, 2017 December 31, 2016 Service Centers $ 154,473 $ 154,473 Innovative Pumping Solutions 15,980 15,980 Supply Chain Services 17,138 17,138 Total $ 187,591 $ 187,591 The following table presents a summary of amortizable other intangible assets ( in thousands As of June 30, 2017 As of December 31, 2016 Gross Carrying Amount Accumulated Amortization Carrying Amount, net Gross Carrying Amount Accumulated Amortization Carrying Amount, net Customer relationships $ 162,201 $ (75,681 ) $ 86,520 $ 163,022 $ (68,446 ) $ 94,576 Non-compete agreements 949 (762 ) 187 1,836 (1,581 ) 255 Total $ 163,150 $ (76,443 ) $ 86,707 $ 164,858 $ (70,027 ) $ 94,831 Gross carrying amounts as well as accumulated amortization are partially affected by the fluctuation of foreign currency rates. Other intangible assets are amortized according to estimated economic benefits over their estimated useful lives. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2017 | |
LONG-TERM DEBT [Abstract] | |
LONG-TERM DEBT | NOTE 10 – LONG-TERM DEBT Long-term debt consisted of the following ( in thousands June 30, 2017 December 31, 2016 Line of credit $ 162,600 $ 147,600 Term loan 55,250 74,500 Promissory note payable in monthly installments at 2.9% through January 2021, collateralized by equipment 3,152 3,577 Less unamortized debt issuance costs (744 ) (992 ) 220,258 224,685 Less: Current portion (217,974 ) (51,354 ) Long-term debt less current maturities $ 2,284 $ 173,331 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 (as amended, the "Original Facility"). 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 (as amended by that certain First Amendment to the Amended and Restated Credit Agreement, dated as of August 6, 2015 (the "First Amendment"), that certain Second Amendment to the Amended and Restated Credit Agreement, dated as of September 30, 2015 (the "Second Amendment"), that certain Third Amendment to the Amended and Restated Credit Agreement, dated as of May 12, 2016 (the "Third Amendment"), that certain Fourth Amendment to the Amended and Restated Credit Agreement, dated as of August 15, 2016 (the "Fourth Amendment"), and that certain Fifth Amendment to the Amended and Restated Credit Agreement, dated as of November 28, 2016 (the "Fifth Amendment" and as so amended, the "Facility")), amending and restating the Original Facility. Pursuant to the Facility, as of June 30, 2017, the lenders named therein provided to DXP a $55.2 million term loan and a $190 million revolving line of credit. The Facility expires on March 31, 2018. Loans made from the Facility may be used for working capital and general corporate purposes of DXP and its subsidiaries. As of June 30, 2017, the aggregate principal amount of revolving loans outstanding under the facility was $162.6 million. Amortization payments are payable at $15.6 million per quarter for the fiscal quarter periods ending September 30, 2017 and thereafter. At June 30, 2017, the aggregate principal amount of term loan outstanding under the Facility was $55.2 million. On June 30, 2017, the LIBOR based rate in effect under the Facility was LIBOR plus 5.0% and the prime based rate of the Facility was prime plus 4.0%. At June 30, 2017, $217.9 million was borrowed under the Facility at a weighted average interest rate of approximately 6.2%. At June 30, 2017, the Company had $20.9 million available for borrowing under the Facility. Commitment fees of 0.50% per annum are 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 Condensed Consolidated Statements of Operations. The Facility contains financial covenants defining various financial measures and levels of these measures with which the Company must comply monthly. Substantially all of the Company's assets are pledged as collateral to secure the credit facility. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2017 | |
STOCK-BASED COMPENSATION [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 11 - STOCK-BASED COMPENSATION Restricted Stock Under the restricted stock plans approved by our shareholders, directors, consultants and employees were awarded shares of DXP's common stock. The shares of restricted stock granted to employees and that are outstanding as of June 30, 2017 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 the 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 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 was 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. At June 30, 2017, 407,447 shares were available for future grants. Changes in restricted stock for the six months ended June 30, 2017 were as follows: Number of Shares Weighted Average Grant Price Non-vested at December 31, 2016 143,380 $ 26.76 Granted 12,150 $ 33.84 Forfeited - $ - Vested (13,900 ) $ 62.65 Non-vested at June 30, 2017 141,630 $ 23.84 Compensation expense, associated with restricted stock, recognized in the six months ended June 30, 2017 and 2016 was $1.0 million and $1.3 million, respectively. Related income tax benefits recognized in earnings for the six months ended June 30, 2017 and 2016 were approximately $0.4 |
EARNINGS PER SHARE DATA
EARNINGS PER SHARE DATA | 6 Months Ended |
Jun. 30, 2017 | |
EARNINGS PER SHARE DATA [Abstract] | |
EARNINGS PER SHARE DATA | NOTE 12 - 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 Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Basic: Weighted average shares outstanding 17,404 14,503 17,406 14,494 Net income attributable to DXP Enterprises, Inc. $ 4,135 $ 5,170 $ 7,268 $ 58 Convertible preferred stock dividend 22 22 45 45 Net income attributable to common shareholders $ 4,113 $ 5,148 $ 7,223 $ 13 Per share amount $ 0.24 $ 0.36 $ 0.42 $ 0.00 Diluted: Weighted average shares outstanding 17,404 14,503 17,406 14,494 Assumed conversion of convertible preferred stock 840 840 840 840 Total dilutive shares 18,244 15,343 18,246 15,334 Net income attributable to common shareholders $ 4,113 $ 5,148 $ 7,223 $ 13 Convertible preferred stock dividend 22 22 45 45 Net income attributable to DXP Enterprises, Inc. for diluted earnings per share $ 4,135 $ 5,170 $ 7,268 $ 58 Per share amount $ 0.23 $ 0.34 $ 0.40 $ 0.00 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2017 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13 - COMMITMENTS AND CONTINGENCIES 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 aggregate, a material adverse effect on DXP's consolidated financial position, cash flows, or results of operations. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2017 | |
SEGMENT REPORTING [Abstract] | |
SEGMENT REPORTING | NOTE 14 - SEGMENT 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, remanufactures pumps and manufactures branded private label pumps. The Supply Chain Services segment provides a wide range of MRO products and 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. The following table sets out financial information related to the Company's segments ( in thousands For the Three Months Ended June 30, 2017 2016 SC IPS SCS Total SC IPS SCS Total Sales $ 164,749 $ 44,470 $ 41,479 $ 250,698 $ 161,832 $ 54,353 $ 40,030 $ 256,215 Amortization 2,227 1,793 271 4,291 2,284 1,955 271 4,510 Income (loss) from operations 16,190 (38 ) 3,447 19,599 10,313 3,532 3,931 17,776 Income from operations, excluding amortization $ 18,417 $ 1,755 $ 3,718 $ 23,890 $ 12,597 $ 5,487 $ 4,202 $ 22,286 For the Six Months Ended June 30, 2017 2016 SC IPS SCS Total SC IPS SCS Total Sales $ 313,461 $ 93,528 $ 82,236 $ 489,225 $ 329,334 $ 101,784 $ 78,658 $ 509,776 Amortization 4,477 3,588 542 8,607 4,579 3,917 542 9,038 Income from operations 27,281 1,676 7,234 36,191 17,555 1,876 7,140 26,571 Income from operations, excluding amortization $ 31,758 $ 5,264 $ 7,776 $ 44,798 $ 22,134 $ 5,793 $ 7,682 $ 35,609 The following table presents reconciliations of operating income for reportable segments to the consolidated income before taxes ( in thousands Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Operating income for reportable segments, excluding amortization $ 23,890 $ 22,286 $ 44,798 $ 35,609 Adjustment for: Amortization of intangible assets 4,291 4,510 8,607 9,038 Corporate expense 9,342 8,927 17,698 19,724 Income from operations 10,257 8,849 18,493 6,847 Interest expense 3,992 3,951 7,645 7,360 Other expense (income), net 57 9 (171 ) (146 ) Income (loss) before income taxes $ 6,208 $ 4,889 $ 11,019 $ (367 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2017 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 15 - SUBSEQUENT EVENTS We have evaluated subsequent events through the date the interim Condensed Consolidated Financial Statements were issued. There were no subsequent events that required recognition or disclosure unless elsewhere identified in this report. |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES [Abstract] | |
Basis of Presentation | Basis of Presentation The Company's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and its variable interest entity ("VIE"). The accompanying unaudited condensed consolidated financial statements have been prepared on substantially the same basis as our annual consolidated financial statements and should be read in conjunction with our annual report on Form 10-K for the year ended December 31, 2016. In the opinion of management, these condensed consolidated financial statements contain all adjustments necessary to present fairly the Company's condensed consolidated balance sheets as of December 31, 2016 and June 30, 2017 (unaudited), condensed consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2017 and June 30, 2016 (unaudited), and condensed consolidated statements of cash flows for the six months ended June 30, 2017 and June 30, 2016 (unaudited). All such adjustments represent normal recurring items. DXP is the primary beneficiary of a VIE in which DXP owns 47.5% of the equity. DXP consolidates the financial statements of the VIE with the financial statements of DXP. As of June 30, 2017, the total assets of the VIE were approximately $5.3 million including approximately $5.0 million of property and equipment compared to $5.2 million of total assets and $5.2 million of property and equipment at December 31, 2016. DXP is the primary customer of the VIE. For the three months ended June 30, 2017 and 2016, consolidation of the VIE increased cost of sales by approximately $0.3 million and $0.2 million, respectively and increased SG&A by approximately $0.2 million and $46 thousand, respectively. For the six months ended June 30, 2017 and 2016, consolidation of the VIE increased cost of sales by approximately $0.5 million and $0.6 million, respectively and increased SG&A by approximately $0.5 million and $0.1 million, respectively. The Company recognized a related income tax benefit of $0.3 million and $50 thousand, respectively, related to the VIE for the three months ended June 30, 2017 and 2016 and $0.5 million and $150 thousand, respectively, for the six months ended June 30, 2017 and 2016. At June 30, 2017, the owners of 52.5% of the equity not owned by DXP included a former executive officer and other employees of DXP. Equity investments in which we exercise significant influence, but do not control and are not the primary beneficiary, are accounted for using the equity method of accounting. During the first quarter of 2016, DXP invested $4.0 million in a related party equity method investment . All intercompany accounts and transactions have been eliminated upon consolidation. |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
INVENTORIES, NET [Abstract] | |
Carrying Values of Inventories | The carrying values of inventories are as follows ( in thousands June 30, 2017 December 31, 2016 Finished goods $ 79,525 $ 74,269 Work in progress 11,172 9,430 Inventories, net $ 90,697 $ 83,699 |
COSTS AND ESTIMATED PROFITS O23
COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS [Abstract] | |
Schedule of Costs and Estimated Profits on Uncompleted Contracts | Costs and estimated profits on uncompleted contracts and related amounts billed were as follows ( in thousands June 30, 2017 December 31, 2016 Costs incurred on uncompleted contracts $ 24,974 $ 25,214 Estimated profits, thereon 3,491 6,274 Total 28,465 31,488 Less: billings to date 11,968 15,864 Net $ 16,497 $ 15,624 |
Schedule of Costs and Estimated Earnings on Uncompleted Contracts Included in Condensed Consolidated Balance Sheets | Such amounts were included in the accompanying condensed consolidated balance sheets for 2017 and 2016 under the following captions ( in thousands June 30, 2017 December 31, 2016 Costs and estimated profits in excess of billings on uncompleted contracts $ 19,218 $ 18,421 Billings in excess of costs and estimated profits on uncompleted contracts (2,719 ) (2,813 ) Translation adjustment (2 ) 16 Net $ 16,497 $ 15,624 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
Carrying Values of Property and Equipment | The carrying values of property and equipment are as follows ( in thousands June 30, 2017 December 31, 2016 Land $ 2,346 $ 2,346 Buildings and leasehold improvements 16,463 16,259 Furniture, fixtures and equipment 95,065 94,784 Less – Accumulated depreciation (57,264 ) (52,582 ) Total property and equipment, net $ 56,610 $ 60,807 |
GOODWILL AND OTHER INTANGIBLE25
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 six months ended June 30, 2017 ( in thousands Goodwill Other Intangible Assets Total Balance as of December 31, 2016 $ 187,591 $ 94,831 $ 282,422 Translation adjustment - 483 483 Amortization - (8,607 ) (8,607 ) Balance as of June 30, 2017 $ 187,591 $ 86,707 $ 274,298 |
Goodwill Balance by Reportable Segment | The following table presents the goodwill balance by reportable segment (in thousands) June 30, 2017 December 31, 2016 Service Centers $ 154,473 $ 154,473 Innovative Pumping Solutions 15,980 15,980 Supply Chain Services 17,138 17,138 Total $ 187,591 $ 187,591 |
Amortizable Other Intangible Assets | The following table presents a summary of amortizable other intangible assets ( in thousands As of June 30, 2017 As of December 31, 2016 Gross Carrying Amount Accumulated Amortization Carrying Amount, net Gross Carrying Amount Accumulated Amortization Carrying Amount, net Customer relationships $ 162,201 $ (75,681 ) $ 86,520 $ 163,022 $ (68,446 ) $ 94,576 Non-compete agreements 949 (762 ) 187 1,836 (1,581 ) 255 Total $ 163,150 $ (76,443 ) $ 86,707 $ 164,858 $ (70,027 ) $ 94,831 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
LONG-TERM DEBT [Abstract] | |
Long-term Debt | Long-term debt consisted of the following ( in thousands June 30, 2017 December 31, 2016 Line of credit $ 162,600 $ 147,600 Term loan 55,250 74,500 Promissory note payable in monthly installments at 2.9% through January 2021, collateralized by equipment 3,152 3,577 Less unamortized debt issuance costs (744 ) (992 ) 220,258 224,685 Less: Current portion (217,974 ) (51,354 ) Long-term debt less current maturities $ 2,284 $ 173,331 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
STOCK-BASED COMPENSATION [Abstract] | |
Changes in Restricted Stock | Changes in restricted stock for the six months ended June 30, 2017 were as follows: Number of Shares Weighted Average Grant Price Non-vested at December 31, 2016 143,380 $ 26.76 Granted 12,150 $ 33.84 Forfeited - $ - Vested (13,900 ) $ 62.65 Non-vested at June 30, 2017 141,630 $ 23.84 |
EARNINGS PER SHARE DATA (Tables
EARNINGS PER SHARE DATA (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Basic: Weighted average shares outstanding 17,404 14,503 17,406 14,494 Net income attributable to DXP Enterprises, Inc. $ 4,135 $ 5,170 $ 7,268 $ 58 Convertible preferred stock dividend 22 22 45 45 Net income attributable to common shareholders $ 4,113 $ 5,148 $ 7,223 $ 13 Per share amount $ 0.24 $ 0.36 $ 0.42 $ 0.00 Diluted: Weighted average shares outstanding 17,404 14,503 17,406 14,494 Assumed conversion of convertible preferred stock 840 840 840 840 Total dilutive shares 18,244 15,343 18,246 15,334 Net income attributable to common shareholders $ 4,113 $ 5,148 $ 7,223 $ 13 Convertible preferred stock dividend 22 22 45 45 Net income attributable to DXP Enterprises, Inc. for diluted earnings per share $ 4,135 $ 5,170 $ 7,268 $ 58 Per share amount $ 0.23 $ 0.34 $ 0.40 $ 0.00 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
SEGMENT REPORTING [Abstract] | |
Segment Reporting Financial Information | The following table sets out financial information related to the Company's segments ( in thousands For the Three Months Ended June 30, 2017 2016 SC IPS SCS Total SC IPS SCS Total Sales $ 164,749 $ 44,470 $ 41,479 $ 250,698 $ 161,832 $ 54,353 $ 40,030 $ 256,215 Amortization 2,227 1,793 271 4,291 2,284 1,955 271 4,510 Income (loss) from operations 16,190 (38 ) 3,447 19,599 10,313 3,532 3,931 17,776 Income from operations, excluding amortization $ 18,417 $ 1,755 $ 3,718 $ 23,890 $ 12,597 $ 5,487 $ 4,202 $ 22,286 For the Six Months Ended June 30, 2017 2016 SC IPS SCS Total SC IPS SCS Total Sales $ 313,461 $ 93,528 $ 82,236 $ 489,225 $ 329,334 $ 101,784 $ 78,658 $ 509,776 Amortization 4,477 3,588 542 8,607 4,579 3,917 542 9,038 Income from operations 27,281 1,676 7,234 36,191 17,555 1,876 7,140 26,571 Income from operations, excluding amortization $ 31,758 $ 5,264 $ 7,776 $ 44,798 $ 22,134 $ 5,793 $ 7,682 $ 35,609 |
Reconciliation of Operating Income for Reportable Segments to Consolidated Income before Taxes | The following table presents reconciliations of operating income for reportable segments to the consolidated income before taxes ( in thousands Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Operating income for reportable segments, excluding amortization $ 23,890 $ 22,286 $ 44,798 $ 35,609 Adjustment for: Amortization of intangible assets 4,291 4,510 8,607 9,038 Corporate expense 9,342 8,927 17,698 19,724 Income from operations 10,257 8,849 18,493 6,847 Interest expense 3,992 3,951 7,645 7,360 Other expense (income), net 57 9 (171 ) (146 ) Income (loss) before income taxes $ 6,208 $ 4,889 $ 11,019 $ (367 ) |
THE COMPANY (Details)
THE COMPANY (Details) | 6 Months Ended |
Jun. 30, 2017Segment | |
THE COMPANY [Abstract] | |
Number of segments | 3 |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | |
Variable Interest Entity [Line Items] | ||||||
Ownership percentage in VIE | 47.50% | |||||
Assets of VIE | $ 5,300,000 | $ 5,300,000 | $ 5,200,000 | |||
Increase cost of sales from consolidation of the VIE | 300,000 | $ 200,000 | 500,000 | $ 600,000 | ||
Increase in selling, general and administrative expense | 200,000 | 46,000 | 500,000 | 100,000 | ||
Income tax benefit of VIE | 300,000 | $ 50,000 | 500 | 150,000 | ||
Equity method investment | $ 4,000,000 | $ 0 | 0 | $ 4,000,000 | ||
Distributions received from investments | 4,000,000 | |||||
Former Executive Officers and Other Employees of DXP [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Ownership percentage in VIE | 52.50% | |||||
Property and Equipment [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Assets of VIE | $ 5,000,000 | $ 5,000,000 | $ 5,200,000 |
RECENT ACCOUNTING PRONOUNCEME32
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Income tax benefit | $ 2,239 | $ (197) | $ 4,056 | $ (205) | |
Income tax benefit recognized as an operating activity | 0 | (565) | |||
Income tax expense recognized as a financing activity | 0 | (565) | |||
Non-current deferred income tax liabilities | 11,765 | 11,765 | $ 9,513 | ||
ASU 2016-09 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Income tax benefit | (200) | (100) | |||
Income tax benefit recognized as an operating activity | 100 | ||||
Income tax expense recognized as a financing activity | 600 | $ 200 | |||
ASU 2015-17 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Non-current deferred income tax liabilities | $ 9,500 | $ 9,500 |
INVENTORIES, NET (Details)
INVENTORIES, NET (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
INVENTORIES, NET [Abstract] | ||
Finished goods | $ 79,525 | $ 74,269 |
Work in progress | 11,172 | 9,430 |
Inventories, net | $ 90,697 | $ 83,699 |
COSTS AND ESTIMATED PROFITS O34
COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of costs and estimated earnings on uncompleted contracts [Abstract] | ||
Costs incurred on uncompleted contracts | $ 24,974 | $ 25,214 |
Estimated profits, thereon | 3,491 | 6,274 |
Total | 28,465 | 31,488 |
Less: billings to date | 11,968 | 15,864 |
Net | 16,497 | 15,624 |
Schedule of Costs and Estimated Earnings on Uncompleted Contracts Included in Condensed Consolidated Balance Sheets [Abstract] | ||
Costs and estimated profits in excess of billings on uncompleted contracts | 19,218 | 18,421 |
Billings in excess of costs and estimated profits on uncompleted contracts | (2,719) | (2,813) |
Translation adjustment | (2) | 16 |
Net | $ 16,497 | $ 15,624 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Less - Accumulated depreciation | $ (57,264) | $ (52,582) |
Total property and equipment, net | 56,610 | 60,807 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,346 | 2,346 |
Buildings and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 16,463 | 16,259 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 95,065 | $ 94,784 |
GOODWILL AND OTHER INTANGIBLE36
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 187,591 | |
Translation adjustment | 0 | |
Balance at end of period | 187,591 | |
Other Intangibles Assets [Roll Forward] | ||
Balance at beginning of period | 94,831 | |
Translation adjustment | 483 | |
Amortization | (8,607) | $ (9,038) |
Balance at end of period | 86,707 | |
Total Goodwill and Intangible Assets [Roll Forward] | ||
Balance at beginning of period | 282,422 | |
Translation adjustment | 483 | |
Amortization | (8,607) | $ (9,038) |
Balance at end of period | $ 274,298 |
GOODWILL AND OTHER INTANGIBLE37
GOODWILL AND OTHER INTANGIBLE ASSETS, Goodwill Balance by Reportable Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | ||
Goodwill | $ 187,591 | $ 187,591 |
Service Centers [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 154,473 | 154,473 |
Innovative Pumping Solutions [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 15,980 | 15,980 |
Supply Chain Services [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 17,138 | $ 17,138 |
GOODWILL AND OTHER INTANGIBLE38
GOODWILL AND OTHER INTANGIBLE ASSETS, Amortizable Other Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 163,150 | $ 164,858 |
Accumulated amortization | (76,443) | (70,027) |
Carrying amount, net | 86,707 | 94,831 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 162,201 | 163,022 |
Accumulated amortization | (75,681) | (68,446) |
Carrying amount, net | 86,520 | 94,576 |
Non-Compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 949 | 1,836 |
Accumulated amortization | (762) | (1,581) |
Carrying amount, net | $ 187 | $ 255 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Borrowings [Abstract] | ||
Long-term debt | $ 220,258 | $ 224,685 |
Less unamortized debt issuance costs | (744) | (992) |
Less: Current portion | (217,974) | (51,354) |
Long-term debt less current maturities | 2,284 | 173,331 |
Line of Credit [Member] | ||
Borrowings [Abstract] | ||
Long-term debt | 162,600 | 147,600 |
Term Loan [Member] | ||
Borrowings [Abstract] | ||
Long-term debt | 55,250 | 74,500 |
Promissory Note Payable [Member] | ||
Borrowings [Abstract] | ||
Long-term debt | $ 3,152 | $ 3,577 |
Interest rate | 2.90% | 2.90% |
Wells Fargo Bank, National Association [Member] | Term Loan [Member] | ||
Borrowings [Abstract] | ||
Maximum borrowing capacity | $ 55,200 | |
Wells Fargo Bank, National Association [Member] | Revolving Credit Facility [Member] | ||
Borrowings [Abstract] | ||
Maximum borrowing capacity | $ 190,000 | |
Expiration date | Mar. 31, 2018 | |
Debt amortization expenses payable per quarter in current year and thereafter | $ 15,600 | |
Amount outstanding | $ 217,900 | |
Weighted average interest rate | 6.20% | |
Available for borrowing under the facility | $ 20,900 | |
Commitment fee | 0.50% | |
Wells Fargo Bank, National Association [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | ||
Borrowings [Abstract] | ||
Basis spread on base rate | 5.00% | |
Wells Fargo Bank, National Association [Member] | Revolving Credit Facility [Member] | Prime Rate [Member] | ||
Borrowings [Abstract] | ||
Basis spread on base rate | 4.00% |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Weighted Average Grant Price [Roll Forward] | |||
Stock compensation expense | $ 1,010 | $ 1,253 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentages of vesting for one year | 100.00% | ||
Percentages of vesting for three years | 33.30% | ||
Percentages of vesting for five years | 20.00% | ||
Percentages of vesting for ten years | 10.00% | ||
Award vesting period | 1 year | ||
Number of shares available for future grants (in shares) | 407,447 | ||
Restricted Stock [Roll Forward] | |||
Non-vested, beginning balance (in shares) | 143,380 | ||
Granted (in shares) | 12,150 | ||
Forfeited (in shares) | 0 | ||
Vested (in shares) | (13,900) | ||
Non-vested, ending balance (in shares) | 141,630 | ||
Weighted Average Grant Price [Roll Forward] | |||
Non-vested, beginning balance (in dollars per share) | $ 26.76 | ||
Granted (in dollars per share) | 33.84 | ||
Forfeited (in dollars per share) | 0 | ||
Vested (in dollars per share) | 62.65 | ||
Non-vested, ending balance (in dollars per share) | $ 23.84 | ||
Stock compensation expense | $ 1,000 | 1,300 | |
Related income tax benefits recognized | 400 | $ 500 | |
Unrecognized compensation expense | $ 2,100 | $ 2,700 | |
Compensation cost not yet recognized, Period for recognition | 15 months |
EARNINGS PER SHARE DATA (Detail
EARNINGS PER SHARE DATA (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Basic [Abstract] | ||||
Weighted average shares outstanding (in shares) | 17,404 | 14,503 | 17,406 | 14,494 |
Net income attributable to DXP Enterprises, Inc. | $ 4,135 | $ 5,170 | $ 7,268 | $ 58 |
Convertible preferred stock dividend | 22 | 22 | 45 | 45 |
Net income attributable to common shareholders | $ 4,113 | $ 5,148 | $ 7,223 | $ 13 |
Per share amount (in dollars per share) | $ 0.24 | $ 0.36 | $ 0.42 | $ 0 |
Diluted [Abstract] | ||||
Weighted average shares outstanding (in shares) | 17,404 | 14,503 | 17,406 | 14,494 |
Assumed conversion of convertible preferred stock (in shares) | 840 | 840 | 840 | 840 |
Total dilutive shares (in shares) | 18,244 | 15,343 | 18,246 | 15,334 |
Net income attributable to common shareholders | $ 4,113 | $ 5,148 | $ 7,223 | $ 13 |
Convertible preferred stock dividend | 22 | 22 | 45 | 45 |
Net income attributable to DXP Enterprises, Inc. for diluted earnings per share | $ 4,135 | $ 5,170 | $ 7,268 | $ 58 |
Per share amount (in dollars per share) | $ 0.23 | $ 0.34 | $ 0.40 | $ 0 |
SEGMENT REPORTING, Business Seg
SEGMENT REPORTING, Business Segmented Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 250,698 | $ 256,215 | $ 489,225 | $ 509,776 |
Income (loss) from operations | 10,257 | 8,849 | 18,493 | 6,847 |
Reportable Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 250,698 | 256,215 | 489,225 | 509,776 |
Amortization | 4,291 | 4,510 | 8,607 | 9,038 |
Income (loss) from operations | 19,599 | 17,776 | 36,191 | 26,571 |
Operating income, excluding amortization | 23,890 | 22,286 | 44,798 | 35,609 |
Reportable Segment [Member] | Service Centers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 164,749 | 161,832 | 313,461 | 329,334 |
Amortization | 2,227 | 2,284 | 4,477 | 4,579 |
Income (loss) from operations | 16,190 | 10,313 | 27,281 | 17,555 |
Operating income, excluding amortization | 18,417 | 12,597 | 31,758 | 22,134 |
Reportable Segment [Member] | Innovative Pumping Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 44,470 | 54,353 | 93,528 | 101,784 |
Amortization | 1,793 | 1,955 | 3,588 | 3,917 |
Income (loss) from operations | (38) | 3,532 | 1,676 | 1,876 |
Operating income, excluding amortization | 1,755 | 5,487 | 5,264 | 5,793 |
Reportable Segment [Member] | Supply Chain Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 41,479 | 40,030 | 82,236 | 78,658 |
Amortization | 271 | 271 | 542 | 542 |
Income (loss) from operations | 3,447 | 3,931 | 7,234 | 7,140 |
Operating income, excluding amortization | $ 3,718 | $ 4,202 | $ 7,776 | $ 7,682 |
SEGMENT REPORTING, Reconciliati
SEGMENT REPORTING, Reconciliation of operating Income to Consolidated Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Adjustment for [Abstract] | ||||
Amortization of intangible assets | $ 8,607 | $ 9,038 | ||
Income from operations | $ 10,257 | $ 8,849 | 18,493 | 6,847 |
Interest expense | 3,992 | 3,951 | 7,645 | 7,360 |
Other expense (income), net | 57 | 9 | (171) | (146) |
Income (loss) before provision for income taxes | 6,208 | 4,889 | 11,019 | (367) |
Reportable Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income for reportable segments, excluding amortization | 23,890 | 22,286 | 44,798 | 35,609 |
Adjustment for [Abstract] | ||||
Income from operations | 19,599 | 17,776 | 36,191 | 26,571 |
Reportable Segment [Member] | Service Centers [Member] | ||||
Adjustment for [Abstract] | ||||
Income from operations | 16,190 | 10,313 | 27,281 | 17,555 |
Reportable Segment [Member] | Innovative Pumping Solutions [Member] | ||||
Adjustment for [Abstract] | ||||
Income from operations | (38) | 3,532 | 1,676 | 1,876 |
Reportable Segment [Member] | Supply Chain Services [Member] | ||||
Adjustment for [Abstract] | ||||
Income from operations | 3,447 | 3,931 | 7,234 | 7,140 |
Segment Reconciling Items [Member] | ||||
Adjustment for [Abstract] | ||||
Amortization of intangible assets | 4,291 | 4,510 | 8,607 | 9,038 |
Corporate expense | $ 9,342 | $ 8,927 | $ 17,698 | $ 19,724 |