DXP Enterprises (DXPE) 10-Q 27 Jul 17 2017 Q2 Quarterly report Financial data

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