DXP Enterprises (DXPE) 10-Q 5 Nov 21 2021 Q2 Quarterly report Financial data

COVER

COVER - shares	6 Months Ended
	Jun. 30, 2021	Aug. 31, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	0-21513
Entity Registrant Name	DXP Enterprises, Inc.
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	76-0509661
Entity Address, Address Line One	5301 Hollister
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77040
City Area Code	713
Local Phone Number	996-4700
Title of 12(b) Security	Common Stock par value $0.01
Trading Symbol	DXPE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		18,570,840
Entity Central Index Key	0001020710
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021		Jun. 30, 2020
Income Statement [Abstract]
Sales	$ 285,691	$ 251,401	$ 531,278		$ 552,384
Cost of sales	200,413	181,320	374,370		399,189
Gross profit	85,278	70,081	156,908		153,195
Selling, general and administrative expenses	70,432	62,943	135,829		134,738
Income from operations	14,846	7,138	21,079		18,457
Other (income) expense	(105)	133	(535)		(701)
Interest expense	5,337	3,930	10,580		8,307
Income before income taxes	9,614	3,075	11,034		10,851
Provision for income taxes	1,684	710	2,945		2,496
Net income	7,930	2,365	8,089		8,355
Net loss attributable to noncontrolling interest	(189)	(62)	(401)		(124)
Net income attributable to DXP Enterprises, Inc.	8,119	2,427	8,490		8,479
Preferred stock dividend	22	22	45		45
Net income attributable to common shareholders	8,097	2,405	8,445		8,434
Net income	7,930	2,365	8,089		8,355
Currency translation adjustments	1,327	1,395	2,604		232
Comprehensive income	$ 9,257	$ 3,760	$ 10,693		$ 8,587
Earnings per share (Note 9) :
Basic (in dollars per share)	$ 0.42	$ 0.14	$ 0.44		$ 0.48
Diluted (in dollars per share)	$ 0.41	$ 0.13	$ 0.42	[1]	$ 0.45
Weighted average common shares outstanding :
Basic (in shares)	19,291	17,735	19,239		17,719
Diluted (in shares)	20,131	18,575	20,079	[1]	18,559
[1]

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash	$ 79,169	$ 119,328
Restricted cash	91	91
Accounts Receivable, net of allowance of $7,948 and $8,628	193,657	166,941
Inventories	103,447	97,071
Costs and estimated profits in excess of billings	16,718	18,459
Prepaid expenses and other current assets	6,914	4,548
Federal income taxes receivable	3,689	2,987
Total current assets	403,685	409,425
Property and equipment, net	52,456	56,899
Goodwill	300,643	261,767
Other intangible assets, net	83,175	80,088
Operating lease ROU assets	56,173	55,188
Other long-term assets	5,448	4,764
Total assets	901,580	868,131
Current liabilities:
Current maturities of long-term debt	3,300	3,300
Trade accounts payable	80,208	64,849
Accrued wages and benefits	26,240	20,621
Customer advances	7,426	3,688
Billings in excess of costs and estimated profits	2,300	4,061
Short-term operating lease liabilities	17,512	15,891
Other current liabilities	50,438	34,729
Total current liabilities	187,424	147,139
Long-term debt, net of unamortized debt issuance costs	316,343	317,139
Long-term operating lease liabilities	37,907	38,010
Other long-term liabilities	2,930	2,930
Deferred income taxes	2,867	1,777
Total long-term liabilities	360,047	359,856
Total liabilities	547,471	506,995
Commitments and contingencies (Note 10)
Shareholders' equity:
Series A and B preferred stock, $1.00 par value each; 1,000,000 shares authorized each	16	16
Common stock, $0.01 par value, 100,000,000 shares authorized; 18,558,674 and 19,208,067 outstanding	194	189
Additional paid-in capital	203,562	192,068
Retained earnings	194,523	186,078
Accumulated other comprehensive loss	(15,409)	(18,013)
Treasury stock, at cost 1,014,053 shares at June 30, 2021	(29,174)	0
Total DXP Enterprises, Inc. equity	353,712	360,338
Noncontrolling interest	397	798
Total equity	354,109	361,136
Total liabilities and equity	$ 901,580	$ 868,131

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Allowance for accounts receivable	$ 7,948	$ 8,628
Shareholders' equity:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares outstanding (in shares)	18,558,674	19,208,067
Treasury stock, at cost (in shares)	1,014,053
Series A preferred stock
Shareholders' equity:
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Series B preferred stock
Shareholders' equity:
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income attributable to DXP Enterprises, Inc.	$ 8,490	$ 8,479
Less: net loss attributable to non-controlling interest	(401)	(124)
Net income	8,089	8,355
Reconciliation of net income to net cash provided (used in) by operating activities:
Depreciation	5,132	5,747
Amortization of intangible assets	8,452	6,243
Gain on sale of property and equipment	(246)	0
Provision for credit losses	(637)	434
Payment of contingent consideration liability in excess of acquisition-date fair value	(145)	(136)
Fair value adjustment on contingent consideration	0	25
Amortization of debt issuance costs	854	937
Stock compensation expense	840	1,887
Deferred income taxes	1,068	188
Net change in operating assets and liabilities	(7,201)	38,084
Net cash provided by operating activities	16,206	61,764
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(1,526)	(5,133)
Proceeds from the sale of property and equipment	1,297	123
Acquisition of business, net of cash acquired	(44,435)	(14,153)
Net cash used in investing activities	(44,664)	(19,163)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal debt payments	(1,650)	(16,250)
Issuance of Common Stock- shares sold in public market	0	1,142
Payment for contingent consideration liability	(955)	(1,864)
Dividends paid	(45)	(45)
Purchase of treasury stock	(8,769)	0
Payment for employee taxes withheld from stock awards	(585)	(116)
Net cash used in financing activities	(12,004)	(17,133)
Effect of foreign currency on cash	303	(1,025)
Net change in cash and restricted cash	(40,159)	24,443
Cash and restricted cash at beginning of period	119,419	54,326
Cash and restricted cash at end of period	79,260	78,769
Supplemental schedule of non-cash investing and financing activities:
Shares issued for the acquisition of CVI (Note 12)	8,859	0
Share repurchase agreement	$ 20,405	$ 0

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Preferred StockSeries A preferred stock	Preferred StockSeries B preferred stock	Common stock	Paid-in capital	Retained earnings	Treasury stock	Non controlling interest	Accum other comp loss
Beginning Balance at Dec. 31, 2019	$ 354,932	$ 1	$ 15	$ 174	$ 157,886	$ 215,664	$ 0	$ 1,146	$ (19,954)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred dividends paid	(45)					(45)
Compensation expense for restricted stock	1,860				1,860
Stock compensation expense	27				27
Tax related items for share based awards	(116)				(116)
Issuance of shares of common stock	2,000			1	1,999
Issuance of common stock sold in public markets, net of commissions and fees	1,142				1,142
Currency translation adjustment	301				296	(227)			232
Net income	8,355					8,479		(124)
Ending Balance at Jun. 30, 2020	368,456	1	15	175	163,094	223,871	0	1,022	(19,722)
Beginning Balance at Mar. 31, 2020	362,546	1	15	175	160,695	221,693	0	1,084	(21,117)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred dividends paid	(22)					(22)
Compensation expense for restricted stock	956				956
Stock compensation expense	27				27
Tax related items for share based awards	(22)				(22)
Issuance of common stock sold in public markets, net of commissions and fees	1,142				1,142
Currency translation adjustment	1,464				296	(227)			1,395
Net income	2,365					2,427		(62)
Ending Balance at Jun. 30, 2020	368,456	1	15	175	163,094	223,871	0	1,022	(19,722)
Beginning Balance at Dec. 31, 2020	361,136	1	15	189	192,068	186,078	0	798	(18,013)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred dividends paid	(45)					(45)
Compensation expense for restricted stock	840				840
Tax related items for share based awards	(586)				(586)
Issuance of shares of common stock	11,245			5	11,240
Currency translation adjustment	2,604								2,604
Purchase of treasury stock	(29,174)						(29,174)
Net income	8,089					8,490		(401)
Ending Balance at Jun. 30, 2021	354,109	1	15	194	203,562	194,523	(29,174)	397	(15,409)
Beginning Balance at Mar. 31, 2021	362,412	1	15	189	191,931	186,426	0	586	(16,736)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred dividends paid	(22)					(22)
Compensation expense for restricted stock	460				460
Tax related items for share based awards	(69)				(69)
Issuance of shares of common stock	11,245			5	11,240
Currency translation adjustment	1,327								1,327
Purchase of treasury stock	(29,174)						(29,174)
Net income	7,930					8,119		(189)
Ending Balance at Jun. 30, 2021	$ 354,109	$ 1	$ 15	$ 194	$ 203,562	$ 194,523	$ (29,174)	$ 397	$ (15,409)

THE COMPANY

THE COMPANY	6 Months Ended
	Jun. 30, 2021
THE COMPANY [Abstract]
THE COMPANY	THE COMPANY DXP Enterprises, Inc. together with its subsidiaries (collectively "DXP," "Company," "us," "we," or "our") was incorporated in Texas on July 26, 1996. DXP Enterprises, Inc. and its subsidiaries are engaged in the business of distributing maintenance, repair and operating ("MRO") products and service to a variety of end markets and industrial customers. Additionally, DXP provides integrated, custom pump skid packages, pump remanufacturing and manufactures branded private label pumps to energy and industrial customers. The Company is organized into three business segments: Service Centers ("SC"), Supply Chain Services ("SCS") and Innovative Pumping Solutions ("IPS"). See Note 11 - Segment Reporting for discussion of the business segments.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES Basis of Presentation The Company's financial statements are prepared in accordance with generally accepted accounting principles 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/A for the year ended December 31, 2020. For a more complete discussion of our significant accounting policies and business practices, refer to the consolidated Annual Report on Form 10-K/A filed with the Securities and Exchange Commission on October 22, 2021. The results of operations for the six months ended June 30, 2021 are not necessarily indicative of results expected for the full fiscal year. In the opinion of management, these condensed consolidated financial statements contain all adjustments necessary to present fairly the Company's condensed consolidated statements of operations and comprehensive income for the six months ended June 30, 2021 and June 30, 2020, condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020, condensed consolidated statements of cash flows for the six months ended June 30, 2021 and June 30, 2020, and condensed consolidated statement of equity for the six months ended June 30, 2021 and June 30, 2020. All such adjustments represent normal recurring items. All inter-company accounts and transactions have been eliminated upon consolidation.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This update provides optional expedients and exceptions for applying generally accepted accounting principles to certain contract modifications and hedging relationships that reference London Inter-Bank Offered Rate (LIBOR) or another reference rate expected to be discontinued. The guidance is effective upon issuance and generally can be applied through December 31, 2022. The Company is currently evaluating the potential impact of this ASU on the financial statements. All other new accounting pronouncements that have been issued, but not yet effective, are currently being evaluated and at this time are not expected to have a material impact on our financial position or results of operations.

RESTATEMENT OF PREVIOUSLY ISSUE

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS	6 Months Ended
	Jun. 30, 2021
Accounting Changes and Error Corrections [Abstract]
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS	RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS As previously reported, the Company restated its consolidated balance sheets as of December 31, 2020 and 2019, and consolidated statements of operations and comprehensive income, equity and cash flows for the years ended December 31, 2020, 2019 and 2018. The restatement also affected periods prior to 2018. The impact of the restatement on such prior periods was reflected as an adjustment to retained earnings as of January 1, 2018. In addition, the restatement impacts the first, second and third quarters of 2020 and the first quarter of 2021. The restated amounts for the comparable interim period in 2020 are presented below. The restatement corrects errors resulting from the failure to timely clear aged payables resulting from the Company's three-way match process discrepancies, the recognition of additional consideration related to a business combination, as well as certain additional errors that the Company has determined to be immaterial, both individually and in aggregate. Set forth below are the restatement adjustments included in the restatement of the previously issued financial statements for the year ended December 31, 2020, and the quarter ended June 30, 2020, each of which is an “error” within the meaning of ASC Topic 250: Accounting Changes and Error Corrections. The following tables presents the impact of the restatement adjustments described below on net income and comprehensive income for the quarter and the six months ended June 30, 2020: For the Three Months Ended June 30, 2020 For the Six Months Ended June 30, 2020 As Previously As Previously Reported Adjustments As Restated Reported Adjustments As Restated CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS Sales $ 251,401 $ 251,401 $ 552,384 $ 552,384 Cost of sales 181,705 (385) 181,320 398,703 486 399,189 Gross profit 69,696 385 70,081 153,681 (486) 153,195 Selling, general and administrative costs 62,943 — 62,943 136,013 (1,275) 134,738 Income before income taxes 2,690 385 3,075 10,062 789 10,851 Provision for income taxes 610 100 710 2,334 162 2,496 Net income $ 2,080 $ 285 $ 2,365 $ 7,728 $ 627 $ 8,355 Basic earnings per share $ 0.12 $ 0.14 $ 0.44 $ 0.48 Diluted earnings per share $ 0.12 $ 0.13 $ 0.42 $ 0.45 For the Three Months Ended June 30, 2020 For the Six Months Ended June 30, 2020 As previously As previously Reported Adjustments As Restated Reported Adjustments As Restated CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Net income $ 2,080 $ 285 $ 2,365 $ 7,728 $ 627 $ 8,355 Total comprehensive income $ 3,475 $ 285 $ 3,760 $ 7,960 $ 627 $ 8,587 Adjustments to Net Sales and Related Adjustments to Cost of Products Sold Unvouchered Purchase Orders The Company determined it had aged unvouchered purchase orders included in trade accounts payable. After lengthy investigation and research, DXP determined that these balances were not valid legal obligations to vendors and will not be invoiced or paid. As a result, the Company wrote off the aged balances that no longer represented legal obligations, resulting in a net reduction in accounts payable. Landed cost inventory adjustment The Company determined that cost mark-ups for landed costs for certain inventory items related to our private label pumps had not been properly relieved upon the sale of these items . Direct shipment cut off adjustment Direct shipment orders placed near period end may not be properly reflected in the correct period. The Company adjusted sales and cost of goods sold for items recorded in the incorrect period, as well as accounts receivable and payable. Other Adjustments to Earnings from Continuing Operations Before Non-Controlling Interest and Income Taxes Cut-off for credit card payment accruals In January 2020, the Company recorded its monthly payment for its P-Card credit card program, however, the charges were incurred in December 2019. This adjustment reflects the accrual in the correct period, resulting in a shift in other current liabilities between periods. Sales tax payable accruals The Company increased other current liabilities for its accrual for state sales tax obligations stemming from open audits. Adjustments to Provision for Income Taxes The adjustments reflected for the provision for income taxes are the tax consequences of the above listed corrections. Balance sheet adjustments related to purchase accounting and consolidation On December 31, 2020, DXP closed on the acquisition of four businesses. The owners of two of the targets were eligible for true-up consideration based upon the closing financial results of calendar year 2020. This true-up consideration was paid in July 2021; however, the amount of true-up consideration was deemed to have been accrued as of the closing of the acquisitions. Therefore this adjustment resulted in an accrual for the true-up consideration and an increase in goodwill of $13.4 million. As described above, the unvouchered purchase order discrepancies resulted in a reduction of accounts payable in the amount of $12.2 million as of December 31, 2020. During the consolidation of the four acquisitions closed on December 31, 2020, the Company improperly reflected the cash on hand at the targets as an increase in cumulative translation adjustment and other comprehensive income for approximately $2 million. This reclassification adjustment properly records the increase in cash and restricted cash upon closing. In addition, cumulative translation adjustment was also reduced by $1.8 million as a result of a reclassification associated with trade accounts receivable. The following table presents the impact of the restatement adjustments on the Company’s previously reported balance sheet as of December 31, 2020 on a condensed basis: As As BALANCE SHEET (AT DECEMBER 31, 2020): Reported Adjustments Restated Cash and restricted cash $ 117,444 $ 1,975 $ 119,419 Accounts Receivable 163,429 3,512 166,941 Inventory 97,071 — 97,071 Federal income taxes receivable 5,632 (2,645) 2,987 Goodwill 248,339 13,428 261,767 Total Assets $ 851,861 $ 16,270 $ 868,131 Accounts Payable 75,744 (10,895) 64,849 Other current liabilities 20,834 13,895 34,729 Total Liabilities $ 503,995 $ 3,000 $ 506,995 Cumulative Translation Adjustment (21,842) 3,829 (18,013) Retained Earnings 176,637 9,441 186,078 Equity 347,866 13,270 361,136 Total Liabilities & Equity $ 851,861 $ 16,270 $ 868,131 The table below presents the impact to Operating Cash Flows on a Condensed Basis as a result of the restatement for the period ended June 30, 2020: For the Six Months Ended June 30, 2020 As Previously Reported Adjustments As Restated CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Net income $ 7,728 $ 627 $ 8,355 Reconciliation of net income to net cash provided by operating activities: Changes in operating assets and liabilities 38,711 (627) 38,084 Net cash provided by operating activities $ 61,764 $ 61,764

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2021
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES The carrying values of inventories are as follows ( in thousands ): June 30, 2021 December 31, 2020 Finished goods $ 105,763 $ 105,527 Work in process 22,076 17,021 Obsolescence reserve (24,392) (25,477) Inventories $ 103,447 $ 97,071

COSTS AND ESTIMATED PROFITS ON

COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS	6 Months Ended
	Jun. 30, 2021
Contractors [Abstract]
COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS	COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS Under our customized pump production and long-term water and wastewater project contracts in our IPS segment, amounts are billed as work progresses in accordance with agreed-upon contractual terms, upon various measures of performance, including achievement of certain milestones, completion of specified units, or completion of a contract. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. Our contract assets are presented as “Cost and estimated profits in excess of billings” on our condensed consolidated balance sheets. However, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities that are presented as “Billings in excess of costs and estimated profits” on our condensed consolidated balance sheets. Costs and estimated profits on uncompleted contracts and related amounts billed were as follows ( in thousands ): June 30, 2021 December 31, 2020 Costs incurred on uncompleted contracts $ 56,184 $ 36,969 Estimated profits, thereon 18,878 6,711 Total 75,062 43,680 Less: billings to date 60,641 29,315 Net $ 14,421 $ 14,365 Such amounts were included in the accompanying condensed Consolidated Balance Sheets for June 30, 2021 and December 31, 2020 under the following captions ( in thousands ): June 30, 2021 December 31, 2020 Costs and estimated profits in excess of billings $ 16,718 $ 18,459 Billings in excess of costs and estimated profits (2,300) (4,061) Translation adjustment 3 (33) Net $ 14,421 $ 14,365

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Our effective tax rate from continuing operations was 17.4 percent for the three months ended June 30, 2021 compared to a tax expense of 23.1 percent for the three months ended June 30, 2020. Compared to the U.S. statutory rate for the three months ended June 30, 2021, the effective tax rate was increased by state taxes, foreign taxes, nondeductible expenses, and uncertain tax positions recorded due to tax authorities’ aggressive auditing of research and development tax credits. The effective tax was decreased by research and development tax credits and other tax credits. Compared to the U.S. statutory rate for the three months ended June 30, 2020, the effective tax rate was increased by state taxes, foreign taxes, and nondeductible expenses and was partially offset by research and development tax credits and other tax credits. Our effective tax rate from continuing operations was a tax expense of 26.7 percent for the six months ended June 30, 2021 compared to a tax expense of 23.0 percent for the six months ended June 30, 2020. Compared to the U.S. statutory rate for the six months ended June 30, 2021, the effective tax rate was increased by state taxes, foreign taxes, nondeductible expenses, and uncertain tax positions recorded due to tax authorities’ aggressive auditing of research and development tax credits. The effective tax was decreased by research and development tax credits and other tax credits. Compared to the U.S. statutory rate for the six months ended June 30, 2020, the effective tax rate was increased by state taxes, foreign taxes, and nondeductible expenses and was partially offset by research and development tax credits and other tax credits. To the extent penalties and interest would be assessed on any underpayment of income tax, such accrued amounts would be classified as a component of income tax provision (benefit) in the financial statements consistent with the Company’s policy.

LONG-TERM DEBT

LONG-TERM DEBT	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT The components of the Company's long-term debt consisted of the following ( in thousands ): June 30, 2021 December 31, 2020 Carrying Value (1) Fair Value Carrying Value (1) Fair Value ABL Revolver $ — $ — $ — $ — Term Loan B 328,350 328,350 330,000 325,875 Total long-term debt 328,350 328,350 330,000 325,875 Less: current portion (3,300) (3,300) (3,300) (3,259) Long-term debt less current maturities $ 325,050 $ 325,050 $ 326,700 $ 322,616 (1) Carrying value amounts do not include unamortized debt issuance costs of $8.7 million and $9.6 million for June 30, 2021 and December 31, 2020, respectively . Credit Agreements On March 17, 2020, the Company entered into an Increase Agreement (the "Increase Agreement") that provided for a $135.0 million asset-backed revolving line of credit (the "ABL Revolver") a $50.0 million increase above the $85.0 million original revolver. The Increase Agreement amends and supplements that certain Loan and Security Agreement, dated as of August 29, 2017. As of June 30, 2021, the Company had no amount outstanding under the ABL Revolver and had $131.3 million of borrowing capacity, net of the impact of outstanding letters of credit. On December 23, 2020, DXP entered into a new seven year, $330 million Senior Secured Term Loan B (the “Term Loan B Agreement”), which replaced DXP’s previously existing Senior Secured Term Loan. The fair value measurements used by the Company are considered Level 2 inputs, as defined in the fair value hierarchy. The fair value estimates were based on quoted prices for identical or similar securities. The Company was in compliance with all financial covenants under the ABL Revolver and Term Loan B Agreements as of June 30, 2021.

EARNINGS PER SHARE DATA

EARNINGS PER SHARE DATA	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
EARNINGS PER SHARE DATA	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, 2021 2020 2021 2020 Basic: (Restated) (Restated) Weighted average shares outstanding 19,291 17,735 19,239 17,719 Net income attributable to DXP Enterprises, Inc. $ 8,119 $ 2,427 $ 8,490 $ 8,479 Convertible preferred stock dividend 22 22 45 45 Net income attributable to common shareholders $ 8,097 $ 2,405 $ 8,445 $ 8,434 Per share amount $ 0.42 $ 0.14 $ 0.44 $ 0.48 Diluted: Weighted average shares outstanding 19,291 17,735 19,239 17,719 Assumed conversion of convertible preferred stock 840 840 840 840 Total dilutive shares 20,131 18,575 20,079 18,559 Net income attributable to common shareholders $ 8,097 $ 2,405 $ 8,445 $ 8,434 Convertible preferred stock dividend 22 22 45 45 Net income attributable to DXP Enterprises, Inc. $ 8,119 $ 2,427 $ 8,490 $ 8,479 Per share amount $ 0.41 $ 0.13 $ 0.42 $ 0.45

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIESFrom time to time, the Company is a party to various legal proceedings arising in the ordinary course of business. While DXP is unable to predict the outcome of these lawsuits, it believes that the ultimate resolution will not have, either individually or in the aggregate, a material adverse effect on DXP's consolidated financial position, cash flows, or results of operations.

SEGMENT REPORTING

SEGMENT REPORTING	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
SEGMENT REPORTING	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, repair and operating 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, industrial supply, safety products and safety services categories. The Innovative Pumping Solutions segment fabricates and assembles custom-made pump packages, re-manufactures pumps, manufactures branded private label pumps and provides products and process lines for the water and wastewater treatment industries. 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 inter-segment eliminations. The following table sets out financial information related to the Company's segments excluding amortization ( in thousands ): Three Months Ended June 30, 2021 2020 (Restated) SC IPS SCS Total SC IPS SCS Total Product sales 1 $ 185,489 $ — $ 35,068 $ 220,557 $ 144,286 $ — $ 32,988 $ 177,274 Inventory services 2 — — 4,263 4,263 — — 4,086 4,086 Staffing services 3 24,144 — — 24,144 9,562 — — 9,562 Pump production and delivery 4 — 36,727 — 36,727 — 60,479 — 60,479 Total Revenue $ 209,633 $ 36,727 $ 39,331 $ 285,691 $ 153,848 $ 60,479 $ 37,074 $ 251,401 Income from operations $ 26,300 $ 4,803 $ 3,488 $ 34,591 $ 14,050 $ 8,565 $ 3,353 $ 25,968 Six Months Ended June 30, 2021 2020 (Restated) SC IPS SCS Total SC IPS SCS Total Product sales 1 $ 350,831 $ — $ 66,845 $ 417,676 $ 314,081 $ — $ 77,140 $ 391,221 Inventory services 2 — — 8,459 8,459 — — 8,311 8,311 Staffing services 3 45,171 — — 45,171 22,352 — — 22,352 Pump production and delivery 4 — 59,972 — 59,972 — 130,500 — 130,500 Total Revenue $ 396,002 $ 59,972 $ 75,304 $ 531,278 $ 336,433 $ 130,500 $ 85,451 $ 552,384 Income from operations $ 48,437 $ 5,751 $ 5,810 $ 59,998 $ 31,379 $ 18,993 $ 7,108 $ 57,480 1 Product sales that are recognized at a point in time. 2 Inventory management services that are recognized over the contract life. 3 Staffing services that are invoiced on a day-rate basis. 4 Custom pump production and delivery is recognized over time. 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, 2021 2020 2021 2020 (Restated) (Restated) Operating income for reportable segments $ 34,591 $ 25,968 $ 59,998 $ 57,480 Adjustment for: Amortization of intangible assets 4,306 3,046 8,452 6,243 Corporate expenses 15,439 15,784 30,467 32,780 Income from operations $ 14,846 $ 7,138 21,079 18,457 Interest expense 5,337 3,930 10,580 8,307 Other (income) expense, net (105) 133 (535) (701) Income before income taxes $ 9,614 $ 3,075 $ 11,034 $ 10,851

BUSINESS ACQUISITIONS

BUSINESS ACQUISITIONS	6 Months Ended
	Jun. 30, 2021
Business Combinations [Abstract]
BUSINESS ACQUISITIONS	BUSINESS ACQUISITIONS On April 30, 2021, the Company completed the acquisition of Carter & Verplanck, LLC (“CVI”), a distributor of products and services exclusively focused on serving the water and wastewater markets. The acquisition of CVI was funded with cash on hand as well as issuing DXP's common stock. The Company paid approximately $49.7 million in cash and stock. For the six months ended June 30, 2021, CVI contributed sales of $5.2 million and net income of $1.1 million. A majority of CVI's sales are project-based work under the percentage-of-completion accounting model. As a result, CVI has been included in the IPS segment. Purchase Price Consideration (in millions) Total Consideration Cash payments $ 40.8 Fair value of stock issued 8.9 Total purchase price consideration $ 49.7 The fair value of the approximately 352,000 common shares issued was determined based on the closing market price of the Company’s common shares on the acquisition date, adjusted for holding restrictions following consummation. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date: (In thousands) Accounts receivable $ 4,397 Costs in excess of billings 2,484 Non-compete agreements 730 Customer relationships 10,676 Goodwill 38,612 Property and equipment 85 Other assets 2,456 Assets acquired $ 59,440 Current liabilities assumed (9,781) Net assets acquired $ 49,659 The following represents the pro forma unaudited revenue and earnings as if CVI had been included in the consolidated results of the Company for the six months ended June 20, 2020 and 2021, respectively: Six months Ended June 30, 2020 2021 (in thousands/unaudited) Revenue $ 558,630 $ 536,576 Net income $ 7,938 $ 8,010 Of the $50 million of acquired intangible assets, $0.7 million was provisionally assigned to non-compete agreements that are subject to amortization over 5 years, coincident with the terms of the agreements. In addition, $10.7 million was assigned to customer relationships, and will be amortized over a period of 8 years. The $38.6 million of goodwill was assigned to the Innovative Pumping Solutions segment. The goodwill recognized is attributable primarily to expected synergies and the assembled workforce of CVI. None of the goodwill is expected to be deductible for income tax purposes. The fair value of accounts receivables acquired is $4.4 million, which approximated book value. The Company recognized less than $200,000 of acquisition related costs that were expensed in the current period. These costs are included in the consolidated income statement in Selling, General and Administrative costs. The Company also recognized

SHARE REPURCHASE

SHARE REPURCHASE	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
SHARE REPURCHASE	SHARE REPURCHASE On May 12, 2021, the Company announced that its Board of Directors authorized a share repurchase program (the “program”) under which up to $85.0 million or 1.5 million shares of its outstanding common stock may be acquired in the open market over the next 24 months at the discretion of management. During the three and six months ended June 30, 2021, the Company repurchased 1.0 million shares of common stock for $29.2 million at an average price of $28.77 per share. Total consideration paid to repurchase the shares was recorded in shareholders’ equity as treasury shares. Such consideration was funded with existing cash balances and an agreement to pay sellers over four equal installments beginning on June 15, 2021. The remaining three installments totaling $20.4 million were included in other current liabilities as of June 30, 2021. Three Months Ended June 30, Six Months Ended June 30, (in millions, except per share data) 2021 2021 Total number of shares purchased 1.0 1.0 Amount paid $ 29.2 $ 29.2 Average price paid per share $ 28.77 $ 28.77

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS On July 1, 2021, the Company completed the acquisition of Process Machinery, LLC (“Process Machinery”), a distributor of pumps, mechanical seals, tank, filters and related process equipment that focuses on serving the chemical, power, pulp & paper, mining, metals and food processing industries. The acquisition of Process Machinery was funded with cash on hand as well as issuing DXP's common stock. The Company paid approximately $10 million in cash and stock. In September 2021, the Company completed the acquisition of Premier Water, a distributor and provider of products and services exclusively focused on serving the water and wastewater treatment markets in North and South Carolina.The acquisition was also funded with a combination of cash on hand and stock. The Company paid approximately $6 million.

RECENT ACCOUNTING PRONOUNCEME_2

RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company's financial statements are prepared in accordance with generally accepted accounting principles 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/A for the year ended December 31, 2020. For a more complete discussion of our significant accounting policies and business practices, refer to the consolidated Annual Report on Form 10-K/A filed with the Securities and Exchange Commission on October 22, 2021. The results of operations for the six months ended June 30, 2021 are not necessarily indicative of results expected for the full fiscal year. In the opinion of management, these condensed consolidated financial statements contain all adjustments necessary to present fairly the Company's condensed consolidated statements of operations and comprehensive income for the six months ended June 30, 2021 and June 30, 2020, condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020, condensed consolidated statements of cash flows for the six months ended June 30, 2021 and June 30, 2020, and condensed consolidated statement of equity for the six months ended June 30, 2021 and June 30, 2020. All such adjustments represent normal recurring items.
Consolidation	All inter-company accounts and transactions have been eliminated upon consolidation.
Accounting Pronouncements Not Yet Adopted	Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This update provides optional expedients and exceptions for applying generally accepted accounting principles to certain contract modifications and hedging relationships that reference London Inter-Bank Offered Rate (LIBOR) or another reference rate expected to be discontinued. The guidance is effective upon issuance and generally can be applied through December 31, 2022. The Company is currently evaluating the potential impact of this ASU on the financial statements. All other new accounting pronouncements that have been issued, but not yet effective, are currently being evaluated and at this time are not expected to have a material impact on our financial position or results of operations.

RESTATEMENT OF PREVIOUSLY ISS_2

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Tables)	6 Months Ended
	Jun. 30, 2021
Accounting Changes and Error Corrections [Abstract]
Schedule of Impact of Restatement Adjustments on Condensed Consolidated Financial Statements	The following tables presents the impact of the restatement adjustments described below on net income and comprehensive income for the quarter and the six months ended June 30, 2020: For the Three Months Ended June 30, 2020 For the Six Months Ended June 30, 2020 As Previously As Previously Reported Adjustments As Restated Reported Adjustments As Restated CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS Sales $ 251,401 $ 251,401 $ 552,384 $ 552,384 Cost of sales 181,705 (385) 181,320 398,703 486 399,189 Gross profit 69,696 385 70,081 153,681 (486) 153,195 Selling, general and administrative costs 62,943 — 62,943 136,013 (1,275) 134,738 Income before income taxes 2,690 385 3,075 10,062 789 10,851 Provision for income taxes 610 100 710 2,334 162 2,496 Net income $ 2,080 $ 285 $ 2,365 $ 7,728 $ 627 $ 8,355 Basic earnings per share $ 0.12 $ 0.14 $ 0.44 $ 0.48 Diluted earnings per share $ 0.12 $ 0.13 $ 0.42 $ 0.45 For the Three Months Ended June 30, 2020 For the Six Months Ended June 30, 2020 As previously As previously Reported Adjustments As Restated Reported Adjustments As Restated CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Net income $ 2,080 $ 285 $ 2,365 $ 7,728 $ 627 $ 8,355 Total comprehensive income $ 3,475 $ 285 $ 3,760 $ 7,960 $ 627 $ 8,587 The following table presents the impact of the restatement adjustments on the Company’s previously reported balance sheet as of December 31, 2020 on a condensed basis: As As BALANCE SHEET (AT DECEMBER 31, 2020): Reported Adjustments Restated Cash and restricted cash $ 117,444 $ 1,975 $ 119,419 Accounts Receivable 163,429 3,512 166,941 Inventory 97,071 — 97,071 Federal income taxes receivable 5,632 (2,645) 2,987 Goodwill 248,339 13,428 261,767 Total Assets $ 851,861 $ 16,270 $ 868,131 Accounts Payable 75,744 (10,895) 64,849 Other current liabilities 20,834 13,895 34,729 Total Liabilities $ 503,995 $ 3,000 $ 506,995 Cumulative Translation Adjustment (21,842) 3,829 (18,013) Retained Earnings 176,637 9,441 186,078 Equity 347,866 13,270 361,136 Total Liabilities & Equity $ 851,861 $ 16,270 $ 868,131 The table below presents the impact to Operating Cash Flows on a Condensed Basis as a result of the restatement for the period ended June 30, 2020: For the Six Months Ended June 30, 2020 As Previously Reported Adjustments As Restated CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Net income $ 7,728 $ 627 $ 8,355 Reconciliation of net income to net cash provided by operating activities: Changes in operating assets and liabilities 38,711 (627) 38,084 Net cash provided by operating activities $ 61,764 $ 61,764

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2021
Inventory Disclosure [Abstract]
Schedule of Carrying Values of Inventories	The carrying values of inventories are as follows ( in thousands ): June 30, 2021 December 31, 2020 Finished goods $ 105,763 $ 105,527 Work in process 22,076 17,021 Obsolescence reserve (24,392) (25,477) Inventories $ 103,447 $ 97,071

COSTS AND ESTIMATED PROFITS O_2

COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS (Tables)	6 Months Ended
	Jun. 30, 2021
Contractors [Abstract]
Schedule of Costs and Estimated Earnings on Uncompleted Contracts Included in Condensed Consolidated Balance Sheets	Costs and estimated profits on uncompleted contracts and related amounts billed were as follows ( in thousands ): June 30, 2021 December 31, 2020 Costs incurred on uncompleted contracts $ 56,184 $ 36,969 Estimated profits, thereon 18,878 6,711 Total 75,062 43,680 Less: billings to date 60,641 29,315 Net $ 14,421 $ 14,365 Such amounts were included in the accompanying condensed Consolidated Balance Sheets for June 30, 2021 and December 31, 2020 under the following captions ( in thousands ): June 30, 2021 December 31, 2020 Costs and estimated profits in excess of billings $ 16,718 $ 18,459 Billings in excess of costs and estimated profits (2,300) (4,061) Translation adjustment 3 (33) Net $ 14,421 $ 14,365

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Schedule of Components of Company's Long-term Debt	The components of the Company's long-term debt consisted of the following ( in thousands ): June 30, 2021 December 31, 2020 Carrying Value (1) Fair Value Carrying Value (1) Fair Value ABL Revolver $ — $ — $ — $ — Term Loan B 328,350 328,350 330,000 325,875 Total long-term debt 328,350 328,350 330,000 325,875 Less: current portion (3,300) (3,300) (3,300) (3,259) Long-term debt less current maturities $ 325,050 $ 325,050 $ 326,700 $ 322,616 (1) Carrying value amounts do not include unamortized debt issuance costs of $8.7 million and $9.6 million for June 30, 2021 and December 31, 2020, respectively .

EARNINGS PER SHARE DATA (Tables

EARNINGS PER SHARE DATA (Tables)	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Schedule of 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, 2021 2020 2021 2020 Basic: (Restated) (Restated) Weighted average shares outstanding 19,291 17,735 19,239 17,719 Net income attributable to DXP Enterprises, Inc. $ 8,119 $ 2,427 $ 8,490 $ 8,479 Convertible preferred stock dividend 22 22 45 45 Net income attributable to common shareholders $ 8,097 $ 2,405 $ 8,445 $ 8,434 Per share amount $ 0.42 $ 0.14 $ 0.44 $ 0.48 Diluted: Weighted average shares outstanding 19,291 17,735 19,239 17,719 Assumed conversion of convertible preferred stock 840 840 840 840 Total dilutive shares 20,131 18,575 20,079 18,559 Net income attributable to common shareholders $ 8,097 $ 2,405 $ 8,445 $ 8,434 Convertible preferred stock dividend 22 22 45 45 Net income attributable to DXP Enterprises, Inc. $ 8,119 $ 2,427 $ 8,490 $ 8,479 Per share amount $ 0.41 $ 0.13 $ 0.42 $ 0.45

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Schedule of Financial Information Regarding Company's Segments	The following table sets out financial information related to the Company's segments excluding amortization ( in thousands ): Three Months Ended June 30, 2021 2020 (Restated) SC IPS SCS Total SC IPS SCS Total Product sales 1 $ 185,489 $ — $ 35,068 $ 220,557 $ 144,286 $ — $ 32,988 $ 177,274 Inventory services 2 — — 4,263 4,263 — — 4,086 4,086 Staffing services 3 24,144 — — 24,144 9,562 — — 9,562 Pump production and delivery 4 — 36,727 — 36,727 — 60,479 — 60,479 Total Revenue $ 209,633 $ 36,727 $ 39,331 $ 285,691 $ 153,848 $ 60,479 $ 37,074 $ 251,401 Income from operations $ 26,300 $ 4,803 $ 3,488 $ 34,591 $ 14,050 $ 8,565 $ 3,353 $ 25,968 Six Months Ended June 30, 2021 2020 (Restated) SC IPS SCS Total SC IPS SCS Total Product sales 1 $ 350,831 $ — $ 66,845 $ 417,676 $ 314,081 $ — $ 77,140 $ 391,221 Inventory services 2 — — 8,459 8,459 — — 8,311 8,311 Staffing services 3 45,171 — — 45,171 22,352 — — 22,352 Pump production and delivery 4 — 59,972 — 59,972 — 130,500 — 130,500 Total Revenue $ 396,002 $ 59,972 $ 75,304 $ 531,278 $ 336,433 $ 130,500 $ 85,451 $ 552,384 Income from operations $ 48,437 $ 5,751 $ 5,810 $ 59,998 $ 31,379 $ 18,993 $ 7,108 $ 57,480 1 Product sales that are recognized at a point in time. 2 Inventory management services that are recognized over the contract life. 3 Staffing services that are invoiced on a day-rate basis. 4 Custom pump production and delivery is recognized over time.
Schedule of 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, 2021 2020 2021 2020 (Restated) (Restated) Operating income for reportable segments $ 34,591 $ 25,968 $ 59,998 $ 57,480 Adjustment for: Amortization of intangible assets 4,306 3,046 8,452 6,243 Corporate expenses 15,439 15,784 30,467 32,780 Income from operations $ 14,846 $ 7,138 21,079 18,457 Interest expense 5,337 3,930 10,580 8,307 Other (income) expense, net (105) 133 (535) (701) Income before income taxes $ 9,614 $ 3,075 $ 11,034 $ 10,851

BUSINESS ACQUISITIONS (Tables)

BUSINESS ACQUISITIONS (Tables)	6 Months Ended
	Jun. 30, 2021
Business Combinations [Abstract]
Schedule of Purchase Price Consideration	Purchase Price Consideration (in millions) Total Consideration Cash payments $ 40.8 Fair value of stock issued 8.9 Total purchase price consideration $ 49.7
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed	The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date: (In thousands) Accounts receivable $ 4,397 Costs in excess of billings 2,484 Non-compete agreements 730 Customer relationships 10,676 Goodwill 38,612 Property and equipment 85 Other assets 2,456 Assets acquired $ 59,440 Current liabilities assumed (9,781) Net assets acquired $ 49,659
Schedule of Pro Forma Unaudited Revenue and Earnings Included in Consolidated Results	The following represents the pro forma unaudited revenue and earnings as if CVI had been included in the consolidated results of the Company for the six months ended June 20, 2020 and 2021, respectively: Six months Ended June 30, 2020 2021 (in thousands/unaudited) Revenue $ 558,630 $ 536,576 Net income $ 7,938 $ 8,010

SHARE REPURCHASE (Tables)

SHARE REPURCHASE (Tables)	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Schedule of Share Repurchase	Three Months Ended June 30, Six Months Ended June 30, (in millions, except per share data) 2021 2021 Total number of shares purchased 1.0 1.0 Amount paid $ 29.2 $ 29.2 Average price paid per share $ 28.77 $ 28.77

THE COMPANY (Details)

THE COMPANY (Details)	6 Months Ended
	Jun. 30, 2021segment
THE COMPANY [Abstract]
Number of business segments	3

RESTATEMENT OF PREVIOUSLY ISS_3

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Impact of Restatement Adjustments on Condensed Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021		Jun. 30, 2020
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Sales	$ 285,691	$ 251,401	$ 531,278		$ 552,384
Cost of sales	200,413	181,320	374,370		399,189
Gross profit	85,278	70,081	156,908		153,195
Selling, general and administrative costs	70,432	62,943	135,829		134,738
Income before income taxes	9,614	3,075	11,034		10,851
Provision for income taxes	1,684	710	2,945		2,496
Net income	$ 7,930	$ 2,365	$ 8,089		$ 8,355
Basic (in dollars per share)	$ 0.42	$ 0.14	$ 0.44		$ 0.48
Diluted (in dollars per share)	$ 0.41	$ 0.13	$ 0.42	[1]	$ 0.45
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Sales		$ 251,401			$ 552,384
Cost of sales		181,705			398,703
Gross profit		69,696			153,681
Selling, general and administrative costs		62,943			136,013
Income before income taxes		2,690			10,062
Provision for income taxes		610			2,334
Net income		$ 2,080			$ 7,728
Basic (in dollars per share)		$ 0.12			$ 0.44
Diluted (in dollars per share)		$ 0.12			$ 0.42
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Sales
Cost of sales		(385)			486
Gross profit		385			(486)
Selling, general and administrative costs		0			(1,275)
Income before income taxes		385			789
Provision for income taxes		100			162
Net income		$ 285			$ 627
Basic (in dollars per share)
Diluted (in dollars per share)
[1]

RESTATEMENT OF PREVIOUSLY ISS_4

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Impact of Restatement Adjustments on Condensed Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income	$ 7,930	$ 2,365	$ 8,089	$ 8,355
Comprehensive income	$ 9,257	3,760	$ 10,693	8,587
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income		2,080		7,728
Comprehensive income		3,475		7,960
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income		285		627
Comprehensive income		$ 285		$ 627

RESTATEMENT OF PREVIOUSLY ISS_5

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Narrative (Details) $ in Thousands	Dec. 31, 2020USD ($)entity	Jun. 30, 2021USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)	Jun. 30, 2020USD ($)	Dec. 31, 2020USD ($)
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Increase in cash and restricted cash				$ (40,159)	$ 24,443
Decrease in cumulative translation adjustment and other comprehensive income		$ (1,327)	$ (1,395)	$ (2,604)	$ (232)
Adjustments | Unvouchered Purchase Orders
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net reduction in accounts payable						$ 12,200
Adjustments | Reclassification
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Decrease in cumulative translation adjustment and other comprehensive income	$ 1,800
Increase in trade receivables	$ 1,800
2020 Acquisitions
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Number of businesses acquired | entity	4
Number of businesses acquired eligible for true-up consideration | entity	2
2020 Acquisitions | Adjustments | True-up Consideration
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accrual for true-up consideration	$ 13,400
Increase in goodwill from acquisitions	13,400
2020 Acquisitions | Adjustments | Reclassification
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Increase in cash and restricted cash	2,000
Decrease in cumulative translation adjustment and other comprehensive income	$ 2,000

RESTATEMENT OF PREVIOUSLY ISS_6

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Impact of Restatement Adjustments on Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cash and restricted cash	$ 79,260		$ 119,419	$ 78,769		$ 54,326
Accounts Receivable	193,657		166,941
Inventory	103,447		97,071
Federal income taxes receivable	3,689		2,987
Goodwill	300,643		261,767
Total assets	901,580		868,131
Accounts Payable	80,208		64,849
Other current liabilities	50,438		34,729
Total liabilities	547,471		506,995
Cumulative Translation Adjustment	(15,409)		(18,013)
Retained earnings	194,523		186,078
Total equity	354,109	$ 362,412	361,136	$ 368,456	$ 362,546	$ 354,932
Total liabilities and equity	$ 901,580		868,131
As Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cash and restricted cash			117,444
Accounts Receivable			163,429
Inventory			97,071
Federal income taxes receivable			5,632
Goodwill			248,339
Total assets			851,861
Accounts Payable			75,744
Other current liabilities			20,834
Total liabilities			503,995
Cumulative Translation Adjustment			(21,842)
Retained earnings			176,637
Total equity			347,866
Total liabilities and equity			851,861
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cash and restricted cash			1,975
Accounts Receivable			3,512
Inventory			0
Federal income taxes receivable			(2,645)
Goodwill			13,428
Total assets			16,270
Accounts Payable			(10,895)
Other current liabilities			13,895
Total liabilities			3,000
Cumulative Translation Adjustment			3,829
Retained earnings			9,441
Total equity			13,270
Total liabilities and equity			$ 16,270

RESTATEMENT OF PREVIOUSLY ISS_7

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Impact of Restatement Adjustments on Consolidated Cash Flows Statements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 7,930	$ 2,365	$ 8,089	$ 8,355
Changes in operating assets and liabilities:
Net change in operating assets and liabilities			(7,201)	38,084
Net cash provided by operating activities			$ 16,206	61,764
As Previously Reported
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		2,080		7,728
Changes in operating assets and liabilities:
Net change in operating assets and liabilities				38,711
Net cash provided by operating activities				61,764
Adjustments
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$ 285		627
Changes in operating assets and liabilities:
Net change in operating assets and liabilities				(627)
Net cash provided by operating activities

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Finished goods	$ 105,763	$ 105,527
Work in process	22,076	17,021
Obsolescence reserve	(24,392)	(25,477)
Inventories	$ 103,447	$ 97,071

COSTS AND ESTIMATED PROFITS O_3

COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Schedule of costs and estimated earnings on uncompleted contracts [Abstract]
Costs incurred on uncompleted contracts	$ 56,184	$ 36,969
Estimated profits, thereon	18,878	6,711
Total	75,062	43,680
Less: billings to date	60,641	29,315
Net	14,421	14,365
Schedule of Costs and Estimated Earnings on Uncompleted Contracts Included in Condensed Consolidated Balance Sheets [Abstract]
Costs and estimated profits in excess of billings	16,718	18,459
Billings in excess of costs and estimated profits	(2,300)	(4,061)
Translation adjustment	3	(33)
Net	14,421	$ 14,365
Balances previously classified as contract liabilities at the beginning of the period that have shipped	$ 3,800

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Effective tax rate from continuing operations	17.40%	23.10%	26.70%	23.00%

LONG-TERM DEBT - Components of

LONG-TERM DEBT - Components of Long-term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Borrowings [Abstract]
Less: current portion	$ (3,300)	$ (3,300)
Unamortized debt issuance costs	8,700	9,600
Carrying Value
Borrowings [Abstract]
Total long-term debt	328,350	330,000
Less: current portion	(3,300)	(3,300)
Long-term debt less current maturities	325,050	326,700
Carrying Value | ABL Revolver
Borrowings [Abstract]
Total long-term debt	0	0
Carrying Value | Term Loan B
Borrowings [Abstract]
Total long-term debt	328,350	330,000
Fair Value
Borrowings [Abstract]
Total long-term debt	328,350	325,875
Less: current portion	(3,300)	(3,259)
Long-term debt less current maturities	325,050	322,616
Fair Value | ABL Revolver
Borrowings [Abstract]
Total long-term debt	0	0
Fair Value | Term Loan B
Borrowings [Abstract]
Total long-term debt	$ 328,350	$ 325,875

LONG-TERM DEBT - Narrative (Det

LONG-TERM DEBT - Narrative (Details) - USD ($)	Dec. 23, 2020	Mar. 17, 2020	Jun. 30, 2021	Aug. 29, 2017
Asset-backed Revolving Line of Credit | ABL Revolver
Debt Instrument [Line Items]
Maximum borrowing capacity under credit agreement		$ 135,000,000		$ 85,000,000
Increase in borrowing capacity under credit agreement		$ 50,000,000
Amount outstanding under credit facility			$ 0
Borrowing capacity, including impact of letter of credit			$ 131,300,000
Secured Debt | Term Loan B
Debt Instrument [Line Items]
Debt term	7 years
Debt issued	$ 330,000,000

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, 2021	Jun. 30, 2020	Jun. 30, 2021		Jun. 30, 2020
Basic:
Weighted average shares outstanding (in shares)	19,291	17,735	19,239		17,719
Net income attributable to DXP Enterprises, Inc.	$ 8,119	$ 2,427	$ 8,490		$ 8,479
Convertible preferred stock dividend	22	22	45		45
Net income attributable to common shareholders	$ 8,097	$ 2,405	$ 8,445		$ 8,434
Per share amount (in dollars per share)	$ 0.42	$ 0.14	$ 0.44		$ 0.48
Diluted:
Weighted average shares outstanding (in shares)	19,291	17,735	19,239		17,719
Assumed conversion of convertible preferred stock (in shares)	840	840	840		840
Diluted (in shares)	20,131	18,575	20,079	[1]	18,559
Net income attributable to common shareholders	$ 8,097	$ 2,405	$ 8,445		$ 8,434
Convertible preferred stock dividend	22	22	45		45
Net income attributable to DXP Enterprises, Inc.	$ 8,119	$ 2,427	$ 8,490		$ 8,479
Diluted (in dollars per share)	$ 0.41	$ 0.13	$ 0.42	[1]	$ 0.45
[1]

SEGMENT REPORTING - Financial I

SEGMENT REPORTING - Financial Information of Company's Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	$ 285,691	$ 251,401	$ 531,278	$ 552,384
Income from operations	34,591	25,968	59,998	57,480
Product sales | Recognized at a point in time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	220,557	177,274	417,676	391,221
Inventory services | Recognized over time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	4,263	4,086	8,459	8,311
Staffing services | Recognized over time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	24,144	9,562	45,171	22,352
Pump production and delivery | Recognized over time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	36,727	60,479	59,972	130,500
SC
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	209,633	153,848	396,002	336,433
Income from operations	26,300	14,050	48,437	31,379
SC | Product sales | Recognized at a point in time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	185,489	144,286	350,831	314,081
SC | Inventory services | Recognized over time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	0	0	0	0
SC | Staffing services | Recognized over time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	24,144	9,562	45,171	22,352
SC | Pump production and delivery | Recognized over time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	0	0	0	0
IPS
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	36,727	60,479	59,972	130,500
Income from operations	4,803	8,565	5,751	18,993
IPS | Product sales | Recognized at a point in time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	0	0	0	0
IPS | Inventory services | Recognized over time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	0	0	0	0
IPS | Staffing services | Recognized over time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	0	0	0	0
IPS | Pump production and delivery | Recognized over time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	36,727	60,479	59,972	130,500
SCS
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	39,331	37,074	75,304	85,451
Income from operations	3,488	3,353	5,810	7,108
SCS | Product sales | Recognized at a point in time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	35,068	32,988	66,845	77,140
SCS | Inventory services | Recognized over time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	4,263	4,086	8,459	8,311
SCS | Staffing services | Recognized over time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	0	0	0	0
SCS | Pump production and delivery | Recognized over time
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	$ 0	$ 0	$ 0	$ 0

SEGMENT REPORTING - Reconciliat

SEGMENT REPORTING - Reconciliation of Operating Income to Consolidated Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information, Operating Income (Loss) [Abstract]
Operating income for reportable segments	$ 34,591	$ 25,968	$ 59,998	$ 57,480
Adjustment for:
Amortization of intangible assets	4,306	3,046	8,452	6,243
Corporate expenses	15,439	15,784	30,467	32,780
Income from operations	14,846	7,138	21,079	18,457
Interest expense	5,337	3,930	10,580	8,307
Other (income) expense, net	(105)	133	(535)	(701)
Income before income taxes	$ 9,614	$ 3,075	$ 11,034	$ 10,851

BUSINESS ACQUISITIONS - Narrati

BUSINESS ACQUISITIONS - Narrative (Details) - USD ($) shares in Thousands	Apr. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill		$ 300,643,000	$ 261,767,000
CVI
Business Acquisition [Line Items]
Cash and stock paid for acquisition	$ 49,700,000
Sales contributed by acquisition		5,200,000
Net income contributed by acquisition		1,100,000
Stock issued (in shares)	352
Acquired intangible assets	$ 50,000,000
Goodwill	38,612,000
Goodwill expected to be deductible for income tax purposes	0
Fair value of accounts receivables	4,397,000
Acquisition related costs		$ 200,000
CVI | Non-compete agreements
Business Acquisition [Line Items]
Acquired intangible assets	$ 700,000
Amortization period of acquired intangible assets	5 years
CVI | Customer relationships
Business Acquisition [Line Items]
Acquired intangible assets	$ 10,700,000
Amortization period of acquired intangible assets	8 years

BUSINESS ACQUISITIONS - Purchas

BUSINESS ACQUISITIONS - Purchase Price Consideration (Details) - CVI $ in Millions	Apr. 30, 2021USD ($)
Business Acquisition [Line Items]
Cash payments	$ 40.8
Fair value of stock issued	8.9
Total purchase price consideration	$ 49.7

BUSINESS ACQUISITIONS - Estimat

BUSINESS ACQUISITIONS - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Apr. 30, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill	$ 300,643		$ 261,767
CVI
Business Acquisition [Line Items]
Accounts receivable		$ 4,397
Costs in excess of billings		2,484
Goodwill		38,612
Property and equipment		85
Other assets		2,456
Assets acquired		59,440
Current liabilities assumed		(9,781)
Net assets acquired		49,659
CVI | Non-compete agreements
Business Acquisition [Line Items]
Finite-lived intangibles		730
CVI | Customer relationships
Business Acquisition [Line Items]
Finite-lived intangibles		$ 10,676

BUSINESS ACQUISITIONS - Pro For

BUSINESS ACQUISITIONS - Pro Forma Unaudited Revenues and Earnings Included in Consolidated Results (Details) - CVI - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Revenue	$ 536,576	$ 558,630
Net income	$ 8,010	$ 7,938

SHARE REPURCHASE - Narrative (D

SHARE REPURCHASE - Narrative (Details)	May 12, 2021USD ($)installmentshares	Jun. 30, 2021USD ($)installment$ / sharesshares	Jun. 30, 2021USD ($)installment$ / sharesshares	Jun. 30, 2020USD ($)
Class of Stock [Line Items]
Purchase of treasury stock		$ 29,174,000	$ 29,174,000
Stock repurchase, remaining amount included in other current liabilities			$ 20,405,000	$ 0
Program
Class of Stock [Line Items]
Share repurchase period	24 months
Program | Common stock
Class of Stock [Line Items]
Share repurchase, amount authorized	$ 85,000,000
Shares repurchase, shares authorized (in shares) | shares	1,500,000
Total number of shares repurchased (in shares) | shares		1,000,000	1,000,000
Purchase of treasury stock		$ 29,200,000	$ 29,200,000
Average price paid per share (in dollars per share) | $ / shares		$ 28.77	$ 28.77
Stock repurchase, number of installments | installment	4	3	3
Stock repurchase, remaining amount included in other current liabilities			$ 20,400,000

SHARE REPURCHASE (Details)

SHARE REPURCHASE (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021
Class of Stock [Line Items]
Amount paid	$ 29,174	$ 29,174
Program | Common stock
Class of Stock [Line Items]
Total number of shares repurchased (in shares)	1	1
Amount paid	$ 29,200	$ 29,200
Average price paid per share (in dollars per share)	$ 28.77	$ 28.77

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent Event - USD ($) $ in Millions	Jul. 01, 2021	Sep. 30, 2021
Process Machinery
Subsequent Event [Line Items]
Cash and stock paid for acquisition	$ 10
Premier Water
Subsequent Event [Line Items]
Cash and stock paid for acquisition		$ 6