DXP Enterprises (DXPE) 10-Q 9 Aug 23 2023 Q2 Quarterly report Financial data

COVER

COVER - shares	6 Months Ended
	Jun. 30, 2023	Aug. 04, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
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		16,727,114
Entity Central Index Key	0001020710
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
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, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement and Statement of Comprehensive Income [Abstract]
Sales	$ 428,040	$ 367,812	$ 852,307	$ 687,223
Cost of sales	296,188	263,550	595,414	488,076
Gross profit	131,852	104,262	256,893	199,147
Selling, general and administrative expenses	94,372	78,342	184,014	151,667
Income from operations	37,480	25,920	72,879	47,480
Other (income) expense, net	(242)	839	(712)	1,377
Interest expense	11,863	5,615	23,384	10,777
Income before income taxes	25,859	19,466	50,207	35,326
Provision for income tax expense	6,805	4,973	13,573	8,305
Net income	19,054	14,493	36,634	27,021
Net income (loss) attributable to noncontrolling interest	0	60	0	(53)
Net income attributable to DXP Enterprises, Inc.	19,054	14,433	36,634	27,074
Preferred stock dividend	22	22	45	45
Net income attributable to common shareholders	19,032	14,411	36,589	27,029
Net income	19,054	14,493	36,634	27,021
Currency translation adjustments	659	(3,591)	757	(1,922)
Comprehensive income	$ 19,713	$ 10,902	$ 37,391	$ 25,099
Earnings per share (Note 9):
Basic (in dollars per share)	$ 1.11	$ 0.77	$ 2.10	$ 1.45
Diluted (in dollars per share)	$ 1.06	$ 0.74	$ 2.01	$ 1.39
Weighted average common shares outstanding:
Basic (in shares)	17,211	18,766	17,402	18,651
Diluted (in shares)	18,051	19,606	18,242	19,491

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash	$ 15,533	$ 46,026
Restricted cash	91	91
Accounts receivable, net of allowance of $8,495 and $7,610, respectively	318,651	320,880
Inventories	104,950	101,392
Costs and estimated profits in excess of billings	46,770	23,588
Prepaid expenses and other current assets	15,274	21,644
Income taxes receivable	7,698	2,493
Total current assets	508,967	516,114
Property and equipment, net	47,538	45,964
Goodwill	342,273	333,759
Other intangible assets, net	72,466	79,585
Operating lease right of use assets, net	54,051	57,402
Other long-term assets	9,138	4,456
Total assets	1,034,433	1,037,280
Current liabilities:
Current maturities of debt	4,369	4,369
Trade accounts payable	93,978	100,784
Accrued wages and benefits	28,563	26,260
Customer advances	15,555	20,128
Billings in excess of costs and estimated profits	5,333	10,411
Short-term operating lease liabilities	17,324	18,083
Other current liabilities	42,843	32,866
Total current liabilities	207,965	212,901
Long-term debt, net of unamortized debt issuance costs	408,430	409,205
Long-term operating lease liabilities	37,650	40,189
Other long-term liabilities	8,718	4,701
Deferred income taxes liability	2,205	4,892
Total long-term liabilities	457,003	458,987
Total liabilities	664,968	671,888
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; 16,788,711 and 17,690,069 outstanding, respectively	345	345
Additional paid-in capital	214,852	213,937
Retained earnings	287,138	250,549
Accumulated other comprehensive loss	(30,918)	(31,675)
Treasury stock, at cost 3,523,707 and 2,435,352 shares, respectively	(101,968)	(67,780)
Total DXP Enterprises, Inc. equity	369,465	365,392
Total liabilities and equity	$ 1,034,433	$ 1,037,280

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Allowance for accounts receivable	$ 8,495	$ 7,610
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)	16,788,711	17,690,069
Treasury stock, at cost (shares)	3,523,707	2,435,352
Series A preferred stock
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
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, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 36,634	$ 27,021
Reconciliation of net income to net cash provided by operating activities:
Depreciation	4,145	5,006
Amortization of intangible assets and deferred financing costs	10,749	9,742
Provision for credit losses	1,001	314
Payment of contingent consideration liability in excess of acquisition-date fair value	(79)	0
Fair value adjustment on contingent consideration	839	1,689
Restricted stock compensation expense	1,347	863
Deferred income taxes	(6,313)	1,610
Changes in operating assets and liabilities:
Accounts receivables, net	3,815	(50,616)
Costs and estimated profits in excess of billings	(23,151)	(8,466)
Accounts payable and accrued expenses	1,721	42,030
Prepaid expenses and other assets	5,226	(3,328)
Inventories	(3,179)	(15,754)
Billings in excess of costs and estimated profits	(5,095)	(1,502)
Other long-term liabilities	(3,643)	(2,923)
Net cash provided by operating activities	24,017	5,686
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(5,617)	(1,848)
Acquisition of businesses, net of cash acquired	(8,488)	(44,117)
Net cash used in investing activities	(14,105)	(45,965)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on asset-backed credit facility	7,870	231,968
Repayments on asset-backed credit facility	(7,870)	(202,844)
Repayments under term loan facility	(2,184)	(1,650)
Payment for acquisition contingent consideration liability	(3,921)	0
Preferred stock dividends paid	(45)	(45)
Shares repurchased held in treasury	(33,583)	(15,116)
Payment for employee taxes withheld from stock awards	(432)	(290)
Net cash (used in) provided by financing activities	(40,165)	12,023
Effect of foreign currency on cash	(240)	(159)
Net change in cash and restricted cash	(30,493)	(28,415)
Cash and restricted cash at beginning of period	46,117	49,080
Cash and restricted cash at end of period	15,624	20,665
Supplemental schedule of non-cash investing and financing activities:
Shares issued for acquisitions	0	4,744
Purchase of treasury stock	$ (605)	$ 0

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Preferred stock Series A preferred stock	Preferred stock Series B preferred stock	Common stock	Paid-in capital	Retained earnings	Treasury stock	Non controlling interest	Accum other comp loss
Beginning Balance at Dec. 31, 2021	$ 346,727	$ 1	$ 15	$ 195	$ 206,772	$ 202,484	$ (33,511)	$ 53	$ (29,282)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred dividends paid	(23)					(23)
Restricted stock compensation expense	370				370
Tax related items for share based awards	(159)				(159)
Issuance of shares of common stock	527				527
Currency translation adjustment	1,669								1,669
Purchase of treasury stock	(1,513)						(1,513)
Net income (loss)	12,529					12,642		(113)
Ending Balance at Mar. 31, 2022	360,127	1	15	195	207,510	215,103	(35,024)	(60)	(27,613)
Beginning Balance at Dec. 31, 2021	346,727	1	15	195	206,772	202,484	(33,511)	53	(29,282)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	27,021
Ending Balance at Jun. 30, 2022	375,586	1	15	197	212,087	229,514	(35,024)	0	(31,204)
Beginning Balance at Mar. 31, 2022	360,127	1	15	195	207,510	215,103	(35,024)	(60)	(27,613)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred dividends paid	(22)					(22)
Restricted stock compensation expense	493				493
Tax related items for share based awards	(131)				(131)
Issuance of shares of common stock	4,217			2	4,215
Currency translation adjustment	(3,591)								(3,591)
Net income (loss)	14,493					14,433		60
Ending Balance at Jun. 30, 2022	375,586	1	15	197	212,087	229,514	(35,024)	0	(31,204)
Beginning Balance at Dec. 31, 2022	365,392	1	15	345	213,937	250,549	(67,780)	0	(31,675)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred dividends paid	(23)					(23)
Restricted stock compensation expense	476				476
Tax related items for share based awards	(104)				(104)
Currency translation adjustment	98								98
Purchase of treasury stock	(9,135)						(9,135)
Net income (loss)	17,580					17,580
Ending Balance at Mar. 31, 2023	374,284	1	15	345	214,309	268,106	(76,915)	0	(31,577)
Beginning Balance at Dec. 31, 2022	365,392	1	15	345	213,937	250,549	(67,780)	0	(31,675)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	36,634
Ending Balance at Jun. 30, 2023	369,465	1	15	345	214,852	287,138	(101,968)	0	(30,918)
Beginning Balance at Mar. 31, 2023	374,284	1	15	345	214,309	268,106	(76,915)	0	(31,577)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred dividends paid	(22)					(22)
Restricted stock compensation expense	871				871
Tax related items for share based awards	(328)				(328)
Currency translation adjustment	659								659
Purchase of treasury stock	(25,053)						(25,053)
Net income (loss)	19,054					19,054
Ending Balance at Jun. 30, 2023	$ 369,465	$ 1	$ 15	$ 345	$ 214,852	$ 287,138	$ (101,968)	$ 0	$ (30,918)

THE COMPANY

THE COMPANY	6 Months Ended
	Jun. 30, 2023
THE COMPANY [Abstract]
THE COMPANY	THE COMPANY DXP Enterprises, Inc. together with its subsidiaries (collectively "DXP," the "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 services to a variety of end markets and business-to-business customers. Additionally, DXP provides integrated, custom pump skid packages, pump remanufacturing and manufactures branded private label pumps to energy and broad industrial customers. The Company is currently 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, 2023
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 accounting principles generally accepted in the United States of America ("US GAAP"). For interim financial reporting not all disclosures normally required in annual consolidated financial statements prepared in accordance with US GAAP are required. The unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2022 that are included in our annual report on Form 10-K filed with the SEC on April 17, 2023 (“Annual Report”). The results of operations for the six months ended June 30, 2023 are not necessarily indicative of results expected for the full fiscal year. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary for the fair statement of the Company's financial position, results of operations and cash flows for the interim periods presented. The ownership interest of noncontrolling investors of the Company's subsidiaries are recorded as noncontrolling interest. All inter-company accounts and transactions have been eliminated in consolidation. During the fourth quarter of 2022, the Company became aware of a financing cash flow error related to borrowings and repayments on our asset-backed credit facility as a result of the Company inadvertently duplicating journal entries, resulting in the overstatement of financing cash flow activities from borrowings and repayments related to our revolving credit facility. Management's assessment concluded that the errors were not material, individually or in the aggregate, to any prior period unaudited condensed consolidated financial statements. The Company concluded to revise prior period unaudited condensed consolidated financial statements the next time they were reported. Periods not presented herein will be revised, as applicable, in future filings. The unaudited condensed consolidated financial statements included herein, have been revised to correct for the impact of these errors. The revision for the unaudited condensed consolidated statement of cash flows for the six months ended June 30, 2022, is provided in the following table ( in thousands ): As Previously Reported Adjustments Revised Proceeds from asset-backed credit facility $ 235,969 $ (4,001) $ 231,968 Payments on asset-backed credit facility (206,845) 4,001 (202,844)

RECENTLY ISSUED ACCOUNTING PRON

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS The Company has implemented all new accounting pronouncements that are in effect and is evaluating any new accounting pronouncements that may impact its financial statements, including the new Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers standard. The Company does not believe the new accounting pronouncement will have a material impact on its financial position or results of operations for recent acquisitions. Accounting Pronouncements Not Yet Adopted 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.

FAIR VALUE OF FINANCIAL ASSETS

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES	FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES Our acquisitions may include contingent consideration as part of the purchase price. The fair value of the contingent consideration is estimated as of the acquisition date based on the present value of the contingent payments to be made using a weighted probability of possible payments. The unobservable inputs used in the determination of the fair value of the contingent consideration include management's assumptions about the likelihood of payment based on the established benchmarks, discount rates, and an internal rate of return analysis. The fair value measurement includes inputs that are Level 3 inputs as they are not observable in the market. Should actual results increase or decrease as compared to the assumptions used in our analysis, the fair value of the contingent consideration obligations will increase or decrease, up to the contracted limit, as applicable. Changes in the fair value of the contingent earn-out consideration are measured each reporting period and reflected in our results of operations. As of June 30, 2023, we recorded liabilities in other current and long-term liabilities for contingent consideration associated with the acquisitions of Process Machinery, Inc. ("PMI"), Drydon Equipment, Inc. ("Drydon"), Cisco Air Systems, Inc. ("Cisco"), Sullivan Environmental Technologies, Inc. ("Sullivan"), Florida Valve & Equipment, LLC and Environmental MD, Inc. (collectively,“Florida Valve EMD”) and Riordan Materials Corporation (“Riordan”) of $1.3 million, $1.8 million, $2.3 million, $1.6 million, $0.3 million, and $2.2 million, respectively. The following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the six months ended June 30, 2023 ( in thousands ): Contingent Consideration *Beginning balance at December 31, 2022 $ 10,166 Acquisitions and settlements: Acquisitions ( Note 12 ) 2,498 Settlements (4,000) Total remeasurement adjustments: Changes in fair value recorded in other (income) expense, net 839 *Ending Balance at June 30, 2023 $ 9,503 *Amounts included in other current liabilities were $6.1 million and $5.5 million for the periods ending June 30, 2023 and December 31, 2022, respectively. Amounts included in long-term liabilities were $3.4 million and $4.7 million for the periods ending June 30, 2023 and December 31, 2022, respectively. Sensitivity to Changes in Significant Unobservable Inputs The significant Level 3 unobservable inputs used in the fair value measurement of contingent consideration related to the acquisitions of PMI, Drydon, Cisco, Sullivan, Florida Valve EMD, and Riordan are annualized EBITDA forecasts developed by the Company's management and the probability of achievement of those EBITDA results. The discount rate used in the calculations was between 9.2 percent and 9.6 percent. Changes in our unobservable inputs in isolation would result in a change to our fair value measurement. Other financial instruments not measured at fair value on the Company's unaudited condensed consolidated balance sheets at June 30, 2023 and December 31, 2022, but which require disclosure of their fair values include: cash, restricted cash, accounts receivable, trade accounts payable and accrued expenses. The Company believes that the estimated fair value of such instruments at June 30, 2023 and December 31, 2022 approximates their carrying value as reported on the unaudited condensed consolidated balance sheets due to the relative short maturity of these instruments. See Note 8 - Long-term Debt for fair value disclosures on our asset-backed line of credit and term loan debt under our syndicated credit agreement facilities.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES The carrying values of inventories are as follows ( in thousands ): June 30, 2023 December 31, 2022 Finished goods $ 95,410 $ 82,906 Work in process 9,540 18,486 Inventories $ 104,950 $ 101,392

CONTRACT ASSETS AND LIABILITIES

CONTRACT ASSETS AND LIABILITIES	6 Months Ended
	Jun. 30, 2023
Contractors [Abstract]
CONTRACT ASSETS AND LIABILITIES	CONTRACT ASSETS AND LIABILITIES Under our customized pump production and 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 presented as "Costs and estimated profits in excess of billings". 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 unaudited condensed consolidated balance sheets. Costs and estimated profits on uncompleted contracts and related amounts billed were as follows ( in thousands ): June 30, 2023 December 31, 2022 Costs incurred on uncompleted contracts $ 97,872 $ 70,329 Estimated profits, thereon 31,966 23,274 Total costs and estimated profits on uncompleted contracts 129,838 93,603 Less: billings to date 88,414 80,421 Net $ 41,424 $ 13,182 Such amounts were included in the accompanying unaudited condensed consolidated balance sheets for June 30, 2023 and December 31, 2022 under the following captions ( in thousands ): June 30, 2023 December 31, 2022 Costs and estimated profits in excess of billings $ 46,770 $ 23,588 Billings in excess of costs and estimated profits (5,333) (10,411) Translation adjustment (13) 5 Net $ 41,424 $ 13,182 During the six months ended June 30, 2023, $10.0 million of the balances that were previously classified as contract liabilities at the beginning of the period were recognized in revenues. Contract asset and liability changes were primarily due to normal activity and timing differences between our performance and customer payments.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Income tax expense during interim periods is based on our estimated annual effective income tax rate plus any discrete items, which are recorded in the period in which they occur. Our effective tax rate from continuing operations was a tax expense of 26.3 percent for the three months ended June 30, 2023 compared to a tax expense of 25.5 percent for the three months ended June 30, 2022. Compared to the U.S. statutory rate for the three months ended June 30, 2023, the effective tax rate was increased by state taxes, foreign taxes, nondeductible expenses, and uncertain tax positions recorded for research and development tax credits 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 27.0 percent for the six months ended June 30, 2023 compared to a tax expense of 23.5 percent for the six months ended June 30, 2022. Compared to the U.S. statutory rate for the six months ended June 30, 2023, the effective tax rate was increased by state taxes, foreign taxes, nondeductible expenses, and uncertain tax positions recorded for research and development tax credits and was partially offset by research and development tax credits and other tax credits. Compared to the U.S. statutory rate for the six months ended June 30, 2022, the effective tax rate was increased by state taxes, foreign taxes, nondeductible expenses and uncertain tax positions for research and development tax credits 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, 2023
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, 2023 December 31, 2022 Carrying Value (1) Fair Value Carrying Value (1) Fair Value ABL Revolver $ — $ — $ — $ — Term Loan B 425,949 428,079 428,133 411,008 Total long-term debt 425,949 428,079 428,133 411,008 Less: current portion (4,369) (4,391) (4,369) (4,194) Long-term debt less current maturities $ 421,580 $ 423,688 $ 423,764 $ 406,814 (1) Carrying value amounts do not include unamortized debt issuance costs of $13.2 million and $14.6 million for June 30, 2023 and December 31, 2022, respectively. Credit Agreements On July 19, 2022, the Company entered into an Amended and Restated Loan and Security Agreement (the “ABL Credit Agreement”) that provided for a $135.0 million asset-backed revolving line of credit (the "ABL Revolver"). The ABL Credit Agreement amends and restates the Loan and Security Agreement dated as of August 29, 2017. Subject to the conditions set forth in the ABL Credit Agreement, the ABL Revolver may be increased by up to an aggregate of $50.0 million, in minimum increments of $10.0 million. The ABL Revolver matures on July 19, 2027. As of June 30, 2023, the Company had no borrowings outstanding under the ABL Revolver, and total borrowing capacity under the ABL Revolver was $132.3 million, net of the letters of credit outstanding. On November 22, 2022, the Company entered into an amendment to its existing $330 million Senior Secured Term Loan (the "Term Loan Amendment"), borrowing an additional $105 million that was added to the existing $330 million Senior Secured Term Loan (the “Term Loan Agreement”). As of June 30, 2023 there was $425.9 million outstanding under the Term Loan Agreement. The Term Loan Amendment amends and supplements the Term Loan Agreement, dated as of December 23, 2020, and provides for among other things, $105.0 million in new incremental commitments. The Term Loan Agreement and Term Loan Amendment amortizes in equal quarterly installments of 0.25 percent with the balance payable in December 2027 when the facility matures. Subject to securing additional lender commitments, the Term Loan Agreement allows for incremental increases in facility size up to an aggregate of $85.0 million, plus an additional amount such that the Company's Secured Leverage Ratio (as defined in the Term Loan Agreement) would not exceed 3.75 to 1.00. Interest accrues on the Term Loan at a rate equal to SOFR plus a margin of 5.25 percent for the SOFR Loans (as defined in the Term Loan Amendment). We are required to repay the Term Loan with certain asset sales and insurance proceeds, certain debt proceeds and 50 percent of excess cash flow--reducing to (i.) 25 percent if our total leverage ratio is no more than 3.00 to 1.00 and (ii.) zero percent if our total leverage ratio is no more than 2.50 to 1.00. The Company was in compliance with all financial covenants under the ABL Credit Agreement and Term Loan Agreements as of June 30, 2023.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE 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, 2023 2022 2023 2022 Basic earnings per share: Weighted average shares outstanding 17,211 18,766 17,402 18,651 Net income attributable to DXP Enterprises, Inc. $ 19,054 $ 14,433 $ 36,634 $ 27,074 Convertible preferred stock dividend 22 22 45 45 Net income attributable to common shareholders $ 19,032 $ 14,411 $ 36,589 $ 27,029 Per share amount $ 1.11 $ 0.77 $ 2.10 $ 1.45 Diluted earnings per share: Weighted average shares outstanding 17,211 18,766 17,402 18,651 Assumed conversion of convertible preferred stock 840 840 840 840 Total dilutive shares 18,051 19,606 18,242 19,491 Net income attributable to common shareholders $ 19,032 $ 14,411 $ 36,589 $ 27,029 Convertible preferred stock dividend 22 22 45 45 Net income attributable to DXP Enterprises, Inc. $ 19,054 $ 14,433 $ 36,634 $ 27,074 Per share amount $ 1.06 $ 0.74 $ 2.01 $ 1.39

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2023
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 or estimate the financial impact of these disputes, 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, 2023
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 MRO products, equipment and integrated services, including logistics capabilities, to business-to-business 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. 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, Six Months Ended June 30, 2023 2022 2023 2022 Sales Service Centers $ 298,432 $ 251,098 $ 593,658 $ 469,894 Innovative Pumping Solutions 63,441 57,788 125,439 110,846 Supply Chain Services 66,167 58,926 133,210 106,483 Total Sales $ 428,040 $ 367,812 $ 852,307 $ 687,223 Operating Income Service Centers $ 44,129 $ 32,368 $ 88,834 $ 59,719 Innovative Pumping Solutions 10,178 8,726 20,483 15,795 Supply Chain Services 5,416 4,958 10,929 8,978 Total Segments Operating Income $ 59,723 $ 46,052 $ 120,246 $ 84,492 The following table presents reconciliations of income from operations for reportable segments to the consolidated income before taxes ( in thousands ): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Income from operations for reportable segments $ 59,723 $ 46,052 $ 120,246 $ 84,492 Adjustment for: Amortization of intangible assets 4,582 4,591 9,340 8,826 Corporate expenses 17,661 15,541 38,027 28,186 Income from operations $ 37,480 $ 25,920 72,879 47,480 Interest expense 11,863 5,615 23,384 10,777 Other (income) expense, net (242) 839 (712) 1,377 Income before income taxes $ 25,859 $ 19,466 $ 50,207 $ 35,326

SHARE REPURCHASE

SHARE REPURCHASE	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
SHARE REPURCHASE	SHARE REPURCHASE On December 15, 2022, the Company announced a new Share Repurchase Program pursuant to which it may repurchase up to $85.0 million worth, or 2.8 million shares, of the Company's outstanding common stock over the next 24 months. Total consideration paid to repurchase the shares was recorded in shareholders’ equity as treasury shares. (in thousands, except share data) Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Total number of shares purchased 748,820 1,088,355 Amount paid $ 23,935 $ 33,182 Average price paid per share $ 31.96 $ 30.49

BUSINESS ACQUISITIONS

BUSINESS ACQUISITIONS	6 Months Ended
	Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]
BUSINESS ACQUISITIONS	BUSINESS ACQUISITIONS On May 1, 2023, the Company completed the acquisition of Florida Valve EMD, a leading provider of valve and related products and services for the municipal water markets in the State of Florida. Florida Valve EMD is included within our IPS business segment. Total consideration for the transaction was approximately $3.0 million, funded with a mixture of cash on hand of $2.6 million and future consideration of $0.3 million. Goodwill for the transaction totaled approximately $2.0 million. On May 1, 2023, the Company completed the acquisition of Riordan, a leading provider of products for water treatment, wastewater treatment, odor control, solids handling, pumping and bio solid processes in the States of Maryland, New Jersey, Pennsylvania, Delaware and Virginia. Riordan is included within our IPS business segment. Total consideration for the transaction was approximately $8.4 million, funded with a mixture of cash on hand of $6.2 million and future consideration of $2.2 million. Goodwill for the transaction totaled approximately $5.9 million. In aggregate, the acquisition-date fair value of the consideration transferred for the two businesses totaled $11.3 million, which consisted of the following ( in thousands ): Purchase Price Consideration Cash payments $ 8,844 Future consideration 2,498 Total purchase price consideration $ 11,342 Pro forma results of operations information have not been presented, as the effect of the recent acquisitions is not material. The operating results of Riordan and Florida Valve EMD are included within the Company's consolidated statements of operations since the acquisition date of May 1, 2023 and were not material for the six months ended June 30, 2023. Pursuant to US GAAP, costs incurred to complete the acquisitions as well as costs incurred to integrate into the Company’s operations are expensed as incurred. Transaction-related costs incurred, which are included within Selling, general, and administrative expenses in the consolidated statements of operations, were not material for the six months ended June 30, 2023. The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date ( in thousands ): Amount Cash $ 352 Accounts receivable 2,236 Inventory 355 Other current assets 134 Non-compete agreements 595 Customer relationships 1,708 Property and equipment 41 Other assets 5 Assets acquired 5,426 Current liabilities assumed (1,395) Other long term liabilities (23) Deferred tax liability (538) Net assets acquired 3,470 Total Consideration 11,342 Goodwill $ 7,872 Of the $2.3 million of acquired intangible assets, $0.6 million was provisionally assigned to non-compete agreements that are subject to amortization over 5 years, coinciding with the terms of the agreements. In addition, $1.7 million was assigned to customer relationships and will be amortized over a period of 8 years. The goodwill total of approximately $7.9 million is attributable primarily to expected synergies and the assembled workforce of each entity and is generally not deductible for tax purposes.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES (Policies)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of PresentationThe Company's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). For interim financial reporting not all disclosures normally required in annual consolidated financial statements prepared in accordance with US GAAP are required. The unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2022 that are included in our annual report on Form 10-K filed with the SEC on April 17, 2023 (“Annual Report”). The results of operations for the six months ended June 30, 2023 are not necessarily indicative of results expected for the full fiscal year. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary for the fair statement of the Company's financial position, results of operations and cash flows for the interim periods presented. The ownership interest of noncontrolling investors of the Company's subsidiaries are recorded as noncontrolling interest.
Consolidation	All inter-company accounts and transactions have been eliminated in consolidation.
Accounting Pronouncements Not Yet Adopted	The Company has implemented all new accounting pronouncements that are in effect and is evaluating any new accounting pronouncements that may impact its financial statements, including the new Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers standard. The Company does not believe the new accounting pronouncement will have a material impact on its financial position or results of operations for recent acquisitions. Accounting Pronouncements Not Yet Adopted 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.
Fair Value of Financial Assets and Liabilities	FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIESOur acquisitions may include contingent consideration as part of the purchase price. The fair value of the contingent consideration is estimated as of the acquisition date based on the present value of the contingent payments to be made using a weighted probability of possible payments. The unobservable inputs used in the determination of the fair value of the contingent consideration include management's assumptions about the likelihood of payment based on the established benchmarks, discount rates, and an internal rate of return analysis. The fair value measurement includes inputs that are Level 3 inputs as they are not observable in the market. Should actual results increase or decrease as compared to the assumptions used in our analysis, the fair value of the contingent consideration obligations will increase or decrease, up to the contracted limit, as applicable. Changes in the fair value of the contingent earn-out consideration are measured each reporting period and reflected in our results of operations.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES (Tables)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Impacts of Revisions on Financials	The revision for the unaudited condensed consolidated statement of cash flows for the six months ended June 30, 2022, is provided in the following table ( in thousands ): As Previously Reported Adjustments Revised Proceeds from asset-backed credit facility $ 235,969 $ (4,001) $ 231,968 Payments on asset-backed credit facility (206,845) 4,001 (202,844)

FAIR VALUE OF FINANCIAL ASSET_2

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of Reconciliation of the Beginning and Ending Balance and Gains or Losses Recognized	The following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the six months ended June 30, 2023 ( in thousands ): Contingent Consideration *Beginning balance at December 31, 2022 $ 10,166 Acquisitions and settlements: Acquisitions ( Note 12 ) 2,498 Settlements (4,000) Total remeasurement adjustments: Changes in fair value recorded in other (income) expense, net 839 *Ending Balance at June 30, 2023 $ 9,503 *Amounts included in other current liabilities were $6.1 million and $5.5 million for the periods ending June 30, 2023 and December 31, 2022, respectively. Amounts included in long-term liabilities were $3.4 million and $4.7 million for the periods ending June 30, 2023 and December 31, 2022, respectively.

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Carrying Values of Inventories	The carrying values of inventories are as follows ( in thousands ): June 30, 2023 December 31, 2022 Finished goods $ 95,410 $ 82,906 Work in process 9,540 18,486 Inventories $ 104,950 $ 101,392

CONTRACT ASSETS AND LIABILITI_2

CONTRACT ASSETS AND LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2023
Contractors [Abstract]
Schedule of Costs and Estimated Profits 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, 2023 December 31, 2022 Costs incurred on uncompleted contracts $ 97,872 $ 70,329 Estimated profits, thereon 31,966 23,274 Total costs and estimated profits on uncompleted contracts 129,838 93,603 Less: billings to date 88,414 80,421 Net $ 41,424 $ 13,182 Such amounts were included in the accompanying unaudited condensed consolidated balance sheets for June 30, 2023 and December 31, 2022 under the following captions ( in thousands ): June 30, 2023 December 31, 2022 Costs and estimated profits in excess of billings $ 46,770 $ 23,588 Billings in excess of costs and estimated profits (5,333) (10,411) Translation adjustment (13) 5 Net $ 41,424 $ 13,182

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	6 Months Ended
	Jun. 30, 2023
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, 2023 December 31, 2022 Carrying Value (1) Fair Value Carrying Value (1) Fair Value ABL Revolver $ — $ — $ — $ — Term Loan B 425,949 428,079 428,133 411,008 Total long-term debt 425,949 428,079 428,133 411,008 Less: current portion (4,369) (4,391) (4,369) (4,194) Long-term debt less current maturities $ 421,580 $ 423,688 $ 423,764 $ 406,814 (1) Carrying value amounts do not include unamortized debt issuance costs of $13.2 million and $14.6 million for June 30, 2023 and December 31, 2022, respectively.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2023
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, 2023 2022 2023 2022 Basic earnings per share: Weighted average shares outstanding 17,211 18,766 17,402 18,651 Net income attributable to DXP Enterprises, Inc. $ 19,054 $ 14,433 $ 36,634 $ 27,074 Convertible preferred stock dividend 22 22 45 45 Net income attributable to common shareholders $ 19,032 $ 14,411 $ 36,589 $ 27,029 Per share amount $ 1.11 $ 0.77 $ 2.10 $ 1.45 Diluted earnings per share: Weighted average shares outstanding 17,211 18,766 17,402 18,651 Assumed conversion of convertible preferred stock 840 840 840 840 Total dilutive shares 18,051 19,606 18,242 19,491 Net income attributable to common shareholders $ 19,032 $ 14,411 $ 36,589 $ 27,029 Convertible preferred stock dividend 22 22 45 45 Net income attributable to DXP Enterprises, Inc. $ 19,054 $ 14,433 $ 36,634 $ 27,074 Per share amount $ 1.06 $ 0.74 $ 2.01 $ 1.39

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	6 Months Ended
	Jun. 30, 2023
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, Six Months Ended June 30, 2023 2022 2023 2022 Sales Service Centers $ 298,432 $ 251,098 $ 593,658 $ 469,894 Innovative Pumping Solutions 63,441 57,788 125,439 110,846 Supply Chain Services 66,167 58,926 133,210 106,483 Total Sales $ 428,040 $ 367,812 $ 852,307 $ 687,223 Operating Income Service Centers $ 44,129 $ 32,368 $ 88,834 $ 59,719 Innovative Pumping Solutions 10,178 8,726 20,483 15,795 Supply Chain Services 5,416 4,958 10,929 8,978 Total Segments Operating Income $ 59,723 $ 46,052 $ 120,246 $ 84,492
Schedule of Reconciliation of Operating Income for Reportable Segments to Consolidated Income Before Taxes	The following table presents reconciliations of income from operations for reportable segments to the consolidated income before taxes ( in thousands ): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Income from operations for reportable segments $ 59,723 $ 46,052 $ 120,246 $ 84,492 Adjustment for: Amortization of intangible assets 4,582 4,591 9,340 8,826 Corporate expenses 17,661 15,541 38,027 28,186 Income from operations $ 37,480 $ 25,920 72,879 47,480 Interest expense 11,863 5,615 23,384 10,777 Other (income) expense, net (242) 839 (712) 1,377 Income before income taxes $ 25,859 $ 19,466 $ 50,207 $ 35,326

SHARE REPURCHASE (Tables)

SHARE REPURCHASE (Tables)	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Schedule of Share Repurchase	Total consideration paid to repurchase the shares was recorded in shareholders’ equity as treasury shares. (in thousands, except share data) Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Total number of shares purchased 748,820 1,088,355 Amount paid $ 23,935 $ 33,182 Average price paid per share $ 31.96 $ 30.49

BUSINESS ACQUISITIONS (Tables)

BUSINESS ACQUISITIONS (Tables)	6 Months Ended
	Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Purchase Price Consideration	In aggregate, the acquisition-date fair value of the consideration transferred for the two businesses totaled $11.3 million, which consisted of the following ( in thousands ): Purchase Price Consideration Cash payments $ 8,844 Future consideration 2,498 Total purchase price consideration $ 11,342
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed	The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date ( in thousands ): Amount Cash $ 352 Accounts receivable 2,236 Inventory 355 Other current assets 134 Non-compete agreements 595 Customer relationships 1,708 Property and equipment 41 Other assets 5 Assets acquired 5,426 Current liabilities assumed (1,395) Other long term liabilities (23) Deferred tax liability (538) Net assets acquired 3,470 Total Consideration 11,342 Goodwill $ 7,872

THE COMPANY (Details)

THE COMPANY (Details)	6 Months Ended
	Jun. 30, 2023 segment
THE COMPANY [Abstract]
Number of business segments	3

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINES POLICIES (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Borrowings on asset-backed credit facility	$ 7,870	$ 231,968
Repayments on asset-backed credit facility	$ (7,870)	(202,844)
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Borrowings on asset-backed credit facility		235,969
Repayments on asset-backed credit facility		(206,845)
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Borrowings on asset-backed credit facility		(4,001)
Repayments on asset-backed credit facility		$ 4,001

FAIR VALUE OF FINANCIAL ASSET_3

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES - Narrative (Details) $ in Millions	Jun. 30, 2023 USD ($)
PMI, Burlingame, Drydon, Cisco and Sullivan | Valuation Technique, Discounted Cash Flow And Weighted Probability Of Possible Payments | Fair Value, Inputs, Level 3 | Annualized EBITDA And Probability Of Achievement | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate	0.092
PMI, Burlingame, Drydon, Cisco and Sullivan | Valuation Technique, Discounted Cash Flow And Weighted Probability Of Possible Payments | Fair Value, Inputs, Level 3 | Annualized EBITDA And Probability Of Achievement | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate	0.096
PMI | Other Current and Long-term Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability for contingent consideration	$ 1.3
Drydon | Other Current and Long-term Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability for contingent consideration	1.8
Cisco | Other Current and Long-term Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability for contingent consideration	2.3
Sullivan | Other Current and Long-term Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability for contingent consideration	1.6
Florida Valve EMD | Other Current and Long-term Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability for contingent consideration	0.3
Riordan | Other Current and Long-term Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability for contingent consideration	$ 2.2

FAIR VALUE OF FINANCIAL ASSET_4

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES - Reconciliation of Beginning and Ending Balances (Details) - Fair Value, Measurements, Recurring - Fair Value, Inputs, Level 3 - Contingent Consideration Liability $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Contingent Consideration
Beginning balance	$ 10,166
Acquisitions	2,498
Settlements	(4,000)
Changes in fair value recorded in other (income) expense, net	839
Ending Balance	9,503
Other Current Liabilities
Contingent Consideration
Beginning balance	5,500
Ending Balance	6,100
Other Noncurrent Liabilities
Contingent Consideration
Beginning balance	4,700
Ending Balance	$ 3,400

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Finished goods	$ 95,410	$ 82,906
Work in process	9,540	18,486
Inventories	$ 104,950	$ 101,392

CONTRACT ASSETS AND LIABILITI_3

CONTRACT ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Schedule of costs and estimated earnings on uncompleted contracts [Abstract]
Costs incurred on uncompleted contracts	$ 97,872	$ 70,329
Estimated profits, thereon	31,966	23,274
Total costs and estimated profits on uncompleted contracts	129,838	93,603
Less: billings to date	88,414	80,421
Net	41,424	13,182
Schedule of Costs and Estimated Earnings on Uncompleted Contracts Included in Condensed Consolidated Balance Sheets [Abstract]
Costs and estimated profits in excess of billings	46,770	23,588
Billings in excess of costs and estimated profits	(5,333)	(10,411)
Translation adjustment	(13)	5
Net	41,424	$ 13,182
Balances previously classified as contract liabilities at the beginning of the period that have shipped	$ 10,000

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Effective tax rate from continuing operations, expense (benefit)	26.30%	25.50%	27%	23.50%

LONG-TERM DEBT - Components of

LONG-TERM DEBT - Components of Long-term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Borrowings [Abstract]
Unamortized debt issuance costs	$ 13,200	$ 14,600
Carrying Value
Borrowings [Abstract]
Total long-term debt	425,949	428,133
Less: current portion	(4,369)	(4,369)
Long-term debt less current maturities	421,580	423,764
Carrying Value | ABL Revolver
Borrowings [Abstract]
Total long-term debt	0	0
Carrying Value | Term Loan B
Borrowings [Abstract]
Total long-term debt	425,949	428,133
Fair Value
Borrowings [Abstract]
Total long-term debt	428,079	411,008
Less: current portion	(4,391)	(4,194)
Long-term debt less current maturities	423,688	406,814
Fair Value | ABL Revolver
Borrowings [Abstract]
Total long-term debt	0	0
Fair Value | Term Loan B
Borrowings [Abstract]
Total long-term debt	$ 428,079	$ 411,008

LONG-TERM DEBT - Narrative (Det

LONG-TERM DEBT - Narrative (Details) - USD ($) $ in Millions	Nov. 22, 2022	Jul. 19, 2022	Jun. 30, 2023
Asset-backed Revolving Line of Credit | ABL Revolver
Debt Instrument [Line Items]
Maximum borrowing capacity under credit agreement		$ 135
Increase in borrowing capacity under credit agreement		50
Minimum increments under credit agreement		$ 10
Amount outstanding under credit facility			$ 0
Borrowing capacity, including impact of letter of credit			132.3
Secured Debt | Senior Secured Term Loan B
Debt Instrument [Line Items]
Debt issued	$ 330
Increase in borrowing capacity	$ 105
Total long-term debt			$ 425.9
Quarterly installments of term loan payable	0.25%
Maximum increase in maximum borrowing capacity	$ 85
Secured leverage ratio	375%
Percentage of excess cash flow	50%
Secured Debt | Senior Secured Term Loan B | Debt Covenant Total Leverage Ratio One
Debt Instrument [Line Items]
Percentage of excess cash flow	25%
Total leverage ratio	300%
Secured Debt | Senior Secured Term Loan B | Debt Covenant Total Leverage Ratio Two
Debt Instrument [Line Items]
Percentage of excess cash flow	0%
Total leverage ratio	250%
Secured Debt | Senior Secured Term Loan B | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Margin rate	5.25%

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Basic earnings per share:
Weighted average shares outstanding (in shares)	17,211	18,766	17,402	18,651
Net income attributable to DXP Enterprises, Inc.	$ 19,054	$ 14,433	$ 36,634	$ 27,074
Convertible preferred stock dividend	22	22	45	45
Net income attributable to common shareholders	$ 19,032	$ 14,411	$ 36,589	$ 27,029
Per share amount (in dollars per share)	$ 1.11	$ 0.77	$ 2.10	$ 1.45
Diluted earnings per share:
Weighted average shares outstanding (in shares)	17,211	18,766	17,402	18,651
Assumed conversion of convertible preferred stock (in shares)	840	840	840	840
Total dilutive shares (in shares)	18,051	19,606	18,242	19,491
Net income attributable to common shareholders	$ 19,032	$ 14,411	$ 36,589	$ 27,029
Convertible preferred stock dividend	22	22	45	45
Net income attributable to DXP Enterprises, Inc.	$ 19,054	$ 14,433	$ 36,634	$ 27,074
Per share amount (in dollars per share)	$ 1.06	$ 0.74	$ 2.01	$ 1.39

SEGMENT REPORTING - Financial I

SEGMENT REPORTING - Financial Information of Company's Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information, Profit (Loss) [Abstract]
Total Sales	$ 428,040	$ 367,812	$ 852,307	$ 687,223
Total Segments Operating Income	59,723	46,052	120,246	84,492
Service Centers
Segment Reporting Information, Profit (Loss) [Abstract]
Total Sales	298,432	251,098	593,658	469,894
Total Segments Operating Income	44,129	32,368	88,834	59,719
Innovative Pumping Solutions
Segment Reporting Information, Profit (Loss) [Abstract]
Total Sales	63,441	57,788	125,439	110,846
Total Segments Operating Income	10,178	8,726	20,483	15,795
Supply Chain Services
Segment Reporting Information, Profit (Loss) [Abstract]
Total Sales	66,167	58,926	133,210	106,483
Total Segments Operating Income	$ 5,416	$ 4,958	$ 10,929	$ 8,978

SEGMENT REPORTING - Reconciliat

SEGMENT REPORTING - Reconciliation of Operating Income to Consolidated Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information, Operating Income (Loss) [Abstract]
Income from operations for reportable segments	$ 59,723	$ 46,052	$ 120,246	$ 84,492
Adjustment for:
Amortization of intangible assets	4,582	4,591	9,340	8,826
Corporate expenses	17,661	15,541	38,027	28,186
Income from operations	37,480	25,920	72,879	47,480
Interest expense	11,863	5,615	23,384	10,777
Other (income) expense, net	(242)	839	(712)	1,377
Income before income taxes	$ 25,859	$ 19,466	$ 50,207	$ 35,326

SHARE REPURCHASE - Narrative (D

SHARE REPURCHASE - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended
	Dec. 15, 2022	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022
Class of Stock [Line Items]
Share repurchased		$ 25,053	$ 9,135		$ 1,513
Common stock
Class of Stock [Line Items]
Total number of shares repurchased (in shares)		748,820		1,088,355
Share repurchased		$ 23,935		$ 33,182
Share Repurchase Program December 2022
Class of Stock [Line Items]
Share repurchase period (in months)	24 months
Share Repurchase Program December 2022 | Common stock
Class of Stock [Line Items]
Share repurchase, amount authorized	$ 85,000
Shares repurchase, shares authorized (in shares)	2,800,000

SHARE REPURCHASE - Schedule of

SHARE REPURCHASE - Schedule of Share Repurchase (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022
Class of Stock [Line Items]
Amount paid	$ 25,053	$ 9,135		$ 1,513
Common stock
Class of Stock [Line Items]
Total number of shares repurchased (in shares)	748,820		1,088,355
Amount paid	$ 23,935		$ 33,182
Average price paid per share (in dollars per share)	$ 31.96		$ 30.49

BUSINESS ACQUISITIONS - Narrati

BUSINESS ACQUISITIONS - Narrative (Details) $ in Thousands	May 01, 2023 USD ($) business	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Business Acquisition [Line Items]
Goodwill		$ 342,273	$ 333,759
Acquisitions 2023
Business Acquisition [Line Items]
Total purchase price consideration	$ 11,342
Future consideration	2,498
Goodwill	$ 7,872
Number of acquisitions | business	2
Acquired intangible assets	$ 2,300
Acquisition related costs	400
Acquisitions 2023 | Non-compete agreements
Business Acquisition [Line Items]
Acquired intangible assets	$ 600
Amortization period of acquired intangible assets (in years)	5 years
Acquisitions 2023 | Customer relationships
Business Acquisition [Line Items]
Acquired intangible assets	$ 1,700
Amortization period of acquired intangible assets (in years)	8 years
Florida Valve EMD
Business Acquisition [Line Items]
Total purchase price consideration	$ 3,000
Cash paid on hand	2,600
Future consideration	300
Goodwill	2,000
Riordan
Business Acquisition [Line Items]
Total purchase price consideration	8,400
Cash paid on hand	6,200
Future consideration	2,200
Goodwill	$ 5,900

BUSINESS ACQUISITIONS - Purchas

BUSINESS ACQUISITIONS - Purchase Price Consideration (Details) - Acquisitions 2023 $ in Thousands	May 01, 2023 USD ($)
Business Acquisition [Line Items]
Cash payments	$ 8,844
Future consideration	2,498
Total purchase price consideration	$ 11,342

BUSINESS ACQUISITIONS - Estimat

BUSINESS ACQUISITIONS - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jun. 30, 2023	May 01, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill	$ 342,273		$ 333,759
Acquisitions 2023
Business Acquisition [Line Items]
Cash		$ 352
Accounts receivable		2,236
Inventory		355
Other current assets		134
Property and equipment		41
Other assets		5
Assets acquired		5,426
Current liabilities assumed		(1,395)
Other long term liabilities		(23)
Deferred tax liability		(538)
Net assets acquired		3,470
Total Consideration		11,342
Goodwill		7,872
Acquisitions 2023 | Non-compete agreements
Business Acquisition [Line Items]
Finite-lived intangibles		595
Acquisitions 2023 | Customer relationships
Business Acquisition [Line Items]
Finite-lived intangibles		$ 1,708