Exhibit 99.1
DXP Enterprises Announces First Quarter Results EPS Increases 25%
HOUSTON--(BUSINESS WIRE)--May 2, 2003--DXP Enterprises Inc.
(Nasdaq:DXPE) today announced net income of $0.5 million for the first
quarter ending March 31, 2003, with earnings per share of $.10
compared to net income of $0.4 million before the effect of a change
in accounting principle and earnings per share before the effect of a
change in accounting principle of $.08 for the first quarter of 2002.
Sales decreased slightly to $37.5 million from $37.6 million for the
first quarter of last year.
David R. Little, chairman and chief executive officer, said, "We
are aggressively working to increase sales and have very recently
invested in additional sales personnel for selling to selected
markets. We expect this investment to result in increased sales in
future quarters."
Mac McConnell, chief financial officer, commented, "Comparing
first quarter of 2003 to the same period in 2002, we reduced SGA
expenses by $0.2 million. SGA expenses as a percentage of sales
decreased to 22.5% from 22.9% for 2002."
In July 2001, new standards were issued relating to accounting for
goodwill. These standards took effect for the company on Jan. 1, 2002.
As result of these new standards the company recorded a transitional
impairment loss of $2.5 million before income taxes ($1.7 million
after income taxes). This charge was reported as a cumulative effect
of a change in accounting principle in the first quarter of 2002.
DXP Enterprises Inc., based in Houston, is a leading distributor
of products and services for industrial maintenance, repair,
operations and capital equipment projects, and provides engineering
expertise and logistics capabilities to industrial customers. DXP also
provides fluid handling equipment, bearings, power transmission
equipment, general mill supplies, safety supplies and electrical
products to customers in the general manufacturing, energy,
petrochemical, service and repair, and wood products industries.
The Private Securities Litigation Reform Act of 1995 provides a
"safe-harbor" for forward-looking statements. Certain information
included in this press release (as well as information included in
oral statements or other written statements made by or to be made by
the Company) contains statements that are forward-looking. Such
forward-looking information involves important risks and uncertainties
that could significantly affect anticipated results in the future; and
accordingly, such results may differ from those expressed in any
forward-looking statement made by or on behalf of the Company. These
risks and uncertainties include, but are not limited to; ability to
obtain needed capital, dependence on existing management, leverage and
debt service, domestic or global economic conditions, and changes in
customer preferences and attitudes. For more information, review the
Company's filings with the Securities and Exchange Commission.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS
ENDED
MARCH 31,
2003 2002
-------- --------
Sales $37,461 $37,603
Cost of sales 27,975 27,976
-------- --------
Gross profit 9,486 9,627
Selling, general and administrative expense 8,414 8,602
-------- --------
Operating income 1,072 1,025
Other income 22 31
Interest expense (343) (419)
-------- --------
Income before income taxes 751 637
Provision for income taxes 283 271
-------- --------
Income before cumulative effect of a change in
accounting principle 468 366
Cumulative effect of a change in accounting principle -- (1,729)
-------- --------
Net (loss) income 468 (1,363)
Preferred stock dividend 23 23
-------- --------
Net (loss) income attributable to common shareholders $445 $(1,386)
======== ========
Per share and share amounts before cumulative effect
of a change in accounting principle
Basic earnings per common share $0.11 $0.08
======== ========
Common shares outstanding 4,072 4,072
======== ========
Diluted earnings per share $0.10 $0.08
======== ========
Common and common equivalent shares outstanding 4,533 4,549
======== ========
Cumulative effect of a change in accounting principle
per share - basic and diluted -- $(0.42)
======== ========
Basic income (loss) per share $0.11 $(0.34)
======== ========
Common shares outstanding 4,072 4,072
======== ========
Diluted income (loss) per share $0.10 $(0.34)
======== ========
Common and common equivalent shares outstanding 4,533 4,072
======== ========
CONTACT: DXP Enterprises Inc., Houston
Mac McConnell, 713/996-4700
www.dxpe.com