Earnings call transcript Q2 2023

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Operator

Good morning, ladies and gentlemen. Thank you for standing by. My name is Erica, and I will be the conference operator today. At this time, I would like to welcome everyone to the DXP Enterprises, Inc. 2023 Second Quarter Earnings Conference Call. placed to been noise. any have lines on prevent mute background All the be will remarks, question-and-answer After there a speaker’s session. [Operator Instructions]

I over now to Kent Yee, call turn CFO. the

Kent Yee

Thank the DXP's QX for conference call to is you, our Yee ending XXXX thank results June discuss today. XXXX. for Kent to us quarter This everyone welcome and to Erica, and second joining you XX,

Chairman today CEO, David is our and me Joining Little.

to includes Before webcast remind statements. started, we are want you being differ and on I in call statements. A may contemplated and SEC today's results many -- recorded those basis of may contained our believe our material by forward-looking have we forward-looking that Actual effect is on from business the filings. ongoing get materially that a factors these an

no assumes events. future a update information that to new of obligation information result DXP as or However,

our GAAP press at presentation reconciliation this available website measures ir.dxpe.com. is may measures. During we on are call, in A press both GAAP financial accompanying to our investor non-GAAP and Non-GAAP an earnings and release. of now present included release The

of will second financial turn I to CEO summary to performance call David quarter provide now his over results. a and Chairman our and thoughts Little, the and our

David Little

Good for second on our Thanks quarter morning fiscal conference to thank Kent. joining and XXXX you everyone us today call.

of through We and of are half pleased allows achieve remain EBITDA XX% This and QX continue record solid and end at through both market performance to growth another first XXXX. see us DXP's sales levels the margins. demand quarter to

XXXX. second great quarter a strong and half had we of first Overall,

XXXX. forward and to new establishing the second DXP are We of half for look highs

navigate execution by organically ability our to positive trends chain environment. first demand and of supply continued The and dynamic pricing XXXX and solid grow half highlight the supported

continue Riordan our valve We quarter. to execute water during wastewater platform to Florida Materials strategy continue DXP and adding and grow the our acquisition to

like our to end commitment a We of DXP's been and will maintaining always while be goals business markets to energy continue to that execute foundational part diversify on have DXP. our

adjusted of to margins see, XX%, this and is This drive. which great forward our profitability look EBITDA momentum. to of excess in maintaining is quarter DXP's to This speaks relentless second we

experts, win-win by our our all This We have customers, solutions, our providing the customer-driven efficient stakeholders. financial center for strategy creating approach highly and focused providing ESG a our We results. objectives. around more remain expect expertise to have achieving their has customers while DXP from remain to fueled reduce costs on come consistent our

earnings share supported customers. momentum, continue Second we quarter driving performing and efforts Thanks adjusted diluted per across people growth and further further our our while was grow by to of year-over-year our $X.XX of EBITDA XX.X%. for of company, sales of the improvements million $XX.X our all DXP operational positive to

determination all grow our continue in and trends new for business. perform we for we and I beginning highs for to our work continue to markets are have as sales potentially end DXPeople personally the key all power, DXP achieve business and secular chemicals, see their to to and particular hard our just improve Our thank that aerospace. and DXP stakeholders including want energy,

acquisition environment move and balance to we strong improved continued sheet, remain business, exceptional the our that well As well-balanced and capabilities half the current we the navigate of into confident year, robust teams position second achieve pipeline success. us

the then and comments, on results After will after XXXX. perspective into our grow business. remainder some more thoughts take and Kent key Q&A. quarter prepared with evolve today, a Again, begin on thank my his of open through financial our the you second as and remarks. will diversified I will less our particular in DXP for continued let efforts, adaptability me stakeholders DXPeople their DXP cyclical we for we

$XXX million Thank average work you, DXPeople were increased QX your dedication. for business of for sequentially second million and per $X.X XX.X% X,XXX and or Total for the day quarter. sales an DXP to year-over-year hard or the X%

In by then terms pumping X.XX% results, the Chain of financial sales QX followed Supply XX.XX% service sales and innovative XX.XX% growing solutions, Services growing sales centers year-over-year. way, led growing year-over-year

the In terms allowed top growth. nature of of end to to centers service to experience markets centers, resilient, us diversity and continue service within MRO and continue remain line consistent

perform, Cisco Additionally, with our out to DXP. of the fiscal closed Cisco acquisition continues as being we year

the including and perspective, Gulf Southeast regional Coast. my Texas regions experience continue year-over-year majority a of to From Rocky our growth, Mountains,

end continue expect remain will We foreseeable constructive to our the markets that over future.

an energy As be our of the in early which it commentary by up we recent been the stages to has quarters. supported over with last we transition, could pertains cycle three believe energy, consistent

due the Chain during to chemical year-over-year of continues customer Services year. to diversified new of a QX last addition and experience QX Supply

out move customers. procuring to manage growth into and for until ramping we start look will we we continue As products additions inflation customer as flatten well QX, new both new year-over-year we sequential as and will managing

be services technology increasing SCS add of for and we the to will demand the can customers. said, efficiencies their proven we and sales new customers, as to is look all XXXX. leaders for protracted, SCS perform cycle they That But because move industrial into our

stay of terms XXXX average. or Pumping QX average ahead Solutions, IPS of Innovative the In backlog our to IPS continues fiscal

move that as to the long-term are good on we indicates the going as bookings back first likely in front we average average XXXX. Additionally, earlier, work end this continuing are to XXXXX. time a energy-related our for started our and IPS to cycle exceed the is, we we of forward What and backlog through give project mentioned we our to year-to-date look

will opportunities supply water And given finding energy, and food IPS of markets all managing biofuels, we have in we and focus beverage ebbs levels such and inflation. within the maintain pricing and and and as chain demand appropriately our dynamics flows be wastewater growth, main the

stayed of were and of the last special reflects sequentially QX labor a increases, DXP gross our have significant over year. QX overall Overall of thanks the operating costs percent on growth. basis expect EBITDA XXX leverage adjusted quarter for product overall top we point improvement million which margins with basis efficiencies. over and A $XX.X to adjusted DXP's improvement profit XX.X% EBITDA DXPeople who and XX.X%, XXX sales and produced of to supplier get as a of sales point

of EBITDA we sequential marks This we this the margins second also second as XX% will through and quarter continue XXXX. move plus our look half for of to

these me, continue while both, are we allocations, acquisitions, investments value and capital we approaches By growth excuse customers pursuing are two diversify for through driving Regarding shareholders. to repurchasing to fuel make opportunistically balancing – shares. long-term DXP our

program. the quarter value amounting through during $XX.XXX we shareholders return to our share XXX,XXX million. shares our purchased continuing are We to repurchase to XX million And

Let our me improvement I in continued remarks sales am by conclude that my profitabilities. saying encouraged and by sequential

and to our customers to make is ever. continue growth than progress stronger We strategies commitment on

are improvements of We remainder and the fiscal and growth DXP we at look driving through XXXX. working to forward and navigating

our alive. as to DXPeople for achieving QX and successful of great again, have the was thank like another aim would XX I we XXXX. year our continue XX to quarter, Finally, we a goal and keep XX, streak to in

I the in that, over now financials to review and he will Kent, With back detail. more will this turn

Kent Yee

review everyone David you, of you and financial to for Thank results. second our for XXXX our us joining quarter thank

two plus XXXX of and continues quarters half EBITDA XX% our margins. performance of adjusted year-over-year first to strong sales The highlight

second We of half to are results and these XXXX. excited we to report look the forward

sales DXP high watermark XXth Specifically, our performance market execute quarter increases DXP. sequential the for QX and through successfully been to and another record sales and all able of financial create stakeholders. value continues has for to reflects navigate our

to make. have progress successful and DXP, but diversifying been in transforming still we have We

energy contribution share As record by from pertains our activity, growth QX, QX inflation through it the outlook notable are to driven strong operating stability, customer in at and and adjusted second marked or within continued growth large acquisitions, sales IPS compared impacts from during continued leading year program. of a sequential plateauing ago follows: albeit a strong EBITDA our center compared price performance in SES, significant of a return margin, as ago, our addition leverage increases sales with to year-over-year and by capital although service pace, quarter, terms gross slower chemical shareholders repurchase and consistent to increases sustained to takeaways a positive organic strength diversified and margins a to backlog year

increased sales Average day XXXX. the per quarter. $X.X X.X% per per million million. second XX.X% record sales been sales for in year-over-year QX DXP for million daily in million quarter Acquisitions with day less second quarter in $X.X and during $XXX and sequentially that QX than for were versus $X.X $X.X the contributed to million a have the Total year a XXXX day

day in out daily per end went April sales day quarter. the million reflecting $X.X for push typical from in a were trends said, quarter. second we average Adjusting million second closed million sales for That to the $X.X per the acquisitions, as day average the quarter during daily $X.XX quarter June per

This Supply year-over-year. XX.X% of In our sales terms year-over-year. Pumping XX.X% growing was X.X% grew business followed Service segments; Chain growing by and Solutions year-over-year Innovative Services Centers

grew or $X.XX Excluding X.XX% sales sales Centers increased sales increased our Pumping acquisitions million, Solutions increased Service $XX.X Innovative while XX.XX%, million.

within transportation Texas our driving business the Southeast. the Center end air sales and experienced sales Service and products beverage, North terms Gulf Valley, Lyo Key of food the rotating include industrial, compressors, In regions energy. general Coast Service the equipment notable which and growth Rockies, chemical, Centers, markets include segment, River year-over-year performance and and

the from and to market $XX.X energy diversified chemical SES reflect the addition ago. in of customer million customer the This last year contributed this we QX sales within added and impact gains beverage Services perspective year. large Chain of notable Supply an QX within Other customers end to that fully continues include and a compared of year our of growth a performance food ramped quarter. as has in during

experience Pumping increases continue the In Solutions, backlog. we terms of to energy-related Innovative in

XXXX backlog. and continues ahead levels a our and when are Our today. grew we sales backlog compared XXXX this of X.X% above XXXX down now where conclusion only XXXX are average and average that be backlog is backlog X.X% to stands our average XXXX is continues which QX to trending backlog moving to meaningfully year uptick levels comparing XXXX notable our to upon over The and towards the we QX based energy-related QX average and remain of

QX organic We throughout continue mentioned we we have expect XXXX. been IPS that to experiencing growth strong within as in sales

and sequestration find to contribute gas also meaningfully we oil our mentioned forward. are as Additionally, but versus expect traditional carbon opportunities and David hydrogen energy capture we in including going continuing biofuels other to markets

improvement which DXP's margins XX% over XXX contribution a compared year-over-year solutions XX.X%, sales points pumping the Turning comparative DXP's This greatest year said were with improving with in innovative segment of QX XXXX. improvement showing improvement basis That our margins XXXX. to contribution a and our point XX.X% was Services margins. on higher contributed gross IPS Service gross from was segments across all total at XXX SCS was basis Chain mix sales last Supply impacted Centers basis. XX.X% XX.X%, to margins of QX mix business

and comparative income points segments XXXX a basis versus basis Service Centers This IPS. reflects In a acquisitions terms increased improvement year-over-year. versus segment improved by million. The million QX business higher operating operating a the points Center QX operating margins QX on IPS points income XXX income basis income $XX.X basis driven operating Total primarily centers $XX.X combined DXP at to margins within XXX income XX% increased or operating margin. three margins of operating impact improved income in XXXX. service year-over-year relative of XX operating in improvements income all business and Service was

increase will XX.X% DXP year-over-year anticipate inherent points XX impact growth, plus benefit a $XX.X the business still million on $XX primarily sales of well acquisitions business million. its in increased as DXP pay raises increased as quarter cost QX from sales. QX point incentive operating well of from supporting SG&A. and merit the basis to total compensation leverage increased The from uptick acquisitions. dollars as increase as the percentage the of associated impact for in headcount. growth to the people the We and reflects in The XXXX investing through SG&A and of a as the our basis reflects increasing XX SG&A despite that Our inflation

cost we QX XXXX Adjusted record and is million. EBITDA. to EBITDA were This quarter second for increased look grow margins was X.Xx sequential basis operating to This sales. into leverage EBITDA million. continue. Year-over-year translated we SG&A the adjusted This adjusted EBITDA XX% our in $XX.X of points $XX.X margins adjusted Turning experienced this we fixed margins excess EBITDA a leverage. would as or reflects XX.X%. of XXX

In net for million. terms QX $XX was of income our EPS, our

during million Our share to note last shareholders the $X.XX earnings per QX. $XX.X QX $X.XX was repurchase diluted versus per share through for per XXXX year. returned share we Of share

Turning to sheet the balance and cash flow.

capital December of March working $XXX.X $XX.X capital, to $XX.X from from million terms increased our million. In working million and

amounted XX.X%. of percent month a last As sales, to XX this

point where capital. average a sales of our this discussed months. still for in are QX with of to terms investing line year, off some XX.X% have of at acquisitions XX in working last are XX-month XXXX ranges We high historical a QX our we of recent move has we as begun on-boarded as in in But of of last our full

anticipate further do acquisitions. We

the move could move we as of So into half XXXX, this upwards. second

my on repurchases acquisitions we the March. purchases In terms will This two of $XX.X of is cash we which little the QX in Materials detail of in a end later and reflects as June balance million had million since Valve million in to the cash, compared and on XX. and of of a $XX.X This Florida $XX.X touch comments. decrease share Riordan sheet more

CapEx, decrease of or $X.X million to in In XXXX. terms quarter second a compared of million the $X QX CapEx was

ahead We XXXX our of of employees. facilities equipment of as we in are levels still year on our fiscal some our and reinvest behalf

we invest in business forward will we to continue focus growth. As on as the move we

$XX.X last while cash have since to flow. significant are payable a year. our reflects said, a in Free through project cash work or That was million investments growing $X.X during step-up reflects DHP in QX we positive the a to the second and with make minus along year QX project in which and we throughout of improvements flow This significant in flow days. inventory million free Turning quarter. free we cash investments reduction significant work experienced when continue makes year-to-date

cost is the reflecting capital and capital levels. quarter ROIC end improved our at of was continues second our invested on Return the of be and profitability XX% to above

months X.XX:X for of our ratio was EBITDA charge the $XXX.X fixed a ratio covenant As secured XX million. and was June XX, of X.XX:X leverage coverage our with last

on Total June $XXX.X million. debt outstanding was XX

with quarter were including $XXX.X million DXP’s $X.X on with letters on undrawn terms million we credit ABL our In in liquidity and of balance liquidity outstanding $XXX.X availability of of as of the the $XX.X million million cash in sheet. of

Riordan acquisitions, acquisitions the In we during two on closed Valve. and of Florida Materials terms quarter

and Welcome reporting us for present Both to XXXX. within pipeline Florida second to wastewater industries. We have and with municipal water acquisition the market are continues opportunities. excited leading them the industrial provide DXP's grow Riordan. quarter DXP compelling platforms to valve the to of and and continues

for acquisition enhancing DXP end DXP's has our strategy profile. margins Our significant and value flow markets created cash

and we of our during two forward Looking a of forward, our expect this to our continue our look still XXXX of we the four acquisitions remains allocation execution invest on capital business, goal the half primary through to Updating to in acquisition thoughts to minimum second strategy. closing XXXX. including

conservative less. the have capital our provide also ratio these demonstrated repurchase will capital shareholders. balance by are we of times objects, a to us access mechanism to to We after committed the our or sheet share X.X maintaining the target extent, achieve return as program leverage To

and $XX.X QX XXX,XXX stock DXP million $XX.X we million total of and or year-to-date. shares During a quarter shares repurchased as in previously year-to-date X.X million the mentioned, in

year, the of the and As half we that balance growing success. well DXP into pipeline us move achieve capabilities, business, remain we and exceptional second our environment navigate strong to well-balanced strong position continued acquisition confident current people, sheet, the

while avenues multiple to grow coverage unpredictable value Balance and us end important for offer in and mix markets. providing geographic create our customers market suppliers, resiliency and

QX summary, we In strong we the forward mark finishing look and QX. with pleased as our at are we halfway to progress XXXX approach and

turn the over call for now will I questions.

Operator

Tommy go Stephens question Tommy, Inc. comes ahead. the [Operator line first from Instructions] Moll of from Our

Tommy Moll

you Good thank for morning, my taking questions. and

David Little

Tommy. morning Good

Tommy Moll

the some average of on start to insight. sales daily wanted I

I correctly. make provided I to want sure just You first heard

reported be So, that it's $X.X M&A correctly? the $X.X Did million million would hear that excluding impact. I

David Little

Tommy. Yes, that's correct

Tommy Moll

M&A insight. Okay. Kent provided basis, through monthly And excluding Can just And you then those those run as an the were the some again? or well? the you months were on of as-reported

Kent Yee

you trend I'll what the flash give draft quarter and But acquisitions. flash walk July. includes is for through a a That I'll you do in the

So, X.XX%. June X.X%, and April X.XX%, was X.XX%, July then May

Tommy Moll

Thank you. helpful. That's

Kent Yee

Yes.

there a I'd -- further average add year-to-date just our so little And insight Tommy.

Our average about X.X%. is year-to-date averaging

And that trends in gives little to so bit of insight kind a of you hopefully the DXP.

Tommy Moll

at the everything $XXX sales of you for trend would Yes. I reported a your best million think that Based again or July QX up realistic And the sequential increase. us consecutive down today be factor more then on million, be is that it this were you'd could be XXth point? sequentially quarter or that might from the even there XXX was and flat another guess point to sequential

David Little

working our Tommy. alive. one want we're hard. that take The streak yes we keep to And I'll

to We to is think certain markets. strategies there's have slow question using though do interest growth growth no a I that And see Fed lot down see economy in in the that we and the then certain so even of we rates markets.

of certainly but that kind those for energy it depends So, of and that beverage growing us. all water markets are wastewater are and on the food and aerospace mix and and

so working some little guess slowing of hard markets a the down to we're bit. really, are And really overcome I that other

well we so don't as growth with think we'll streak when we we'll do percentage will year-over-year, And a even the but put example certainly you be if then XX% in if growth of that think is -- growth that an that. I it happy small our and to consider keep third do I all I negative. be be X% so -- quarter, a the optimism together consider I though alive goal

Tommy Moll

enough. Fair

Kent Yee

place. in it you still business would the our add pipeline per just is pipeline of front Tom -- the to only thing the And end day sales and I acquisition remains at is it asked

are the upon fit we you gives timing, some David's so the that if with those that just could insight. we additive, -- but more done would dependent get comments two if and And always one in quarter or

Tommy Moll

Thank the second On gross time. side helpful. quarter that's row a quarter margin just back XX% Yes, which highest big pretty on tailwind in EBITDA. layers, Peeling long for you above you. a the in margins the XX% a got is for the under

you What well if the M&A cycle? gross then there to worth could performance? wondered margin inflationary gross performance. as impact calling we any the cost can tell time, talk mix is same price And out I that margin at the So, and on about or the dynamic us

David Little

for And is Yes we and sure. at is XX%, our so There's happy that go that look higher certainly when we of then to slightly gross exceed that. certainly what plus -- makes mix get businesses goal do our and others. to real we're a to to profit-oriented than do us are our happen, certain

mean As I XX% Chain XX%. a SG&A Services has Supply an but their low growth, it's example very like is

still well but they margin or operating EBITDA of greater, XX. So that make below slightly an a XX% income margin,

contribute the their investment then inventory course, capital is, have working they don't that a customer stuff all of and So on and of keeps like that. lot they

we're chain about happy So about with supply it. don't very services. we're get the want with that happy to I returns we anybody because mislead certainly

have. that's they we're I'm a because commissions. it gross water do on to profit a portion this gross because it give that going wastewater they margins if on operate helpful. going it would long I come They have be lot bigger expenses explanation down a high you margins has will also. gross what other think to does of Then jobs within but doing they But very margins is but forward of very low low and

on profit jobs gross their sense that of those in is actually types so XXX%. margin And

So that is helpful.

resale bids those an Now kind and of do awful a they Innovative is and Solutions buy. are Funding healthy a also. three too, lot margins of

million big so You're situations. projects doing get and project $X competitive they a into

but -- not supply service as the lower center services, as their low margins. margins they're than they're So aren't chain

MRO then back of more grows the that then pull a will can also. that percentage if again, so margins on as And -- center service our

to is we anything see works mix besides or But there any anything. XX-plus there overall. about don't blend and of achievable that's no And would what anything sometimes. products onetime down out drive There's a of margins. some That significance course, that to be I'm and the gold's blend talking seems is XX% or that of out

people's our ability et with pleased on inflation and supplier cetera. and cost pass costs very and very, to I'm So labor

I'd pleased XX.X% So happy XX.X% sense makes to to difference difference a whether tend we makes results one it's I mean hang we're me with of there, it's that be those numbers. with and in to or it the around they're think either really. those better. going that no But

Tommy Moll

to before hit want I depth we talk about in Yeah. that M&A topic.

crude back Let's oil I and that address mean into at gas market the mid-XXs end dynamics. the you're are. looking

you trends observations what would about underlying So the there? us for have

David Little

So I'll study pretty that hard.

I to lines is I know. know. what much I we here's is But efficiencies here's know drilled mile there's going with know. of each so well nowadays miles, a course, And the that X don't what drilling lot from lateral I greater. And do that the of X

less So and be we or more producing can gas. oil have rigs still

So on this drilling course, not tied we're the of drilling. is And side. to

production. to tied are We

So one of is factor. that kind is,

The other But not drilled also and wells, produce needing exact uncompleted drilling to that. to that's factor to X,XXX I'm range production. is that that down we so more that's something. started off new don't not so me and hold giving and numbers in with X,XXX DUCs you

that's helpful, and oil the too. last gas That equation So is completing the part resource. a that in is of said,

so the been rate now to XX.X%. of staying they keep It's are produce at have kind today just at even right even. to we're So XX.X% we we're and to kind more of

that of XX.X range kind probably as day, So we it's barrels million speak. been a in

that's kind that's on kind et gathering the -- of for that and works. how well-site So equipment midstream system It's of the us the good cetera.

other -- we And very see being about activity we talk to in of energy. we mentioned have then, where energy, So, we when strong. sources that as play

so likewise. in we're And markets playing those

manufacture that. on in And in a and things energy, wind certainly of designed work like repair service panels. and solar other we're playing that hydrogen the doing ethanol. And don't do so lot But even not we them. we're around doing markets corn We're are projects. we the turbines, We're wind mills but

to of in think never we're right. we're playing we'll this get I that, fuels going So and we energy, think that renewable of it balance between quite we then, and think when

and that oil may not enough there be So take renewable can over. gas

So prices go and that. to then will and when that up happens get dynamic gas are around everybody going oil then

So moving a it's ball.

So not thinking, I know I'm what here everything.

I really the fact lot needed are they but factors we're and some a don't have those gas do oil world that serve make pointing answer, energy. both perfect all we did are looking the that think I more that And to to If that are but a money, of of at. with renewables to the and

so year think And years' is going or that coming be to we the a strong market.

Tommy Moll

Moving mention on the of I larger you two like? to that something the we think you what on deals realm close M&A, I provide it's to heard Are four you give guys to the anything you insight of delicate something but or end Any the insights in maybe tuck-ins hope can pipeline, by can us still are provide I can in pipeline recognize talking you these is whatever though, helpful. given looks or year.

Kent Yee

Yeah.

plenty opportunities always markets hey M&A be to I'd for comments one, high-level the of that signal Tommy, to like and some seem there there's Just strong there DXP.

major Secondly, and importantly, category. water valuations our expectations. then, of wastewater, more our just And as they the are rotating play well speaking our to pipeline specifically line as in two on equipment and broadly with a four, product to more continue themes to

typically EBITDA in way space and seems they're the and reasonable. the if the our well And to EBITDA margins margins gross the so, equipment X% and for they're If than by as space, accretive accretive margins. obviously to us -- X% as more rotating they're they're our water margins wastewater our margins gross to in getting both

we of more point, be excited spending candid, we're so see lot And about our the selective pipeline the to because there and time of a being being fullness what pipeline. of

good. so feel And we

size are our them of Some in to of be aggregate others and around then closer size. could terms in acquisition tuck-ins more average

from between our being million million So, $XX anywhere average sales size in acquisition standpoint. to $XX acquisition

we'll we get line to also into So the good be finish across end, before feel ones which XXXX but see about candid. going year

So...

Tommy Moll

last this of of theme on it's -- allocation inorganic is in mentioned there in wanted make to a an I wastewater last can You done years. deals the hit water sure of capital clearly the emphasis the and times terms been couple you've and today, couple we but

it margin that be mentioned tends You to accretive…

Kent Yee

Yes.

Tommy Moll

Which the higher the progress structure I to of today you've at of presume then forward? you're for you the you scale maybe that level Thank back out do how strategy add one look refreshes but attracted terms market. made to the platform more it on the what at platform a would that reasons you in even and it, how have going characterize of you hope you like and is building And much you. if scale about

Kent Yee

just as platform Yes. then we've on hit But And $XXX and strategy wastewater. maybe platform. David I'll between up that scale let water could I'll that always around a it least big $XXX chime picture in the we viewed a to million at million

bit little you $XXX scale we a north of today of give million. are to a just so sense And

intentful this acquisition. would what historically to via market then the always we today's we've segue grow water are necessarily something decision I say in is I'll didn't wastewater to be in then also platform. decide It's And David just we and the as let a played make

I'll you as David we use to picked explain But why. on to just it. of fronts. our margins up segue And a you to to like --and so as on it's David? And accretive a that variety really

David Little

and it's the -- they a really specifically people eat the that do. business. stuff go cyclical It's bathroom it's a do and not -- not So all

things – to repair lot need need to these the and then do on. of there's And so so of and market water. we need that's and all We in We need replacement and gotten the old a dispose activity infrastructure –and water. clean going waste. We that's of kind

particular this really part And that's upward. driving the so of industry

I other pumps into mention it, the to pump company. parts explain businesses. industrial utility correctly and but type that can't We we're a too go So represent it

understand and the repair of service We side we pumps. of people, the technical understand pump being So pumps.

pumps. water played that via in So we've

at And we we look industry. so things also more product look so are product. not we but to we're to look at trying to -- some only specific adding aspect that valves that the repair, at of that understand that When we

We automation industry. that to and specific look that's at

legs And repair, we're platform it's so that valve, speak new five the us process pump, little is the of -- that's this kind automation. takes for building there's stool so these the a to the the and but the equipment. then last one to And

it's so equipment. And

that, it's that. to chemical we're used and it aspects certainly to also some it but like -- has stuff So

So all equipment newer legs us. a are and process valves and those other to automation three little

growth were And were the that so but just municipal, they in a people that's great doing opportunity to pumps.

and a strategy acquiring time have United them really a business And them really in are has that great help we the not we exciting their so it's people been this that growth to not are the grow company past. bringing business actually only growth in this are to might States things been but -- across

So customer the somebody What to one that bring better. than is he the can bring then we more is offering just better. And to them market finally hand. likes

you you et So pumps and you can cetera you the very it exciting. service bring and is the it can that bring and then install fact can can process equipment

Tommy Moll

have. and to that's forward to for purposes today's the there look continuing follow We'll progress all I

turn So back. I'll it

David Little

Tom. you, Thank

Operator

Instructions] [Operator

David Little

think the today. that's I Erica, all questions

Operator

you concludes gentlemen, Thank us. a But you That giving our moment. was -- for today. I ladies joining thank just and you. call

Kent Yee

you. Thank

David Little

Thank you.

DXP Enterprises (DXPE) 9 Aug 232023 Q2 Earnings call transcript