DXPE - Earnings call transcript Q3 2024

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Operator

Thank you for standing by. My name is Novi, and I will be your conference operator today. At this time, I would like to welcome everyone to the DXP Enterprises, Inc.

Third Quarter 2024 Earnings Release and Conference Call. [Operator Instructions]. I would now like to turn the call over to Kent Yee, Chief Financial Officer. ahead. go Please

Kent Yee

XX, and and Novi, to everyone. is ending This our Thank to thank DXP's Yee, September quarter third welcome for Call QX Kent results you, the you, XXXX. XXXX discuss Conference

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

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

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

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

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

David Little

through Thanks, my key for to Kent, our you on third financial conference we and Q&A. call. our take will details everyone quarter after prepared after remarks. Kent open And XXXX comments, thanks the will

and DXPeople. you privilege to to all DXP's is you and DXPeople third X,XXX special share of trust. to thank over Congratulations It on our my quarter you results behalf with a can stakeholders our

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

the quarter are the start up We earnings great to half share year. per announce income of all and way XXXX. prior This over to third second a fiscal results with is operating strong sales, pleased

save them that MRO manage providing customers to money, inventory products spend, and solutions focused and needs. help remain and on serving revolving our provide consolidate We services their their solve

growing our and profitably customer-driven is goal. sales Being

organic gross growth, increasing We to margins focus increasing on driving continue and and productivity. acquisition profit

in XXXX and bottom both our working, fiscal add acquisitions. our line Our That growth line acquisition and as fiscal XXXX are strategies to said, has through into and pipeline we and and execution XXXX resulted results organically our going out close should XXXX. growth, fiscal top

and sales X.X%. total be adjusted were billion month our X.X% investing up winning We is about engaging and the and a and customer and of DXP, margins strengthen culture continue XX, excited September million, future XX.X%. business delivering EBITDA in differentiated EBITDA EBITDA through experience, growth. with creating up $X.XX sales and drive for respectively, Year-to-date adjusted $XXX adjusted long-term Last were XX core capabilities to to our an

for third DXP year-over-year our EBITDA to increase million Moving million $XX.X revenue of third quarter, of adjusted with quarter was the for of XXXX total third quarter. XX.X% the $XX.X a

million year-over-year and Innovative X.X% following terms million. to Pumping centers growing led Services $XXX.X year-over-year growing X.X% by or QX way, XX.X% sales service $XX.X Supply year-over-year results, financial sales growing million, In of the to to Chain flat Solutions $XX.X

at and IPS In sales and/or Water was terms budgets heritage last XX%. project capital this work. Pumping Solutions, our X DXP's it broad project tied energy-related XX% of markets we is time, of IPS, have Innovative work DXP's Water. to versus DXP year Year-to-date,

increased Water DXP. income grown have have we operating segment the our margins we both platform, and As and for DXP margins for gross

perform show above to bookings averages, resilience not all-time and and backlog our continues at albeit long-term highs. energy-related Our

we QX mentioned of feel to are energy and the and to that water as and on to long-term water this work. bookings, and What revenue first energy we XXXX, XXXX. get our we in seeing project Additionally, which impacts wastewater-related continuing in results both our look IPS the project year-to-date backlog wastewater and our how in occurred and is this back average cycle forward move remains this We point energy XXXX into year. and average this we indicates good above at going through

We wastewater have the both be have, delivery in start few water pricing booked improving will within in as or starting a and of biofuels, energy large to year. QX markets and growth, we and DXP's and margins. energy, in water revenue continue levels That as focus said, to such recognizing IPS projects while maintaining all demand and should and finding opportunities and beverage manage that QX food maintain next manage we

diversity Service continue terms MRO and to to nature allows line top product our us growth. service consistent centers within markets, of division continue multiple end resilient experience remain In year-over-year Centers, the of approach and to

From a North year-over-year experienced Central, South Rockies, Texas, that rotating regional business. our perspective, growth and equipment North Southwest regions Canadian included

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

division, in Products We Metalworking is to have we Safety division our have and U.S. all Services see. strength strength seen also great which seeing --

Chain later the being Historically, observed season of Services of and fewer days. billing year continued with trends the half second XXXX. have impacted Supply is to align half there the sales performance holiday in by

need SCS Supply technology Services -- technology to anticipating within business a DXP customer relationship. This of remote DXP's for allowing XXXX with without has expand model, customers the the also QX of accounts enables and new the to sites However, accounts utilize and Chain presence. in of on-site smaller is model implemented Chain full-time in full Supply extend care invested increase need an Services QX to XXXX. in

generation marketing SCS tools. expanding to remains committed base enhanced our lead customer industrial through and

fiscal XXXX, safety we this leveraging capability. anticipate and our to into the broader DXP and in equipment happen XXXX. As We services rotating service early for existing we repair DXP's offering customers, extending could on will focus go

Services, Demand and for of efficiency all increasing Supply customers. is technology perform because their industrial Chain proven of they for services

SG&A, gross the for increased quarters. margins third profit basis and our over X gross 'XX. with our reflect third point of sales SG&A of our increased to quarter and going XX.X% XXXX. people technology were investment improvement processes to strategies, and gain in in percent a a quarter as QX steady growth million along I'm our QX XX.X% overall efficiencies. for the Overall, the future in continues improvement of XXXX. SG&A versus in XX.X%, to $XX.X pleased QX of DXP's from improvements over margins XX with 'XX last our

invest behalf X.X% As and an corporate privilege via operations decline people is This have income in was there growth. margin XX have as includes to versus on $XX.X my been We and amortization. results operating which point DXP's always, it the opportunity is our share focused efficient, expense chosen be financial to reflects DXP's in we margin QX business our our to of feel more million, overall basis still DXPeople. operations and or in XXXX. on we of

EBITDA same up operating Overall, were margins versus margins up adjusted 'XX period DXP year-over-year income Centers of increase EBITDA QX $X.X XX.X%. turned points million of produced in XX operating quarter were the sales operating $XX.X Service points $XX was the IPS' income XX.X%. of a Adjusted in and margins XXXX. or income of of versus XX QX million Services basis versus third XX.X%, basis as This of X.X%. into XXXX. a Chain million XX.X%. were Supply of And XXXX percent

drive business, the but chapter. as more DXP we diversified achieve still and pleased next cyclical in will to am to continues execute confident am continue and grow performance work adapt sales have the third make a in and our that our quarter. and less and the DXP substantial do by efforts goals, evolve I to We to team great I profitability.

We are than market more that future. growing expect and the sales near the into

our progress commitment and make to We customers is growth our strong. to our continue on strategies

We launch the into the of look to navigating next fiscal are XXXX and improvements DXP. at driving forward XXXX, growth further and working fiscal chapter. and through remainder We developing

continue make in our technical more to build our capabilities We and services customers gives to DXP in us unique and markets. products provide all industry win. of to very We ways help our our set a

would our sales new and I margins for hitting EBITDA QX. in to Finally, plus main continuing XX% to like a DXPeople quarter high thank

for to quarter is will turn success review more as financials detail. With we continue Kent in in it into do to and have it excited QX. was that, launch I to XXXX again another remain now QX our what prepare to ourselves back XXXX. We Let's in next. great

Kent Yee

you, to David, joining performance us financial QX results. the DXP's and our market create XXXX our quarter everyone third you for to thank stakeholders. financial the Thank continue and and for value ability navigate review all reflects through of for execute successfully to

a another sales record reflect with EBITDA along adjusted all-time watermark results margins. high third in new Our quarter also

Water. and margins. Year-to-date closing an stability QX, in and backlog, by and an third during to the to X consistent within quarter with leading QX operating service As our gross from performance, water with center DXP's strength growth adjusted solid continued additional strength the from closing quarter, it to and reflect and sales X from continued along bringing leverage financial total quarter sales accelerating contribution acquisition quarter a completed subsequent the and DXP pickup results pertains performance or margin to year-to-date along acquisitions third IPS and to the energy acquisitions, contribution sustained EBITDA within third bookings marked in-line specifically

for benefit contributed $X.XX versus million $X.XX quarter the the during in sales average third of million the DXP quarter trend acquisitions million for third with September, third of day went out day sales per quarter-end were million, reflecting July in in X% million during organic the $XX.X third less year from Adjusting $X.XX for day the acquisitions, quarter from quarter. QX sales million and closed $XXX.X in versus per said, sales a day have million record million per third day $X.XX million than for quarter. daily Average acquisitions XXXX. a day the that $X.XX Total $X.XX a average as increased $X.XX the quarter daily been to per sales push QX to That quarter for daily per and per per XXXX sequentially during XXXX. in the day were we

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

we of in wastewater In Innovative Pumping bookings backlog. continue as as the Solutions, and water and well terms backlog experience increases energy-related the to and bookings

all and or where upon to our QX that backlog conclusion levels our The backlog all based meaningfully of remain project, continues QX year. that our sequentially. estimated be backlog worth win meaningfully of It performance Our backlog in grew QX that QX our averages. project is continues QX a to includes noting sales moving significant energy-related notable for towards sales XXXX XX.X% to levels next we energy grew this is stands our above X.X% Adjusting we're over average QX impact backlog average trending ahead our XXXX are currently and and energy today.

a comparative On year-over-year. energy up business XX.X% our native X-month is basis, IPS

to expect XXXX. the for of continue We this remainder

We continues of in also a see strength it organic our acquisition to grow Water and combination as backlog additions. to IPS due

Center of markets Regions In XXXX now our Service our Product within On growth is Center and Centers in the within strength with and of equipment, great a and rotating reflects points U.S. North also year-over-year our business Service strongest Metalworking Centers, third exposure. a our include in our and last energy Canadian our Southeast, experienced comparative quarter which sets Service performance strength to a initiatives, all new over Southwest, evolving basis, see sales X our along product to terms sales end From dynamics. quarter and Services the our Rockies, Service quarters and watermark. market which perspective, diversified Central. South we is our internal Alaska high segment, Safety and/or divisions growth experienced

the Supply and performance continue Services in year-over-year. in X.XX% sales XXXX. Chain QX, line the sales of we Chain Supply with to X.XX% perform sequentially discussed Services second As experienced grew half increased in

bring have streamlining results by QX mentioned well with been we that year. as closures of the we existing to our as impacted last customers back customers in Our facility efficiency

that we of on-site this focuses David QX on full-time in for next presence. need also terms our a SCS remote accounts care of of customer the technologies year and implemented As without created year. a outlook, QX an anticipating new are model has mentioned in increase in

to Additionally, DXP XXXX, could and services in capabilities. repair services as leveraging fiscal this existing we safety XXXX. We on early go SCS will customers, offerings happen the into for broader focus anticipate rotating extending and our equipment DXP

strength our XX or improvement QX Turning margins QX Centers in This gross a over XX of to profit XX.XX%, of is were total within margins last improvement to gross DXP's basis attributed XXXX. point a point margins. improvement basis year. Service from gross

IPS segment our to versus gross gross Additionally, That drive both operating said, Services XX.XX%, higher QX. overall Pumping from was the gross be Supply a business at DXP accretive XX% sales notably mix from QX Solutions in contribution, has accretive XX.XX%. Innovative consistent mix contribution helped margin from margins. Acquisitions a base and overall of margins. Service to and XX.XX% our the of acquisitions IPS XX% more to contributed sales DXP to Centers contributed relative Chain continue going in

In with pump in IPS. our operations. basis a a relative this across in versus the operating business reflects income, business Innovative $X.X improvements but percentage notably combined, revenue were primarily improvement the IPS, terms more X second water manufacturing This year. segment along margins quarter income segments quarter XX wastewater The and growing impact operating income of acquisitions sales improvements margin at by driven Solution within million all within in and points and this operating our Pumping of sequentially increased was margins of mix, in Service Centers of income or higher operating

DXP Water was X.X% QX of of gone the sales IPS million XXXX in XX% quarter versus the third in X.X% quarter XXXX. third $XX.X third of to XX% from million of of of sales sales the has in operating of income DXP in $XX.X sales Total or XXXX. or of quarter over

million. and the for its raises. growth XXXX quarter from associated and QX to of QX DXP investing and year through million Our and The incentive SG&A million in increased pay in $XXX.X people from $XX.X business this the the reflects merit compensation increase of $X.X

horizontal offering. SG&A a our as cost to Additionally, was associated and sales XX.XX% increased XXX to essentially from and year. year-over-year with of QX reflects expense some points basis percentage of of unique sequentially pump sales flat this onetime also this

adjusted EBITDA XX.X%. $XX.X EBITDA QX Turning margins was were Adjusted to XXXX million. EBITDA.

As and as this half margins improved we've and first discussed in moved half QX, second we to the of through expect the have pick into up XXXX.

growing experienced from DXP cost benefit the accretion SG&A the the acquisitions. Water We leverage fixed scale we as to margin sales continue and well we grow as as of

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

per per share diluted per adjusting XXXX per was $X.XX earnings was share share items, Our versus earnings per share. share onetime adjusted for diluted Conservatively for $X.XX QX for last QX year. $X.XX

and balance cash flow. Turning to sheet the

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

XX.X%. work. an where impact of As have This a of an percentage uptick amounted project reflects from capital the been is this last DXP's and sales, to in the we and increase XX-month acquisitions

move into grow we will working fiscal percent of impact XXXX, the into the from As as recent we capital sales and particularly acquisitions.

$XX balance million end of repurchases million to QX. $XXX.X an activity XX. terms had million of of the QX decrease of our $X a as as In and compared well share we reflects is in in cash sheet acquisition cash, as in September on additional the This

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

XXXX. in expect CapEx pick We XXXX versus up to continue to

continuing our and make software, investments are to facilities our for employees. operations business, We in our

forward, invest continue the DXP. in phase the focus and to As of we on of business we next will as growth evolution we move

by this impacting on business the with to managing aspect quarter $XX.X Turning product look during during quarter investments, a to or the flow. tightly $XX.X past our on free requiring flow $XX.X XXXX. from million impacts perspective inventory, reflects in the us the versus and backwards cash and project and investments Free for in cash primarily focus to we continue third cost work, highlighted QX. million third are we QX which slid in billings flow said, us have cash as of the That million This accessibilities. of increasing which our was from align

the and was ROIC end at the inherent XX% or capital the reflects quarter EBITDA improvements invested third the the of in operating on leverage and Return within business.

accretive Additionally, acquisitions gross to performance and to EBITDA. profit our their also points recent and it contribution both positive impact and

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

in with quarter $XXX incremental as million. liquidity $X.X basis million our $XXX.X including $XX of were liquidity, in availability million, of of quarter, million of XXX on credit of to undrawn cost by borrowing end, successfully we million we of terms ABL and Subsequent $XXX.X the letters reduced In points and raised third the cash. with an

is DXP continue positioning itself execute our to on to acquisition strategy.

the to In DXP's comfortable closed our valuations close reasonable. of said, to terms to X the minimum X continue That have acquisition and before on ability remain will pipeline we our another the quarter we of first acquisitions X including opportunities. continues pipeline remain end, compelling quarter. active and look acquisitions, year-to-date, to execute to the subsequent we continues market to with end remain and present at

Regarding in shares, QX. previous repurchases in capital we $XX repurchased allocation, program, we to program. place $X repurchase million million million via new share share We shareholders finished returned and our X.X or or put have a

As the previously will we support our cycles. to be mentioned, move and through as shareholders opportunistic continue we

In next summary, about are and building excited we the future the chapter.

We ahead those and control on of us. what will our keep things focused can we is eyes

have are believe excited is next than there we We to already in and we that substantial is greater what continue because is achieved. DXP, embedded value what

under Lastly, September XX, material cured and Item in Controls we all have existing it Procedures QX X, that remediated weaknesses of is and our XXXX. our mentioning as as XXXX, noted controls worth opinion of

financial team growth confidence forward and sustained Thank effort procedures look future you remediate for all great and of outperformance. the and We market to commitment DXP. controls to DXP their our with enhance at and a to

We questions. will over for the now call turn

Operator

Instructions] with from of the comes first question line Moll Your Stephens. [Operator Tommy

Thomas Moll

sure Kent. make to I acquisition you the I heard want On front, correctly,

X year-to-date I think heard guess there X by were I you the October? first And third quarter, for then end? of I another X books when either or there closed you say a more X more total then in So quarter year-end by were through

Kent Yee

Tommy, for X today. additional thank QX. quarter And We this as meaning closed I'll through Yes, us of joining X November past Friday, and an then walk that, you end end, subsequent closed to of acquisitions. we just you X, the the

So that if a in anticipate another then hours pointed brings got still next X, release the to XX X will, of regarding of also in that, script those. And end before the us be to next comments a QX out to we we'll and year. putting we XX pipeline, year-to-date. you my obviously, strong And closing press the

Thomas Moll

at point first the even you on Got month, that you other it. share terms you can in this anything or end that X just any now? And contours can share closed, the markets of

Kent Yee

were water, Yes. they typical share of Nebraska wastewater the our smaller today on would What in the program. is another -- the in both One I market. call was more acquisition size acquisition

So so means a a vacuum the on of bit vacuum grow in And Nebraska. other to the we're California, a continuing acquisition one get side, it's excited pump diversification. there's foothold market but end region, California our more pump in to little was then which

everything food cetera. beverage, et and pharmaceuticals, semiconductors, from So

Thomas Moll

So always how the together and benefits quarter down expectation? -- that look if the you've the announced, some is roll fourth roll but set feel of big are you of announced inclusive an if to just from tricky But yet, quarter-over-quarter here, does to to trying QX, flat, try obviously, have seen the $XXX did like we of you which up acquisitions that that the I'm just haven't standpoint third or they just acquisitions all the maybe if a at you that quarter, to you million all to in into going include it together, you view we on. it pivot a to revenue

Kent Yee

including don't yes. formally have per and we no, our guidance, provide I business KPIs, sales get day. Yes, but We No, it.

go think think I way the we about it is, into yes, everybody's factor that [indiscernible] head we got Tommy, there's think, to as I as fewer days to in. so

have just then a per May follow-up, broad per million June, KPI if million people off through That But certain October, can go kind million at day. forward. business $X.XX I have $X.XX per then some day per of comments. And a in it But per go July, direction. there. million David may start -- said, you the -- trend. day; million and from pull And can walk you per that we directionally $X.XX a let we've if and to day; back million me we sales point kind you $X.XX always let's as day; think in day; of August, just got and I'll $X.XX per September, $X.XX May, day; were then

kind after days business sales those that's between days So holidays per the step get you we practically. day But the again, as and well, once fewer trend. will have of

David Little

And not our strong. then fourth the would softer. I sure from just little still a that I'm I guess And is bookings add really historically, are that, quarter perspective,

necessarily we'll thinking Our what backlog but will in I is revenue quarter a strong, or ship fourth think we'll soft. -- the I'm recognize not be -- as it little

Thomas Moll

appreciate I provided progression monthly you Kent, cadence the And there.

Just closed to of confirm, months? had those an acquisitions so as-reported are that whatever all inclusive be would during basis, on those

Kent Yee

the smaller Yes. And out. recent again sales up, more basis, press X combined Yes. than so... less are call releases in annual X have detail put more we when million it, those on $XX on we'll Yes. for the an end, together once But ones

Thomas Moll

what should days as QX, number helpful. do the you're you terms dialing very selling That's year? for just past? of Or know it this of in Okay. in fairly similar in And the days be

Kent Yee

Yes.

[indiscernible]. we're think but XX fall, I in XX, coming the just at around once again, practically, how just XX, holidays have to -- I I think

Thomas Moll

Oh, yes.

that. do you in for the in I heard David, you say unpacking I QX, Thank Okay. helpful. you the and let's were range it here you commented think on which in That's again again QX. margins, double-digit --

isn't any in on there again the that of just just not I correctly heard to kind performance. sure latest case and that make and QX should I that your greatest also So be want reason that get

to any please some kind do? operating in otherwise, number quarters now. There the for want acquisition out, a double digits are benefits you but in You've of if been tailwinds call solidly there's of there,

David Little

talking about EBITDA you're margins. assume I And Sure.

Thomas Moll

Yes, adjusted EBITDA.

David Little

Yes, SG&A a probably I was if was of noticed, sales we're EBITDA. -- as percent -- a little not you adjusted high. Yes,

we're to manage And business that working at so -- the the of we're to trying expense we that sales the important a have think note opposite, profits maximize I -- it's not in to quite and and them to then and slower of of those lot a bigger table of sales you out grow nicely, bets are some really some on as and little see, the investments. can are taking

So nickel good good that that to business news. and managing not and I little for of expense cut The think news dime every that's we're is trying the growth out.

So I don't either. think there's EBITDA margins that there's any real headwind And going that go will to don't I make think are reason to expenses go think down. any down

do Some of our growth of wastewater been real is pump water what which point margin has EBITDA to the focal business. the traditional in we're trying and a area, and

So we to want grow to X those continue things.

accretive are acquisitions on doing EBITDA the we're margins. So very

we're And that. like, up let's the so about guys, and do I'm let's And excited good so keep okay, -- again. it and work

Thomas Moll

is Kent. one for probably This

Kent. October, the Just in there you did some refinancing of to unpack

that is was I Your of up gross I or up, XXX points. think, now but basis will the be guess, debt reduced, then debt cost by

So what able of to number dial with for in just in going look environment? help to extent are the noise you fees us there's that in you interest current can calibrate quarter? And the would just here SOFR to thinking a in onetime rate fall on lot like expense away, you're run what us that then the are fourth

Kent Yee

Yes. Tommy. No, absolutely,

XXX be our million running it, the powder And expense with activity. call benefit will reduction The that's think We're the incremental, seeing to interest rate basis don't even well was the a will really obviously fuel ride, I'll quarter. and I around, points change. you're acquisition same. the the line we $XX.X as the absolute million think dry roughly run that to punch got $XX as I

I the about so terms be it that's in to if just one the you're it there P&L. Yes, way of think the And about time. will impacts how think thinking

We the have to analysis. go through

that at QX, is it where issuance know clear you And kind run the look facility some be in through million X% in gone at fair. you're is $XX. Keep per completed still yet, and the costs. right the but of haven't we'll think rate we through. haven't But about the $XX million And the that X point obviously, getting it to existing you're XXX%. want cost think We I year. you I interest to amortizes of mind, necessarily

So year. paying time as facility the X% down we'll be at goes on, per

if earlier answers and the conditions and we your think acquisitions -- we and will, that kind it similar, quarter, to our of question, market one a putting year, that's so. and being was just to Tommy, about of significant favorable I balance into how this think a contributor reprime you right do the It it. felt go And with with something pipeline if did so in sheet pretty XXXX, this us position then

Thomas Moll

realize that's particular specific say expectations currently appear Sure. I general, I front, that not capital And on correctly you any just you hear to provide that Kent, with to regard deal. in reasonable? characterization? deployment. did Did But hear I that seller

Kent Yee

I a and right? are understood still we were general higher that's think fair, I think environment. in interest rate in Yes, sellers speaking relatively

and And been and our pipeline we that. reasonable I from so what think reflect to fair see have continues valuations,

a average our communicated a we've the blended we're market, more. all, in to bit deals, be obviously, we on what we've businesses that And feel like aggressive, historically are been growing having and many pendulum still don't all so, highly across are to always little and too valuation we're we're ways, the push all strategic but willing the so. the to buying I in But where DXP, think

Thomas Moll

margin, where diversifying look you've end where growth, faster for for me. you're some your in future markets, a if back whether years, you ever et last program pipeline. One part one Close finding of higher time often deployment get over be portfolio. number David, been deals handful the the of Last be point of of year, any a topic in there the discussed cetera, you'd pockets et of that doesn't seller more your may a capital cetera. at this is this

reflecting time, situation some pry portfolio portfolio keep you just to I would the execution up looks of and early and So the an I ask? is forward a was business that's do if think have there's you -- it cycles, you multiple so answer sense it than I play shaping in the you it years a just a piece on the out different too fine, today lot for now make as to where tell, it look is has prior worth if and ever too. here been the or over

David Little

that appreciate downturns really really we've about you and that comment, any I about that to appreciate the like I not on or anything that, I good and Well, recognize diversification hard are I the us. feel good doing so that, you making have going fact that been big we're and feel

and that accomplish. I trying think feel pieces question, we a maybe good one the really I is Board they don't most fit or DXP where are we're don't That today. you consider either some So that matrix at really very is asked and that strong meetings, new the to that direction about fit there it financial right said, that

money. is, I the that your And to pretty question yes. think we're is makes where And everything -- these again, answer land decent so we doing

If we something dogs. sell really they're just here, and And like nice don't trying all that's to any we so a so do, it's not over dogs. dog we're have

joke they're when do I I'll and something. issue. I portfolio. going selling timing my to the first because about something. appropriate And admit has point feel all It's maximize something to remember don't not what It's been anyway, be they like a the Little well. performing then -- just my consideration. that the think is in besides they not it's -- can't we selling of But could David It's is it's do, what time that is a to And all selling

as then can. I'm But that. there -- it make going there's try some pretty bigger, around we've I and acquire to So to as thoughts much, I as much are gotten

Kent Yee

Yes. thing as look yes, marketplace is, we're in only add a fiduciary known but from Tommy, at there it, the guy. we a I'd the perspective, obviously, buy-and-hold

there out We're from us, things not our like it to sell fiduciary at look we're perspective, DXP, of we day. so attraction we and because part take a sellers every that's right? flipping seriously And of competitors the not when but

It's walk round differences in of but with of a not comments we're private so big We're marketplace a the we appreciate things. And question, I'd DXP equity. out the lot is it's -- one that. just the because for not delicate David's

that. we take in And so pride

that So kind bit. I'd add ending there little of a touch just

Thomas Moll

and appreciate from insight I turn the I'll both, and you Noted, it back.

Operator

now call turn the David remarks. will and I closing over CEO, back Little, for Chairman to

David Little

our us I to you all to and And there's the not, you Tommy, all DXP you appreciate for those thanks if team. joining today. are there, to else cover done thanks Thanks would there's ask. then joining things out the first, If like that and would DXP us. just to people our do people that We anything we've everybody ask acquisitions

to not whack about penny. all the think they And learn how last growth. expenses operate. I about appreciate take we're That's just We're our and trying to style. DXP everybody -- not to we and maximize trying

answering think I and move bigger a get to and not direction I that some I a I what things. do that very that's selling looked and that are say was -- asking forward to and at. longer-term things will bigger we Kent positive, be then appreciate company as and need buying on making point Typically, in was bigger portfolio answer a again a we're there may that

do. thank and strong that XXXX. the the So all DXP finish you for year with And you all off let's said, into again, people

Here we go. Thanks.

Operator

and you Thank Ladies today's joining. that gentlemen, concludes all call. for

You may now disconnect.

DXP Enterprises (DXPE) 5 Nov 242024 Q3 Earnings call transcript