DXP Enterprises, Inc. (NASDAQ: DXPE)
today announced that for the fourth quarter ended December 31, 2010 it earned net income of $5.9 million, or $0.39 per fully diluted share. Sequentially, earnings per share improved 8.3% from $0.36 per fully diluted share, or $5.3 million in net income for the third quarter ended September 30, 2010. Compared to adjusted fourth quarter 2009 earnings of $2.6 million or $0.19 per fully diluted share, fourth quarter 2010 earnings per share improved 105.3%.
The fourth quarter and annual 2009 results included an impairment of goodwill and other intangibles of $53.0 million, a $13.8 million reduction in value of inventory and $5.6 million of restructuring and other special fourth quarter charges, amounting to $72.4 million of total charges. Absent these charges, adjusted EPS for the fourth quarter and full year 2009 would have been $0.19 and $0.76, respectively.
For the year ended December 31, 2010, DXP reported net income of $19.4 million, with diluted EPS of $1.32 compared to adjusted year end December 31, 2009 net income of $10.7 million, with EPS of $0.76 for an improvement of $8.7 million in net income or 73.7% per fully diluted share.
Sales for the fourth quarter of 2010 increased $31.8 million, or 23.1% to approximately $169.7 million from $137.8 million for the same period in 2009.
For the year ended December 31, 2010, DXP reported a sales increase of $73.0 million, or 12.5% to approximately $656.2 million from $583.2 million for 2009.
David R. Little, Chairman and Chief Executive Officer, remarked, “We achieved solid results in 2010. Operationally our business was more efficient and we continued to invest in our growth strategies. We spent approximately $18.4 million in cash on two acquisitions and launched several service centers in new geographies. As cash flow continues to grow we look forward to building a bigger and more efficient Company to serve the needs of our industrial customers. I would like to thank all of our dedicated employees for their hard work and outstanding execution to deliver this year’s results. 2011 looks bright as we enter the year with strong financial resources, great technology and an experienced team capable of delivering great products and services to our customers and excellent financial results to our shareholders. We believe that most of our markets, especially oil and gas, are improving.”