DXP Enterprises Inc (DXPE) Reports Solid Fiscal 2023 Results with Notable Growth in Sales and ...
Sales Growth: Fiscal 2023 sales climbed to $1.7 billion, marking a 13.4% increase from the previous fiscal year.
Earnings Per Share: GAAP diluted EPS for the year stood at $3.89, reflecting a significant improvement from $2.47 in fiscal 2022.
Net Income: Net income rose to $68.8 million, up from $48.2 million in the prior year.
Adjusted EBITDA: The company reported $174.3 million in adjusted EBITDA, a substantial increase from the previous year.
Share Repurchase: DXP Enterprises repurchased 1.7 million shares for $54.7 million during fiscal 2023.
Acquisitions: The company successfully closed three acquisitions, contributing to its growth strategy.
Cash Position: DXP Enterprises ended the year with a strong cash and restricted cash position of $173.2 million.
On March 7, 2024, DXP Enterprises Inc (NASDAQ:DXPE) released its 8-K filing, announcing the financial results for the fourth quarter and fiscal year ended December 31, 2023. The company, a leading distributor of products and services to industrial customers, has reported a robust fiscal year with significant growth in sales, net income, and earnings per share.
Financial Performance and Highlights
DXP Enterprises' fiscal 2023 sales reached $1.7 billion, a 13.4% increase from fiscal 2022, driven by strong performance across all business segments. The company's GAAP diluted EPS was $3.89, and adjusted diluted EPS was $4.09, both showing notable improvements from the previous year. Net income for the year increased by $20.7 million to $68.8 million, compared to $48.2 million for fiscal 2022.
The company's adjusted EBITDA for 2023 was $174.3 million, up from $126.8 million in 2022, with adjusted EBITDA as a percentage of sales improving to 10.4%. Free cash flow for the fiscal year was impressive at $94.0 million, which is 55.2% of EBITDA, compared to just $1.0 million in fiscal 2022.
Operational and Segment Highlights
DXP Enterprises' Service Centers' revenue for the fiscal year was $1.1 billion, an increase of 13.4% year-over-year. The Innovative Pumping Solutions segment saw an 18.2% increase in revenue, reaching $273.2 million, while the Supply Chain Services segment grew by 8.3%, achieving $260.4 million in revenue.
Chairman and CEO David R. Little expressed satisfaction with the fiscal year's results, attributing the success to the company's broad-based business strength and the hard work of the DXPeople. CFO Kent Yee highlighted the company's strategic execution, which led to significant growth in sales and adjusted EBITDA. He also noted the strengthened balance sheet and the company's positioning for continued growth and shareholder value in 2024.
Strategic Acquisitions and Share Repurchases
Throughout fiscal 2023, DXP Enterprises closed three acquisitions: Florida Valve, Riordan, and Alliance Pump & Mechanical. These strategic moves are part of the company's growth strategy and contribute to its diverse offerings. Additionally, the company repurchased 1.7 million shares for $54.7 million, demonstrating confidence in its financial health and commitment to delivering shareholder value.
Looking Forward
With a strong finish to fiscal 2023, DXP Enterprises is well-positioned for the future. The company's diversified end markets, successful acquisitions, and operational discipline are expected to continue driving growth and profitability. The positive dynamics in traditional markets, such as oil & gas, and promising outlooks in sectors like water & wastewater, provide a favorable backdrop for DXP Enterprises' strategic initiatives going into 2024.
For detailed financial figures and additional information, readers can view the full earnings release and financial statements in the company's 8-K filing.
Explore the complete 8-K earnings release (here) from DXP Enterprises Inc for further details.
This article first appeared on GuruFocus.
