COMPANY WATCH
DXP Enterprises Inc, USA Key Figures (US$ million) Three months ended 30.9 2012
Met-Pro Corp, USA Key Figures (US$ million) Three months ended 31.10 2012
2011
Sales Of Which: Innovative Pumping Solutions
289.9
207.9
38.9
31.3
Cost of Sales
206.4
148.4
2011
Net Sales Of Which: Fluid Handling Technologies
29.8
25.2
10.6
7.3
Cost of Goods Sold
19.1
15.9
10.7
9.3
Gross Profit
83.5
59.5
Gross Profit
Selling, General and Admin Expense
59.0
45.0
4.2
3.0
Operating Income
24.5
14.4
Net Income
13.1
8.3
Income from Operations Of Which: Fluid Handling Technologies
3.1
1.7
Net Income
2.8
2.1
Nine months ended 30.9 2012
2011
Nine months ended 31.10 2012
2011
Sales Of Which: Innovative Pumping Solutions
804.1
588.6
113.5
69.8
Cost of Sales
572.5
419.5
Gross Profit
231.6
169.2
Selling, General and Admin Expense
166.3
129.6
Operating Income
65.3
39.6
Net Income
36.9
22.2
Net Sales Of Which: Fluid Handling Technologies
83.0
71.8
28.3
24.3
Cost of Goods Sold
54.7
46.2
Gross Profit
28.3
25.5
Income from Operations Of Which: Fluid Handling Technologies
8.4
7.3
7.9
5.9
Net Income
5.7
5.0
COMMENT DXP Enterprises Inc’s third quarter 2012 net income of US$13.1 million was significantly up on the net income of US$8.3 million delivered in the third quarter of 2011. Sales increased US$82.1 million, or 39.5%, to approximately US$289.9 million over the same time-frame. After excluding acquisitions, sales increased 7.4% from 2011, on a same store sales basis. For the nine months ended 30 September 2012, net income was US$36.9 million, compared with US$22.2 million for the first nine months of 2011. Nine month 2012 sales increased US$215.5 million, or 36.6%, to approximately US$804.1 million from US$588.6 million for the same period in 2011. After excluding acquisitions, nine month sales increased 13.2% from 2011 on a same store sales basis.
8
Pump Industry Analyst
David Little, DXP Enterprises chairman and CEO, said: “We are pleased to report a strong third quarter in sales and profitability. On a trailing 12 month basis, we exceeded our sales goal of US$1 billion and third quarter EBITDA margins were 10.6%. Congratulations to DXPeople for achieving our financial goals earlier than expected. We also added three new SuperCenters in the third quarter. We believe that our internal and external growth strategies will take market share despite the uncertainty and softness in the market. We look forward to our new financial goals of US$2 billion in sales by 2016 at 10% EBITDA margins and our moral goal of providing the opportunity for DXPeople and customers to be more successful.” ■ www.dxpe.com
COMMENT Met-Pro Corp delivered a 34% increase in net income on 18% net sales growth for the third quarter ended 31 October 2012. New orders received in the third quarter were US$24.4 million, compared with US$27.5 million last year. The company’s backlog of orders entering the fourth quarter reached US$28.6 million, unchanged on a year ago. “Strong top line growth and focus on execution and cost control enabled us to achieve a 34% increase in net income. Each of the company’s business segments was profitable for the quarter. Though the pace of firm orders received in the third quarter slowed as compared to the third quarter of last year, our order backlog and
the breadth of our quotation activity remain strong. While there is continuing economic uncertainty in the US and other key global economies that could impact our forecasts, we expect to report growth in full year earnings this fiscal year, which would be our third consecutive year having done so, and are well positioned to continue this trend next year,” said Raymond De Hont, Met-Pro’s CEO and president. Net sales for the nine months ended 31 October 2012 were US$83.0 million, up 16% on the same period last year. Net income reached US$5.7 million in the first nine months of 2012, an increase of 14% on a year ago. ■ www.met-pro.com
January 2013