Business
DXP Enterprises Files 10K/A and Issues Press Release
Immaterial changes in Sales Increase in Net Income in 2018, 2019 and slight decrease in 2020 Positive Balance Sheet impacts HOUSTON--(BUSINESS WIRE)-- DXP
About this update from Dxp Enterprises, Inc.
[{"type":"text","content":"\n\nImmaterial changes in Sales\n\n\nIncrease in Net Income in 2018, 2019 and slight decrease in 2020\n\n\nPositive Balance Sheet impacts\n\n\n HOUSTON--(BUSINESS WIRE)--\nDXP Enterprises, Inc. (NASDAQ: DXPE) today announced the filing of the Company’s 10K/A and comments on becoming current with subsequent filings.\n\nKent Yee, CFO remarked, “When I became CFO in mid-2017, our team set out to improve the processes, resources and talents of DXP’s finance and accounting function. Thus far, we have been successful in these efforts but we always have room to grow and the best is ahead. Change is not an event but a process. Early on, we transitioned the accounts payable process from primarily being manual to becoming more automated based upon our high invoice activity. In Q1 of 2019, we went live with a full procure-to-pay platform to assist DXP in handling purchase order backed, non-purchase order and employee expense activity. As a part of this initiative, we had to address and validate all existing and known liabilities. We have come to the end of that process and as a result we ended with a restatement and material weaknesses. Over 77 percent of the unvouchered purchase order receipts being written off are associated with balances from Q1 2019 and prior. While we wish we could have gone through the process in a timelier manner, DXP respects the accounting and auditor procedures, in a situation of this kind.”\n\nGene Padgett, CAO commented, “While a restatement is never ideal, measuring both the quantitative and qualitative impacts to the respective periods is keenly important. Quantitatively, our restatement analysis shows ultimate impacts of 7.6 percent, 2.8 percent and 1.9 percent to net income for the 2018, 2019 and 2020 fiscal year ends, respectively. For 2018 and 2019, these were positive impacts or increases to net income, while 2020 was a slight decrease based upon the accounting treatment associated with the exercise and other passed adjustments. Since joining in 2018 from Enbridge Inc., this has been a great journey where we have seen continuous improvement and a raised bar and the team will continue in that fashion. Coming from a large cap company, DXP has many similarities as large cap enterprises. Kent, Stephen Wick, DXP’s Controller, and I have been working towards finding talent, providers and resources that match D...