DXP Enterprises, Inc. · NASDAQ:DXPE
DXP Enterprises — Investor Presentation (May 2012)
21 slides from DXP Enterprises's investor presentation, May 2012
Slide 1: DXP Management Presentation May 2012
Presented by: David Little Chairman, President & CEO Mac McConnell Senior Vice President & CFO Kent Yee NASDAQ: DXPE Senior Vice President of Corporate Development MAY 2012
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the U. S. federal securities laws that involve risks and uncertainties. Certain statements contained in this report are not purely historical, including statements regarding our expectations, belie
Slide 3: DXP Enterprises, Inc. At-A-Glance
DXP ENTERPRISES, INC. AT-A-GLANCE Leading provider of technical products and services for MRO (maintenance, repair, operating), OEM and capital equipment customers… Last Twelve Months (LTM): Revenue: $876.2 million EBITDA: $ 74.7 million Free Cash Flow: $ 40.3 million ROIC: 30.2% Innovative LTM Sale
Slide 4: DXP Today
DXP TODAY Growth and profit expansion despite market volatility… KEY DRIVERS • Serving growing and dynamic markets – oil and gas, mining, power, chemicals, etc. DXP growth strategies designed to take market share • …Execution is producing strong results. – SuperCenters • Recent customer wins and imp
Slide 5: Recent Financial Results
RECENT FINANCIAL RESULTS Financial impact – the evidence SALES VS. PRIOR YEAR EBITDA MARGIN (EBITDA%) 40% 38% 10.0% 9.1% 8.2% 8.2% 8.4% 35% 7.6% 8.0% 7.1% 30% 26% 25% 25% 21% 6.0% 20% 18% 15% 13% 4.0% 10% 2.0% 5% 0% 0.0% 2010 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 2010 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 VERSUS OR
Slide 6: Unique Market Approach
UNIQUE MARKET APPROACH ox SUPPLY CHAIN SERVICES INNOVATIVE SERVICE p PUMPING p SOLUTIONS © D4 CENTERS
Slide 7: Breadth of Technical Products & Services
CUSTOMER DRIVEN EXPERTS IN MROP SOLUTIONS Customer Innovative Supply Service Centers Pumping Solutions Chain Services #1 #4 Top Top Top 5 15 10 Regional Rotating B&PT Metal Industrial Safety Customer Distribution Equipment Equipment Working Supplies Services First Centers Division Division Division
Slide 8: Growing National Footprint
GROWING NATIONAL FOOTPRINT 8
Slide 9: DXP Canada
DXP CANADA HSE Integrated (21) Expected to be acquired July 2012 Industrial Paramedic Services (IPS) (6) 9
Slide 10: Leading Positions in Markets & Products
LEADING POSITIONS IN MARKETS & PRODUCTS DIVERSE, GROWING END MARKETS BREADTH OF TECHNICAL PRODUCTS & SERVICES Over 40,000 Customers Over 100+ Product Groups Fabrication & Safety Products & Construction Agriculture Refining Services Mining Other 3% 3% 3% 8% 3% 5% Power Oil & Gas 26% Industrial Rotati
Slide 11: Strong Customer and Supplier Relationships
STRONG CUSTOMER AND SUPPLIER RELATIONSHIPS KEY CUSTOMER RELATIONSHIPS LONG STANDING INDUSTRY PARTNERS 11
Slide 12: Growth Strategy
GROWTH STRATEGY 12
Slide 13: DXP Growth Strategy
DXP GROWTH STRATEGY III. EXPAND • Strengthening geographic position • New stores in underserved markets 1. 9 M&A Strategy 8 New Markets 2. 7 New Geographies 3. II. ENHANCE • Margin enhancement and pricing effectiveness 6 Scale & Purchasing Power 1. • Increase value to our customer 2. 5 New Products
Slide 14: SuperCenter model and locations
Outside Sales Outside Sales Outside Sales Outside Sales Pumps, etc. B&PT, etc. Cutting Tools, etc Safety Service, etc CSR CSR CSR CSR Pumps B&PT Industrial Safety Supplies, Service Cutting Tools, etc. REGIONAL BALLISTIC DISTRIBUTION CENTER Trainees CUSTOMER FIRST CENTER Warehouse – Access Inventory
Slide 15: Why SuperCenters Work?
WHY SUPERCENTERS WORK? By Year End 2011 123 Service Centers 11% Avg. CM 51% 49% By Year End 2011 28 SuperCenters Service Centers 12% Avg. CM SuperCenters By the end of 2011, 23% of DXP locations were SuperCenter locations and contributed 51% of total Service Center segment revenue. Figures on this s
Slide 16: Financial Overview
FINANCIAL OVERVIEW 16
Slide 17: Year-Over-Year Revenue & Earnings Growth
YEAR-OVER-YEAR REVENUE & EARNINGS GROWTH Total Q1’12 Growth: 37.8% Organic Q1’12 Growth: 20.4% $1,000 Total $900 Growth: 23.0% Total Organic Growth: 65.8% Growth: 15.8% $800 Organic Total Growth: 13.2% Growth: 12.5% $ IN MILLIONS $700 Total Organic Decline: -20.9% Growth: 5% Organic $600 Decline: -2
Slide 18: Financial Summary
FINANCIAL SUMMARY Revenue Gross Profit ($ millions) ($ millions) $807.0 $231.8 $736.9 $207.0 $656.2 $188.4 $583.2 $151.4 $444.5 $125.7 $252.3 $183.1 $71.5 $52.4 58.9% 65.8% -20.9% 12.5% 23% 24.0% 37.8% 28.3% 28.1% 26.0% 28.7% 28.7% 28.6% 28.3% 2007 2008 2009 2010 2011 Q1'11 Q1'12 2007 2008 2009 2010
Slide 19: Financial Summary (Cont'd)
FINANCIAL SUMMARY (CONT’D) Diluted Earnings Per Share Free Cash Flow ($ millions) $2.08 $1.87 $50.0 $1.35 $1.32 $25.8 $0.77 $22.7 $21.7 *$0.53 $0.42 $13.3 $11.6 29.8% 38.5% -71.7% 149.1% 57.6% 61.5% 83.3% 2007 2008 2009 2010 2011 Q1'11 Q1'12 2007 2008 2009 2010 2011 3M '12 Percentage reflects YOY EP
Slide 20: Capital Structure
CAPITAL STRUCTURE ($ millions) As of March 31, 2012 • Healthy, strong balance sheet Cash $3.5 • Solid cash flow Total Debt $133.4 • Revolving credit facility with $69.5 million Shareholders’ Equity 168.7 of availability(2) Total Capitalization 302.1 • Moderate leverage LTM EBITDA(1) 84.9 Total Debt/
Slide 21: DXP: The Industrial Distribution Experts
DXP THE INDUSTRIAL DISTRIBUTION EXPERTS NASDAQ: DXPE MAY 2012