DXP Enterprises, Inc. · NASDAQ:DXPE
DXP Enterprises — Investor Presentation (September 2011)
21 slides from DXP Enterprises's investor presentation, September 2011
Slide 1: Presented by David Little, Mac McConnell, Kent Yee
Presented by: David Little Chairman, President & CEO Mac McConnell Senior Vice President & CFO Kent Yee NASDAQ: DXPE Senior Vice President of Corporate Development SEPTEMBER 2011
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.
DXP ENTERPRISES, INC. • Leading provider of MROP (maintenance, repair, operating and production) products and services delivered thru three business segments – Innovative Pumping Solutions – Supply Chain Services – Service Centers / SuperCenters • Extensive product knowledge in rotating equipment, b
Slide 4: Unique Market Approach
INNOVATIVE PUMPING SOLUTIONS o SUPPLY CHAIN SERVICES DXP | 2: fh i Tate * Nip} Tie wes ME sy i
Slide 5: Customer Driven Experts in MROP Solutions
CUSTOMER DRIVEN EXPERTS IN MROP SOLUTIONS Customer Innovative Pumping Supply Service Centers Solutions Chain Services Regional Rotating B&PT Industrial Safety Customer Distribution Equipment Equipment Supplies Services First Centers Division Division Division Division Center Acquisition Acquisition
Slide 6: Growing National Footprint
GROWING NATIONAL FOOTPRINT 6
Slide 7: Serving a Diverse Market
SERVING A DIVERSE MARKET Over 40,000 Customers • High quality customer base Refining across attractive industries 3% Municipal Military 1% Steel 1% Fabrication & 1% Construction Alternative Energy Mining 3% Agriculture Other 1% • Concentration in solid growth 3% 3% Oil & Gas Power 1% 4% 26% sectors
Slide 8: Strong Customer Base
STRONG CUSTOMER BASE a Chevron HUNTSMAN = Phillips Coated fit paren Chemical Company’ (a _~ HUGHES a) wnineian p < HANOVER APS Sone S PPG Industries Te! 2 q Schlumberger KeKOCH es} ARKEMA 8
Slide 9: Long Standing Industry Partners
LONG STANDING INDUSTRY PARTNERS Union Butterfield LaCross Rainfair Safety Products 9
Slide 10: Growth Strategy
gy GROWTH STRATEGY 10
Slide 11: Service Centers
SERVICE CENTERS Value Proposition: Provide customized MROP service solutions, unsurpassed product selection, and leading industry expertise at a single source BENEFITS TO OUR CUSTOMERS GROWTH INITIATIVES • One stop source • SuperCenters • Customized solutions • New product categories to existing cus
Slide 12: Service Center and 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 13: 25% of DXP locations were SuperCenters, 44% of Service Center revenue
During 2010 89 Service Centers 8.5% Avg. CM 44% 56% Service Centers SuperCenters During 2010 23 SuperCenters 10.3% Avg. CM 25% of DXP locations were SuperCenter locations and contributed 44% of total Service Center segment revenue. Figures on this slide are based on information and financial data fr
Slide 14: Supply Chain Services
SUPPLY CHAIN SERVICES Value Proposition: Expertise in optimizing Supply Chain costs through first tier relationships BENEFITS TO OUR CUSTOMERS GROWTH INITIATIVES • Reduce Costs: • Leverage existing accounts – Product cost – Introducing more products – Transaction cost – Admin. cost – Additional site
Slide 15: Innovative Pumping Solutions
INNOVATIVE PUMPING SOLUTIONS® Value Proposition: Expertise in engineering, fabrication, service, repair and maintenance programs BENEFITS TO OUR CUSTOMERS GROWTH INITIATIVES • Quality modular systems tailored to • Focus on after market service the customer’s needs • New product development • Competi
Slide 16: Acquisition Strategy
ACQUISITION STRATEGY • Acquire profitable industrial distribution companies with the following attributes – Offering new technical products & services / strengthening existing offering – Serving new geographic areas / growing share in existing markets – Differentiated business model – Portfolio of s
Slide 17: Financial Overview
gy FINANCIAL OVERVIEW ae 17
Slide 18: Financial Summary
FINANCIAL SUMMARY Revenue Gross Profit ($ millions) ($ millions) $207.0 $736.9 $188.4 $656.2 $583.2 $151.4 $444.5 $125.7 $197.7 $167.3 $57.3 $47.9 58.9% 65.8% -20.9% 12.5% 15.9% 18.2% 28.3% 28.1% 26.0% 28.7% 28.6% 29.0% 2007 2008 2009 2010 Q2'10 Q2'11 2007 2008 2009 2010 Q2'10 Q2'11 Percentage refle
Slide 19: Financial Summary (Cont'd)
FINANCIAL SUMMARY (CONT’D) Diluted Earnings Per Share Free Cash Flow ($ millions) $1.87 $50.0 $1.35 $1.32 $22.7 $20.5 *$0.53 $0.50 $11.6 $13.3 $13.6 $0.31 29.8% 38.5% -71.7% 149.1% 106.7% 61.3% 2007 2008 2009 2010 Q2'10 Q2'11 2007 2008 2009 2010 Q2'10 Q2'11 Percentage reflects YOY EPS growth Free ca
Slide 20: Capital Structure
CAPITAL STRUCTURE ($ millions) As of June 30, 2011 • Healthy, strong balance sheet Cash $1.1 • Solid cash flow Debt Revolver 98.6 • Revolving credit facility with $71.6 million of availability(2) Total Senior Debt 98.6 • Moderate leverage Other Debt 2.6 • Poised for future growth Total Debt $101.2 S
Slide 21: DXP The Industrial Distribution Experts
DXP THE INDUSTRIAL DISTRIBUTION EXPERTS NASDAQ: DXPE SEPTEMBER 2011
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