DXP Enterprises, Inc. · NASDAQ:DXPE
DXP Enterprises — Investor Presentation (November 2012)
23 slides from DXP Enterprises's investor presentation, November 2012
Slide 1: Management Presentation November 2012
Presented by: David Little Chairman, President & CEO Mac McConnell Senior Vice President & CFO Kent Yee NASDAQ: DXPE Senior Vice President of Corporate Development NOVEMBER 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: $1,022.5 million EBITDA: $ 97.0 million Free Cash Flow: $ 15.0 million ROIC: 28.8 % LTM Sales % by B
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 • Strategic and accretive acqu
Slide 5: Recent Financial Results
RECENT FINANCIAL RESULTS Financial impact – the evidence SALES VS. PRIOR YEAR EBITDA MARGIN (EBITDA%) 45% 40% 12.0% 10.6% 40% 38% 33% 10.0% 9.1% 9.4% 35% 8.2% 8.2% 8.4% 7.6% 30% 25% 26% 8.0% 7.1% 25% 21% 18% 6.0% 20% 15% 13% 4.0% 10% 2.0% 5% 0% 0.0% 2010 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 201
Slide 6: Unique Market Approach
— UNIQUE MARKET APPROACH INNOVATIVE PUMPING SOLUTIONS @ SUPPLY CHAIN SERVICES
Slide 7: Customer Driven Experts in MROP Solutions
CUSTOMER DRIVEN EXPERTS IN MROP SOLUTIONS Customer Innovative Supply Service Centers Pumping Solutions Chain Services #1 #4 Top Top Top 5 15 3 Regional Rotating B&PT Metal Industrial Safety Customer Distribution Equipment Equipment Working Supplies Services First Centers Division Division Division D
Slide 8: 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 & Construction Agriculture Refining Metal Working Mining Other Safety Products & 14% 5% 2% 2% 3% 5% Oil & Gas Services Power 20% Ro
Slide 9: Growing Geographic Footprint
GROWING GEOGRAPHIC FOOTPRINT 9
Slide 10: Growing Geographic Footprint - DXP Canada
GROWING GEOGRAPHIC FOOTPRINT - DXP CANADA British Columbia Alberta Saskatchewan Ontario Dawson Creek Bonnyville Weyburn Oldcastle Fort Nelson Brooks Sarnia HSE Integrated (20) Fort St. John Calgary Stoney Creek Edmonton Industrial Paramedic Services (3) Fort McMurray Fort Saskatchewan Austin & Denho
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 Leading provider of technical products and services. . . . . . . Customer Innovative Supply Service Centers Pumping Solutions Chain Services #1 #4 Top Top Top 5 15 3 Regional Rotating B&PT Metal Industrial Safety Customer Distribution Equipment Equipment Working Supplies Services
Slide 14: Acquisition Strategy & Growth Process
ACQUISITION STRATEGY & GROWTH PROCESS Customer Innovative Supply Service Centers Pumping Solutions Chain Services #1 #4 Top Top Top 5 15 3 Regional Rotating B&PT Metal Industrial Safety Customer Distribution Equipment Equipment Working Supplies Services First Centers Division Division Division Divis
Slide 15: DXP Canada Enterprises, Ltd.
DXP CANADA ENTERPRISES, LTD. CANADIAN MARKET DYNAMICS • Stable and predictable business environment - - strong banking system, low net debt-to-GDP ratio, reliable access to North American and global markets • Driven by natural resource sectors • Long-term growth prospects for oil, gas and mining ver
Slide 16: Track Record of Successful M&A
TRACK RECORD OF SUCCESSFUL M&A LTM Revenue* Date Acquisition Product Division Region ($ millions) Bearings October -12 Jerzy Industries U.S./Houston $9 & Power Transmission July -12 HSE Integrated Safety Canada $105 June - 12 Austin & Denholm Rotating Equipment Canada $7 Industrial Paramedic May - 1
Slide 17: Financial Overview
FINANCIAL OVERVIEW 17
Slide 18: Year-over-Year Revenue & Earnings Growth
YEAR-OVER-YEAR REVENUE & EARNINGS GROWTH Total 9M’12 Growth: 36.6% Organic 9M’12 Growth: 13.2% $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 Decline: -20.9% Organic Growth: 5% Organic $600 Decline: -2
Slide 19: Financial Summary
FINANCIAL SUMMARY Revenue Gross Profit ($ millions) ($ millions) $807.0 $231.8 $736.9 $207.0 $656.2 $188.4 $583.2 $151.4 $444.5 $125.7 $289.9 $207.9 $83.5 $59.5 58.9% 65.8% -20.9% 12.5% 23.0% 20.7% 39.5% 28.3% 28.1% 26.0% 28.7% 28.7% 28.6% 28.8% 2007 2008 2009 2010 2011 Q3'11 Q3'12 2007 2008 2009 20
Slide 20: Financial Summary (Cont'd)
FINANCIAL SUMMARY (CONT’D) Diluted Earnings Per Share Free Cash Flow ($ millions) $2.08 $1.87 $50.0 $1.35 $1.32 $0.86 $22.7 $21.7 *$0.53 $0.55 $13.3 $11.6 $8.2 29.8% 38.5% -71.7% 149.1% 57.6% 52.8% 56.4% 2007 2008 2009 2010 2011 Q3'11 Q3'12 2007 2008 2009 2010 2011 9M '12 Percentage reflects YOY EPS
Slide 21: Capital Structure
CAPITAL STRUCTURE ($ millions) As of September 30, 2012 • Healthy, strong balance sheet Cash $12.2 • Solid cash flow Total Debt $259.0 • New Senior Credit Facility Shareholders’ Equity 196.4 – $225 million revolver Total Book Capitalization 455.4 – $100 million term loan – $100 million accordion fea
Slide 22: Capital Structure (Cont'd)
CAPITAL STRUCTURE (CONT’D) LEVERAGE RATIO STRONG CAPITAL STRUCTURE 4.0x • Access to multiple capital markets 3.5x • Leverage ratio below 3.0x 3.3 3.3 • Supports growth strategy 3.0x 2.9 2.8 2.7 2.6 2.5x 2.5 2.4 2.2 2.0x 1.8 1.6 1.6 1.5x 1.0x 0.5x - 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1 Q2
Slide 23: DXP The Industrial Distribution Experts
DXP THE INDUSTRIAL DISTRIBUTION EXPERTS NASDAQ: DXPE NOVEMBER 2012
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