DXP Enterprises, Inc. · NASDAQ:DXPE
DXP Enterprises — Investor Presentation (July 2010)
23 slides from DXP Enterprises's investor presentation, July 2010
Slide 1: Presented by David Little and Mac McConnell, July 2010
Presented by: David Little Chairman, President & CEO Mac McConnell NASDAQ: DXPE Senior Vice President & CFO JULY 2010
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 uncertainties. Certain statements contained in this report are not purely historical, including statements regarding our expec
Slide 3: DXP Enterprises, Inc.
DXP ENTERPRISES, INC. • Leading provider to the industrial sector of MROP (maintenance, repair, operating and production) products and services delivered thru DXP’s DXP s three market segments – Innovative Pumping Solutions – Supply Chain Services – DXP Service Centers / DXP SuperCenters • Extensive
Slide 4: Market Approach
MARKET APPROACH MROP INNOVATIVE SUPPLY SERVICE PUMPING CHAIN CENTERS SOLUTIONS a SERVICES iar : ~ a4 Th, “, 7 hd
Slide 5: Customer Driven
CUSTOMER DRIVEN 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 Merger Candidates Merger Candidates Merger Candida
Slide 6: National Footprint
DXP Service Center DXP Supply Chain Services 4 Customer First Center ® Ballistic Dist Center Fabrication Center 6
Slide 7: Serving a Diverse Market
SERVING A DIVERSE MARKET Over 40,000 Customers • g q High y customer base quality across attractive industries Municipalities Aircraft Railroad • DXP concentration in solid Agriculture Mining growth sectors such as Steel Food & Refining Beverage energy, food & beverage and General sanitary Industrie
Slide 8: Customer Base
CUSTOMER BASE ————— Ch HUNTSMAN fF - Phillips: ” (Horie!) f ) nara Chemical Company SU HUGHES > EDODYV EAR as 43 HANOVER ARPS Pes %G PPG Industries Tr > D) 1 —_ -—_-—— E D a = > Schlumberger ie services kK KOCH «és me Cee Caney ARKEMA (™Pactral / GS /
Slide 9: Industry Partners
INDUSTRY PARTNERS Union Butterfield LaCross Rainfair Safety Products 9
Slide 10: Growth Strategy
GROWTH STRATEGY 10
Slide 11: DXP Service Centers
DXP SERVICE CENTERS Value Proposition: DXP Service Centers provide customized MRO service solutions, unsurpassed product selection, and leading industry expertise at a single source. BENEFITS TO OUR CUSTOMERS GROWTH INITIATIVES • One stop source • New product categories to existing • Customized solu
Slide 12: Service Center operating 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 DISTRIBUTION CENTER Trainees CUSTOMER FIRST CENTER Warehouse – Access Inventory FABRICATIO
Slide 13: DXP SuperCenter
DXP |SuperCeNnTER MAINTENANCE, REPAIR & OPERATING PRODUCTS & SERVICES
Slide 14: Service Centers vs SuperCenters revenue contribution
7 out of $10 revenue dollars come from Service Centers. 89 Service Centers 7% Avg. CM – ‘09 43% 57% Service Centers SuperCenters 23 SuperCenters 12% Avg. CM – ‘09 25% of DXP locations bring in 43% of total MROP revenue. 14
Slide 15: Supply Chain Services
SUPPLY CHAIN SERVICES Value Proposition: expertise in optimizing Supply Chain costs through first tier relationships. BENEFITS TO OUR CUSTOMERS GROWTH INITIATIVES • Reduce Costs: • Leverage g existing g accounts – Product cost – Introducing more products – Transaction cost – Admin. cost – Additional
Slide 16: Innovative Pumping Solutions
INNOVATIVE PUMPING SOLUTIONS® Value Proposition: expertise on engineering, fabrication, service, repair and maintenance programs. BENEFITS TO OUR CUSTOMERS GROWTH INITIATIVES • y modular systems Quality y tailored to • Focus on after market service the customer’s needs • New product development • Co
Slide 17: Acquisition Strategy
ACQUISITION STRATEGY • Acquire profitable industrial distribution companies with the following attributes – S i new geographic Serving hi areas / growing i share h iin existing i ti markets k t – Offering new services / strengthening existing offering / new products – Portfolio of satisfied customer
Slide 18: Operational Strategy
OPERATIONAL STRATEGY 18
Slide 19: Operational Strategy
OPERATIONAL STRATEGY • Operational Excellence – An operation framework that defines baseline expectations and standardizes the inspection of those expectations • Margin Enhancement – develop a program that builds a culture around: – Be high and be worth it! – Believe you are worth it! – Show your cu
Slide 20: Financial Overview
FINANCIAL OVERVIEW 20
Slide 21: Revenue & EBITDA Performance
REVENUE & EBITDA PERFORMANCE Revenue EBITDA ($ millions) ($ millions) $59.4 $736.9 $583.3 $37.2 $444.5 $29 0* $29.0 $314.3 $302.0 $23.1 $279.8 $20.8 $17.7 $185.4 $160.6 $10.6 $150.7 $6.3 $5.4 3.6% 3.9% 5.7% 8.3% 8.4% 8.1% 5.0% 6.6% EBITDA 5.9% % of Sales 2003 2004 2005 2006 2007 2008 2009 6 Mos. 6 M
Slide 22: Net Income & Earnings Per Share
NET INCOME & EARNINGS PER SHARE Net Income Earnings Per Share ($ millions) illi ) ($ millions) illi ) $1.87 $25.9 $1.35 $17.3 $1.04 $11.9 $8.2 $0.57 $7.4* $0.47 $0.53* $5.5 $0.38 $5.3 $0.25 $2.8 $0.21 $2.1 2003 2004 2005 2006 2007 2008 2009 6 Mos. 6 Mos. 2003 2004 2005 2006 2007 2008 2009 6 Mos. 6 M
Slide 23: The Industrial Distribution Experts
THE INDUSTRIAL DISTRIBUTION EXPERTS