DXP Enterprises, Inc. · NASDAQ:DXPE
DXP Enterprises — Investor Presentation (February 2012)
21 slides from DXP Enterprises's investor presentation, February 2012
Slide 1: Management presentation Jan-Feb 2012
Presented by: David Little Chairman, President & CEO Mac McConnell Senior Vice President & CFO Kent Yee NASDAQ: DXPE Senior Vice President of Corporate Development JAN-FEB 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: $758.3 million EBITDA: $ 60.7 million Free Cash Flow: $ 20.0 million ROIC: 30.3% LTM Sales % by Bus
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 …Execution is producing strong results. market share – 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%) 30% 8.5% 8.2% 8.2% 25% 8.0% 25% 23% 21% 8.0% 20% 7.6% 20% 18% 16% 7.5% 7.3% 15% 7.0% 6.9% 10% 5% 6.5% 0% 6.0% Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 VERSUS PRIOR YEA
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 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: 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 Other Services Mining 3% 3% 3% 8% 3% 5% Oil & Gas Power Industrial Rotating 4
Slide 10: Strong Customer and Supplier Relationships
STRONG CUSTOMER AND SUPPLIER RELATIONSHIPS KEY CUSTOMER RELATIONSHIPS LONG STANDING INDUSTRY PARTNERS 10
Slide 11: Growth Strategy
GROWTH STRATEGY 11
Slide 12: DXP Growth Strategy
DXP GROWTH STRATEGY III. EXPAND • Strengthening geographic position • New stores in underserved markets 1. 9 M&A Strategy 2. 8 New Markets 3. 7 New Geographies II. ENHANCE • Margin enhancement and pricing effectiveness 1. 6 Scale & Purchasing Power • Increase value to our customer 2. 5 New Products
Slide 13: 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 14: Why SuperCenters Work?
WHY SUPERCENTERS WORK? During 2010 89 Service Centers 8.5% Avg. CM 44% 56% During 2010 23 SuperCenters Service Centers 10.3% Avg. CM SuperCenters 25% of DXP locations were SuperCenter locations and contributed 44% of total Service Center segment revenue. Figures on this slide are based on informatio
Slide 15: 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 16: Financial Overview
FINANCIAL OVERVIEW 16
Slide 17: 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 $172.2 $207.9 $59.5 $48.9 58.9% 65.8% -20.9% 12.5% 20.1% 20.7% 28.3% 28.1% 26.0% 28.7% 28.4% 28.6% 2007 2008 2009 2010 Q3'10 Q3'11 2007 2008 2009 2010 Q3'10 Q3'11 Percentage refle
Slide 18: Financial Summary (Cont'd)
FINANCIAL SUMMARY (CONT’D) Diluted Earnings Per Share Free Cash Flow ($ millions) $1.87 $50.0 $1.35 $1.32 $22.7 $17.8 *$0.53 $0.55 $13.3 $14.9 $0.36 $11.6 29.8% 38.5% -71.7% 149.1% 89.5% 52.8% 2007 2008 2009 2010 Q3'10 Q3'11 2007 2008 2009 2010 9M '10 9M '11 Percentage reflects YOY EPS growth Free c
Slide 19: Year-over-Year Revenue & Earnings
YEAR-OVER-YEAR REVENUE & EARNINGS Total Growth: 65.8% $800 Organic Growth: 13.2% Total Growth: 12.5% $700 Organic Total Growth: 5% Decline: -20.9% Organic $600 Decline: -25.8% $ IN MILLIONS Total Growth: 58.9% $500 Organic Growth: 15.7% $400 Total Growth: 51.0% Organic $300 Total Growth: 32.3% $1.87
Slide 20: Capital Structure
CAPITAL STRUCTURE ($ millions) As of September 30, 2011 • Healthy, strong balance sheet Cash $1.7 • Solid cash flow Debt Revolver 96.7 • Revolving credit facility with $51.6 million of availability(2) Total Senior Debt 96.7 • Moderate leverage Other Debt 4.2 • Poised for future growth Total Debt $10
Slide 21: DXP The Industrial Distribution Experts
DXP THE INDUSTRIAL DISTRIBUTION EXPERTS NASDAQ: DXPE JAN-FEB 2012
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