Dxp Enterprises Inc (DXPE) SEC Filing 10-K Annual report for the fiscal year ending Monday, December 31, 2018

Exhibit 99.1

DXP Enterprises Announces Fourth Quarter and Fiscal 2018 Results

• Fiscal 2018 sales of $1.2 billion, up 20.8 percent, including 16.1 percent organic growth
• Full year GAAP diluted EPS of $1.94, up 108.6 percent versus fiscal 2017
• Net income of $35.5 million versus $16.8 million compared to fiscal 2017
• $95.8 million in earnings before interest, taxes, depreciation and amortization (“EBITDA”)
• Free cash flow of $29.1 million, including $2.6 million in proceeds from the sale of assets
• Net debt of $208.4 million with $40.3 million in cash on the balance sheet

HOUSTON--(BUSINESS WIRE)--March 7, 2019--

Fourth Quarter 2018 financial highlights:

• Sales increased 17.1 percent to $311.0 million, compared to $265.6 million for the fourth quarter of 2017.
• Earnings per diluted share for the fourth quarter was $0.60 based upon 18.4 million diluted shares, compared to $0.36 per share in the fourth quarter of 2017, based on 18.2 million diluted shares.
• Earnings before interest, taxes, depreciation and amortization (EBITDA) for the fourth quarter was $26.8 million compared to $15.8 million for the fourth quarter of 2017, an increase of 69.3 percent. EBITDA as a percentage of sales was 8.6 percent and 6.0 percent, respectively.

Fiscal Year 2018 financial highlights:

• Sales increased 20.8 percent to $1.2 billion , compared to $1.0 billion for 2017.
• Earnings per diluted share for 2018 of $1.94 based upon 18.4 million diluted shares, compared to $0.93 per share in 2017, based on 18.2 million diluted shares.
• Earnings before interest, taxes, depreciation and amortization (EBITDA) for the 2018 was $95.8 million compared to $61.7 million for 2017, an increase of 55.2 percent. EBITDA as a percentage of sales was 7.9 percent and 6.1 percent, respectively.

David R. Little, Chairman and CEO commented, “We are pleased with our fourth quarter results which wrapped up a tremendous fiscal 2018. In 2018, we returned to the sales growth we are accustomed to experiencing. This was driven through a combination of strong organic sales from our core, complemented by the acquisition of Application Specialties. This turned into 20.8 percent total sales growth with 16.1 percent organic growth. During the year, we delivered strong sales and EBITDA margin expansion, leading to significant earnings per share. We believe we continue to gain market share in many of our businesses driven by our focus on being fast, convenience, and technical experts for our customers. 'DXPeople you can trust.'

“DXP's fiscal 2018 total sales were $1.2 billion. Fiscal 2018 sales for Innovative Pumping Solutions grew 43.0 percent, Service Centers grew 17.0 percent and Supply Chain Services grew 8.0 percent. DXP produced total EBITDA of $95.8 million growing 55.2 percent over fiscal 2017.

“We continue to expect strong organic sales growth, EBITDA margin enhancement and strong cash flow generation. We are watching our key end markets closely, as the new normal seems to be periodic episodes of volatility as we experienced during the back of 2018. In fiscal 2019, we will build on the positive momentum generated in our business in 2018 and further the execution of our growth strategy, investments in our people and processes and maintain our cost discipline."

Kent Yee, CFO commented, “Fiscal 2018 financial performance reflects the execution of our financial goals and strategy. Total sales and EBITDA grew 20.8 percent and 55.2 percent, respectively. We delivered strong sales growth, operating margin expansion and thus operating leverage of 2.7x and notable free cash flow generation. Our fiscal 2018 diluted earnings per share was $1.94. We are pleased with the fourth quarter and year-end results. Our core business remains sound and continues to rebound and perform well. Our balance sheet is positioned to support the business over the long term. DXP ended the year with $40.3 million in cash on the balance sheet and net debt of $208.4 million. DXP's secured leverage ratio or net debt to EBITDA was 2.2:1.0. We have momentum going to fiscal 2019 and we expect to drive both organic and acquisition driven growth."