Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 02, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | DXP ENTERPRISES INC | |
Entity Central Index Key | 1,020,710 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,387,176 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash | $ 2,489 | $ 22,047 |
Restricted cash | 399 | 3,532 |
Trade accounts receivable, net of allowance for doubtful accounts of $11,037 in 2018 and $9,015 in 2017 | 185,261 | 167,272 |
Inventories | 110,767 | 91,413 |
Costs and estimated profits in excess of billings | 37,943 | 26,915 |
Prepaid expenses and other current assets | 4,750 | 5,296 |
Federal income taxes receivable | 986 | 1,440 |
Total current assets | 342,595 | 317,915 |
Property and equipment, net | 53,035 | 53,337 |
Goodwill | 194,033 | 187,591 |
Other intangible assets, net | 75,682 | 78,525 |
Other long-term assets | 1,587 | 1,715 |
Total assets | 666,932 | 639,083 |
Current liabilities: | ||
Current maturities of long-term debt | 3,394 | 3,381 |
Trade accounts payable | 95,013 | 80,303 |
Accrued wages and benefits | 18,106 | 18,483 |
Customer advances | 7,882 | 2,189 |
Billings in excess of costs and estimated profits | 3,075 | 4,249 |
Other current liabilities | 5,645 | 16,220 |
Total current liabilities | 133,115 | 124,825 |
Long-term debt, less current maturities and unamortized debt issuance costs | 237,875 | 238,643 |
Other long-term liabilities | 2,611 | 0 |
Deferred income taxes | 7,966 | 7,069 |
Total long-term liabilities | 248,452 | 245,712 |
Total liabilities | 381,567 | 370,537 |
Commitments and contingencies (Note 13) | ||
Equity: | ||
Common stock, $0.01 par value, 100,000,000 shares authorized; 17,567,912 at June 30, 2018 and 17,315,573 at December 31, 2017 shares issued | 174 | 174 |
Additional paid-in capital | 155,343 | 153,087 |
Retained earnings | 150,322 | 134,193 |
Accumulated other comprehensive loss | (21,001) | (19,491) |
Total DXP Enterprises, Inc. equity | 284,854 | 267,979 |
Noncontrolling interest | 511 | 567 |
Total equity | 285,365 | 268,546 |
Total liabilities and equity | 666,932 | 639,083 |
Series A Preferred Stock [Member] | ||
Equity: | ||
Preferred stock | 1 | 1 |
Series B Convertible Preferred Stock [Member] | ||
Equity: | ||
Preferred stock | $ 15 | $ 15 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Trade accounts receivable, allowance for doubtful accounts | $ 11,037 | $ 9,015 |
Equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock shares issued (in shares) | 17,567,912 | 17,315,573 |
Series A Preferred Stock [Member] | ||
Equity: | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 1,122 | 1,122 |
Preferred stock, outstanding (in shares) | 1,122 | 1,122 |
Series B Convertible Preferred Stock [Member] | ||
Equity: | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 15,000 | 15,000 |
Preferred stock, outstanding (in shares) | 15,000 | 15,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE OPERATIONS (unaudited) [Abstract] | ||||
Sales | $ 311,227 | $ 250,698 | $ 597,163 | $ 489,225 |
Cost of sales | 226,111 | 181,762 | 435,602 | 355,774 |
Gross profit | 85,116 | 68,936 | 161,561 | 133,451 |
Selling, general and administrative expenses | 65,056 | 58,679 | 130,352 | 114,958 |
Income from operations | 20,060 | 10,257 | 31,209 | 18,493 |
Other (income) expense, net | (1,416) | 57 | (1,438) | (171) |
Interest expense | 6,137 | 3,992 | 11,178 | 7,645 |
Income before income taxes | 15,339 | 6,208 | 21,469 | 11,019 |
Provision for income taxes | 3,776 | 2,239 | 5,412 | 4,056 |
Net income | 11,563 | 3,969 | 16,057 | 6,963 |
Net income (loss) attributable to noncontrolling interest | 1 | (166) | (56) | (305) |
Net income attributable to DXP Enterprises, Inc. | 11,562 | 4,135 | 16,113 | 7,268 |
Preferred stock dividend | 22 | 22 | 45 | 45 |
Net income attributable to common shareholders | 11,540 | 4,113 | 16,068 | 7,223 |
Net income | 11,563 | 3,969 | 16,057 | 6,963 |
Cumulative translation adjustment | (1,134) | 455 | (1,511) | (1,865) |
Comprehensive income | $ 10,429 | $ 4,424 | $ 14,546 | $ 5,098 |
Basic earnings per share (in dollars per share) | $ 0.66 | $ 0.24 | $ 0.92 | $ 0.42 |
Weighted average common shares outstanding (in shares) | 17,558 | 17,404 | 17,538 | 17,406 |
Diluted earnings per share (in dollars per share) | $ 0.63 | $ 0.23 | $ 0.88 | $ 0.40 |
Weighted average common and common equivalent shares outstanding - diluted (in shares) | 18,398 | 18,244 | 18,378 | 18,246 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income attributable to DXP Enterprises, Inc. | $ 16,113 | $ 7,268 |
Less net loss attributable to non-controlling interest | (56) | (305) |
Net income | 16,057 | 6,963 |
Reconciliation of net income to the net cash provided by (used in) operating activities: | ||
Gain on sale of building | (1,318) | 0 |
Depreciation | 4,727 | 5,155 |
Amortization of intangible assets | 8,477 | 8,607 |
Bad debt expense | 1,715 | 1,001 |
Amortization of debt issuance costs | 932 | 628 |
Write-off of debt issuance costs | 60 | 0 |
Compensation expense for restricted stock | 1,003 | 1,010 |
Stock compensation expense | 494 | 533 |
Deferred income taxes | 218 | 1,998 |
Changes in operating assets and liabilities, net of assets and liabilities acquired in business combinations: | ||
Trade accounts receivable | (14,469) | (11,768) |
Costs and estimated profits in excess of billings | (11,051) | (780) |
Inventories | (16,718) | (6,914) |
Prepaid expenses and other assets | 614 | (1,923) |
Trade accounts payable and accrued expenses | 815 | 3,979 |
Billings in excess of costs and estimated profits | (1,150) | (102) |
Other long-term liabilities | 2,611 | 0 |
Net cash provided by (used in) operating activities | (6,983) | 7,854 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (5,516) | (1,118) |
Proceeds from the sale of fixed assets | 2,700 | 0 |
Acquisitions of business, net of cash acquired | (10,792) | 0 |
Net cash used in investing activities | (13,608) | (1,118) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from debt | 0 | 394,966 |
Principal debt payments | (1,688) | (399,641) |
Debt issuance costs | (60) | (380) |
Loss for non-controlling interest owners, net of tax | 0 | (187) |
Dividends paid | (45) | (45) |
Payment for employee taxes withheld from stock awards | (136) | (596) |
Net cash used in financing activities | (1,929) | (5,883) |
EFFECT OF FOREIGN CURRENCY ON CASH | (171) | 36 |
NET CHANGE IN CASH | (22,691) | 889 |
CASH AT BEGINNING OF PERIOD | 25,579 | 1,590 |
CASH AT END OF PERIOD | $ 2,888 | $ 2,479 |
THE COMPANY
THE COMPANY | 6 Months Ended |
Jun. 30, 2018 | |
THE COMPANY [Abstract] | |
THE COMPANY | NOTE 1 - THE COMPANY DXP Enterprises, Inc. together with its subsidiaries (collectively "DXP," "Company," "us," "we," or "our") was incorporated in Texas on July 26, 1996. DXP Enterprises, Inc. and its subsidiaries are engaged in the business of distributing maintenance, repair and operating ("MRO") products, and service to energy and industrial customers. Additionally, DXP provides integrated, custom pump skid packages, pump remanufacturing and manufactures branded private label pumps to energy and industrial customers. The Company is organized into three business segments: Service Centers ("SC"), Supply Chain Services ("SCS") and Innovative Pumping Solutions ("IPS"). See Note 15 "Segment Reporting" |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES | 6 Months Ended |
Jun. 30, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES Basis of Presentation The Company's financial statements are prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP"). The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and its variable interest entity ("VIE"). The accompanying unaudited condensed consolidated financial statements have been prepared on substantially the same basis as our annual consolidated financial statements and should be read in conjunction with our annual report on Form 10-K for the year ended December 31, 2017. In the opinion of management, these condensed consolidated financial statements contain all adjustments necessary to present fairly the Company's condensed consolidated balance sheets as of December 31, 2017 and June 30, 2018, condensed consolidated statements of operations and comprehensive operations for the three and six months ended June 30, 2018 and June 30, 2017, and condensed consolidated statements of cash flows for the six months ended June 30, 2018 and June 30, 2017. All such adjustments represent normal recurring items. All intercompany accounts and transactions have been eliminated upon consolidation. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2018 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements Compensation - Stock Compensation. Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. Intangibles-Goodwill and Other. Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The Company adopted this ASU early on December 31, 2017. T he Company's annual tests of goodwill for impairment, including qualitative assessments of all of its reporting units' goodwill, determined a quantitative impairment test was not necessary. Therefore the adoption of this standard did not have a material effect on the Company's consolidated financial position, results of operations or cash flows. Business Combinations. Business Combinations (Topic 805): Clarifying the Definition of a Business. The Company adopted this ASU as of January 1, 2018, and it did not have a material impact on the Company's Consolidated Financial Statements. As discussed in Note 14 "Business Acquisitions ", the Company acquired Application Specialties, Inc. in January 2018. Application Specialties, Inc. met the definition of a business under the new guidance and goodwill was recorded. Statement of Cash Flows. Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments. The Company adopted this ASU as of January 1, 2018, and it did not have a material impact on the Company's Consolidated Financial Statements. Financial Instruments. Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities The Company adopted this ASU as of January 1, 2018, and it did not have a material impact on the Company's Financial Statements. Revenue Recognition. Revenue from Contracts with Customers (Topic 606), The Company has evaluated the provisions of the new standard and assessed its impact on financial statements, information systems, business processes and financial statement disclosures. We engaged a third party consultant to assist us in assessing our contracts with customers, processes and controls required to address the impact that ASU No. 2014-09 would have on our business. The Company elected the modified retrospective method and adopted the new revenue guidance effective January 1, 2018, with no impact to the opening retained earnings. The analysis of contracts with customers under the new revenue recognition standard was consistent with the Company's current revenue recognition model, whereby revenue is recognized primarily on the date products are shipped to the customer. The ASU also requires expanded qualitative and quantitative disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, significant judgments and accounting policy. The adoption of the new standard did not have a material impact on the Company's Consolidated Financial Statements. See Note 4 – Revenue Recognition. Accounting Pronouncements Not Yet Adopted Financial Instruments – Credit Losses. Financial Instruments – Credit Losses, . Leases. Leases (Topic 842). classification as a finance or operating lease. The criteria for determining whether a lease is a finance or operating lease has not been significantly changed by this ASU. The ASU also requires additional disclosure of the amount, timing, and uncertainty of cash flows arising from leases, including qualitative and quantitative requirements. This pronouncement is effective for financial statements issued for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jun. 30, 2018 | |
REVENUE RECOGNITION [Abstract] | |
REVENUE RECOGNITION | NOTE 4 – REVENUE RECOGNITION In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers On January 1, 2018, the Company adopted ASC Topic 606 using the modified retrospective method with no impact to the opening retained earnings and determined there were no changes required to its reported revenues as a result of the adoption. The Company has enhanced its disclosures of revenue to comply with the new guidance. Results for reporting periods beginning after January 1, 2018 are presented under ASC Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with ASC Topic 605, "Revenue Recognition." Overview The Company's primary source of revenue is the sale of products, and service to energy and industrial customers. The Company is organized into three business segments: Service Centers, Supply Chain Services and Innovative Pumping Solutions. The Service Centers segment provides a wide range of maintenance, repair and operating (MRO) products, equipment and integrated services, including logistics capabilities, to industrial customers. Revenue is recognized upon the completion of our performance obligation(s) under the sales agreement. The majority of the Service Centers segment revenue originates from the satisfaction of a single performance obligation, the delivery of products. Revenues are recognized when an agreement is in place, the performance obligations under the contract have been identified, and the price or consideration to be received is fixed and allocated to the performance obligation(s) in the contract. We believe our performance obligation has been satisfied when title passes to the customer or services have been rendered under the contract. Revenues are recorded net of sales taxes. The Company fabricates and assembles custom-made pump packages, remanufactures pumps and manufactures branded private label pumps within our Innovative Pumping Solutions segment. For binding agreements to fabricate tangible assets to customer specifications, the Company recognizes revenues over time when the customer is able to direct the use of and obtain substantially all of the benefits of the work performed. This typically occurs when the products have no alternative use for us and we have a right to payment for the work completed to date plus a reasonable profit margin. Contracts generally include cancellation provisions that require the customer to reimburse us for costs incurred through the date of cancellation. We recognize revenue for these contracts using the percentage of completion method, an "input method" as defined by the new standard. Under this method, revenues are recognized as costs are incurred and include estimated profits calculated on the basis of the relationship between costs incurred and total estimated costs at completion. If at any time expected costs exceed the value of the contract, the loss is recognized immediately. The typical time span of these contracts is approximately three to eighteen months. The Supply Chain Services segment provides a wide range of MRO products and manages all or part of a customer's supply chain, including warehouse and inventory management. Like the Service Centers segment above, revenue for the Supply Chain Services segment is recognized upon the completion of performance obligations. Revenues are recognized when an agreement or contract is in place and the price is fixed followed by execution of our performance obligations. We generally consider the satisfaction of our performance obligation has occurred when title for product passes to the customer or services have been rendered. Revenues are recorded net of sales taxes. See Note 15 "Segment Reporting" |
FAIR VALUE OF FINANCIAL ASSETS
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2018 | |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES [Abstract] | |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | NOTE 5 - FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES Authoritative guidance for financial assets and liabilities measured on a recurring basis applies to all financial assets and financial liabilities that are being measured and reported on a fair value basis. Fair value, as defined in the authoritative guidance, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative guidance affects the fair value measurement of an investment with quoted market prices in an active market for identical instruments, which must be classified in one of the following categories: Level 1 Inputs Level 1 inputs come from quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 Inputs Level 2 inputs are other than quoted prices that are observable for an asset or liability. These inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from, or corroborated by, observable market data by correlation or other means. Level 3 Inputs Level 3 inputs are unobservable inputs for the asset or liability which require the Company's own assumptions. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. Our acquisitions may include contingent consideration as part of the purchase price. The fair value of the contingent consideration is estimated as of the acquisition date based on the present value of the contingent payments to be made using a weighted probability of possible payments. The unobservable inputs used in the determination of the fair value of the contingent consideration include managements assumptions about the likelihood of payment based on the established benchmarks and discount rates based on an internal rate of return analysis. The fair value measurement includes inputs that are Level 3 measurement as discussed above, as they are not observable in the market. Should actual results increase or decrease as compared to the assumption used in our analysis, the fair value of the contingent consideration obligations will increase or decrease, up to the contracted limit, as applicable. Changes in the fair value of the contingent earn-out consideration are measured each reporting period and reflected in our results of operations. As of June 30, 2018, we recorded a $4 million liability for contingent consideration associated with the acquisition of ASI in other current and long-term liabilities. See further discussion at Note 14 "Business Acquisitions . For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the six months ended June 30, 2018: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent Liability for Accrued Consideration (in thousands) Beginning balance at January 1, 2018 $ - Acquisitions and settlements Acquisition of ASI (Note 14) 4,214 Settlements - Total remeasurement adjustments: (Gains) or losses recorded against goodwill (208 ) Ending balance at June 30, 2018* $ 4,006 The amount of total (gains) or losses for the year included in earnings or changes to net assets, attributable to changes in unrealized (gains) or losses relating to assets or liabilities still held at year-end. $ - * Included in other current and long-term liabilities Quantitative Information about Level 3 Fair Value Measurements The significant unobservable inputs used in the fair value measurement of the Company's contingent consideration liabilities designated as Level 3 are as follows: (in thousands, unaudited) Fair Value at June 30, 2018 Valuation Technique Significant Unobservable Inputs Contingent consideration: (ASI acquisition) $ 4,006 Discounted cash flow Annualized EBITDA and probability of achievement Sensitivity to Changes in Significant Unobservable Inputs As presented in the table above, the significant unobservable inputs used in the fair value measurement of contingent consideration related to the acquisition of ASI are annualized EBITDA forecasts developed by the Company's management and the probability of achievement of those EBITDA results. The discount rate used in the calculation was 7.6%. Significant increases (decreases) in these unobservable inputs in isolation would result in a significantly (lower) higher fair value measurement. Other financial instruments not measured at fair value on the Company's unaudited condensed consolidated balance sheet at June 30, 2018 but which require disclosure of their fair values include: cash and cash equivalents, trade accounts receivable, trade accounts payable and accrued expenses, accrued payroll and related benefits, and the revolving line of credit and term loan debt under our syndicated credit agreement facility. The Company believes that the estimated fair value of such instruments at June 30, 2018 and December 31, 2017 approximates their carrying value as reported on the unaudited Condensed Consolidated Balance Sheets. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2018 | |
INVENTORIES [Abstract] | |
INVENTORIES | NOTE 6 – INVENTORIES The carrying values of inventories are as follows ( in thousands June 30, 2018 December 31, 2017 Finished goods $ 98,960 $ 79,820 Work in process 11,807 11,593 Inventories $ 110,767 $ 91,413 |
COSTS AND ESTIMATED PROFITS ON
COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS | 6 Months Ended |
Jun. 30, 2018 | |
COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS [Abstract] | |
COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS | NOTE 7 – COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS Costs and estimated profits in excess of billings on uncompleted contracts arise in the consolidated balance sheets when revenues have been recognized but the amounts cannot be billed under the terms of the contracts. Such amounts are recoverable from customers upon various measures of performance, including achievement of certain milestones, completion of specified units, or completion of a contract. Costs and estimated profits on uncompleted contracts and related amounts billed were as follows ( in thousands June 30, 2018 December 31, 2017 Costs incurred on uncompleted contracts $ 53,626 $ 37,899 Estimated profits, thereon 6,504 2,665 Total 60,130 40,564 Less: billings to date 25,265 17,881 Net $ 34,865 $ 22,683 Such amounts were included in the accompanying Condensed Consolidated Balance Sheets for 2018 and 2017 under the following captions ( in thousands June 30, 2018 December 31, 2017 Costs and estimated profits in excess of billings $ 37,943 $ 26,915 Billings in excess of costs and estimated profits (3,075 ) (4,249 ) Translation adjustment (3 ) 17 Net $ 34,865 $ 22,683 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2018 | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 8 - GOODWILL AND OTHER INTANGIBLE ASSETS The following table presents the changes in the carrying amount of goodwill and other intangible assets during the six months ended June 30, 2018 ( in thousands Goodwill Other Intangible Assets Total Balance as of December 31, 2017 $ 187,591 $ 78,525 $ 266,116 Acquired during the period 6,442 6,185 12,627 Translation adjustment - (551 ) (551 ) Amortization - (8,477 ) (8,477 ) Balance as of June 30, 2018 $ 194,033 $ 75,682 $ 269,715 The following table presents the goodwill balance by reportable segment as of June 30, 2018 and December 31, 2017 (in thousands) June 30, 2018 December 31, 2017 Service Centers $ 160,914 $ 154,473 Innovative Pumping Solutions 15,980 15,980 Supply Chain Services 17,139 17,138 Total $ 194,033 $ 187,591 The following table presents a summary of amortizable other intangible assets ( in thousands June 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Carrying Amount, net Gross Carrying Amount Accumulated Amortization Carrying Amount, net Customer relationships $ 168,255 $ (92,767 ) 75,488 162,200 (83,806 ) 78,394 Non-compete agreements 784 (590 ) 194 949 (818 ) 131 Total $ 169,039 $ (93,357 ) $ 75,682 $ 163,149 $ (84,624 ) $ 78,525 Gross carrying amounts as well as accumulated amortization are partially affected by the fluctuation of foreign currency rates. Other intangible assets are amortized according to estimated economic benefits over their estimated useful lives. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2018 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 9 – INCOME TAXES The Tax Cuts and Jobs Act was enacted on December 22, 2017. The Tax Cuts and Jobs Act contains several tax law changes that will impact the Company in the current and future periods. The Company is applying the guidance in Staff Accounting Bulletin ("SAB") 118 issued by the Securities and Exchange Commission when accounting for the enactment-date effects of the Tax Cuts and Jobs Act. Specifically, SAB 118 permits companies to record a provisional amount which can be remeasured during the measurement period due to obtaining, preparing, or analyzing additional information about facts and circumstances that existed as of the enacted date. At June 30, 2018, the Company has not completed our accounting for all of the tax effects of the Tax Cuts and Jobs Act; however, in certain cases, as described below, the Company has made a reasonable estimate of other effects. The Company will continue to refine our calculations as additional analysis is completed. The Company originally remeasured our U.S. net deferred tax liabilities and recorded a provisional $1.3 million benefit and a corresponding provisional decrease in the U.S. net deferred tax liability relating to the reduction in the U.S. federal corporate income tax rate to 21% from 35%. We are still in the process of analyzing Tax Cuts and Jobs Act's impact as permitted under SAB 118. The largest impact to the Company being the remeasurement of deferred taxes due to the U.S. statutory tax rate change. The mandatory repatriation and resulting toll charge on accumulated foreign earnings and profits has limited impact on the Company as unremitted earnings from non-US jurisdictions is minimal. The Company is provisional in its approach and assertion that there is no financial statement impact related to mandatory repatriation as of June 30, 2018. We will continue to monitor tax reform, as we anticipate additional guidance from the Internal Revenue Service will become more available throughout 2018. Our effective tax rate from continuing operations was a tax expense of 25.21% for the six months ended June 30, 2018 compared to a tax expense of 36.81% for the six months ended June 30, 2017. Compared to the U.S. statutory rate for the six months ended June 30, 2018, the effective tax rate was increased by state taxes, foreign taxes, and nondeductible expenses and partially offset by research and development tax credits. Compared to the U.S. statutory rate for the six months ended June 30, 2017, the effective tax rate was increased by state taxes and nondeductible expenses and partially offset by lower income tax rates on income earned in foreign jurisdictions, domestic production activities deduction, and research and development credits. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2018 | |
LONG-TERM DEBT [Abstract] | |
LONG-TERM DEBT | NOTE 10 – LONG-TERM DEBT The components of the Company's long-term debt consisted of the following ( in thousands June 30, 2018 December 31, 2017 Carrying Value* Fair Value Carrying Value* Fair Value ABL Revolver $ - $ - $ - $ - Term Loan B 248,125 249,519 249,375 251,869 Promissory note due January 2021 2,284 2,284 2,722 2,722 Total long-term debt 250,409 251,803 252,097 254,591 Less: current portion (3,394 ) (3,408 ) (3,381 ) (3,406 ) Long-term debt less current maturities $ 247,015 $ 248,395 $ 248,716 $ 251,185 *Carrying value amounts do not include unamortized debt issuance costs of $9.1M and $10.1 for June 30, 2018 and December 31, 2017, respectively . The fair value measurements used by the Company are considered Level 2 inputs, as defined in the fair value hierarchy. The fair value estimates were based on quoted prices for identical or similar securities. August 2017 Credit Agreements On August 29, 2017, the Company entered into two credit agreements (the "August 2017 Credit Agreements") that provided for an $85.0 million asset-backed revolving line of credit (the "ABL Revolver") and a $250.0 million senior secured term loan B (the "Term Loan B"). Under the ABL Revolver, the Company may request $10.0 million incremental revolving loan commitments in an additional aggregate amount not to exceed $50.0 million, subject to pro forma compliance with certain net secured leverage ratio tests. The applicable rate for the ABL Revolver is LIBOR plus a margin ranging from 1.25% to 1.75% per annum. The applicable rate for the Term Loan B was LIBOR plus 5.50% subject to a LIBOR floor of 1.00%. The maturity date of the ABL Revolver is August 29, 2022 and the maturity date of the Term Loan B is August 29, 2023. On June 25, 2018, the Company entered into Amendment No. 1 (the "Repricing Amendment") to the Senior Secured Term Loan B Agreement. The Repricing Amendment, among other things, reduced the applicable rate for the term loans to LIBOR plus 4.75% (subject to a LIBOR floor of 1.00%) from LIBOR plus 5.50%. The Repricing Amendment also includes a "soft call" prepayment penalty of 1.0% for a period of six months commencing with the date of the Repricing Amendment for certain prepayments, refinancing, and amendments. The Company accounted for the Repricing Amendment as a modification of debt. Approximately, $60,000 of prior deferred debt issuance cost were accelerated and recorded as additional interest expense in the condensed consolidated statements of operations and comprehensive operations, attributable to prior syndicate lenders who reduced or eliminated their positions during the amendment process. The Company also incurred $0.9 million of third party fees in connection with the Repricing Amendment, which was also recorded as additional interest expense in the condensed consolidated statements of operations and comprehensive operations. As of June 30, 2018, the Company had no amount outstanding under the ABL Revolver and had $80.0 million of borrowing capacity, including the impact of letters of credit. Interest on Borrowings The interest rates on our borrowings outstanding at June 30, 2018 and December 31, 2017, including the amortization of debt issuance costs, were as follows: June 30, 2018 December 31, 2017 ABL Revolver 3.8 % 2.9 % Term Loan B 6.8 % 7.1 % Promissory Note 2.9 % 2.9 % Weighted average interest rate 6.8 % 7.0 % The Company was in compliance with all financial covenants under the August 2017 Credit Agreement as of June 30, 2018. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2018 | |
STOCK-BASED COMPENSATION [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 11 - STOCK-BASED COMPENSATION Restricted Stock Under the equity incentive plans approved by our shareholders, directors, consultants and employees may be awarded shares of DXP's common stock. The shares of restricted stock and restricted stock units granted to employees and that are outstanding as of June 30, 2018 vest (or have forfeiture restrictions that lapse) in accordance with one of the following vesting schedules: 100% one year after date of grant; 33.3% each year for three years after date of grant; 20% each year for five years after date of grant; or 10% each year for ten years after date of grant. The shares of restricted stock granted to non-employee directors of DXP vest one year after the grant date. The fair value of restricted stock awards is measured based upon the closing prices of DXP's common stock on the grant dates and is recognized as compensation expense over the vesting period of the awards. Shares of our common stock are issued and outstanding upon the grant of awards of restricted stock. Once restricted stock units vest, new shares of the Company's stock are issued. At June 30, 2018, 279,149 shares were available for future grant. Changes in restricted stock for the six months ended June 30, 2018 were as follows: Number of Shares Weighted Average Grant Price Non-vested at December 31, 2017 77,901 $ 30.36 Granted 124,474 $ 31.54 Forfeited (2,400 ) $ 46.68 Vested (12,699 ) $ 49.67 Non-vested at June 30, 2018 187,276 $ 29.63 Compensation expense, associated with restricted stock, recognized in the six months ended June 30, 2018 and 2017 was $1.0 million, respectively. Related income tax benefits recognized in earnings for the six months ended June 30, 2018 and 2017 were approximately $0.4 |
EARNINGS PER SHARE DATA
EARNINGS PER SHARE DATA | 6 Months Ended |
Jun. 30, 2018 | |
EARNINGS PER SHARE DATA [Abstract] | |
EARNINGS PER SHARE DATA | NOTE 12 - EARNINGS PER SHARE DATA Basic earnings per share is computed based on weighted average shares outstanding and excludes dilutive securities. Diluted earnings per share is computed including the impacts of all potentially dilutive securities. The following table sets forth the computation of basic and diluted earnings per share for the periods indicated ( in thousands, except per share data Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Basic: Weighted average shares outstanding 17,558 17,404 17,538 17,406 Net income attributable to DXP Enterprises, Inc. $ 11,562 $ 4,135 $ 16,113 $ 7,268 Convertible preferred stock dividend 22 22 45 45 Net income attributable to common shareholders $ 11,540 $ 4,113 $ 16,068 $ 7,223 Per share amount $ 0.66 $ 0.24 $ 0.92 $ 0.42 Diluted: Weighted average shares outstanding 17,558 17,404 17,538 17,406 Assumed conversion of convertible preferred stock 840 840 840 840 Total dilutive shares 18,398 18,244 18,378 18,246 Net income attributable to common shareholders $ 11,540 $ 4,113 $ 16,068 $ 7,223 Convertible preferred stock dividend 22 22 45 45 Net income attributable to DXP Enterprises, Inc. for diluted earnings per share $ 11,562 $ 4,135 $ 16,113 $ 7,268 Per share amount $ 0.63 $ 0.23 $ 0.88 $ 0.40 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2018 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13 - COMMITMENTS AND CONTINGENCIES From time to time, the Company is a party to various legal proceedings arising in the ordinary course of business. While DXP is unable to predict the outcome of these lawsuits, it believes that the ultimate resolution will not have, either individually or in the aggregate, a material adverse effect on DXP's consolidated financial position, cash flows, or results of operations. |
BUSINESS ACQUISITIONS
BUSINESS ACQUISITIONS | 6 Months Ended |
Jun. 30, 2018 | |
BUSINESS ACQUISITIONS [Abstract] | |
BUSINESS ACQUISITIONS | NOTE 14 – BUSINESS ACQUISITIONS On January 1, 2018, the Company completed the acquisition of Application Specialties, Inc. ("ASI"), a distributor of cutting tools, abrasives, coolants and machine shop supplies. The Company paid approximately $11.7 million in cash and stock. The purchase price also includes approximately $4.0 million in contingent consideration. The purchase was financed with $10.8 million of cash on hand as well as issuing $0.9 million of the Company's common stock. ASI will provide the Company's metal working division with new geographic territory and enhance DXP's end market mix. For the six months ended June 30, 2018, ASI contributed sales of $23.0 million and earnings before taxes of approximately $2.6 million. As part of our purchase agreement, we may pay up to an additional $4.6 million of contingent consideration over the next three years based on the achievement of certain earnings benchmarks established for calendar years 2018, 2019 and 2020. The purchase price includes the estimated fair value of the contingent consideration recorded at the present value of $4.0 million. The estimated fair value of the contingent consideration was determined using a probability-weighted discounted cash flow model. We determined the fair value of the contingent consideration obligations by calculating the probability-weighted payments based on our assessment of the likelihood that the benchmarks will be achieved. The probability-weighted payments were then discounted using a discount rate based on an internal rate of return analysis using the probability-weighted cash flows. The fair value measurement includes earnings forecasts which are a Level 3 measurement as discussed in Note 5. The fair value of the contingent consideration is reviewed quarterly over the earn-out period to compare actual earnings before interest, taxes, depreciation and amortization ("EBITDA") achieved to the estimated EBITDA used in our forecasts. As of June 30, 2018 approximately $1.4 million of the actual cash due toward the contingent consideration earned is recorded in current liabilities. We may pay up to an additional $3.2 million over the remaining earn-out period based on the achievement of certain EBITDA benchmarks. The estimated fair value of the contingent consideration is recorded at the present value of $4.0 million at June 30, 2018. Changes in the estimated fair value of the contingent earn-out consideration, up to the total contractual amount, are reflected in our results of operations in the periods in which they are identified. Changes in the fair value of the contingent consideration may materially impact and cause volatility in our future operating results. Changes in our estimates for the contingent consideration are discussed in Note 5 to our condensed consolidated financial statements. The total acquisition consideration is equal to the sum of all cash payments, the fair value of stock issued, and the present value of any contingent consideration. The following table summarizes the total acquisition consideration for the ASI Purchase: Purchase Price Consideration Total Consideration (Dollars in thousands) Cash payments $ 10,792 Fair value of stock issued 894 Present value of estimated fair value of contingent earn-out consideration 4,006 Total purchase price consideration $ 15,692 |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2018 | |
SEGMENT REPORTING [Abstract] | |
SEGMENT REPORTING | NOTE 15 - SEGMENT REPORTING The Company's reportable business segments are: Service Centers, Innovative Pumping Solutions and Supply Chain Services. The Service Centers segment is engaged in providing maintenance, MRO products, equipment and integrated services, including logistics capabilities, to industrial customers. The Service Centers segment provides a wide range of MRO products in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, fastener, industrial supply, safety products and safety services categories. The Innovative Pumping Solutions segment fabricates and assembles custom-made pump packages, remanufactures pumps and manufactures branded private label pumps. The Supply Chain Services segment provides a wide range of MRO products and manages all or part of a customer's supply chain, including warehouse and inventory management. The high degree of integration of the Company's operations necessitates the use of a substantial number of allocations and apportionments in the determination of business segment information. Sales are shown net of intersegment eliminations. The following table sets out financial information related to the Company's segments ( in thousands Three Months Ended June 30, 2018 2017 SC IPS SCS Total SC IPS SCS Total Sales $ 193,576 $ 74,257 $ 43,394 $ 311,227 $ 164,749 $ 44,470 $ 41,479 $ 250,698 Amortization 2,310 1,538 271 4,119 2,227 1,793 271 4,291 Income (loss) from operations 19,623 7,418 3,984 31,025 16,190 (38 ) 3,447 19,599 Income from operations, excluding amortization $ 21,933 $ 8,956 $ 4,255 $ 35,144 $ 18,417 $ 1,755 $ 3,718 $ 23,890 Six Months Ended June 30, 2018 2017 SC IPS SCS Total SC IPS SCS Total Sales $ 368,937 $ 141,899 $ 86,327 $ 597,163 $ 313,461 $ 93,528 $ 82,236 $ 489,225 Amortization 4,770 3,165 542 8,477 4,477 3,588 542 8,607 Income from operations 32,992 12,173 7,767 52,932 27,281 1,676 7,234 36,191 Income from operations, excluding amortization $ 37,762 $ 15,338 $ 8,309 $ 61,409 $ 31,758 $ 5,264 $ 7,776 $ 44,798 The following table presents reconciliations of operating income for reportable segments to the consolidated income before taxes ( in thousands Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Operating income for reportable segments $ 35,144 $ 23,890 $ 61,409 $ 44,798 Adjustment for: Amortization of intangible assets 4,119 4,291 8,477 8,607 Corporate expenses 10,965 9,342 21,723 17,698 Income from operations 20,060 10,257 31,209 18,493 Interest expense 6,137 3,992 11,178 7,645 Other (income) expense, net (1,416 ) 57 (1,438 ) (171 ) Income before income taxes $ 15,339 $ 6,208 $ 21,469 $ 11,019 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2018 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 16 - SUBSEQUENT EVENTS We have evaluated subsequent events through the date the interim Condensed Consolidated Financial Statements were issued. There were no subsequent events that required recognition or disclosure unless elsewhere identified in this report. |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING AND BUSINESS POLICIES [Abstract] | |
Basis of Presentation | Basis of Presentation The Company's financial statements are prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP"). The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and its variable interest entity ("VIE"). The accompanying unaudited condensed consolidated financial statements have been prepared on substantially the same basis as our annual consolidated financial statements and should be read in conjunction with our annual report on Form 10-K for the year ended December 31, 2017. In the opinion of management, these condensed consolidated financial statements contain all adjustments necessary to present fairly the Company's condensed consolidated balance sheets as of December 31, 2017 and June 30, 2018, condensed consolidated statements of operations and comprehensive operations for the three and six months ended June 30, 2018 and June 30, 2017, and condensed consolidated statements of cash flows for the six months ended June 30, 2018 and June 30, 2017. All such adjustments represent normal recurring items. All intercompany accounts and transactions have been eliminated upon consolidation. |
RECENT ACCOUNTING PRONOUNCEME23
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Compensation - Stock Compensation. Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. Intangibles-Goodwill and Other. Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The Company adopted this ASU early on December 31, 2017. T he Company's annual tests of goodwill for impairment, including qualitative assessments of all of its reporting units' goodwill, determined a quantitative impairment test was not necessary. Therefore the adoption of this standard did not have a material effect on the Company's consolidated financial position, results of operations or cash flows. Business Combinations. Business Combinations (Topic 805): Clarifying the Definition of a Business. The Company adopted this ASU as of January 1, 2018, and it did not have a material impact on the Company's Consolidated Financial Statements. As discussed in Note 14 "Business Acquisitions ", the Company acquired Application Specialties, Inc. in January 2018. Application Specialties, Inc. met the definition of a business under the new guidance and goodwill was recorded. Statement of Cash Flows. Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments. The Company adopted this ASU as of January 1, 2018, and it did not have a material impact on the Company's Consolidated Financial Statements. Financial Instruments. Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities The Company adopted this ASU as of January 1, 2018, and it did not have a material impact on the Company's Financial Statements. Revenue Recognition. Revenue from Contracts with Customers (Topic 606), The Company has evaluated the provisions of the new standard and assessed its impact on financial statements, information systems, business processes and financial statement disclosures. We engaged a third party consultant to assist us in assessing our contracts with customers, processes and controls required to address the impact that ASU No. 2014-09 would have on our business. The Company elected the modified retrospective method and adopted the new revenue guidance effective January 1, 2018, with no impact to the opening retained earnings. The analysis of contracts with customers under the new revenue recognition standard was consistent with the Company's current revenue recognition model, whereby revenue is recognized primarily on the date products are shipped to the customer. The ASU also requires expanded qualitative and quantitative disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, significant judgments and accounting policy. The adoption of the new standard did not have a material impact on the Company's Consolidated Financial Statements. See Note 4 – Revenue Recognition. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted Financial Instruments – Credit Losses. Financial Instruments – Credit Losses, . Leases. Leases (Topic 842). classification as a finance or operating lease. The criteria for determining whether a lease is a finance or operating lease has not been significantly changed by this ASU. The ASU also requires additional disclosure of the amount, timing, and uncertainty of cash flows arising from leases, including qualitative and quantitative requirements. This pronouncement is effective for financial statements issued for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. |
FAIR VALUE OF FINANCIAL ASSET24
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES [Abstract] | |
Reconciliation of the Beginning and Ending Balance and Gains or Losses Recognized | For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the six months ended June 30, 2018: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent Liability for Accrued Consideration (in thousands) Beginning balance at January 1, 2018 $ - Acquisitions and settlements Acquisition of ASI (Note 14) 4,214 Settlements - Total remeasurement adjustments: (Gains) or losses recorded against goodwill (208 ) Ending balance at June 30, 2018* $ 4,006 The amount of total (gains) or losses for the year included in earnings or changes to net assets, attributable to changes in unrealized (gains) or losses relating to assets or liabilities still held at year-end. $ - * Included in other current and long-term liabilities |
Quantitative Information About Level 3 Fair Value Measurements | The significant unobservable inputs used in the fair value measurement of the Company's contingent consideration liabilities designated as Level 3 are as follows: (in thousands, unaudited) Fair Value at June 30, 2018 Valuation Technique Significant Unobservable Inputs Contingent consideration: (ASI acquisition) $ 4,006 Discounted cash flow Annualized EBITDA and probability of achievement |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
INVENTORIES [Abstract] | |
Carrying Values of Inventories | The carrying values of inventories are as follows ( in thousands June 30, 2018 December 31, 2017 Finished goods $ 98,960 $ 79,820 Work in process 11,807 11,593 Inventories $ 110,767 $ 91,413 |
COSTS AND ESTIMATED PROFITS O26
COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS [Abstract] | |
Costs and Estimated Profits on Uncompleted Contracts | Costs and estimated profits on uncompleted contracts and related amounts billed were as follows ( in thousands June 30, 2018 December 31, 2017 Costs incurred on uncompleted contracts $ 53,626 $ 37,899 Estimated profits, thereon 6,504 2,665 Total 60,130 40,564 Less: billings to date 25,265 17,881 Net $ 34,865 $ 22,683 |
Costs and Estimated Earnings on Uncompleted Contracts Included in Condensed Consolidated Balance Sheets | Such amounts were included in the accompanying Condensed Consolidated Balance Sheets for 2018 and 2017 under the following captions ( in thousands June 30, 2018 December 31, 2017 Costs and estimated profits in excess of billings $ 37,943 $ 26,915 Billings in excess of costs and estimated profits (3,075 ) (4,249 ) Translation adjustment (3 ) 17 Net $ 34,865 $ 22,683 |
GOODWILL AND OTHER INTANGIBLE27
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |
Goodwill and Other Intangible Assets | The following table presents the changes in the carrying amount of goodwill and other intangible assets during the six months ended June 30, 2018 ( in thousands Goodwill Other Intangible Assets Total Balance as of December 31, 2017 $ 187,591 $ 78,525 $ 266,116 Acquired during the period 6,442 6,185 12,627 Translation adjustment - (551 ) (551 ) Amortization - (8,477 ) (8,477 ) Balance as of June 30, 2018 $ 194,033 $ 75,682 $ 269,715 |
Goodwill Balance by Reportable Segment | The following table presents the goodwill balance by reportable segment as of June 30, 2018 and December 31, 2017 (in thousands) June 30, 2018 December 31, 2017 Service Centers $ 160,914 $ 154,473 Innovative Pumping Solutions 15,980 15,980 Supply Chain Services 17,139 17,138 Total $ 194,033 $ 187,591 |
Amortizable Other Intangible Assets | The following table presents a summary of amortizable other intangible assets ( in thousands June 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Carrying Amount, net Gross Carrying Amount Accumulated Amortization Carrying Amount, net Customer relationships $ 168,255 $ (92,767 ) 75,488 162,200 (83,806 ) 78,394 Non-compete agreements 784 (590 ) 194 949 (818 ) 131 Total $ 169,039 $ (93,357 ) $ 75,682 $ 163,149 $ (84,624 ) $ 78,525 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
LONG-TERM DEBT [Abstract] | |
Long-term Debt | The components of the Company's long-term debt consisted of the following ( in thousands June 30, 2018 December 31, 2017 Carrying Value* Fair Value Carrying Value* Fair Value ABL Revolver $ - $ - $ - $ - Term Loan B 248,125 249,519 249,375 251,869 Promissory note due January 2021 2,284 2,284 2,722 2,722 Total long-term debt 250,409 251,803 252,097 254,591 Less: current portion (3,394 ) (3,408 ) (3,381 ) (3,406 ) Long-term debt less current maturities $ 247,015 $ 248,395 $ 248,716 $ 251,185 *Carrying value amounts do not include unamortized debt issuance costs of $9.1M and $10.1 for June 30, 2018 and December 31, 2017, respectively . |
Interest Rate on Borrowings Outstanding | The interest rates on our borrowings outstanding at June 30, 2018 and December 31, 2017, including the amortization of debt issuance costs, were as follows: June 30, 2018 December 31, 2017 ABL Revolver 3.8 % 2.9 % Term Loan B 6.8 % 7.1 % Promissory Note 2.9 % 2.9 % Weighted average interest rate 6.8 % 7.0 % |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
STOCK-BASED COMPENSATION [Abstract] | |
Changes in Restricted Stock | Changes in restricted stock for the six months ended June 30, 2018 were as follows: Number of Shares Weighted Average Grant Price Non-vested at December 31, 2017 77,901 $ 30.36 Granted 124,474 $ 31.54 Forfeited (2,400 ) $ 46.68 Vested (12,699 ) $ 49.67 Non-vested at June 30, 2018 187,276 $ 29.63 |
EARNINGS PER SHARE DATA (Tables
EARNINGS PER SHARE DATA (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
EARNINGS PER SHARE DATA [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share for the periods indicated ( in thousands, except per share data Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Basic: Weighted average shares outstanding 17,558 17,404 17,538 17,406 Net income attributable to DXP Enterprises, Inc. $ 11,562 $ 4,135 $ 16,113 $ 7,268 Convertible preferred stock dividend 22 22 45 45 Net income attributable to common shareholders $ 11,540 $ 4,113 $ 16,068 $ 7,223 Per share amount $ 0.66 $ 0.24 $ 0.92 $ 0.42 Diluted: Weighted average shares outstanding 17,558 17,404 17,538 17,406 Assumed conversion of convertible preferred stock 840 840 840 840 Total dilutive shares 18,398 18,244 18,378 18,246 Net income attributable to common shareholders $ 11,540 $ 4,113 $ 16,068 $ 7,223 Convertible preferred stock dividend 22 22 45 45 Net income attributable to DXP Enterprises, Inc. for diluted earnings per share $ 11,562 $ 4,135 $ 16,113 $ 7,268 Per share amount $ 0.63 $ 0.23 $ 0.88 $ 0.40 |
BUSINESS ACQUISITIONS (Tables)
BUSINESS ACQUISITIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
BUSINESS ACQUISITIONS [Abstract] | |
Purchase Price Consideration | The following table summarizes the total acquisition consideration for the ASI Purchase: Purchase Price Consideration Total Consideration (Dollars in thousands) Cash payments $ 10,792 Fair value of stock issued 894 Present value of estimated fair value of contingent earn-out consideration 4,006 Total purchase price consideration $ 15,692 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
SEGMENT REPORTING [Abstract] | |
Segment Reporting Financial Information | The following table sets out financial information related to the Company's segments ( in thousands Three Months Ended June 30, 2018 2017 SC IPS SCS Total SC IPS SCS Total Sales $ 193,576 $ 74,257 $ 43,394 $ 311,227 $ 164,749 $ 44,470 $ 41,479 $ 250,698 Amortization 2,310 1,538 271 4,119 2,227 1,793 271 4,291 Income (loss) from operations 19,623 7,418 3,984 31,025 16,190 (38 ) 3,447 19,599 Income from operations, excluding amortization $ 21,933 $ 8,956 $ 4,255 $ 35,144 $ 18,417 $ 1,755 $ 3,718 $ 23,890 Six Months Ended June 30, 2018 2017 SC IPS SCS Total SC IPS SCS Total Sales $ 368,937 $ 141,899 $ 86,327 $ 597,163 $ 313,461 $ 93,528 $ 82,236 $ 489,225 Amortization 4,770 3,165 542 8,477 4,477 3,588 542 8,607 Income from operations 32,992 12,173 7,767 52,932 27,281 1,676 7,234 36,191 Income from operations, excluding amortization $ 37,762 $ 15,338 $ 8,309 $ 61,409 $ 31,758 $ 5,264 $ 7,776 $ 44,798 |
Reconciliation of Operating Income for Reportable Segments to Consolidated Income before Taxes | The following table presents reconciliations of operating income for reportable segments to the consolidated income before taxes ( in thousands Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Operating income for reportable segments $ 35,144 $ 23,890 $ 61,409 $ 44,798 Adjustment for: Amortization of intangible assets 4,119 4,291 8,477 8,607 Corporate expenses 10,965 9,342 21,723 17,698 Income from operations 20,060 10,257 31,209 18,493 Interest expense 6,137 3,992 11,178 7,645 Other (income) expense, net (1,416 ) 57 (1,438 ) (171 ) Income before income taxes $ 15,339 $ 6,208 $ 21,469 $ 11,019 |
THE COMPANY (Details)
THE COMPANY (Details) | 6 Months Ended |
Jun. 30, 2018Segment | |
THE COMPANY [Abstract] | |
Number of segments | 3 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) | 6 Months Ended |
Jun. 30, 2018Segment | |
REVENUE RECOGNITION [Abstract] | |
Number of segments | 3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | Minimum [Member] | |
Revenue, performance obligation [Abstract] | |
Revenue performance obligation expected satisfaction period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | Maximum [Member] | |
Revenue, performance obligation [Abstract] | |
Revenue performance obligation expected satisfaction period | 18 months |
FAIR VALUE OF FINANCIAL ASSET35
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES, Reconciliation of Beginning and Ending Balances (Details) - Recurring [Member] - Level 3 [Member] $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($) | ||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Roll Forward] | ||
Beginning balance | $ 0 | |
Acquisitions and settlements [Abstract] | ||
Acquisition of ASI (Note 14) | 4,214 | |
Settlements | 0 | |
Total remeasurement adjustments [Abstract] | ||
(Gains) or losses recorded against goodwill | (208) | |
Ending balance | 4,006 | [1] |
The amount of total (gains) or losses for the year included in earnings or changes to net assets, attributable to changes in unrealized (gains) or losses relating to assets or liabilities still held at year-end. | $ 0 | |
[1] | Included in other current and long-term liabilities |
FAIR VALUE OF FINANCIAL ASSET36
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES, Quantitative Information (Details) - Level 3 [Member] $ in Thousands | Jun. 30, 2018USD ($) |
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | |
Contingent consideration: (ASI acquisition) | $ 4,006 |
Discounted Cash Flow [Member] | |
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | |
Discount rate | 0.076 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
INVENTORIES [Abstract] | ||
Finished goods | $ 98,960 | $ 79,820 |
Work in process | 11,807 | 11,593 |
Inventories | $ 110,767 | $ 91,413 |
COSTS AND ESTIMATED PROFITS O38
COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of costs and estimated earnings on uncompleted contracts [Abstract] | ||
Costs incurred on uncompleted contracts | $ 53,626 | $ 37,899 |
Estimated profits, thereon | 6,504 | 2,665 |
Total | 60,130 | 40,564 |
Less: billings to date | 25,265 | 17,881 |
Net | 34,865 | 22,683 |
Schedule of Costs and Estimated Earnings on Uncompleted Contracts Included in Condensed Consolidated Balance Sheets [Abstract] | ||
Costs and estimated profits in excess of billings | 37,943 | 26,915 |
Billings in excess of costs and estimated profits | (3,075) | (4,249) |
Translation adjustment | (3) | 17 |
Net | $ 34,865 | $ 22,683 |
GOODWILL AND OTHER INTANGIBLE39
GOODWILL AND OTHER INTANGIBLE ASSETS, Changes (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill [Abstract] | ||
Balance at beginning of period | $ 187,591 | |
Acquired during the period | 6,442 | |
Translation adjustment | 0 | |
Balance at end of period | 194,033 | |
Other Intangibles Assets [Roll Forward] | ||
Balance at beginning of period | 78,525 | |
Acquired during the period | 6,185 | |
Translation adjustment | (551) | |
Amortization | (8,477) | $ (8,607) |
Balance at end of period | 75,682 | |
Total Goodwill and Intangible Assets [Roll Forward] | ||
Balance at beginning of period | 266,116 | |
Acquired during the period | 12,627 | |
Translation adjustment | (551) | |
Amortization | (8,477) | $ (8,607) |
Balance at end of period | $ 269,715 |
GOODWILL AND OTHER INTANGIBLE40
GOODWILL AND OTHER INTANGIBLE ASSETS, Goodwill Balance by Reportable Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Goodwill [Abstract] | ||
Goodwill | $ 194,033 | $ 187,591 |
Service Centers [Member] | ||
Goodwill [Abstract] | ||
Goodwill | 160,914 | 154,473 |
Innovative Pumping Solutions [Member] | ||
Goodwill [Abstract] | ||
Goodwill | 15,980 | 15,980 |
Supply Chain Services [Member] | ||
Goodwill [Abstract] | ||
Goodwill | $ 17,139 | $ 17,138 |
GOODWILL AND OTHER INTANGIBLE41
GOODWILL AND OTHER INTANGIBLE ASSETS, Amortizable Other Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Finite-lived intangible assets, net [Abstract] | ||
Gross carrying amount | $ 169,039 | $ 163,149 |
Accumulated amortization | (93,357) | (84,624) |
Carrying amount, net | 75,682 | 78,525 |
Customer Relationships [Member] | ||
Finite-lived intangible assets, net [Abstract] | ||
Gross carrying amount | 168,255 | 162,200 |
Accumulated amortization | (92,767) | (83,806) |
Carrying amount, net | 75,488 | 78,394 |
Non-Compete Agreements [Member] | ||
Finite-lived intangible assets, net [Abstract] | ||
Gross carrying amount | 784 | 949 |
Accumulated amortization | (590) | (818) |
Carrying amount, net | $ 194 | $ 131 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
INCOME TAXES [Abstract] | |||
Provisional income tax (benefit) | $ (1.3) | ||
Federal statutory income tax rate | 21.00% | 35.00% | |
Effective income tax rate from continuing operations | 25.21% | 36.81% |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) $ in Thousands | Aug. 29, 2017 | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)Agreement | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Borrowings [Abstract] | |||||||
Less: current portion | $ (3,394) | $ (3,394) | $ (3,381) | ||||
Long-term debt, less current maturities | 237,875 | 237,875 | 238,643 | ||||
Unamortized debt issuance costs | 9,100 | $ 9,100 | $ 10,100 | ||||
Number of credit agreement | Agreement | 2 | ||||||
Write-off of debt issuance costs | $ 60 | $ 0 | |||||
Interest expense | $ 6,137 | $ 3,992 | $ 11,178 | $ 7,645 | |||
Interest Rate on Borrowings Outstanding [Abstract] | |||||||
Weighted average interest rate | 6.80% | 6.80% | 7.00% | ||||
ABL Revolver [Member] | |||||||
Borrowings [Abstract] | |||||||
Debt instrument face amount | $ 85,000 | $ 85,000 | |||||
Maturity date | Aug. 29, 2022 | ||||||
Borrowing capacity available | $ 80,000 | $ 80,000 | |||||
Interest Rate on Borrowings Outstanding [Abstract] | |||||||
Interest rate | 3.80% | 3.80% | 2.90% | ||||
ABL Revolver [Member] | Minimum [Member] | |||||||
Borrowings [Abstract] | |||||||
Incremental increase in term loan | $ 10,000 | ||||||
ABL Revolver [Member] | Maximum [Member] | |||||||
Borrowings [Abstract] | |||||||
Incremental increase in term loan | $ 50,000 | ||||||
ABL Revolver [Member] | LIBOR [Member] | Minimum [Member] | |||||||
Borrowings [Abstract] | |||||||
Basis spread on base rate | 1.25% | ||||||
ABL Revolver [Member] | LIBOR [Member] | Maximum [Member] | |||||||
Borrowings [Abstract] | |||||||
Basis spread on base rate | 1.75% | ||||||
Term Loan B [Member] | |||||||
Borrowings [Abstract] | |||||||
Debt instrument face amount | $ 250,000 | $ 250,000 | |||||
Maturity date | Aug. 29, 2023 | ||||||
Prepayment penalty on soft call | 1.00% | ||||||
Write-off of debt issuance costs | $ 60 | ||||||
Interest expense | $ 900 | ||||||
Interest Rate on Borrowings Outstanding [Abstract] | |||||||
Interest rate | 6.80% | 6.80% | 7.10% | ||||
Term Loan B [Member] | LIBOR [Member] | |||||||
Borrowings [Abstract] | |||||||
Basis spread on base rate | 5.50% | 4.75% | |||||
Term Loan B [Member] | LIBOR [Member] | Minimum [Member] | |||||||
Borrowings [Abstract] | |||||||
Basis spread on base rate | 1.00% | 1.00% | |||||
Promissory Note [Member] | |||||||
Borrowings [Abstract] | |||||||
Maturity date | Jan. 31, 2021 | ||||||
Interest Rate on Borrowings Outstanding [Abstract] | |||||||
Interest rate | 2.90% | 2.90% | 2.90% | ||||
Carrying Value [Member] | |||||||
Borrowings [Abstract] | |||||||
Total long-term debt | [1] | $ 250,409 | $ 250,409 | $ 252,097 | |||
Less: current portion | [1] | (3,394) | (3,394) | (3,381) | |||
Long-term debt, less current maturities | [1] | 247,015 | 247,015 | 248,716 | |||
Carrying Value [Member] | ABL Revolver [Member] | |||||||
Borrowings [Abstract] | |||||||
Total long-term debt | [1] | 0 | 0 | 0 | |||
Carrying Value [Member] | Term Loan B [Member] | |||||||
Borrowings [Abstract] | |||||||
Total long-term debt | [1] | 248,125 | 248,125 | 249,375 | |||
Carrying Value [Member] | Promissory Note [Member] | |||||||
Borrowings [Abstract] | |||||||
Total long-term debt | [1] | 2,284 | 2,284 | 2,722 | |||
Fair Value [Member] | |||||||
Borrowings [Abstract] | |||||||
Total long-term debt | 251,803 | 251,803 | 254,591 | ||||
Less: current portion | (3,408) | (3,408) | (3,406) | ||||
Long-term debt, less current maturities | 248,395 | 248,395 | 251,185 | ||||
Fair Value [Member] | ABL Revolver [Member] | |||||||
Borrowings [Abstract] | |||||||
Total long-term debt | 0 | 0 | 0 | ||||
Fair Value [Member] | Term Loan B [Member] | |||||||
Borrowings [Abstract] | |||||||
Total long-term debt | 249,519 | 249,519 | 251,869 | ||||
Fair Value [Member] | Promissory Note [Member] | |||||||
Borrowings [Abstract] | |||||||
Total long-term debt | $ 2,284 | $ 2,284 | $ 2,722 | ||||
[1] | Carrying value amounts do not include unamortized debt issuance costs of $9.1M and $10.1 for June 30, 2018 and December 31, 2017, respectively. |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Restricted Stock [Roll Forward] | |||
Stock compensation expense | $ 1,003 | $ 1,010 | |
Restricted Stock [Member] | |||
Share-based payment award [Abstract] | |||
Percentages of vesting for one year | 100.00% | ||
Percentages of vesting for three years | 33.30% | ||
Percentages of vesting for five years | 20.00% | ||
Percentages of vesting for ten years | 10.00% | ||
Award vesting period | 1 year | ||
Number of shares available for future grants (in shares) | 279,149 | ||
Weighted Average Grant Price [Roll Forward] | |||
Non-vested, beginning balance (in dollars per share) | $ 30.36 | ||
Granted (in dollars per share) | 31.54 | ||
Forfeited (in dollars per share) | 46.68 | ||
Vested (in dollars per share) | 49.67 | ||
Non-vested, ending balance (in dollars per share) | $ 29.63 | ||
Restricted Stock [Roll Forward] | |||
Non-vested, beginning balance (in shares) | 77,901 | ||
Granted (in shares) | 124,474 | ||
Forfeited (in shares) | (2,400) | ||
Vested (in shares) | (12,699) | ||
Non-vested, ending balance (in shares) | 187,276 | ||
Stock compensation expense | $ 1,000 | 1,000 | |
Related income tax benefits recognized | 400 | $ 400 | |
Unrecognized compensation expense | $ 4,400 | $ 1,600 | |
Compensation cost not yet recognized, period for recognition | 28 months 6 days |
EARNINGS PER SHARE DATA (Detail
EARNINGS PER SHARE DATA (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basic [Abstract] | ||||
Weighted average shares outstanding (in shares) | 17,558 | 17,404 | 17,538 | 17,406 |
Net income attributable to DXP Enterprises, Inc. | $ 11,562 | $ 4,135 | $ 16,113 | $ 7,268 |
Convertible preferred stock dividend | 22 | 22 | 45 | 45 |
Net income attributable to common shareholders | $ 11,540 | $ 4,113 | $ 16,068 | $ 7,223 |
Per share amount (in dollars per share) | $ 0.66 | $ 0.24 | $ 0.92 | $ 0.42 |
Diluted [Abstract] | ||||
Weighted average shares outstanding (in shares) | 17,558 | 17,404 | 17,538 | 17,406 |
Assumed conversion of convertible preferred stock (in shares) | 840 | 840 | 840 | 840 |
Total dilutive shares (in shares) | 18,398 | 18,244 | 18,378 | 18,246 |
Net income attributable to common shareholders | $ 11,540 | $ 4,113 | $ 16,068 | $ 7,223 |
Convertible preferred stock dividend | 22 | 22 | 45 | 45 |
Net income attributable to DXP Enterprises, Inc. for diluted earnings per share | $ 11,562 | $ 4,135 | $ 16,113 | $ 7,268 |
Per share amount (in dollars per share) | $ 0.63 | $ 0.23 | $ 0.88 | $ 0.40 |
BUSINESS ACQUISITIONS (Details)
BUSINESS ACQUISITIONS (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Purchase Price Consideration [Abstract] | |||
Cash payments | $ 10,792 | ||
Application Specialties, Inc. [Member] | |||
Business Combination [Abstract] | |||
Purchase price of acquisition in cash and stock | 11,700 | ||
Contingent consideration, maximum | $ 3,200 | $ 4,600 | |
Payment period of contingent consideration | 3 years | ||
Contingent consideration, current | $ 1,400 | ||
Pro Forma Information [Abstract] | |||
Sales | 23,000 | ||
Earnings before taxes | $ 2,600 | ||
Purchase Price Consideration [Abstract] | |||
Cash payments | 10,792 | ||
Fair value of stock issued | 894 | ||
Present value of estimated fair value of contingent earn-out consideration | 4,006 | ||
Total purchase price consideration | $ 15,692 |
SEGMENT REPORTING, Business Seg
SEGMENT REPORTING, Business Segmented Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
Sales | $ 311,227 | $ 250,698 | $ 597,163 | $ 489,225 |
Income (loss) from operations | 20,060 | 10,257 | 31,209 | 18,493 |
Reportable Segment [Member] | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
Sales | 311,227 | 250,698 | 597,163 | 489,225 |
Amortization | 4,119 | 4,291 | 8,477 | 8,607 |
Income (loss) from operations | 31,025 | 19,599 | 52,932 | 36,191 |
Income from operations, excluding amortization | 35,144 | 23,890 | 61,409 | 44,798 |
Reportable Segment [Member] | Service Centers [Member] | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
Sales | 193,576 | 164,749 | 368,937 | 313,461 |
Amortization | 2,310 | 2,227 | 4,770 | 4,477 |
Income (loss) from operations | 19,623 | 16,190 | 32,992 | 27,281 |
Income from operations, excluding amortization | 21,933 | 18,417 | 37,762 | 31,758 |
Reportable Segment [Member] | Innovative Pumping Solutions [Member] | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
Sales | 74,257 | 44,470 | 141,899 | 93,528 |
Amortization | 1,538 | 1,793 | 3,165 | 3,588 |
Income (loss) from operations | 7,418 | (38) | 12,173 | 1,676 |
Income from operations, excluding amortization | 8,956 | 1,755 | 15,338 | 5,264 |
Reportable Segment [Member] | Supply Chain Services [Member] | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
Sales | 43,394 | 41,479 | 86,327 | 82,236 |
Amortization | 271 | 271 | 542 | 542 |
Income (loss) from operations | 3,984 | 3,447 | 7,767 | 7,234 |
Income from operations, excluding amortization | $ 4,255 | $ 3,718 | $ 8,309 | $ 7,776 |
SEGMENT REPORTING, Reconciliati
SEGMENT REPORTING, Reconciliation of operating Income to Consolidated Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Adjustment for [Abstract] | ||||
Amortization of intangible assets | $ 8,477 | $ 8,607 | ||
Income from operations | $ 20,060 | $ 10,257 | 31,209 | 18,493 |
Interest expense | 6,137 | 3,992 | 11,178 | 7,645 |
Other (income) expense, net | (1,416) | 57 | (1,438) | (171) |
Income before income taxes | 15,339 | 6,208 | 21,469 | 11,019 |
Reportable Segment [Member] | ||||
Segment reporting information [Abstract] | ||||
Operating income for reportable segments | 35,144 | 23,890 | 61,409 | 44,798 |
Adjustment for [Abstract] | ||||
Income from operations | 31,025 | 19,599 | 52,932 | 36,191 |
Segment Reconciling Items [Member] | ||||
Adjustment for [Abstract] | ||||
Amortization of intangible assets | 4,119 | 4,291 | 8,477 | 8,607 |
Corporate expenses | $ 10,965 | $ 9,342 | $ 21,723 | $ 17,698 |