DXP Enterprises Announces First Quarter Results

DXP Enterprises, Inc. (NASDAQ:DXPE) today announced net income of $3,172,000 for the first quarter ended March 31, 2009, with diluted earnings per share of $.23 compared to net income of $5,439,000 and diluted earnings per share of $.39 for the first quarter of 2008. Sales decreased 6.5% to $157.6 million from $168.5 million for the first quarter of last year. Sales by the three businesses acquired in 2008 accounted for $14.2 million of 2009 sales on a same store basis. Excluding sales by the three acquired businesses, sales for the first quarter of 2009 decreased 14.9% from the first quarter of 2008 on a same store sales basis. The sales decrease is primarily due to a broad based decrease in sales of pumps, bearings, safety products and mill supplies resulting from the decline in the U.S. economy.

David R. Little, Chairman and Chief Executive Officer, said, "Our Company goals and pay structure demand that we grow sales and manage cash flow and bottom line results. Even though we face a tough economy, our ability to grow market share and manage profits will position us for future successes and rewards. I am very pleased with our abilities to gain market share by growing Super Centers and new Precision Supply Chain Service Agreements.”

Mac McConnell, Senior Vice President and Chief Financial Officer, said, "I am very pleased to report we reduced total long-term debt by $20.3 million during the first quarter of 2009. As of March 31, 2009 approximately $45.7 million was available to be borrowed under our credit facility.”

DXP Enterprises, Inc. is a leading products and service distributor focused on adding value and total cost savings solutions to MRO and OEM customers in virtually every industry since 1908. DXP provides innovative pumping solutions, supply chain services and MROP (maintenance, repair, operating and production) services that emphasize and utilize DXP’s vast product knowledge and technical expertise in pumps, bearings, power transmission, seals, hose, safety, fluid power, electrical and industrial supplies. DXP’s breadth of MROP products and service solutions allows DXP to be flexible and customer driven, creating competitive advantages for our customers.

DXP’s innovative pumping solutions provide engineering, fabrication and technical design to meet the capital equipment needs of its global customer base. DXP provides solutions by utilizing manufacturer authorized equipment and certified personnel. Pump packages require MRO and OEM equipment such as pumps, motors and valves, and consumable products. DXP leverages its MROP inventories and technical knowledge to lower the total cost and maintain the quality of the pump package.

Precision Supply Chain Services, a DXP integrated supply and category management program, provides a more efficient way to manage the customer’s supply chain needs for indirect products. Our programs allow the customer to transfer all or part of its supply chain needs to DXP, so the customer can focus on its core business. By outsourcing purchasing, accounting, and on-site supply management to DXP, our customers effectively lower their supply chain costs and eliminate redundancies in the supply chain. DXP's broad range of first-tier products provides an efficient measurable solution to reduce cost and streamline procurement and sourcing operations.

The Private Securities Litigation Reform Act of 1995 provides a "safe-harbor” for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made by or to be made by the Company) contains statements that are forward-looking. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future; and accordingly, such results may differ from those expressed in any forward-looking statement made by or on behalf of the Company. These risks and uncertainties include, but are not limited to, ability to obtain needed capital, dependence on existing management, leverage and debt service, domestic or global economic conditions, and changes in customer preferences and attitudes. For more information, review the Company's filings with the Securities and Exchange Commission.

During the first quarter of 2009 DXP adopted the FASB issued Staff Position No. EITF 03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities” (FSP EITF 03-6-1). The adoption of FSP EITF 03-6-1 reduced basic and diluted EPS for the three months ended March 31, 2008 by $0.1 and $0.1 respectively. Basic EPS, diluted EPS, weighted average common shares outstanding and weighted average common and common equivalent shares outstanding for 2008 have been restated in accordance with FSP EITF 03-6-1.