DXP Enterprises Clocks 26% Sales Growth In Q4, Changes Auditor

DXP Enterprises Inc DXPE reported fourth-quarter sales growth of 26% year-over-year to $293.1 million.
Sales by segments: Service Centers $207.96 million (+28.9% Y/Y), Innovative Pumping Solutions $43.18 million (+21.2% Y/Y), and Supply Chain Services $42.02 million (+17.4% Y/Y).
EPS was $0.05 versus $(0.18) in 4Q20.
The gross margin expanded by 200 bps to 28.9% for the quarter.
Total segment operating income was $30.51 million (+39.3% Y/Y), and the margin expanded by 100 bps to 10.4%.
Adjusted EBITDA increased by 24.2% Y/Y to $14.77 million, and margin contracted 10 bps to 5%.
DXP Enterprises' net cash from operating activities stood at $37.09 million for FY21, compared to $109.65 million in FY20. Free cash flow was $32.76 million.
As of December 31, 2021, DXPE had ~$180.7 million in liquidity, including $49 million in cash. Net debt was $277.7 million.
"The sales momentum from our fourth quarter has positioned us for continued success as we move into 2022," commented David R. Little, Chairman and CEO.
The company has completed its auditor transition plan, naming PricewaterhouseCoopers LLP as its independent registered public accounting firm for FY22.
Price Action: DXPE shares are lower by 7.19% at $29.03 on the last check Friday.

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