DXP Enterprises Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>DXP Enterprises Inc. has filed its annual report detailing its 2023 financial performance and operations.</b>

AI Summary

DXP ENTERPRISES INC (DXPE) filed a Annual Report (10-K) with the SEC on March 11, 2024. DXP Enterprises Inc. filed its 2023 Form 10-K on March 11, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is wholesale distribution of industrial machinery and equipment. DXP Enterprises Inc. is incorporated in Texas. The filing includes financial data for fiscal years 2020, 2021, 2022, and 2023.

Why It Matters

For investors and stakeholders tracking DXP ENTERPRISES INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of DXP Enterprises' financial health, operational performance, and strategic direction for the fiscal year 2023, crucial for investors and stakeholders to assess the company's current standing and future prospects. The detailed financial statements and risk factors disclosed in this report are essential for understanding the company's market position, potential challenges, and the regulatory environment it operates within.

Risk Assessment

Risk Level: medium — DXP ENTERPRISES INC shows moderate risk based on this filing. The company operates in the wholesale distribution of industrial machinery and equipment, a sector that can be sensitive to economic cycles and industrial spending, as indicated by its SIC code 5084.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand DXP Enterprises' performance and outlook for the industrial machinery and equipment sector.

Key Numbers

• 20231231 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 20240311 — Filing Date (FILED AS OF DATE)
• 5084 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)
• TX — State of Incorporation (STATE OF INCORPORATION)

Key Players & Entities

• DXP ENTERPRISES INC (company) — FILER
• 0001020710 (company) — CENTRAL INDEX KEY
• 5084 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• TX (company) — STATE OF INCORPORATION
• 760509661 (company) — IRS NUMBER
• 7139964700 (company) — BUSINESS PHONE
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240311 (date) — FILED AS OF DATE

FAQ

Industry Context

DXP Enterprises operates in the wholesale distribution of industrial machinery and equipment, a sector that supports various manufacturing and industrial processes.

Regulatory Implications

The company is subject to standard SEC reporting requirements for public companies, including the annual filing of a Form 10-K.

What Investors Should Do

1. Analyze the financial statements within the 10-K for revenue trends, profitability, and balance sheet health.
2. Review the risk factors section to identify potential challenges and their impact on DXP Enterprises.
3. Assess management's discussion and analysis (MD&A) for insights into operational performance and strategic initiatives.

Key Dates

• 2023-12-31: Fiscal Year End — End of reporting period for the 10-K.
• 2024-03-11: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing of the 2023 Form 10-K, providing the latest annual financial and operational data.

Key Financial Figures

• $0.01 — hich Registered Common Stock par value $0.01 DXPE NASDAQ Global Select Market Secu
• $125 million — . Our total sales have increased from $125 million in 1996 to $1.7 billion in 2023 through
• $1.7 billion — increased from $125 million in 1996 to $1.7 billion in 2023 through a combination of intern
• $1,145 — les End Markets Locations Employees SC $1,145 68% General Industrial, Oil & Gas, Food
• $273 — ers, 4 distribution centers 1,723 IPS $273 16% Oil & Gas, Mining, Chemical, Water
• $260 — ities, 6 wastewater locations 383 SCS $260 16% Food & Beverage, Transportation, Oi
• $138.4 million — ntered into our production systems, was $138.4 million and $108.5 million at December 31, 2023
• $108.5 million — duction systems, was $138.4 million and $108.5 million at December 31, 2023 and 2022, respecti

Filing Documents

• dxpe-20231231.htm (10-K) — 2016KB
• dxpexhibit461231202310k.htm (EX-4.6) — 20KB
• dxpeexhibit2111231202310k.htm (EX-21.1) — 7KB
• dxpeexhibit2211231202310k.htm (EX-22.1) — 7KB
• dxpeexhibit23112312023.htm (EX-23.1) — 2KB
• dxpeexhibit2321231202310k.htm (EX-23.2) — 2KB
• dxpeexhibit3111231202310k.htm (EX-31.1) — 10KB
• dxpeexhibit3121231202310k.htm (EX-31.2) — 10KB
• dxpeexhibit3211231202310k.htm (EX-32.1) — 5KB
• dxpeexhibit3221231202310k.htm (EX-32.2) — 5KB
• dxpeexhibit971231202310k.htm (EX-97) — 24KB
• dxpe-20231231_g1.jpg (GRAPHIC) — 18KB
• dxpe-20231231_g2.jpg (GRAPHIC) — 34KB
• dxpe-20231231_g3.jpg (GRAPHIC) — 97KB
• dxpe-20231231_g4.jpg (GRAPHIC) — 39KB
• dxpe-20231231_g5.jpg (GRAPHIC) — 126KB
• 0001020710-24-000026.txt (&nbsp;) — 11526KB
• dxpe-20231231.xsd (EX-101.SCH) — 73KB
• dxpe-20231231_cal.xml (EX-101.CAL) — 141KB
• dxpe-20231231_def.xml (EX-101.DEF) — 371KB
• dxpe-20231231_lab.xml (EX-101.LAB) — 838KB
• dxpe-20231231_pre.xml (EX-101.PRE) — 633KB
• dxpe-20231231_htm.xml (XML) — 1600KB

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 50 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 73 9A. Controls and Procedures 73 9B. Other Information 75 PART III 10. Directors, Executive Officers, and Corporate Governance 75 11. Executive Compensation 75 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 75 13. Certain Relationships and Related Transactions, and Director Independence 75 14. Principal Accounting Fees and Services 75 PART IV 15. Exhibits, Financial Statement Schedules 76 16. Form 10-K Summary 79

SIGNATURES

SIGNATURES 79 2 Table of Contents DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K (this "Report") contains statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include without limitation those about the Company's expectations regarding the Company's business, and the Company's future profitability, cash flow, liquidity, and growth. Such forward-looking statements can be identified by the use of forward-looking terminology such as "believes", "expects", "may", "might", "estimates", "will", "should", "could", "would", "suspect", "potential", "current", "achieve", "plans" or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy but the absence of these words does not mean that a statement is not forward-looking. Any such forward-looking statements are not guarantees of future performance and may involve significant risks and uncertainties, and actual results may vary materially from those discussed in the forward-looking statements or historical performance as a result of various factors. These factors include, but not limited to, the effectiveness of management's strategies and decisions, our ability to implement our internal growth and acquisition growth strategies, general economic and business conditions specific to our primary customers, changes in government regulations, our ability to effectively integrate businesses we may acquire, new or modified statutory or regulatory requirements, availability of materials and labor, inability to obtain or delay in obtaining government or third-party approvals and permits, non-performance by third parties of their contractual obligations, unforeseen hazards such as weather conditions, acts of war or terrorist acts and the governmental or military response thereto, cyber-attacks adversely affect

. Business

ITEM 1 . Business Company Overview Founded in 1908, DXP Enterprises, Inc. (together with our subsidiaries, hereinafter referred to as "DXP" or the "Company" or by the terms such as we, our, or us) was incorporated in Texas in 1996 to be the successor to SEPCO Industries, Inc. Since our predecessor company was founded, we have primarily been engaged in the business of distributing maintenance, repair and operating ("MRO") products, equipment and service to customers in a variety of end markets including the general industrial, energy, food & beverage, chemical, transportation, water and wastewater. The Company is organized into three business segments: Service Centers ("SC"), Innovative Pumping Solutions ("IPS") and Supply Chain Services ("SCS"). Sales, operating income, and other financial information for 2023, 2022 and 2021, and identifiable assets at the close of such years for our business segments are presented in Note 2 0 – Segment Reporting to the Consolidated Financial Statements in Item 8. Financial Statements and Supplementary Data . Our total sales have increased from $125 million in 1996 to $1.7 billion in 2023 through a combination of internal growth and business acquisitions. At December 31, 2023, we operated from 183 locations which included 37 states in the United States ("U.S."), 9 provinces in Canada and one location in Dubai serving customers and becoming customer driven experts in maintenance, repair and operating solutions. 4 Table of Contents The following table shows, as of the end of the last 10 fiscal years, our consolidated sales; total number of locations; the number of SC locations, IPS facilities, SCS customer sites, and the corresponding sales and average sales per business segment location: ($ in millions) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Sales $ 1,500 $ 1,247 $ 962 $ 1,007 $ 1,216 $ 1,265 $ 1,005 $ 1,114 $ 1,481 $ 1,679 Locations 271 260 245 243 249 244 247 252 275 264 SC sales $ 988 $ 827 $ 621 $ 6

View Full Filing

View this 10-K filing on SEC EDGAR