DXP Enterprises, Inc. (NASDAQ:DXPE) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 11:00 am ET


DXP Enterprises, Inc. (NASDAQ:DXPE) Q3 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the DXP Enterprise Third Quarter and Fiscal 2019 Conference Call. At this time, all participants are in listen-only mode. [Operator Instructions] I would now like to hand your conference over to your speaker today, Kent Yee. Please go ahead, sir.

Kent Yee

Thank you, Marcela. Thank you. This is Kent Yee, and welcome to DXP's Q3 2019 conference call, to discuss our results for the third quarter ended September 30, 2019. Joining me today is our Chairman and CEO, David Little.

Before we get started, I want to remind you that today's call is being webcast and recorded and includes forward-looking statements. Actual results may differ materially from those contemplated by these forward-looking statements. A detailed discussion of the many factors that we believe may have a material effect on our business on an ongoing basis are contained in our SEC filings. DXP assumes no obligation to update that information as a result of new information or future events.

During this call, we may present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our earnings press release. The press release and an accompanying investor presentation are now available on our website at ir.dxpe.com.

I will now turn the call over to David, to provide his thoughts and a summary of the third-quarter financial results.

David Little

Thanks, Keith -- Kent. Are you Keith today or Kent? Sorry about that. Anyway, thanks to everyone on our 2019 third-quarter conference call. Kent will take you through the key financial details after my remarks.

After our prepared comments, we will open up for Q&A. It is my privilege to share DXP's third-quarter results with you on behalf of over 2,700 DXPeople. Congratulations to all our stakeholders, and a special thanks to you, our DXPeople you can trust. We are pleased to announce strong third-quarter results with sales, operating income and earnings per share, all up over the prior year.

This is a great way to start the second half of 2019. We continue to deal with the ups and downs of our economic environment, as well as our key end market indicators are showing signs of slowing. We remain focused on serving our customers and providing products and services that help them save money, consolidate their MRO spend, manage their inventory, provide solutions to solve their evolving needs. Being customer-driven and growing sales profitably is our goal.

And in fiscal 2019, we have executed on this goal by: One, expanding our product offering within PumpWorks. Starting a greenfield start-up in Pittsburgh, expanding our aftermarket service and repair business, implementing software upgrades for one of our largest logistics customers, investigating in machine, machinery and equipment to increase production of rotating equipment, consolidating and expanding various service center facilities, enlarging our vendor-managed inventory programs, and implementing new sites within supply chain services and diversified industries outside of oil and gas.

Additionally, we have invested in our DXPeople with training, upgraded computer