DXP Enterprises, Inc. (DXPE) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $0.26 million, or $ 0.02 a share in the quarter, against a net loss of $52.44 million, or $3.64 a share in the last year period.

Revenue during the quarter dropped 24.10 percent to $230.02 million from $303.08 million in the previous year period. Gross margin for the quarter contracted 53 basis points over the previous year period to 27.74 percent. Operating margin for the quarter period stood at positive 2.14 percent as compared to a negative 18.35 percent for the previous year period.

Operating income for the quarter was $4.93 million, compared with an operating loss of $55.61 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $13.60 million compared with $19.75 million in the prior year period. At the same time, adjusted EBITDA margin contracted 61 basis points in the quarter to 5.91 percent from 6.52 percent in the last year period.

David R. Little, chairman and chief executive officer remarked, "DXP continues to manage to the current realities and we are proud of the gains our DXPeople have made year-to-date. We are managing costs and producing free cash flow. We also are preparing for the future and the next up cycle, which we believe is coming. We continue to appreciate the hard work and perseverance from all our DXPeople. Total DXP revenues of $230.0 million for the third quarter declined 10.2 percent sequentially. As previously outlined in our earnings pre-release on October 19th, DXP's third quarter performance reflects low sales across all of DXP's business segments during the month of July. August and September sales were more in line with average year-to-date monthly performance but did not make-up for the July aberration. We remain confident in our future and the opportunities ahead for DXP. Again, DXP is poised for earnings leverage and sales growth once the market turns."