Dxp Enterprises (DXPE) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $3.13 million, or $ 0.17 a share in the quarter, against a net loss of $5.11 million, or $0.35 a share in the last year period.
Revenue during the quarter dropped 5.93 percent to $238.53 million from $253.56 million in the previous year period. Gross margin for the quarter contracted 9 basis points over the previous year period to 27.05 percent. Operating margin for the quarter period stood at positive 3.45 percent as compared to a negative 0.79 percent for the previous year period.
Operating income for the quarter was $8.24 million, compared with an operating loss of $2 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $16.24 million compared with $6.77 million in the prior year period. At the same time, adjusted EBITDA margin improved 414 basis points in the quarter to 6.81 percent from 2.67 percent in the last year period.
David R. Little, chairman and chief executive officer remarked, "Our first quarter results reflect momentum building in our business. We are pleased with DXP's first quarter sales results which included sequential sales and operating income growth across all three business segments. Total DXP EBITDA also increased sequentially, adjusting for the one-time sale of Vertex. We are encouraged by the sequential increases and believe we could be in the early stages of a cyclical recovery. Thank you to all our customers and DXPeople for the support and effort. DXP's first quarter 2017 sales were $238.5 million, or a 7.3 percent increase over the fourth quarter. DXP's industrial end markets, which is 51 percent of our business, appears to have found some legs and shows signs of positive upward movement. Oil and gas, which is the remaining 49 percent of DXP, found a bottom in the third quarter of last year and is showing signs of gradual improvement. During the first quarter, sales were $148.7 million for Service Centers, $49.1 million for Innovative Pumping Solutions and $40.8 million for Supply Chain Services. Business segment operating income increased 13 percent sequentially and 57 percent year-over-year."
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