Posted March 23, 2010
DXP Enterprises reports loss
DXP Enterprises Inc. announced a net loss of $50.5 million, or $3.84 per share, for the fourth quarter compared to net income of $7.0 million, or 51 cents per share, for the fourth quarter of 2008.
Sales decreased 28.8% to $137.8 million.
The current quarter included an impairment of goodwill and other intangibles of $53.0 million, a $13.8 million reduction in value of inventory acquired from Precision and $5.6 million of restructuring and other special fourth quarter charges, amounting to $72.4 million of charges.
For the year, DXP reported a net loss of $42.4 million, or $3.24 per share, on sales of $583.2 million. That compared to net income of $25.9 million, $1.87 per share, on sales of $736.8 million in 2008.
"In connection with the severe economic recession, we incurred an impairment of goodwill and other intangibles. In converting Precision to our IT system we discovered old and slow moving inventory. In addition to these non-cash events, we incurred restructuring and other one-time charges. With these one-time events behind us, the good news is we have amended our credit facility to give us more flexibility for growth," said David R. Little, chairman and CEO.
Little also announced plans for DXPE to acquire Quadna, a Phoenix-based distributor of fluid handling systems with nine branches in six states and Mexico. It principally serves the mining, oil and gas, municipal power, food and beverage, semiconductor and chemical/pharmaceutical markets.
