DXP Enterprises, Inc. today announced net loss of $50.5 million for the fourth quarter ending December 31, 2009 with diluted loss per share ("EPS") of $3.84 compared to net income of $7.0 million and EPS of $0.51 for the fourth quarter of 2008.
The current quarter reported EPS 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. Absent these charges, adjusted EPS for the current quarter would have been $0.19 compared with the prior year quarter EPS of $0.51. Adjusted EPS for the current quarter would have been flat sequentially from the quarter ending September 30, 2009.
For the year ended December 31, 2009, DXP reported a net loss of $42.4 million, with diluted loss per share of $3.24 compared to net income of $25.9 million, with diluted earnings per share of $1.87 for 2008.
David R. Little, Chairman and Chief Executive Officer remarked, "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. We believe our markets are improving and we are excited about the opportunity to acquire Quadna. Quadna is one of the leading suppliers of fluid handling systems in the U.S. and is recognized globally for its system application expertise. The Phoenix, Arizona-based company has nine branches in six states and Mexico and principally serves the mining, oil and gas, municipal power, food and beverage, semiconductor and chemical/pharmaceutical markets. Quadna is the third or fourth largest Goulds distributor and Goulds is DXP's largest vendor. We feel good about our future and we are excited about our new potential acquisition. Our growth strategies enable us to grow market share and our operational excellence program continues to reduce our cost to serve our customers."
Mac McConnell, Senior Vice President and CFO, added, "I am very pleased that DXP was able to reduce total long-term debt by $53.0 million during 2009. DXP also amended its credit facility to relax fixed charge coverage ratio and leverage ratio requirements and provide greater flexibility to complete acquisitions. As of December 31, 2009, $37.3 million was available to be borrowed under our credit facility."
DXP Enterprises, Inc. is a leading products and service distributor that adds value and total cost savings solutions to MRO and OEM customers in virtually every industry since 1908. DXP provides innovative pumping solutions, supply chain services and MROP (maintenance, repair, operating and production) services that emphasize and utilize DXP's vast product knowledge and technical expertise in pumps, bearings, power transmission, seals, hose, safety, fluid power, electrical and industrial supplies. DXP's breadth of MROP products and service solutions allows DXP to be flexible and customer driven creating competitive advantages for our customers.
DXP's innovative pumping solutions provide engineering, fabrication and technical design to meet the capital equipment needs of its global customer base. DXP provides solutions by utilizing manufacturer authorized equipment and certified personnel. Pump packages require MRO and OEM equipment such as pumps, motors and valves, and consumable products. DXP leverages its MROP inventories and technical knowledge to lower the total cost and maintain the quality of the pump package.
Precision Supply Chain Services, a DXP supply chain services program, allows a more efficient way to manage the customer's supply chain needs for MROP products. The program allows the customer to transfer all or part of their supply chain needs to DXP, so the customer can focus on his core business. SmartSource effectively lowers costs by outsourcing purchasing, accounting, and on-site supply management to DXP, which reduces the duplication of effort by the customer and supplier. DXP's broad range of first-tier products provides an efficient measurable solution to reduce cost and streamline procurement and sourcing operations.
The Private Securities Litigation Reform Act of 1995 provides a "safe-harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made by or to be made by the Company) contains statements that are forward-looking. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future; and accordingly, such results may differ from those expressed in any forward-looking statement made by or on behalf of the Company. These risks and uncertainties include, but are not limited to; ability to obtain needed capital, dependence on existing management, leverage and debt service, domestic or global economic conditions, and changes in customer preferences and attitudes. For more information, review the Company's filings with the Securities and Exchange Commission.
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