<SEC-DOCUMENT>0001157523-15-003764.txt : 20151109
<SEC-HEADER>0001157523-15-003764.hdr.sgml : 20151109
<ACCEPTANCE-DATETIME>20151105162915
ACCESSION NUMBER:		0001157523-15-003764
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20151105
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20151105
DATE AS OF CHANGE:		20151105

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DXP ENTERPRISES INC
		CENTRAL INDEX KEY:			0001020710
		STANDARD INDUSTRIAL CLASSIFICATION:	WHOLESALE-INDUSTRIAL MACHINERY & EQUIPMENT [5084]
		IRS NUMBER:				760509661
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			0727

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21513
		FILM NUMBER:		151201074

	BUSINESS ADDRESS:	
		STREET 1:		7272 PINEMONT DRIVE
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77040
		BUSINESS PHONE:		7139964700

	MAIL ADDRESS:	
		STREET 1:		7272 PINEMONT DRIVE
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77040

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INDEX INC
		DATE OF NAME CHANGE:	19960808
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a51218706.htm
<DESCRIPTION>DXP ENTERPRISES, INC. 8-K
<TEXT>
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      <font style="font-size: 16pt">UNITED STATES</font><font style="font-size: 16pt"><br style="font-size: 16pt"></font><font style="font-size: 16pt">SECURITIES
      AND EXCHANGE COMMISSION</font><font style="font-size: 16pt"><br style="font-size: 16pt"></font><font style="font-size: 16pt">Washington,
      D.C. 20549</font>
    </p>
    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      <font style="font-size: 16pt"><b>Form 8-K</b></font>
    </p>
    <p style="white-space: nowrap">

    </p>
    <p style="text-align: center">
      <b>CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934</b><br><b>Date of Report (date of earliest event
      reported):&#160;&#160;<font style="font-family: Times New Roman; font-size: 10pt">November
      5, 2015</font></b><br>
    </p>
    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      <b>Commission file number 0-21513</b>
    </p>
    <p style="text-align: center">
      <font style="font-size: 18pt"><b>DXP Enterprises, Inc.</b></font><br><i>(Exact
      name of registrant as specified in its charter)</i>
    </p>
    <p style="text-align: center">

    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-size: 10pt; font-family: Times New Roman; margin-bottom: 10.0px; width: 100%">
      <tr>
        <td style="text-align: center; padding-left: 0.0px; width: 50%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><b>Texas</b></u>
          </p>
        </td>
        <td style="text-align: center; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; width: 50%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><b>76-0509661</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px; width: 50%" valign="top">
          (State or other jurisdiction of incorporation or organization)
        </td>
        <td style="text-align: center; padding-left: 0.0px; width: 50%" valign="top">
          (I.R.S. Employer Identification Number)
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 50%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px; width: 50%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><b>7272 Pinemont, Houston, Texas 77040</b></u>
          </p>
        </td>
        <td style="text-align: center; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; width: 50%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><b>(713) 996-4700</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px; width: 50%" valign="top">
          (Address of principal executive offices)
        </td>
        <td style="text-align: center; padding-left: 0.0px; width: 50%" valign="top">
          Registrant&#8217;s telephone number, including area code.
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      _________________________
    </p>
    <p style="text-align: center">
      Registrant&#8217;s telephone number, including area code:<br><b>(713)
      996-4700</b><br>_________________________
    </p>
    <p style="text-align: center">

    </p>
    <p>
      Check the appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:
    </p>
    <p style="white-space: nowrap">
      [&#160;&#160;]&#160;&#160;Written communications pursuant to Rule 425 under the Securities
      Act (17 CFR 230.425)<br>[&#160;&#160;]&#160;&#160;Soliciting material pursuant to Rule
      14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>[&#160;&#160;]&#160;&#160;Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))<br>[&#160;&#160;]&#160;&#160;Pre-commencement communications pursuant to Rule
      13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
    </p>
    <p style="white-space: nowrap">

    </p>
    <div style="margin-left: 0pt; margin-bottom: 10pt; margin-right: 0pt; width: 100%; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: justify; white-space: nowrap">
      ITEM 2.02.&#160;&#160;REGULATION FD DISCLOSURE
    </p>
    <p style="text-align: justify">
      The following information is furnished pursuant to Regulation FD.
    </p>
    <p style="text-align: justify">
      On November 5, DXP Enterprises, Inc., issued a press release announcing
      financial results for the quarter ended September 30, 2015, a copy of
      which is furnished as Exhibit 99.1 hereto, which is incorporated herein
      by reference.&#160;&#160;Such exhibit (i) is furnished pursuant to Item 2.02 of
      Form 8-K, (ii) is not to be considered &#8220;filed&#8221; under the Securities
      Exchange Act of 1934, as amended (the &#8220;Exchange Act&#8221;) and (iii) shall
      not be incorporated by reference into any previous or future filings
      made by or to be made by the Company with the Securities and Exchange
      Commission under the Securities Act of 1933, as amended (the &#8220;Securities
      Act&#8221;), or the Exchange Act.
    </p>
    <p>

    </p>
    <p style="text-align: justify; white-space: nowrap">
      ITEM 9.01.&#160;&#160;FINANCIAL STATEMENTS AND EXHIBITS
    </p>
    <p style="text-align: justify; white-space: nowrap">
      (d)&#160;&#160;<i>Exhibits.</i>
    </p>
    <p style="text-align: justify; white-space: nowrap">
      <i>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</i>99.1
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Press Release dated November 5, 2015
    </p>
    <p style="text-align: justify; white-space: nowrap">

    </p>
    <div style="margin-left: 0pt; margin-bottom: 10pt; margin-right: 0pt; width: 100%; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      SIGNATURE
    </p>
    <p style="text-align: justify">
      Pursuant to the requirements of the Securities Exchange Act of 1934, as
      amended, the Registrant has duly caused this report to be signed on its
      behalf by the undersigned hereunto duly authorized.
    </p>
    <p>

    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-size: 10pt; font-family: Times New Roman; margin-bottom: 10.0px; width: 100%">
      <tr>
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          <p style="text-align: justify">

          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 57%" valign="top">
          <p style="text-align: justify">

          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top" colspan="2">
          <p style="text-align: justify">
            DXP ENTERPRISES, INC.
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 57%">

        </td>
        <td style="width: 3%">

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        <td style="width: 35%">
          &#160;
        </td>
      </tr>
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        <td style="text-align: left; padding-left: 0.0px; width: 5%" valign="top">
          Date:
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 57%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            November 5, 2015
          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 3%" valign="top">
          By:
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 35%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u>/s/ Mac McConnell</u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 57%">

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top" colspan="2">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Mac McConnell
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 57%">

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top" colspan="2">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Senior Vice President and<br>Chief Financial Officer
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="margin-left: 0pt; margin-bottom: 10pt; margin-right: 0pt; width: 100%; text-indent: 0pt">
      <div>
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        <div style="text-align: center">

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          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      INDEX TO EXHIBITS
    </p>
    <p style="text-align: justify">
      <b>Introductory Note:&#160;&#160;</b>The following exhibit is furnished
      pursuant to Item 2.02 of Form 8-K and is not to be considered &#8220;filed&#8221;
      under the Exchange Act and shall not be incorporated by reference into
      any of the Company&#8217;s previous or future filings under the Securities Act
      or the Exchange Act.
    </p>
    <p style="text-align: justify">

    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-size: 10pt; font-family: Times New Roman; margin-bottom: 10.0px; width: 100%">
      <tr>
        <td style="text-align: left; padding-left: 0.0px; width: 15%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><i><b>Exhibit No.</b></i></u>
          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 85%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><i><b>Description</b></i></u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; width: 15%" valign="top">
          <p style="text-align: justify">
            99.1
          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 85%" valign="top">
          <p style="text-align: justify">
            Press Release dated November 5, 2015 regarding financial results
            for the quarter ended September 30, 2015
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a51218706ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>DXP
      Enterprises Announces 2015 Third Quarter Results</b></font>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-family: Times New Roman; font-size: 12pt"><b>Sales
        of $303 million for the quarter, down 6 percent sequentially and 22
        percent year-over-year</b></font></i>
      </li>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-family: Times New Roman; font-size: 12pt"><b>Free
        cash flow for the quarter of $16 million. Excluding one-time cash
        outflows, free cash flow for the quarter was $30.5 million</b></font></i>
      </li>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-family: Times New Roman; font-size: 12pt"><b>Recorded
        $67.2 million in one-time, impairment or special charges related to
        B27 and the ITT Goulds&#8217; separation</b></font></i>
      </li>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-family: Times New Roman; font-size: 12pt"><b>On
        October 29, DXP officially launched a complete rotating equipment
        supply chain solution to better serve existing and new customers</b></font></i>
      </li>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-family: Times New Roman; font-size: 12pt"><b>Completed
        acquisition of Cortech Engineering</b></font></i>
      </li>
    </ul>
    <p>
      HOUSTON--(BUSINESS WIRE)--November 5, 2015--<b>DXP Enterprises, Inc.
      (NASDAQ: DXPE)</b> announces financial results for its third quarter
      ended September 30, 2015. The following are results for the three months
      and nine months ended September 30, 2015 compared to the three months
      and nine months ended September 30, 2014. A reconciliation of the
      non-GAAP financial measures is in the back of this press release.
    </p>
    <p>
      <b>DXP Enterprises 2015 Third Quarter Financial Highlights:</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Sales were $303.1 million for the third quarter of 2015, a decrease of
        6.4 percent from the second quarter and a decrease of 21.7 percent
        compared to $387.1 million for the third quarter of 2014. Organic
        sales decreased 6.7 percent sequentially and 22.3 percent from 2014.
        Acquisitions positively impacted sales by $2.2 million.
      </li>
      <li style="margin-bottom: 10.0px">
        Gross profit was $85.7 million, or 28.3 percent of sales for the third
        quarter of 2015, compared to $113.4 million, or 29.3 percent of sales
        for the third quarter of 2014.
      </li>
      <li style="margin-bottom: 10.0px">
        Selling, general &amp; administrative (SG&amp;A) expenses were $75.1 million,
        or 24.8 percent of sales for the third quarter of 2015, compared to
        $82.6 million, or 21.3 percent of sales for the third quarter of 2014.
      </li>
      <li style="margin-bottom: 10.0px">
        Adjusted EBITDA for the third quarter of 2015 was $20.0 million,
        versus $22.5 million for the second quarter of 2015 and $39.8 million
        for the third quarter of 2014. Adjusted EBITDA as a percentage of
        sales was 6.6 percent versus 6.9 percent for the second quarter of
        2015 and 10.3 percent in 2014, respectively. EBITDA was $11.7 million
        for the current quarter. Adjusted EBITDA includes a one-time $7.3
        million working capital dispute settlement and $1.0 million in above
        normal legal fees.
      </li>
      <li style="margin-bottom: 10.0px">
        Loss per diluted share for the third quarter was $3.64. Excluding
        non-cash impairment charges of $58.9 million and the one-time $7.3
        million working capital dispute settlement, earnings per diluted share
        were $0.32 per share, assuming a 40.0 percent tax rate and based upon
        15.3 million diluted shares.
      </li>
      <li style="margin-bottom: 10.0px">
        Free cash flow (cash flow from operating activities less capital
        expenditures) for the third quarter of 2015 was $16.0 million,
        compared to $39.7 million for the third quarter of 2014. Excluding
        $11.3 million paid in connection with the working capital dispute
        settlement with the sellers of B27, $1.0 million of legal fees related
        to disputes with ITT Goulds and the sellers of B27 and $2.2 million of
        capital expenditures in excess of a normalized $3.0 million level of
        capital expenditures, free cash flow would have been $30.5 million for
        the quarter.
      </li>
    </ul>
    <p>
      David R. Little, Chairman and CEO remarked, &#8220;DXP continues to perform in
      the midst of the cyclical downturn and ahead of similar peers with like
      exposure. DXP&#8217;s business segments performed well in the midst of a
      challenging market. Total DXP&#8217;s sales declined 6 percent sequentially
      and 22 percent year-over-year. Continuing to outperform the 20 percent
      sequential and 56.6 percent decline year-over-year for the North
      American rig count. During the third quarter we continued to experience
      uphill sales challenges across our major end markets including upstream
      drilling, development and completion; upstream production; and mining
      markets. That being said, we remain focused on managing costs, improving
      performance and investing for the eventual upturn. We continue to
      appreciate all the hard work from our DXPeople. During the third
      quarter, we experienced sequential sales declines across each of our
      business segments with Innovative Pumping Solutions&#174; declining 8
      percent, Service Centers 7 percent and Supply Chain Services declining
      0.8 percent. During the third quarter, we also experienced a 115 basis
      point and 27 basis point, sequential improvement in operating income
      margin, respectively, for Innovative Pumping Solutions and Supply Chain
      Services. We are excited by these improvements and will continue to look
      for opportunities across each of our segments and corporate to manage
      costs. DXP also produced an adjusted EBITDA of $20.0 million and free
      cash flow of over $30.5 million excluding certain items. We are pleased
      with our ability to generate cash and manage our resources effectively.&#8221;
    </p>
    <div style="margin-left: 0pt; margin-bottom: 10pt; margin-right: 0pt; width: 100%; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      &#8220;Additionally, we recently announced transformative actions, including
      the separation from ITT Goulds. We are excited to move forward for our
      customers' and employees' benefit. This resolution increases our
      flexibility to grow profitably as we continue to focus on meeting
      customer needs, delivering strong performance and sustainable economic
      value for our customers, employees and shareholders. Our longer-range
      outlook was strongly enhanced with our announcement of a complete supply
      chain solution within rotating equipment. We continue to focus on
      controllable execution that services our customers, maintains our
      differentiation and creates sustainable shareholder value. While we
      expect the near-term to continue to be challenging, our outlook for the
      long term is very positive based on our proven track record of
      navigating through similar cycles and positioning DXP for the future,&#8221;
      Little concluded.
    </p>
    <p>
      Mac McConnell, CFO added, &quot;DXP generated $16.0 million in free cash flow
      for the quarter and $63.3 million year-to-date. During the quarter, DXP
      paid down debt by $1.0 million while also paying $10.5 million for the
      acquisition of Cortech, $11.3 million in connection with the working
      capital dispute with the sellers of B27, $4.7 million for capital
      expenditures related to our new pump offering and $1.0 million of legal
      fees related to disputes with ITT Goulds and the sellers of B27. As
      such, we continue to produce strong free cash flow even after investing
      for growth and managing one-time costs. Our third quarter EBITDA for
      bank purposes was $20.2 million. Our bank leverage ratio was 3.58:1 as
      of the end of the third quarter.&quot;
    </p>
    <p>
      We will host a conference call regarding 2015 third quarter results on
      the Company&#8217;s website (<u>www.dxpe.com</u>) today at 5 p.m. EST.
      Web participants are encouraged to go to the Company&#8217;s website at least
      15 minutes prior to the start of the call to register, download and
      install any necessary audio software. The online archived replay will be
      available immediately after the conference call at <u>www.dxpe.com</u>
      and at <u>www.viavid.net</u>.
    </p>
    <p>
      <b>One-Time Payments</b>
    </p>
    <p>
      During the third quarter of 2015, DXP incurred a total of $12.3 million
      of one-time payments associated with the final working capital dispute
      resolution associated with the B27 transaction and legal fees associated
      with ITT Goulds and the sellers of B27. The $11.3 million final working
      capital dispute payment was the result of an accounting arbitration
      process whereby an accounting expert reviewed DXP&#8217;s and the sellers'
      claim based upon a disagreement surrounding the closing working capital
      target. This was a one-time payment and will have no impact on DXP&#8217;s
      business and bank credit agreement. The $1.0 million in legal fees
      associated with the final working capital dispute and ITT Goulds
      represent costs above normal recurring legal costs.
    </p>
    <p>
      <b>Impairments</b>
    </p>
    <p>
      As a result of the sustained decline in crude oil prices, reduced
      capital spending by customers and reduced revenue expectations, DXP
      performed an interim impairment test and recognized preliminary
      impairment expense of $57.8 million of the goodwill associated with the
      acquisition of B27 during the third quarter of 2015. DXP also recorded a
      $1.1 million impairment charge to write-off intangible assets related to
      the Goulds&#8217; vendor relationship.
    </p>
    <div style="margin-left: 0pt; margin-bottom: 10pt; margin-right: 0pt; width: 100%; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>DXP Enterprises 2015 Third Quarter Business Segment Results:</b>
    </p>
    <ul style="margin-left: 30.0px">
      <li style="margin-bottom: 10.0px">
        <u><i>Service Centers&#8217;</i></u> revenue for the third quarter
        declined 21.9 percent year-over-year with a 9.0 percent operating
        income margin. Organic revenue declined 22.7 percent year-over-year.

        <ul>
          <li style="margin-bottom: 10.0px">
            For the nine months, revenue declined 13.0 percent with a 9.7
            percent operating income margin.
          </li>
        </ul>
      </li>
      <li style="margin-bottom: 10.0px">
        <u><i>Innovative Pumping Solutions&#8217;</i></u> revenue for the
        third quarter declined 30.7 percent year-over-year with a 10.0 percent
        operating income margin. Innovative Pumping Solutions experienced a
        strong sequential improvement in operating income margins with a 115
        basis point improvement.

        <ul>
          <li style="margin-bottom: 10.0px">
            For the nine months, revenue declined 21.8 percent with a 10.2
            percent operating income margin.
          </li>
        </ul>
      </li>
      <li style="margin-bottom: 10.0px">
        <u><i>Supply Chain Services&#8217;</i></u> revenue for the third
        quarter declined 2.5 percent year-over-year with a 9.0 percent
        operating margin or 46 basis points improvement over 2014. Supply
        Chain Services continues to show strong operating income margins with
        a 27 basis point sequential improvement.

        <ul>
          <li style="margin-bottom: 10.0px">
            For the nine months, revenue was up 2.9 percent with a 8.6 percent
            operating income margin
          </li>
        </ul>
      </li>
    </ul>
    <p>
      <b>Non-GAAP Financial Measures</b>
    </p>
    <p>
      DXP supplements reporting of net income (loss) with non-GAAP
      measurements, including adjusted EBITDA, EBITDA and free cash flow. This
      supplemental information should not be considered in isolation or as a
      substitute for the GAAP measurements.&#160;Additional information regarding
      EBITDA referred to in this press release is included below under
      &quot;--Reconciliation of Non-GAAP Measures.&quot;
    </p>
    <p>
      <b>About DXP Enterprises, Inc.</b>
    </p>
    <p>
      DXP Enterprises, Inc. is a leading products and service distributor that
      adds value and total cost savings solutions to industrial customers
      throughout the United States, Canada, Mexico and Dubai. DXP provides
      innovative pumping solutions, supply chain services and maintenance,
      repair, operating and production (&quot;MROP&quot;) services that emphasize and
      utilize DXP&#8217;s vast product knowledge and technical expertise in rotating
      equipment, bearings, power transmission, metal working, industrial
      supplies and safety products and services. DXP's breadth of MROP
      products and service solutions allows DXP to be flexible and
      customer-driven, creating competitive advantages for our customers.
      DXP&#8217;s business segments include Service Centers, Innovative Pumping
      Solutions and Supply Chain Services. For more information, go to <u>www.dxpe.com</u>.
    </p>
    <p>
      <i>The Private Securities Litigation Reform Act of 1995 provides a
      &#8220;safe-harbor&#8221; 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&#8217;s filings with the Securities and Exchange Commission.</i>
    </p>
    <div style="margin-left: 0pt; margin-bottom: 10pt; margin-right: 0pt; width: 100%; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-size: 8pt; font-family: Times New Roman; margin-bottom: 10.0px; width: 100%">
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" valign="top" colspan="19">
          <b>DXP ENTERPRISES, INC. AND SUBSIDIARIES</b>

          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>CONSOLIDATED STATEMENTS OF OPERATIONS</b>
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            <i>($ thousands, except per share amounts)</i>
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black" colspan="3">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black" colspan="2">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black" colspan="3">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black" colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-color: black" valign="top" colspan="7">
          <b>Three Months Ended</b>

          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>September 30,</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-color: black" valign="top" colspan="7">
          <b>Nine Months Ended</b>

          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>September 30,</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom" colspan="3">
          <b>2015</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom" colspan="2">
          <b>2014</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom" colspan="3">
          <b>2015</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom" colspan="2">
          <b>2014</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Sales
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          303,080
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          387,053
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          968,362
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,117,160
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Cost of sales
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          217,374
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          273,644
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          693,308
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          790,998
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Gross profit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          85,706
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          113,409
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          275,054
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          326,162
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Selling, general and administrative expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          75,082
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          82,611
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          232,336
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          246,818
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Impairment expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          58,888
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          58,888
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          B27 settlement
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          7,348
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          7,348
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black" colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Operating income (loss)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (55,612
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          30,798
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (23,518
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          79,344
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Other expense (income), net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          327
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          10
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (67
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Interest expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          2,630
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          3,295
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          7,905
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          9,868
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Income (loss) before income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (58,569
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          27,493
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (31,356
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          69,475
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Provision for income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          (5,885
        </td>
        <td style="border-bottom-style: solid; text-align: left; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          10,504
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          4,510
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          26,639
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Net income (loss)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (52,684
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          16,989
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (35,866
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          42,836
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Less: Net income (loss) attributable to non-controlling interest
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          (249
        </td>
        <td style="border-bottom-style: solid; text-align: left; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          (249
        </td>
        <td style="border-bottom-style: solid; text-align: left; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          -
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Net income (loss) attributable to DXP Enterprises, Inc.
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (52,435
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          16,989
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (35,617
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          42,836
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Preferred stock dividend
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          23
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          23
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          68
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          68
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="top">
          Net income (loss) attributable to common shareholders
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            $
          </p>
        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (52,458
          </p>
        </td>
        <td style="border-bottom-style: double; text-align: left; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            )
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            $
          </p>
        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            16,966
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            $
          </p>
        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (35,685
          </p>
        </td>
        <td style="border-bottom-style: double; text-align: left; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            )
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            $
          </p>
        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            42,768
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="top">
          Diluted earnings (loss) per share attributable to DXP Enterprises,
          Inc.
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          $
        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          (3.64
        </td>
        <td style="border-bottom-style: double; text-align: left; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          $
        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          1.10
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          $
        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          (2.48
        </td>
        <td style="border-bottom-style: double; text-align: left; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          $
        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          2.76
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Weighted average common shares and common equivalent shares
            outstanding
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; border-bottom-width: 2.25pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            14,422
          </p>
        </td>
        <td style="border-bottom-style: double; border-bottom-width: 2.25pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; border-bottom-width: 2.25pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            15,496
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; border-bottom-width: 2.25pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            14,394
          </p>
        </td>
        <td style="border-bottom-style: double; border-bottom-width: 2.25pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; border-bottom-width: 2.25pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            15,536
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-left: 0pt; margin-bottom: 10pt; margin-right: 0pt; width: 100%; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-size: 8pt; font-family: Times New Roman; margin-bottom: 10.0px; width: 100%">
      <tr>
        <td colspan="15">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="11">

        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" valign="top" colspan="28">
          <b>SEGMENT DATA</b>

          <p style="margin-bottom: 0px; margin-top: 0px">
            <i>($ thousands)</i>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black" colspan="11">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black" colspan="11">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <p>

          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-color: black" valign="top" colspan="11">
          <b>Three Months ended September 30,</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-color: black" valign="top" colspan="11">
          <b>Nine Months ended September 30,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-color: black" valign="bottom" colspan="2">
          <b>Service</b>

          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Centers</b>
          </p>
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-color: black" valign="bottom" colspan="2">
          <b>IPS</b>
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-color: black" valign="bottom" colspan="2">
          <b>SCS</b>
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-color: black" valign="bottom" colspan="2">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Total
          </p>
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px; padding-bottom: 2.0px" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-color: black" valign="bottom" colspan="2">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Service</b>
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Centers</b>
          </p>
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-color: black" valign="bottom" colspan="2">
          <b>IPS</b>
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-color: black" valign="bottom" colspan="2">
          <b>SCS</b>
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-color: black" valign="bottom" colspan="2">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Total
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          <b>2015</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="middle">
          Sales
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          199,306
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          61,458
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          42,316
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          303,080
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          639,212
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          202,627
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          126,523
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          968,362
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="middle">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Operating income for<br>reportable segments
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          17,957
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          6,139
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,821
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          27,917
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          61,943
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          20,667
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          10,835
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          93,455
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          <b>2014</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="middle">
          Sales
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          255,041
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          88,614
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          43,398
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          387,053
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          735,104
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          259,070
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          122,986
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,117,160
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="middle">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Operating income for<br>reportable segments
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          29,444
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          14,979
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,721
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          48,144
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          79,356
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          40,328
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          10,424
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          130,108
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-size: 8pt; font-family: Times New Roman; margin-bottom: 10.0px; width: 100%">
      <tr>
        <td colspan="5">
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" valign="top" colspan="18">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Reconciliation of Operating Income for Reportable Segments</b>
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            <i>($ thousands)</i>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-color: black" valign="bottom" colspan="6">
          <b>Three Months Ended</b>

          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>September 30,</b>
          </p>
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-color: black" valign="top" colspan="6">
          <b>Nine Months Ended</b>

          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>September 30,</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom" colspan="3">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>2015</b>
          </p>
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom" colspan="2">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>2014</b>
          </p>
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom" colspan="3">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>2015</b>
          </p>
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom" colspan="2">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>2014</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Operating income for reportable segments
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          27,917
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          48,144
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          93,455
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          130,108
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <i>Adjustment for:</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          B27 Settlement
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          7,348
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          7,348
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Impairment
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          58,888
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          58,888
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Amortization of intangibles
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,240
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,658
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          15,907
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          16,895
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 15.0px; padding-bottom: 2.0px" valign="top">
          Corporate expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          12,053
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            11,688
          </p>
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          34,830
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            33,869
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Total operating income (loss)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (55,612
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          30,798
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (23,518
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          79,344
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Interest expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,630
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,295
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          7,905
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          9,868
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Other expense (income), net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          327
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          10
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          (67
        </td>
        <td style="border-bottom-style: solid; text-align: left; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          1
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="top">
          Income (loss) before income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          $
        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          (58,569
        </td>
        <td style="border-bottom-style: double; text-align: left; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          $
        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          27,493
        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          $
        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          (31,356
        </td>
        <td style="border-bottom-style: double; text-align: left; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          $
        </td>
        <td style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          69,475
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-left: 0pt; margin-bottom: 10pt; margin-right: 0pt; width: 100%; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-size: 8pt; font-family: Times New Roman; margin-bottom: 10.0px; width: 100%">
      <tr>
        <td colspan="17">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" valign="top" colspan="17">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Unaudited Reconciliation of Non-GAAP Financial Information</b>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="17">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top" colspan="17">
          <p style="margin-bottom: 0px; margin-top: 0px">
            The following table is a reconciliation of EBITDA**, a non-GAAP
            financial measure, to income before income taxes, calculated<br>and
            reported in accordance with U.S. GAAP <i>($ thousands)</i>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="6">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="6">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-color: black" valign="top" colspan="6">
          <b>Three Months Ended</b>

          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>September 30,</b>
          </p>
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-color: black" valign="top" colspan="6">
          <b>Nine Months Ended</b>

          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>September 30,</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom" colspan="3">
          <b>2015</b>
        </td>
        <td>
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom" colspan="2">
          <b>2014</b>
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom" colspan="3">
          <b>2015</b>
        </td>
        <td>
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom" colspan="2">
          <b>2014</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Income (loss) before income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (58,569
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          27,493
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (31,356
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          69,475
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Impairment expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          58,888
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          58,888
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Plus: interest expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,630
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,295
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          7,905
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          9,868
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Plus: depreciation and amortization
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          8,329
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          9,000
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          24,915
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          26,314
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Non-controlling interest, before tax
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          380
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          380
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          -
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <b>EBITDA</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <b>11,658</b>
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <b>39,788</b>
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <b>60,732</b>
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <b>105,657</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          B27 Settlement
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          7,348
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          7,348
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Legal fees
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          1,000
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          1,000
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          -
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <b>Adjusted EBITDA</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <b>20,006</b>
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <b>39,788</b>
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <b>69,080</b>
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black" valign="bottom">
          <b>105,657</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top" colspan="17">
          <p style="margin-bottom: 0px; margin-top: 0px">
            **EBITDA &#8211; earnings before impairments, interest, taxes,
            depreciation and amortization
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p>
      CONTACT:<br>DXP Enterprises, Inc.<br>Mac McConnell, 713-996-4700<br>Senior
      Vice President, Finance &amp; CFO<br><u>www.dxpe.com</u>
    </p>
    <p style="text-align: right">

    </p>
  </body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
