<SEC-DOCUMENT>0001157523-16-006905.txt : 20161019
<SEC-HEADER>0001157523-16-006905.hdr.sgml : 20161019
<ACCEPTANCE-DATETIME>20161019161217
ACCESSION NUMBER:		0001157523-16-006905
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20161019
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20161019
DATE AS OF CHANGE:		20161019

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:		161942704

	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>a51442716.htm
<DESCRIPTION>DXP ENTERPRISES, INC. 8-K
<TEXT>
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    <p style="text-align: center">
      <font style="font-size: 14pt">UNITED STATES SECURITIES AND EXCHANGE
      COMMISSION</font><font style="font-size: 14pt"><br style="font-size: 14pt"></font><font style="font-size: 14pt">Washington,
      D.C. 20549</font><font style="font-size: 14pt"><br style="font-size: 14pt"></font>
    </p>
    <p style="text-align: center">
      <font style="font-size: 14pt"><b>Form 8-K</b></font><br><br>
    </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;October<font style="font-family: Times New Roman; font-size: 10pt">
      19, 2016</font></b><br>
    </p>
    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      <b>Commission file number 0-21513</b><br><br><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="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 10pt">
      <tr>
        <td style="border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-width: 1.0pt; width: 50%; border-bottom-style: solid" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Texas</b>
          </p>
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: center; padding-left: 0.0px; border-bottom-width: 1.0pt; white-space: nowrap; width: 50%; border-bottom-style: solid" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>76-0509661</b>
          </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="border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-width: 1.0pt; width: 50%; border-bottom-style: solid" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>7272 Pinemont, Houston, Texas 77040</b>
          </p>
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: center; padding-left: 0.0px; border-bottom-width: 1.0pt; white-space: nowrap; width: 50%; border-bottom-style: solid" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>(713) 996-4700</b>
          </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">
      _________________________<br><br>
    </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><br>[&#160;&#160;]&#160;&#160;Soliciting material pursuant to Rule
      14a-12 under the Exchange Act (17 CFR 240.14a-12)<br><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><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-bottom: 10pt; margin-left: 0pt; width: 100%; margin-right: 0pt; 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 style="text-align: justify">

    </p>
    <p style="text-align: justify">
      <b>ITEM 2.02 REGULATION FD DISCLOSURE</b>
    </p>
    <p style="text-align: justify">
      The following information is furnished pursuant to Regulation FD.
    </p>
    <p style="text-align: justify">
      On October 19, DXP Enterprises, Inc., issued a press release announcing
      preliminary financial results for the quarter ended September 30, 2016.
      A copy of the release is furnished herewith as Exhibit 99.1, and
      incorporated herein by reference. 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>
      <b>ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS</b>
    </p>
    <p>
      (d) <i>Exhibits.</i>
    </p>
<div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 10pt">
      <tr>
        <td style="padding-right: 0.0px; text-align: left; padding-left: 0.0px; white-space: nowrap; width: 6%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            99.1
          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 94%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Press Release dated October 19, 2016 announcing the preliminary
            earnings results for the third quarter ended September 30, 2016.
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="margin-bottom: 10pt; margin-left: 0pt; width: 100%; margin-right: 0pt; 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">
      <b>SIGNATURES</b>
    </p>
    <p style="text-align: left">
      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 style="text-align: left; text-indent: 30.0px">

    </p>
<div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 10pt">
      <tr>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          <p style="text-align: justify">
            DXP ENTERPRISES, INC.
          </p>
        </td>
        <td style="width: 74%">

        </td>
      </tr>
      <tr>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          <p style="text-align: justify">
            (Registrant)
          </p>
        </td>
        <td style="width: 74%">

        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td style="width: 20%">

        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 74%" valign="top">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; width: 6%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            By:
          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 20%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u>/s/ Mac McConnell</u>
          </p>
        </td>
        <td style="width: 74%">

        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td colspan="2" style="text-align: left; padding-left: 10.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Mac McConnell
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td colspan="2" style="text-align: left; padding-left: 10.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Senior Vice President/Finance and Chief Financial Officer
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 20%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 74%">

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; width: 6%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Date:
          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 20%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            October 19, 2016
          </p>
        </td>
        <td style="width: 74%">

        </td>
      </tr>
    </table>
    </div>
    <p>

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

    </p>
    <p style="text-align: center">
      <b>INDEX TO EXHIBITS</b>
    </p>
    <p style="text-align: left">
      <b>Introductory Note: </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.<br>
    </p>
<div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 10pt">
      <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="padding-right: 0.0px; text-align: left; padding-left: 0.0px; white-space: nowrap; width: 15%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            99.1
          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 85%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Press Release dated October 19, 2016 announcing the preliminary
            earnings results for the third quarter ended September 30, 2016.
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a51442716ex991.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 Reports Preliminary Third Quarter Results</b></font>
    </p>
    <p>
      HOUSTON--(BUSINESS WIRE)--October 19, 2016--<b>DXP Enterprises, Inc.
      (NASDAQ: DXPE)</b> today released preliminary unaudited selected
      financial information for its fiscal quarter ended September 30, 2016.
      The information that follows is preliminary and based upon information
      available as of today. DXP expects to release its full fiscal quarter
      results on November 7, 2016.
    </p>
    <p>
      As of the date of this release, DXP has not completed its financial
      close process for the quarter. During the course of that process, the
      Company may identify items that would require it to make adjustments,
      which may be material, to the information presented below. As a result,
      the estimates below constitute forward-looking information and are
      subject to risks and uncertainties, including possible adjustments to
      preliminary operating results.
    </p>
    <p>
      <b>DXP Enterprises 2016 third quarter preliminary financial highlights:</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Sales are anticipated to be between $228.0 million and $231.0 million
        for the third quarter of 2016, compared to $256.2 million for the
        second quarter of 2016, a decrease between 9.8 percent to 11.0
        percent. Compared to sales for the third quarter of 2015 of $303.1
        million, this represents a decrease of between 23.8 percent and 24.8
        percent. The above comparisons include sales from Vertex, which was
        sold on October 3, 2016.
      </li>
      <li style="margin-bottom: 10.0px">
        Gross profit is anticipated to be between $62.0 million and $64.0
        million, for the third quarter 2016, compared to $71.6 million for the
        second quarter of 2016 and $85.7 million in the third quarter of 2015.
      </li>
      <li style="margin-bottom: 10.0px">
        Net income (loss) is anticipated to be between $(500) thousand to $500
        thousand for the third quarter of 2016, compared to $5.1 million for
        the second quarter of 2016 and $(52.4) million in the third quarter of
        2015 which included a $58.9 million non-cash impairment charge.
      </li>
      <li style="margin-bottom: 10.0px">
        Earnings before interest, taxes, depreciation and amortization
        (EBITDA) is anticipated to be between $11.0 million and $13.0 million
        for the third quarter 2016, compared to $16.3 million in the second
        quarter of 2016 and $11.3 million in the third quarter of 2015.
      </li>
    </ul>
    <p>
      <u><b>Preliminary Unaudited Financial Disclosures</b></u>
    </p>
    <p>
      The sales decline in the third quarter is mainly attributable to
      softness in July sales. This was driven by bookings and shipments
      softening around the days before and after the July 4<sup>th</sup>
      holiday across all three business segments.
    </p>
    <p>
      David R. Little, Chairman and CEO remarked, &#8220;Our third quarter
      performance reflects a departure from our recent trends, which was
      primarily associated with lagging sales during the month of July. August
      and September sales were more in line with average year-to-date monthly
      performance. That said, we do expect seasonality which can be
      exacerbated by the upcoming holiday season, the elections, seasonal
      customer facility shutdowns as well as the recent sale of Vertex. We are
      pleased with our cost containment measures year-to-date. Free cash flow
      performance, cash flow from operations less capital expenditures,
      continues to be in line with expectations and, along with our recent
      announcement regarding Vertex, continues to provide DXP with resiliency.
      We look forward to discussing more detailed financial results on our
      third quarter earnings call.&#8221;
    </p>
    <p>
      <u><b>Balance Sheet and Liquidity</b></u>
    </p>
    <p>
      The Company estimates cash and cash equivalents to be approximately $3.4
      million as of September 30, 2016. Total debt is expected to be
      approximately $319.3 million as of September 30, 2016, which includes
      $6.2 million in net proceeds from issuance of 238,858 shares of common
      stock, during the quarter. Compared to the second quarter, debt declined
      by approximately $28.4 million during the third quarter. After including
      the payoff of debt associated with the sale of Vertex, a non-core master
      distributor of industrial fasteners, announced on October 4, 2016, total
      debt was approximately $286.3 million as of October 14, 2016.
    </p>
    <div style="margin-bottom: 10pt; margin-left: 0pt; width: 100%; margin-right: 0pt; 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>
      Mac McConnell, CFO added, &#8220;We have a goal of continuing to reduce the
      amount outstanding under our credit facility and to improve terms. While
      we are pleased with our debt reduction year-to-date, we intend to, from
      time to time, opportunistically access the equity or debt capital
      markets, sell non-core assets, and engage in prudent liability or
      capital structure management transactions. Ultimate terms and the
      successful pursuit of these transactions will be, however, dependent in
      part on prevailing economic conditions and other factors, including
      factors beyond our control.&#8221;
    </p>
    <p>
      We currently expect that our final results will be within the ranges
      described above. It is possible, however, that our final results will
      not be within the ranges we currently estimate. We undertake no
      obligation to update or supplement the information provided above until
      we release our results of operations for the three and nine months ended
      September 30, 2016. Hein &amp; Associates LLP, our independent registered
      public accounting firm, has not audited, reviewed, compiled or performed
      any procedures with respect to this financial data.
    </p>
    <p>
      We will host a conference call regarding 2016 third quarter financial
      results on the Company&#8217;s website (<u>www.dxpe.com</u>) Monday,
      November 7, 2016 at 9 a.m. CST. 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>Non-GAAP Financial Measures</b>
    </p>
    <p>
      DXP supplements reporting of net income (loss) with non-GAAP
      measurements, including EBITDA, Adjusted EBITDA and free cash flow. This
      supplemental information should not be considered in isolation or as a
      substitute for the unaudited 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>
      The Company believes EBITDA provides additional information about: (i)
      operating performance, because it assists in comparing the operating
      performance of the business, as it removes the impact of non-cash
      depreciation and amortization expense as well as items not directly
      resulting from core operations such as interest expense and income taxes
      and (ii) the performance and the effectiveness of operational
      strategies. Additionally, EBITDA performance is a component of a measure
      of the Company&#8217;s financial covenants under its credit facility.
      Furthermore, some investors use EBITDA as a supplemental measure to
      evaluate the overall operating performance of companies in the industry.
      Management believes that some investors&#8217; understanding of performance is
      enhanced by including this non-GAAP financial measure as a reasonable
      basis for comparing ongoing results of operations. By providing this
      non-GAAP financial measure, together with a reconciliation from net
      income, the Company believes it is enhancing investors&#8217; understanding of
      the business and results of operations, as well as assisting investors
      in evaluating how well the Company is executing strategic initiatives.
    </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. In some cases, you can identify
      forward-looking statements by terminology such as, but not limited to,
      &#8220;may,&#8221; &#8220;will,&#8221; &#8220;should,&#8221; &#8220;intend,&#8221; &#8220;expect,&#8221; &#8220;plan,&#8221; &#8220;anticipate,&#8221;
      &#8220;believe,&#8221; &#8220;estimate,&#8221; &#8220;predict,&#8221; &#8220;potential,&#8221; &#8220;goal,&#8221; or &#8220;continue&#8221; or
      the negative of such terms or other comparable terminology. For more
      information, review the Company&#8217;s filings with the Securities and
      Exchange Commission.</i>
    </p>
    <div style="margin-bottom: 10pt; margin-left: 0pt; width: 100%; margin-right: 0pt; 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="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 8pt">
      <tr>
        <td colspan="15">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="15" style="text-align: center; padding-left: 0.0px" valign="top">
          <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)</i>
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            <i>(unaudited)</i>
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="7">

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

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="12" style="border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="top">
          <b>Three Months </b>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="7" style="border-bottom-color: black; padding-right: 0.0px; text-align: center; padding-left: 0.0px; border-bottom-width: 1.0pt; white-space: nowrap; border-bottom-style: solid" valign="bottom">
          <b>2016</b>
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" style="border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="top">
          <b>Low</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="2" style="border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="top">
          <b>High</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" style="border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="top">
          <b>Actual</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">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" valign="top">
          Sales
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          228,000
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          231,000
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          303,080
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </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">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" valign="top">
          Gross Profit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          62,000
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          64,000
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          85,706
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </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">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Net Income (loss) attributable to DXPE
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; text-align: right; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; text-align: right; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          (500
        </td>
        <td style="padding-right: 0.0px; text-align: left; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; text-align: right; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; text-align: right; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          500
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; text-align: right; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; text-align: right; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          (52,435
        </td>
        <td style="padding-right: 0.0px; text-align: left; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          )
        </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">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Interest expense; Provision for income taxes; Impairments; and
          Depreciation and amortization
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; text-align: right; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          11,500
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; text-align: right; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          12,500
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; text-align: right; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          63,713
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td colspan="2" style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td colspan="3" style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" valign="top">
          EBITDA
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          11,000
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          13,000
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          11,278
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </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">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="15" style="text-align: left; padding-left: 0.0px" valign="top">
          **EBITDA &#8211; earnings before impairments, interest, taxes,
          depreciation and amortization
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 8pt">
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="12" style="border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="top">
          <b>Nine Months </b>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="7" style="border-bottom-color: black; padding-right: 0.0px; text-align: center; padding-left: 0.0px; border-bottom-width: 1.0pt; white-space: nowrap; border-bottom-style: solid" valign="bottom">
          <b>2016</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3" style="border-bottom-color: black; padding-right: 0.0px; text-align: center; padding-left: 0.0px; border-bottom-width: 1.0pt; white-space: nowrap; border-bottom-style: solid" valign="bottom">
          <b>2015</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" style="border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="top">
          <b>Low</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="2" style="border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="top">
          <b>High</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" style="border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="top">
          <b>Actual</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">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" valign="top">
          Sales
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          737,776
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          740,776
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          968,362
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </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">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" valign="top">
          Gross Profit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          202,421
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          204,421
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          275,054
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </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">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Net Income (loss) attributable to DXPE
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; text-align: right; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; text-align: right; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          (442
        </td>
        <td style="padding-right: 0.0px; text-align: left; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; text-align: right; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; text-align: right; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          558
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; text-align: right; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; text-align: right; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          (35,617
        </td>
        <td style="padding-right: 0.0px; text-align: left; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          )
        </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">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Interest expense; Provision for income taxes; Impairments; and
          Depreciation and amortization
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; text-align: right; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          33,470
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; text-align: right; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          34,470
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; text-align: right; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          95,969
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td colspan="2" style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td colspan="3" style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" valign="top">
          EBITDA
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          33,028
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          35,028
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; padding-right: 0.0px; text-align: right; padding-left: 0.0px; border-bottom-width: 2.25pt; white-space: nowrap; border-bottom-style: double" valign="bottom">
          60,352
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </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">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="15" style="text-align: left; padding-left: 0.0px" valign="top">
          **EBITDA &#8211; earnings before impairments, interest, taxes,
          depreciation and amortization
        </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><br>
    </p>
  </body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
