<SEC-DOCUMENT>0001157523-17-001566.txt : 20170515
<SEC-HEADER>0001157523-17-001566.hdr.sgml : 20170515
<ACCEPTANCE-DATETIME>20170515160033
ACCESSION NUMBER:		0001157523-17-001566
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20170515
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20170515
DATE AS OF CHANGE:		20170515

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:		17844073

	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>a51559693.htm
<DESCRIPTION>DXP ENTERPRISES, INC. 8-K
<TEXT>
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      <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><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;<font style="font-size: 10pt; font-family: Times New Roman">May
      15, 2017</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 style="width: 100%; margin-bottom: 10.0px; font-family: Times New Roman; font-size: 10pt" cellspacing="0">
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          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Texas</b>
          </p>
        </td>
        <td style="white-space: nowrap; width: 50%; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-style: solid" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>76-0509661</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 50%; text-align: center; padding-left: 0.0px" valign="top">
          (State or other jurisdiction of incorporation or organization)
        </td>
        <td style="width: 50%; text-align: center; padding-left: 0.0px" valign="top">
          (I.R.S. Employer Identification Number)
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 50%">
          &#160;
        </td>
      </tr>
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        <td style="width: 50%; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; 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="white-space: nowrap; width: 50%; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; 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="width: 50%; text-align: center; padding-left: 0.0px" valign="top">
          (Address of principal executive offices)
        </td>
        <td style="width: 50%; text-align: center; padding-left: 0.0px" 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="width: 100%; margin-right: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-left: 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="color: black; height: 1.5pt">

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

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

    </p>
    <p style="text-align: justify">
      <b>ITEM 2.02 RESULTS&#160;OF&#160;OPERATIONS&#160;AND&#160;FINANCIAL&#160;CONDITION</b>
    </p>
    <p style="text-align: justify">
      The following information is furnished pursuant to Regulation FD.
    </p>
    <p style="text-align: justify">
      On May 15, 2017, DXP Enterprises, Inc., issued a press release
      announcing financial results for the quarter ended March 31, 2017 and a
      conference call in connection therewith. 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)&#160;<i>Exhibits.</i>
    </p>
    <p style="white-space: nowrap">
      99.1&#160;&#160;&#160;&#160;&#160;&#160;Press Release dated May 15, 2017 announcing the earnings
      results for the&#160;first quarter ended March 31, 2017.
    </p>
    <p style="text-align: justify">

    </p>
    <div style="width: 100%; margin-right: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-left: 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="color: black; height: 1.5pt">

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

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

    </p>
    <p style="text-align: center">
      SIGNATURES
    </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-indent: 30.0px; text-align: left">

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

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" 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="width: 74%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 6%; text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            By:
          </p>
        </td>
        <td style="width: 20%; text-align: left; padding-left: 0.0px" 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 style="text-align: left; padding-left: 10.0px" colspan="2" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Mac McConnell
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

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

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

        </td>
      </tr>
      <tr>
        <td style="width: 6%; text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Dated:
          </p>
        </td>
        <td style="width: 20%; text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            May 15, 2017
          </p>
        </td>
        <td style="width: 74%">

        </td>
      </tr>
    </table>
    </div>
    <div style="width: 100%; margin-right: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-left: 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="color: black; height: 1.5pt">

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

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

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

    </p>
    <p style="text-align: center">
      INDEX TO EXHIBITS
    </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.
    </p>
<div style="text-align:left">
    <table style="width: 100%; margin-bottom: 10.0px; font-family: Times New Roman; font-size: 10pt" cellspacing="0">
      <tr>
        <td style="width: 50%; text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><i><b>Exhibit No.</b></i></u>
          </p>
        </td>
        <td style="width: 50%; text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><i><b>Description</b></i></u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="white-space: nowrap; width: 50%; padding-right: 0.0px; text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            99.1
          </p>
        </td>
        <td style="width: 50%; text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Press Release dated May 15, 2017 announcing the earnings results
            for the quarter ended March 31, 2017.
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a51559693ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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    <title></title>
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    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>DXP
      Enterprises Reports 2017 First Quarter Results</b></font>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-size: 12pt; font-family: Times New Roman"><b>$238.5
        million in sales, a sequential increase of 7.3 percent</b></font></i>
      </li>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-size: 12pt; font-family: Times New Roman"><b>GAAP
        diluted EPS of $0.17</b></font></i>
      </li>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-size: 12pt; font-family: Times New Roman"><b>$15.5
        million in earnings before interest, taxes, depreciation, and
        amortization (&#8220;EBITDA&#8221;), a sequential increase of 4.6 percent,
        adjusting for the one-time sale of Vertex</b></font></i>
      </li>
    </ul>
    <p>
      HOUSTON--(BUSINESS WIRE)--May 15, 2017--<b>DXP Enterprises, Inc.
      (NASDAQ: DXPE)</b> today announced financial results for the first
      quarter ended March 31, 2017. The following are results for the three
      months ended March 31, 2017 compared to the three months ended March 31,
      2016 and December 31, 2016, where appropriate. A reconciliation of the
      non-GAAP financial measures is in the back of this press release.
    </p>
    <p>
      <b>DXPE 2017 First Quarter Financial Highlights:</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Sales increased 7.3 percent to $238.5 million, compared to $222.3
        million for the fourth quarter of 2016 and $253.6 million for the
        first quarter of 2016, a decrease of 5.9 percent compared to the first
        quarter of 2016. Adjusting for the sale of Vertex, sales decreased 3.0
        percent.
      </li>
      <li style="margin-bottom: 10.0px">
        Earnings per diluted share was $0.17 based upon 18.2 million diluted
        shares, compared to $0.42 per share in the fourth quarter of 2016,
        based on 17.4 million diluted shares. In the first quarter of 2016,
        the loss per diluted share was $0.35 on 14.5 million shares.
      </li>
      <li style="margin-bottom: 10.0px">
        Earnings before interest, taxes, depreciation and amortization
        (EBITDA) was $15.5 million, or 6.5 percent of sales, compared to $20.4
        million for the fourth quarter of 2016, a decrease of 24.2 percent.
        The decrease includes a $5.6 million gain on the sale of Vertex.
        Excluding the gain, EBITDA for the fourth quarter was $14.8 million or
        6.7 percent of sales. Adjusting for the one-time sale of Vertex, first
        quarter 2016 EBITDA sequentially increased 4.6 percent.
      </li>
    </ul>
    <p>
      David R. Little, Chairman and CEO remarked, &#8220;Our first quarter results
      reflect momentum building in our business. We are pleased with DXP&#8217;s
      first quarter sales results which included sequential sales and
      operating income growth across all three business segments. Total DXP
      EBITDA also increased sequentially, adjusting for the one-time sale of
      Vertex. We are encouraged by the sequential increases and believe we
      could be in the early stages of a cyclical recovery. Thank you to all
      our customers and DXPeople for the support and effort. DXP&#8217;s first
      quarter 2017 sales were $238.5 million, or a 7.3 percent increase over
      the fourth quarter. DXP&#8217;s industrial end markets, which is 51 percent of
      our business, appears to have found some legs and shows signs of
      positive upward movement. Oil and gas, which is the remaining 49 percent
      of DXP, found a bottom in the third quarter of last year and is showing
      signs of gradual improvement. During the first quarter, sales were
      $148.7 million for Service Centers, $49.1 million for Innovative Pumping
      Solutions and $40.8 million for Supply Chain Services. Business segment
      operating income increased 13 percent sequentially and 57 percent
      year-over-year.
    </p>
    <p>
      We continue to anticipate a better fiscal year 2017. As such, we remain
      focused on improving our ability to serve existing and new customers,
      continuing to focus on enhancing and improving our operational
      execution, investing in products and people and strategically aligning
      DXP for the future.&#8221;
    </p>
    <p>
      Mac McConnell, CFO added, &#8220;Our first quarter sequential sales growth of
      7.3 percent was great to see after experiencing continual declines since
      the fourth quarter of 2014. We turned this into a 9 percent sequential
      increase in operating income during a period where DXP has seasonally
      higher expenses. Total debt outstanding as of March 31, 2017 was $228.0
      million. As discussed during our Q4 earnings call, we look forward to
      and anticipate refinancing our debt structure in the near future. This
      should provide DXP with more flexibility as we move towards growth. We
      are excited by the tone at DXP and anticipate that this should begin to
      show in our financial results.&#8221;
    </p>
    <p>
      We will host a conference call regarding 2017 first quarter results on
      the Company&#8217;s website (<u>www.dxpe.com</u>) Monday, May 15, 2017
      at 4 pm 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>.
    </p>
    <div style="width: 100%; margin-right: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-left: 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="color: black; height: 1.5pt">

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

        </div>
      </div>
    </div>
    <p>
      <b>DXP Enterprises 2017 first quarter business segment results:</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        <u><i>Service Centers&#8217;</i></u> revenue for the first quarter was
        $148.7 million, a 6.5 percent sequential increase and decline of 11.2
        percent over the same period in 2016. Operating income margin was 9.0
        percent, a 27 basis point improvement over the fourth quarter of 2016.
      </li>
      <li style="margin-bottom: 10.0px">
        <u><i>Innovative Pumping Solutions&#8217;</i></u> revenue for the
        first quarter was $49.1 million, a 7.8 percent sequential increase and
        3.4 percent increase year-over-year with a 7.2 percent operating
        income margin, a 178 basis point improvement from the fourth quarter.
      </li>
      <li style="margin-bottom: 10.0px">
        <u><i>Supply Chain Services&#8217;</i></u> revenue for the first
        quarter was $40.8 million, a 9.8 percent sequential increase and 5.5
        percent increase year-over-year with a 10.0 percent operating income
        margin.
      </li>
    </ul>
    <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;--Unaudited Reconciliation of Non-GAAP Financial Information.&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="width: 100%; margin-right: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-left: 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="color: black; height: 1.5pt">

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

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="width: 100%; margin-bottom: 10.0px; font-family: Times New Roman; font-size: 8pt" cellspacing="0">
      <tr>
        <td colspan="14">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="14" valign="top">
          <b>DXP ENTERPRISES, INC. AND SUBSIDIARIES</b>

          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>UNAUDITED 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="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" valign="top">

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-style: solid" colspan="9" valign="top">
          <b>Three Months Ended</b>

          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>March 31,</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-style: solid" colspan="3" valign="bottom">
          <b>2017</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-style: solid" colspan="3" valign="bottom">
          <b>2016</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Sales
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          238,527
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          253,561
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          174,012
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          184,743
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Gross profit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          64,515
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          68,818
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" valign="top">
          Selling, general and administrative expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          56,279
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          70,820
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#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>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          8,236
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          (2,002
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: left; padding-left: 0.0px" valign="bottom">
          )
        </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>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          (228
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: left; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          (155
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: left; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" valign="top">
          Interest expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          3,653
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          3,409
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#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>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          4,811
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          (5,256
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: left; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" valign="top">
          Provision (benefit) for income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          1,817
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          (8
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: left; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </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>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          2,994
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          (5,248
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: left; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" valign="top">
          Less: Net income (loss) attributable to non-controlling interest
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          (139
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: left; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          (136
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: left; padding-left: 0.0px; border-bottom-style: solid" 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>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          3,133
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          (5,112
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: left; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" valign="top">
          Preferred stock dividend
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          23
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" valign="top">
          Net income (loss) attributable to common shareholders
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            $
          </p>
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            3,110
          </p>
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            $
          </p>
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (5,135
          </p>
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: left; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            )
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" valign="top">
          Diluted earnings (loss) per share attributable to DXP Enterprises,
          Inc.
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          0.17
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          (0.35
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: left; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Weighted average common shares and common equivalent shares
            outstanding
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            18,249
          </p>
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            14,486
          </p>
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="width: 100%; margin-right: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-left: 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="color: black; height: 1.5pt">

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

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

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

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

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

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

        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="21" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>SEGMENT DATA</b>
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            <i>($ thousands, unaudited)</i>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-style: solid" colspan="6" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Sales</b><br><b> by Segment</b><br><b> Three Months Ended</b><br><b>
            March 31,</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-style: solid" colspan="9" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Operating Income</b><br><b> by Segment</b><br><b> Three Months
            Ended</b><br><b> March 31,</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-style: solid" colspan="2" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>2017</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-style: solid" colspan="2" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>2016</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-style: solid" colspan="3" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>2017</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-style: solid" colspan="3" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>2016</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Service Centers
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          148,713
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          167,502
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          13,340
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          9,536
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Innovative Pumping Solutions
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          49,058
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          47,431
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          3,510
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          40,756
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          38,628
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          4,058
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          3,480
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" valign="top">
          <b>Total DXP</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <b>$</b>
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <b>238,527</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <b>$</b>
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <b>253,561</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <b>$</b>
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <b>20,908</b>
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <b>$</b>
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <b>13,322</b>
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="21">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="21" valign="top">
          <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>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-style: solid" colspan="9" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Three Months Ended</b><br><b> March 31,</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-style: solid" colspan="3" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>2017</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-style: solid" colspan="3" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>2016</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 colspan="2">

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          20,908
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          13,322
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <i>Adjustment for:</i>
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 5.0px" valign="top">
          Amortization of intangibles
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          4,316
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          4,528
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; text-align: left; padding-left: 5.0px" valign="top">
          Corporate expense
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          8,356
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          10,796
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Total operating income (loss)
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          8,236
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          (2,002
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: left; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Interest expense
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          3,653
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          3,409
        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          (228
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: left; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          (155
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: left; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" valign="top">
          <b>Income (loss) before income taxes</b>
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <b>$</b>
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <b>4,811</b>
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <b>$</b>
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <b>(5,256</b>
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; text-align: left; padding-left: 0.0px; border-bottom-style: double" valign="bottom">
          <b>)</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </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>
    </table>
    </div>
    <div style="width: 100%; margin-right: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-left: 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="color: black; height: 1.5pt">

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

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

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-style: solid" colspan="7" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Three Months</b><br><b> Ended</b><br><b> March 31,</b>
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-style: solid" colspan="2" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Three Months</b><br><b> Ended</b><br><b> December 31,</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-style: solid" colspan="2" valign="bottom">
          <b>2017</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-style: solid" colspan="3" valign="bottom">
          <b>2016</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: center; padding-left: 0.0px; border-bottom-style: solid" colspan="2" valign="bottom">
          <b>2016</b>
        </td>
      </tr>
      <tr>
        <td>

        </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: 30.0px" valign="top">
          Income (loss) before income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          4,811
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          (5,256
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: left; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          9,195
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 30.0px" valign="top">
          Plus: interest expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          3,653
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          3,409
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          3,866
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 30.0px" valign="top">
          Plus: depreciation and amortization
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          7,015
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          7,546
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          7,367
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid" colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; text-align: left; padding-left: 30.0px" valign="top">
          EBITDA
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          15,479
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          5,699
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          20,428
        </td>
      </tr>
      <tr>
        <td>

        </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: 30.0px" valign="top">
          Plus: NCI before tax
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          224
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          219
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          400
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 30.0px" valign="top">
          Plus: Stock compensation expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          533
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          848
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; text-align: right; padding-left: 0.0px" valign="bottom">
          1,636
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid" colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; text-align: left; padding-left: 30.0px" valign="top">
          Adjusted EBITDA
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          16,236
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          6,766
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; text-align: right; padding-left: 0.0px; border-bottom-style: solid" valign="bottom">
          22,464
        </td>
      </tr>
      <tr>
        <td>

        </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: 30.0px" colspan="14" valign="top">
          **Adjusted 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>
    </p>
    <p style="text-align: right">

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