<SEC-DOCUMENT>0001157523-18-000598.txt : 20180321
<SEC-HEADER>0001157523-18-000598.hdr.sgml : 20180321
<ACCEPTANCE-DATETIME>20180320212135
ACCESSION NUMBER:		0001157523-18-000598
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20180320
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20180321
DATE AS OF CHANGE:		20180320

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:		18703203

	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>a51776623.htm
<DESCRIPTION>DXP ENTERPRISES, INC. 8-K
<TEXT>
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    <p style="text-align: center">

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    <p style="text-align: center">
      <font style="font-size: 12pt">UNITED STATES SECURITIES AND EXCHANGE
      COMMISSION</font><font style="font-size: 12pt"><br style="font-size: 12pt"></font><font style="font-size: 12pt">Washington,
      D.C. 20549</font><br><font style="font-size: 14pt"><br style="font-size: 14pt"></font><font style="font-size: 14pt"><b>Form
      8-K</b></font><br><br><b>CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
      OF THE SECURITIES EXCHANGE ACT OF 1934</b><br><b>Date of Report (date of
      earliest event reported):&#160;&#160;<font style="font-family: Times New Roman; font-size: 10pt">March
      20, 2018</font></b><br><br><br><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="font-family: Times New Roman; font-size: 10pt; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; width: 50%; padding-left: 0.0px; border-bottom-width: 1.0pt" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Texas</b>
          </p>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; width: 50%; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>76-0509661</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; width: 50%; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (State or other jurisdiction of incorporation or organization)
          </p>
        </td>
        <td style="text-align: center; width: 50%; 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>
      <tr>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; width: 50%; padding-left: 0.0px; border-bottom-width: 1.0pt" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>7272 Pinemont, Houston, Texas 77040</b>
          </p>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; width: 50%; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>(713) 996-4700</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; width: 50%; padding-left: 0.0px" valign="top">
          (Address of principal executive offices)
        </td>
        <td style="text-align: center; width: 50%; padding-left: 0.0px" valign="top">
          Registrant&#8217;s telephone number, including area code.
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <br>
      _________________________
    </p>
    <p>
      <br>
      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">
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font><font style="font-size: 12pt">&#160;&#160;</font>Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
    </p>
    <p style="white-space: nowrap">
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font><font style="font-size: 12pt">&#160;&#160;</font>Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
    </p>
    <p style="white-space: nowrap">
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font><font style="font-size: 12pt">&#160;&#160;</font>Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
    </p>
    <p style="white-space: nowrap">
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font><font style="font-size: 12pt">&#160;&#160;</font>Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))
    </p>
    <p>
      Indicate by check mark whether the registrant is an emerging growth
      company as defined in Rule 405 of the Securities Act of 1933 (&#167;230.405
      of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934
      (&#167;240.12b-2 of this chapter).&#160;&#160;&#160;
    </p>
    <p style="text-align: right">
      Emerging growth company&#160;&#160;&#160;&#160;<font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
    </p>
    <p>
      If an emerging growth company, indicate by check mark if the registrant
      has elected not to use the extended transition period for complying with
      any new or revised financial accounting standards provided pursuant to
      Section 13(a) of the Exchange Act.&#160;&#160;&#160;&#160;<font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
    </p>
    <div style="width: 100%; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt; 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 OF OPERATIONS AND FINANCIAL CONDITION</b>
    </p>
    <p style="text-align: justify">
      The following information is furnished pursuant to Regulation FD.
    </p>
    <p>
      On March 20, 2018, DXP Enterprises, Inc., issued a press release
      announcing financial results for the fourth quarter and fiscal year
      ended December 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 &quot;filed&quot; under the
      Securities Exchange Act of 1934, as amended (the &quot;Exchange Act&quot;) 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
      &quot;Securities Act&quot;), or the Exchange Act.
    </p>
    <p>

    </p>
    <p>
      <b>ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS</b>
    </p>
    <p>
      (d) <i>Exhibits.</i>
    </p>
    <p>
      99.1&#160;&#160;&#160;&#160;&#160;&#160;Press Release dated March 20, 2018 announcing the earnings
      results for the fourth quarter and fiscal year ended December 31, 2017.
    </p>
    <p>

    </p>
    <div style="width: 100%; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt; 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">
      <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 style="font-family: Times New Roman; font-size: 10pt; width: 100%; margin-bottom: 10.0px" 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="text-align: left; width: 74%; padding-left: 0.0px" valign="top">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 6%; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            By:
          </p>
        </td>
        <td style="text-align: left; width: 20%; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u>/s/ Kent Yee</u>
          </p>
        </td>
        <td style="width: 74%">

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

        </td>
        <td style="text-align: left; width: 20%; padding-left: 10.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Kent Yee
          </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-top: 0px; margin-bottom: 0px">
            Senior Vice President/Finance and Chief Financial Officer
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

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

        </td>
        <td style="text-align: left; width: 74%; padding-left: 0.0px" valign="top">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 6%; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Dated:
          </p>
        </td>
        <td style="text-align: left; width: 20%; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            March 20, 2018
          </p>
        </td>
        <td style="width: 74%">

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

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

    </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><br>
    </p>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 10pt; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="text-align: left; width: 20%; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><i><b>Exhibit No.</b></i></u>
          </p>
        </td>
        <td style="text-align: left; width: 80%; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><i><b>Description</b></i></u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 20%; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <a href="a51776623ex99_1.htm">99.1</a>
          </p>
        </td>
        <td style="text-align: left; width: 80%; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <a href="a51776623ex99_1.htm">Press Release dated March 20, 2018
            announcing the earnings results for the fourth quarter and fiscal
            year ended December 31, 2017.</a>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a51776623ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>DXP
      Enterprises Announces Fourth Quarter and Fiscal 2017 Results</b></font>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-family: Times New Roman; font-size: 12pt"><b>Fiscal
        2017 sales of $1.0 billion, up 7.2 percent from fiscal 2016 (excluding
        Vertex)</b></font></i>
      </li>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-family: Times New Roman; font-size: 12pt"><b>Solid
        full year GAAP diluted EPS of $0.93</b></font></i>
      </li>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-family: Times New Roman; font-size: 12pt"><b>$61.7
        million in earnings before interest, taxes, depreciation and
        amortization (&#8220;EBITDA&#8221;)</b></font></i>
      </li>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-family: Times New Roman; font-size: 12pt"><b>Free
        cash flow (&#8220;FCF&#8221;) of $9.7 million, adjusting for the reclassification
        of outstanding checks, FCF for fiscal 2017 was $26.8 million</b></font></i>
      </li>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-family: Times New Roman; font-size: 12pt"><b>Closed
        on new $85 million Asset Based Revolving Credit Facility and $250
        million Senior Secured Term Loan B</b></font></i>
      </li>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-family: Times New Roman; font-size: 12pt"><b>Net
        debt of $226.5 million with $25.6 million in cash on the balance sheet</b></font></i>
      </li>
    </ul>
    <p>
      HOUSTON--(BUSINESS WIRE)--March 20, 2018--<b>DXP Enterprises, Inc.
      (NASDAQ: DXPE)</b> today announced financial results for the fourth
      quarter ended December 31, 2017. The following are results for the three
      and twelve months ended December 31, 2017, compared to the three and
      twelve months ended December 31, 2016. A reconciliation of the non-GAAP
      financial measures can be found in the back of this press release.
    </p>
    <p>
      <b>Fourth Quarter 2017 financial highlights:</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Sales were $265.6 million for the fourth quarter of 2017, an increase
        of 5.4 percent from the third quarter and an increase of 19.5 percent
        compared to $222.3 million for the fourth quarter of 2016.
      </li>
      <li style="margin-bottom: 10.0px">
        Earnings per diluted share for the fourth quarter was $0.36 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, which included
        the $5.6 million gain on the sale of Vertex.
      </li>
      <li style="margin-bottom: 10.0px">
        Earnings before interest, taxes, depreciation and amortization
        (EBITDA) for the fourth quarter was $15.8 million compared to $13.5
        million for the third quarter of 2017, an increase of 17.1 percent.
        EBITDA as a percentage of sales was 6.0 percent and 5.4 percent for
        the fourth and third quarter, respectively, a 59 basis point
        improvement.
      </li>
      <li style="margin-bottom: 10.0px">
        Free cash flow (cash flow from operating activities less capital
        expenditures) for the fourth quarter was $3.4 million or 21.3 percent
        of EBITDA.
      </li>
    </ul>
    <p>
      <b>Fiscal Year 2017 financial highlights:</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Sales were $1.0 billion for fiscal year 2017, compared to $962.1
        million for fiscal year 2016, an increase of 4.6 percent. Adjusting
        for the divestiture of Vertex in October of 2016 or $22.7 million in
        sales, organic sales increased 7.2 percent.
      </li>
      <li style="margin-bottom: 10.0px">
        Gross profit was $271.6 million, or 27.0 percent of sales for the
        fiscal year 2017, compared to $264.8 million, or 27.5 percent of sales
        for the fiscal year 2016.
      </li>
      <li style="margin-bottom: 10.0px">
        Selling, general and administrative (SG&amp;A) expenses were $238.1
        million, or 23.7 percent of sales for fiscal 2017, compared to $245.5
        million, or 25.5 percent of sales for fiscal 2016.
      </li>
      <li style="margin-bottom: 10.0px">
        Earnings per diluted share for the fiscal year 2017 grew 89.8 percent
        to $0.93 based upon 18.2 million diluted shares, compared to $0.49 per
        diluted share in fiscal 2016, based on 15.9 million diluted shares.
      </li>
      <li style="margin-bottom: 10.0px">
        EBITDA was $61.7 million for fiscal 2017, compared to $55.2 million
        for fiscal 2016. EBITDA as a percentage of sales was 6.1 percent and
        5.7 percent in fiscal 2017 and 2016, respectively.
      </li>
      <li style="margin-bottom: 10.0px">
        Free cash flow (cash flow from operating activities less capital
        expenditures) for fiscal 2017 was $9.7 million compared to $43.1
        million for fiscal 2016. Adjusting for the 2017 reclassification of
        outstanding checks (see non-GAAP reconciliation), free cash flow for
        fiscal 2017 would have been $26.8 million.
      </li>
    </ul>
    <div style="width: 100%; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt; 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>Business segment financial highlights:</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        <u><i>Service Centers&#8217;</i></u> revenue for the fiscal year was
        $641.3 million, an increase of 3.3 percent year-over-year with a 9.9
        percent operating income margin.

        <ul>
          <li style="margin-bottom: 10.0px">
            For the fourth quarter, revenue increased 3.8 percent sequentially
            with a 9.6 percent operating income margin.
          </li>
        </ul>
      </li>
      <li style="margin-bottom: 10.0px">
        <u><i>Innovative Pumping Solutions&#8217;</i></u> revenue for the
        fiscal year was $204.0 million, an increase of 9.0 percent
        year-over-year with a 5.6 percent operating income margin.

        <ul>
          <li style="margin-bottom: 10.0px">
            For the fourth quarter, revenue increased 16.6 percent
            sequentially with a 7.3 percent operating income margin.
          </li>
        </ul>
      </li>
      <li style="margin-bottom: 10.0px">
        <u><i>Supply Chain Services&#8217;</i></u> revenue for the fiscal year
        was $161.5 million, an increase of 4.9 percent year-over-year with a
        9.6 percent operating margin.

        <ul>
          <li style="margin-bottom: 10.0px">
            For the fourth quarter, revenue declined 2.1 percent sequentially
            with a 9.4 percent operating income margin.
          </li>
        </ul>
      </li>
    </ul>
    <p>
      David R. Little, Chairman and CEO remarked, &#8220;We closed the year with
      fourth-quarter sales growing 5.4 percent sequentially leading to full
      year results growing 7.2 percent year-over-year, adjusting for the
      divestiture of Vertex. Improved market conditions together with DXP&#8217;s
      ability to execute on key organic initiatives are delivering widespread
      improvements across DXP.
    </p>
    <p>
      I am encouraged with the current state of our company and I have never
      been more confident in our strategy and ability to create shareholder
      and stakeholder value. We are prioritizing investments and focusing on
      DXP having a smart recovery through this next up cycle. We are also
      emphasizing continuous improvement across DXP to generate margin
      expansion while growing the top-line.
    </p>
    <p>
      DXP&#8217;s fiscal 2017 sales were $1.0 billion, or a 4.6 percent increase
      over fiscal 2016, on a reported actual basis. Each of our business
      segments experienced sales growth in fiscal 2017 with Innovative Pumping
      Solutions growing 9.0 percent, Supply Chain Services growing 4.9 percent
      and Service Centers growing 3.3 percent. Fiscal 2017 sales were $641.3
      million for Service Centers, $204.0 million for Innovative Pumping
      Solutions and $161.5 million for Supply Chain Services. DXP produced
      EBITDA of $61.7 million growing 11.8 percent over fiscal 2016.
    </p>
    <p>
      As we look ahead, we expect accelerating organic sales growth, EBITDA
      margin enhancement, with strong cash flow generation and growth in
      earnings. Our key end markets continue to show stabilization but we will
      watch all our markets closely, especially given our recent experience of
      both oil and gas and industrial cycling down at the same time. In 2018,
      we will build on the momentum we have generated and remain
      customer-focused as we continue to create long-term value for
      shareholders.&#8221;
    </p>
    <p>
      Kent Yee, CFO added, &#8220;DXP&#8217;s fiscal 2017 financial performance reflects
      the beginning of a positive improvement in our business. Adjusting for
      the divestiture of Vertex, sales and EBITDA grew 7.2 percent and 32.2
      percent, respectively. Our fiscal 2017 diluted earnings per share was
      $0.93, which also includes a $1.3 million provisional benefit related to
      U.S. tax reform. DXP ended the year with $25.6 million in cash on the
      balance sheet and net debt of $226.5 million. During the year, we
      successfully refinanced our credit facility with a new ABL and Term Loan
      B, while positioning DXP to take advantage of what we believe is
      building momentum in our business. DXP is in a position to invest in our
      business and see potential for significant value creation as we pivot
      our strategy to growth and continuous improvement to expand margins.
      DXP&#8217;s execution from our sales teams and partners is driving growth
      across our businesses and we look forward to a successful fiscal 2018.&#8221;
    </p>
    <div style="width: 100%; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt; 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>Non-GAAP Financial Measures</b>
    </p>
    <p>
      DXP supplements reporting of net income 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
      and free cash flow referred to in this press release are 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-bottom: 10pt; text-indent: 0pt; margin-right: 0pt; 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="font-family: Times New Roman; font-size: 8pt; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td colspan="17">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="17" valign="top">
          <b>DXP ENTERPRISES, INC. AND SUBSIDIARIES</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="17" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="17" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            ($ thousands, except per share amounts)
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">

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

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

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

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">

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

        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="6" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Years Ended</b>
          </p>
        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">

        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="6" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Three Months Ended</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">

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

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

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="6" valign="top">
          <b>December 31,</b>
        </td>
        <td style="text-align: center; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">

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

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="6" valign="top">
          <b>December 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          1,006,782
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          962,092
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          265,627
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          222,291
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Cost of sales
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          735,201
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          697,290
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          194,460
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          161,730
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Gross profit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          271,581
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          264,802
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          71,167
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          60,561
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Selling, general and administrative expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          238,091
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          245,470
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          62,680
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          53,009
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Operating income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          33,490
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          19,332
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          8,487
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          7,552
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Other income, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (456)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (5,906)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (132)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (5,509)
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Interest expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          17,054
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          15,564
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          4,481
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          3,866
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Income before income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          16,892
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          9,674
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          4,138
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          9,195
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Provision (benefit) for income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          363
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          2,523
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          (2,517)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          2,064
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Net income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          16,529
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          7,151
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          6,655
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          7,131
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Less: Net (loss) income attributable to non-controlling interest
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          (359)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          (551)
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          (250)
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Net income attributable to DXP Enterprises, Inc.
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          16,888
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          7,702
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          6,654
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          7,381
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Preferred stock dividend
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          90
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          90
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          22
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          22
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="top">
          Net income attributable to common shareholders
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            $
          </p>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            16,798
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            $
          </p>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            7,612
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            $
          </p>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            6,632
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            $
          </p>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            7,359
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="top">
          Diluted earnings per share attributable to DXP Enterprises, Inc.
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          0.93
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          0.49
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          0.36
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          $
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          0.42
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Weighted average common shares and common equivalent shares
            outstanding
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            18,240
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            15,882
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            18,232
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            17,411
          </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 colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="width: 100%; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt; 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="font-family: Times New Roman; font-size: 8pt; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="14">

        </td>
      </tr>
      <tr>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="17" valign="top">
          <b>SEGMENT DATA</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="17" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            ($ thousands, unaudited)
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="14">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="14" valign="bottom">
          <b>Sales by Segment</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">

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

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

        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="6" valign="bottom">
          <b>Years Ended</b>
        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          &#160;
        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          &#160;
        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="6" valign="top">
          <b>Three Months Ended</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">

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

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

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="6" valign="bottom">
          <b>December 31,</b>
        </td>
        <td style="text-align: center; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">

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

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="6" valign="top">
          <b>December 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>2017</b>
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>2016</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>2017</b>
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 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="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            641,275
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          621,007
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            166,951
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          139,655
        </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="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            204,030
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          187,124
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            59,474
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          45,510
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Supply Chain Services
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          161,477
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          153,961
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          39,201
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          37,126
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Total DXP</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>1,006,782</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <b>962,092</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>265,626</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <b>222,291</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="14">

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="14" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Operating Income by Segment</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">

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

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

        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="6" valign="bottom">
          <b>Years Ended</b>
        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          &#160;
        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          &#160;
        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="6" valign="top">
          <b>Three Months Ended</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">

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

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

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="6" valign="bottom">
          <b>December 31,</b>
        </td>
        <td style="text-align: center; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">

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

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="6" valign="top">
          <b>December 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>2017</b>
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>2016</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>2017</b>
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 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="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            63,250
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          47,633
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            15,941
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          12,155
        </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="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            11,423
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          9,867
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            4,321
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          2,444
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Supply Chain Services
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          15,450
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          15,449
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          3,693
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          3,838
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Total DXP</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>90,123</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <b>72,949</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>23,955</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <b>18,437</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 colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td>

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

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

        </td>
      </tr>
      <tr>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="17" valign="top">
          <b>Reconciliation of Operating Income for Reportable Segments</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="17" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            ($ thousands, unaudited)
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="6">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="6">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">

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

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">

        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="6" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Years Ended</b>
          </p>
        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">

        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="6" valign="top">
          <b>Three Months Ended</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">

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

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

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="6" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>December 31,</b>
          </p>
        </td>
        <td style="text-align: center; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">

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

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="6" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>December 31,</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="2" valign="bottom">
          <b>2017</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="2" valign="bottom">
          <b>2016</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="2" valign="bottom">
          <b>2017</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="2" valign="bottom">
          <b>2016</b>
        </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 style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            90,123
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          72,949
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            23,955
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          18,437
        </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 colspan="2">

        </td>
        <td>

        </td>
        <td>

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

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Amortization of intangibles
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            17,265
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          18,061
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            4,323
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          4,504
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 15.0px; padding-bottom: 2.0px" valign="top">
          Corporate expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          39,368
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          35,556
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          11,145
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          6,381
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Total operating income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          33,490
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          19,332
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          8,487
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          7,552
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Interest expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          17,054
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          15,564
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          4,481
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          3,866
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Other income, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          (456)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          (5,906)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          (132)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          (5,509)
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="top">
          <b>Income before income taxes</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>16,892</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <b>9,674</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <b>4,138</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 2.25pt" valign="bottom">
          <b>9,195</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="width: 100%; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt; 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, unaudited).</i>
    </p>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td>

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

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

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

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

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

        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="6" valign="top">
          <b>Years Ended</b>
        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">

        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="6" valign="top">
          <b>Three Months Ended</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">

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

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

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="6" valign="top">
          <b>December 31,</b>
        </td>
        <td style="text-align: center; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">

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

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="6" valign="top">
          <b>December 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          16,892
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          9,674
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          4,138
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          9,195
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Plus: interest expense
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          17,054
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          15,564
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          4,481
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          27,786
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          29,994
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          7,188
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt" colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>EBITDA</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>61,732</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>55,232</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>15,807</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>20,428</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 colspan="2">

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          577
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          886
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          1,708
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          3,580
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt" colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <b>Adjusted EBITDA</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>64,017</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>59,698</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>16,122</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>22,464</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 colspan="2">

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="17" valign="top">
          **EBITDA &#8211; earnings before impairments, interest, taxes,
          depreciation and amortization
        </td>
      </tr>
      <tr>
        <td colspan="17">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <p>
      The following table is a reconciliation of Free Cash Flow***, a non-GAAP
      financial measure, to cash flow from operating activities, calculated
      and reported in accordance with U.S. GAAP <i>($ thousands, unaudited).</i>
    </p>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td>

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

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

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

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

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

        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="6" valign="top">
          <b>Years Ended</b>
        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">

        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="6" valign="top">
          <b>Three Months Ended</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">

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

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

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="6" valign="top">
          <b>December 31,</b>
        </td>
        <td style="text-align: center; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">

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

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" colspan="6" valign="top">
          <b>December 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Net cash provided by operating activities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          12,545
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          48,006
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          4,017
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          12,866
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Less: purchase of equipment
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          2,811
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          4,868
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          654
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          1,977
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt" colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Free Cash Flow</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>9,734</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>43,138</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>3,363</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>10,889</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 colspan="2">

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          17,054
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          4,354
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt" colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <b>Adjusted Free Cash Flow</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>26,788</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>43,138</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>7,717</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-width: 1.0pt" valign="bottom">
          <b>10,889</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 colspan="2">

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="17" valign="top">
          ***Outstanding Checks &#8211; Accounting rules require companies to net
          outstanding check balances against cash that is available. Prior to
          DXP&#8217;s Q3 refinancing, DXP did not have cash on its balance sheet
          with its primary lender to net the outstanding checks, thus they
          were included in the accounts payable balance.
        </td>
      </tr>
      <tr>
        <td colspan="17">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">

    </p>
    <p>
      CONTACT:<br>DXP Enterprises, Inc.<br>Kent Yee, 713-996-4700<br>Senior
      Vice President, CFO<br><u>www.dxpe.com</u>
    </p>
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</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
