<SEC-DOCUMENT>0001157523-18-001043.txt : 20180508
<SEC-HEADER>0001157523-18-001043.hdr.sgml : 20180508
<ACCEPTANCE-DATETIME>20180508162041
ACCESSION NUMBER:		0001157523-18-001043
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20180508
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20180508
DATE AS OF CHANGE:		20180508

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:		18814889

	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>a51803139.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><font style="font-size: 14pt"><br style="font-size: 14pt"></font><br><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-size: 10pt; font-family: Times New Roman">May
      8, 2018</font></b><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; width: 100%; font-size: 10pt; margin-bottom: 10.0px" cellspacing="0">
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          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Texas</b>
          </p>
        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; width: 50%; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>76-0509661</b>
          </p>
        </td>
      </tr>
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        <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>
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        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; width: 50%; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>7272 Pinemont, Houston, Texas 77040</b>
          </p>
        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; width: 50%; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" 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-size: 10pt; font-family: Arial Unicode MS">&#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-size: 10pt; font-family: Arial Unicode MS">&#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-size: 10pt; font-family: Arial Unicode MS">&#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-size: 10pt; font-family: Arial Unicode MS">&#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).
    </p>
    <p style="text-align: right">
      Emerging growth company&#160;&#160;&#160;&#160;<font style="font-size: 10pt; font-family: Arial Unicode MS">&#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-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
    </p>
    <div style="width: 100%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt">
      <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: justify">

    </p>
    <p style="text-align: justify">
      <b>ITEM 2.02 REGULATION FD DISCLOSURE</b>
    </p>
    <p style="text-align: justify">
      The following information is furnished pursuant to Regulation FD.
    </p>
    <p>
      On May 8, 2018, DXP Enterprises, Inc., issued a press release announcing
      financial results for the first quarter ended March 31, 2018 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 style="white-space: nowrap">
      99.1&#160;&#160;&#160;&#160;&#160;&#160;Press Release dated May 8, 2018 announcing the earnings
      results for the first quarter ended March 31, 2018.
    </p>
    <p>

    </p>
    <div style="width: 100%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt">
      <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; width: 100%; font-size: 10pt; 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="text-align: left; width: 20%; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 74%">

        </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">
            May 8, 2018
          </p>
        </td>
        <td style="width: 74%">

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

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

    </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.
    </p>
<div style="text-align:left">
    <table style="font-family: Times New Roman; width: 100%; font-size: 10pt; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="text-align: left; width: 25%; 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: 75%; 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: 25%; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <a href="a51803139ex99_1.htm">99.1</a>
          </p>
        </td>
        <td style="text-align: left; width: 75%; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <a href="a51803139ex99_1.htm">Press Release dated May 8, 2018
            announcing the earnings results for the first quarter ended March
            31, 2018.</a>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a51803139ex99_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-size: 12pt; font-family: Times New Roman"><b>DXP
      Enterprises Reports First Quarter 2018 Results</b></font>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-size: 12pt; font-family: Times New Roman"><b>$285.9
        million in sales, up 19.9 percent compared to Q1 2017, and a
        sequential increase of 7.6 percent</b></font></i>
      </li>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-size: 12pt; font-family: Times New Roman"><b>GAAP
        diluted EPS of $0.24, up 41.5 percent compared to Q1 2017</b></font></i>
      </li>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-size: 12pt; font-family: Times New Roman"><b>$17.9
        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-size: 12pt; font-family: Times New Roman"><b>Net
        debt of $238.6 million with $12.6 million in cash on the balance sheet</b></font></i>
      </li>
    </ul>
    <p>
      HOUSTON--(BUSINESS WIRE)--May 8, 2018--<b>DXP Enterprises, Inc. (NASDAQ:
      DXPE)</b> today announced financial results for the first quarter ended
      March 31, 2018. The following are results for the three months ended
      March 31, 2018, compared to the three months ended March 31, 2017. A
      reconciliation of the non-GAAP financial measures can be found in the
      back of this press release.
    </p>
    <p>
      <b>First Quarter 2018 financial highlights:</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Sales increased 19.9 percent to $285.9 million, compared to $238.5
        million for the first quarter of 2017, and 7.6 percent compared to the
        fourth quarter of 2017.
      </li>
      <li style="margin-bottom: 10.0px">
        Earnings per diluted share for the first quarter was $0.24 based upon
        18.7 million diluted shares, compared to $0.17 per share in the first
        quarter of 2017, based on 18.2 million diluted shares
      </li>
      <li style="margin-bottom: 10.0px">
        Earnings before interest, taxes, depreciation and amortization
        (EBITDA) for the first quarter was $17.9 million compared to $15.5
        million for the first quarter of 2017, an increase of 15.5 percent.
        EBITDA as a percentage of sales was 6.3 percent and 6.5 percent,
        respectively, comparing the first quarter of 2018 versus 2017.
      </li>
    </ul>
    <p>
      David R. Little, Chairman and CEO, remarked, &#8220;During the first quarter
      of 2018 we experienced broad-based demand improvement across our key end
      markets and regions. DXP&#8217;s first quarter 2018 sales were $285.9 million,
      or a 19.9 percent increase over the first quarter of 2017. DXP&#8217;s
      positive results demonstrate how we have strengthened our business
      organically and through acquisitions. Organic sales increased 15.4
      percent and acquisitions added $10.6 million in sales. EBITDA grew 15.5
      percent. During the first quarter, sales were $175.4 million for Service
      Centers, $67.6 million for Innovative Pumping Solutions and $42.9
      million for Supply Chain Services. Business segment operating income
      increased 25.6 percent year-over-year and increased 9.6 percent
      sequentially. Total DXP operating profit and EPS both grew on a
      double-digit percentage basis versus the prior year, reflecting the
      positive pull through and operating leverage we expect to continue. Our
      customers and suppliers look to DXP to provide a broad portfolio of
      products, value-added services and leading supply chain solutions.
      Overall, we are very pleased with the progress DXP is making. I am
      confident in our team&#8217;s ability to be customer driven experts in MROP
      solutions and deliver value to our customer operations and supply chains
      in 2018 and beyond.&#8221;
    </p>
    <p>
      Kent Yee, CFO, added, &#8220;Our first quarter sequential and year-over-year
      financial results were great to see. This is our fifth consecutive
      quarter of sequential sales increases. We announced the acquisition of
      Application Specialties, Inc., a leading provider of high tolerance and
      standard cutting tools, abrasives, coolants and machine shop supplies.
      We closed the ASI acquisition on January 1<sup>st</sup> and are excited
      to welcome the ASI team to DXP. Total debt outstanding as of March 31,
      2018 was $251.3 million. DXP&#8217;s secured leverage ratio or net debt to
      EBITDA ratio was 3.4:1.0. We look forward to the momentum continuing and
      a positive fiscal year 2018.&#8221;
    </p>
    <p>
      We will host a conference call regarding 2018 first quarter results on
      the Company&#8217;s website (<u>www.dxpe.com</u>) Tuesday, May 8, 2017
      at 4 pm CST. Web participants are encouraged to go to the Company&#8217;s
      website at least 15 minutes prior to the start of the call to register,
      download and install any necessary audio software. The online archived
      replay will be available immediately after the conference call at <u>www.dxpe.com</u>.
    </p>
    <div style="width: 100%; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt; margin-bottom: 10pt">
      <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-left: 0pt; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt">
      <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; width: 100%; font-size: 8pt; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td colspan="13">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="13" valign="top">
          <b>DXP ENTERPRISES, INC. AND SUBSIDIARIES</b>

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

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="7">

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="3" valign="bottom">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="3" valign="bottom">
          <b>2017</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          285,936
        </td>
        <td>

        </td>
        <td>

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

        </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>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          209,491
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          76,445
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </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>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          65,296
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          11,149
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </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>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          (22
        </td>
        <td style="text-align: left; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          (228
        </td>
        <td style="text-align: left; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Interest expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          5,041
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          6,130
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          1,636
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          4,494
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Less: Net loss attributable to non-controlling interest
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          (57
        </td>
        <td style="text-align: left; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          4,551
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </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>

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            $
          </p>
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            4,528
          </p>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          0.24
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          0.17
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="bottom">
          Weighted average common shares and common equivalent shares
          outstanding
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            18,741
          </p>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            18,249
          </p>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </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>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="width: 100%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt">
      <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 first quarter was
        $175.4 million, an increase of 17.9 percent year-over-year with a 9.0
        percent operating income margin. Organic sales increased 10.8 percent
        year-over-year.
      </li>
      <li style="margin-bottom: 10.0px">
        <u><i>Innovative Pumping Solutions&#8217;</i></u> revenue for the
        first quarter was $67.6 million, an increase of 37.9 percent
        year-over-year with a 9.4 percent operating income margin.
      </li>
      <li style="margin-bottom: 10.0px">
        <u><i>Supply Chain Services&#8217;</i></u> revenue for the first
        quarter was $42.9 million, an increase of 5.3 percent year-over-year
        with a 9.4 percent operating margin.
      </li>
    </ul>
<div style="text-align:left">
    <table style="font-family: Times New Roman; width: 100%; font-size: 8pt; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="5">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="5">

        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="15" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>SEGMENT DATA</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <i>($ thousands, unaudited)</i>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="5">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="5">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="5" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Sales </b><br><b>by Segment </b><br><b>Three Months Ended </b><br><b>March
            31,</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="5" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Operating Income</b><br><b>by Segment</b><br><b>Three Months
            Ended</b><br><b>March 31,</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>2018</b>
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>2017</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>2018</b>
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>2017</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; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          175,362
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          15,830
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          13,340
        </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; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          67,642
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          6,382
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          3,510
        </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="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          42,932
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          4,054
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          4,058
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="top">
          <b>Total DXP</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>$</b>
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>285,936</b>
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>$</b>
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>26,266</b>
        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>$</b>
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>20,908</b>
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table style="font-family: Times New Roman; width: 100%; font-size: 8pt; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="8">

        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="13" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Reconciliation of Operating Income for Reportable Segments</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <i>($ thousands, unaudited)</i>
          </p>
        </td>
      </tr>
      <tr>
        <td>

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

        </td>
        <td>

        </td>
        <td colspan="8">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

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

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-left: 0.0px" colspan="8" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Three Months Ended </b><br><b>March 31,</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

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

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="3" valign="bottom">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="3" valign="bottom">
          <b>2017</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>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          26,266
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 10.0px" valign="top">
          Amortization of intangibles
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          4,358
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 10.0px; padding-bottom: 2.0px" valign="top">
          Corporate expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          10,759
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          11,149
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          5,041
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </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>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>$</b>
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>6,130</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>$</b>
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>4,811</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </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>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="width: 100%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt">
      <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; width: 100%; font-size: 8pt; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td colspan="16">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-left: 0.0px" colspan="6" valign="top">
          <b>Three Months </b>

          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Ended</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>March 31,</b>
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-left: 0.0px" colspan="3" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Three Months </b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Ended</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>December 31,</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="2" valign="bottom">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="2" valign="bottom">
          <b>2017</b>
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          6,130
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          5,041
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          6,714
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <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="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <b>EBITDA</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>$</b>
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>17,885</b>
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>$</b>
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>15,807</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          57
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          446
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <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="3">
          &#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>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>$</b>
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>18,388</b>
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>$</b>
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>16,122</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="16" valign="top">
          **Adjusted EBITDA &#8211; earnings before interest, taxes, depreciation
          and amortization
        </td>
      </tr>
      <tr>
        <td colspan="16">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="width: 100%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt">
      <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; width: 100%; font-size: 8pt; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td colspan="12">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="12" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>DXP ENTERPRISES, INC. AND SUBSIDIARIES</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>UNAUDITED CONSOLIDATED BALANCE SHEETS</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <i>($ thousands, except per share amounts)</i>
          </p>
        </td>
      </tr>
      <tr>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>March 31, 2018</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>December 31, 2017</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="bottom">
          <b>ASSETS</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="bottom">
          <i><b>Current assets:</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          12,646
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          22,047
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="bottom">
          Restricted Cash
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          399
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          3,532
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="bottom">
          Trade accounts receivable, net of allowances for doubtful accounts
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          168,176
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          167,272
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="bottom">
          Inventories
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          103,194
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          91,413
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="bottom">
          Costs and estimated profits in excess of billings on
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 10.0px" valign="bottom">
          uncompleted contracts
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          35,534
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          26,915
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="bottom">
          Prepaid expenses and other current assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          4,580
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          5,296
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="bottom">
          Federal income taxes recoverable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          1,440
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="bottom">
          <i><b>Total current assets</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>324,529</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>317,915</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="bottom">
          Property and equipment, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          52,257
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          53,337
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="bottom">
          Goodwill
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          194,074
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          187,591
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="bottom">
          Other intangible assets, net of accumulated amortization
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          80,037
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          78,525
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="bottom">
          Other long-term assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          1,707
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          1,715
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 5.0px; padding-bottom: 4.0px" valign="bottom">
          <b>Total assets</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>$</b>
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>652,605</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>$</b>
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>639,083</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 5.0px" valign="bottom">
          <b>LIABILITIES AND EQUITY</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="bottom">
          <i><b>Current liabilities:</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="bottom">
          Current maturities of long-term debt
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          3,387
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          3,381
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="bottom">
          Trade accounts payable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          90,930
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          80,303
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="bottom">
          Accrued wages and benefits
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          14,411
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          18,483
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="bottom">
          Customer advances
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          2,718
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          2,189
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="bottom">
          Billings in excess of costs and estimated profits on uncompleted
          contracts
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          4,156
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          4,249
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="bottom">
          Other current liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          16,152
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          16,220
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 5.0px" valign="bottom">
          <i><b>Total current liabilities</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>131,754</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>124,825</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="bottom">
          Long-term debt, less current maturities and unamortized debt
          issuance costs
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          238,217
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          238,643
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="bottom">
          Deferred income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          8,429
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          7,069
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 10.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <i><b>Total long-term liabilities</b></i>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>246,646</b>
          </p>
        </td>
        <td style="text-align: right; padding-left: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>245,712</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="bottom">
          <i><b>Equity:</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 5.0px" valign="bottom">
          <i><b>Total DXP Enterprises, Inc. equity</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>273,914</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>267,979</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="bottom">
          Non-controlling interest
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          291
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          567
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="bottom">
          <i><b>Total Equity</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>274,205</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>268,546</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="bottom">
          <b>Total liabilities and equity</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>$</b>
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>652,605</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>$</b>
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>639,083</b>
        </td>
      </tr>
      <tr>
        <td colspan="12">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="width: 100%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt">
      <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>
      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; width: 100%; font-size: 8pt; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td colspan="14">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-left: 0.0px" colspan="9" valign="top">
          <b>Three Months Ended</b>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="3" valign="bottom">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="3" valign="bottom">
          <b>2017</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Net cash provided by operating activities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          (1,606
        </td>
        <td style="text-align: left; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          (2,190
        </td>
        <td style="text-align: left; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          )
        </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>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          791
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          601
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt" colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <b>Free Cash Flow</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>$</b>
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>(2,397</b>
        </td>
        <td style="text-align: left; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>$</b>
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>(2,791</b>
        </td>
        <td style="text-align: left; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>)</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          17,130
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>$</b>
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>14,733</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>$</b>
        </td>
        <td style="text-align: right; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>(2,791</b>
        </td>
        <td style="text-align: left; border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" valign="bottom">
          <b>)</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="14" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>
      ***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.
    </p>
    <p>

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