<SEC-DOCUMENT>0001157523-18-001752.txt : 20180807
<SEC-HEADER>0001157523-18-001752.hdr.sgml : 20180807
<ACCEPTANCE-DATETIME>20180807160738
ACCESSION NUMBER:		0001157523-18-001752
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20180807
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20180807
DATE AS OF CHANGE:		20180807

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:		18998012

	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>a51849562.htm
<DESCRIPTION>DXP ENTERPRISES, INC. 8-K
<TEXT>
<html>
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    <p style="text-align: center">

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

        </td>
        <td style="width: 50%">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="border-bottom-width: 1.0pt; text-align: center; padding-left: 0.0px; border-bottom-color: black; width: 50%; border-bottom-style: solid">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>7272 Pinemont, Houston, Texas 77040</b>
          </p>
        </td>
        <td valign="top" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: center; padding-left: 0.0px; border-bottom-color: black; width: 50%; border-bottom-style: solid; padding-right: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>(713) 996-4700</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: center; padding-left: 0.0px; width: 50%">
          (Address of principal executive offices)
        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px; width: 50%">
          Registrant&#8217;s telephone number, including area code.
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <br>
      _________________________
    </p>
    <p>
      <br>
      Check the appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:
    </p>
    <p style="white-space: nowrap">
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font><font style="font-size: 12pt">&#160;&#160;</font>Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
    </p>
    <p style="white-space: nowrap">
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font><font style="font-size: 12pt">&#160;&#160;</font>Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
    </p>
    <p style="white-space: nowrap">
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font><font style="font-size: 12pt">&#160;&#160;</font>Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
    </p>
    <p style="white-space: nowrap">
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font><font style="font-size: 12pt">&#160;&#160;</font>Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))
    </p>
    <p>
      Indicate by check mark whether the registrant is an emerging growth
      company as defined in Rule 405 of the Securities Act of 1933 (&#167;230.405
      of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934
      (&#167;240.12b-2 of this chapter).
    </p>
    <p style="text-align: right">
      Emerging growth company&#160;&#160;&#160;&#160;<font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
    </p>
    <p>
      If an emerging growth company, indicate by check mark if the registrant
      has elected not to use the extended transition period for complying with
      any new or revised financial accounting standards provided pursuant to
      Section 13(a) of the Exchange Act.&#160;&#160;&#160;&#160;<font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
    </p>
    <div style="text-indent: 0pt; margin-left: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

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

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

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

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

    </p>
    <p style="text-align: justify">
      <b>ITEM 2.02 RESULTS&#160;OF&#160;OPERATIONS&#160;AND&#160;FINANCIAL&#160;CONDITION</b>
    </p>
    <p style="text-align: justify">
      The following information is furnished pursuant to Regulation FD.
    </p>
    <p>
      On August 7, 2018, DXP Enterprises, Inc., issued a press release
      announcing financial results for the second quarter ended June 30, 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 August 7, 2018 announcing the earnings
      results for the second quarter ended June 30, 2018.
    </p>
    <p>

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

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

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

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

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

    </p>
    <p style="text-align: center">
      <b>SIGNATURES</b>
    </p>
    <p style="text-align: left">
      Pursuant to the requirements of the Securities Exchange Act of 1934, as
      amended, the Registrant has duly caused this report to be signed on its
      behalf by the undersigned hereunto duly authorized.
    </p>
    <p style="text-indent: 30.0px; text-align: left">

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

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

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

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

        </td>
        <td style="width: 74%">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px; width: 6%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            By:
          </p>
        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px; width: 20%">
          <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 valign="top" style="text-align: left; padding-left: 0.0px; width: 20%">
          <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 valign="top" style="text-align: left; padding-left: 0.0px" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Senior Vice President/Finance and Chief Financial Officer
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

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

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

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

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

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

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Senior Vice President/Chief Accounting Officer
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

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

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px; width: 6%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Dated:
          </p>
        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px; width: 20%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            August 7, 2018
          </p>
        </td>
        <td style="width: 74%">

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

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

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

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

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

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

    </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="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 10pt" cellspacing="0">
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px; width: 25%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><i><b>Exhibit No.</b></i></u>
          </p>
        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px; width: 75%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><i><b>Description</b></i></u>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="white-space: nowrap; text-align: left; padding-left: 0.0px; width: 25%; padding-right: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <a href="a51849562ex99_1.htm">99.1</a>
          </p>
        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px; width: 75%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <a href="a51849562ex99_1.htm">Press Release dated August 7, 2018
            announcing the earnings results for the second quarter ended June
            30, 2018.</a>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a51849562ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
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    <title></title>
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  <body style="font-size: 8pt; font-family: Times New Roman">
    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>DXP
      Enterprises Reports Second Quarter 2018 Results</b></font>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-family: Times New Roman; font-size: 12pt"><b>$311.2
        million in sales, up 24.1 percent compared to Q2 2017, and a
        sequential increase of 8.8 percent</b></font></i>
      </li>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-family: Times New Roman; font-size: 12pt"><b>Net
        income of $11.5 million versus $4.1 million compared to Q2 2017</b></font></i>
      </li>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-family: Times New Roman; font-size: 12pt"><b>GAAP
        diluted EPS of $0.63, up 174 percent compared to Q2 2017</b></font></i>
      </li>
      <li style="margin-bottom: 10.0px">
        <i><font style="font-family: Times New Roman; font-size: 12pt"><b>$28.0
        million in earnings before interest, taxes, depreciation and
        amortization (&#8220;EBITDA&#8221;)</b></font></i>
      </li>
    </ul>
    <p>
      HOUSTON--(BUSINESS WIRE)--August 7, 2018--<b>DXP Enterprises, Inc.
      (NASDAQ: DXPE)</b> today announced financial results for the second
      quarter ended June 30, 2018. The following are results for the three
      months and six months ended June 30, 2018, compared to the three months
      and six months ended June 30, 2017. A reconciliation of the non-GAAP
      financial measures can be found in the back of this press release.
    </p>
    <p>
      <b>Second Quarter 2018 financial highlights:</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Sales increased 24.1 percent to $311.2 million, compared to $250.7
        million for the second quarter of 2017, and 8.8 percent compared to
        the first quarter of 2018.
      </li>
      <li style="margin-bottom: 10.0px">
        Earnings per diluted share for the second quarter was $0.63 based upon
        18.4 million diluted shares, compared to $0.23 per share in the second
        quarter of 2017, based on 18.2 million diluted shares. Excluding
        one-time items, a gain associated with selling a corporate facility
        and cost associated with repricing DXP&#8217;s Term Loan B debt, earnings
        per diluted share for the second quarter was $0.61, up 165 percent
        compared to the second quarter of 2017.
      </li>
      <li style="margin-bottom: 10.0px">
        Earnings before interest, taxes, depreciation and amortization
        (EBITDA) for the second quarter was $28.0 million compared to $16.9
        million for the second quarter of 2017, an increase of 65 percent.
        EBITDA as a percentage of sales was 9.0 percent and 6.8 percent,
        respectively, comparing the second quarter of 2018 versus 2017.
        Excluding a one-time gain associated with selling a corporate
        facility, EBITDA was $26.6 million or 8.6 percent of sales.
      </li>
    </ul>
    <p>
      David R. Little, Chairman and CEO remarked, &#8220;We are pleased with our
      sequential sales growth from the first quarter and continual improvement
      in gross profit margins. This resulted in operating leverage that
      produced earnings per share of $0.61, after adjusting for one-time
      items. We continue to experience broad-based demand across our key end
      markets and regions. DXP&#8217;s second quarter 2018 sales were $311.2
      million, or a 24.1 percent increase over the second quarter of 2017.
      Organic sales for the quarter, increased 19.2 percent and acquisitions
      added $12.4 million in sales. EBITDA grew 65.0 percent. During the
      second quarter of 2018, sales were $193.6 million for Service Centers,
      $74.2 million for Innovative Pumping Solutions and $43.4 million for
      Supply Chain Services. Business segment operating income increased 47.1
      percent year-over-year and increased 33.8 percent sequentially. 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. That said,
      we are optimistic that we can show continued sales and profit
      improvement during the second half of 2018.&#8221;
    </p>
    <p>
      Kent Yee, CFO, added, &#8220;This is DXP&#8217;s sixth consecutive quarter of
      sequential sales increases. Additionally, we have experienced three
      quarters of sequential organic gross margin improvement. We announced
      the repricing of our Term Loan B on June 26th lowering interest by 75
      basis points from LIBOR plus 5.50 percent to LIBOR plus 4.75 percent.
      Total debt outstanding as of June 30, 2018 was $250.4 million. DXP&#8217;s
      secured leverage ratio or net debt to EBITDA ratio was 3.2:1.0. We look
      forward to the momentum continuing and a positive fiscal year 2018.&#8221;
    </p>
    <p>
      We will host a conference call regarding 2018 second quarter results on
      the Company&#8217;s website (<u>www.dxpe.com</u>) Tuesday, August 7,
      2018 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="text-indent: 0pt; margin-bottom: 10pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

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

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

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

        </div>
      </div>
    </div>
    <p>
      <b>Non-GAAP Financial Measures</b>
    </p>
    <p>
      DXP supplements reporting of net income with non-GAAP measurements,
      including EBITDA, Adjusted EBITDA and free cash flow. This supplemental
      information should not be considered in isolation or as a substitute for
      the unaudited GAAP measurements.&#160;Additional information regarding EBITDA
      and free cash flow referred to in this press release are included below
      under &quot;--Unaudited Reconciliation of Non-GAAP Financial Information.&quot;
    </p>
    <p>
      The Company believes EBITDA provides additional information about: (i)
      operating performance, because it assists in comparing the operating
      performance of the business, as it removes the impact of non-cash
      depreciation and amortization expense as well as items not directly
      resulting from core operations such as interest expense and income taxes
      and (ii) the performance and the effectiveness of operational
      strategies. Additionally, EBITDA performance is a component of a measure
      of the Company&#8217;s financial covenants under its credit facility.
      Furthermore, some investors use EBITDA as a supplemental measure to
      evaluate the overall operating performance of companies in the industry.
      Management believes that some investors&#8217; understanding of performance is
      enhanced by including this non-GAAP financial measure as a reasonable
      basis for comparing ongoing results of operations. By providing this
      non-GAAP financial measure, together with a reconciliation from net
      income, the Company believes it is enhancing investors&#8217; understanding of
      the business and results of operations, as well as assisting investors
      in evaluating how well the Company is executing strategic initiatives.
    </p>
    <p>
      <b>About DXP Enterprises, Inc.</b>
    </p>
    <p>
      DXP Enterprises, Inc. is a leading products and service distributor that
      adds value and total cost savings solutions to industrial customers
      throughout the United States, Canada, Mexico and Dubai. DXP provides
      innovative pumping solutions, supply chain services and maintenance,
      repair, operating and production (&quot;MROP&quot;) services that emphasize and
      utilize DXP&#8217;s vast product knowledge and technical expertise in rotating
      equipment, bearings, power transmission, metal working, industrial
      supplies and safety products and services. DXP's breadth of MROP
      products and service solutions allows DXP to be flexible and
      customer-driven, creating competitive advantages for our customers.
      DXP&#8217;s business segments include Service Centers, Innovative Pumping
      Solutions and Supply Chain Services. For more information, go to <u>www.dxpe.com</u>.
    </p>
    <p>
      <i>The Private Securities Litigation Reform Act of 1995 provides a
      &#8220;safe-harbor&#8221; for forward-looking statements. Certain information
      included in this press release (as well as information included in oral
      statements or other written statements made by or to be made by the
      Company) contains statements that are forward-looking. Such
      forward-looking information involves important risks and uncertainties
      that could significantly affect anticipated results in the future; and
      accordingly, such results may differ from those expressed in any
      forward-looking statement made by or on behalf of the Company. These
      risks and uncertainties include, but are not limited to; ability to
      obtain needed capital, dependence on existing management, leverage and
      debt service, domestic or global economic conditions, and changes in
      customer preferences and attitudes. In some cases, you can identify
      forward-looking statements by terminology such as, but not limited to,
      &#8220;may,&#8221; &#8220;will,&#8221; &#8220;should,&#8221; &#8220;intend,&#8221; &#8220;expect,&#8221; &#8220;plan,&#8221; &#8220;anticipate,&#8221;
      &#8220;believe,&#8221; &#8220;estimate,&#8221; &#8220;predict,&#8221; &#8220;potential,&#8221; &#8220;goal,&#8221; or &#8220;continue&#8221; or
      the negative of such terms or other comparable terminology. For more
      information, review the Company&#8217;s filings with the Securities and
      Exchange Commission.</i>
    </p>
    <div style="text-indent: 0pt; margin-left: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

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

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

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

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 8pt" cellspacing="0">
      <tr>
        <td colspan="19">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="19">
          <b>DXP ENTERPRISES, INC. AND SUBSIDIARIES</b>

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

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

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

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

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          311,227
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          250,698
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          597,163
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          489,225
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          226,111
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          181,762
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          435,602
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          355,774
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Gross profit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          85,116
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          68,936
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          161,561
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          133,451
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          65,056
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          58,679
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          130,352
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          114,958
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Operating income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          20,060
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          10,257
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          31,209
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          18,493
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          (1,416
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: left; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          (1,438
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: left; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          (171
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: left; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px">
          Interest expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          6,137
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          3,992
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          11,178
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          7,645
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Income before income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          15,339
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          6,208
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          21,469
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          11,019
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          3,776
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          2,239
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          5,412
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          4,056
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Net income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          11,563
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          3,969
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          16,057
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          6,963
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px">
          Less: Net income (loss) attributable to NCI*
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          (166
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: left; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          (305
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: left; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Net income attributable to DXP Enterprises, Inc.
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          11,562
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          4,135
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          16,113
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          7,268
        </td>
        <td>

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

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          45
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          45
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px">
          Net income attributable to common shareholders
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            $
          </p>
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            11,540
          </p>
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            $
          </p>
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            4,113
          </p>
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            $
          </p>
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            16,068
          </p>
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            $
          </p>
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            7,223
          </p>
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px">
          Diluted earnings per share attributable to DXP Enterprises, Inc.
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          0.63
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          0.23
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          0.88
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          0.40
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px">
          Weighted average common shares and common equivalent shares
          outstanding
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            18,398
          </p>
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            18,244
          </p>
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            18,378
          </p>
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            18,246
          </p>
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px" colspan="19">
          *NCI represents non-controlling interest
        </td>
      </tr>
      <tr>
        <td colspan="19">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-left: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

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

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

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

        </div>
      </div>
    </div>
    <p>
      <b>Business segment financial highlights:</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        <u><i>Service Centers&#8217;</i></u> revenue for the second quarter
        was $193.6 million, an increase of 17.5 percent year-over-year with an
        11.3 percent operating income margin. Organic sales increased 10.0
        percent year-over-year.
      </li>
      <li style="margin-bottom: 10.0px">
        <u><i>Innovative Pumping Solutions&#8217;</i></u> revenue for the
        second quarter was $74.3 million, an increase of 67.0 percent
        year-over-year with a 12.1 percent operating income margin.
      </li>
      <li style="margin-bottom: 10.0px">
        <u><i>Supply Chain Services&#8217;</i></u> revenue for the second
        quarter was $43.4 million, an increase of 4.6 percent year-over-year
        with a 9.8 percent operating income margin.
      </li>
    </ul>
<div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 8pt" cellspacing="0">
      <tr>
        <td colspan="17">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="17">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>SEGMENT DATA</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <i>($ thousands, unaudited)</i>
          </p>
        </td>
      </tr>
      <tr>
        <td>

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

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

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

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

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

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

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

          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>June 30,</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px">
          <b>Sales</b>
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          193,576
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          164,749
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          368,937
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          313,461
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Innovative Pumping Solutions
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          74,257
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          44,470
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          141,899
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          93,528
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px">
          Supply Chain Services
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          43,394
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          41,479
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          86,327
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          82,236
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px">
          <b>Total DXP Sales</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>311,227</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>250,698</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>597,163</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>489,225</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

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

          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>June 30,</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px">
          <b>Operating Income</b>
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          21,933
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          18,418
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          37,762
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          31,758
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Innovative Pumping Solutions
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          8,956
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          1,754
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          15,338
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          5,264
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px">
          Supply Chain Services
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          4,255
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          3,718
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          8,309
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          7,776
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px">
          <b>Total operating income for segments</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>35,144</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>23,890</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>61,409</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>44,798</b>
        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-left: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

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

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

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

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 8pt" cellspacing="0">
      <tr>
        <td colspan="20">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="20">
          <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>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="7">

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

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

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td valign="top" style="border-bottom-width: 1.0pt; text-align: center; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid" colspan="8">
          <b>Six Months Ended </b>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: center; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px" colspan="3">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: center; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px" colspan="2">
          <b>2017</b>
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          35,144
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          23,890
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          61,409
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          44,798
        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          4,119
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          4,291
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          8,477
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          8,607
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          10,965
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          9,342
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          21,723
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          17,698
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Total operating income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          20,060
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          10,257
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          31,209
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          18,493
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          6,137
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          3,992
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          11,178
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          7,645
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          (1,416
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: left; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          (1,438
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: left; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          (171
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: left; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px">
          <b>Income before income taxes</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>15,339</b>
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>6,208</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>21,469</b>
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>11,019</b>
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 8pt" cellspacing="0">
      <tr>
        <td colspan="18">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="18">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Unaudited Reconciliation of Non-GAAP Financial Information</b>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="18">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px" colspan="18">
          The following table is a reconciliation of Adjusted EBITDA**, a
          non-GAAP financial measure, to income before income taxes, calculated
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px" colspan="18">
          and reported in accordance with U.S. GAAP ($ thousands, unaudited).
        </td>
      </tr>
      <tr>
        <td>

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

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

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

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: center; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px" colspan="3">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: center; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px" colspan="2">
          <b>2017</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          15,339
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          6,208
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          21,469
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          11,019
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Plus: interest expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          6,137
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          3,992
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          11,178
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          7,645
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Plus: depreciation and amortization
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          6,491
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          6,747
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          13,205
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          13,762
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>27,967</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>16,947</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>45,852</b>
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>32,426</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          269
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          (56
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: left; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          493
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Plus: Stock compensation expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          557
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          477
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          1,003
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          1,010
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>28,525</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>17,693</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>46,799</b>
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>33,929</b>
        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-left: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

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

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

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

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

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

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

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="11">
          <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 CONDENSED 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>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>June 30, 2018</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          2,489
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          185,261
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          110,767
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          37,943
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          4,750
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          986
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          <b>342,595</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          53,035
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          194,033
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          75,682
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          1,587
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>666,932</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          3,394
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          95,013
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          18,106
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          7,882
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          3,075
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          5,645
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          <b>133,115</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          237,875
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          7,966
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          7,069
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px">
          Other long-term liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          2,611
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>248,452</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>245,712</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px">
          <b>Total Liabilities</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>381,567</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>370,537</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          <i><b>Equity:</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          <b>284,854</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          511
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>285,365</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 2.25pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: double; padding-right: 0.0px">
          <b>666,932</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-left: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

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

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

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

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

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

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

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

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: center; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px" colspan="3">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: center; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px" colspan="2">
          <b>2017</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: center; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px" colspan="3">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: center; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px" colspan="2">
          <b>2017</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          (6,175
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: left; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          10,044
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          (6,983
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: left; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          7,854
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Less: purchase of equipment
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          4,725
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          517
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          5,516
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          1,118
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>(10,900</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: left; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>9,527</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>(12,499</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: left; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>6,736</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          21,714
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; text-align: right; padding-left: 0.0px; padding-right: 0.0px">
          21,714
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>10,814</b>
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>9,527</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>9,215</b>
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>$</b>
        </td>
        <td valign="bottom" style="border-bottom-width: 1.0pt; white-space: nowrap; text-align: right; padding-left: 0.0px; border-bottom-color: black; border-bottom-style: solid; padding-right: 0.0px">
          <b>6,736</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px" colspan="19">
          <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 2017 refinancing, DXP did not have cash on its balance sheet to
      net the outstanding checks, thus they were included in the accounts
      payable balance.
    </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>
    <p style="text-align: right">

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