Boston, MA 05/13/2014 (wallstreetpr) – In the latest quarter, even the management of DXP Enterprises Inc (NASDAQ:DXPE) noted unwanted surprises in the business. Despite sales improvement in the quarter, 1Q2014 financial report failed to comply with the expectations. As such, the management could do nothing but promise that such tepid results will not be allowed in the future.
Though the management took responsibility for the lackluster 1Q2014 results, the CEO David R. Little observed that the U.S. and Canadian markets failed to perform as per the expectation. However, such impacts are expected to be short-lived as the CEO noted that 2014 continue to provide an opportunity to strengthen the company for future growth.
As such, the company intends to use this year to expand customer relationship, increase market share, improve service quality and undertake more aggressive cost cuts. In addition to undertaking renewed efforts to stem the escalation of costs and expenses, DXP Enterprises Inc (NASDAQ:DXPE) also intends to increase investment where business strategies and returns make sense.
The company noted significant contribution from its acquisitions but the contribution was not good enough to support strong results in the latest quarter. To realize sustainable and improving revenue, the company intends to pursue acquisition revenue growth with the same vigor it pursues organic growth that currently contributes the lion’s share of total revenue.
Efficiency takes center-stage
DXP Enterprises Inc (NASDAQ:DXPE) experienced higher expenses in the latest quarter than it did a year ago. On that note, the CEO said that, in addition to the currentd cost reduction measures, the company intends to identify new cost-saving opportunities that will stem runaway costs and expenses and also support big savings that can be returned to shareholders or reinvested for future growth.
1Q highlight
DXP Enterprises Inc (NASDAQ:DXPE) generated $348.5 million in sales in the latest quarter. That compared with sales of $290.1 million in the same quarter in 2013. Therefore, revenue increased slightly more than 20 percent on a year-over-year basis.
The company realized a net income of $11.6 million or 75 cents per share. That compared with a net income of $13.2 million or 87 cents per share. The company had 15.6 million diluted shares in the latest quarter compared with 15.2 million diluted shares in 1Q2013.
