DXP Enterprises, Inc. Announces Authorization of Stock Purchase Program
May 12 2021 - 2:39PM
Business Wire
DXP Enterprises, Inc. (NASDAQ: DXPE) today announced that
its Board of Directors authorized a stock repurchase program (the
“program”) under which up to $85.0 million or 1.5 million shares of
its outstanding common stock may be acquired in the open market
over the next 24 months at the discretion of management.
The shares may be purchased from time to time at prevailing
market prices, through open market or unsolicited negotiated
transactions, depending upon market conditions. Under the program,
the purchases would be funded from available working capital. There
is no guarantee as to the exact number of shares that will be
repurchased, and DXP may discontinue the program at any time
management determines additional purchases are not warranted. As of
March 31, 2021, DXP had approximately 20 million shares
outstanding.
David R. Little, Chairman and CEO commented, "The Board’s
approval of this program reflects confidence in DXP’s future and
puts us in a position to create additional shareholder value when
the opportunities arise. Repurchasing stock is one means of
underscoring our commitment to enhancing shareholder value and
ensuring we have all the tools available to us as senior
management. DXP’s board and management believe that the most
accretive and beneficial use of cash at times is the repurchase of
our shares."
Kent Yee, CFO commented, “DXP has historically opportunistically
bought back shares from time to time to offset dilution primarily
from our restricted stock plan but never as a part of a formal
program that includes multiple factors and explicitly as a part of
our capital allocation and price versus value creation. Our share
repurchase program demonstrates the confidence we have in our
future, ability to grow free cash flow and our ongoing commitment
to create shareholder and stakeholder value. Share repurchases is
an important tool that DXP should have in place. We have averaged
$47.6 million in cash on the balance sheet over the last 15
quarters, since the third quarter of 2017."
About DXP Enterprises, Inc.
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, and
Dubai. DXP provides innovative pumping solutions, supply chain
services and maintenance, repair, operating and production ("MROP")
services that emphasize and utilize DXP’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’s business segments
include Service Centers, Innovative Pumping Solutions and Supply
Chain Services. For more information, go to www.dxpe.com.
The Private Securities Litigation Reform Act of 1995 provides a
“safe-harbor” 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. These
forward-looking statements include without limitation those about
the Company’s expectations regarding the impact of the COVID-19
pandemic and the impact of low commodity prices of oil and gas; the
Company’s business, the Company’s future profitability, cash flow,
liquidity, and growth. 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; decreases in oil and natural gas
prices; decreases in oil and natural gas industry expenditure
levels, which may result from decreased oil and natural gas prices
or other factors; ability to obtain needed capital, dependence on
existing management, leverage and debt service, domestic or global
economic conditions, economic risks related to the impact of
COVID-19, ability to manage changes and the continued health or
availability of management personnel and changes in customer
preferences and attitudes. In some cases, you can identify
forward-looking statements by terminology such as, but not limited
to, “may,” “will,” “should,” “intend,” “expect,” “plan,”
“anticipate,” “believe,” “estimate,” “predict,” “potential,”
“goal,” or “continue” or the negative of such terms or other
comparable terminology. For more information, review the Company’s
filings with the Securities and Exchange Commission. More
information on these risks and other potential factors that could
affect the Company’s business and financial results is included in
the Company’s filings with the SEC, including in the “Risk Factors”
and “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” sections of the Company’s most recently
filed periodic reports on Form 10-K and Form 10-Q and subsequent
filings. The Company assumes no obligation to update any
forward-looking statements or information, which speak as of their
respective dates.
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version on businesswire.com: https://www.businesswire.com/news/home/20210512005923/en/
Kent Yee (713) 996-4700 Senior Vice President, CFO
www.dxpe.com
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