DXP Enterprises, Inc. Q4 2008 Earnings Call Transcript

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2009-03-10 20:58:16.0

Tags: Supply Chain, Call Transcript, Earnings, DXP Enterprises Inc., Supply Chain Service, January, Supply Chain Management (SCM), Sales Strategy, Enterprise Software, Software, Sales, Seeking Alpha

Question-and-Answer Session

Operator

(Operator's instruction) Your first question comes from the line of Matt Duncan - Stephens, Inc.

Matt Duncan - Stephens, Inc.

First question, I got David, I want to make sure I got clarification on that last thing you just said when you said would be down 20% for the year, were you talking earnings or revenue?

David Little

Okay.

Matt Duncan - Stephens, Inc.

So, you are talking both?

David Little

Okay, both.

Matt Duncan - Stephens, Inc.

Okay, that total sales could be down 20%?

David Little

Yes.

Matt Duncan - Stephens, Inc.

Is that organic or is that the whole company?

David Little

No, that would be?

Matt Duncan - Stephens, Inc.

I am just trying to make sure I got this right because you were talking about growth and supply chain services, you were talking about IPS being down 20% top line and it sounds like you were talking about service centers when you include the impact of Super Centers being kind of flattish to up so I am trying to get how we get to that point.

David Little

Well, basically, I am going to understand your question. We will about sales first. IPS, we think that will be going down 20%. Vertex by the way happens to really be in by the IPS group so that is 20% there. We expect supply chain services to be up 16% and we expect the service center part to be down approximately 11% and all that going to add up expect with 11% is the year-over-year calculation and so assuming January at the bottom and February is trending up and March is trending up which is a good thing, we still have to overcome that we had a pretty substantial growth here.

Matt Duncan - Stephens, Inc.

And David when you say February and March are better than January and January was down 11, are you talking about 11 in number or the growth of the change in revenue? So, if January was down 11%, what was the year-over-year change in February?

David Little

Well, first of all, sales for January on a total basis are about the same as January of the year ago.

Matt Duncan - Stephens, Inc.

Okay.

David Little

But you have to understand that included in that is Vertex and included in that is I guess, the Company we had not talked much about is Falcon which is a little pump acquisition that we did. So, when I talked about it, when I talked about the service centers being down 11% year-over-year, I am talking about the MRO piece and I did not tell you per say what innovative pumping solution was down and what supply chain services was up or down so I did not give you the whole picture but the big disconnect I think is that we are kind of giving you a number that we think is worse case and then we are also giving you a number of we kind of start where we were in January but each month, we had what did we grow I will say is when we found the top line growth with 65.76%. So, we have got to keep pretty close track to that or we are going to be down.

 

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