DXP Enterprises Inc (DXPE) 2024 Q3 法說會逐字稿

Thank you for standing by. My name is Novi, and I will be your conference operator today. At this time, I would like to welcome everyone to the DXP Enterprises, Inc., third-quarter 2024 earnings release and conference call. (Operator Instructions)

謝謝你的支持。我叫諾維，今天我將擔任你們的會議操作員。此時，我歡迎大家參加 DXP Enterprises, Inc. 2024 年第三季財報發布和電話會議。（操作員說明）

I would now like to turn the call over to Kent Yee, Chief Financial Officer. Please go ahead.

我現在想將電話轉給財務長 Kent Yee。請繼續。

Thank you, Novi, and thank you, everyone. This is Kent Yee, and welcome to DXP's Q3 2024 conference call to discuss our results for the third quarter ending September 30, 2024. Joining me today is our Chairman and CEO, David Little.

謝謝你，諾維，謝謝大家。我是 Kent Yee，歡迎參加 DXP 2024 年第三季電話會議，討論我們截至 2024 年 9 月 30 日的第三季業績。今天加入我的是我們的董事長兼執行長 David Little。

Before we get started, I want to remind you that today's call is being webcast and recorded and includes forward-looking statements. Actual results may differ materially from those contemplated by these forward-looking statements. A detailed discussion on the many factors that we believe may have a material effect on our business on an ongoing basis are contained in our SEC filings. However, DXP assumes no obligation to update that information as a result of new information or future events.

在我們開始之前，我想提醒您，今天的電話會議正在進行網路直播和錄音，其中包含前瞻性陳述。實際結果可能與這些前瞻性陳述預期的結果有重大差異。我們向 SEC 提交的文件中包含了對我們認為可能對我們的業務持續產生重大影響的許多因素的詳細討論。但是，DXP 不承擔因新資訊或未來事件而更新該資訊的義務。

During this call, we may present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our earnings press release. The press release and an accompanying investor presentation are now available on our website at ir.dxpe.com.

在這次電話會議中，我們可能會介紹公認會計準則和非公認會計準則的財務指標。我們的收益新聞稿中包含了 GAAP 與非 GAAP 指標的調整表。該新聞稿和隨附的投資者簡報現已在我們的網站 ir.dxpe.com 上提供。

I will now turn the call over to David Little, our Chairman and CEO, to provide his thoughts and a summary of our third quarter performance and financial results. David?

我現在將把電話轉給我們的董事長兼執行長大衛·利特爾（David Little），以提供他的想法以及我們第三季度業績和財務業績的摘要。大衛？

Thanks, Kent, and thanks to everyone on our 2024 third quarter conference call. Kent will take you through the key financial details after my remarks. And after our prepared comments, we will open for Q&A.

謝謝 Kent，也謝謝參加 2024 年第三季電話會議的所有人。在我發言後，肯特將向您介紹關鍵的財務細節。在我們準備好評論後，我們將開始問答。

It is my privilege to share DXP's third quarter results with you on behalf of over 2,989 DXPeople. Congratulations to all our stakeholders and a special thank to you and our DXPeople you can trust.

我很榮幸能代表超過 2,989 名 DXPeople 與您分享 DXP 第三季業績。恭喜我們所有的利害關係人，並特別感謝您和您可以信任的 DXPeople。

We are pleased to see end market demand and DXP's performance continue through Q3. We remain at record levels as we move into the last quarter of 2024. This allows us to achieve another quarter of both solid sales growth and 10% plus EBITDA margins. We are pleased to announce strong third quarter results with sales, operating income and earnings per share all up over the prior year. This is a great way to start the second half of fiscal 2024.

我們很高興看到終端市場需求和 DXP 的表現持續到第三季。進入 2024 年最後一個季度，我們仍保持在創紀錄的水平。這使我們能夠再實現一個季度的銷售穩健成長和 EBITDA 利潤率 10% 以上。我們很高興地宣布強勁的第三季業績，銷售額、營業收入和每股盈餘均較上年同期成長。這是開啟 2024 財年下半年的好方法。

We remain focused on serving our customers and providing products and services that help them save money, consolidate their MRO spend, manage inventory and provide solutions to solve their revolving needs.

我們仍然專注於為客戶提供服務，提供產品和服務，幫助他們節省資金、整合 MRO 支出、管理庫存並提供解決方案來滿足他們的循環需求。

Being customer-driven and growing sales profitably is our goal. We continue to focus on driving organic and acquisition growth, increasing gross profit margins and increasing productivity. Our execution has resulted in fiscal 2023 and 2024 top line and bottom line growth, both organically and through acquisitions. That said, our growth strategies are working, and our acquisition pipeline should add to our results as we close out fiscal 2024 and going into fiscal 2025.

以客戶為導向並實現銷售成長是我們的目標。我們繼續專注於推動有機成長和收購成長、提高毛利率和提高生產力。我們的執行力透過有機成長和收購實現了 2023 財年和 2024 財年的營收和利潤成長。也就是說，我們的成長策略正在發揮作用，隨著 2024 財年結束並進入 2025 財年，我們的收購管道應該會增加我們的業績。

We continue to be excited about the future and delivering a differentiated customer experience, creating an engaging winning culture for DXP, and investing in our business to strengthen our core capabilities and drive long-term growth. Year-to-date through September 30, total sales were up 4.7% and adjusted EBITDA is up 6.5%. Last 12 month sales and adjusted EBITDA were $1.74 billion and $183 million, respectively, with adjusted EBITDA margins of 10.5%.

我們繼續對未來感到興奮，並提供差異化的客戶體驗，為 DXP 創造引人入勝的文化，並投資於我們的業務以增強我們的核心能力並推動長期成長。年初至今，截至 9 月 30 日，總銷售額成長 4.7%，調整後 EBITDA 成長 6.5%。過去 12 個月的銷售額和調整後 EBITDA 分別為 17.4 億美元和 1.83 億美元，調整後 EBITDA 利潤率為 10.5%。

Moving to our third quarter, total DXP revenue of $47.9 million for the third quarter of 2024 was a 12.8% increase year-over-year with adjusted EBITDA of $52.4 million for the third quarter.

進入第三季度，2024 年第三季 DXP 總營收為 4,790 萬美元，年增 12.8%，調整後 EBITDA 為 5,240 萬美元。

In terms of Q3 financial results, Innovative Pumping Solutions led the way, growing sales 52.3% year-over-year to $89.8 million, following by service centers growing sales 7.6% year-over-year to $316.8 million and Supply Chain Services flat or growing 0.7% year-over-year to $66.2 million.

就第三季財務業績而言，創新泵送解決方案一馬當先，銷售額同比增長 52.3% 至 8,980 萬美元，其次是服務中心銷售額同比增長 7.6% 至 3.168 億美元，供應鏈服務持平或增長同比增長0.7% 至6,620 萬美元。

In terms of IPS, our Innovative Pumping Solutions, we have two broad markets tied to capital budgets and/or project work, DXP's heritage energy-related project work and DXP Water. Year-to-date, DXP's Water is 45% of IPS sales versus last year at this time, it was 31%. As we have grown our DXP Water platform, we have increased both gross margins and operating income margins for the segment and for DXP.

就 IPS（我們的創新泵送解決方案）而言，我們擁有與資本預算和/或專案工作相關的兩個廣泛市場，即 DXP 的傳統能源相關專案工作和 DXP Water。今年迄今為止，DXP 的 Water 佔 IPS 銷售額的 45%，而去年同期為 31%。隨著我們 DXP Water 平台的發展，我們提高了該部門和 DXP 的毛利率和營業利潤率。

Our energy-related bookings and backlog continues to show resilience and perform above our long-term averages, albeit not at all-time highs. Additionally, our year-to-date average remains above our long-term average energy IPS backlog going back to 2015, which we mentioned first occurred in Q1 of this year. What this indicates is that we are continuing to get bookings, and we feel good at this point in the cycle on the energy and water and wastewater-related project work. We look forward to seeing how this impacts our results and project revenue in both energy and water and wastewater as we move through 2024 and into 2025.

我們與能源相關的預訂和積壓訂單繼續表現出彈性，並且表現高於我們的長期平均水平，儘管並未達到歷史最高水平。此外，我們今年迄今的平均能源 IPS 積壓量仍高於自 2015 年以來的長期平均水平，我們首次提到這一情況發生在今年第一季。這表明我們正在繼續獲得預訂，並且我們在能源、水和廢水相關專案工作週期的這一點上感覺良好。我們期待在 2024 年和 2025 年期間看到這對我們在能源、水和廢水方面的成果和專案收入有何影響。

We have booked a few large projects in both energy and water that should start recognizing revenue starting in Q1 or Q2 of next year. That said, as we maintain growth, DXP's focus within IPS will be to continue to manage the demand levels we have, finding opportunities in all markets such as energy, biofuels, food and beverage and water and wastewater and manage pricing and delivery while improving and maintaining margins.

我們已經預訂了一些能源和水務的大型項目，這些項目應該從明年第一季或第二季開始確認收入。也就是說，隨著我們保持成長，DXP 在IPS 中的重點將是繼續管理我們的需求水平，在能源、生物燃料、食品和飲料以及水和廢水等所有市場中尋找機會，並管理定價和交付，同時改善和交付維持利潤。

In terms of Service Centers, the diversity of end markets, multiple product division approach and our MRO nature within service centers allows us to continue to remain resilient and continue to experience consistent top line year-over-year growth.

就服務中心而言，終端市場的多樣性、多產品分工方法以及我們在服務中心內的 MRO 性質使我們能夠繼續保持彈性，並繼續實現持續的營收年增長。

From a regional perspective, regions that experienced year-over-year growth included North Central, North Texas, South Rockies, Southwest and our Canadian rotating equipment business. We continue to expect our end markets will remain constructive over the near future. We have all seen strength -- we have also seeing strength in our US Safety Services division and Metalworking Products division, which is great to see.

從區域角度來看，經歷同比增長的地區包括中北部、德克薩斯州北部、南落基山脈、西南地區和我們的加拿大旋轉設備業務。我們繼續預計我們的終端市場在不久的將來將保持建設性。我們都看到了實力——我們也看到了我們的美國安全服務部門和金屬加工產品部門的實力，這是很高興看到的。

Supply Chain Services sales have continued to align with performance trends observed in the second half of 2023. Historically, the later half of the year is impacted by holiday season and there being fewer billing days. However, Supply Chain Services is anticipating an increase in new accounts implemented in Q4 of 2024 and Q1 of 2025. SCS has also invested in a customer care model, allowing customers to utilize DXP's remote technology within the need for full -- without the need of full-time on-site presence. This model enables DXP to extend Supply Chain Services technology to accounts with smaller sites and expand the business relationship.

供應鏈服務銷售額持續與 2023 年下半年觀察到的業績趨勢保持一致。從歷史上看，下半年受假期影響，計費天數較少。然而，供應鏈服務預計 2024 年第四季和 2025 年第一季實施的新帳戶數量將會增加。SCS 還投資了客戶服務模式，使客戶能夠在需要時充分利用 DXP 的遠端技術，而無需全職在場。該模型使 DXP 能夠將供應鏈服務技術擴展到具有較小網站的帳戶並擴展業務關係。

SCS remains committed to expanding our industrial customer base through enhanced marketing and lead generation tools. As we go into fiscal 2025, we will focus on extending DXP's service and repair offering for rotating equipment and safety services to our existing customers, leveraging the broader DXP capability. We anticipate this could happen in early 2025.

SCS 仍然致力於透過增強行銷和潛在客戶開發工具來擴大我們的工業客戶群。進入 2025 財年，我們將重點利用更廣泛的 DXP 功能，將 DXP 的旋轉設備服務和維修服務以及安全服務擴展到現有客戶。我們預計這可能會在 2025 年初發生。

Demand for Supply Chain Services, services is increasing because of proven technology and efficiency they perform for all of their industrial customers.

對供應鏈服務的需求正在增加，因為它們為所有工業客戶提供了成熟的技術和效率。

DXP's overall gross profit margins for the third quarter were 30.9%, a 94 basis point improvement over 2023. Overall, I'm pleased with our gross margins and our steady improvement over the last seven quarters. SG&A for the third quarter increased $16.8 million versus Q3 of 2023. SG&A, as a percent of sales increased going from 21.4% in Q3 of '23 to 22.5% in Q3 of '24. SG&A continues to reflect our investment in our people and our growth strategies, along with improvements in technology and processes to gain future efficiencies.

DXP第三季整體毛利率為30.9%，較2023年提高94個基點。總的來說，我對我們的毛利率和過去七個季度的穩定改善感到滿意。與 2023 年第三季相比，第三季的 SG&A 增加了 1,680 萬美元。SG&A，佔銷售額的百分比從 23 年第三季的 21.4% 上升到 24 年第三季的 22.5%。SG&A 持續反映我們對員工的投資和成長策略，以及技術和流程的改進，以提高未來的效率。

As always, it is my privilege to share DXP's financial results on behalf of our DXPeople. DXP's overall operating income margin was 8.4% or $39.6 million, which includes corporate expense and amortization. This reflects an 18 basis point decline in margin versus Q3 of 2023. We still feel there is opportunity in our operations to be more efficient, and we have chosen to invest in the business via people and our operations as we have been focused on growth.

一如既往，我很榮幸能代表我們的 DXPeople 分享 DXP 的財務表現。DXP 的整體營業利潤率為 8.4%，即 3,960 萬美元，其中包括公司費用和攤銷。這反映了利潤率較 2023 年第三季下降了 18 個基點。我們仍然認為我們的營運有機會提高效率，並且我們選擇透過人員和營運來投資業務，因為我們一直專注於成長。

Service Centers operating income margins were 14.6%. IPS' operating income margins were 20.3%. And Supply Chain Services operating income margins were 8.4%. Overall, DXP produced adjusted EBITDA of $52.4 million in the third quarter of 2024 versus $44 million in the same period of 2023. This turned into a year-over-year increase of $8.4 million or 19.1%. Adjusted EBITDA as a percent of sales was 11.1%, up 59 basis points versus Q3 of '23 and up 27 basis points versus Q2 of 2024.

服務中心營業利益率為14.6%。IPS 的營業利益率為 20.3%。供應鏈服務營業利益率為 8.4%。總體而言，DXP 在 2024 年第三季的調整後 EBITDA 為 5,240 萬美元，而 2023 年同期為 4,400 萬美元。年增 840 萬美元，成長 19.1%。調整後 EBITDA 佔銷售額的百分比為 11.1%，比 23 年第三季上升 59 個基點，比 2024 年第二季上升 27 個基點。

I am pleased by our performance in the third quarter. DXP continues to make great efforts and adapt as we grow and evolve DXP in a more diversified and less cyclical business. The next chapter, we still have substantial work to do to achieve our goals, but I am confident that the team will continue to execute and drive sales and profitability. We are growing sales more than the market and expect that into the near future.

我對我們第三季的表現感到滿意。隨著我們在更多元化和週期性較小的業務中成長和發展 DXP，DXP 繼續做出巨大的努力和適應。下一章，我們仍然有大量工作要做來實現我們的目標，但我相信團隊將繼續執行並推動銷售和獲利能力。我們的銷售額成長速度超過了市場，預計在不久的將來也會如此。

We continue to make progress on our growth strategies and our commitment to our customers is strong. We are driving growth and improvements at DXP. We look forward to navigating and working through the remainder of fiscal 2024 and launch into fiscal 2025, further developing (inaudible). We continue to build our capabilities to provide a technical set of products and services in all our markets. We make DXP very unique in our industry and gives us more ways to help our customers win.

我們的成長策略不斷取得進展，我們對客戶的承諾堅定。我們正在推動 DXP 的成長和改進。我們期待在 2024 財年的剩餘時間內開展工作並進入 2025 財年，進一步發展（聽不清楚）。我們不斷增強能力，在所有市場提供一整套技術產品和服務。我們使 DXP 在我們的行業中非常獨特，並為我們提供了更多幫助客戶獲勝的方法。

Finally, I would like to thank our DXPeople for continuing to remain 10% plus EBITDA margins and hitting a new quarter sales high in Q3. Let's do it again in Q4. Q3 was another great quarter as we continue to have success in 2024 and prepare to launch ourselves into 2025. We remain excited for what is next.

最後，我要感謝我們的 DXPeople 繼續保持 10% 以上的 EBITDA 利潤率，並在第三季創下新的季度銷售額新高。讓我們在第四季再做一次。第三季度是另一個偉大的季度，我們在 2024 年繼續取得成功，並準備在 2025 年邁進。我們對接下來的事情仍然感到興奮。

With that, I will now turn it back to Kent to review our financials in more detail.

現在，我將把它轉回肯特，更詳細地審查我們的財務狀況。

Thank you, David, and thank you to everyone for joining us for our review of the third quarter 2024 financial results. Q3 financial performance reflects DXP's ability to continue to successfully navigate through the market and execute and create value for all our stakeholders. Our third quarter results also reflect another record sales water work along with a new all-time high in adjusted EBITDA margins.

謝謝 David，也謝謝大家與我們一起回顧 2024 年第三季的財務表現。第三季的財務表現反映了 DXP 繼續成功駕馭市場、為所有利害關係人執行和創造價值的能力。我們第三季的業績也反映出銷售水工作再創紀錄，以及調整後 EBITDA 利潤率創下歷史新高。

As it pertains specifically to our third quarter, DXP's third quarter financial results reflect solid sales growth within IPS and continued strength within the energy and water bookings and backlog, along with an accelerating contribution from DXP Water. Year-to-date, in-line service center performance, marked by gross margin strength and stability and a pickup in sales performance from Q2 to Q3, continued contribution from acquisitions, along with closing an additional acquisition during the third quarter and closing two subsequent to the quarter or bringing the total completed year-to-date to seven acquisitions and consistent operating leverage leading to sustained adjusted EBITDA margins.

由於它具體涉及我們的第三季度，DXP 第三季度的財務業績反映了 IPS 的強勁銷售成長、能源和水預訂和積壓的持續強勁，以及 DXP Water 的加速貢獻。年初至今，服務中心業績表現一致，以毛利率強勁和穩定以及第二季度至第三季度銷售業績的回升為標誌，收購持續貢獻，同時在第三季度完成了一項額外收購，並完成了隨後的兩項收購到本季度或使年初至今完成的收購總數達到七項，並且持續的營運槓桿導致持續調整的 EBITDA 利潤率。

Total sales for the third quarter increased 6% sequentially to a record $472.9 million, acquisitions that have been with DXP for less than a year, contributed $28.5 million in sales during the quarter. Average daily sales for the third quarter were $7.39 million per day versus $6.96 million per day in Q2 and $6.66 million per day in Q3 2023. Adjusting for acquisitions, average daily organic sales were $6.94 million per day for the third quarter of 2024 versus $6.59 million per day during the third quarter of 2023. That said, the average daily sales trend during the quarter went from $6.62 million per day in July to $8.77 million per day in September, reflecting a quarter-end push and benefit from acquisitions as we closed out the third quarter.

第三季總銷售額環比成長 6%，達到創紀錄的 4.729 億美元，與 DXP 合作不到一年的收購為該季度銷售額貢獻了 2,850 萬美元。第三季的日均銷售額為 739 萬美元，而 2023 年第二季為 696 萬美元，第三季為 666 萬美元。調整收購後，2024 年第三季的平均每日有機銷售額為 694 萬美元，而 2023 年第三季為 659 萬美元。也就是說，該季度的平均每日銷售額趨勢從 7 月的每天 662 萬美元增至 9 月的每天 877 萬美元，反映出季末的推動以及我們在第三季結束時從收購中受益。

In terms of our business segments, Innovative Pumping Solutions grew 22.42% sequentially and 52.34% year-over-year. This was followed by service centers growing 3.6% sequentially and sales increasing 7.6% year-over-year. Supply Chain Services grew 0.94% sequentially and increased 0.69% year-over-year. In terms of Innovative Pumping Solutions, we continue to experience increases in the energy-related bookings and backlog as well as the water and wastewater bookings and backlog.

就業務板塊而言，創新泵送解決方案季增22.42%，年增52.34%。其次是服務中心季增 3.6%，銷售額年增 7.6%。供應鏈服務季增 0.94%，年增 0.69%。在創新泵送解決方案方面，我們的能源相關預訂和積壓以及水和廢水處理預訂和積壓繼續增加。

Our Q3 energy-related average backlog grew 39.1% over our Q2 average backlog and continues to be ahead of all our averages. It is worth noting that our Q3 energy backlog includes a significant project win that is currently estimated to meaningfully impact our sales performance in Q1 or Q2 of next year. Adjusting for this project, our Q3 energy backlog grew 8.9% sequentially. The conclusion continues to remain that we are trending meaningfully above all notable sales levels and we're moving towards 2018 and 2019 levels based upon where our backlog stands today.

我們第三季能源相關的平均積壓訂單比第二季的平均積壓訂單增加了 39.1%，並且繼續領先我們所有的平均值。值得注意的是，我們第三季的能源積壓包括一個重大項目的勝利，目前預計該項目將對我們明年第一季或第二季的銷售業績產生重大影響。在該項目進行調整後，我們第三季的能源積壓訂單季增了 8.9%。結論仍然是，我們的趨勢明顯高於所有顯著的銷售水平，並且根據我們今天的積壓情況，我們正在朝著 2018 年和 2019 年的水平邁進。

On a nine-month comparative basis, our native energy IPS business is up 31.1% year-over-year. We expect this to continue for the remainder of 2024. We also see strength in our IPS Water backlog as it continues to grow due to a combination of organic and acquisition additions.

與 9 個月的比較相比，我們的本土能源 IPS 業務年增 31.1%。我們預計這種情況將持續到 2024 年剩餘時間。我們也看到了 IPS Water 積壓訂單的實力，由於有機和收購的增加，積壓訂單不斷增長。

In terms of our service centers, our service center performance reflects our internal growth initiatives, along with our diversified and evolving end market dynamics. On a comparative basis, our third quarter of 2024 is now our strongest quarter within service centers over the last seven quarters and set a new sales high watermark. Regions within our Service Center business segment, which experienced year-over-year sales growth include the South Rockies, Southeast, Southwest, Alaska and North Central. From a product perspective, we also experienced strength in our US safety services and metalworking product divisions and Canadian rotating equipment, which is all great to see [points] to strengthen our energy markets and/or exposure.

就我們的服務中心而言，我們的服務中心績效反映了我們的內部成長計劃，以及我們多元化和不斷發展的終端市場動態。相較之下，我們 2024 年第三季度是過去七個季度中我們服務中心表現最強勁的季度，並創下了新的銷售高水位。我們的服務中心業務部門的銷售年增的地區包括南落基山脈、東南部、西南部、阿拉斯加和中北部。從產品角度來看，我們在美國安全服務和金屬加工產品部門以及加拿大旋轉設備方面也表現出了實力，這對於加強我們的能源市場和/或曝光度來說都是很高興的。

As discussed in Q2, Supply Chain Services sales continue to perform in line with the performance we experienced in the second half of 2023. Supply Chain Services sales grew 0.94% sequentially and increased 0.69% year-over-year. Our results have been impacted by facility closures with existing customers as well as the streamlining efficiency we bring to our customers that we mentioned back in Q4 of last year.

正如第二季所討論的，供應鏈服務銷售的表現繼續與我們在 2023 年下半年的表現一致。供應鏈服務銷售額較上季成長 0.94%，較去年同期成長 0.69%。我們的業績受到現有客戶設施關閉以及我們在去年第四季度提到的為客戶帶來的精簡效率的影響。

As David mentioned in terms of our outlook, we are anticipating an increase in new accounts implemented in Q4 of this year and Q1 of next year. SCS has also created a customer care model that focuses on remote technologies without the need for a full-time on-site presence. Additionally, as we go into fiscal 2025, SCS will focus on extending DSP services and repair offerings for rotating equipment and safety services to our existing customers, leveraging the broader DXP capabilities. We anticipate this could happen in early 2025.

正如大衛在展望中提到的那樣，我們預計今年第四季和明年第一季實施的新帳戶將會增加。SCS 還創建了一種專注於遠端技術的客戶服務模式，無需全職現場服務。此外，進入 2025 財年，SCS 將專注於利用更廣泛的 DXP 功能，向現有客戶擴展旋轉設備和安全服務的 DSP 服務和維修服務。我們預計這可能會在 2025 年初發生。

Turning to our gross margins. DXP's total gross margins were 30.89%, a 94 basis point improvement over Q3 of 2023. This improvement is attributed to strength in gross profit margins within Service Centers or a 99 basis point improvement from Q3 of last year. Additionally, the accretive contribution from acquisitions at a higher overall relative gross margin versus our base DXP business helped drive consistent IPS gross margins. Acquisitions continue to be accretive to both our gross and operating margins. That said, from a segment mix sales contribution, Service Centers contributed 66.99% Innovative Pumping Solutions 18.99% and Supply Chain Services was 14.01%. IPS has notably contributed more to the overall mix of DXP going from 15% of sales in Q1 to 19% in Q3.

轉向我們的毛利率。DXP 的總毛利率為 30.89%，較 2023 年第三季提高 94 個基點。這項改善歸因於服務中心毛利率的增強，較去年第三季提高了 99 個基點。此外，與我們的基本 DXP 業務相比，以更高的整體相對毛利率進行收購所帶來的增值貢獻有助於推動 IPS 毛利率的穩定。收購繼續增加我們的毛利率和營業利潤。也就是說，從細分市場組合銷售貢獻來看，服務中心貢獻了 66.99%，創新泵送解決方案貢獻了 18.99%，供應鏈服務貢獻了 14.01%。IPS 對 DXP 整體銷售額的貢獻明顯更大，從第一季的 15% 上升到第三季的 19%。

In terms of operating income, combined, all three business segments increased 64 basis points sequentially in business segment operating income margins are $6.9 million versus the second quarter of this year. This primarily was driven by improvements in operating income margins across Service Centers and IPS, but more notably within IPS. The improvement in Innovative Pumping Solution reflects the impact of our water and wastewater acquisitions at a higher relative operating income margin and a growing percentage of revenue or sales mix, along with improvements in this quarter within our pump manufacturing operations.

就營業收入而言，所有三個業務部門合計比今年第二季度增長了 64 個基點，業務部門的營業利潤率為 690 萬美元。這主要是由於服務中心和 IPS 的營業收入利潤率的提高，但更值得注意的是 IPS 內部的營業利潤率的提高。創新泵送解決方案的改進反映了我們以較高的相對營業利潤率進行水和廢水收購的影響以及收入或銷售組合不斷增長的百分比，以及本季度我們泵製造業務的改進。

DXP Water has gone from 28% of sales in Q1 of 2023 to over 43% of sales of IPS in the third quarter of 2024. Total DXP operating income was $39.6 million in the third quarter or 8.4% of sales versus $35.9 million or 8.6% of sales in the third quarter of 2023.

DXP Water 佔 IPS 銷售額的比例已從 2023 年第一季的 28% 上升到 2024 年第三季的 43% 以上。第三季 DXP 總營業收入為 3,960 萬美元，佔銷售額的 8.4%，而 2023 年第三季為 3,590 萬美元，佔銷售額的 8.6%。

Our SG&A for the quarter increased $16.8 million from Q3 of 2023 and $6.1 million from Q2 of this year to $106.5 million. The increase reflects the growth in the business and associated incentive compensation and DXP investing in its people through merit and pay raises. Additionally, this also reflects some unique onetime cost and expense associated with our horizontal pump offering. SG&A as a percentage of sales increased to 112 basis points year-over-year to 22.52% of sales and was essentially flat sequentially from Q2 of this year.

我們本季的銷售及管理費用 (SG&A) 較 2023 年第三季增加了 1,680 萬美元，較今年第二季增加了 610 萬美元，達到 1.065 億美元。這一成長反映了業務的成長以及相關的激勵性薪酬和 DXP 透過績效和加薪對員工進行的投資。此外，這也反映了與我們的臥式幫浦產品相關的一些獨特的一次性成本和費用。SG&A 佔銷售額的百分比年增 112 個基點，達到銷售額的 22.52%，與今年第二季相比基本持平。

Turning to EBITDA. Q3 2024 adjusted EBITDA was $52.4 million. Adjusted EBITDA margins were 11.1%. As discussed in Q1, we expect this to pick up and margins have improved as we've moved through the first half and into the second half of 2024. We continue to benefit from the fixed cost SG&A leverage we experienced as we grow sales as well as the margin accretion and growing scale of the DXP Water acquisitions.

轉向 EBITDA。2024 年第三季調整後 EBITDA 為 5,240 萬美元。調整後 EBITDA 利潤率為 11.1%。正如第一季所討論的，隨著我們從 2024 年上半年進入下半年，我們預計這一情況將會回升，並且利潤率將會有所改善。隨著銷售額的成長、利潤的增加以及 DXP Water 收購規模的不斷擴大，我們繼續受益於固定成本 SG&A 槓桿。

In terms of EPS, our net income for Q3 was $21.1 million. Our earnings per diluted share for Q3 was $1.27 per share versus $0.93 per share last year. Conservatively adjusting for onetime items, adjusted earnings per diluted share for Q3 2024 was $1.43 per share.

就每股收益而言，我們第三季的淨利潤為 2,110 萬美元。第三季稀釋後每股收益為每股 1.27 美元，去年為每股 0.93 美元。在一次性專案進行保守調整後，2024 年第三季調整後每股攤薄收益為每股 1.43 美元。

Turning to the balance sheet and cash flow. In terms of working capital, our working capital increased to $11.6 million from June and $26.5 million from December to $298.6 million. As a percentage of the last 12-month sales, this amounted to 17.2%. This is an uptick from where we have been and reflects the impact of acquisitions and an increase in DXP's capital project work. As we move into fiscal 2025, we will grow into the working capital as percent of sales and particularly the impact from recent acquisitions.

轉向資產負債表和現金流量。在營運資金方面，我們的營運資金從 6 月增至 1,160 萬美元，從 12 月增至 2,650 萬美元，增至 2.986 億美元。佔過去 12 個月銷售額的百分比為 17.2%。這比我們之前的情況有所上升，反映了收購的影響和 DXP 資本項目工作的增加。當我們進入 2025 財年時，我們將增加營運資本佔銷售額的百分比，特別是最近收購的影響。

In terms of cash, we had $35 million in cash on the balance sheet as of September 30. This is a decrease of $104.7 million compared to the end of Q1 and reflects our acquisition activity as well as an additional $5 million in share repurchases in Q3.

就現金而言，截至 9 月 30 日，我們的資產負債表上有 3,500 萬美元現金。與第一季末相比減少了 1.047 億美元，反映了我們的收購活動以及第三季額外 500 萬美元的股票回購。

In terms of CapEx, CapEx in the third quarter was $4 million or a decrease of $4.9 million compared to Q2 and a $2.5 million increase versus Q3 of 2023. We continue to expect CapEx to pick up in 2024 versus 2023. We are continuing to make investments in our business, software, our facilities and operations for our employees. As we move forward, we will continue to invest in the business as we focus on growth and the next evolution of phase of DXP.

資本支出方面，第三季資本支出為 400 萬美元，較第二季減少 490 萬美元，較 2023 年第三季增加 250 萬美元。我們繼續預期 2024 年資本支出將較 2023 年增加。我們將繼續對我們的業務、軟體、設施和員工營運進行投資。隨著我們的前進，我們將繼續投資於該業務，重點關注成長和 DXP 的下一階段的發展。

Turning to free cash flow. Free cash flow for the third quarter was $24.4 million versus $38.3 million in Q3 of 2023. This primarily reflects the impacts from our project work, which we have highlighted in the past as requiring investments in inventory, product and cost and accessibilities. That said, we continue to focus on tightly managing this aspect of our business from a cash flow perspective and look to align billings with the investments, which slid backwards on us during the third quarter (inaudible) increasing or impacting us by $13.1 million during Q3.

轉向自由現金流。第三季的自由現金流為 2,440 萬美元，而 2023 年第三季為 3,830 萬美元。這主要反映了我們專案工作的影響，我們過去曾強調過，需要對庫存、產品、成本和可及性進行投資。也就是說，我們繼續專注於從現金流角度嚴格管理我們業務的這方面，並尋求使賬單與投資保持一致，投資在第三季度出現倒退（聽不清），在第三季度增加或影響了我們1,310 萬美元。

Return on invested capital. Our ROIC at the end of the third quarter was 36% and reflects the improvements in EBITDA and the operating leverage inherent within the business. Additionally, it also points to our recent acquisitions performance and their positive contribution and accretive impact to both gross profit and EBITDA.

投資資本報酬率。第三季末我們的 ROIC 為 36%，反映了 EBITDA 和業務固有營運槓桿的改善。此外，它還表明了我們最近的收購業績及其對毛利和 EBITDA 的積極貢獻和增值影響。

As of September 30, our fixed charge coverage ratio was [1.7:1], and our secured leverage ratio was [2.5: 1] with a covenant EBITDA for the last 12 months of $200.7 million. Total debt outstanding on September 30 was $544.5 million. In terms of liquidity, as of the third quarter, we were undrawn on our ABL with [$3.4 million] in letters of credit with $131.6 million of availability and liquidity of $166.6 million, including $35 million in cash. Subsequent to the quarter end, we successfully reduced borrowing cost by 100 basis points of raised an incremental $105 million. DXP is positioning itself to continue to execute on our acquisition strategy.

截至 9 月 30 日，我們的固定費用覆蓋率為 [1.7:1]，我們的擔保槓桿率為 [2.5:1]，過去 12 個月的契約 EBITDA 為 2.007 億美元。截至 9 月 30 日，未償債務總額為 5.445 億美元。在流動性方面，截至第三季度，我們的 ABL 未提取信用證 [340 萬美元]，可用資金為 1.316 億美元，流動性為 1.666 億美元，其中包括 3500 萬美元現金。季度末後，我們成功地將借貸成本降低了 100 個基點，並籌集了 1.05 億美元的增量資金。DXP 的定位是繼續執行我們的收購策略。

In terms of acquisitions, we have closed seven acquisitions year-to-date, including two subsequent to the quarter end, and we will look to close at minimum another two before the end of the first quarter. DXP's acquisition pipeline continues to remain active and the market continues to present compelling opportunities. That said, we remain comfortable with our ability to execute on our pipeline and valuations continue to remain reasonable. Regarding capital allocation, we repurchased or returned $5 million to shareholders via share repurchases in Q3. We finished our previous program, and we have put in place a new [$85 million] or 2.5 million shares share repurchase program. As previously mentioned, we will continue to be opportunistic and support our shareholders as we move through the cycles.

在收購方面，我們今年迄今已完成七項收購，其中包括季度末後的兩項收購，我們希望在第一季末之前至少完成另外兩項收購。DXP 的收購管道繼續保持活躍，市場繼續提供引人注目的機會。也就是說，我們對我們的管道執行能力仍然感到滿意，並且估值繼續保持合理。在資本配置方面，我們在第三季透過股票回購向股東回購或返還了500萬美元。我們完成了先前的計劃，並制定了新的 [8,500 萬美元] 或 250 萬股股票回購計劃。如前所述，我們將在整個週期中繼續保持機會主義並支持我們的股東。

In summary, we are excited about the future and building the next chapter. We will keep our eyes focused on those things we can control and what is ahead of us. We are excited because there is substantial value embedded in DXP, and we continue to believe that what is next is greater than what we have already achieved. Lastly, it is worth mentioning that as of Q3 2024, we have remediated and cured all our existing material weaknesses noted in our controls opinion under Item 4, Controls and Procedures as of September 30, 2024.

總而言之，我們對未來感到興奮，並正在譜寫新的篇章。我們將把注意力集中在我們可以控制的事情以及我們前面的事情上。我們很興奮，因為 DXP 蘊含著巨大的價值，我們仍然相信接下來的目標會比我們已經取得的成就更大。最後，值得一提的是，截至2024 年第三季度，我們已對截至2024 年9 月30 日第4 項「控制和程序」下的控制意見中指出的所有現有重大缺陷進行了補救和修復。

Thank you to our DXP team for all their effort and commitment to remediate and enhance the financial controls and procedures at DXP. We look forward with great confidence to a future of sustained growth and market outperformance. We will now turn the call over for questions.

感謝我們的 DXP 團隊為糾正和加強 DXP 的財務控制和程序所做的一切努力和承諾。我們對未來的持續成長和市場表現充滿信心。我們現在將轉交電話詢問問題。

(Operator Instructions) Tommy Moll, Stephens.

（操作員說明）Tommy Moll，Stephens。

On the acquisition front, I want to make sure I heard you correctly, Kent. So there were five year-to-date through when you closed the books third quarter, then I guess there were two more for a total of seven in October? And then I think I heard you say another two more either by year-end or by first quarter end?

在收購方面，我想確保我沒有聽錯，肯特。所以，當你第三季結帳時，今年迄今為止有五個，那麼我猜十月份還有兩個，總共七個？然後我想我聽到你說在年底或第一季末再增加兩個？

Yes, Tommy, I'll walk you through that, and thank you for joining us today. We closed five as of the end of Q3. And then subsequent to the quarter end, just this past Friday, meaning November 1, we closed an additional two acquisitions. So that brings us to seven year-to-date. And we'll be putting out a press release in the next 24 to 36 hours regarding those.

是的，湯米，我將引導您完成這個過程，感謝您今天加入我們。截至第三季末，我們關閉了五個。然後在季度結束後，就在上週五，也就是 11 月 1 日，我們完成了另外兩項收購。到目前為止，我們已經有七年了。我們將在接下來的 24 到 36 小時內發布有關這些內容的新聞稿。

And then my comments in the script also pointed to that, obviously, we still got a strong pipeline, and we anticipate closing another two, if you will, before the end of Q1 of next year.

然後我在腳本中的評論還指出，顯然，我們仍然擁有強大的管道，如果您願意的話，我們預計會在明年第一季末之前關閉另外兩個管道。

Got it. And anything you can share at this point on the two that you closed, first the month, even just in terms of end markets or any other [contours] that you can share now?

知道了。對於本月第一個月關閉的兩家公司，您現在可以分享什麼，甚至只是終端市場或您現在可以分享的任何其他[輪廓]？

Yes. What I would share today on the call is -- they were both more typical in the smaller size of our acquisition program. One was another water wastewater acquisition in the Nebraska market. So we're excited to get a little bit of a foothold in Nebraska. And then the other one was a vacuum pump acquisition in California, so continuing to grow our California region, but it's on the vacuum pump side, which means there's more end market diversification. So everything from semiconductors, food and beverage, pharmaceuticals, et cetera.

是的。我今天在電話會議上要分享的是——它們在我們規模較小的收購計畫中更為典型。其中之一是在內布拉斯加州市場的另一次水廢水收購。因此，我們很高興在內布拉斯加州獲得一點立足點。另一個是在加州收購真空泵，因此繼續發展我們的加州地區，但它是在真空泵方面，這意味著終端市場更加多元化。從半導體、食品和飲料、藥品等等，一切都是如此。

So if we roll it all together, I'm going to pivot just to the fourth quarter here, which is always tricky from a revenue standpoint to try to have a view on. But if you just -- if you include some of the benefits of the acquisitions that you announced and you look at the $473 million you did in the third quarter, does it feel like maybe flat, up or down quarter-over-quarter into Q4, inclusive of the acquisitions that you've announced, that obviously, we haven't seen how big they are yet, but just trying to roll all that together to set an expectation?

因此，如果我們將所有內容放在一起，我將只轉向第四季度，從收入的角度來看，試圖了解這一點總是很棘手的。但如果你把你宣布的收購帶來的一些好處算進去，看看第三季度的 4.73 億美元，你會覺得第四季度季度環比持平、上升還是下降，包括您宣布的收購，顯然，我們還沒有看到它們有多大，但只是試圖將所有這些整合在一起以設定預期？

Yes. No, I get it. We don't formally provide guidance, but we have our KPIs, including sales per business day. I think, Tommy, the way to think about it as we go is, yes, there's fewer days as we head into (inaudible) so I think everybody's got to factor that in.

是的。不，我明白了。我們不正式提供指導，但我們有 KPI，包括每個工作日的銷售額。湯米，我認為，我們的思考方式是，是的，我們進入（聽不清楚）的日子越來越少，所以我認為每個人都必須考慮到這一點。

That said, let me walk you through the sales per business day trend. And then if you have a follow-up, we can go from there. But I always think that as a broad KPI kind of directionally kind of -- can point people in a certain direction. And then David may have some comments. But -- if you start off and just let's just go back to May and then I'll pull it forward. May, we were at $6.43 million per day; June, $7.63 million per day; July, $6.62 million per day; August, $6.89 million per day; September, $8.77 million per day; and in October, we've got $6.99 million per day. So that's kind of the sales per business day trend. But once again, we will have fewer days and you get step between the days after those holidays as well, practically.

也就是說，讓我帶您了解每個工作日的銷售趨勢。如果您有後續行動，我們就可以從那裡開始。但我始終認為，作為一種具有方向性的廣泛 KPI，可以為人們指明某個方向。然後大衛可能會有一些評論。但是——如果你一開始就讓我們回到五月，然後我會把它向前推進。5 月份，我們每天的收入為 643 萬美元； 6 月，每天 763 萬美元； 7 月，每天 662 萬美元； 8 月，每天 689 萬美元； 9 月，每天 877 萬美元； 10 月份，我們每天的收入為 699 萬美元。這就是每個工作日的銷售額趨勢。但再一次，我們的日子將會減少，而且實際上，您在假期之後的日子之間也會有步驟。

And then I would just add that historically, the fourth quarter is a little softer. And I'm not sure that, I guess from our perspective, bookings are still really strong. Our backlog is strong, but I'm not necessarily thinking what we'll ship or recognize as revenue in the fourth quarter -- we'll -- I think it will be a little soft.

然後我想補充一點，從歷史上看，第四季的情況有點疲軟。我不確定，從我們的角度來看，預訂量仍然非常強勁。我們的積壓訂單很豐富，但我不一定會考慮我們將在第四季度交付或確認為收入的內容 - 我們會 - 我認為這會有點疲軟。

And Kent, I appreciate the monthly cadence progression you provided there. Just to confirm, those are all on an as-reported basis, so that would be inclusive of whatever acquisitions had closed during those months?

肯特，我很欣賞你在那裡提供的每月節奏進展。只是為了確認一下，這些都是基於報告的基礎上的，所以這將包括這幾個月期間完成的所有收購？

Yes. And two more recent ones (inaudible) once again on the smaller end, we'll have more detail when we put the press releases out. But call it, combined together less than $10 million in sales for those two on an annual basis, so.

是的。還有兩個最近的（聽不清楚）再次在較小的一端，當我們發布新聞稿時，我們將提供更多細節。但總而言之，這兩家公司的年銷售額加起來還不到 1000 萬美元，所以。

Okay. That's very helpful. And just in terms of the days for Q4, do you know what you're dealing in this year? Should it be fairly similar number of selling days as in the past?

好的。這非常有幫助。就第四季而言，您知道今年會發生什麼嗎？銷售天數是否應與過去相當相似？

Yes. I think we're coming in at around -- once again, just [61% to 62%], just practical I think at 62, but how the holidays fall on (inaudible).

是的。我認為我們會在大約 - 再次，只是 [61% 到 62%]，只是實用我認為在 62 歲，但假期是如何到來的（聽不清楚）。

Yes. Okay. Thank you unpacking that. That's helpful. David, you commented on the margins, which were again in the double-digit range in Q3, and I think you -- I heard you say let's do it again here in Q4. So I just want to make sure I heard that correctly that there isn't any kind of reason that should not be the case again in Q4 and also just get your latest and greatest on that performance. You've been solidly in the double digits for a number of quarters now. There are some acquisition benefits in there, but if there's any kind of operating tailwinds otherwise, you want to call out, please do?

是的。好的。謝謝你把它拆開。這很有幫助。大衛，你對利潤率發表了評論，第三季度的利潤率再次達到兩位數，我想你——我聽到你說讓我們在第四季度再做一次。因此，我只是想確保我聽到的是正確的，沒有任何理由不應該在第四季度再次出現這種情況，並且只是了解您最新和最好的表現。現在好幾季你的業績一直穩定在兩位數。其中有一些收購好處，但如果有任何其他營運順風，您想大聲喊出來，請這樣做嗎？

Sure. And I assume you're talking about EBITDA margins.

當然。我猜你說的是 EBITDA 利潤率。

Yes, adjusted EBITDA.

是的，調整後的 EBITDA。

Yes, adjusted EBITDA. Yes, I -- we're not -- if you noticed, SG&A was probably as a percent of sales was a little high. And so we're -- I think it's important to note that we're not trying to manage the business to maximize profits at the expense of sales and that -- in quite the opposite. We have a lot of bets on the table to grow sales and some of those are working out really nicely, as you can see, and then some of them are a little slower and taking bigger investments.

是的，調整後的 EBITDA。是的，我——我們不是——如果你注意到的話，SG&A 可能佔銷售額的百分比有點高。因此，我認為重要的是要注意，我們並不是試圖以犧牲銷售為代價來管理業務以實現利潤最大化，而是相反。我們為了增加銷量做了很多賭注，其中一些的效果非常好，正如你所看到的，但另一些則速度稍慢並需要更大的投資。

So I think that that's good news. The good news is that we're managing the business for growth and not trying to cut every little nickel and dime of expense out. So I don't think there's any real headwind that will make expenses go down. And I don't think there's any reason to think that EBITDA margins are going to go down either. Some of the EBITDA margin growth has been in the water and wastewater area, which is a real focal point of what we're trying to do and our traditional pump business. So we continue to want to grow those two things. So the acquisitions we're doing are very accretive on EBITDA margins. And so we're excited about that. And -- and so I'm like, okay, guys, let's keep up the good work and let's do it again.

所以我認為這是個好消息。好消息是，我們正在管理業務以實現成長，而不是試圖削減每一分錢和一毛錢的開支。因此，我認為沒有任何真正的阻力會導致開支下降。我認為也沒有任何理由認為 EBITDA 利潤率會下降。部分 EBITDA 利潤成長來自水和廢水領域，這是我們正在努力做的事情和我們傳統泵浦業務的真正焦點。因此，我們繼續希望發展這兩件事。因此，我們正在進行的收購非常能增加 EBITDA 利潤。所以我們對此感到興奮。所以我想，好吧，夥計們，讓我們繼續努力，讓我們再做一次。

David. This one is probably for Kent. Just to unpack some of the refinancing you did there in October, Kent. Your gross debt will be up or is up, I guess, now but then the cost of that debt was reduced, I think, by 100 basis points. So are you able to help us dial in what you're thinking just for interest expense here in the fourth quarter? And then to the extent there's a lot of noise in that number with onetime fees that are going to fall away, can you just calibrate us on what run rate would look like in the current SOFR environment?

大衛.這可能是給肯特的。只是為了解開你十月份在那裡進行的一些再融資，肯特。我猜想，你的總債務現在會增加或正在增加，但後來債務成本降低了 100 個基點。那麼，您能否幫助我們了解您對第四季度利息支出的想法？然後，在這個數字中存在很多噪音，一次性費用將會下降，您能否根據當前 SOFR 環境中的運行率來校準我們？

Yes. No, absolutely, Tommy. I think the absolute run rate interest expense you're seeing even with the incremental, the punch line will be roughly the same. We're running around, I'll call it, $15.5 million to $16 million a quarter. And I don't think that will change. The benefit we got obviously was the 100 basis points reduction as well as the dry powder ride, and that's really to fuel our acquisition activity. And so I think that's the way to think about it if you're thinking about just in terms of how it impacts the P&L.

是的。不，絕對不，湯米。我認為，即使增量，你看到的絕對運行利率利息費用也將大致相同。我稱之為每季 1550 萬至 1600 萬美元。我認為這不會改變。我們獲得的好處顯然是 100 個基點的降低以及乾粉之旅，這確實促進了我們的收購活動。所以我認為，如果你只考慮它如何影響損益，那就應該這樣思考。

Yes, they will be the one time. We have to go through the analysis. We haven't completed it yet, where we look at the existing issuance cost and some of it you're right through. And obviously, we'll be clear about that in Q4, but we haven't necessarily gone through that 100%. But I think the point you're getting at is you want to know kind of the run rate interest costs (inaudible) is fair. Keep in mind, the facility still amortizes 1% per year. So as time goes on, we'll be paying down the facility at 1% per year. And so -- if that answers your question, Tommy, that's I think how we think about it. It was favorable market conditions and with our pipeline and then kind of with one of the acquisitions we did earlier this year, being pretty significant and a contributor in this quarter, it felt right to just reprime if you will, the balance sheet and going to 2025, putting us a position to do something similar, so.

是的，他們將是唯一一次。我們必須進行分析。我們還沒有完成它，我們會查看現有的發行成本以及您已經完成的一些成本。顯然，我們會在第四季清楚這一點，但我們不一定能做到 100%。但我認為您要表達的意思是您想知道運行利率利息成本（聽不清楚）是否公平。請記住，該設施每年仍攤提 1%。因此，隨著時間的推移，我們將以每年 1% 的利率支付貸款首付。所以——如果這回答了你的問題，湯米，我想這就是我們的想法。這是有利的市場條件，我們的管道，然後是我們今年早些時候進行的一項收購，非常重要，並且是本季度的貢獻者，如果您願意的話，重新啟動資產負債表並進行調整感覺是正確的2025 年，我們將能夠做類似的事情，所以。

Sure. And on that front, Kent, with regard to capital deployment. Did I hear you correctly say that seller expectations currently appear reasonable? I realize that's not specific to any particular deal. But just in general, did I hear you provide that characterization?

當然。在這方面，肯特，關於資本部署。我是否正確地聽到您所說，目前賣家的期望似乎是合理的？我意識到這並不是針對任何特定交易。但總的來說，我聽說你提供了這種描述嗎？

Yes, I think that's fair, right? I think sellers in general understood we were and still are relatively speaking in a higher interest rate environment. And so valuations, I think from what we see have been fair and reasonable and our pipeline continues to reflect that. And so -- we don't feel like we're having to be too aggressive, obviously, but the businesses that are growing and are highly strategic in many ways, the DXP, we're willing to push the valuation pendulum a little bit more. But all in all, I think we're still buying on a blended average across all our deals, where we've always historically been and what we've communicated to the market, so.

是的，我認為這很公平，對嗎？我認為賣家普遍理解我們過去並且仍然處於相對較高的利率環境中。因此，我認為從我們所看到的來看，估值是公平合理的，我們的管道繼續反映了這一點。因此，顯然，我們並不覺得我們必須過於激進，但對於那些正在成長且在很多方面都具有高度戰略意義的業務，DXP，我們願意稍微推動估值擺幅更多的。但總而言之，我認為我們仍在所有交易中以混合平均數進行購買，這是我們歷史上一直以來的情況以及我們向市場傳達的信息，所以。

Last one for me. David, if you look back over the last handful of years, you've been at this capital deployment program for some time where you're diversifying your end markets, signing pockets of faster growth, higher margin, et cetera, et cetera. Close a number of deals this year, more in the pipeline. One topic that doesn't often get discussed is whether there may ever be a point in the future where you'd be a seller of any part of your portfolio. So if you just play it forward and you keep shaping the portfolio as you have been now for some time, do you ever look up and there's a situation where a piece it would make sense to pry out of the portfolio or if the answer is too early to tell, that's fine, too. I just -- I was reflecting on the execution here over multiple years and the business today looks a lot different than it has in prior cycles. So I figure it is worth an ask?

最後一張給我。大衛，如果你回顧過去幾年，你已經參與這個資本部署計劃一段時間了，你正在使你的終端市場多樣化，簽署一些更快增長、更高利潤率的項目，等等。今年完成了多項交易，還有更多交易正在醞釀中。一個不常被討論的話題是，在未來某個時刻，你是否會成為你的作品集的任何部分的賣家。因此，如果你只是向前推進，並像現在一樣持續塑造投資組合，你是否曾經抬頭看看，是否存在一種情況，從投資組合中撬出一塊是有意義的，或者如果答案太早點說，那也很好。我只是——我多年來一直在反思這裡的執行情況，今天的業務看起來與之前的周期有很大不同。所以我覺得值得一問嗎？

Well, I appreciate you making that comment, and I appreciate you recognize the diversification that we've been doing and so I feel really good about that, and I feel really good about the fact that we're not going to have any big downturns or anything like that, that are hard on this. So I feel really strong about DXP and where it is today. That said, I think you asked a very good question, one that we consider at most Board meetings, and that is that are there some pieces that really don't fit the new direction or maybe they don't [fit] the right financial matrix either that we're trying to accomplish. And so -- the answer to your question is, yes. And again, I think where we land is that these -- everything we're doing makes pretty decent money. And so it's not like we're trying to sell something that's just a dog over here, and so we don't have any dogs. If we do, they're all really nice dogs.

嗯，我很感謝你發表這樣的評論，也很感謝你認識到我們一直在做的多元化，所以我對此感覺非常好，而且我對我們不會出現任何大的衰退這一事實感到非常高興或類似的事情，這很難。因此，我對 DXP 及其今天的處境感到非常強烈。也就是說，我認為你問了一個非常好的問題，我們在大多數董事會會議上都會考慮這個問題，那就是是否有一些部分確實不適合新的方向，或者可能不適合正確的財務矩陣要么是我們想要完成的。所以——你的問題的答案是，是的。再說一遍，我認為我們所做的一切都賺了相當可觀的錢。所以我們並不是想賣一些只是狗的東西，所以我們沒有狗。如果我們這樣做的話，它們都是非常好的狗。

But anyway, the point besides my joke is that it's a consideration. And then because they're all performing to what they feel like they could do, and it's going well. It's just a timing issue. It's when do we think is the appropriate time to maximize selling something. And I'll be the first to admit that selling something has not been in my portfolio. It's not what David Little is all about of -- I don't -- I can't remember selling something. So I'm going to acquire and then I try to make it as pretty as I can. But there's some -- as we've gotten much, much bigger, there are thoughts around that.

但無論如何，除了我的玩笑之外，還有一點是，這是一個考慮因素。然後因為他們都在按照自己的意願行事，而且進展順利。這只是一個時間問題。我們認為什麼時候是最大化銷售商品的適當時機。我將是第一個承認出售東西不在我的投資組合中的人。這不是大衛·利特爾的全部意義——我不——我不記得賣過什麼東西。所以我要收購，然後盡我所能讓它變得漂亮。但有一些——隨著我們變得越來越大，人們對此有了一些想法。

Yes. The only thing I'd add there is, yes, obviously, from a fiduciary perspective, we look at it, but we're known in the marketplace as a buy and hold guy. And so we look at things from a fiduciary perspective, but we take it seriously because when sellers sell to us, that's part of the attraction of DXP, right? We're not like our competitors out there and we're not slipping every day. And so I just round out David's comments with that. It's -- we appreciate the question, but it's a delicate walk because one of the big differences for DXP in the marketplace is we're not private equity. We're not a lot of things. And so we take pride in that. So I'd just kind of add that ending touch there a little bit.

是的。我唯一要補充的是，是的，顯然，從信託的角度來看，我們看待它，但我們在市場上被稱為買入並持有的人。因此，我們從信託的角度看待事情，但我們認真對待它，因為當賣家向我們出售產品時，這就是 DXP 吸引力的一部分，對嗎？我們與我們的競爭對手不同，我們也不會每天都在下滑。所以我只是用這個來完善大衛的評論。我們很欣賞這個問題，但這是一個微妙的過程，因為 DXP 在市場上的最大區別之一是我們不是私募股權公司。我們並不是很多東西。因此我們為此感到自豪。所以我只是想在那裡添加一點結尾。

Noted, and I appreciate the insight from you both, and I'll turn it back.

注意到了，我很欣賞你們兩個的見解，我會轉回來的。

I will now turn the call back over to David Little, Chairman and CEO, for closing remarks.

現在，我將把電話轉回給董事長兼執行長戴維·利特爾 (David Little)，他將發表結束語。

And first, Tommy, I would just ask if there's anything else you would like to ask. We appreciate you and the things you do to cover us. If there's not, then -- thanks everybody for joining us today. Thanks to all our DXP people out there, thanks to all the acquisitions that we've done and those people that are joining our DXP team. I think they learn to appreciate DXP and how we operate. And we're all about growth. We're not about trying to whack expenses and take everybody -- just trying to maximize the last penny. That's not our style.

首先，湯米，我只想問你是否還有其他問題想問。我們感謝您以及您為報道我們所做的事情。如果沒有，那麼——感謝大家今天加入我們。感謝我們所有的 DXP 人員，感謝我們所做的所有收購以及加入我們 DXP 團隊的人們。我認為他們學會欣賞 DXP 以及我們的運作方式。我們的一切都是為了成長。我們並不是要試圖削減開支並帶走所有人——只是想最大限度地利用最後一分錢。那不是我們的風格。

I do appreciate Kent making a point that we're not a portfolio company buying and selling things. Typically, I think I will say again on a longer-term answer to what I was asking -- answering and that was that as we get bigger and bigger and bigger and move forward in a direction that's very positive, then is there some things that may need to be looked at.

我非常感謝肯特指出我們不是一家買賣東西的投資組合公司。通常情況下，我想我會再次對我所問的問題做出長期回答——答案是，隨著我們變得越來越大，並朝著非常積極的方向前進，那麼是否有一些事情可以改變？

So with that said, again, thank you all the DXP people for all you do. And let's finish the year strong and off into 2025. Here we go. Thanks.

話雖如此，再次感謝所有 DXP 人員所做的一切。讓我們以強勁的勢頭結束這一年，邁向 2025 年。開始了。謝謝。

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。