Company: DXPE
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001020710-25-000036
Chunk: 154

Company: DXP ENTERPRISES INC
Filing Date: 2025-03-10
Form: 10-K
Item: Item 7
Chunk 154
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 we require certain amounts of working capital to primarily fund inventories and accounts receivables. Additional cash is required for capital items for information technology, warehouse equipment, leasehold improvements, pump manufacturing and safety services equipment. We also require cash to pay our lease obligations, fund project work-in-process and to service our debt.

Cash

As of December 31, 2024 and 2023, we had cash of $148.3 million and $173.1 million, respectively. The decrease in cash was primarily due to less cash flow from operating activities and an increase in acquisitions and capital expenditures from 2023 to 2024, partially offset by increased borrowings under the Company’s Amended Senior Secured Term Loan B and lower volume of share repurchases compared to 2023. 

Cash Flows 

The following table summarizes our net cash flows provided by (used in) operating activities, investing activities, financing activities for the periods presented (in thousands, except percentages): 

Twelve Months Ended December 31,20242023ChangeChange %Net cash provided by (used in):Operating activities$102,211 $106,222 $(4,011)(4)%Investing activities(181,692)(22,647)(159,045)702 %Financing activities56,803 43,579 13,224 30 %Effect of foreign currency(2,122)(60)(2,062)3,437 %Net change in cash and restricted cash$(24,800)$127,094 $(151,894)(120)%

Operating Activities

The Company generated $102.2 million of cash in operating activities during the year ended December 31, 2024 compared to generating $106.2 million of cash during the prior year's corresponding period. The $4.0 million decrease in the amount of cash generated between the two periods was primarily driven by an increase in operating assets including trade accounts receivable partially offset by decreased inventory purchases and accrued expenses as compared to the prior period.

Investing Activities 

For the year ended December 31, 2024, net cash used in investing activities was $181.7 million compared to $22.6 million used in the corresponding period in 2023. The increase of $159.0 million was primarily driven by an increase in acquisition activities during 2024 compared to 2023.

Financing Activities

For the year ended December 31, 2024, net cash generated in financing activities was $56.8