Company: DXPE
Filing Date: 2025-04-30
Form Type: ARS
Source: 0001020710-25-000081
Chunk: 98

Company: DXP ENTERPRISES INC
Filing Date: 2025-04-30
Form: ARS
Chunk 98
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ization (“EBITDA”) achieved to the estimated EBITDA used in our forecasts. Table of Contents 73

Pro Forma Results of Operations (unaudited) The following unaudited supplemental pro forma results of operations for the Company which incorporate the acquisitions completed in 2024, 2023 and 2022, have been provided for illustrative purposes only and may not be indicative of the actual results that would have been achieved by the combined companies for the periods presented or that may be achieved by the combined companies in the future (in thousands). Years Ended December 31, (in thousands) 2024 2023 2022 Sales $ 1,856,860 $ 1,794,749 $ 1,513,743 Net income attributable to common shareholders $ 84,327 $ 82,738 $ 54,527 The pro forma combined results of operations for the years ended December 31, 2024, 2023, and 2022 were prepared by adjusting the historical results of the Company to include the historical results of the businesses acquired in each year as if the business combinations that occurred during each year had occurred as of the beginning of the comparable prior annual reporting period. 2023 Acquisitions During the second quarter of 2023, the Company acquired two businesses for a total of $11.7 million. We acquired these two businesses to expand our water & wastewater end-market by expanding into new geographic territories, enhance our product capabilities, and attract and retain talent. During the fourth quarter of 2023, the Company acquired a leading municipal and industrial pump sales, service, and repair business for $1.7 million. We acquired this company to enhance our end-markets as well as expand into additional geographic territories. Table of Contents 74

In aggregate, the acquisition-date fair value of the consideration transferred for the three businesses acquired in 2023 totaled $13.4 million. The three acquisitions contributed $7.6 million in Sales and $0.8 million in Net income attributable to common shareholders for the year ended December 31, 2023. The following table summarize the total consideration, the estimated fair values of the assets acquired and liabilities assumed at the acquisition date for the 2023 acquisitions: Q1 2023 Q2 2023 Q3 2023 Q4 2023 Total Total Acquisitions — 2 — 1 3 Cash payments $ — $ 9,235 $ — $ 1,502 $ 10,737