|   | [X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.  For the quarterly period ended March 31, 2009 |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | [   ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. | For the transition period from | to |
|--------|----------------------|-------------------------------------------------------------------------------------------|--------------------------------|----|

| Texas                                                          |   | 76-0509661                                                |
|----------------------------------------------------------------|--------|-----------------------------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification Number)                   |
|                                                           |   |                                                      |
| 7272 Pinemont, Houston, Texas 77040                            |   | (713) 996-4700                                            |
| (Address of principal executive offices)                       |   | Registrant’s telephone number, including area code. |

----

| DXP ENTERPRISES, INC., AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In Thousands, Except Share and Per Share Amounts)                                                                                                                                                                                                                          |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                          |   |   |   |
|                                                                                                                                                                                                                                                                                                                                          | March 31, 2009 |   | December 31, 2008 |
|      ASSETS                                                                                                                                                                                                                                                                                                          | (unaudited) |   |   |
| Current assets:                                                                                                                                                                                                                                                                                                                               |   |   |   |
|   Cash                                                                                                                                                                                                                                                                                                                              | $                    6,283 |   | $                     5,698 |
|   Trade accounts receivable, net of allowances for doubtful accounts                                                                                                                                                                                                                                                                |   |   |   |
|     of $3,579 in 2009 and $3,494 in 2008                                                                                                                                                                                                                                                                                  | 82,068 |   | 101,191 |
|   Inventories, net                                                                                                                                                                                                                                                                                                                  | 111,724 |   | 119,097 |
|   Prepaid expenses and other current assets                                                                                                                                                                                                                                                                                         | 3,195 |   | 2,851 |
|   Deferred income taxes                                                                                                                                                                                                                                                                                                             | 4,241 |   | 3,863 |
|      Total current assets                                                                                                                                                                                                                                                                                            | 207,511 |   | 232,700 |
| Property and equipment, net                                                                                                                                                                                                                                                                                                                   | 20,155 |   | 20,331 |
| Goodwill                                                                                                                                                                                                                                                                                                                                      | 99,716 |   | 98,718 |
| Other intangibles, net of accumulated amortization of $11,411 in 2009 and $9,605 in 2008                                                                                                                                                                                                                                                      |  43,421 |   |  45,227 |
| Other assets                                                                                                                                                                                                                                                                                                                                  | 811 |   | 880 |
|      Total assets                                                                                                                                                                                                                                                                                                    | $                371,614 |   | $                 397,856 |
|      LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                                                                      |   |   |   |
| Current liabilities:                                                                                                                                                                                                                                                                                                                          |   |   |   |
|   Current portion of long-term debt                                                                                                                                                                                                                                                                                                 | $                  14,047 |   | $                   13,965 |
|   Trade accounts payable                                                                                                                                                                                                                                                                                                            | 53,273 |   | 57,539 |
|   Accrued wages and benefits                                                                                                                                                                                                                                                                                                        | 12,820 |   | 12,869 |
|   Customer advances                                                                                                                                                                                                                                                                                                                 | 1,339 |   | 2,719 |
|   Federal income taxes payable                                                                                                                                                                                                                                                                                                      | 4,331 |   | 7,894 |
|   Other accrued liabilities                                                                                                                                                                                                                                                                                                         | 7,511 |   | 8,660 |
|      Total current liabilities                                                                                                                                                                                                                                                                                       | 93,321 |   | 103,646 |
| Other liabilities                                                                                                                                                                                                                                                                                                                             | 12 |   | 12 |
| Long-term debt, less current portion                                                                                                                                                                                                                                                                                                          | 134,253 |   | 154,591 |
| Deferred income taxes                                                                                                                                                                                                                                                                                                                         | 10,314 |   |  9,419 |
| Commitments and contingencies                                                                                                                                                                                                                                                                                                                 |   |   |   |
| Shareholders’ equity:                                                                                                                                                                                                                                                                                                                   |   |   |   |
|   Series A preferred stock, 1/10th vote per share; $1.00 par value;   liquidation preference of $100 per share ($112 at March 31, 2009);   1,000,000 shares authorized; 1,122 shares issued and outstanding                                                                                           |   1 |   |   1 |
|   Series B convertible preferred stock, 1/10th vote per share;  $1.00   par value; $100 stated value; liquidation preference of $100 per   share ($1,500 at March 31, 2009);   1,000,000 shares authorized;   15,000  shares issued and outstanding |    15 |   |    15 |
|   Common stock, $0.01 par value, 100,000,000 shares authorized;    12,869,304 in 2009 and 12,863,304 in 2008 shares outstanding                                                                                                                                                                                 |  128 |   |  128 |
| Paid-in capital                                                                                                                                                                                                                                                                                                                               | 56,469 |   | 56,206 |
| Retained earnings                                                                                                                                                                                                                                                                                                                             | 77,101 |   | 73,838 |
|      Total shareholders’ equity                                                                                                                                                                                                                                                                                | 133,714 |   | 130,188 |
|      Total liabilities and shareholders’ equity                                                                                                                                                                                                                                                                | $                371,614 |   | $                 397,856 |
|  The accompanying notes are an integral part of these consolidated financial statements.                                                                                                                                                                                                                                                 |

----

|                                                                              | Three Months Ended                                                                                    |
|-----------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|
|                                                                              | March 31,                                                                                             |
|                                                                              | 2009                                                                                                  |   | 2008(Restated) |
| Sales                                                                             | $          157,604                                  |   | $          168,499 |
| Cost of sales                                                                     | 111,530                                                                                               |   | 122,553 |
| Gross profit                                                                      | 46,074                                                                                                |   | 45,946 |
| Selling, general and administrative expense                                       | 39,382                                                                                                |   | 35,378 |
| Operating income                                                                  | 6,692                                                                                                 |   | 10,568 |
| Other income                                                                      | 14                                                                                                    |   | 13 |
| Interest expense                                                                  | (1,453)                                                                                               |   | (1,383) |
| Income before income taxes                                                        | 5,253                                                                                                 |   | 9,198 |
| Provision for income taxes                                                        | 2,081                                                                                                 |   | 3,759 |
| Net income                                                                        | 3,172                                                                                                 |   | 5,439 |
| Preferred stock dividend                                                          | (15)                                                                                                  |   | (23) |
| Net income attributable to common shareholders                                    | $              3,157            |   | $              5,416 |
|                                                                              |                                                                                                  |   |   |
| Basic income per share                                                            | $                0.24 |   | $                0.42 |
| Weighted average common shares outstanding                                        | 13,079                                                                                                |   | 12,857 |
| Diluted income per share                                                          | $                0.23 |   | $                0.39 |
| Weighted average common and common   equivalent shares outstanding |  13,952                                                                                          |   |  13,837 |
|  See notes to condensed consolidated financial statements.                   |
|                                                                              |

----

|                                                                                                                                                               | THREE MONTHS ENDED                                                                                                                   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                               | MARCH 31                                                                                                                             |
|                                                                                                                                                               | 2009                                                                                                                                 |   | 2008 |
| OPERATING ACTIVITIES:                                                                                                                                              |                                                                                                                                 |   |   |
| Net income                                                                                                                                                         | $                     3,172 |   | $                     5,439 |
|   Adjustments to reconcile net income to net cash provided                                                                                               |                                                                                                                                 |   |   |
|    by operating activities – net of acquisitions                                                                                              |                                                                                                                                 |   |   |
|     Depreciation                                                                                                                               | 1,098                                                                                                                                |   | 981 |
|     Amortization of intangibles                                                                                                                | 1,806                                                                                                                                |   | 1,228 |
|     Compensation expense from restricted stock                                                                                                 | 262                                                                                                                                  |   | 227 |
|     Deferred income taxes                                                                                                                      | (356)                                                                                                                                |   | 259 |
|     Changes in operating assets and liabilities, net of     assets and liabilities acquired in business combinations: |                                                                                                                                 |   |   |
|       Trade accounts receivable                                                                                                      | 19,123                                                                                                                               |   | (4,076) |
|       Inventories                                                                                                                    | 7,373                                                                                                                                |   | 1,274 |
|       Prepaid expenses and other current assets                                                                                      | (1,222)                                                                                                                              |   | (1,695) |
|       Accounts payable and accrued liabilities                                                                                       | (9,424)                                                                                                                              |   | (1,644) |
|       Net cash provided by operating activities                                                                                      | 21,832                                                                                                                               |   | 1,993 |
|                                                                                                                                                               |                                                                                                                                 |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                                                              |                                                                                                                                 |   |   |
| Purchase of property and equipment                                                                                                                                 | (921)                                                                                                                                |   | (1,502) |
| Purchase of businesses, net of cash acquired                                                                                                                       | (52)                                                                                                                                 |   | (3,822) |
|   Net cash used in investing activities                                                                                                                  | (973)                                                                                                                                |   | (5,324) |
|                                                                                                                                                               |                                                                                                                                 |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                                                              |                                                                                                                                 |   |   |
| Proceeds from debt                                                                                                                                                 | 24,809                                                                                                                               |   | 10,444 |
| Principal payments on revolving line of credit and other long-term  debt                                                                                 | .(45,068)                                                                                                                            |   |  (7,256) |
| Dividends paid in cash                                                                                                                                             | (15)                                                                                                                                 |   | (23) |
|   Net cash (used in) provided by financing activities                                                                                                    | (20,274)                                                                                                                             |   | 3,165 |
| INCREASE (DECREASE) IN CASH                                                                                                                                        | 585                                                                                                                                  |   | (166) |
| CASH AT BEGINNING OF PERIOD                                                                                                                                        | 5,698                                                                                                                                |   | 3,978 |
| CASH AT END OF PERIOD                                                                                                                                              | $                     6,283 |   | $                     3,812 |
|                                                                                                                                                               |                                                                                                                                 |   |   |
|                                                                                                                                                               |                                                                                                                                 |   |   |
| See notes to condensed consolidated financial statements.                                                                                                          |

----

----

----

|                                                             | Options Outstanding and Exercisable |
|------------------------------------------------------------------|-------------------------------------|
|                                                             | Number of Shares                    |   | WeightedAverageExercisePrice |   | Weighted Average Remaining Contractual Term(in years) |   | Aggregate Intrinsic Value |
| Options outstanding  at December 31, 2008              | 58,000                              |   | $   2.33 |   | 4.5 |   | $    712,000 |
| Granted                                                          | -                                   |   |   |   |   |   |   |
| Exercised                                                        | -                                   |   |   |   |   |   |   |
| Options outstanding and  exercisable at March 31, 2009 |  58,000                        |   | $  2.33 |   | 4.2 |   | $    464,000 |

|                    |   | Options Outstanding and Exercisable |
|-------------------------|--------|-------------------------------------|
| Range ofexercise prices |   | Number of OptionsOutstanding        |   | Weighted Average Remaining Contractual Life(in years) |   | Weighted AverageExercisePrice |
| $1.25                   |   |  18,000                        |   | 1.1 |   | $1.25 |
| $2.26 - $3.36           |   | 40,000                              |   | 5.7 |   | $2.81 |
|                    |   |  58,000                        |   | 4.2 |   | $2.33 |

| Number of shares authorized for grants         | 600,000            |
|------------------------------------------------|--------------------|
| Number of shares granted                       | 315,702            |
| Number of shares available for future grants   | 284,298            |
| Weighted-average grant price of granted shares | $  16.60 |

----

|                          | Number ofShares |   | Weighted AverageGrant Price |
|-------------------------------|-----------------|--------|-----------------------------|
| Unvested at December 31, 2008 | 215,250         |   | $ 15.91                     |
| Granted                       | 9,680           |   | $ 10.33                     |
| Vested                        | 6,000           |   | $   9.42     |
| Unvested at March 31, 2009    | 218,930         |   | $ 15.84                     |

|            | March 31, 2009 |   | December 31, 2008 |
|-----------------|---------------------|--------|------------------------|
|            |                |   |                   |
| Finished goods  | $110,087            |   | $ 117,582              |
| Work in process | 1,637               |   | 1,515                  |
| Inventories     | $111,724            |   | $ 119,097              |

|                                |  Total          |   |  Goodwill                  |   | OtherIntangibles          |
|-------------------------------------|----------------------|--------|---------------------------------|--------|---------------------------|
| Balance as of December 31, 2008     | $  143,945 |   | $    98,718 |   | $   45,227 |
| Acquired during the year            | -                    |   |   -                   |   | -                         |
| Adjustments to prior year estimates | 998                  |   | 998                             |   | -                         |
| Amortization                        | (1,806)              |   | -                               |   | (1,806)                   |
| Balance as of March 31, 2009        | $  143,137 |   | $    99,716 |   | $   43,421 |

|                   | As of March 31, 2009                       |   | As of December 31, 2008                                            |
|------------------------|--------------------------------------------|--------|--------------------------------------------------------------------|
|                   | GrossCarryingAmount                        |   |  AccumulatedAmortization                                      |   | GrossCarryingAmount |   |  AccumulatedAmortization |
| Vendor agreements      | $      2,496 |   | $          (613) |   | $          2,496 |   | $          (582) |
| Customer relationships | 50,416                                     |   | (9,917)                                                            |   | 50,416 |   | (8,289) |
| Non-compete agreements | 1,920                                      |   | (881)                                                              |   | 1,920 |   | (734) |
| Total                  | $    54,832            |   | $     (11,411)                            |   | $        54,832 |   | $       (9,605) |

----

|                                                                                                                     | Three Months Ended                                                            |
|--------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
|                                                                                                                     | March 31                                                                      |
|                                                                                                                     | 2009                                                                          |   | 2008(Restated) |
| Basic:                                                                                                                   |                                                                          |   |   |
|   Weighted average shares outstanding                                                                          | 13,078,661                                                                    |   | 12,856,596 |
|   Net income                                                                                                   | $   3,172,000                                                  |   | $  5,439,000 |
|   Convertible preferred stock dividend                                                                         | (15,000)                                                                      |   | (23,000) |
|   Net income attributable to common shareholders                                                               | $   3,157,000                                                  |   | $  5,416,000 |
|   Per share amount                                                                                             | $            0.24 |   | $            0.42 |
|                                                                                                                     |                                                                          |   |   |
| Diluted:                                                                                                                 |                                                                          |   |   |
|   Weighted average shares outstanding                                                                          | 13,078,661                                                                    |   | 12,856,596 |
|   Net effect of dilutive stock options – based on the     treasury stock method |   33,764                                                            |   |  140,123 |
|   Assumed conversion of convertible preferred stock                                                            | 840,000                                                                       |   | 840,000 |
|   Total                                                                                                        | 13,952,425                                                                    |   | 13,836,719 |
|   Net income attributable to common shareholders                                                               | $   3,157,000                                                  |   | $  5,416,000 |
|   Convertible preferred stock dividend                                                                         | 15,000                                                                        |   | 23,000 |
|   Net income for diluted earnings per share                                                                    | $   3,172,000                                                  |   | $  5,439,000 |
|   Per share amount                                                                                             | $            0.23 |   | $            0.39 |

----

|                | Three Months ended March 31, |
|---------------------|------------------------------|
|                |     MRO  |   | ElectricalContractor |   |  Total |
|                |                         |   |   |   |   |
| 2008                |                         |   |   |   |   |
| Sales               | $  167,596         |   | $            903 |   | $   168,499 |
| Operating income    | 10,427                       |   |                141 |   |      10,568 |
| Income before taxes | 9,087                        |   | 111 |   | 9,198 |
| 2009                |                         |   |   |   |   |
| Sales               | $  156,919         |   | $            685 |   | $   157,604 |
| Operating income    | 6,629                        |   |                63 |   |      6,692 |
| Income before taxes | 5,222                        |   | 31 |   | 5,253 |

| Accounts Receivable             | $    9,210 |
|---------------------------------|--------------------------------|
| Inventory                       | 24,422                         |
| Property and equipment          | 2,625                          |
| Goodwill and intangibles        | 44,657                         |
| Other assets                    | 274                            |
| Assets acquired                 | 81,188                         |
| Current liabilities assumed     | (5,165)                        |
| Non-current liabilities assumed | (5,759)                        |
|   Net assets acquired | $  70,264            |

----

|                         | Three Months EndedMarch 31, 2008 |
|------------------------------|----------------------------------|
|                         |                             |
| Net sales                    | $  190,259             |
| Net income                   | 6,373                            |
| Per share data               |                             |
|   Basic earnings   | $0.49                            |
|   Diluted earnings | $0.46                            |

----

|                                                  |    | Fair Value Measurement                                      |
|-------------------------------------------------------|--------------|----------------------------------------------------------------------------|
| Description (Liabilities)                             |    | Level 1                                                               |    | Level 2 |    | Level 3 |    | Total |
| Current liabilities – Other accrued liabilities |    | $            - |    | $            - |    | $     1,023 |    | $   1,023 |
| Non-current liabilities                               |         | -                                                                     |    | - |   | - |   | - |
| Total                                                 |    | $            - |    | $            - |    | $     1,023 |    | $   1,023 |

|                                                     | Three Months EndedMarch 31 |
|----------------------------------------------------------|----------------------------|
|                                                     | 2009                       |   | 2008 |
| Net income                                               | $3,172           |    | $5,439   |
| Gain (loss) from interest rate swap, net of income taxes | 107                        |   | (600) |
| Comprehensive income                                     | $3,279           |    | $4,839  |

|   | Impact of Current Economic Conditions |
|--------|---------------------------------------|

----

|                                        | Three Months Ended March 31,                                      |
|---------------------------------------------|-------------------------------------------------------------------|
|                                        |  2009                                                        |   |  % |   | 2008(Restated) |   |  % |
|                                        | (in thousands, except percentages and per share amounts)          |
|                                        |                                                              |   |   |   |   |   |   |
| Sales                                       | $    157,604                                  |   | 100.0 |   | $    168,499 |   | 100.0 |
| Cost of sales                               | 111,530                                                           |   | 70.8 |   | 122,553 |   | 72.7 |
| Gross profit                                | 46,074                                                            |   | 29.2 |   | 45,946 |   | 27.3 |
| Selling, general and administrative expense | 39,382                                                            |   | 25.0 |   | 35,378 |   | 21.0 |
| Operating income                            | 6,692                                                             |   | 4.2 |   | 10,568 |   | 6.3 |
| Interest expense                            | (1,453)                                                           |   | (0.9) |   | (1,383) |   | (0.8) |
| Other income                                | 14                                                                |   | - |   | 13 |   | - |
| Income before income taxes                  | 5,253                                                             |   | 3.3 |   | 9,198 |   | 5.5 |
| Provision for income taxes                  | 2,081                                                             |   | 1.3 |   | 3,759 |   | 2.2 |
| Net income                                  | $        3,172            |   | 2.0 |   | $        5,439 |   | 3.3 |
| Per share amounts                           |                                                              |   |   |   |   |   |   |
|   Basic earnings per share        | $          0.24 |   |   |   | $          0.42 |   |   |
|   Diluted earnings per share      | $          0.23 |   |   |   | $          0.39 |   |   |

----

----

----

|                                                                                                                                                                                   | March 31, 2009                        |   | December 31, 2008                                 |   | Increase (Decrease)                                                                                             |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|--------|---------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                   | (in Thousands)                        |   |                                              |
| Current portion of long-term debt                                                                                                                                                      | $     14,047 |   | $       13,965 |   |   $                82 |
| Long-term debt, less current portion                                                                                                                                                   | 134,253                               |   | 154,591                                           |   | (20,338)                                                                                                        |
| Total long-term debt                                                                                                                                                                   | $   148,300            |   | $    168,556                  |   | $   (20,256)(2)                                                                                  |
| Amount available                                                                                                                                                                       | $  45,699(1)                |   | $   36,951(1)                      |   |  $       8,748 (3)                                                      |
|  (1) Represents amount available to be borrowed at the indicated date under the Facility.                                                                                         |
| (2) The funds obtained from operations, including reduced inventory and receivables, were used to reduce debt.                                                                         |
| (3) The $8.7 million increase in the amount available is primarily a result of the $15.0 million reduction in the amount outstanding under the line of credit portion of the Facility. |

|                      | March 31, |   | Increase |
|---------------------------|-----------|--------|----------|
|                      | 2009      |   | 2008     |   | (Decrease) |
|                      | (in Days) |
| Days of sales outstanding | 48.9      |   | 47.2     |   | 1.7 |
| Inventory turns           | 4.0       |   | 5.6      |   | (1.6) |

----

| Accounts Receivable             | $    9,210 |
|---------------------------------|--------------------------------|
| Inventory                       | 24,422                         |
| Property and equipment          | 2,625                          |
| Goodwill and intangibles        | 44,657                         |
| Other assets                    | 274                            |
| Assets acquired                 | 81,188                         |
| Current liabilities assumed     | (5,165)                        |
| Non-current liabilities assumed | (5,759)                        |
|   Net assets acquired | $  70,264            |

| Net sales                  |   | $  190,259 |
|----------------------------|--------|----------------------|
| Net income                 |   | 6,373                |
| Per share data             |   |                 |
|   Basic earnings |   | $0.49                |
|   Diluted        |   | $0.46                |

----

----

| 1.   | Security and access to key financial spreadsheets |
|----------------|---------------------------------------------------|

| 2.   | Access to and segregation of duties in key financial applications |
|----------------|-------------------------------------------------------------------|

| 3.   | Backup and recovery of financial data |
|----------------|---------------------------------------|

| 4.   | Systems development and change management |
|----------------|-------------------------------------------|

| 5.   | Incident management |
|----------------|---------------------|

| 6.   | Security monitoring |
|----------------|---------------------|

| 3.1 | Restated Articles of Incorporation, as amended (incorporated by reference to Exhibit 4.1 to the Registrant’s Registration Statement on Form S-8 (Reg. No. 333-61953), filed with Commission on August 20, 1998). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Bylaws (incorporated by reference to Exhibit 3.2 to the Registrant’s Registration Statement on Form S-4 (Reg. No. 333-10021), filed with the Commission on August 12, 1996). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and rule 15d-14(a) of the Securities Exchange Act, as amended.  (Filed herewith). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and rule 15d-14(a) of the Securities Exchange Act, as amended.  (Filed herewith). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  (Filed herewith). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  (Filed herewith). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----