----

|   | [X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.  For the quarterly period ended June 30, 2012 |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | [   ] | 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 SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(In Thousands, Except Share and Per Share Amounts)                                                                                                                                                                                                     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                         |   |   |   |
|                                                                                                                                                                                                                                                                                                                                         | June 30, 2012 |   | December 31, 2011 |
|      ASSETS                                                                                                                                                                                                                                                                                                         | (unaudited) |   | (unaudited) |
| Current assets:                                                                                                                                                                                                                                                                                                                              |   |   |   |
|   Cash                                                                                                                                                                                                                                                                                                                             | $                     6,591 |   | $                     1,507 |
|   Trade accounts receivable, net of allowances for doubtful accounts                                                                                                                                                                                                                                                               |   |   |   |
|     of $6,879 in 2012 and $6,202 in 2011                                                                                                                                                                                                                                                                                 | 157,781 |   | 137,024 |
|   Inventories, net                                                                                                                                                                                                                                                                                                                 | 99,389 |   | 93,901 |
|   Prepaid expenses and other current assets                                                                                                                                                                                                                                                                                        | 3,279 |   | 2,230 |
|   Deferred income taxes                                                                                                                                                                                                                                                                                                            | 5,219 |   | 4,539 |
|      Total current assets                                                                                                                                                                                                                                                                                           | 272,259 |   | 239,201 |
| Property and equipment, net                                                                                                                                                                                                                                                                                                                  | 27,972 |   | 16,911 |
| Goodwill                                                                                                                                                                                                                                                                                                                                     | 119,844 |   | 101,764 |
| Other intangibles, net of accumulated amortization of $30,965 in 2012  and $26,175 in 2011                                                                                                                                                                                                                                         | 55,766 |   | 43,194 |
| Non-current deferred income taxes                                                                                                                                                                                                                                                                                                            | - |   | 1,588 |
| Other assets                                                                                                                                                                                                                                                                                                                                 | 2,372 |   | 2,680 |
|      Total assets                                                                                                                                                                                                                                                                                                   | $                 478,213 |   | $                 405,338 |
|      LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                                                                     |   |   |   |
| Current liabilities:                                                                                                                                                                                                                                                                                                                         |   |   |   |
|   Current portion of long-term debt                                                                                                                                                                                                                                                                                                | $                     3,127 |   | $                        694 |
|   Trade accounts payable                                                                                                                                                                                                                                                                                                           | 75,521 |   | 62,123 |
|   Outstanding checks related to acquisition                                                                                                                                                                                                                                                                                        | - |   | 36,697 |
|   Accrued wages and benefits                                                                                                                                                                                                                                                                                                       | 13,084 |   | 12,713 |
|   Customer advances                                                                                                                                                                                                                                                                                                                | 8,507 |   | 3,767 |
|   Federal income taxes payable                                                                                                                                                                                                                                                                                                     | 986 |   | 2,409 |
|   Other accrued liabilities                                                                                                                                                                                                                                                                                                        | 12,956 |   | 16,055 |
|      Total current liabilities                                                                                                                                                                                                                                                                                      | 114,181 |   | 134,458 |
| Long-term debt, less current portion                                                                                                                                                                                                                                                                                                         | 178,154 |   | 114,205 |
| Non-current deferred income taxes                                                                                                                                                                                                                                                                                                            | 4,190 |   | - |
| Shareholders’ equity:                                                                                                                                                                                                                                                                                                                  |   |   |   |
|   Series A preferred stock, 1/10th vote per share; $1.00 par value;   liquidation preference of $100 per share ($112 at June 30, 2012);   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 June 30, 2012);   1,000,000 shares authorized;   15,000  shares issued and outstanding | 15 |   | 15 |
|   Common stock, $0.01 par value, 100,000,000 shares authorized;    14,234,210 in 2012 and 14,183,391 in 2011 shares issued                                                                                                                                                                                     | 142 |   | 141 |
| Paid-in capital                                                                                                                                                                                                                                                                                                                              | 77,223 |   | 75,204 |
| Retained earnings                                                                                                                                                                                                                                                                                                                            | 106,473 |   | 82,695 |
| Accumulated other comprehensive (loss) income                                                                                                                                                                                                                                                                                                | (334) |   | 64 |
| Treasury stock, at cost (75,471 shares at June 30, 2012 and     65,171 shares at December 31, 2011)                                                                                                                                                                                                                 | (1,832) |   | (1,445) |
|      Total shareholders’ equity                                                                                                                                                                                                                                                                               | 181,688 |   | 156,675 |
|      Total liabilities and shareholders’ equity                                                                                                                                                                                                                                                               | $                 478,213 |   | $                 405,338 |
|  See notes to unaudited condensed consolidated financial statements.                                                                                                                                                                                                                                                                    |

|                                                                                   | Three Months EndedJune 30,                                                                            |   | Six Months EndedJune 30,                                                                              |
|----------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|
|                                                                                   | 2012                                                                                                  |   | 2011                                                                                                  |   | 2012 |   | 2011 |
|                                                                                   | (unaudited)                                                                                           |   | (unaudited)                                                                                           |   | (unaudited) |   | (unaudited) |
|                                                                                   |                                                                                                  |   |                                                                                                  |   |   |   |   |
| Sales                                                                                  | $          261,894                                  |   | $          197,675                                  |   | $          514,181 |   | $          380,762 |
| Cost of sales                                                                          | 185,265                                                                                               |   | 140,410                                                                                               |   | 366,078 |   | 271,070 |
| Gross profit                                                                           | 76,629                                                                                                |   | 57,265                                                                                                |   | 148,103 |   | 109,692 |
| Selling, general and  administrative expense                                 | 55,782                                                                                                |   | 43,634                                                                                                |   | 107,351 |   |  84,519 |
| Operating income                                                                       | 20,847                                                                                                |   | 13,631                                                                                                |   | 40,752 |   | 25,173 |
| Other income                                                                           | (3)                                                                                                   |   | 15                                                                                                    |   | 12 |   | 36 |
| Interest expense                                                                       | (762)                                                                                                 |   | (1,023)                                                                                               |   | (1,591) |   | (2,045) |
| Income before income taxes                                                             | 20,082                                                                                                |   | 12,623                                                                                                |   | 39,173 |   | 23,164 |
| Provision for income taxes                                                             | 7,905                                                                                                 |   | 5,013                                                                                                 |   | 15,350 |   | 9,211 |
| Net income                                                                             | 12,177                                                                                                |   | 7,610                                                                                                 |   | 23,823 |   | 13,953 |
| Preferred stock dividend                                                               | (22)                                                                                                  |   | (22)                                                                                                  |   | (45) |   | (45) |
| Net income attributable to  common shareholders                              |  $            12,155                 |   |  $              7,588      |   |  $            23,778 |   |  $            13,908 |
|                                                                                   |                                                                                                  |   |                                                                                                  |   |   |   |   |
| Net income                                                                             | $            12,177                       |   | $              7,610            |   | $            23,823 |   | $            13,953 |
| Loss on long-term investment,  net of income taxes                           | (52)                                                                                                  |   | -                                                                                                     |   | (281) |   | - |
| Loss on foreign currency valuation,  net of income taxes                     | (117)                                                                                                 |   | -                                                                                                     |   | (117) |   | - |
| Comprehensive income                                                                   | $            12,008                       |   | $              7,610            |   | $            23,425 |   | $            13,953 |
|                                                                                   |                                                                                                  |   |                                                                                                  |   |   |   |   |
| Basic income per share                                                                 | $                0.84 |   | $                0.53 |   | $                1.66 |   | $                0.97 |
| Weighted average common  shares outstanding                                  |  14,392                                                                                          |   |  14,327                                                                                          |   |  14,360 |   |  14,303 |
| Diluted income per share                                                               | $                0.80 |   | $                0.50 |   | $                1.57 |   | $                0.92 |
| Weighted average common  and common equivalent  shares outstanding | 15,232                                                                                                |   | 15,167                                                                                                |   | 15,200 |   |   15,143 |
|  See notes to unaudited condensed consolidated financial statements.              |

|                                                                                                                                                                                                                              | SIX MONTHS ENDED                                                                                                                     |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                              | JUNE 30                                                                                                                              |
|                                                                                                                                                                                                                              | 2012                                                                                                                                 |   | 2011 |
|                                                                                                                                                                                                                              | (unaudited)                                                                                                                          |   | (unaudited) |
| OPERATING ACTIVITIES:                                                                                                                                                                                                             |                                                                                                                                 |   |   |
| Net income                                                                                                                                                                                                                        | $                   23,823            |   | $                   13,953 |
|   Adjustments to reconcile net income to net cash provided                                                                                                                                                              |                                                                                                                                 |   |   |
|    by operating activities – net of acquisitions and divestitures                                                                                                                                            |                                                                                                                                 |   |   |
|     Depreciation                                                                                                                                                                                              | 2,019                                                                                                                                |   | 1,732 |
|     Amortization of intangibles                                                                                                                                                                               | 4,790                                                                                                                                |   | 3,210 |
|     Compensation expense for restricted stock                                                                                                                                                                 | 954                                                                                                                                  |   | 601 |
|     Tax benefit related to vesting of restricted stock                                                                                                                                                        | (248)                                                                                                                                |   | (97) |
|     Deferred income taxes                                                                                                                                                                                     | (298)                                                                                                                                |   | 1,908 |
|     Changes in operating assets and liabilities, net of     assets and liabilities acquired in business combinations:                                                                |                                                                                                                                 |   |   |
|       Trade accounts receivable                                                                                                                                                                     | (10,954)                                                                                                                             |   | (14,944) |
|       Inventories                                                                                                                                                                                   | (3,387)                                                                                                                              |   | (1,775) |
|       Prepaid expenses and other current assets                                                                                                                                                     | (468)                                                                                                                                |   | (1,479) |
|       Accounts payable and accrued expenses                                                                                                                                                         | 8,677                                                                                                                                |   | 13,161 |
|       Net cash (used in) provided by operating activities                                                                                                                                           | 24,908                                                                                                                               |   | 16,270 |
|                                                                                                                                                                                                                              |                                                                                                                                 |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                                                                                                                             |                                                                                                                                 |   |   |
| Purchase of property and equipment                                                                                                                                                                                                | (9,981)                                                                                                                              |   | (2,631) |
| Purchase of businesses, net of cash acquired                                                                                                                                                                                      | (73,485)                                                                                                                             |   | - |
|   Net cash used in investing activities                                                                                                                                                                                 | (83,466)                                                                                                                             |   | (2,631) |
|                                                                                                                                                                                                                              |                                                                                                                                 |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                                                                                                                             |                                                                                                                                 |   |   |
| Proceeds from debt                                                                                                                                                                                                                | 101,178                                                                                                                              |   | 104,135 |
| Principal payments on revolving line of credit and other long-term  debt                                                                                                                                                | (37,352)                                                                                                                             |   |  (117,456) |
| Dividends paid in cash                                                                                                                                                                                                            | (45)                                                                                                                                 |   | (45) |
| Purchase of treasury stock                                                                                                                                                                                                        | (387)                                                                                                                                |   | - |
| Tax benefit related to vesting of restricted stock                                                                                                                                                                                | 248                                                                                                                                  |   | 97 |
|   Net cash provided by (used) in financing activities                                                                                                                                                                   | 63,642                                                                                                                               |   | (13,269) |
| INCREASE IN CASH                                                                                                                                                                                                                  | 5,084                                                                                                                                |   | 370 |
| CASH AT BEGINNING OF PERIOD                                                                                                                                                                                                       | 1,507                                                                                                                                |   | 770 |
| CASH AT END OF PERIOD                                                                                                                                                                                                             | $                     6,591 |   | $                     1,140 |
|                                                                                                                                                                                                                              |                                                                                                                                 |   |   |
|                                                                                                                                                                                                                              |                                                                                                                                 |   |   |
| Purchase of businesses in 2012 include $36.7 million which represented outstanding checks at December 31, 2011, related to an acquisition in 2011. See notes to unaudited condensed consolidated financial statements.  |

| Number of shares authorized for grants         | 800,000   |
|------------------------------------------------|-----------|
| Number of shares granted                       | (648,450) |
| Number of shares forfeited                     | 64,947    |
| Number of shares available for future grants   | 216,497   |
| Weighted-average grant price of granted shares | $18.35    |

|                            | Number ofShares |   | Weighted AverageGrant Price |
|---------------------------------|-----------------|--------|-----------------------------|
| Non-vested at December 31, 2011 | 228,592         |   | $21.10                      |
| Granted                         | 36,496          |   | $37.78                      |
| Forfeited                       | 4,209           |   | $21.06                      |
| Vested                          | 30,690          |   | $17.64                      |
| Non-vested at June 30, 2012     | 230,189         |   | $24.21                      |

|                 | June 30, 2012  |   | December 31, 2011 |
|----------------------|---------------------|--------|------------------------|
|                 |                |   |                   |
| Finished goods       | $106,263            |   | $ 102,645              |
| Work in process      | 7,253               |   | 5,246                  |
| Obsolescence reserve | (14,127)            |   | (13,990)               |
| Inventories          | $  99,389 |   | $  93,901    |

|                                |  Total          |   |  Goodwill       |   | OtherIntangibles          |
|-------------------------------------|----------------------|--------|----------------------|--------|---------------------------|
| Balance as of December 31, 2011     | $ 144,958            |   | $  101,764 |   | $   43,194 |
| Acquired during the year            | 35,442               |   | 18,130               |   | 17,312                    |
| Adjustments to prior year estimates | -                    |   | (50)                 |   | 50                        |
| Amortization                        | (4,790)              |   | -                    |   | (4,790)                   |
| Balance as of June 30, 2012         | $  175,610 |   | $  119,844 |   | $   55,766 |

|                   | As of June 30, 2012                                          |   | As of December 31, 2011                            |
|------------------------|--------------------------------------------------------------|--------|----------------------------------------------------|
|                   | GrossCarryingAmount                                          |   |  AccumulatedAmortization                      |   | GrossCarryingAmount |   |  AccumulatedAmortization |
| Vendor agreements      | $         2,496 |   | $       (1,018) |   | $         2,496 |   | $          (956) |
| Customer relationships | 81,022                                                       |   | (28,078)                                           |   | 64,262 |   | (23,508) |
| Non-compete agreements | 3,213                                                        |   | (1,869)                                            |   | 2,611 |   | (1,711) |
| Total                  | $       86,731            |   | $     (30,965)            |   | $       69,369 |   | $     (26,175) |

|                                                         | Three Months EndedJune 30                                                     |   | Six Months EndedJune 30                                                       |
|--------------------------------------------------------------|-------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|
|                                                         | 2012                                                                          |   | 2011                                                                          |   | 2012 |   | 2011 |
| Basic:                                                       |                                                                          |   |                                                                          |   |   |   |   |
| Weighted average shares outstanding                          | 14,392,145                                                                    |   | 14,327,266                                                                    |   | 14,360,246 |   | 14,303,209 |
| Net income                                                   | $ 12,177,000                                                                  |   | $   7,610,000                                                  |   | $ 23,823,000 |   | $ 13,953,000 |
| Convertible preferred stock dividend                         | (22,000)                                                                      |   | (22,000)                                                                      |   | (45,000) |   | (45,000) |
| Net income attributable to common shareholders               |  $ 12,155,000                                                            |   |  $   7,588,000                                            |   |  $ 23,778,000 |   | $ 13,908,000 |
| Per share amount                                             | $            0.84 |   | $            0.53 |   | $            1.66 |   | $            0.97 |
|                                                         |                                                                          |   |                                                                          |   |   |   |   |
| Diluted:                                                     |                                                                          |   |                                                                          |   |   |   |   |
| Weighted average shares outstanding                          | 14,392,145                                                                    |   | 14,327,266                                                                    |   | 14,360,246 |   | 14,303,209 |
| Assumed conversion of convertible  preferred stock | 840,000                                                                       |   | 840,000                                                                       |   | 840,000 |   | 840,000 |
| Total                                                        | 15,232,145                                                                    |   | 15,167,266                                                                    |   | 15,200,246 |   | 15,143,209 |
| Net income attributable to  common shareholders    | $ 12,155,000                                                                  |   | $   7,588,000                                                  |   | $ 23,778,000 |   | $ 13,908,000 |
| Convertible preferred stock dividend                         | 22,000                                                                        |   | 22,000                                                                        |   | 45,000 |   | 45,000 |
| Net income for diluted  earnings per share         | $ 12,177,000                                                                  |   | $   7,610,000                                                  |   | $ 23,823,000 |   | $ 13,953,000 |
| Per share amount                                             | $            0.80 |   | $            0.50 |   | $            1.57 |   | $            0.92 |

|                                                | Three Months ended June 30, |   | Six Months ended June 30,  |
|-----------------------------------------------------|-----------------------------|--------|----------------------------|
|                                                | ServiceCenters              |   | InnovativePumpingSolutions |   | SupplyChain Services |   |  Total |   | ServiceCenters |   | InnovativePumpingSolutions |   | SupplyChain Services |   |  Total |
| 2012                                                |                        |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales                                               | $ 184,106                   |   | $   35,177  |   | $ 42,611 |   | $ 261,894 |   | $359,178 |   | $74,612 |   | $80,391 |   | $514,181 |
| Operating income for  reportable segments | 22,491                      |   | 6,939                      |   | 3,902 |   | 33,332 |   | 41,045 |   | 15,187 |   | 6,719 |   | 62,951 |
| 2011                                                |                        |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales                                               | $ 139,503                   |   | $   21,814  |   | $ 36,358 |   | $ 197,675 |   | $271,054 |   | $38,499 |   | $71,209 |   | $380,762 |
| Operating income for  reportable segments |  17,340                |   |  3,085                |   |  2,136 |   |  22,561 |   |  32,121 |   |  5,943 |   |  4,050 |   |  42,114 |

|                                         | Three Months EndedJune 30 |   | Six Months EndedJune 30 |
|----------------------------------------------|---------------------------|--------|-------------------------|
|                                         | 2012                      |   | 2011                    |   |  2012 |   |  2011 |
| Operating income for reportable segments     | $  33,332       |   | $ 22,561                |   | $  62,951 |   | $ 42,114 |
| Adjustment for:                              |                      |   |                    |   |   |   |   |
|   Amortization of intangibles      | 2,556                     |   | 1,604                   |   | 4,790 |   | 3,210 |
|   Corporate and other expense, net | 9,929                     |   | 7,326                   |   | 17,409 |   | 13,731 |
| Total operating income                       | 20,847                    |   | 13,631                  |   | 40,752 |   | 25,173 |
| Interest expense, net                        | 762                       |   | 1,023                   |   | 1,591 |   | 2,045 |
| Other expense (income), net                  | 3                         |   | (15)                    |   | (12) |   | (36) |
| Income before income taxes                   | $  20,082       |   | $ 12,623                |   | $  39,173 |   | $ 23,164 |

|                                                                                     | 2012               |   | 2011   |
|------------------------------------------------------------------------------------------|--------------------|--------|--------|
| Six Months Ended June 30                                                                 |               |   |   |
| Fair value at January 1                                                                  | $  1,679 |   | -      |
| Investment during period                                                                 | 105                |   | -      |
| Realized and unrealized gains (losses)  included in other comprehensive income | (468)              |   | -      |
| Fair value at June 30                                                                    | $  1,316 |   | -      |

| Cash                            | $       696 |
|---------------------------------|------------------------------------------------|
| Accounts Receivable, net        | 25,498                                         |
| Inventory, net                  | 15,856                                         |
| Property and equipment          | 4,485                                          |
| Goodwill and intangibles        | 68,793                                         |
| Other assets                    | 456                                            |
| Assets acquired                 | 115,784                                        |
| Current liabilities assumed     | (9,594)                                        |
| Non-current liabilities assumed | (5,142)                                        |
|   Net assets acquired | $101,048                                       |

|             | Three Months EndedJune 30 | Six Months EndedJune 30 |
|------------------|---------------------------|-------------------------|
|             | 2012                      | 2011                    | 2012 | 2011 |
| Net sales        | $ 264,177                 | $ 237,251               | $ 527,290 | $ 457,836 |
| Net income       | 12,139                    | 9,575                   | 24,317 | 17,515 |
| Per share data   |                      |                    |   |   |
| Basic earnings   | $0.84                     | $0.67                   | $1.69 | $1.22 |
| Diluted earnings | $0.80                     | $0.63                   | $1.60 | $1.15 |

| Cash                                   | $   11       |
|----------------------------------------|-----------------------------|
| Accounts Receivable, net               | 24                          |
| Inventory, net                         | -                           |
| Property and equipment                 | 33                          |
| Goodwill and intangibles               | 47                          |
| Other assets                           | 2                           |
| Assets acquired                        | 117                         |
| Current liabilities assumed            | (14)                        |
| Non-current liabilities assumed        | (18)                        |
|     Net assets acquired | $    85 |

|             | Three Months EndedJune 30 | Six Months EndedJune 30 |
|------------------|---------------------------|-------------------------|
|             | 2012                      | 2011                    | 2012 | 2011 |
| Net sales        | $290,481                  | $223,399                | $570,872 | $431,296 |
| Net income       | 12,696                    | 7,654                   | 25,588 | 13,493 |
| Per share data   |                      |                    |   |   |
| Basic earnings   | $0.88                     | $0.53                   | $1.78 | $0.94 |
| Diluted earnings | $0.83                     | $0.50                   | $1.68 | $0.89 |

|                                                          | Three Months Ended June 30,               |   | Six Months Ended June 30,                 |
|---------------------------------------------------------------|-------------------------------------------|--------|-------------------------------------------|
|                                                          | 2012                                      | %      | 2011                                      | % |   | 2012 | % | 2011 | % |
| Sales                                                         | $261,894                                  | 100.0  | $197,675                                  | 100.0 |   | $514,181 | 100.0 | $380,762 | 100.0 |
| Cost of sales                                                 | 185,265                                   | 70.7   | 140,410                                   | 71.0 |   | 366,078 | 71.2 | 271,070 | 71.2 |
| Gross profit                                                  | 76,629                                    | 29.3   | 57,265                                    | 29.0 |   | 148,103 | 28.8 | 109,692 | 28.8 |
| Selling, general and  administrative expense        | 55,782                                    | 21.3   | 43,634                                    | 22.1 |   | 107,351 | 20.9 | 84,519 | 22.2 |
| Operating income                                              | 20,847                                    | 8.0    | 13,631                                    | 6.9 |   | 40,752 | 7.9 | 25,173 | 6.6 |
| Interest expense                                              | (762)                                     | (0.3)  | (1,023)                                   | (0.5) |   | (1,591) | (0.3) | (2,045) | (0.5) |
| Other income                                                  | (3)                                       | -      | 15                                        | - |   | 12 | - | 36 | - |
| Income before  income taxes                         | 20,082                                    | 7.7    | 12,623                                    | 6.4 |   | 39,173 | 7.6 | 23,164 | 6.1 |
| Provision for  income taxes                         | 7,905                                     | 3.0    | 5,013                                     | 2.5 |   | 15,350 | 3.0 | 9,211 | 2.4 |
| Net income                                                    | $  12,177                       | 4.7    | $    7,610            | 3.9 |   | $  23,823 | 4.6 | $  13,953 | 3.7 |
| Per share amounts                                             |                                      |   |                                      |   |   |   |   |   |   |
|   Basic earnings    per share   | $      0.84 |   | $      0.53 |   |   | $      1.66 |   | $      0.97 |   |
|   Diluted earnings    per share | $      0.80 |   | $      0.50 |   |   | $      1.57 |   | $      0.92 |   |

| For the Twelve Months endedJune 30, 2012 |  LeverageRatio       |
|------------------------------------------|---------------------------|
|                                     |                      |
| Income before taxes                      | $   68,004 |
| Interest expense                         | 3,064                     |
| Depreciation and amortization            | 11,949                    |
| Stock compensation expense               | 1,608                     |
| Pro forma acquisition EBITDA             | 10,894                    |
| Reduction of closed location accrual     | (232)                     |
| (A) Defined EBITDA                       | 95,287                    |
|                                     |                      |
| As of June 30, 2012                      |                      |
| Total long-term debt                     | $181,281                  |
| Letters of credit outstanding            | 431                       |
| (B) Defined indebtedness                 | $181,712                  |
|                                     |                      |
| Leverage Ratio (B)/(A)                   | 1.91                      |

|                                                                                                                                                           | June 30, 2012                        |   | December 31, 2011                                                      |   | Increase (Decrease)                              |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|--------|------------------------------------------------------------------------|--------|--------------------------------------------------|
|                                                                                                                                                           | (in Thousands)                       |   |                                                                   |
| Current portion of long-term debt                                                                                                                              | $     3,127 |   | $           694 |   | $       2,433 |
| Long-term debt, less current portion                                                                                                                           | 178,154                              |   | 114,205                                                                |   | 63,949                                           |
| Total long-term debt                                                                                                                                           | 181,281                              |   | $    114,899                                       |   | $     66,382(2)         |
| Amount available                                                                                                                                               | $   24,569(1)         |   | $   78,201(1)                                           |   | $  (53,632) (3)                        |
|  (1) Represents amount available to be borrowed at the indicated date under the Facility.                                                                 |
| (2) The funds obtained from the increase in debt were used to fund acquisitions.                                                                               |
| (3) The $53.6 million decrease in the amount available is primarily a result of borrowing to fund acquisitions, partially offset by cash flow from operations. |

|                      | June 30,  |   | Increase |
|---------------------------|-----------|--------|----------|
|                      | 2012      |   | 2011     |   | (Decrease) |
|                      | (in Days) |
| Days of sales outstanding | 55.9      |   | 56.8     |   | (0.9) |
| Inventory turns           | 7.5       |   | 7.0      |   | 0.5 |

| ISSUER PURCHASES OF EQUITY SECURITIES                                                                                                                                                                                                                                                                                                                                                    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Period                                                                                                                                                                                                                                                                                                                                                                                   | (a)Total Number of Shares (or Units) Purchased | (b)Average Price Paid per Share (or Unit) | (c)Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d)Maximum Number(or Approximate Dollar Value) of Shares (or Units) that may yet be Purchased Under the Plans or Programs |
| April 1, 2012 -April 30, 2012                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |
| May 1, 2012 -May 30, 2012                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |
| June 1, 2012 -June 30, 2012                                                                                                                                                                                                                                                                                                                                                              | 10,300 | $37.53 | 10,300 | 189,700 |
| Total                                                                                                                                                                                                                                                                                                                                                                                    | 10,300 | $37.53 | 10,300 | 189,700 |
| On October 26, 2011, the Board of Directors authorized DXP from time to time to purchase up to 200,000 shares of DXP's common stock over 24 months.  DXP publicly announced the authorization that day.  Purchases may be made in open market or in privately negotiated transactions. DXP had purchased 10,300 shares under this authorization as of June 30, 2012. |

| 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). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3 | Amendment No. 1 to Bylaws (incorporated by reference to Exhibit A to the Registrant’s Current Report on Form 8-K, filed with the Commission on July 28, 2011). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1 | Amendment One to David Little Equity Incentive Program (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the Commission on May 11, 2012). |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | Arrangement Agreement, dated as of April 30, 2012, whereby DXP Enterprises, Inc. agreed to acquire all of the shares of HSE Integrated Ltd., (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the Commission on May 1, 2012). |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | Schedule A to the Arrangement Agreement dated April 30, 2012 between HSE Integrated Ltd., DXP Canada Enterprises Ltd. and DXP Enterprises, Inc., Plan of Arrangement Under Section 193 of the Business Corporations Act (Alberta) (amended as of and effective June 28, 2012) (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K, filed with the Commission on July 13, 2012). |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | Credit Agreement by and among DXP Enterprises, Inc., as US Borrower, DXP Canada Enterprises Ltd., as Canadian Borrower, and Wells Fargo Bank, National Association, as Issuing Lender, Swingline Lender and Administrative Agent for the Lenders, dated as of July 11, 2012 (incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K, filed with the Commission on July 13, 2012). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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. |
|------|------------------------------------------------------------------------------------------------------------------------------------|

| 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. |
|------|------------------------------------------------------------------------------------------------------------------------------------|

| 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. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------|

| 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. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------|

|  101** | Interactive Data Files (to be filed by amendment) |
|-------------|---------------------------------------------------|

| ** | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under these sections. |
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