|   | [X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.  For the quarterly period ended June 30, 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)                                                                                                                                                                                                                         |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                         |   |   |   |
|                                                                                                                                                                                                                                                                                                                                         | June 30, 2009 |   | December 31, 2008 |
|      ASSETS                                                                                                                                                                                                                                                                                                         | (unaudited) |   |   |
| Current assets:                                                                                                                                                                                                                                                                                                                              |   |   |   |
|   Cash                                                                                                                                                                                                                                                                                                                             | $                     2,470 |   | $                     5,698 |
|   Trade accounts receivable, net of allowances for doubtful accounts                                                                                                                                                                                                                                                               |   |   |   |
|     of $3,710 in 2009 and $3,494 in 2008                                                                                                                                                                                                                                                                                 | 77,851 |   | 101,191 |
|   Inventories, net                                                                                                                                                                                                                                                                                                                 | 102,876 |   | 119,097 |
|   Prepaid expenses and other current assets                                                                                                                                                                                                                                                                                        | 3,763 |   | 2,851 |
|   Deferred income taxes                                                                                                                                                                                                                                                                                                            | 5,903 |   | 3,863 |
|      Total current assets                                                                                                                                                                                                                                                                                           | 192,863 |   | 232,700 |
| Property and equipment, net                                                                                                                                                                                                                                                                                                                  | 19,422 |   | 20,331 |
| Goodwill                                                                                                                                                                                                                                                                                                                                     | 100,001 |   | 98,718 |
| Other intangibles, net of accumulated amortization of $13,218 in 2009   and $9,605 in 2008                                                                                                                                                                                                                                    |  41,614 |   |  45,227 |
| Other assets                                                                                                                                                                                                                                                                                                                                 | 707 |   | 880 |
|      Total assets                                                                                                                                                                                                                                                                                                   | $                 354,607 |   | $                 397,856 |
|      LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                                                                     |   |   |   |
| Current liabilities:                                                                                                                                                                                                                                                                                                                         |   |   |   |
|   Current portion of long-term debt                                                                                                                                                                                                                                                                                                | $                   13,817 |   | $                   13,965 |
|   Trade accounts payable                                                                                                                                                                                                                                                                                                           | 42,038 |   | 57,539 |
|   Accrued wages and benefits                                                                                                                                                                                                                                                                                                       | 8,761 |   | 12,869 |
|   Customer advances                                                                                                                                                                                                                                                                                                                | 2,119 |   | 2,719 |
|   Federal income taxes payable                                                                                                                                                                                                                                                                                                     | 5,198 |   | 7,894 |
|   Other accrued liabilities                                                                                                                                                                                                                                                                                                        | 4,223 |   | 8,660 |
|      Total current liabilities                                                                                                                                                                                                                                                                                      | 76,156 |   | 103,646 |
| Long-term debt, less current portion                                                                                                                                                                                                                                                                                                         | 131,150 |   | 154,591 |
| Deferred income taxes                                                                                                                                                                                                                                                                                                                        | 11,004 |   |  9,419 |
| Other liabilities                                                                                                                                                                                                                                                                                                                            | 12 |   | 12 |
| 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, 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 June 30, 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;    12,869,746 in 2009 and 12,863,304 in 2008 shares outstanding                                                                                                                                                                                |  128 |   |  128 |
| Paid-in capital                                                                                                                                                                                                                                                                                                                              | 56,744 |   | 56,206 |
| Retained earnings                                                                                                                                                                                                                                                                                                                            | 79,858 |   | 74,559 |
| Accumulated other comprehensive income (loss)                                                                                                                                                                                                                                                                                                | (461) |   | (721) |
|      Total shareholders’ equity                                                                                                                                                                                                                                                                               | 136,285 |   | 130,188 |
|      Total liabilities and shareholders’ equity                                                                                                                                                                                                                                                               | $                 354,607 |   | $                 397,856 |
|  The accompanying notes are an integral part of these consolidated financial statements.                                                                                                                                                                                                                                                |

----

|                                                                              | Three Months Ended                                                                                    |   | Six Months Ended                                                                                |
|-----------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|
|                                                                              | June 30,                                                                                              |   | June 30,                                                                                        |
|                                                                              | 2009                                                                                                  |   | 2008(Restated)                                                                                  |   | 2009 |   | 2008(Restated) |
| Sales                                                                             | $          144,374                                  |   | $         187,802                                  |   | $        301,978 |   | $        356,301 |
| Cost of sales                                                                     | 102,990                                                                                               |   | 135,926                                                                                         |   | 214,520 |   | 258,479 |
| Gross profit                                                                      | 41,384                                                                                                |   | 51,876                                                                                          |   | 87,458 |   | 97,822 |
| Selling, general and  administrative expense                            |  36,263                                                                                          |   |  40,391                                                                                    |   |  75,645 |   |  75,769 |
| Operating income                                                                  | 5,121                                                                                                 |   | 11,485                                                                                          |   | 11,813 |   | 22,053 |
| Other income                                                                      | 48                                                                                                    |   | 27                                                                                              |   | 62 |   | 40 |
| Interest expense                                                                  | (1,335)                                                                                               |   | (1,176)                                                                                         |   | (2,788) |   | (2,559) |
| Income before income taxes                                                        | 3,834                                                                                                 |   | 10,336                                                                                          |   | 9,087 |   | 19,534 |
| Provision for income taxes                                                        | 1,668                                                                                                 |   | 3,963                                                                                           |   | 3,749 |   | 7,722 |
| Net income                                                                        | 2,166                                                                                                 |   | 6,373                                                                                           |   | 5,338 |   | 11,812 |
| Preferred stock dividend                                                          | (23)                                                                                                  |   | (22)                                                                                            |   | (38) |   | (45) |
| Net income attributable to  common shareholders                         |  $              2,143      |   |  $             6,351      |   |  $            5,300 |   |  $          11,767 |
|                                                                              |                                                                                                  |   |                                                                                            |   |   |   |   |
| Basic income per share                                                            | $                0.16 |   | $               0.49 |   | $              0.40 |   | $              0.92 |
| Weighted average common  shares outstanding                             |  13,103                                                                                          |   |  12,857                                                                                    |   |  13,091 |   |  12,857 |
| Diluted income per share                                                          | $                0.15 |   | $               0.46 |   | $              0.38 |   | $              0.85 |
| Weighted average common and common   equivalent shares outstanding |  13,977                                                                                          |   |  13,837                                                                                    |   |  13,965 |   |  13,837 |
|  See notes to condensed consolidated financial statements.                   |

----

|                                                                                                                                                               | SIX MONTHS ENDED                                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                               | JUNE 30                                                                                                                              |
|                                                                                                                                                               | 2009                                                                                                                                 |   | 2008 |
| OPERATING ACTIVITIES:                                                                                                                                              |                                                                                                                                 |   |   |
| Net income                                                                                                                                                         | $                     5,338 |   | $                   11,812 |
|   Adjustments to reconcile net income to net cash provided                                                                                               |                                                                                                                                 |   |   |
|    by operating activities – net of acquisitions                                                                                              |                                                                                                                                 |   |   |
|     Depreciation                                                                                                                               | 2,187                                                                                                                                |   | 2,036 |
|     Amortization of intangibles                                                                                                                | 3,613                                                                                                                                |   | 2,460 |
|     Compensation expense from restricted stock                                                                                                 | 740                                                                                                                                  |   | 454 |
|     Tax benefit related to vesting of restricted stock                                                                                         | 23                                                                                                                                   |   | - |
|     Deferred income taxes                                                                                                                      | (496)                                                                                                                                |   | (113) |
|     Changes in operating assets and liabilities, net of     assets and liabilities acquired in business combinations: |                                                                                                                                 |   |   |
|       Trade accounts receivable                                                                                                      | 23,340                                                                                                                               |   | (15,532) |
|       Inventories                                                                                                                    | 16,220                                                                                                                               |   | (312) |
|       Prepaid expenses and other current assets                                                                                      | (1,708)                                                                                                                              |   | (1,896) |
|       Accounts payable and accrued liabilities                                                                                       | (27,217)                                                                                                                             |   | 6,500 |
|       Net cash provided by operating activities                                                                                      | 22,040                                                                                                                               |   | 5,409 |
|                                                                                                                                                               |                                                                                                                                 |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                                                              |                                                                                                                                 |   |   |
| Purchase of property and equipment                                                                                                                                 | (1,278)                                                                                                                              |   | (3,202) |
| Purchase of businesses, net of cash acquired                                                                                                                       | (338)                                                                                                                                |   | (3,822) |
|   Net cash used in investing activities                                                                                                                  | (1,616)                                                                                                                              |   | (7,024) |
|                                                                                                                                                               |                                                                                                                                 |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                                                              |                                                                                                                                 |   |   |
| Proceeds from debt                                                                                                                                                 | 59,369                                                                                                                               |   | 25,223 |
| Principal payments on revolving line of credit and other long-term  debt                                                                                 |  (82,960)                                                                                                                       |   |  (21,581) |
| Dividends paid in cash                                                                                                                                             | (38)                                                                                                                                 |   | (45) |
| Tax benefit related to vesting of restricted stock                                                                                                                 | (23)                                                                                                                                 |   | - |
|   Net cash (used in) provided by financing activities                                                                                                    | (23,652)                                                                                                                             |   | 3,597 |
| INCREASE (DECREASE) IN CASH                                                                                                                                        | (3,228)                                                                                                                              |   | 1,982 |
| CASH AT BEGINNING OF PERIOD                                                                                                                                        | 5,698                                                                                                                                |   | 3,978 |
| CASH AT END OF PERIOD                                                                                                                                              | $                     2,470 |   | $                     5,960 |
|                                                                                                                                                               |                                                                                                                                 |   |   |
| See notes to condensed consolidated financial statements.                                                                                                          |

----

|                                                            | Three Months EndedJune 30, |   | Six Months EndedJune 30, |
|-----------------------------------------------------------------|----------------------------|--------|--------------------------|
|                                                            | 2009                       |   | 2008                     |   | 2009 |   | 2008 |
| Net income                                                      | $2,166                     |   | $6,373                   |   | $5,338 |   | $11,812 |
| Gain (loss) from interest rate swap, net of income taxes        | 153                        |   | 390                      |   | 260 |   | (210) |
| Comprehensive income                                            | $2,319                     |   | $6,763                   |   | $5,598 |   | $11,602 |
|  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 June 30, 2009 |  58,000                        |   | $  2.33 |   | 4.0 |   | $    530,000 |

|                    |   | Options Outstanding and Exercisable |
|-------------------------|--------|-------------------------------------|
| Range ofexercise prices |   | Number of OptionsOutstanding        |   | Weighted Average Remaining Contractual Life(in years) |   | Weighted AverageExercisePrice |
| $1.25                   |   |  18,000                        |   | 0.8 |   | $1.25 |
| $2.26 - $3.36           |   | 40,000                              |   | 5.4 |   | $2.81 |
|                    |   |  58,000                        |   | 4.0 |   | $2.33 |

| Number of shares authorized for grants         | 600,000            |
|------------------------------------------------|--------------------|
| Number of shares granted                       | 345,038            |
| Number of shares forfeited                     | 20,923             |
| Number of shares available for future grants   | 275,885            |
| Weighted-average grant price of granted shares | $  15.89 |

----

|                          | Number ofShares |   | Weighted AverageGrant Price |
|-------------------------------|-----------------|--------|-----------------------------|
| Unvested at December 31, 2008 | 215,250         |   | $ 15.91                     |
| Granted                       | 39,016          |   | $ 16.87                     |
| Forfeited                     | (20,923)        |   | $ 12.76                     |
| Vested                        | (6,442)         |   | $ 10.31                     |
| Unvested at June 30, 2009     | 226,901         |   | $ 16.52                     |

|            | June 30, 2009   |   | December 31, 2008 |
|-----------------|----------------------|--------|------------------------|
|            |                 |   |                   |
| Finished goods  | $  101,959 |   | $ 117,582              |
| Work in process | 917                  |   | 1,515                  |
| Inventories     | $  102,876 |   | $ 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 | 1,283                |   | 1,283                           |   | -                         |
| Amortization                        | (3,613)              |   | -                               |   | (3,613)                   |
| Balance as of June 30, 2009         | $  141,615 |   | $  100,001            |   | $   41,614 |

|                   | As of June 30, 2009                        |   | As of December 31, 2008                                            |
|------------------------|--------------------------------------------|--------|--------------------------------------------------------------------|
|                   | GrossCarryingAmount                        |   |  AccumulatedAmortization                                      |   | GrossCarryingAmount |   |  AccumulatedAmortization |
| Vendor agreements      | $      2,496 |   | $          (644) |   | $          2,496 |   | $          (582) |
| Customer relationships | 50,416                                     |   | (11,545)                                                           |   | 50,416 |   | (8,289) |
| Non-compete agreements | 1,920                                      |   | (1,029)                                                            |   | 1,920 |   | (734) |
| Total                  | $    54,832            |   | $     (13,218)                            |   | $        54,832 |   | $       (9,605) |

----

|                                                                                                               | Three Months Ended                                                            |   | Six Months Ended                                                              |
|--------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|
|                                                                                                               | June 30                                                                       |   | June 30                                                                       |
|                                                                                                               | 2009                                                                          |   | 2008(Restated)                                                                |   | 2009 |   | 2008(Restated) |
| Basic:                                                                                                             |                                                                          |   |                                                                          |   |   |   |   |
|   Weighted average shares outstanding                                                                    | 13,103,396                                                                    |   | 12,856,596                                                                    |   | 13,091,041 |   | 12,856,596 |
|   Net income                                                                                             | $   2,166,000                                                  |   | $  6,373,000                                                        |   | $  5,338,000 |   | $ 11,812,000 |
|   Convertible preferred stock dividend                                                                   | (23,000)                                                                      |   | (22,000)                                                                      |   | (38,000) |   | (45,000) |
|   Net income attributable to    common shareholders                                  |  $   2,143,000                                            |   |  $  6,351,000                                                  |   |  $  5,300,000 |   |  $ 11,767,000 |
|   Per share amount                                                                                       | $            0.16 |   | $            0.49 |   | $           0.40 |   | $            0.92 |
|                                                                                                               |                                                                          |   |                                                                          |   |   |   |   |
| Diluted:                                                                                                           |                                                                          |   |                                                                          |   |   |   |   |
|   Weighted average shares outstanding                                                                    | 13,103,396                                                                    |   | 12,856,596                                                                    |   | 13,091,041 |   | 12,856,596 |
|   Net effect of dilutive stock options –    based on the treasury stock method |   34,018                                                            |   |  140,551                                                                 |   |  33,891 |   |  140,337 |
|   Assumed conversion of convertible    preferred stock                               |  840,000                                                                 |   |  840,000                                                                 |   |  840,000 |   |  840,000 |
|   Total                                                                                                  | 13,977,414                                                                    |   | 13,837,147                                                                    |   | 13,964,932 |   | 13,836,933 |
|   Net income attributable to    common shareholders                                  |  $   2,143,000                                            |   |  $  6,351,000                                                  |   |  $  5,300,000 |   |  $ 11,767,000 |
|   Convertible preferred stock dividend                                                                   | 23,000                                                                        |   | 22,000                                                                        |   | 38,000 |   | 45,000 |
|   Net income for diluted earnings per share                                                              | $   2,166,000                                                  |   | $  6,373,000                                                        |   | $  5,338,000 |   | $ 11,812,000 |
|   Per share amount                                                                                       | $            0.15 |   | $            0.46 |   | $           0.38 |   | $            0.85 |

----

|                | Three Months ended June 30, |   | Six Months ended June 30,                                                               |
|---------------------|-----------------------------|--------|-----------------------------------------------------------------------------------------|
|                | MRO                         |   | ElectricalContractor                                                                    |   |  Total |   | MRO |   | ElectricalContractor |   |  Total |
|                |                        |   |                                                                                    |   |   |   |   |   |   |   |   |
| 2008                |                        |   |                                                                                    |   |   |   |   |   |   |   |   |
| Sales               | $  186,823        |   | $            979            |   | $   187,802 |   | $  354,419 |   | $        1,882 |   | $   356,301 |
| Operating income    | 11,315                      |   |               170 |   |      11,485 |   | 21,742 |   | 311 |   | 22,053 |
| Income before taxes | 10,199                      |   | 137                                                                                     |   | 10,336 |   | 19,286 |   | 248 |   | 19,534 |
| 2009                |                        |   |                                                                                    |   |   |   |   |   |   |   |   |
| Sales               | $  143,666        |   | $            708            |   | $   144,374 |   | $  300,585 |   | $        1,393 |   | $   301,978 |
| Operating income    | 5,049                       |   | 72                                                                                      |   | 5,121 |   | 11,678 |   | 135 |   | 11,813 |
| Income before taxes | 3,791                       |   | 43                                                                                      |   | 3,834 |   | 9,013 |   | 74 |   | 9,087 |

| NOTE 9: | ACQUISITIONS |
|---------|--------------|

| 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 EndedJune 30, 2008 | Six MonthsEndedJune 30, 2008 |
|------------------------------|---------------------------------------|------------------------------|
|                         |                                  |                         |
| Net sales                    | $  208,657                  | $  398,915         |
| Net income                   | 6,993                                 | 13,366                       |
| Per share data               |                                  |                         |
|   Basic earnings   | $0.54                                 | $1.04                        |
|   Diluted earnings | $0.51                                 | $0.97                        |

----

|                                                  | Fair Value Measurement                                      |
|-------------------------------------------------------|----------------------------------------------------------------------------|
| Description (Liabilities)                             | Level 1                                                               |    | Level 2 |    | Level 3 |    | Total |
| Current liabilities – Other accrued liabilities | $            - |    | $            - |    | $       768 |    | $     768 |
| Non-current liabilities                               |       -                                      |    |      - |   | - |   | - |
| Total                                                 | $            - |    | $            - |    | $       768 |    | $     768 |

|                                                                                     | Interest Rate Swap                 |
|------------------------------------------------------------------------------------------|------------------------------------|
|                                                                                     | 2009                               |   | 2008 |
| Three Months Ended June 30                                                               |                               |   |   |
| Fair value at April 1                                                                    | $  1,023                 |   | $  1,000 |
| Realized and unrealized (gains) losses  included in other comprehensive income |  (255)                        |   |  (650) |
| Fair value at June 30                                                                    | $     768 |   | $     350 |
|                                                                                     |                               |   |   |
| Six Months Ended June 30                                                                 |                               |   |   |
| Fair value at January 1                                                                  | $  1,202                 |   | $          - |
| Realized and unrealized (gains) losses  included in other comprehensive income |  (434)                        |   |  350 |
| Fair value at June 30                                                                    | $     768 |   | $     350 |

|                                                     | Three Months EndedJune 30 |         | Six Months EndedJune 30 |
|----------------------------------------------------------|---------------------------|--------------|-------------------------|
|                                                     | 2009                      |         | 2008                    |   | 2009 |   | 2008 |
| Net income                                               | $2,166                    |    | $6,373                  |   | $5,338 |   | $11,812 |
| Gain (loss) from interest rate swap, net of income taxes | 153                       |         | 390                     |   | 260 |   | (210) |
| Other comprehensive income                               | $2,319                    |    | $6,763                  |   | $5,598 |   | $11,602 |

----

|   |   |
|--------|--------|

|                                                              | Three Months Ended June 30,                              |   | Six Months Ended June 30, |
|-------------------------------------------------------------------|----------------------------------------------------------|--------|---------------------------|
|                                                              | 2009                                                     |   | %                         |   | 2008 |   | % |   | 2009 |   | % |   | 2008 |   | % |
|                                                              | (in thousands, except percentages and per share amounts) |
| Sales                                                             | $144,374                                                 |   | 100.0                     |   | $187,802 |   | 100.0 |   | $301,978 |   | 100.0 |   | $356,301 |   | 100.0 |
| Cost of sales                                                     | 102,990                                                  |   | 71.3                      |   | 135,926 |   | 72.4 |   | 214,520 |   | 71.0 |   | 258,479 |   | 72.5 |
| Gross profit                                                      | 41,384                                                   |   | 28.7                      |   | 51,876 |   | 27.6 |   | 87,458 |   | 29.0 |   | 97,822 |   | 27.5 |
| Selling, general and  administrative  expense |   36,263                                       |   |   25.1          |   |   40,391 |   |   21.5 |   |   75,645 |   |   25.1 |   |   75,769 |   |   21.3 |
| Operating income                                                  | 5,121                                                    |   | 3.6                       |   | 11,485 |   | 6.1 |   | 11,813 |   | 3.9 |   | 22,053 |   | 6.2 |
| Interest expense                                                  | (1,335)                                                  |   | (0.9)                     |   | (1,176) |   | (0.6) |   | (2,788) |   | (0.9) |   | (2,559) |   | (0.7) |
| Other income                                                      | 48                                                       |   | -                         |   | 27 |   | - |   | 62 |   | - |   | 40 |   | - |
| Income before  income taxes                             |  3,834                                              |   |  2.7                 |   |  10,336 |   |  5.5 |   |  9,087 |   |  3.0 |   |  19,534 |   |  5.5 |
| Provision for  income taxes                             |  1,668                                              |   |  1.2                 |   |  3,963 |   |  2.1 |   |  3,749 |   |  1.2 |   |  7,722 |   |  2.2 |
| Net income                                                        | $    2,166                           |   | 1.5                       |   | $    6,3733 |   | 3.4 |   | $  5,338 |   | 1.8 |   | 11,812 |   | 3.3 |
| Per share amounts                                                 |                                                     |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings  per share                               |  $0.16                                              |   |                      |   |  $0.49 |   |   |   |  $0.41 |   |   |   |  $0.92 |   |   |
| Diluted earnings  per share                             |  $0.16                                              |   |                      |   |  $0.46 |   |   |   |  $0.38 |   |   |   |  $0.85 |   |   |

----

----

----

----

|                                 | June 30,2009                                         |   | December 31, 2008                              |   | Increase(Decrease)                                         |
|--------------------------------------|------------------------------------------------------|--------|------------------------------------------------|--------|------------------------------------------------------------|
|                                 | (in Thousands)                                       |   |                                           |
| Current portion of long-term debt    | $       13,817    |   | $      13,965    |   | $        (148)     |
| Long-term debt, less current portion |        131,150    |   |       154,591    |   |      (23,441)                     |
| Total long-term debt                 | $     144,967               |   | $    168,556               |   | $   (23,589) (2)                            |
| Amount available                     | $       36,239(1) |   | $      36,951(1) |   | $        (712) (3) |

|                                           | June 30, 2009 |   | Increase |
|------------------------------------------------|---------------|--------|----------|
|                                           | 2009          |   | 2008     |   | (Decrease) |
| Days of sales outstanding  (in days) | 49.0          |   | 50.6     |   | (1.6) |
| Inventory turns                                | 4.2           |   | 5.9      |   | (1.7) |

----

| 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 MonthsEndedJune 30, 2008 |   | Six MonthsEndedJune 30, 2008 |
|----------------------------|--------|--------------------------------|--------|------------------------------|
| Net sales                  |   | $  208,657           |   | $  398,915         |
| Net income                 |   | 6,993                          |   | 13,366                       |
| Per share data             |   |                           |   |                         |
|   Basic earnings |   | $0.54                          |   | $1.04                        |
|   Diluted        |   | $0.51                          |   | $0.97                        |

----

----

| 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 |
|----------------|---------------------|

----

|               | Shares/VotesVoted For | Shares/VotesWithheld |
|--------------------|-----------------------|----------------------|
| David Little       | 11,720,858            | 155,726              |
| Cletus Davis       | 11,741,779            | 134,805              |
| Timothy P. Halter  | 11,711,103            | 165,481              |
| Kenneth H. Miller  | 11,618,811            | 257,773              |
| Charles R. Strader | 11,284,361            | 592,223              |

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

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

| 10.1 | Amendment No. Two to Employment Agreement dated effective as of January 1, 2004 (incorporated by reference to the Company’s Current Report on Form 8-K (Reg. No. 000-21513) filed with the Securities and Exchange Commission on May 22, 2009. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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