DXP Enterprises , Inc. (NASDAQ:DXPE) today announced that its Board of Directors authorized a new stock repurchase program (the “program”) under which up to $85.0 million or 2.5 million shares of its outstanding common stock may be acquired in the open market over the next 24 months at the discretion of management. This is after the successful completion of the previous program, whereby, the Company completed the repurchase of $85 million or 2.8 million shares, under the 2-year program which began in December of 2022.
The shares under the new program may be purchased from time to time at prevailing market prices, through open market or privately negotiated transactions, depending upon market conditions. There is no guarantee as to the exact number of shares that will be repurchased, and DXP may discontinue the program at any time management determines additional purchases are not warranted. As of June 30, 2024, DXP had approximately 16.7 million diluted weighted average shares outstanding.
David R. Little, Chairman and Chief Executive Officer commented, "The last few years have demonstrated the resilience of DXP. With continued confidence in our business, the Board of Directors, and the senior management team believe that the Company shares are an attractive investment opportunity. We have transformed our end markets and diversified our business. The Board’s approval of another program reflects confidence in DXP’s future and puts us in a position to create additional shareholder value. We continue to believe that the most accretive and beneficial use of cash at times is the repurchase of our shares. We are confident in our business and committed to opportunistically allocating capital to maximize shareholder value. In order to continue doing so, we are announcing another share repurchase program to maintain flexibility going forward."
Kent Yee, Chief Financial Officer commented, “Today’s announcement illustrates our belief in DXP and maintains our capital allocation options. The continuation of our share repurchase program reflects the Board’s commitment to our disciplined capital allocation strategy and the confidence in our business. Our share repurchase programs demonstrate the confidence we have in our future, our ability to produce free cash flow through different cycles, and our ongoing commitment to create shareholder and stakeholder value. With our growing cash flow, we have the ability to invest in growth, innovate DXP, execute acquisitions, and take this action to deliver shareholder returns and drive long-term growth. We continue to reach new sales highs and see strength in our backlog, while executing on our customer driven focus. We believe the future of DXP is substantial and we look forward to the next chapter."