Climb Global Solutions Reports Record Third Quarter 2024 Results
Climb Global Solutions (NASDAQ:CLMB) reported record Q3 2024 results with significant growth across all key metrics. Net sales increased 52% to $119.3 million, while adjusted gross billings rose 65% to $465.2 million. Net income more than doubled to $5.5 million ($1.19 per share), and adjusted net income reached $7.1 million ($1.55 per share). Adjusted EBITDA grew 96% to $9.9 million.
The company's performance was driven by organic growth in both U.S. and Europe, successful integration of DSS and DataSolutions acquisitions, and deeper relationships with existing customers. The Board declared a quarterly dividend of $0.17 per share, payable on November 15, 2024.
Climb Global Solutions (NASDAQ:CLMB) ha riportato risultati record per il terzo trimestre del 2024, con una crescita significativa in tutte le metriche chiave. Le vendite nette sono aumentate del 52% raggiungendo i 119,3 milioni di dollari, mentre le fatturazioni lorde rettificate sono salite del 65% a 465,2 milioni di dollari. Il reddito netto è più che raddoppiato, arrivando a 5,5 milioni di dollari (1,19 dollari per azione), e il reddito netto rettificato ha raggiunto i 7,1 milioni di dollari (1,55 dollari per azione). L'EBITDA rettificato è cresciuto del 96% a 9,9 milioni di dollari.
Le performance dell'azienda sono state sostenute dalla crescita organica sia negli Stati Uniti che in Europa, dall'integrazione di successo delle acquisizioni di DSS e DataSolutions, e da relazioni più profonde con i clienti esistenti. Il Consiglio ha dichiarato un dividendo trimestrale di 0,17 dollari per azione, pagabile il 15 novembre 2024.
Climb Global Solutions (NASDAQ:CLMB) reportó resultados récord para el tercer trimestre de 2024, con un crecimiento significativo en todas las métricas clave. Las ventas netas aumentaron un 52% alcanzando los 119,3 millones de dólares, mientras que las facturaciones brutas ajustadas crecieron un 65% a 465,2 millones de dólares. La ingresos netos se más que duplicó, alcanzando los 5,5 millones de dólares (1,19 dólares por acción), y el ingreso neto ajustado llegó a 7,1 millones de dólares (1,55 dólares por acción). El EBITDA ajustado creció un 96% a 9,9 millones de dólares.
El rendimiento de la empresa fue impulsado por el crecimiento orgánico tanto en EE.UU. como en Europa, la exitosa integración de las adquisiciones de DSS y DataSolutions, y relaciones más profundas con los clientes existentes. La Junta declaró un dividendo trimestral de 0,17 dólares por acción, pagadero el 15 de noviembre de 2024.
클라임 글로벌 솔루션즈 (NASDAQ:CLMB)는 2024년 3분기 역대 최상의 실적을 보고하며 모든 주요 지표에서 유의미한 성장을 기록했습니다. 순매출은 52% 증가하여 1억 1,930만 달러에 이르렀고, 조정 총 청구액은 65% 상승하여 4억 6,520만 달러에 도달했습니다. 순이익은 550만 달러(주당 1.19 달러)로 두 배 이상 증가하였고, 조정 순이익은 710만 달러(주당 1.55 달러)에 달했습니다. 조정 EBITDA는 96% 성장하여 990만 달러에 이르렀습니다.
회사의 실적은 미국과 유럽 모두에서의 유기적 성장, DSS 및 DataSolutions 인수의 성공적 통합, 기존 고객과의 관계 강화에 의해 추진되었습니다. 이사회는 주당 0.17 달러의 분기 배당금을 선언했으며, 이는 2024년 11월 15일에 지급될 예정입니다.
Climb Global Solutions (NASDAQ:CLMB) a annoncé des résultats record pour le troisième trimestre de 2024, avec une croissance significative dans toutes les principales mesures. Les ventes nettes ont augmenté de 52 %, atteignant 119,3 millions de dollars, tandis que les facturations brutes ajustées ont crû de 65 % pour atteindre 465,2 millions de dollars. Le résultat net a plus que doublé pour atteindre 5,5 millions de dollars (1,19 $ par action), et le résultat net ajusté a atteint 7,1 millions de dollars (1,55 $ par action). L'EBITDA ajusté a augmenté de 96 %, atteignant 9,9 millions de dollars.
La performance de l'entreprise a été soutenue par une croissance organique tant aux États-Unis qu'en Europe, une intégration réussie des acquisitions de DSS et DataSolutions, et des relations plus solides avec les clients existants. Le Conseil a déclaré un dividende trimestriel de 0,17 dollar par action, payable le 15 novembre 2024.
Climb Global Solutions (NASDAQ:CLMB) berichtete über Rekordzahlen im 3. Quartal 2024, mit signifikantem Wachstum über alle wichtigen Kennzahlen. Nettoverkauf stieg um 52% auf 119,3 Millionen Dollar, während bereinigte Bruttoabbuchungen um 65% auf 465,2 Millionen Dollar zulegten. Nettogewinn mehr als verdoppelte sich auf 5,5 Millionen Dollar (1,19 Dollar je Aktie), und bereinigter Nettogewinn erreichte 7,1 Millionen Dollar (1,55 Dollar je Aktie). Bereinigtes EBITDA wuchs um 96% auf 9,9 Millionen Dollar.
Die Leistung des Unternehmens wurde durch organisches Wachstum sowohl in den USA als auch in Europa, die erfolgreiche Integration der Übernahmen von DSS und DataSolutions sowie tiefere Beziehungen zu bestehenden Kunden vorangetrieben. Der Vorstand erklärte eine vierteljährliche Dividende von 0,17 Dollar je Aktie, zahlbar am 15. November 2024.
- Net sales increased 52% to $119.3 million
- Net income more than doubled to $5.5 million
- Adjusted EBITDA grew 96% to $9.9 million
- Gross profit increased 70% to $24.3 million
- Effective margin improved 500 basis points to 41%
- SG&A as percentage of adjusted gross billings decreased to 3.0% from 3.6%
- Cash and cash equivalents decreased to $22.1 million from $36.3 million
- Working capital decreased by $12.3 million
- $0.05 negative FX impact on earnings per diluted share
Insights
Climb Global Solutions delivered outstanding Q3 2024 results with significant growth across all key metrics. Net sales surged
The company's strategic acquisitions of DSS and DataSolutions are proving highly accretive, contributing to both top and bottom-line growth. Operating efficiency improved significantly, with SG&A as a percentage of adjusted gross billings decreasing from
The IT distribution sector is seeing robust demand and Climb's results reflect strong execution in this environment. Double-digit organic growth in both U.S. and European markets, coupled with successful integration of acquisitions, positions the company well in the competitive landscape. The effective margin improvement of 500 basis points to
The quarterly dividend of
Net Income and Adjusted Net Income up more than 2x to
Net Sales up
EATONTOWN, N.J., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Climb Global Solutions, Inc. (NASDAQ:CLMB) (“Climb”, the “Company”, “we”, or “our”), a value-added global IT channel company providing unique sales and distribution solutions for innovative technology vendors, is reporting results for the third quarter ended September 30, 2024.
Third Quarter 2024 Summary vs. Same Year-Ago Quarter
- Net sales increased
52% to$119.3 million . - Adjusted gross billings (a non-GAAP financial measure defined below) increased
65% to$465.2 million . - Net income increased more than 2x to
$5.5 million or$1.19 per diluted share. - Adjusted net income (a non-GAAP financial measure defined below) also increased more than 2x to
$7.1 million or$1.55 per diluted share. - Adjusted EBITDA (a non-GAAP financial measure defined below) increased
96% to$9.9 million .
Management Commentary
“Q3 was another period of exceptional growth for Climb as we generated record levels across all key financial metrics, while delivering on our acquisition objectives,” said CEO Dale Foster. “Our strong performance was driven by the execution of our core initiatives and the integration of DSS and DataSolutions into our operating platform. We also generated double-digit organic growth in both the U.S. and Europe as we deepened relationships with existing customers while signing new, innovative vendors to our line card.
“Looking ahead, we will continue to leverage our global infrastructure to foster organic growth while actively evaluating M&A targets that complement our geographic footprint, expand our service and solution offerings and, most importantly, align with our high-performance culture. We expect to unlock additional synergies from our acquisitions and further improve operating leverage as we execute across our global platform. We believe that these initiatives, coupled with our proven track record of accretive M&A, will enable us to close out 2024 on a strong note and achieve another year of record results.”
Dividend
Subsequent to quarter end, on October 28, 2024, Climb’s Board of Directors declared a quarterly dividend of
Third Quarter 2024 Financial Results
Net sales in the third quarter of 2024 increased
Gross profit in the third quarter of 2024 increased
Selling, general, and administrative (“SG&A”) expenses in the third quarter of 2024 were
Net income in the third quarter of 2024 increased more than 2x to
Adjusted EBITDA in the third quarter of 2024 increased
On September 30, 2024, cash and cash equivalents were
For more information on the non-GAAP financial measures discussed in this press release, please see the section titled, “Non-GAAP Financial Measures,” and the reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures at the end of this press release.
Conference Call
The Company will conduct a conference call tomorrow, October 31, 2024, at 8:30 a.m. Eastern time to discuss its results for the third quarter ended September 30, 2024.
Climb management will host the conference call, followed by a question-and-answer period.
Date: Thursday, October 31, 2024
Time: 8:30 a.m. Eastern time
Toll-free dial-in number: (800) 274-8461
International dial-in number: (203) 518-9814
Conference ID: CLIMB
Webcast: Climb’s Q3 2024 Conference Call
If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.
The conference call will also be available for replay on the investor relations section of the Company’s website at www.climbglobalsolutions.com.
About Climb Global Solutions
Climb Global Solutions, Inc. (NASDAQ:CLMB) is a value-added global IT distribution and solutions company specializing in emerging and innovative technologies. Climb operates across the US, Canada and Europe through multiple business units, including Climb Channel Solutions, Grey Matter and Climb Global Services. The Company provides IT distribution and solutions for companies in the Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & ALM industries.
Additional information can be found by visiting www.climbglobalsolutions.com.
Non-GAAP Financial Measures
Climb Global Solutions uses non-GAAP financial measures, including adjusted gross billings, adjusted net income and adjusted EBITDA, as supplemental measures of the performance of the Company’s business. Use of these financial measures has limitations, and you should not consider them in isolation or use them as substitutes for analysis of Climb’s financial results under generally accepted accounting principles in the United States of America (“U.S. GAAP”). The attached tables provide definitions of these measures and a reconciliation of each non-GAAP financial measure to the most nearly comparable measure under U.S. GAAP.
Forward-Looking Statements
The statements in this release, other than statements of historical fact, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to come within the safe harbor protection provided by those sections. These forward-looking statements are subject to certain risks and uncertainties. Many of the forward-looking statements may be identified by words such as ”look forward,” “believes,” “expects,” “intends,” “anticipates,” “plans,” “estimates,” “projects,” “forecasts,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “under construction,” “in development,” “opportunity,” “target,” “outlook,” “maintain,” “continue,” “goal,” “aim,” “commit,” or similar expressions, or when we discuss our priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations. In this press release, the forward-looking statements relate to, among other things, declaring and reaffirming our strategic goals, future operating results, and the effects and potential benefits of the strategic acquisition on our business. Factors, among others, that could cause actual results and events to differ materially from those described in any forward-looking statements include, without limitation, our ability to recognize the anticipated benefits of the acquisitions of Data Solutions Holdings Limited and Douglas Stewart Software & Services, LLC, the continued acceptance of the Company’s distribution channel by vendors and customers, the timely availability and acceptance of new products, product mix, market conditions, competitive pricing pressures, the successful integration of acquisitions, contribution of key vendor relationships and support programs, inflation, as well as factors that affect the software industry in general. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described in the section entitled “Risk Factors” contained in Item 1A. of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and from time to time in the Company’s filings with the Securities and Exchange Commission.
Company Contact
Drew Clark
Chief Financial Officer
(732) 389-0932
Drew@ClimbGS.com
Investor Relations Contact
Sean Mansouri, CFA or Aaron D’Souza
Elevate IR
(720) 330-2829
CLMB@elevate-ir.com
| CLIMB GLOBAL SOLUTIONS, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
| (Amounts in thousands, except share and per share amounts) | ||||||||
| September 30, 2024 | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 22,139 | $ | 36,295 | ||||
| Accounts receivable, net of allowance for doubtful accounts of | 247,907 | 222,269 | ||||||
| Inventory, net | 4,445 | 3,741 | ||||||
| Prepaid expenses and other current assets | 6,629 | 6,755 | ||||||
| Total current assets | 281,120 | 269,060 | ||||||
| Equipment and leasehold improvements, net | 12,151 | 8,850 | ||||||
| Goodwill | 29,628 | 27,182 | ||||||
| Other intangibles, net | 46,041 | 26,930 | ||||||
| Right-of-use assets, net | 937 | 878 | ||||||
| Accounts receivable long-term, net | 752 | 797 | ||||||
| Other assets | 863 | 1,077 | ||||||
| Deferred income tax assets | 448 | 324 | ||||||
| Total assets | $ | 371,940 | $ | 335,098 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued expenses | $ | 273,893 | $ | 249,648 | ||||
| Lease liability, current portion | 533 | 450 | ||||||
| Term loan, current portion | 555 | 540 | ||||||
| Total current liabilities | 274,981 | 250,638 | ||||||
| Lease liability, net of current portion | 796 | 879 | ||||||
| Deferred income tax liabilities | 5,671 | 5,554 | ||||||
| Term loan, net of current portion | 334 | 752 | ||||||
| Non-current liabilities | 2,490 | 2,505 | ||||||
| Total liabilities | 284,272 | 260,328 | ||||||
| Stockholders' equity | ||||||||
| Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares | ||||||||
| issued, and 4,606,790 and 4,573,448 shares outstanding , respectively | 53 | 53 | ||||||
| Additional paid-in capital | 36,676 | 34,647 | ||||||
| Treasury stock, at cost, 677,710 and 711,052 shares, respectively | (12,777 | ) | (12,623 | ) | ||||
| Retained earnings | 62,560 | 53,215 | ||||||
| Accumulated other comprehensive income (loss) | 1,156 | (522 | ) | |||||
| Total stockholders' equity | 87,668 | 74,770 | ||||||
| Total liabilities and stockholders' equity | $ | 371,940 | $ | 335,098 | ||||
| CLIMB GLOBAL SOLUTIONS, INC. AND SUBSIDIARIES | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (Amounts in thousands, except per share data) | |||||||||||||||
| Nine months ended | Three months ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net Sales | $ | 303,847 | $ | 245,229 | $ | 119,349 | $ | 78,457 | |||||||
| Cost of sales, excluding depreciation and amortization expense | 244,014 | 202,053 | 95,092 | 64,183 | |||||||||||
| Gross profit | 59,833 | 43,176 | 24,257 | 14,274 | |||||||||||
| Selling, general and administrative expenses | 39,433 | 31,930 | 13,937 | 10,122 | |||||||||||
| Depreciation & amortization expense | 2,933 | 1,934 | 1,197 | 617 | |||||||||||
| Acquisition related costs | 1,201 | 277 | 609 | 246 | |||||||||||
| Total selling, general and administrative expenses | 43,567 | 34,141 | 15,743 | 10,985 | |||||||||||
| Income from operations | 16,266 | 9,035 | 8,514 | 3,289 | |||||||||||
| Interest, net | 755 | 760 | 198 | 318 | |||||||||||
| Foreign currency transaction loss | (688 | ) | (100 | ) | (442 | ) | (140 | ) | |||||||
| Change in fair value of acquisition contingent consideration | (1,152 | ) | - | (1,152 | ) | - | |||||||||
| Income before provision for income taxes | 15,181 | 9,695 | 7,118 | 3,467 | |||||||||||
| Provision for income taxes | 3,561 | 2,618 | 1,659 | 1,095 | |||||||||||
| Net income | $ | 11,620 | $ | 7,077 | $ | 5,459 | $ | 2,372 | |||||||
| Income per common share - Basic | $ | 2.54 | $ | 1.57 | $ | 1.19 | $ | 0.52 | |||||||
| Income per common share - Diluted | $ | 2.54 | $ | 1.57 | $ | 1.19 | $ | 0.52 | |||||||
| Weighted average common shares outstanding - Basic | 4,458 | 4,392 | 4,476 | 4,414 | |||||||||||
| Weighted average common shares outstanding - Diluted | 4,458 | 4,392 | 4,476 | 4,414 | |||||||||||
| Dividends paid per common share | $ | 0.51 | $ | 0.51 | $ | 0.17 | $ | 0.17 | |||||||
| Reconciliation of GAAP and Non-GAAP Financial Measures (unaudited) | |||||||||||||||
| (Amounts in thousands, except per share data) | |||||||||||||||
| The table below presents net sales reconciled to Adjusted Gross Billings (Non-GAAP) (1): | |||||||||||||||
| Nine months ended | Three months ended | ||||||||||||||
| September 30, | September 30, | September 30, | September 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net sales | $ | 303,847 | $ | 245,229 | $ | 119,349 | $ | 78,457 | |||||||
| Costs of sales related to sales where the Company is an agent | 876,447 | 618,110 | 345,835 | 203,458 | |||||||||||
| Adjusted gross billings (Non-GAAP) | $ | 1,180,294 | $ | 863,339 | $ | 465,184 | $ | 281,915 | |||||||
(1) We define adjusted gross billings as net sales in accordance with US GAAP, adjusted for the cost of sales related to sales where the Company is an agent. We provided a reconciliation of adjusted gross billings to net sales, which is the most directly comparable US GAAP measure. We use adjusted gross billings of product and services as a supplemental measure of our performance to gain insight into the volume of business generated by our business, and to analyze the changes to our accounts receivable and accounts payable. Our use of adjusted gross billings of product and services as analytical tools has limitations, and you should not consider them in isolation or as substitutes for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate adjusted gross billings of product and services or similarly titled measures differently, which may reduce their usefulness as comparative measures.
| The table below presents net income reconciled to adjusted EBITDA (Non-GAAP) (2): | ||||||||||||||||
| Nine months ended | Three months ended | |||||||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income | $ | 11,620 | $ | 7,077 | $ | 5,459 | $ | 2,372 | ||||||||
| Provision for income taxes | 3,561 | 2,618 | 1,659 | 1,095 | ||||||||||||
| Depreciation and amortization | 2,933 | 1,934 | 1,197 | 617 | ||||||||||||
| Interest expense | 266 | 94 | 105 | 45 | ||||||||||||
| EBITDA | 18,380 | 11,723 | 8,420 | 4,129 | ||||||||||||
| Share-based compensation | 2,810 | 3,422 | 904 | 687 | ||||||||||||
| Acquisition related costs | 1,201 | 277 | 609 | 246 | ||||||||||||
| Adjusted EBITDA | $ | 22,391 | $ | 15,422 | $ | 9,933 | $ | 5,062 | ||||||||
| Nine months ended | Three months ended | |||||||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||||||
| Components of interest, net | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Amortization of discount on accounts receivable with extended payment terms | $ | (23 | ) | $ | (41 | ) | $ | (6 | ) | $ | (12 | ) | ||||
| Interest income | (998 | ) | (813 | ) | (297 | ) | (351 | ) | ||||||||
| Interest expense | 266 | 94 | 105 | 45 | ||||||||||||
| Interest, net | $ | (755 | ) | $ | (760 | ) | $ | (198 | ) | $ | (318 | ) | ||||
(2) We define adjusted EBITDA, as net income, plus provision for income taxes, depreciation, amortization, share-based compensation, interest and acquisition related costs. We define effective margin as adjusted EBITDA as a percentage of gross profit. We provided a reconciliation of adjusted EBITDA to net income, which is the most directly comparable US GAAP measure. We use adjusted EBITDA as a supplemental measure of our performance to gain insight into our businesses profitability when compared to the prior year and our competitors. Adjusted EBITDA is also a component to our financial covenants in our credit facility. Our use of adjusted EBITDA has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate adjusted EBITDA, or similarly titled measures differently, which may reduce their usefulness as comparative measures.
| The table below presents net income reconciled to adjusted net income (Non-GAAP) (3): | |||||||||||||||
| Nine months ended | Three months ended | ||||||||||||||
| September 30, | September 30, | September 30, | September 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income | $ | 11,620 | $ | 7,077 | $ | 5,459 | $ | 2,372 | |||||||
| Acquisition related costs, net of income taxes | 901 | 208 | 457 | 185 | |||||||||||
| One-time CEO stock grant | - | 1,796 | - | - | |||||||||||
| Change in fair value of acquisition contingent consideration | 1,152 | - | 1,152 | - | |||||||||||
| Adjusted net income | $ | 13,673 | $ | 9,081 | $ | 7,068 | $ | 2,557 | |||||||
| Adjusted net income per common share - diluted | $ | 3.00 | $ | 2.03 | $ | 1.55 | $ | 0.56 | |||||||
(3) We define adjusted net income as net income excluding acquisition related costs, net of income taxes, the stock compensation expense recognized for the one-time CEO stock grant, and the change in fair value of acquisition contingent consideration. We provided a reconciliation of adjusted net income to net income, which is the most directly comparable U.S. GAAP measure. We use adjusted net income as a supplemental measure of our performance to gain insight into comparison of our businesses profitability when compared to the prior year. Our use of adjusted net income has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. In addition, other companies, including companies in our industry, might calculate adjusted net income, or similarly titled measures differently, which may reduce their usefulness as comparative measures.
FAQ
What was Climb Global Solutions (CLMB) revenue growth in Q3 2024?
What was CLMB's earnings per share in Q3 2024?
How much did Climb Global Solutions (CLMB) pay in dividends for Q3 2024?
