About Rocky Mountain Chocolate Factory, Inc. DURANGO, Colo., June 05, 2024 (GLOBE NEWSWIRE) -- Rocky Mountain Chocolate Factory Inc. (NASDAQ:RMCF) (the "Company", "we", or "RMCF"), an international franchisor and producer of premium chocolates and other confectionery products including gourmet caramel apples, today announced that as a result of Jeff Geygan's recent appointment to Interim-CEO, he has yielded his position as Chair of the Board of Directors ("Board"), in accordance with the Company's governanc ...

EATONTOWN, N.J., May 14, 2024 (GLOBE NEWSWIRE) -- Climb Channel Solutions, an international specialty technology distributor and wholly owned subsidiary of Climb Global Solutions, Inc. (NASDAQ:CLMB), announced Monday, May 13, 2024 that CRN®, a brand of The Channel Company, has named seven women at Climb Channel Solutions to the Women of the Channel list for 2024 and the Climb VP of Marketing Worldwide to the 2024 Women of the Channel Power 100, an elite subset of prominent leaders selected from the CRN® 202 ...

Luis AlvarezIntroduction This year I have been conducting screens based on the criteria outlined in Chris Mayer’s classic 100 Baggers. I’m looking for very small companies with high profitability, impressive growth rates, solid balance sheets, and reasonable valuations. Climb Global Solutions (NASDAQ:CLMB) came to my attention because it fit those criteria. The company, with a market cap under $500 million, is ignored by institutional investors. Only one analyst covers the stock and only three funds ha ...

Climb Global Solutions, Inc. (NASDAQ:CLMB) Q1 2024 Earnings Conference Call May 2, 2024 8:30 AM ET Company Participants Sean Mansouri - IR Advisor, Elevate IR Dale Foster - CEO Andrew Clark - CFO Conference Call Participants Vincent Colicchio - Barrington Research Howard Root - Private Investor Bill Dezellem - Tieton Capital Operator Good morning, everyone, and thank you for participating in today's Conference Call to discuss Climb Global Solutions Financial Results for the First Quarter ended March 31, 202 ...

Financial Performance - Net sales increased by 9%, or $7.4 million, to $92.4 million for the three months ended March 31, 2024, compared to $85.0 million for the same period in the prior year[101] - Gross profit increased by 12%, or $1.8 million, to $17.0 million for the three months ended March 31, 2024, compared to $15.2 million for the same period in the prior year[90] - Net income decreased by 18%, or $0.5 million, to $2.8 million for the three months ended March 31, 2024, compared to $3.3 million for the same period in the prior year[101] - Diluted income per share decreased by 19%, or $0.14, to $0.60 for the three months ended March 31, 2024, compared to $0.74 for the same period in the prior year[101] - Net income for the quarter ended March 31, 2024, was $2,731 thousand, compared to $3,324 thousand for the same period in 2023, indicating a decrease of about 17.8%[146] - Basic and diluted income per common share for the three months ended March 31, 2024, was $0.60, down from $0.74 in the same period of 2023[168] Expenses and Costs - Selling, general and administrative expenses increased by 22%, or $2.3 million, to $12.5 million for the three months ended March 31, 2024, compared to $10.2 million for the same period in the prior year[101] - Depreciation and amortization expense increased by 22%, or $0.2 million, to $0.9 million for the three months ended March 31, 2024, compared to $0.7 million for the same period in the prior year[101] - The Company incurred acquisition-related costs of $123 thousand in the three months ended March 31, 2024, compared to $22 thousand in the same period of 2023[168] - The Company recognized total amortization expense for other intangibles of $0.7 million for the three months ended March 31, 2024, compared to $0.5 million for the same period in 2023[182] Profitability Metrics - Gross profit margin decreased to 32.5% compared to 37.4% for the same period in the prior year[90] - Effective margin decreased to 3.8% for the three months ended March 31, 2024, compared to 5.0% for the same period in the prior year[88] - Distribution segment gross profit increased by 12%, or $1.5 million, to $14.2 million for the three months ended March 31, 2024, compared to $12.7 million in the prior year[297] Assets and Liabilities - Total current assets decreased from $269,060 thousand as of December 31, 2023, to $232,643 thousand as of March 31, 2024, representing a decline of approximately 13.5%[142] - The company's total liabilities decreased from $260,328 thousand as of December 31, 2023, to $221,873 thousand as of March 31, 2024, a reduction of approximately 14.7%[142] - The company’s total assets decreased from $335,098 thousand as of December 31, 2023, to $298,322 thousand as of March 31, 2024, a decline of about 11%[142] - As of March 31, 2024, total lease liabilities amounted to $1.266 billion, with a current portion of $495 million[184] - The Company had $1.2 million outstanding under a term loan as of March 31, 2024, which bears interest at a rate of 3.73% per annum[304] Cash Flow and Dividends - Cash and cash equivalents increased from $36,295 thousand as of December 31, 2023, to $43,572 thousand as of March 31, 2024, reflecting an increase of about 20.5%[142] - Cash and cash equivalents at the end of the period were $43,572 thousand, a decrease from $61,741 thousand at the end of the same period in 2023[173] - Operating cash flow for the three months ended March 31, 2024, was $14,047 thousand, compared to $43,610 thousand for the same period in 2023, indicating a significant decrease[173] - Total dividends paid were $0.7 million during the three months ended March 31, 2024, compared to $0.7 million for the same period in the prior year[100] - The company paid dividends of $0.17 per common share, totaling $756 thousand for the quarter ended March 31, 2024[146] Foreign Operations and Market Conditions - The company reported net sales from foreign operations of $28.2 million for the three months ended March 31, 2024, compared to $24.6 million for the same period in 2023, representing an increase of about 14.6%[152] - The company anticipates continued market challenges and pricing pressures, which may affect future sales and gross profit margins[165] - The company reported a foreign currency transaction loss of $85 thousand for the three months ended March 31, 2024, compared to a gain of $44 thousand in the same period of 2023[168] Customer and Acquisition Information - The Company had two major customers accounting for 20% and 15% of total net sales during the three months ended March 31, 2024[296] - The acquisition of Data Solutions was completed for an aggregate purchase price of approximately €15.0 million (equivalent to $15.9 million USD)[118] - The purchase consideration for the acquisition included approximately $2.3 million in fair value for potential earn-out consideration, with an undiscounted payment range of zero to approximately $3.9 million[181] - The fair value earn-out measurement for the acquisition was primarily based on Level 3 inputs, reflecting assumptions market participants would use to value these liabilities[181] Vendor and Rebates - Vendor rebates and discounts for the three months ended March 31, 2024, were $1.9 million, compared to $1.7 million for the same period in the prior year[298]

Financial Performance - Q1 2024 net sales increased 9% year-over-year to $92.4 million, up from $85.0 million in Q1 2023[3][23] - Adjusted gross billings rose 16% to $355.3 million compared to $306.7 million in the same period last year[3][23] - Gross profit for Q1 2024 was $17.0 million, a 12% increase from $15.2 million in Q1 2023[6] - Net income decreased to $2.7 million or $0.60 per diluted share, down from $3.3 million or $0.74 per diluted share in Q1 2023[3][7] - Adjusted EBITDA for Q1 2024 was $5.5 million, slightly down from $5.7 million in the prior year[3][25] - Net sales for the three months ended March 31, 2024, increased to $92,422 million, up from $85,040 million for the same period in 2023, representing a growth of approximately 5.1%[38] - Gross profit for the same period rose to $17,020 million, compared to $15,209 million in the prior year, reflecting an increase of about 11.9%[38] - Net income decreased to $2,731 million for the three months ended March 31, 2024, down from $3,324 million in 2023, a decline of approximately 17.8%[40] - Adjusted EBITDA for the three months ended March 31, 2024, was $5,538 million, slightly down from $5,681 million in the same period last year, a decrease of about 2.5%[40] Expenses and Costs - SG&A expenses increased to $12.5 million, with DataSolutions contributing $1.1 million to the rise[24] - Total selling, general, and administrative expenses increased to $13,517 million, compared to $10,976 million in the prior year, marking a rise of approximately 23.2%[38] - Interest expense for the three months ended March 31, 2024, was $101 million, significantly higher than $28 million in the same period of 2023[40] - Provision for income taxes was $890 million for the three months ended March 31, 2024, down from $1,065 million in the previous year, a decrease of about 16.4%[40] Cash and Dividends - Cash and cash equivalents as of March 31, 2024, were $43.6 million, up from $36.3 million at the end of 2023[8] - A quarterly dividend of $0.17 per share was declared, payable on May 17, 2024[22] - Dividends paid per common share remained unchanged at $0.17 for both periods[38] Future Outlook - The company plans to remain active in M&A to enhance offerings and expand presence in North America and overseas[21] - The company expects to return to growth with key vendors in the second half of the year[4] Adjusted Metrics - Adjusted gross billings (Non-GAAP) for the three months ended March 31, 2024, reached $355,269 million, up from $306,712 million in 2023, an increase of approximately 15.8%[39] - Weighted average common shares outstanding remained stable at 4,438 million for both basic and diluted shares[38]

EATONTOWN, N.J., April 25, 2024 (GLOBE NEWSWIRE) -- Climb Channel Solutions, an international specialty technology distributor and wholly owned subsidiary of Climb Global Solutions, Inc. (NASDAQ:CLMB), announced the launch of a new partnership with Automox, a leading cloud-native IT automation endpoint management solution, now available to their North American partners. With the addition of Automox, Climb partners can provide customers the capabilities to save time, eliminate risk, and automate the patching ...

EATONTOWN, N.J., April 18, 2024 (GLOBE NEWSWIRE) -- Climb Global Solutions, Inc. (NASDAQ:CLMB) ("Climb" or the "Company"), a value-added global IT channel company providing unique sales and distribution solutions for innovative technology vendors, will host a conference call on Thursday, May 2, 2024 at 8:30 a.m. Eastern time to discuss its financial results for the first quarter ended March 31, 2024. The Company's results will be reported in a press release prior to the call. Climb's management will host th ...

Investors looking for stocks in the Technology Services sector might want to consider either Futu Holdings Limited Sponsored ADR (FUTU) or Climb Global Solutions (CLMB) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings es ...

PART I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) Climb Global Solutions operates in IT distribution (92% of net sales) and solutions, expanding vendor base, cloud offerings, and acquisitions - The company operates through two main segments: Distribution (**92% of 2023 net sales**) and Solutions (**8% of 2023 net sales**)[127](index=127&type=chunk)[160](index=160&type=chunk) - The Distribution segment operates on a low gross margin but profitable model by leveraging efficient, scalable systems like drop-shipping and EDI, requiring low capital investment[159](index=159&type=chunk) - Strategic growth is driven by recruiting new software vendors, expanding cloud offerings, and making strategic acquisitions. The company completed the acquisition of Data Solutions in **2023** to expand its footprint in the UK and Ireland[138](index=138&type=chunk)[139](index=139&type=chunk)[162](index=162&type=chunk) - The company competes with large distributors like Arrow Electronics, TD Synnex, and Ingram Micro by offering more flexibility and specialized support for emerging technology vendors[150](index=150&type=chunk) - As of December 31, **2023**, the company had **365 employees**, with **181** in the Americas and **184** in EMEA[198](index=198&type=chunk)[180](index=180&type=chunk) [Item 1A. Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant business, financial, operational, and legal risks, including customer/vendor dependency, intense competition, and cybersecurity threats - The company is highly dependent on a limited number of customers and vendors. In **2023**, the two largest customers accounted for **35% of net sales**, and the top five accounted for **51%**. The top five vendors represented approximately **40% of purchases**[233](index=233&type=chunk)[232](index=232&type=chunk) - The IT industry is intensely competitive, with pressure on pricing from larger competitors and the risk of vendors selling directly to end-users, which could erode market share and margins[208](index=208&type=chunk)[231](index=231&type=chunk) - Acquisitions are a key part of the growth strategy but involve risks such as integration challenges, unanticipated costs, and potential loss of key employees from acquired companies[235](index=235&type=chunk)[212](index=212&type=chunk)[237](index=237&type=chunk) - International operations, which accounted for **26% of net sales in 2023**, expose the company to risks including foreign currency fluctuations, compliance with international laws, and political instability[214](index=214&type=chunk)[11](index=11&type=chunk) - Cybersecurity threats pose a significant risk. A failure to maintain the security of confidential information could lead to business disruption, financial penalties, and reputational damage[191](index=191&type=chunk)[218](index=218&type=chunk) - Financial risks include credit risk associated with offering payment terms to customers, interest rate risk on variable-rate debt, and the potential for goodwill impairment charges if future valuations decline[188](index=188&type=chunk)[217](index=217&type=chunk)[250](index=250&type=chunk) [Item 1C. Cybersecurity](index=32&type=section&id=Item%201C.%20Cybersecurity) The company implements a comprehensive cyber risk management program, overseen by the Board, focusing on prevention, detection, and mitigation - The company employs a layered cybersecurity strategy based on prevention, detection, and mitigation, with policies aligned to NIST, PCI-DSS, and CIS standards[255](index=255&type=chunk) - Oversight is provided by the Board's Risk and Security Committee, with the Chief Information Officer responsible for program implementation and reporting[278](index=278&type=chunk) - All employees are required to complete annual cybersecurity training, and the company conducts periodic penetration tests and simulations to ensure program robustness[278](index=278&type=chunk) - To date, cybersecurity risks have not materially affected the company's business, financial position, or results of operations[279](index=279&type=chunk) [Item 2. Properties](index=32&type=section&id=Item%202.%20Properties) The company's properties include a leased 20,000 sq ft HQ in Eatontown, NJ, other leased offices, and an owned 5,800 sq ft facility in Dublin, Ireland - The corporate headquarters is a leased **20,000 sq. ft.** space in Eatontown, NJ, under a lease expiring in **April 2027**[256](index=256&type=chunk) - The company owns a **5,800 sq. ft.** office and warehouse in Dublin, Ireland, which was acquired with Data Solutions[258](index=258&type=chunk) - Additional leased properties include warehouse space in Eatontown, NJ, and offices in the UK, Colorado, and Maryland[281](index=281&type=chunk) [Item 3. Legal Proceedings](index=34&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings, only routine matters incidental to business - The company is not currently a party to any material legal proceedings[509](index=509&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=34&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq (CLMB), declared **$0.68** dividends in **2023/2022**, and has an active share repurchase program - The company's common stock is traded on The Nasdaq Global Market under the symbol '**CLMB**'[283](index=283&type=chunk) - Dividends of **$0.68 per share** were declared in both **2023** and **2022**[260](index=260&type=chunk) - As of December 31, **2023**, the company is authorized to repurchase an additional **545,786 shares** under its existing plan. No shares were repurchased during the fourth quarter of **2023**[371](index=371&type=chunk)[286](index=286&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net sales grew **16%** to **$352.0M** in **2023** due to organic growth and acquisitions, while net income slightly decreased despite strong operating cash flow Financial Performance Summary (2023 vs. 2022) | Metric | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $352.0M | $304.3M | +16% | | Gross Profit | $64.2M | $54.1M | +19% | | SG&A Expenses | $44.3M | $34.1M | +30% | | Net Income | $12.3M | $12.5M | -2% | | Diluted EPS | $2.72 | $2.81 | -3% | Non-GAAP Financial Measures (2023 vs. 2022) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Adjusted Gross Billings | $1,260.4M | $1,064.7M | | Adjusted EBITDA | $24.6M | $21.1M | | Effective Margin % | 38.3% | 39.1% | - Net sales growth was driven by organic growth in the Distribution segment and the impact of the Data Solutions acquisition. Adjusted gross billings in the Distribution segment increased by **18%** to **$1.18 billion**[340](index=340&type=chunk) - The increase in SG&A expenses was primarily due to higher payroll costs associated with higher gross profit and the impact of the Data Solutions acquisition[385](index=385&type=chunk) - Cash and cash equivalents increased by **$16.1 million** to **$36.3 million** at year-end, primarily due to **$42.1 million** in net cash provided by operating activities[389](index=389&type=chunk)[370](index=370&type=chunk) - In May **2023**, the company entered into a new **$50.0 million** revolving credit facility with JPMorgan Chase Bank, N.A., replacing its previous facility. No amounts were outstanding as of December 31, **2023**[393](index=393&type=chunk) [Item 9A. Controls and Procedures](index=55&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and independent auditors concluded the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2023 - Management concluded that the company's disclosure controls and procedures were effective as of December 31, **2023**[376](index=376&type=chunk) - Internal control over financial reporting was deemed effective as of December 31, **2023**, based on the COSO **2013** framework[421](index=421&type=chunk) - The assessment of internal controls excluded the operations of Data Solutions, acquired on October 6, **2023**, which constituted **17% of total assets** and **4% of consolidated net sales**[378](index=378&type=chunk)[457](index=457&type=chunk) - The independent registered public accounting firm, BDO USA, P.C., audited and provided an unqualified opinion on the effectiveness of the company's internal control over financial reporting[403](index=403&type=chunk)[437](index=437&type=chunk) PART IV [Item 15. Exhibits, Financial Statement Schedules](index=59&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the Consolidated Financial Statements, Schedule II, and various exhibits, including acquisition agreements, credit agreements, and executive compensation plans - This item includes the Consolidated Financial Statements and Schedule II—Valuation and Qualifying Accounts[408](index=408&type=chunk) - Filed exhibits include the Share Purchase Agreement for the Data Solutions acquisition (dated Oct 6, **2023**) and the Spinnakar acquisition (dated Aug 18, **2022**)[427](index=427&type=chunk) - The Credit Agreement with JPMorgan Chase Bank, N.A., dated May 18, **2023**, is included as an exhibit[427](index=427&type=chunk) - Management and compensatory plans, such as the **2021** Omnibus Incentive Plan and the Executive Severance and Change in Control Plan, are also filed as exhibits[430](index=430&type=chunk) Financial Statements and Supplementary Data [Note 2. Summary of Significant Accounting Policies](index=76&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) The company's significant accounting policies cover EPS calculation, cash equivalents, revenue recognition, goodwill impairment, income taxes, and stock-based compensation - Revenue is recognized when control of products and services transfers to customers. For transactions where the company acts as an agent (e.g., certain third-party maintenance and cloud services), revenue is recognized on a net basis[102](index=102&type=chunk)[103](index=103&type=chunk) - Goodwill is tested for impairment annually as of October 1, or more frequently if impairment indicators arise, using either a qualitative or quantitative assessment at the reporting unit level[14](index=14&type=chunk)[24](index=24&type=chunk) - Earnings per share (EPS) is calculated using the two-class method, which allocates earnings to common stock and participating securities (like non-vested restricted stock with dividend rights)[1](index=1&type=chunk) Earnings Per Share Calculation (2023 vs. 2022) | (in thousands, except per share data) | 2023 | 2022 | | :--- | :--- | :--- | | Net Income | $12,323 | $12,497 | | Less: Income allocated to participating securities | $323 | $317 | | **Net Income Attributable to Common Shareholders** | **$12,000** | **$12,180** | | Weighted Average Common Shares (Basic & Diluted) | 4,401 | 4,331 | | **Basic & Diluted Net Income Per Share** | **$2.72** | **$2.81** | - The company may use foreign exchange forward contracts to hedge currency exposures but does not apply hedge accounting; changes in fair value are recorded in earnings[22](index=22&type=chunk) [Note 3. Acquisition](index=89&type=section&id=Note%203.%20Acquisition) On October 6, 2023, the company acquired Data Solutions for **€15.0 million** (**$15.9 million** USD), recognizing **$7.1 million** goodwill and **$8.3 million** vendor relationships - On October 6, **2023**, the company acquired Data Solutions for a total purchase consideration of **$18.1 million**, including a **$2.2 million** contingent earn-out liability[565](index=565&type=chunk)[546](index=546&type=chunk) Preliminary Purchase Price Allocation for Data Solutions Acquisition | (in thousands) | Amount | | :--- | :--- | | Cash | $3,190 | | Accounts receivable | $32,503 | | Vendor relationships (intangible) | $8,269 | | Goodwill | $7,143 | | Accounts payable & other liabilities | ($34,793) | | Deferred tax liability | ($1,576) | | **Net assets acquired** | **$18,095** | - The goodwill from the acquisition was allocated to the Distribution segment and is not deductible for tax purposes[568](index=568&type=chunk) - For the year ended December 31, **2023**, the Data Solutions acquisition contributed approximately **$14.3 million** in revenue and **$0.8 million** in net income[519](index=519&type=chunk)[545](index=545&type=chunk) [Note 4. Goodwill and Other Intangible Assets](index=94&type=section&id=Note%204.%20Goodwill%20and%20Other%20Intangible%20Assets) Goodwill increased to **$27.2 million** in **2023** due to the Data Solutions acquisition, with other intangibles totaling **$26.9 million** and projected **$3.0 million** annual amortization Goodwill by Segment (2022-2023) | (in thousands) | Distribution | Solutions | Consolidated | | :--- | :--- | :--- | :--- | | **Balance Jan 1, 2022** | **$8,141** | **$9,047** | **$17,188** | | Goodwill acquired | $3,244 | $0 | $3,244 | | Translation adjustments | ($703) | ($766) | ($1,469) | | **Balance Dec 31, 2022** | **$10,682** | **$8,281** | **$18,963** | | Goodwill acquired | $7,143 | $0 | $7,143 | | Translation adjustments | $833 | $243 | $1,076 | | **Balance Dec 31, 2023** | **$18,658** | **$8,524** | **$27,182** | Other Intangible Assets, Net (as of Dec 31, 2023) | (in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | | :--- | :--- | :--- | :--- | | Customer and vendor relationships | $30,968 | $4,424 | $26,544 | | Trade name | $489 | $103 | $386 | | **Total** | **$31,457** | **$4,527** | **$26,930** | - Total amortization expense for other intangibles was **$2.2 million** in **2023**, up from **$1.2 million** in **2022**[52](index=52&type=chunk) Estimated Future Amortization Expense | Year | Amount (in thousands) | | :--- | :--- | | 2024 | $3,037 | | 2025 | $3,037 | | 2026 | $3,037 | | 2027 | $3,037 | | 2028 | $3,037 | | Thereafter | $11,745 | | **Total** | **$26,930** | [Note 7. Income Taxes](index=97&type=section&id=Note%207.%20Income%20Taxes) The **2023** income tax provision was **$4.5 million** with an effective tax rate of **26.6%**, up from **24.4%** in **2022**, mainly due to executive compensation deductibility limits Income Tax Provision (2023 vs. 2022) | (in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | **Current** | | | | Federal | $2,793 | $2,694 | | State | $676 | $622 | | Foreign | $1,372 | $1,254 | | **Deferred** | | | | Federal, State, Foreign | ($383) | ($535) | | **Total Provision** | **$4,458** | **$4,035** | | **Effective Tax Rate** | **26.6%** | **24.4%** | - The difference between the U.S. statutory rate and the effective tax rate is influenced by state income taxes, non-deductible acquisition costs, and stock compensation[58](index=58&type=chunk)[82](index=82&type=chunk) - The company's federal tax returns for **2020-2022** remain open for examination. There was no activity related to unrecognized tax benefits in **2023** or **2022**[59](index=59&type=chunk)[60](index=60&type=chunk) [Note 8. Credit Facilities](index=99&type=section&id=Note%208.%20Credit%20Facilities) In May **2023**, the company established a new **$50.0 million** revolving credit facility with JPMorgan Chase, with no outstanding balance, and has a **$1.3 million** term loan - On May 18, **2023**, the company entered into a new **$50.0 million** revolving credit agreement with JPMorgan Chase Bank, N.A., maturing in **2028**. No amount was outstanding as of December 31, **2023**[599](index=599&type=chunk)[582](index=582&type=chunk) - The company has a term loan with First American Commercial Bancorp, Inc., with an outstanding balance of **$1.3 million** as of December 31, **2023**[61](index=61&type=chunk)[558](index=558&type=chunk) - Through the Data Solutions acquisition, the company acquired an invoice discounting facility with a balance of **$4.3 million** as of December 31, **2023**[584](index=584&type=chunk) [Note 9. Stockholders' Equity and Stock-Based Compensation](index=101&type=section&id=Note%209.%20Stockholders%27%20Equity%20and%20Stock-Based%20Compensation) The company granted **132,526** restricted shares in **2023**, recognizing **$4.1 million** in stock-based compensation expense, with **$4.5 million** unrecognized cost remaining - The company's active equity plan is the **2021** Omnibus Incentive Plan, with **241,068 shares** available for future grants as of December 31, **2023**[601](index=601&type=chunk) - In **2023**, the company granted **132,526 shares** of restricted stock. Total share-based compensation expense was **$4.1 million** for the year[585](index=585&type=chunk)[606](index=606&type=chunk) - As of year-end **2023**, there was **$4.5 million** of total unrecognized compensation cost related to non-vested awards, to be recognized over a weighted-average period of **1.5 years**[89](index=89&type=chunk) - There was no stock option activity in **2023** or **2022**, and no options were outstanding at the end of either year[88](index=88&type=chunk) [Note 13. Industry, Segment and Geographic Financial Information](index=104&type=section&id=Note%2013.%20Industry%2C%20Segment%20and%20Geographic%20Financial%20Information) The company operates in Distribution (**$325.3 million** net sales) and Solutions (**$26.8 million** net sales) segments, with the USA as the primary geographic market and customer concentration Segment Financial Data for Year Ended Dec 31, 2023 | (in thousands) | Distribution | Solutions | Total | | :--- | :--- | :--- | :--- | | Net Sales | $325,262 | $26,751 | $352,013 | | Gross Profit | $53,363 | $10,884 | $64,247 | | Segment Income Before Taxes | $30,896 | $5,646 | $36,542 | Net Sales by Geography for Year Ended Dec 31, 2023 | (in thousands) | Amount | | :--- | :--- | | USA | $259,686 | | Europe and United Kingdom | $67,420 | | Canada | $24,907 | | **Total** | **$352,013** | Identifiable Assets by Geography (as of Dec 31, 2023) | (in thousands) | Amount | | :--- | :--- | | USA | $171,080 | | Europe and United Kingdom | $140,024 | | Canada | $23,994 | | **Total** | **$335,098** | - In **2023**, two customers accounted for **20%** and **15% of consolidated net sales**, respectively. One vendor accounted for **14% of consolidated purchases**[616](index=616&type=chunk) [Note 14. Fair Value Measurements](index=108&type=section&id=Note%2014.%20Fair%20Value%20Measurements) The company measures assets like **$5.1 million** treasury bills (Level 1) and liabilities like a **$4.2 million** contingent earn-out (Level 3) at fair value - Fair value is measured using a three-level hierarchy: Level 1 (quoted prices), Level 2 (observable inputs), and Level 3 (unobservable inputs)[78](index=78&type=chunk)[594](index=594&type=chunk)[95](index=95&type=chunk) Assets and Liabilities Measured at Fair Value (as of Dec 31, 2023) | (in thousands) | Level 1 | Level 2 | Level 3 | Total | | :--- | :--- | :--- | :--- | :--- | | **Assets:** | | | | | | Treasury bills | $5,096 | $0 | $0 | $5,096 | | **Liabilities:** | | | | | | Contingent earn-out | $0 | $0 | $4,189 | $4,189 | - The contingent earn-out liability increased from **$1.8 million** at the end of **2022** to **$4.2 million** at the end of **2023**, primarily due to the **$2.2 million** earn-out from the Data Solutions acquisition[97](index=97&type=chunk)