Core Insights - Investors favor businesses with consistent profitability, measured effectively by net profit margin, which indicates a company's efficiency in converting sales into profits [1][2] - Companies like Greenland Technologies Holding Corporation (GTEC), Great Lakes Dredge & Dock Corporation (GLDD), Orion Group Holdings, Inc. (ORN), and Climb Global Solutions, Inc. (CLMB) demonstrate strong net profit margins, making them attractive to investors [1] Summary by Category Net Profit Margin - Net profit margin is calculated as net profit divided by sales, multiplied by 100, serving as a key indicator of a company's operational strength and cost control [2] - A higher net profit margin not only attracts investors but also skilled employees, enhancing overall business value and providing a competitive edge [3] Advantages and Disadvantages - A strong net profit margin clarifies a company's business model regarding pricing, cost structure, and manufacturing efficiency, making it a preferred metric for investors [4] - However, net profit margin varies significantly across industries, and its relevance diminishes for technology companies compared to traditional industries [4][5] Screening Parameters - Effective investment strategies prioritize a net profit margin of at least 0%, indicating solid profitability, and positive earnings per share (EPS) growth [7] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) are expected to outperform peers, especially when combined with a favorable VGM Score [8] Company Profiles - **Greenland Technologies Holding Corporation (GTEC)**: Develops drivetrain systems, currently holds a Zacks Rank of 1, with a VGM Score of A. The 2025 earnings estimate was revised upward to $0.48 per share, with an average surprise of 540.6% over the last four quarters [9] - **Great Lakes Dredge & Dock Corporation (GLDD)**: Largest U.S. dredging service provider, also holds a Zacks Rank of 1 and a VGM Score of A. The 2025 earnings estimate increased by $0.24 to $0.93 per share, with an average surprise of 93.3% [10][11] - **Orion Group Holdings, Inc. (ORN)**: A construction company with a Zacks Rank of 1 and a VGM Score of B. The 2025 earnings estimate rose by $0.09 to $0.16 per share, with an average surprise of -104.4% [12] - **Climb Global Solutions, Inc. (CLMB)**: An IT distribution company with a Zacks Rank of 1 and a VGM Score of B. The 2025 earnings estimate remains at $5.40 per share, with an average surprise of 63.4% [13][14]

EATONTOWN, N.J., May 15, 2025 (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, 2025 that CRN, a brand of The Channel Company, has named nine women at Climb Channel Solutions to the Women of the Channel list for 2025 and Kim Stevens, the Chief Marketing Officer, to the 2025 Women of the Channel Power 100, an elite subset of prominent leaders selected from the CRN ...

Core Insights - Climb Channel Solutions has partnered with Smartsheet to distribute its AI-enhanced enterprise work management platform in North America, expanding access for resellers [1][2] - This collaboration aims to empower resellers to offer Smartsheet's solutions, which focus on driving efficiency, collaboration, and growth for businesses [2][4] - Smartsheet has been recognized as a Leader in the 2024 Gartner Magic Quadrant for Collaborative Work Management, highlighting its strong market position and execution capabilities [3] Company Overview - Climb Channel Solutions is a global specialty technology distributor focusing on various sectors including Security, Data Management, and Software & Application Lifecycle [6] - The company emphasizes transforming distribution by providing innovative IT technologies, flexible financing, and exceptional service to partners [6] Partnership Details - The partnership allows Climb's resellers to access the full Smartsheet portfolio, enhancing their ability to meet diverse business needs such as project management and product development [5] - Climb's expertise in delivering innovative software is expected to strengthen the partnership and support resellers in scaling their businesses [4][5]

Group 1 - Climb Global Solutions (CLMB) has a Zacks Rank of 1 (Strong Buy), while Amadeus IT Group SA Unsponsored ADR (AMADY) has a Zacks Rank of 2 (Buy) [3] - The Zacks Rank emphasizes companies with positive earnings estimate revisions, indicating that CLMB's earnings outlook is improving more significantly than AMADY's [3] - Value investors utilize various traditional metrics to identify undervalued companies, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Group 2 - CLMB has a forward P/E ratio of 18.75, while AMADY has a forward P/E of 23.38, suggesting that CLMB may be undervalued compared to AMADY [5] - The PEG ratio for CLMB is 1.56, indicating a more favorable expected earnings growth rate compared to AMADY's PEG ratio of 3.45 [5] - CLMB's P/B ratio is 4.86, compared to AMADY's P/B of 6.57, further supporting CLMB's superior valuation metrics [6] Group 3 - CLMB has a Value grade of B, while AMADY has a Value grade of C, indicating that CLMB is viewed as the better value option based on its solid earnings outlook and valuation figures [6]

PART I FINANCIAL INFORMATION [Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Presents the unaudited condensed consolidated financial statements for Q1 2025, including key balance sheet and income statement data [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $370.1 million while stockholders' equity rose to $95.6 million at the end of Q1 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $32,461 | $29,778 | | Accounts receivable, net | $240,230 | $341,597 | | Total current assets | $281,163 | $380,696 | | Goodwill | $35,675 | $34,924 | | Total assets | $370,053 | $469,179 | | **Liabilities & Equity** | | | | Accounts payable and accrued expenses | $266,452 | $370,397 | | Total liabilities | $274,499 | $378,591 | | Total stockholders' equity | $95,554 | $90,588 | [Condensed Consolidated Statements of Earnings](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Net sales for Q1 2025 grew 49.4% to $138.0 million, with net income increasing 34.9% to $3.7 million year-over-year Statement of Earnings Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | $138,044 | $92,422 | 49.4% | | Gross profit | $23,396 | $17,020 | 37.5% | | Income from operations | $4,778 | $3,503 | 36.4% | | Net income | $3,684 | $2,731 | 34.9% | | Diluted EPS | $0.81 | $0.60 | 35.0% | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q1 2025 was $5.2 million, driven by net income and positive foreign currency translation adjustments Comprehensive Income (in thousands) | Component | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $3,684 | $2,731 | | Foreign currency translation adjustments | $1,553 | $(718) | | **Comprehensive income** | **$5,237** | **$2,013** | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased to $95.6 million in Q1 2025, driven by net income and positive translation adjustments - Key changes in stockholders' equity for Q1 2025 include: **net income of $3.7M**, dividends of $0.8M, share-based compensation of $1.4M, and treasury stock repurchases of $0.9M[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was $8.5 million, and the company's cash balance increased by $2.7 million to $32.5 million in Q1 2025 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $8,457 | $14,047 | | Net cash used in investing activities | $(729) | $(1,180) | | Net cash used in financing activities | $(5,346) | $(5,550) | | **Net increase in cash** | **$2,683** | **$7,277** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides details on accounting policies, segment performance, and customer concentrations, noting two customers make up 39% of sales - The company's revenue is primarily from the sale of third-party technology products and services, recognized when control is transferred[36](index=36&type=chunk)[37](index=37&type=chunk) - In Q1 2025, **two major customers accounted for 26% and 13% of net sales**, respectively, and one major vendor accounted for 13% of total purchases[67](index=67&type=chunk)[66](index=66&type=chunk) Segment Net Sales (in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Distribution | $132,162 | $86,822 | | Solutions | $5,882 | $5,600 | | **Total** | **$138,044** | **$92,422** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 performance, highlighting significant sales and profit growth driven by organic expansion and acquisitions - **Net sales increased 49% to $138.0 million** and **net income increased 35% to $3.7 million** for Q1 2025 compared to Q1 2024[107](index=107&type=chunk) - **Adjusted EBITDA**, a non-GAAP measure, **increased to $7.6 million** in Q1 2025 from $5.5 million in Q1 2024, with a stable effective margin of 32.7%[133](index=133&type=chunk)[136](index=136&type=chunk) - The acquisition of Douglas Stewart Software & Services, LLC ("DSS") on July 31, 2024, contributed to growth in the Distribution segment[138](index=138&type=chunk) [Overview](index=24&type=section&id=MD%26A_Overview) The company operates as a value-added IT distributor through its 'Distribution' and 'Solutions' segments - The company has two reportable operating segments: 'Distribution' (selling to resellers like VARs) and 'Solutions' (selling directly to end-users)[97](index=97&type=chunk) - Product offerings include virtualization/cloud computing, security, networking, storage, infrastructure management, and application lifecycle management tools[97](index=97&type=chunk) [Results of Operations](index=28&type=section&id=MD%26A_Results_of_Operations) Q1 2025 saw a 49% rise in net sales and a 37% increase in gross profit, driven by organic growth and the DSS acquisition - **Net sales increased 49%** and **gross billings increased 34%** in Q1 2025, driven by organic growth and the DSS acquisition[139](index=139&type=chunk) - **Distribution segment net sales grew 52%** to $132.2 million, while **Solutions segment sales grew 5%** to $5.9 million[141](index=141&type=chunk)[142](index=142&type=chunk) - **SG&A expenses increased 34%** to $16.8 million, primarily due to the DSS acquisition and higher personnel costs to support growth[149](index=149&type=chunk) - The **effective tax rate for Q1 2025 was 13.3%**, down from 24.6% in Q1 2024, mainly due to a discrete tax benefit related to share-based compensation[152](index=152&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=MD%26A_Liquidity_and_Capital_Resources) The company holds $32.5 million in cash and has an undrawn $50.0 million credit facility, ensuring sufficient liquidity - **Cash and cash equivalents increased by $2.7 million** during Q1 2025 to a total of $32.5 million[153](index=153&type=chunk) - Financing activities used $5.3 million, including **$3.6 million for contingent consideration payments**, $0.9 million for treasury stock purchases, and $0.8 million for dividends[155](index=155&type=chunk) - The company has access to a **$50.0 million revolving credit facility**, with no amounts outstanding as of March 31, 2025[156](index=156&type=chunk) [Critical Accounting Policies and Estimates](index=25&type=section&id=MD%26A_Critical_Accounting_Policies) Key accounting policies involve significant management judgment, particularly in revenue recognition and business combinations - Key critical accounting policies involve significant management judgment and include: **Revenue Recognition, Allowances for Expected Credit Losses, Business Combinations, Goodwill, Intangible Assets, and Income Taxes**[111](index=111&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) - For business combinations, the company uses estimates for valuing acquired assets and liabilities, particularly intangible assets and contingent consideration[116](index=116&type=chunk) - Goodwill is tested for impairment annually or when trigger events occur, using either a qualitative assessment or a quantitative test[120](index=120&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk exposure relates to foreign currency exchange rate fluctuations from its international operations - The principal market risk is from changes in foreign currency exchange rates, specifically the **Canadian Dollar, Euro, and British Pound** against the U.S. Dollar[163](index=163&type=chunk)[160](index=160&type=chunk) - The company is exposed to both **foreign currency transaction risk and currency translation risk** due to its international operations[164](index=164&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, excluding the recently acquired and integrating DSS - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of the end of the quarter[166](index=166&type=chunk) - The assessment of internal controls **excluded the recently acquired DSS**, which is currently being integrated into the company's control structure[167](index=167&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material litigation outside of the ordinary course of business - Other than routine litigation arising out of the ordinary course of business, the Company is not presently subject to any material litigation[169](index=169&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) No material changes have been made to the risk factors disclosed in the company's 2024 Annual Report on Form 10-K - No material changes have occurred to the risk factors disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024[170](index=170&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any shares under its public plan in Q1 2025, though some shares were surrendered for tax purposes Issuer Purchase of Equity Securities (Q1 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Maximum Number of Shares That May Yet Be Purchased Under the Plans | | :--- | :--- | :--- | :--- | | Jan 2025 | — | $ — | 545,786 | | Feb 2025 | — | $ — | 545,786 | | Mar 2025 | — | $ — | 545,786 | | **Total** | **—** | **$ —** | **545,786** | - The share repurchase program does not have an expiration date[175](index=175&type=chunk) [Other Information](index=36&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the first quarter of 2025 - During Q1 2025, none of the company's directors or officers adopted or terminated a Rule 10b5-1 trading plan[174](index=174&type=chunk) [Exhibits](index=37&type=section&id=Item%206.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the Form 10-Q, including officer certifications and financial statements in Inline XBRL - Exhibits filed include CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and a Separation Agreement with a former executive (10.1)[176](index=176&type=chunk)

Climb Global Solutions (CLMB) Q1 2025 Earnings Call May 01, 2025 08:30 AM ET Company Participants Sean Mansouri - Founder & CEODale Foster - CEOMatthew Sullivan - CFOVincent Colicchio - Managing Director Operator Good morning, everyone, and thank you for participating in today's conference call to discuss Klim Global Solutions' financial results for the first quarter ended 03/31/2025. Joining us today are Climb's CEO, Mr. Dale Foster the company's CFO, Mr. Matthew Sullivan and the company's Investor Relati ...

Climb Global Solutions (CLMB) Q1 2025 Earnings Call May 01, 2025 08:30 AM ET Speaker0 Good morning, everyone, and thank you for participating in today's conference call to discuss Klim Global Solutions' financial results for the first quarter ended 03/31/2025. Joining us today are Climb's CEO, Mr. Dale Foster the company's CFO, Mr. Matthew Sullivan and the company's Investor Relations Adviser, Mr. Sean Mansoury with Elevate By now, everyone should have access to the first quarter twenty twenty five earnings ...

EATONTOWN, N.J., May 01, 2025 (GLOBE NEWSWIRE) -- Climb Channel Solutions, an international specialty technology distributor and wholly owned subsidiary of Climb Global Solutions, Inc. (NASDAQ: CLMB), is excited to announce its new partnership with Accelsius. Accelsius is a leader in next-generation liquid cooling solutions for high-performance computing environments. This partnership further strengthens Climb’s commitment to delivering innovative emerging technologies to its channel partners, equipping the ...

Climb Global Solutions (CLMB) came out with quarterly earnings of $0.86 per share, missing the Zacks Consensus Estimate of $0.89 per share. This compares to earnings of $0.60 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -3.37%. A quarter ago, it was expected that this computer software reseller would post earnings of $1.12 per share when it actually produced earnings of $2.26, delivering a surprise of 101.79%.Over the last ...

Financial Performance - Net sales increased 49% to $138.0 million compared to $92.4 million for the same period in 2024[6] - Net income rose 35% to $3.7 million or $0.81 per diluted share, up from $2.7 million or $0.60 per diluted share in the prior year[9] - Adjusted EBITDA increased 38% to $7.6 million, driven by organic growth and the acquisition of Douglas Stewart Software & Services (DSS)[10] - Gross profit increased 37% to $23.4 million, reflecting growth from new and existing vendors[7] - Adjusted net income for Q1 2025 was $3,915,000, a 38.7% increase compared to $2,823,000 in Q1 2024[27] - Adjusted net income per common share (diluted) for Q1 2025 was $0.86, up from $0.62 in Q1 2024, reflecting a 38.7% increase[27] Revenue and Billings - Gross billings increased 34% to $474.6 million, with distribution segment gross billings up 36% to $453.6 million[4] - Total gross billings for Q1 2025 were $474,596,000, representing a 33.5% increase from $355,269,000 in Q1 2024[27] - Distribution gross billings for Q1 2025 were $453,575,000, an increase of 35.5% from $334,637,000 in Q1 2024[27] - Solutions gross billings for Q1 2025 were $21,021,000, slightly up from $20,632,000 in Q1 2024[27] Expenses and Costs - SG&A expenses increased to $16.8 million, with DSS contributing $1.1 million to the increase[8] - Interest expense decreased to $69,000 in Q1 2025 from $101,000 in Q1 2024, indicating improved cost management[25] - The company reported a provision for income taxes of $564,000 in Q1 2025, down from $890,000 in Q1 2024[25] Cash and Dividends - Cash and cash equivalents were $32.5 million as of March 31, 2025, compared to $29.8 million at the end of 2024[11] - The company declared a quarterly dividend of $0.17 per share, payable on May 16, 2025[5] Strategic Initiatives - The company plans to implement a new ERP system to drive efficiencies and remains active in evaluating M&A opportunities[3] Other Financial Metrics - Effective margin for adjusted EBITDA increased by 20 basis points to 32.7% compared to 32.5% for the same period in 2024[10] - The change in fair value of acquisition contingent consideration was $136,000 in Q1 2025, compared to no such costs in Q1 2024[27]