U.S. stock markets ended in positive territory in a volatile August. All three major stock indexes finished in green. The broad-market index – the S&P 500 – recorded four consecutive months of positive closing. Consequently, several stocks have shown price strength. We have primarily targeted stocks that have recently been on a bull run. Such stocks have a high chance of carrying the momentum forward. If a stock is continuously witnessing an uptrend, there must be a solid reason or it would have probably cr ...

For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Climb Global Solutions (CLMB) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question. Climb Global Solutions is one of 316 companies ...

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy. The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock ali ...

U.S. stock markets suffered a bloody blow in the first week of August. Wall Street's turmoil was triggered by weak labor market data, which heightened concerns of a near-term recession. The massive unwinding of Yencarry trade due to an unexpected rate hike by the Bank of Japan aggravated the situation. However, U.S. stock markets recovered their lost ground to a great extent within the next 3-4 trading sessions as more released data showed that the fundamentals of the U.S. economy remain firm. Market partic ...

When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done. The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the s ...

Financial Performance - Net sales increased by 13%, or $10.4 million, to $92.1 million for the three months ended June 30, 2024, compared to $81.7 million for the same period in the prior year[98]. - Gross profit increased by 36%, or $4.9 million, to $18.6 million for the three months ended June 30, 2024, compared to $13.7 million for the same period in the prior year[98]. - Net income increased by 148%, or $2.0 million, to $3.4 million for the three months ended June 30, 2024, compared to $1.4 million for the same period in the prior year[98]. - Diluted income per share increased by 142%, or $0.44, to $0.75 for the three months ended June 30, 2024, compared to $0.31 for the same period in the prior year[98]. - Net sales for the six months ended June 30, 2024, increased by 10.0%, or $17.7 million, to $184.5 million compared to $166.8 million for the same period in the prior year[114]. - Adjusted gross billings for the six months ended June 30, 2024, increased by 22.9%, or $133.7 million, to $715.1 million compared to $581.4 million for the same period in the prior year[116]. - Gross profit for the six months ended June 30, 2024, increased by 23%, or $6.7 million, to $35.6 million compared to $28.9 million for the same period in the prior year[136]. - Adjusted EBITDA for the six months ended June 30, 2024, was $12.5 million, an increase from $10.4 million for the same period in the prior year[120]. Expenses - Selling, general and administrative expenses increased by 12%, or $1.4 million, to $13.0 million for the three months ended June 30, 2024, compared to $11.6 million for the same period in the prior year[98]. - SG&A expenses for the six months ended June 30, 2024 increased 17%, or $3.7 million, to $25.5 million compared to $21.8 million for the same period in the prior year[139]. - Depreciation and amortization expense increased by 43%, or $0.3 million, to $0.9 million for the three months ended June 30, 2024, compared to $0.6 million for the same period in the prior year[98]. - Depreciation and amortization expense for the six months ended June 30, 2024 increased 32%, or $0.4 million, to $1.7 million compared to $1.3 million for the same period in the prior year[140]. Sales Segments - The Distribution segment net sales for the three months ended June 30, 2024, increased by 15%, or $11.7 million, to $87.8 million compared to $76.1 million for the same period in the prior year[124]. - The Solutions segment net sales for the three months ended June 30, 2024, decreased by 24%, or $1.4 million, to $4.2 million compared to $5.6 million for the same period in the prior year[125]. - Distribution segment net sales for the six months ended June 30, 2024 increased 13%, or $20.0 million, to $174.7 million compared to $154.7 million for the same period in the prior year[134]. - Solutions segment net sales for the six months ended June 30, 2024 decreased 19%, or $2.3 million, to $9.8 million compared to $12.1 million for the same period in the prior year[135]. Cash and Dividends - Total dividends paid were $0.8 million during the three months ended June 30, 2024, compared to $0.8 million for the same period in the prior year[95]. - Cash and cash equivalents as of June 30, 2024 increased 33%, or $12.1 million, to $48.4 million compared to $36.3 million as of December 31, 2023[143]. Acquisitions and Corporate Structure - The company completed the acquisition of Data Solutions for approximately €15.0 million (equivalent to $15.9 million USD) on October 6, 2023[121]. - The Company entered into a Membership Interest Purchase Agreement to acquire Douglas Stewart Software & Services, LLC for approximately $20.3 million[142]. - The company has subsidiaries in the United States, Canada, the Netherlands, the United Kingdom, and Ireland, through which sales are made[94]. Profitability and Efficiency - The company has implemented cost efficiencies such as drop shipments and electronic ordering to maintain profitability despite declining gross margins[91]. - The company evaluates profitability based on return on equity and effective margin, with sales impacted by external factors such as IT spending and customer demand[90]. - Effective margin for adjusted EBITDA for the three months ended June 30, 2024, was 37.3%, compared to 34.2% for the same period in the prior year[116]. Rebates and Discounts - Customer rebates and discounts for the three months ended June 30, 2024, were $3.2 million compared to $2.5 million for the same period in the prior year[127]. - Vendor rebates and discounts for the three months ended June 30, 2024, were $1.6 million compared to $2.1 million for the same period in the prior year[128]. Taxation - The effective tax rate for the six months ended June 30, 2024 was 23.6%, down from 24.5% for the same period in the prior year[141].

Financial Data and Key Metrics Changes - Adjusted gross billings (AGB) increased by 31% to $359.8 million compared to $274.7 million in the prior year quarter [11] - Net sales rose by 13% to $92.1 million from $81.7 million, reflecting organic growth and contributions from acquisitions [11] - Net income more than doubled to $3.4 million or $0.75 per diluted share, up from $1.4 million or $0.31 per diluted share [15] - Adjusted EBITDA increased by 48% to $6.9 million compared to $4.7 million in the prior period [15] - Gross profit rose by 36% to $18.6 million, with gross profit as a percentage of AGB increasing to 5.2% from 5% [14] Business Line Data and Key Metrics Changes - The company evaluated 31 new brands and signed agreements with three, focusing on a selective vendor line card [5] - The acquisition of Douglas Stewart Software (DSS) added over 20 new vendor partners, enhancing the company's offerings in the education technology channel [8] - Data Solutions generated $31.6 million in AGB for the quarter, which was $3 million or 10.6% greater than the prior year's quarter [12] Market Data and Key Metrics Changes - Growth was broad-based across all regions, with the top 20 vendors growing in line with overall business performance [21] - The company noted strong demand in the security and data center sectors, with a focus on software solutions [20] Company Strategy and Development Direction - The company aims to drive organic growth by deepening relationships with existing partners and adding innovative vendors [17] - The implementation of a new ERP system is expected to enhance operational efficiencies and support growth [9] - The company plans to remain diligent in its M&A approach, targeting acquisitions that are accretive to earnings and align with strategic goals [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued organic growth and operational leverage improvements due to the ERP implementation [10] - The company does not anticipate significant market challenges affecting its growth trajectory, citing a broad portfolio and aggressive sales strategies [44] - Management highlighted the importance of vendor performance and the ability to adapt quickly to market changes [45] Other Important Information - Cash and cash equivalents increased to $48.4 million as of June 30, 2024, compared to $36.3 million at the end of 2023 [16] - The company declared a quarterly dividend of $0.17 per share, payable on August 22, 2024 [17] Q&A Session Summary Question: Are security and data centers the core drivers of growth? - Yes, security and data centers are key growth drivers, with strong performance noted at recent industry events [20] Question: Was growth broad-based across top vendors? - Yes, growth was observed across all regions and among the top vendors, with only one territory showing flat performance [21] Question: How long until cross-selling synergies from the DSS acquisition are realized? - Cross-selling synergies are expected to be realized quickly, particularly with strong vendors like Adobe [22] Question: Did the company achieve cross-selling synergies with Data Solutions? - Yes, integration of teams has been completed, and cross-selling synergies are being realized [24] Question: What is the earn-out structure tied to the DSS acquisition? - The earn-out is based on gross profit margin targets and increasing EBIT during the 12-month period [29] Question: Is the DSS acquisition immediately accretive to the bottom line? - Yes, the acquisition is expected to be immediately accretive, with results anticipated in Q3 [40]

EATONTOWN, N.J., Aug. 07, 2024 (GLOBE NEWSWIRE) -- Climb Global Solutions, Inc. (NASDAQ:CLMB), a value-added global IT channel company specializing in unique sales and distribution solutions for innovative technology vendors, announced it is acquiring Douglas Stewart Software & Services, LLC ("DSS"), a separate division of the privately held Douglas Stewart Company. DSS is a Wisconsin-based, leading specialty distributor focused on SaaS solutions for education customers in North America. The acquisition enh ...

Climb Global Solutions (CLMB) came out with quarterly earnings of $0.83 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.72 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 72.92%. A quarter ago, it was expected that this computer software reseller would post earnings of $0.75 per share when it actually produced earnings of $0.60, delivering a surprise of -20%. Over the last f ...

Exhibit 2.1 CERTAIN INFORMATION IN THIS EXHIBIT IDENTIFIED WITH [***] HAS BEEN EXCLUDED IN ACCORDANCE WITH REGULATION S-K ITEM 601(B)(2) BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT CUSTOMARILY AND ACTUALLY TREATS AS PRIVATE OR CONFIDENTIAL. STRICTLY CONFIDENTIAL Execution Version MEMBERSHIP INTEREST PURCHASE AGREEMENT by and among THE DOUGLAS STEWART COMPANY, INC., as Seller, Robert Bernier and Charles T. Hulan, as the Shareholders, and Climb Global Solutions DSS, LLC, as Buyer Dated ...