Climb Solutions(CLMB) - 2024 Q4 - Annual Results

Financial Performance - FY 2024 net income increased 51% to $18.6 million, or$ 4.06 per share; adjusted net income rose 64% to $24.0 million, or$ 5.26 per share[1] - Q4 2024 net sales increased 51% to $161.8 million compared to$ 106.8 million in Q4 2023, driven by organic growth and the acquisition of DSS[8] - Climb reported a 33% increase in Q4 2024 net income to $7.0 million, impacted by a$ 2.5 million charge related to acquisition contingent consideration[11] - Net sales for the year ended December 31, 2024, reached $465,607 million, a 32.3% increase from$ 352,013 million in 2023[26] - Gross profit for the year ended December 31, 2024, was $91,080 million, up 41.8% from$ 64,247 million in 2023[26] - Adjusted EBITDA for the year ended December 31, 2024, was $39,621 million, a 60.8% increase compared to$ 24,620 million in 2023[27] - Net income for the year ended December 31, 2024, was $18,610 million, representing a 51.0% increase from$ 12,323 million in 2023[28] - Total gross billings for the year ended December 31, 2024, amounted to $1,785,302 million, a 41.5% increase from$ 1,260,382 million in 2023[29] - Adjusted net income for the year ended December 31, 2024, was $23,961 million, up 64.5% from$ 14,591 million in 2023[28] - Income per common share - diluted for the year ended December 31, 2024, was $4.06, compared to$ 2.72 in 2023, reflecting a 49.0% increase[26] - Distribution gross billings for the year ended December 31, 2024, were $1,695,538 million, a 43.9% increase from$ 1,176,866 million in 2023[29] - The company reported a provision for income taxes of $6,408 million for the year ended December 31, 2024, compared to$ 4,458 million in 2023[27] Operational Highlights - Q4 2024 adjusted EBITDA increased 75% to $16.1 million, with an effective margin of 51.5%, up 780 basis points from 43.7% in Q4 2023[12] - Gross billings for FY 2024 increased 42% to$ 1.8 billion, with distribution segment gross billings up 44% to $1.7 billion[6] - SG&A expenses in Q4 2024 were$ 17.1 million, with SG&A as a percentage of gross billings decreasing to 2.8%[10] Strategic Initiatives - The company evaluated over 120 vendors and signed agreements with 13, emphasizing a focus on innovative technologies[4] - The company plans to continue evaluating M&A opportunities to enhance service offerings and expand geographic footprint[5] Dividend Information - Climb's Board of Directors declared a quarterly dividend of $0.17 per share, payable on March 21, 2025[7] - Dividends paid per common share remained stable at$ 0.68 for both years ended December 31, 2024, and 2023[26] Cash Position - Cash and cash equivalents decreased to $29.8 million as of December 31, 2024, primarily due to the acquisition of DSS[13]