Climb Solutions(CLMB) - 2024 Q4 - Annual Report

Financial Performance - Net sales increased by 32%, or $113.6 million, to$465.6 million for the year ended December 31, 2024, compared to $352.0 million for the same period in 2023[143] - Gross profit rose by 42$26.9 million, to $91.1 million for the year ended December 31, 2024, compared to$64.2 million for the same period in 2023[143] - Net income increased by 51%, or $6.3 million, to$18.6 million for the year ended December 31, 2024, compared to $12.3 million for the same period in 2023[143] - Income per diluted share increased by 49$1.34, to $4.06 for the year ended December 31, 2024, compared to$2.72 for the same period in 2023[143] - Adjusted EBITDA for the year ended December 31, 2024, was $39.6 million, up from$24.6 million in 2023, representing a 61% increase[171] - Effective margin for adjusted EBITDA increased to 43.5% in 2024 from 38.3% in 2023, a rise of 520 basis points[173] Expenses - Selling, general and administrative expenses increased by 27%, or $12.2 million, to$56.5 million for the year ended December 31, 2024, compared to $44.3 million for the same period in 2023[143] - Acquisition-related costs were$2.3 million for the year ended December 31, 2024, compared to $0.6 million for the same period in 2023[143] - Amortization and depreciation expense increased by$1.5 million to $4.3 million for the year ended December 31, 2024, compared to$2.8 million for the same period in 2023[143] - SG&A expenses for the year ended December 31, 2024, increased 27%, or $12.2 million, to$56.5 million compared to $44.3 million for the same period in the prior year[189] - Customer rebates and discounts for the year ended December 31, 2024, were$19.7 million compared to $12.8 million for the same period in the prior year[187] Segment Performance - The Distribution segment's gross profit for the year ended December 31, 2024, increased 47$24.9 million, to $78.3 million compared to$53.4 million for the same period in 2023[185] - Net sales in the Distribution segment for the year ended December 31, 2024, increased 36%, or $116.6 million, to$441.9 million compared to $325.3 million for the same period in the prior year[180] - Gross billings for the year ended December 31, 2024, increased 42$524.9 million, to $1,785.3 million compared to$1,260.4 million for the same period in 2023[179] Cash Flow and Investments - Net cash provided by operating activities for the year ended December 31, 2024 was $33.7 million, consisting of net income adjusted for non-cash items of$30.6 million[196] - Net cash used in investing activities during the year ended December 31, 2024 was $26.4 million, including$20.9 million for DSS and Data Solutions acquisitions[197] - Net cash used in financing activities during the year ended December 31, 2024 was $13.0 million, including$4.2 million in net repayments of borrowings[198] - Cash and cash equivalents decreased by $6.5 million to$29.8 million at December 31, 2024, from $36.3 million at December 31, 2023[195] Tax and Other Considerations - Provision for income taxes for the year ended December 31, 2024 was$6.4 million, or 25.6% of income before taxes, compared to $4.5 million, or 26.6$0.3 million, a decrease from $0.6 million in the prior year[192] - Change in fair value of acquisition contingent consideration for the year ended December 31, 2024 was$3.6 million, with no amounts recognized in the prior year[193] Company Overview - The company has subsidiaries in the United States, Canada, Netherlands, United Kingdom, and Ireland, contributing to its global sales[133] - The company’s sales are influenced by external factors such as levels of IT spending and customer demand for products distributed[134] - The company has historically returned value to investors through quarterly dividends and share repurchases, with total dividends paid of $3.0 million for the year ended December 31, 2024[139] - As of December 31, 2024, the company held 683,198 shares of Common Stock in treasury at an average cost of$19.52 per share[200] - The company anticipates an increase in working capital needs as it invests in business growth, relying on cash and unused borrowings under its Credit Agreement for the next 12 months[205] - The company had no off-balance sheet arrangements as of December 31, 2024[207]