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].
Climb Solutions(CLMB) - 2024 Q2 - Quarterly Report