Financial Performance - Net sales increased by 52%, or $40.8 million, to $119.3 million for the three months ended September 30, 2024, compared to $78.5 million for the same period in the prior year[122]. - Gross profit rose by 70%, or $10.0 million, to $24.3 million for the three months ended September 30, 2024, compared to $14.3 million for the same period in the prior year[122]. - Net income increased by 130%, or $3.1 million, to $5.5 million for the three months ended September 30, 2024, compared to $2.4 million for the same period in the prior year[122]. - Diluted income per share increased by 129%, or $0.67, to $1.19 for the three months ended September 30, 2024, compared to $0.52 for the same period in the prior year[122]. - Adjusted gross billings for the three months ended September 30, 2024, increased 65%, or $183.3 million, to $465.2 million compared to $281.9 million for the same period in the prior year[152]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $22.4 million, compared to $15.4 million for the same period in the prior year[150]. - The effective margin for adjusted EBITDA increased to 37.4% for the nine months ended September 30, 2024, compared to 35.7% for the same period in the prior year[147]. - Net sales for the nine months ended September 30, 2024 increased 24%, or $58.6 million, to $303.8 million compared to $245.2 million in the same period in 2023[165]. - Adjusted gross billings for the nine months ended September 30, 2024 increased 37%, or $317.0 million, to $1,180.3 million compared to $863.3 million in the same period in 2023[165]. - Gross profit for the nine months ended September 30, 2024 increased 39%, or $16.6 million, to $59.8 million compared to $43.2 million in the same period in 2023[170]. Expenses - Selling, general and administrative expenses increased by 38%, or $3.8 million, to $13.9 million for the three months ended September 30, 2024, compared to $10.1 million for the same period in the prior year[122]. - Depreciation and amortization expense increased by 94%, or $0.6 million, to $1.2 million for the three months ended September 30, 2024, compared to $0.6 million for the same period in the prior year[122]. - Customer rebates and discounts for Q3 2024 were $3.9 million, up from $2.8 million in Q3 2023[160]. - SG&A expenses for Q3 2024 increased 38%, or $3.8 million, to $13.9 million compared to $10.1 million in Q3 2023, representing 3.0% of adjusted gross billings[162]. - Depreciation and amortization expense for Q3 2024 increased 94%, or $0.6 million, to $1.2 million compared to $0.6 million in Q3 2023[163]. Sales and Distribution - The company derives the majority of its net sales through the sale of third-party software licenses, maintenance, and service agreements[113]. - Distribution segment net sales for the three months ended September 30, 2024, increased 55%, or $39.7 million, to $111.9 million compared to $72.2 million for the same period in the prior year[154]. - Gross profit for the Distribution segment for the three months ended September 30, 2024, increased 85%, or $9.9 million, to $21.6 million compared to $11.7 million for the same period in the prior year[158]. - Distribution segment net sales for the nine months ended September 30, 2024 increased 26%, or $59.6 million, to $286.5 million compared to $226.9 million in the same period in 2023[167]. Acquisitions and Investments - The Company completed the acquisition of DSS for approximately $20.3 million on July 31, 2024, and Data Solutions for approximately $15.9 million on October 6, 2023[151]. - Net cash used in investing activities during the nine months ended September 30, 2024 was $24.3 million, including $20.7 million for the DSS acquisition[179]. Cash and Liquidity - Cash and cash equivalents as of September 30, 2024 decreased 39%, or $14.2 million, to $22.1 million compared to $36.3 million as of December 31, 2023[178]. Foreign Exchange - The Company recognized an unrealized loss of approximately $0.1 million on foreign exchange contracts outstanding as of September 30, 2024[143]. Customer Concentration - Two major customers accounted for 16% and 13% of total net sales during the three months ended September 30, 2024, compared to 21% and 17% in the prior year[156]. Solutions Segment - Solutions segment gross profit for Q3 2024 increased 4%, or $0.1 million, to $2.7 million compared to $2.6 million in Q3 2023[159].
Climb Solutions(CLMB) - 2024 Q3 - Quarterly Report