Climb Solutions(CLMB) - 2025 Q1 - Quarterly Results

Financial Performance - Net sales increased 49% to $138.0 million compared to $92.4 million for the same period in 2024[6] - Net income rose 35% to $3.7 million or $0.81 per diluted share, up from $2.7 million or $0.60 per diluted share in the prior year[9] - Adjusted EBITDA increased 38% to $7.6 million, driven by organic growth and the acquisition of Douglas Stewart Software & Services (DSS)[10] - Gross profit increased 37% to $23.4 million, reflecting growth from new and existing vendors[7] - Adjusted net income for Q1 2025 was $3,915,000, a 38.7% increase compared to $2,823,000 in Q1 2024[27] - Adjusted net income per common share (diluted) for Q1 2025 was $0.86, up from $0.62 in Q1 2024, reflecting a 38.7% increase[27] Revenue and Billings - Gross billings increased 34% to $474.6 million, with distribution segment gross billings up 36% to $453.6 million[4] - Total gross billings for Q1 2025 were $474,596,000, representing a 33.5% increase from $355,269,000 in Q1 2024[27] - Distribution gross billings for Q1 2025 were $453,575,000, an increase of 35.5% from $334,637,000 in Q1 2024[27] - Solutions gross billings for Q1 2025 were $21,021,000, slightly up from $20,632,000 in Q1 2024[27] Expenses and Costs - SG&A expenses increased to $16.8 million, with DSS contributing $1.1 million to the increase[8] - Interest expense decreased to $69,000 in Q1 2025 from $101,000 in Q1 2024, indicating improved cost management[25] - The company reported a provision for income taxes of $564,000 in Q1 2025, down from $890,000 in Q1 2024[25] Cash and Dividends - Cash and cash equivalents were $32.5 million as of March 31, 2025, compared to $29.8 million at the end of 2024[11] - The company declared a quarterly dividend of $0.17 per share, payable on May 16, 2025[5] Strategic Initiatives - The company plans to implement a new ERP system to drive efficiencies and remains active in evaluating M&A opportunities[3] Other Financial Metrics - Effective margin for adjusted EBITDA increased by 20 basis points to 32.7% compared to 32.5% for the same period in 2024[10] - The change in fair value of acquisition contingent consideration was $136,000 in Q1 2025, compared to no such costs in Q1 2024[27]