Financial Performance - Net sales increased by 35%, or $42.0 million, to $161.3 million for the three months ended September 30, 2025, compared to $119.3 million for the same period in the prior year[112]. - Gross profit increased by 6%, or $1.4 million, to $25.7 million for the three months ended September 30, 2025, compared to $24.3 million for the same period in the prior year[112]. - Net income decreased by 14%, or $0.8 million, to $4.7 million for the three months ended September 30, 2025, compared to $5.5 million for the same period in the prior year[112]. - Diluted income per share decreased by 14%, or $0.17, to $1.02 for the three months ended September 30, 2025, compared to $1.19 for the same period in the prior year[112]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $29.9 million, compared to $23.5 million for the same period in 2024, reflecting a significant increase[142]. - Net sales for the nine months ended September 30, 2025 increased 51%, or $154.8 million, to $458.6 million compared to $303.8 million for the same period in the prior year[159]. - Gross profit for the nine months ended September 30, 2025 increased 26%, or $15.6 million, to $75.4 million compared to $59.8 million for the same period in the prior year[164]. Expenses - Selling, general and administrative expenses increased by 16%, or $2.3 million, to $16.2 million for the three months ended September 30, 2025, compared to $13.9 million for the same period in the prior year[112]. - SG&A expenses for the nine months ended September 30, 2025 increased 25%, or $9.9 million, to $49.3 million compared to $39.4 million for the same period in the prior year[169]. - Depreciation and amortization expense increased by 65%, or $0.8 million, to $2.0 million for the three months ended September 30, 2025, compared to $1.2 million for the same period in the prior year[112]. Sales and Segments - Gross billings for the three months ended September 30, 2025, increased by 8%, or $39.4 million, to $504.6 million compared to $465.2 million for the same period in the prior year[145]. - The Distribution segment net sales for the three months ended September 30, 2025, increased by 38%, or $42.5 million, to $154.4 million compared to $111.9 million for the same period in the prior year[147]. - The Solutions segment net sales for the three months ended September 30, 2025, decreased by 7%, or $0.6 million, to $6.9 million compared to $7.5 million for the same period in the prior year[148]. - Distribution segment gross profit for the three months ended September 30, 2025 increased 4%, or $0.8 million, to $22.4 million compared to $21.6 million for the same period in the prior year[151]. - Solutions segment gross profit for the three months ended September 30, 2025 increased 23%, or $0.6 million, to $3.3 million compared to $2.7 million for the same period in the prior year[152]. Cash and Dividends - Total dividends paid and the dollar value of shares repurchased were $0.8 million and $0.3 million, respectively, for the three months ended September 30, 2025[109]. - Cash and cash equivalents as of September 30, 2025 increased 67%, or $20.0 million, to $49.8 million compared to $29.8 million as of December 31, 2024[173]. Tax and Estimates - The effective tax rate for the nine months ended September 30, 2025 was 21.6%, a decrease from 23.5% for the same period in the prior year[172]. - The Company evaluates its estimates related to product returns, bad debts, inventories, and other factors on an ongoing basis[114]. Market and Competition - The Company operates in a competitive environment where gross product margins have historically declined due to competition and changes in product mix[105]. - The Company is exposed to market risks primarily related to foreign currency exchange rates[183]. - International operations are conducted in Canada, the United Kingdom, and throughout Europe, subjecting the company to foreign currency transaction and translation risks[184]. - Recent years have seen significant fluctuations in exchange rates between foreign currencies and the U.S. dollar, which may continue in the future[184]. Acquisitions and Customers - The Company completed the acquisition of DSS for an aggregate purchase price of approximately $20.3 million on July 31, 2024[144]. - The Company had two major customers that accounted for 22% and 14% of total net sales during the three months ended September 30, 2025[149].
Climb Solutions(CLMB) - 2025 Q3 - Quarterly Report