Financial Performance - Net sales increased by 33%, or $18.8 million, to $75.4 million for the three months ended June 30, 2021, compared to $56.6 million for the same period in the prior year[137]. - Gross profit increased by 54%, or $3.9 million, to $11.0 million for the three months ended June 30, 2021, compared to $7.1 million for the same period in the prior year[137]. - Net income for the three months ended June 30, 2021, was $2.1 million compared to $0.6 million for the same period in the prior year[137]. - Diluted income per share for the three months ended June 30, 2021, was $0.49 compared to $0.13 for the same period in the prior year[137]. - Net sales for the six months ended June 30, 2021, were $138.2 million, an increase from $119.2 million for the same period in 2020, representing a growth of 15.4%[165]. - Gross profit for the six months ended June 30, 2021, was $21.8 million, up 43% from $15.3 million in the same period last year[167]. - Net income for the six months ended June 30, 2021, was $3.7 million, compared to $1.4 million for the same period in 2020, indicating a significant increase[169]. - Income from operations for the six months ended June 30, 2021, was 3.2% of net sales, an increase from 1.4% in the same period of 2020[163]. Sales and Revenue Growth - Adjusted gross billings for the six months ended June 30, 2021, reached $446.0 million, compared to $331.8 million for the same period in 2020, reflecting a growth of 34.4%[168]. - Adjusted gross billings for the three months ended June 30, 2021, increased 48%, or $76.4 million, to $235.1 million compared to $158.7 million for the same period in the prior year[173]. - Distribution segment net sales for the three months ended June 30, 2021, increased 29%, or $15.7 million, to $69.9 million compared to $54.2 million for the same period in the prior year[174]. - Solutions segment net sales for the three months ended June 30, 2021, increased 131%, or $3.1 million, to $5.5 million compared to $2.4 million for the same period in the prior year[175]. - Net sales for the six months ended June 30, 2021, increased 16%, or $19.0 million, to $138.2 million compared to $119.2 million for the same period in the prior year[190]. - Adjusted gross billings for the six months ended June 30, 2021, increased 34%, or $114.2 million, to $446.0 million compared to $331.8 million for the same period in the prior year[190]. - Gross profit margin as a percentage of adjusted gross billings was 4.9% for the six months ended June 30, 2021, compared to 4.6% in the prior year[165]. Expenses and Costs - Selling, general and administrative expenses increased by 49%, or $2.7 million, to $8.1 million for the three months ended June 30, 2021, compared to $5.5 million for the same period in the prior year[137]. - Effective margin for adjusted EBITDA decreased to 28.2% for the six months ended June 30, 2021, down from 34.1% in the prior year[167]. - The company recorded an adjusted EBITDA of $6.2 million for the six months ended June 30, 2021, compared to $5.2 million for the same period in 2020[169]. Corporate Structure and Operations - The Company has subsidiaries in the United States, Canada, the Netherlands, the United Kingdom, and Ireland, through which sales are made[117]. - The Company operates in a competitive environment where gross product margins have historically declined due to competition and changes in product mix[122]. - The Company evaluates the profitability of its business based on return on equity and effective margin[124]. Cash and Financing - Cash and cash equivalents decreased to $23.8 million as of June 30, 2021, compared to $29.3 million as of December 31, 2020[208]. - The Company entered into a $20,000,000 revolving credit facility with Citibank, maturing on June 30, 2023, with no borrowings outstanding as of June 30, 2021[211]. - Wayside Technology UK Holdings Limited entered into an uncommitted short term credit facility of £8,000,000 with Citibank London, maturing on April 13, 2022, with no borrowings outstanding as of June 30, 2021[212][213]. - The Company anticipates an increase in working capital needs as it invests in business growth, with sufficient cash and unused borrowings to meet requirements for the next 12 months[215]. Market and Risk Factors - The Company monitors the impact of COVID-19 on its business, although it did not incur significant disruptions during the three and six months ended June 30, 2021[119]. - The Company is subject to fluctuations in currency exchange rates, primarily in the Canadian Dollar, Euro Dollar, and British Pound to U.S. Dollar[216]. - As of June 30, 2021, the Company did not have any off-balance sheet arrangements[217]. - Smaller reporting companies are not required to provide quantitative and qualitative disclosures about market risk[218]. Acquisitions - The company completed the acquisition of Interwork Technologies Inc. for a purchase price of $3.6 million on April 30, 2020, and the acquisition of CDF Group Limited for $17.4 million on November 6, 2020[170][172]. Future Accounting Changes - The company is planning to adopt ASU No. 2016-13 in the first quarter of fiscal 2023, which may impact its recognition of allowances for accounts receivable[161][162].
Climb Solutions(CLMB) - 2021 Q2 - Quarterly Report