Financial Performance - Net sales increased by 13%, or $8.0 million, to $68.9 million for the three months ended September 30, 2021, compared to $60.9 million for the same period in the prior year[142]. - Gross profit increased by 56%, or $4.1 million, to $11.3 million for the three months ended September 30, 2021, compared to $7.2 million for the same period in the prior year[142]. - Net income for the three months ended September 30, 2021, was $2.4 million compared to $0.5 million for the same period in the prior year[142]. - Diluted income per share for the three months ended September 30, 2021, was $0.55 compared to $0.13 for the same period in the prior year[142]. - For the nine months ended September 30, 2021, net sales increased to $207.1 million from $180.1 million for the same period in 2020, representing a growth of 15%[169]. - Gross profit for the nine months ended September 30, 2021, was $33.1 million, a 47% increase from $22.5 million in the prior year[171]. - Net income for the nine months ended September 30, 2021, was $5.8 million, compared to $1.9 million in the same period of 2020, indicating a significant increase[173]. Expenses - Selling, general and administrative expenses increased by 30%, or $1.8 million, to $7.8 million for the three months ended September 30, 2021, compared to $6.0 million for the same period in the prior year[142]. - SG&A expenses for the nine months ended September 30, 2021 increased 44%, or $7.4 million, to $24.3 million compared to $16.9 million for the same period in the prior year[203]. Adjusted Metrics - Adjusted EBITDA for the nine months ended September 30, 2021, was $10.4 million, up from $7.1 million in the same period of 2020, reflecting a 47% increase[173]. - The effective margin for adjusted EBITDA was 31.3% for the nine months ended September 30, 2021, slightly down from 31.4% in the prior year[171]. - The gross profit margin for adjusted gross billings was 4.9% for the nine months ended September 30, 2021, compared to 4.5% in the prior year[169]. Cash and Capital Management - Cash and cash equivalents increased to $29.9 million as of September 30, 2021 compared to $29.3 million as of December 31, 2020[210]. - 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[217]. - Total dividends paid and shares repurchased were $0.7 million and $0.2 million, respectively, during the three months ended September 30, 2021[133]. Market and Operational Context - The Company operates in a competitive environment where gross product margins have historically declined due to competition and changes in product mix[128]. - The Company is closely monitoring the impact of the COVID-19 pandemic on all aspects of its business, although it did not incur significant disruptions during the three and nine months ended September 30, 2021[125]. - The Company has subsidiaries in the United States, Canada, the Netherlands, the United Kingdom, and Ireland, through which sales are made[123]. Accounting and Financial Reporting - The company plans to adopt ASU No. 2016-13 in the first quarter of fiscal 2023, which may affect the recognition of allowances for accounts receivable[165][166]. - The company does not apply hedge accounting to foreign exchange contracts, and the fair value of these contracts was not material to the consolidated financial statements as of September 30, 2021[162]. - As of September 30, 2021, there were no off-balance sheet arrangements[219]. Debt and Credit Facilities - As of September 30, 2021, no borrowings were outstanding under the Uncommitted Credit Facility of £8,000,000[216]. - The company is subject to fluctuations in currency exchange rates, primarily in the Canadian Dollar, Euro Dollar, and British Pound to U.S. Dollar[218].
Climb Solutions(CLMB) - 2021 Q3 - Quarterly Report