Climb Global Solutions Reports Modest Q3 Growth

TL;DR

CLMB Q3 sales up slightly to $640M, net income $7.09M. Steady as she goes.

AI Summary

Climb Global Solutions, Inc. reported its Q3 2024 results for the period ending September 30, 2024. The company's net sales for the nine months ended September 30, 2024, were $640 million, a slight increase from $630 million in the same period of 2023. Net income for the nine months was $7.09 million, up from $6.9 million in the prior year. Earnings per share remained consistent at $0.17 for both periods.

Why It Matters

This filing provides insight into Climb Global Solutions' financial performance, indicating stable revenue and net income growth, which is crucial for investors assessing the company's stability and future prospects.

Risk Assessment

Risk Level: low — The filing indicates stable financial performance with modest growth, suggesting a low-risk profile for the period covered.

Key Numbers

• $640 million — Net Sales (9 months ended 09/30/2024) (Represents the total revenue generated from sales of hardware, software, and services.)
• $7.09 million — Net Income (9 months ended 09/30/2024) (Indicates the company's profitability after all expenses.)
• $0.17 — Earnings Per Share (9 months ended 09/30/2024) (Shows the portion of a company's profit allocated to each outstanding share of common stock.)

Key Players & Entities

• Climb Global Solutions, Inc. (company) — Filer of the 10-Q report.
• 20240930 (date) — Conformed period of report.
• 20241101 (date) — Filed as of date.
• $640 million (dollar_amount) — Net sales for the nine months ended September 30, 2024.
• $7.09 million (dollar_amount) — Net income for the nine months ended September 30, 2024.

FAQ

Filing Documents

• clmb20240930_10q.htm (10-Q) — 1702KB
• ex_718193.htm (EX-31.1) — 9KB
• ex_718194.htm (EX-31.2) — 9KB
• ex_718195.htm (EX-31.3) — 9KB
• ex_718196.htm (EX-32.1) — 6KB
• ex_718197.htm (EX-32.2) — 6KB
• ex_718198.htm (EX-32.3) — 6KB
• 0001437749-24-032952.txt ( ) — 7710KB
• clmb-20240930.xsd (EX-101.SCH) — 58KB
• clmb-20240930_cal.xml (EX-101.CAL) — 60KB
• clmb-20240930_def.xml (EX-101.DEF) — 408KB
• clmb-20240930_lab.xml (EX-101.LAB) — 335KB
• clmb-20240930_pre.xml (EX-101.PRE) — 442KB
• clmb20240930_10q_htm.xml (XML) — 1395KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) Condensed Consolidated Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023 4 Condensed Consolidated Statements of Earnings for the three and nine months ended September 30, 2024 and 2023 (unaudited) 5 Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2024 and 2023 (unaudited) 6 Condensed Consolidated Statements of Stockholders ' Equity for the three and nine months ended September 30, 2024 and 2023 (unaudited) 7 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 (unaudited) 8 Notes to Condensed Consolidated Financial Statements (unaudited) 9 Item 2. Management ' s Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 34 Item 4.

Controls and Procedures

Controls and Procedures 34

OTHER INFORMATION

PART II OTHER INFORMATION Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 35 Item 5. Other Information 35 Item 6. Exhibits, Financial Statement Schedules 36

SIGNATURES

SIGNATURES 37 2 Table of Contents Cautionary Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q ( " Quarterly Report " ) includes statements of our expectations, intentions, plans and beliefs that constitute " forward-looking statements " within the meaning of the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the " Exchange Act " )), and are intended to come within the safe harbor protection provided by those sections. The statements, other than statements of historical fact, included in this Quarterly Report are forward-looking statements. Many of the forward-looking statements contained in this Quarterly Report may be identified by the use of forward-looking words such as " believes, " " expects, " " intends, " " anticipates, " " plans, " " estimates, " " projects, " " forecasts, " " should, " " could, " " would, " " will, " " confident, " " may, " " can, " " potential, " " possible, " " proposed, " " in process, " " in development, " " opportunity, " " target, " " outlook, " " maintain, " " continue, " " goal, " " aim, " " commit, " or similar expressions or when we discuss our future operating results, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Because these forward-looking statements are subject to risks and uncertainties, actual results could differ materially from those indicated by such forward-looking statements. These risks and uncertainties include, but are not limited to, the continued acceptance of the Company ' s distribution channel by vendors and customers, the timely availability and acceptance of new products, product mix, market conditions,

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS Climb Global Solutions, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (Amounts in thousands, except share and per share amounts) September 30, December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 22,139 $ 36,295 Accounts receivable, net of allowance for doubtful accounts of $ 640 and $ 709 , respectively 247,907 222,269 Inventory, net 4,445 3,741 Prepaid expenses and other current assets 6,629 6,755 Total current assets 281,120 269,060 Equipment and leasehold improvements, net 12,151 8,850 Goodwill 29,628 27,182 Other intangibles, net 46,041 26,930 Right-of-use assets, net 937 878 Accounts receivable, net of current portion 752 797 Other assets 863 1,077 Deferred income tax assets 448 324 Total assets $ 371,940 $ 335,098 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $ 273,893 $ 249,648 Lease liability, current portion 533 450 Term loan, current portion 555 540 Total current liabilities 274,981 250,638 Lease liability, net of current portion 796 879 Deferred income tax liabilities 5,671 5,554 Term loan, net of current portion 334 752 Other non-current liabilities 2,490 2,505 Total liabilities 284,272 260,328 Commitments and contingencies Stockholders' equity: Common stock, $ .01 par value; 10,000,000 shares authorized; 5,284,500 shares issued: 4,606,790 and 4,573,448 shares outstanding, respectively 53 53 Additional paid-in capital 36,676 34,647 Treasury stock, at cost, 677,710 and 711,052 shares, respectively ( 12,777 ) ( 12,623 ) Retained earnings 62,560 53,215 Accumulated other comprehensive income (loss) 1,156 ( 522 ) Total stockholders' equity 87,668 74,770 Total liabilities and stockholders' equity $ 371,940 $ 335,098 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 Table o

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View this 10-Q filing on SEC EDGAR