Q3 2024 Climb Global Solutions Inc Earnings Call

Speaker Change: [music].

No.

Please standby your program is about to begin.

Joining the conference today.

Press Star Zero.

Okay.

Speaker Change: Good morning, everyone and thank you for participating in today's conference call to discuss climate Global solutions financial results for the third quarter ended September 30th 2024.

Speaker Change: Joining us today, our clients CEO, Mr. Dale Foster the company's CFO, Mr Drew Clark and the Companys investor relation adviser, Mr. Shawn Mansouri with elevate I R. B.

Speaker Change: By now everyone should have access to the third quarter 2024 earnings press release, which was issued yesterday afternoon at approximately 405 P M Eastern time.

Speaker Change: The release is available in the Investor Relations section of climb global solutions website at Www Dot climb global solutions Dotcom.

Speaker Change: This call will also be made available for webcast replay on the company's website.

Speaker Change: For management remarks following management.

Speaker Change: <unk> remarks, we will open the floor for questions I'd now like to turn the call over to Mr. Mansouri for introductory comments.

Speaker Change: Selling agreements with only four of them I'd like to quickly highlight one of these wins in September we announced the partnership with align a leading security and compliance solutions provider that is trusted by more than 4000 global organizations align combines deep compliance expertise and innovative audit management technology to mitigate such cypress.

Speaker Change: Security risk, while navigating complex regulatory requirements.

Speaker Change: By partnering with a line we are ensuring that our channel partners have the resources needed to efficiently move from audit to stage two strategic compliance we look forward to building a mutually beneficial relationship with a line as we continue to scale our businesses globally.

Speaker Change: On the topic of scaling overseas. We recently took our first steps toward building our presence in Germany, a key market in Western Europe. As we have stated many times deals in Western Europe are built on trust and local connections for the first time in the company's history, we have dedicated a team to be on the ground focused on building and nurturing these relationships.

Speaker Change: We recently competed completed our climb branding kickoff signaling the start of a more committed and comprehensive approach in this region. We are thrilled to launch this initiative and look forward to building out Columbus presence in Germany in the dock region.

As we mentioned before we went live with our new ERP system during the quarter, while it has a well it is early with our new systems. We expect this platform to significantly enhance our operations over time, both in North North America and overseas.

Speaker Change: It just points to 41% compared to 36% in the year ago period.

Speaker Change: Turning to our balance sheet cash and cash equivalents were $22 1 million as of September 32024, compared to $36 3 million on December 31, 2023, while working capital decreased by $12 $3 million during the period.

Speaker Change: The decrease in cash was primarily attributed to the cash paid at closing for our acquisition of DSS of $20 9 million as well as the normal timing of receivable collections and vendor payments.

Speaker Change: As of September 30 of 2024, we had 900000 of outstanding debt with no borrowings outstanding under our $50 million revolving credit facility with Jpmorgan Chase.

Speaker Change: On October 28th consistent with prior quarters, our board of directors declared a quarterly dividend of <unk> 17 per share of our common stock.

Speaker Change: Stockholders of record as of November 11, 2024, and payable on November 15th 2024.

Speaker Change: To Echo Dale's earlier comments, our plans remain unchanged leverage our global presence to drive organic growth, while expanding our line card with most innovative companies in the market. Our strong balance sheet will continue to drive our M&A strategy as we evaluate new targets in western Europe and beyond.

Speaker Change: We're proud of our team's hard work and dedication in achieving these record results and look forward to maintaining this momentum through the close of 2024 and ended the year ahead.

Speaker Change: Dale and I continually reinforced to our team, let's keep climbing.

Speaker Change: This concludes our prepared remarks, we'll now open it up to questions from those participating in the call operator back to you.

Speaker Change: To not have the people that are running it because we don't want to run a company in Germany. We wanted to have a culture that fits with ours that we can just continue to expand on what we're doing and they can see from our original plan of us acquiring and expanding as we think technology starts in North America and moves through the rest of the globe. So we want.

Speaker Change: Able to launch it very quickly there and just use the resources of the company we acquired.

Speaker Change: That's very helpful. Do you signed in in your acquisition.

Speaker Change: Process.

Speaker Change: That mindset ends up being.

Speaker Change: An advantage and in the <unk>.

Speaker Change: That you ended up closing more deals.

Speaker Change: Because the because the seller likes that approach as opposed to a fear or knowledge that there will this be a.

Speaker Change: Our getting the people part of the organization.

Speaker Change: Yes.

Speaker Change: It is my.

Speaker Change: And I'm, just I'm Super open with potential targets.

Speaker Change: And some of the team members that are still with US from our first acquisition Carlos runs our North American vendor management team and we acquired them in 2020 part of Interwork acquisition.

Speaker Change: I said listen just reach out to my three or four people that are still with us of acquired companies and let them tell you.