Climb Global Solutions, Inc. · NASDAQ:CLMB
Climb Global Solutions — Wayside Technology Group — Investor Presentation (September 2018)
16 slides from Climb Global Solutions's investor presentation, Sep 26, 2018
Slide 1: Safe Harbor Statement
SAFE HARBOR SAFE HARBOR STATEMENT This presentation is for informational purposes only and is not an offer to sell securities or a solicitation of an offer to buy any securities, and may not be relied upon in connection with the purchase or sale of any security. Sales and offers to sell Wayside Tech
Slide 2: Overview: Who We Are
OVERVIEW Who We Are Market Capitalization of $54M, 4.5 million diluted shares outstanding, no debt, approximate 5+% dividend yield IT Channel Company, distributing emerging enterprise technology products since 1982 2017 Adjusted gross billings of $449 million, Net sales $160.6 million, Net income $5
Slide 3: Management Team
MANAGEMENT TEAM Steve DeWindt, Interim CEO – 30+ years in software and technology distribution Michael Vesey, CFO – 25 years in communications and software Dale Foster, Executive VP – 30+ years in technology distribution, joined in 2017 from Promark/Ingram Micro Brian Gilbertson – VP GM Lifeboat – 3
Slide 4: What We Do
WHAT WE DO Starting with our many years of experience, we leverage our: Technological expertise Logistical support Credit facility and programs • • • WE BUY FROM HUNDREDS OF VENDOR PARTNERS WE DISTRIBUTE TO THOUSANDS OF RESELLERS System Integrators VARs Government Education .to assist new emerging v
Slide 5: IT Channel
IT CHANNEL With 30 years in the marketplace, our reach into the reseller community is roughly on par with the mega players while providing “High Touch” service for emerging and highly technical products. 6 THOUSANDS OF SMALLER VARS, MSP & CLOUD INTEGRATORS SPECIALTY DISTRIBUTORS SYSTEM INTEGRATORS,
Slide 6: Market Segment Focus
MARKET SEGMENT FOCUS Vendors Hyper Converged Infrastructure & Storage Network Management & Development Tools Security The vendors we represent operate in growth markets characterized by innovation and new products. 7
Slide 7: Key Channel Partners
KEY CHANNEL PARTNERS Leveraging knowledgeable sales team and state of the art EDI infrastructure to provide superior service to our partners. 8
Slide 8: Financials
FINANCIALS Financial Information • Summary • Business Model • Recent Trend • Adjusted Gross Billings (non-GAAP) • Net Sales 9
Slide 9: Operating Results Trend
OPERATING RESULTS TREND Top Line Growth Shift in product mix & competition impacts gross margins Consistent profitability & dividend 10 Year ended December 31, Six months ended June 30, Adjusted gross billings (non-GAAP) Net Sales (ASC 606) Gross Margin Gross Margin % adjusted gross billings Gross M
Slide 10: Financial Summary: Balance Sheet
$ Millions Except Per Share Data FINANCIAL SUMMARY 11 Balance Sheet DecemberJune 30, 31, 2017 2018 Cash$5.5$10.4 Net Working Capital$29.9$32.2 Debt$-$-Stockholders Equity$38.7$38.9 Diluted shares outstanding (000's)4,4554,480
Slide 11: Adjusted Gross Billings (Non-GAAP) Trend
(Non-GAAP) Trend ADJUSTED GROSS BILLINGS $449.4 $418.1 $382.1 $241.6 • • Consistent growth Participating in growth markets of software subscription and security products Maintenance includes renewals on installed base of software vendors See appendix for GAAP Net Sales $215.8 • • 12 Adjusted Gross B
Slide 12: Business Model
BUSINESS MODEL Our business is characterized by low gross profit as a % of gross billings, high operating leverage and low capital investment requirements, resulting in mid teen return on invested capital. Return on invested capital is calculated as net income/(shareholders equity + debt - cash) 13
Slide 13: Questions?
QUESTIONS? Thanks for your attention! Questions are welcome! 14
Slide 14: Net Sales GAAP ASC 606
NET SALES GAAP ASC 606 Security Software and Maintenance and services recorded on a net basis under ASC 606 15
Slide 15: Non-GAAP Measures
T E CHNOLO G Y G i=IOU;::t N'orHJAAIP IMDUirH !;tj l'lQ n-GAAP m•ro;lud m!J 1\dJIIIgrQ!!<lin$ or.d -.v •n cwr $$ lill mcomxw:t mg $IOP•r•h l!<>'--nt J)/ 1••• •• $41J)I;Jio!nl•l lr$1,$11r• qf Ou r 11$11' Q f h $li< JIM!0$1,rli<$ hlllr•t;olQ no ;111d )""' $hlluld nQ1 <;Q n"""' 1h1n <l n Qr ti-.J;jm ••
Slide 16: Appendix
APPENDIX
Wayside Technology Group — Investor Presentation (September 2018) on 6ix