Climb Global Solutions, Inc. · NASDAQ:CLMB
Climb Global Solutions — Wayside Technology Group — Investor Presentation (August 2018)
15 slides from Climb Global Solutions's investor presentation, Aug 31, 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 WE DISTRIBUTE TO THOUSANDS OF RESELLERS WE BUY FROM HUNDREDS OF VENDOR PARTNERS VARs System Integrators Government Education 5 Starting with our many years of experience, we leverage our: • Technological expertise • Logistical support • Credit facility and programs …to assist new emerging
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: 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 7: Financials
FINANCIALS Financial Information • Summary • Business Model • Recent Trend • Adjusted Gross Billings (non-GAAP) • Net Sales 9
Slide 8: Financial Summary
$ Millions Except Per Share Data FINANCIAL SUMMARY Full Year 2017 First Half 2018 December 31, 2017 June 30, 2018 Cash $ 5.5 $ 10.4 Adjusted gross billings (non-GAAP) Nets sales $ $ 449.4 160.6 $ $ 241.6 84.5 Net Working Capital $ 29.9 $ 32.2 Non GAAP net income (excludes executive separation 2018)
Slide 9: Business Model
BUSINESS MODEL Historical Accounting 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. ASC 606 Adjusted gross billings/net sales $ 449.4 $ 160.6 Gross margin G
Slide 10: Operating Results Trend
OPERATING RESULTS TREND Year ended December 31, Six months ended June 30, Top Line Growth Shift in product mix & competition impacts gross margins Consistently profitable 12 Adjusted gross billings (non-GAAP) Net Sales (ASC 606) Gross Margin Gross Margin % adjusted gross billings Gross Margin % net
Slide 11: Adjusted Gross Billings (Non-GAAP) Trend
(Non-GAAP) Trend ADJUSTED GROSS BILLINGS $449.4 $418.1 $382.1 • • Consistent growth Participating in growth markets of software subscription and security products Maintenance includes renewals on installed base of software vendors $241.6 $215.8 • 13
Slide 12: Net Sales GAAP ASC
NET SALES GAAP ASC 606 Security Software and Maintenance and services recorded on a net basis under ASC 606 14
Slide 13: Questions?
QUESTIONS? Thanks for your attention! Questions are welcome! 15
Slide 14: Non-GAAP Measures and ASC 606 Adjustments
We use non-GAAP measures including Adjusted gross billings and Net income excluding separation expenses, net of taxes as supplemental measures of the performance of our business. Our use of these measures has limitations and you should not consider them in isolation or use them as substitutes for an
Slide 15: Appendix
WAY SIDE TECHNOLOGY GROUP APPENDIX ‘ereen nnn cin rien te ton Ge 7 . . . , ‘Six months ended June 30,2018 Six months ended tune 30,2017 Year ended tune 30,2017 ‘Year ended June 30,2016, Year ended tune 30,2015 ‘Adjusted “Adjusted ‘ajusted ‘Adjusted ‘adjusted gross Costof gross Costot gross Costot gr
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