Climb Global Solutions, Inc. · NASDAQ:CLMB
Climb Global Solutions — Wayside Technology Group — Investor Presentation (March 2019)
27 slides from Climb Global Solutions's investor presentation, Mar 28, 2019
Slide 1: Investor Presentation March 2019
INVESTOR PRESENTATION MARCH 2019
Slide 2: Safe Harbor Statement
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 Technology Group
Slide 3: Overview
Market Capitalization of $50M, 4.5m million diluted shares outstanding, no debt, approximate 6% dividend yield IT Channel Company, distributing emerging datacenter and security products since 1982 Offices in U.S., Canada & Netherlands Public Company since 1995 (NASDAQ-GM) (WSTG) 2018 Adjusted gross
Slide 4: 35 years in the IT channel
Technology Vendors The IT Channel Distributors Resellers End Users 35 years in the IT channel We currently operate primarily as a distributor through our Lifeboat distribution subsidiary Approximately 10% of sales are from specialty reseller situations through our TechXtend subsidiary Develop Techno
Slide 5: Capital Efficient Business Model
5 Capital Efficient Business Model ($millions) IT Distribution Economics: • Low gross profit as a % of gross billings • High operating leverage & cash velocity • Low capital investment requirements • Resulting in mid-teen return on invested capital 2018 Adjusted Gross Billings (“AGB”) (Non-GAAP) $50
Slide 6: Growth Catalysts
6 Growth Catalysts • Large market with constant innovation and disruption • New entrants provides opportunity for share gain Steve DeWindt, CEO – 30+ years in software and technology distribution Michael Vesey, CFO – 25 years in communications and software Dale Foster, Executive VP – 30+ years in te
Slide 7: Lifeboat Distribution: IT's our DNA
ans ‘ ~ & SS Py =ee2 = = = LIFEBOAT & DISTRIBUTION 'T’s our DNA so 3S ‘ae See T; TT TT Ve
Slide 8: Technology Landscape
Emerging Technologies Established Infrastructure TECHNOLOGY LANDSCAPE • Security • Virtualization & Cloud • Storage & HCI • Data Management & Analytics 8
Slide 9: Distribution Landscape
Specialty Distribution Volume Distribution DISTRIBUTION LANDSCAPE 9
Slide 10: Who We Are
WHO WE ARE Channel Incubator – Two Tier Strategy Emerging Technologies – Data Center Ecosystem True Value Add Disti – Trusted Advisor 10
Slide 11: Product categories
Security Virtualization and Cloud Connectivity Data Management Storage and HCI MSP/CSP Software and Application Lifecycle 11
Slide 12: Software and Application Lifecycle
Software and Application Lifecycle Solutions for Dev Ops, ALM & ADLM environments as well as Business Intelligence, Business Productivity AI, IoT, and other IT trends 12
Slide 13: Cyber and Network Security
Cyber and Network Security Solutions from multiple industry-leading suppliers that encompass the entire environment from edge to endpoint. 13
Slide 14: Virtualization and Cloud
Virtualization and Cloud Solutions for server consolidation and containment, development and test optimization, business continuity and disaster recovery, and desktop manageability and security. 14
Slide 15: Connectivity
Tools to proactively secure, manage and monitor the network. Meet the real-world needs of the always- on data center. Connectivity 15
Slide 16: HCI and Storage
HCI and Storage Solutions for software-defined storage, networking, virtualization, and disaster recovery. Bringing together computing resources, storage and networking to reduce compatibility issues and total cost of ownership. 16
Slide 17: Data Management
Data Management Solutions that go beyond disaster recovery and business continuity planning. Deliver the right level of compliance and protection; resolve a wide variety of possible IT disasters. 17
Slide 18: MSP/CSP
MSP/CSP 600+ active MSP/CSP’s and growing Currently developing MSP/CSP marketplace on lifeboatdistribution.com Rapidly growing vendor participation 18
Slide 19: Solution categories
SECURITY DATA MANAGEMENT SOFTWARE AND APPLICATION LIFECYCLE VIRTUALIZATION AND CLOUD STORAGE AND HCI CONNECTIVITY 19
Slide 20: Lifeboat Delivers
LIFEBOAT DELIVERS Growth and Scalability for partners – Extension of Vendor Marketing Assist – Demand Generation, WebEx, MDF Sales Assist – Technical and Sales Resources, Field Sales Flexible Finance Process – FPO and Creative Finance Vendor Program Assist – Deal Registration, Certifications, Naviga
Slide 21: #1 Choice for Emerging Vendors
#1 CHOICE FOR EMERGING VENDORS CROSS SELL CAMPAIGNS DMR NATIONAL REGIONAL MSP/CSP RECRUIT ENABLEMENT DEMAND GEN CHANNEL/OPPORTUNITY ACCESS 21
Slide 22: Who We Sell To
WHO WE SELL TO SYSTEM INTEGRATORS, SOLUTION PROVIDERS THOUSANDS OF SMALLER VARS, MSP & CLOUD INTEGRATORS DMRs, MAJOR VARS 22
Slide 23: Financial Information
WAY SIDE TECHNOLOGY GROUP FINANCIAL INFORMATION
Slide 24: Income Statement
24 Income Statement 2018 2017 2016 Adjusted gross billings (Non-GAAP) $509.9 $449.4 $418.1 Net Sales $181.4 $160.6 $164.6 Gross Margin $26.9 $27.1 $27.3 Non-GAAP Net Income (2018 excludes $2.0m executive separation) $5.5 $5.1 $5.9 Non-GAAP Diluted EPS $1.23 $1.13 $1.25 Dividend per Share $0.68 $0.68
Slide 25: Balance Sheet
25 Balance Sheet December 31, 2018 December 31, 2017 Cash $14.9 $5.5 Net Working Capital $36.2 $29.9 Debt $ - $ - Stockholders Equity $40.6 $38.7 Common Shares Outstanding 4,496 4,455
Slide 26: Questions
WAY SIDE TECHNOLOGY GROUP Questions
Slide 27: Appendix
WAY SIDE TECHNOLOGY GROUP Appendix
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