WSTG - Earnings call transcript Q1 2018 | Climb Global Solutions, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen, and welcome to the Wayside Technology Group Conference Call. [Operator Instructions] As a reminder, ladies and gentlemen, this conference is being recorded. I would now like to introduce your host for today's conference, Melanie Caponigro. Ms. Caponigro, you may begin your conference at this time.

Melanie Caponigro

morning. good and you, Thank Welcome to Earnings Quarter Technology's First XXXX Call. Wayside

webcast and will at our any and X, answers, May in our also Simon the with company's call, associated today, language for is the webcast and be quarter the a call Relations in and information company's released only live, turning call. statements. discussed at to Nynens, this the greater about Group, call accurate sees earnings and This for X, over update XX-Q cautionary May XX-K. Forms the website XXXX. first and approximately dispense rebroadcast contain that uncertainties Before time-sensitive no earnings Forms to available is including release I'll forward-looking to earnings the risks We www.waysidetechnology.com/site/content/webcast. the CEO, A in Chairman customary of comment conference at update Eastern detailed p.m. The intend X:XX Today's as webcast all Inc. of Investor obligation and Technology questions is Wayside being Thursday, waysidetechnology.com. not detail time, XXXX. does available discussion at and are

call over Now I like Simon to turn Nynens. would to the

Simon Nynens

market view, good operational Income we we per X.X% signed and strengthened share XX Thank position morning diluted as to new you, an more before than our Melanie, the earnings quarter. distribution good increased and everybody. tax distribution software From vendors. increased agreements XX%, with in a

drive costs, allowed to solid our a earnings on maintained performance. focus which also We us

current March half as and not a of XX% or of of our Cash, the one do conservative at XXXX. the or capitalization what represent need amounted market million public a of internally $XX.X long-term we as receivables, for and and company prepayments end view total debt. to to sheets our balance XX% vendor have the continue have cash, equity We most

of yield dividend have we almost In addition, X%. current

We have team add great to including the IT a more tools publishers, in place great and infrastructure.

it Vesey Mike? over financial I like Now to hand report on the to to Michael would numbers.

Michael Vesey

review ASC first our I'll customers January our from full adopted the balance you'll we XXX Simon. the Thanks, X, results then XXXX, for of liquidity. revenue method. quarter, To sheet note effective retrospective contracts using discuss financial start, and the

So prior amounts impact all be no operations. The had on reflect comparisons income restatement from of year the to adoption consistent.

of metrics. we a However, now portion of sales, impacts of of report margin a net gross revenue cost the operating our other and substantial net percent as related which sales

quarters, to level the which to $XX.X to for while X% been were million, for up case business, from the $XX.X XX% our down recent quarter were for net of business, term to TechXtend same XX% which quarter As TechXtend Distribution declined. payment has extended net last year. over Lifeboat $XX.X the to X% while increased sales the to the million XX.X%. sales Overall for Lifeboat quarter compared fluctuate accounts sales, has million net sales, sales quarter Distribution in based period period growth, the for net tends of our shown on

the to due extended Gross decisions. As capital I for which lower on sales for quarter payment mentioned, profit million based period TechXtend the sales, same internal allocation last opportunity the to were increased fluctuate decrease and million market in to X% compared $X.X term $X.X year.

prior million, sales $XXX,XXX year. by of for sales. to as Gross net decreased profit the in gross while to XX% due to increased payment Distribution percentage Lifeboat pattern, sales $X.X profit a to decreased XX.X% term lower extended TechXtend basis to quarter points XX.X% XX margin X% the compared Following the

margin The prior reported than the items. result for gross period-over-period a percentage the of net reporting result margins factors. accounting significantly profit you the of higher revenue standard Here, several the are that will is change certain note in under as

First, lower growth to our carry margin in margins product higher-volume overall and than software lines, a for which due competitive our incremental pressure. somewhat decreased average, products hardware and general

Secondarily, towards to of recorded gross third-party XXX% which sales, products, partially products. mix in resulting reported effectively subscription decline by for of net products shift maintenance was that in cost offset those margin

a will You adjusted assist gross billings reported historical also we see, our comparisons. operating to with earnings as metric in non-GAAP release

Adjusted year adjusted products expenses to sales GAAP As $X of as to administrative increased in professional described the company for reported million quarter. from new compared gross net increased in year's of to the to XX.X% net to the prior $XXX.X XX% $XXX.X sales the a the year's XXXX quarter. million cost in higher to standard. release, adjust gross fees expenses exclude billings under compared due billings slightly and were to public XX% net percentage Total and million selling, SG&A in last general costs. sales prior

year. earnings tax and to XX% increased new gross for per the XXXX, company in quarter of of share in our For compared to year. prior of the income $X.XX recorded a $XXX,XXX from XXXX reflecting earnings quarter the of contribution increased the The rate $X.XX Tax new the for Diluted in income a XX.X% the last of period to $X.X rate same quarter tax as to for corporate a Cut XX% increased Act the law. the and effective first Jobs Net $XXX,XXX business enacted prior impact was the first was XXXX. the provision the compared Lifeboat compared million share to XX% year. part primarily million of to driven XXXX compared XXXX, for share taxes The tax during first XXXX margin in of $X.X increase by

two-class in earnings and reported because per current amounts previous the quarters, our year recalculated using method previously share consistent the we As with -- restated noted calculations.

sheet. our to on moving Now balance

payment reduced additional under reflects facility. end sheet $XXX,XXX the in increase million quarter XXXX year. resulting equity $X.X a cash million of receivables to $XX.X million and end We an equivalents sales. credit the period of from And at of million and $XX in approximately extended prepayments end position, made impacts of liquidity to million of including quarter. and the as of $XX.X was and cash continue operating long-term stockholders' XXXX, at million XXXX, to last year. to paid us million profitable balance the in positive cash compared $XX.X with The the from manage $XX.X strong $X utilization flow was XX, cash, dividends during a the working end compared available We at the March and of vendor to to at compared last Total capital, our

most XXXX, details shareholders working us XXX, share as sources sales not available adopted maintenance the income at and approximately on of accounted for account standard, future as adoption adopted third-party sales on a gross a January included have to new the The We the we on standard had revenue May of flows. XXX. of balances long-term a XXXX, for capital, are from The adoption cost Historically, subscriptions, dividend review XXXX, addition, retrospective for of record significant liquidity. from gross payable will us receivable for which has to common the method, Under In our revenue using ASC change impact relates basis. in in of of recognition beginning are certain its the on effective May of stock impact period Board presented basis, XX, cash presented. adoption services. of XXXX. all of of certain profit, X, per of or sale standard periods revenue the of will this the on on with net method. been we a to $X.X of sales. revenues standard, X, declared no May a On most customers, $X.XX reporting third-party each net of quarterly costs Directors Under million, contracts gross ASC from we included XX, for finally, the a items our And net quick new with present if

of of does net and $XX.X reduction for resulted it reduction standard quarter gross in first million respectively. this million XXXX corresponding of and profit cost $XX.X a XXXX of The However, adoption percentage and sales. sales of of a increase of sales the as

our impact Simon? additional XX-Q adoption include shortly. tax a summarizing to we'll and table filed statements, have in be to Form We the our financial information of the

Simon Nynens

Mike. you, Thank

of partnership. and start Now session, We thoughts. Q&A vendors trust we before couple thank a more our the their customers for and

thank we flexible, team. quarter, you. a proactive a say culture. of we look team now extension who our and best are knowledgeable who strive We to customers Technology New you year, continued Jersey's places Q&A it XX to them, past acts the We thank during for work, these Wayside a number marketing I our confidence to to the to work Operator, made for possible, like forward people We an buying the forward-thinking our Group. this and make testament This to great Thank win. great session. start partner, vendor's here experience. at give passion your sales absolute hard And in best results in can to your and you a

Operator

Molder [Operator Instructions] Your [ph]. comes question first from Lu

Unidentified Analyst

wondering for You've any look made -- is there's company if know just company? dividend. coverage, I a and was I any but to to that effort at interest want analysts getting there some pay in don't great you got you're small-cap your

nobody a record. long-term A it. that you, knows lot it for got seems going You've and about

Michael Vesey

some we will a look at think the an I Mike we little year filer creating accelerated to the year. kind adjusting basis. market be the and a awareness looking answer is of to where is at upcoming market place could proactively, yes. on this some in in Yes, that been going approach and bit on We've and We're more Vesey, the past going-forward focused be things putting in

Unidentified Analyst

quarter, that company? do something as carry is in expect you've That's the Or of the the to created The progress much that quarters good. through progress? might pretty interfere this with there it momentum you

Simon Nynens

the In for month, long-term contracts. to our confidence. good It's year, there with every industry, no we very a to single we are it great sales forward start look on and fight

before, to the our in it's very I However, forward-looking as it's year, and give early in information hard said industry.

Operator

any no Please with continue are there time this At questions. remarks. closing further

Simon Nynens

you interest and we at Thanks our quarter to August. results second of Thank for end look reporting the company, much. so forward or your beginning in July of the our

Operator

conference concludes call. This today's

time, at participation. disconnect you for this may thank You your and

Climb Global Solutions (CLMB) 6 May 182018 Q1 Earnings call transcript