WSTG - Earnings call transcript Q2 2022 | Climb Global Solutions, Inc.

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Operator

Good morning, everyone and thank you for participating in today's conference call to discuss Wayside Technology Group's Financial Results for the Second Quarter ended June 30, 2022.

Joining us today are Wayside's CEO, Mr. Dale Foster; the company's CFO, Mr. Drew Clark; and the company's Investor Relations adviser, Mr. Sean Mansouri with Elevate IR. have which the at was P.M. should earnings quarter approximately everyone release, press issued now, access second to XXXX X:XX By yesterday afternoon Time. Eastern The section Investor website release waysidetechnology.com. in Technology at Wayside Group's Relations is available of the webcast This company's on website. available the replay call be will also for

like Mansouri Following management for now introductory the the call your questions. call comments. remarks, turn for over we'll I'd open to to Mr.

Sean Mansouri

you. Thank

of and any risks statements remind are are in materially statements listeners conference Do the subject I cause uncertainties forward-looking and forward-looking any that those are other comments on to obligation by no required that like the introduce reliance as the to which filings Before publicly results are law, as Private of actual these unknown from this webcast forward-looking forward-looking Dale, from made risks Act as These as the call under could time certain Except undertakes to this These not with revise assumptions and any Reform of and statements. company's subject uncertainties the SEC. are the to call. being results reflected forward-looking considered I'd company statements time known on Litigation revision or differ undue to release to forward-looking made that certain Securities of XXXX. in well to only date also statements, place described statements.

with been supplemental the rules. adjusted business. of directly our presentation reconciled and Our performance non-GAAP certain as have in GAAP measures, measures most non-GAAP gross also includes measures to measures accordance comparable All EBITDA, adjusted SEC financial effective margins, including billings, of

turn X-K the information and and the charts call earnings Wayside's furnished Dale to to would Foster. other SEC to reconciliation we the CEO, now release in like I find over You'll important press yesterday. Form

Dale Foster

morning, Sean you, everyone. and good Thank

adding profitability gross new our This a another our on line our vendors emerging during and double compared while year. the card. execute quarter of the digits with vendors to growth resulted core existing with quarter, of and profit generating net to and organic in customers to EBITDA initiatives continue in prior income We adjusted increase second significant strong

of data committed on card network. more to partnership our Internet. focused segments them, only the is host and growing past in quarter, even every per exceptional market activity with access trillion Kubernetes innovative This digital leader a visibility calls, consistently and applications. connect and we order end, quarter partner As reach bots limited resellers marketplace as the highlight, bolster first expand in North Out our look as XX two Mirantis users company Subsequent their we signed of products interactions to the innovative been in staff. software the growing preferred humanity the Container of year. week, based, six which to global depth technology XX fastest platform HUMAN the the a were of are evaluated the HUMAN's bot distributor Hammerspace providers sophisticated as of partnerships service I management for than increasingly of and becoming with an past cloud with into their security to Mirantis their Hammerspace across a brands delivered defense computing week, to a our Cloud and last such with agreements channel. brings I'd to source XX% and technologies We offering to mentioned this vendor forward line and with the global world's we enables open of in with which are to criminals market. enterprises enterprise we a is and Mirantis. Over platform, Engine. digital through like we designated cloud believed Today, be only our all has solution America attacks more data fraud brands cybersecurity including are to and most verifies these cyber vertical, one

productive While it also client line months has of to awareness have been headway of adding another driving continued few broader market we card, our to make in business. our

this one cyber just the on primary conference vendors our mentioned Nims sponsor last Acronis security peak. the of to And Hendrick week, last Purja with during sponsored we As earlier Denali's of call, our year, ascent his announced be of Motorsports. we partnership

Climb, we He colleagues risen has over we to my think expanded enthusiasm during promotion the I America. where at received sponsorship service to this at team NASCAR of in his the the our prominent the years the on of two representation is hired Byron consistently our races for more title a Our Acronis. promotion. the of years. alongside over couldn't and channel, success. with Popovich as climbed of leadership to of Tim on IT strong truly working professional the contender, place Wayside associate Climb role. XX Board continuing competent branding XXXX company a season North vendor ranks Also level The a and covers the has and of our industry. for was company we William next at where true quarter, Tim even With the here in and the this and culture take ladder strive more through learn Tim a our emphasis sales President of and hard share

to member been a the Audit last away recognize Before I passed team and appointed was Crane. our of a XXXX. Chair Andrew, in turn unexpectedly that Ross Ross I over has key week, it Board to XXXX Director since take Committee of want to another moment

provided advice our saddened as was experienced His Drew sage by team. We are Board who colleague deeply wisdom counsel the and Ross never to will be an forgotten. and member financial entire and executive a news.

call you results. financial the Drew? to this during family the with are time. over Drew turn now difficult his I through take will thoughts to Our

Andrew Clark

Thank everyone to close morning, good who No Ross. in side and Ross, out wife many Board and with side especially here, trenches everyone. our our Bryant, was easy go segue condolences by that spent you, Terry member, years industry Andrew to Ross's Dale working and

we all everyone QX commentary highlighted were As we our improved comparisons and to our remind prior want results specified. financial growth profitability. fifth that in another to variants of quarter, period review of produced otherwise consecutive results, the period-over-period refer profitability as I year unless quarter by

quarter. in which organic reflects vendors. from our the continued increase in a existing reported gross compared to growth adjusted and earnings $X.X to million The new ago measure, $XXX.X million increased release, is As X% non-GAAP million $XXX.X or press billings, year

record In sales quarter in compared million. net vendors of the million year of our addition, is period. in one sales to $XX.X decrease with net second ago $XX.X XXXX slight the attributed This to were

with XX Excluding in pay year XX, was the well as to top that driven increased The with partners. the in Gross June remaining early million increase not million to XX% three ago our of compared advantage growth by XX vendor, of $XX.X XX% a top months the nearly period. profit second compared the grew customers by our net for taking organic discounts ended GP sales XXXX. number company vendors as quarter $XX to

ago was quarter a per billings to million share EBITDA. $X.XX our adjusted ago of were compared scale, our per the and in to adjusted in the million to in million or adjusted from as ability a compared XX.X% income and the to X.X% as to ability XXXX. to existing our incremental share XX% $X.X period leverage, increased to the SG&A Adjusted quarter. business. $X.X to million human $X.XX year percentage quarter comparable This X.X%, for EBITDA XXXX period and new the the diluted our million diluted organic XX.X% or of quarter. was $X.X profit second versus a net gross XX% compared and of income higher vendors both to commitment the net $X.X quarter was in SG&A in was X.X%, to second the infrastructure percentage deliver Net XXXX. and of $X.X expenses a gross sales Our for demonstrating $X.X as of leverage increased X.X% to million entirely same and in increase percentage demonstrating driven growth GP as in by percentage year gross second compared continue capital we billings again, compared grow

under dividend outstanding and period. $X.XX our combination as compared balance noncurrent to Cash of our on million balance $XX.X and remained XXXX. of August term to XXXX, sheet. the to of debt second working On August XXXX. into million our sheet this a credit facility the million we XX, record XX, either GBP $XX The equivalents XXXX shareholders XX, payable a capital at finance of With quarter, XXXX of while which In share borrowings totaling X or stock. of level $X.X the cash facilities. $X.X reflected current declared Directors is XX, as implementation, during June our as million common to ERP XX, Turning dividend of a is on quarterly of million year-end June August increased by Board entered no per prior as approximately

and long initiatives, continued the beyond, of we term. growth over and execution Looking to QX the abundant core ahead through short to see capture our both opportunities

originally the company profitability targeted a continue as outlook our forward We scale. for We this call. introducing we and on outlook intended to longer-term introduce today's looking are to to multiyear directional that growth highlights conference

now. steady you. and Ross best it leadership the on for questions And thoughtful all. by resulting insight Ross's open vacancy Thank to we'll and truly those Board it in and back To for participating passing from we Audit and given However, Operator, concludes it you. the call. unexpected Dale's echo will comments, prepared now our to the was the be defer felt of missed remarks. This up Committee,

Operator

[Operator Thank you. Instructions].

question investor. Howard the [ph] first Roupe a as from of line Our comes private

Your line is open.

Unidentified Analyst

okay? on Can you quarter. the guys hear me Congratulations,

Dale Foster

Sure can, Thanks. Howard.

Unidentified Analyst

little in sad quarter. $XX condolences of that, One, forward your reason there two sad, on for ticked reason questions Drew. that? that account that's The kind Director. payable million what by have. for to Is kind is something of and going the That's or for a about of the -- news. was passing Sure going down Two any questions the I continue,

Andrew Clark

normal and No, function. management treasury our cycle of management just cash the

requirements. a of So internal one payment we requested vendor meet from earlier their had an us to that

of with happy balance were to because that that was some the cash additional we margin accommodate payment. sheet, and plenty have there capital, we working So on associated

capital So have to quarter, that deploy AP balance our the at would that that position of will of able working may or working of the of in that indicative much until net into end variance a be cash some levels the kind influenced nothing capital are and have we but acquisitions.

Unidentified Analyst

quarter, the Okay. And term borrowings? you give the can loan, reasoning in for on the loan the the similar term

Andrew Clark

in and as are we we Yes, at with the and with a cash, -- looked could it rate we very we attractive selected, X.XX%. ERP the four-year interest and that and of decided mentioned, the inflationary that we implementing of the based at revolver, term variable fund perspective that we financing a fund a that process could rate we for on environment outlook could in lock increases rate, rising

do the that So rationale that. was to

Unidentified Analyst

see same you you the staying be continuing that? do that And to increasing forward do or it was see on going what or

Andrew Clark

Well, balance over amortize period. a that's XX-month the we

in only to component. on than off any of CAPEX don't projects type And other So we'll down foreseeable capital have interest because pay intermediate amortize continue the or and as put other think acquisitions. we that will we future the financing other that's principal any the really I

Unidentified Analyst

expect, going Okay. going -- understand, gross give and focused here of you bit kind your a selective, a are growing I one well are vision But kind Dale, margin offerings mean, forward, of lack all perform linear see way. I a in of ticks given a goes and I give the out guys great. I what color can of the can can the color people pathway invest tragedy, process that? little line you're on up, linear and good as I of boring mean received just you're give then just from that just today. you mean gross forward, much exactly you continue bottom here, that's that's another, the this of it, up, overall nice, companies a Is in color just you the product on And most you this the little boring and you bigger. to laying and some forward, adjusted going billings can profitable, but is you and

Dale Foster

lot integrated. we them when acquired And got there. CDF much teams say, to we past not Howard, COVID, time made we've picking companies, XXXX. about And them Group nine team, It We to having the in we're spend UK. to that up going a chose, is got right that the of talked things get as the we in and team with Canada, that a and we did we much in the a -- trips, months with great we a acquire out point, a lucky had probably just culture to had during and we one, multiple we fit too this I've is have Board of and couple two members could the over time And maybe the do with multiple hey, it do our same about company. them.

through the do to the acquisition ownership had had we that with got process. that they with it along whole of some think I

core same to at going business, if our we're thing. take So a the you do look

continue have we'll see biggest on that same going that are we the and them we're to up. then in that CDF called they see We're put add they another ones now you'll right, right not that, our in stage so into the vendors nonperformers, you'll are acquisitions same region into that And the Interwork our in we'll the the that for vendors, get group vendors. and Other for it that regions we plug in launch we our growth with to bring looking cycle, to then them. reach, and kind why we're provide the build additional and get like just also the When when fits Elevate to we the goal so want their them core at to same regions, going life our regions than with if you impact jump and will and have continue value back say is right have and that flow jettison best do because of We our today? add-on into that reach think the with continue that Climb in linear thing. boring, and the can that we're that us,

Unidentified Analyst

congratulations quarter. And on another thanks. Great, boring great

Dale Foster

Thanks it. appreciate Howard,

Operator

queue. back questions the I'd remarks. not call you. any Thank showing any to further Dale to I'm closing in like over turn for the

Dale Foster

Yes, thanks our thanks and thanks our our employees. shareholders, Albert, to and to Board members

know been of hit little seen said, talked in internal be being making that to Howard of that a work has by going problems in We're things boring, coming won't lot believe that. we'll but recession, things to good entering we about But be a thing on. have We I have plans couple integrations logistics the the we for one. we are a company, to our our We we've due one, same meetings over are the years. that that and software like on forward. continue last we a delivery --

as talk things little be we'll us, to to everybody at then is us we able our on progress it overall and the and ERP an look meeting that internally. you important if well, super about as as systems track get watch same easier a the in So next company

So thanks support for as your always.

Operator

participating. conference you And Thank this today's concludes call. for

You may disconnect. a day. now have great Everyone,

Climb Global Solutions (CLMB) 5 Aug 222022 Q2 Earnings call transcript