- Tables Follow -
WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
September 30, December 31,
2010 2009
------------ ------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 7,705 $ 8,560
Marketable securities 6,524 7,571
Accounts receivable, net 36,385 27,040
Inventory - finished goods 1,186 967
Prepaid expenses and other current assets 1,156 998
Deferred income taxes 564 677
------------ ------------
Total current assets 53,520 45,813
Equipment and leasehold improvements, net 596 432
Accounts receivable long-term 4,737 6,901
Other assets 38 38
Deferred income taxes 241 483
------------ ------------
Total assets $ 59,132 $ 53,667
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses 33,241 29,230
Current portion- capital lease obligation 82 -
------------ ------------
Total current liabilities 33,323 29,230
Long Term portion- capital lease obligation 159 -
Other liabilities - 78
------------ ------------
Total liabilities 33,482 29,308
------------ ------------
Commitments and contingencies
Stockholders' equity
Common stock, $.01 par value; 10,000,000 shares
authorized, 5,284,500 shares issued, and
4,780,598 and 4,688,844 shares outstanding,
respectively 53 53
Additional paid-in capital 25,145 24,826
Treasury stock, at cost, 503,902 and 595,656
shares, respectively (3,458) (3,555)
Retained earnings 3,534 2,727
Accumulated other comprehensive income 376 308
------------ ------------
Total stockholders' equity 25,650 24,359
------------ ------------
Total liabilities and stockholders' equity $ 59,132 $ 53,667
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WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
Nine months ended Three months ended
September 30, September 30,
2010 2009 2010 2009
--------- -------- --------- ---------
(Unaudited) (Unaudited)
------------------ -------------------
Revenues
Lifeboat segment $ 103,338 $ 69,131 $ 38,411 $ 23,844
Programmer's Paradise segment 38,456 34,961 14,583 11,466
--------- -------- --------- ---------
Total Revenue 141,794 104,092 52,994 35,310
Cost of sales
Lifeboat segment 93,910 62,268 34,980 21,511
Programmer's Paradise segment 34,097 30,582 12,880 10,105
--------- -------- --------- ---------
Total Cost of sales 128,007 92,850 47,860 31,616
--------- -------- --------- ---------
Gross Profit 13,787 11,242 5,134 3,694
Operating expenses
Selling costs 4,856 3,999 1,656 1,289
Stock based compensation 892 657 296 236
Other general and administrative
expenses 3,623 3,647 1,229 1,216
--------- -------- --------- ---------
Total Selling, general and
administrative expenses 9,371 8,303 3,181 2,741
--------- -------- --------- ---------
Income from operations 4,416 2,939 1,953 953
Interest income, net 316 403 104 128
Realized foreign exchange gain
(loss) 3 (1) - -
--------- -------- --------- ---------
Income before income tax provision 4,735 3,341 2,057 1,081
Provision for income taxes 1,800 1,374 800 483
--------- -------- --------- ---------
Net income $ 2,935 $ 1,967 $ 1,257 $ 598
========= ======== ========= =========
Net income per common share - Basic $ 0.67 $ 0.45 $ 0.29 $ 0.14
========= ======== ========= =========
Net income per common share -
Diluted $ 0.66 $ 0.44 $ 0.28 $ 0.13
========= ======== ========= =========
Weighted average common shares
outstanding - Basic 4,380 4,400 4,389 4,415
========= ======== ========= =========
Weighted average common shares
outstanding - Diluted 4,475 4,427 4,502 4,444
========= ======== ========= =========
Wayside Technology Group, Inc. Reports 2010 Third Quarter Results and Declares Quarterly Dividend
Revenue: $53.0 Million, up 50% Year-Over-Year; Income From Operations $2.0 Million, up 105% Year-Over-Year; $.16 Quarterly Dividend Declared, a 7% Increase
| Quelle: Wayside Technology Group
SHREWSBURY, NJ--(Marketwire - October 28, 2010) - Wayside Technology Group, Inc. (NASDAQ : WSTG ) today reported financial results for the third quarter ended
September 30, 2010. The results will be discussed in a conference call to
be held on Friday, October 29, 2010 at 10:00 AM Eastern time. The dial-in
telephone number is (866) 835 8907 and the pass code is "WSTG."
This conference call will be available via live webcast -- in listen-mode
only -- at www.earnings.com. A replay will also be available on the
company's website at www.waysidetechnology.com.
Cash and marketable securities amount to $14.2 million, representing 55% of
equity as of September 30, 2010.
Net sales for the third quarter of 2010 increased 50% or $17.7 million to
$53.0 million compared to $35.3 million for the same period in 2009. Total
sales for the third quarter of 2010 for our Lifeboat segment were $38.4
million compared to $23.8 million in the third quarter of 2009,
representing a 61% increase. Total sales for the third quarter of 2010 for
our Programmer's Paradise segment were $14.6 million compared to $11.5
million in the third quarter of 2009, representing a 27% increase.
"The third quarter of 2010 was a record quarter for us," said Simon F.
Nynens, Chairman and Chief Executive Officer. "Our continued high growth
rate shows that our customers are exceedingly satisfied with our service
model, as we continue to expand our offerings to our valued customers."
Sales for both segments showed strong growth. The increase in net sales for
the three and nine months ended September 30, 2010 compared to the same
periods in 2009, was mainly a result of our continued focus on the
expanding virtual infrastructure-centric business, the addition of several
key product lines, and the strengthening of our account penetration.
Gross Profit for the quarter ended September 30, 2010 was $5.1 million
compared to $3.7 million for the third quarter of 2009, a 39% increase.
Total gross profit for our Lifeboat segment was $3.4 million compared to
$2.3 million in the third quarter of 2009, representing a 47% increase.
This increase in gross profit was due to aggressive sales volume growth
within our Lifeboat segment. Total gross profit for our Programmer's
Paradise segment was $1.7 million compared to $1.4 million in the third
quarter of 2009, representing a 25% increase. This increase was primarily
due to the increased sales volume.
Total gross profit, as a percentage of net sales, for the third quarter of
2010 was 9.7%, compared to 10.5% in the third quarter of 2009.
The increase in gross profit dollars and the decrease in gross profit
margin as a percentage of net sales was primarily caused by the aggressive
sales growth within our Lifeboat segment, competitive pricing pressure in
both segments, and also in part by our having won several large bids based
on aggressive pricing, which we plan to continue to do.
Total selling, general, and administrative ("SG&A") expenses for the third
quarter of 2010 were $3.2 million, compared to $2.7 million in the third
quarter of 2009. This increase is mainly due to an increase in employee
related expenses (salaries, commissions, bonus accruals and benefits) of
$0.4 million.
On October 26, 2010, the Board of Directors declared a quarterly dividend
of $.16 per share of its common stock payable November 19, 2010 to
shareholders of record on November 9, 2010. This represents a 7% increase
in dividend, from $.15 per share to $.16 per share.
About Wayside Technology Group, Inc.
Wayside Technology Group, Inc. (NASDAQ : WSTG ) was founded in 1982 and is a
unified and integrated technology company providing products and solutions
for corporate resellers, VARs, and developers, as well as business,
government and educational entities. The company offers technology products
from software publishers and manufacturers such as Acronis, CA, DataCore,
Dell, Flexera Software (publishers of InstallShield), GFI, Hewlett Packard,
Infragistics, Intel Software, Microsoft, Mindjet, Quest Software,
SolarWinds, StorageCraft Technology, TechSmith, Veeam, Vizioncore, and
VMware.
Additional information can be found by visiting www.waysidetechnology.com.
The statements in this release concerning the Company's future prospects
are forward-looking statements that involve certain risks and
uncertainties. Such risks and uncertainties could cause actual results to
differ materially from those indicated by such forward-looking statements,
and include, without limitation, the continued acceptance of the Company's
distribution channel by vendors and customers, the timely availability and
acceptance of new products, product mix, market conditions, contribution of
key vendor relationships and support programs, as well as factors that
affect the software industry in general and other factors. The
forward-looking statements contained herein are also subject generally to
other risks and uncertainties that are described from time to time in our
filings with the Securities and Exchange Commission. Except as otherwise
required by law, the Company undertakes no obligation to update or revise
these forward-looking statements.