SHREWSBURY, NJ--(Marketwired - Jul 25, 2013) - Wayside Technology Group, Inc. (
| Revenue: | $74.1 million |
| Income from operations: | $2.2 million |
| Net income: | $1.5 million |
| Diluted earnings per share: | $0.34 per share |
| Dividend declared: | $0.16 per share |
Wayside Technology Group, Inc. (
"I am pleased to report solid financial results. Overall, revenue increased 7% and net income increased 18% over the same period last year. In addition, our Q2 year-over-year growth on all key metrics -- including revenue, gross margin, income from operations and net income -- showed improvement compared to Q1's year-over-year growth," said Simon F. Nynens, Chairman and Chief Executive Officer.
Cash and cash equivalents amounted to $12.0 million, representing 37% of equity as of June 30, 2013. Working capital amounted to $22.7 million, representing 70% of equity as of June 30, 2013.
Net sales for the second quarter of 2013 increased 7% or $4.9 million to $74.1 million, compared to $69.2 million for the same period in 2012. Net sales for the second quarter of 2013 for our Lifeboat segment were $61.2 million, compared to $53.5 million in the second quarter of 2012, representing an increase of $7.7 million or 14%. Net sales for our TechXtend segment for the second quarter of 2013 were $12.9 million, compared to $15.6 million in the second quarter of 2012, representing a decrease of $2.7 million or 18%.
The 14% increase in net sales for the Lifeboat Distribution segment was mainly a result of our increased account penetration, our continued focus on the expanding virtual infrastructure-centric business and the addition of several key product lines. The 18% decrease in net sales in the TechXtend segment was primarily due to a decrease in extended payment terms sales transactions as compared to exceptionally strong levels of extended payment terms sales in the second quarter ended June 30, 2012.
Gross Profit for the second quarter ended June 30, 2013 increased 7% or $0.4 million to $6.0 million, compared to $5.6 million for the second quarter of 2012. Total gross profit for our Lifeboat segment was $4.5 million, compared to $3.8 million in the second quarter of 2012, representing a 17% increase. The increase in gross profit for the Lifeboat segment was due to higher sales volume in the current year. Total gross profit for our TechXtend segment was $1.5 million, compared to $1.7 million in the second quarter of 2012, representing a 17% decrease. The decrease in gross profit in the TechXtend segment was the result of the decreased sales volume, including a decrease in extended payment terms sales transactions. Gross profit margin (gross profit as a percentage of net sales) for the second quarter of 2013 and 2012 was 8.1% for each period.
Total selling, general, and administrative ("SG&A") expenses for the second quarter of 2013 were $3.8 million, compared to $3.6 million for the second quarter of 2012, representing an increase of $0.2 million or 7%. This increase is primarily the result of an increase in commissions and bonus for our Lifeboat segment (which are based on gross profit) and an increase in salary expense (from increased headcount in sales, finance and operations to support business growth) in 2013 compared to 2012, offset in part by a decrease in commissions and bonus for our TechXtend segment (which are based on gross profit). As a percentage of net sales, SG&A expenses for second quarter of 2013 and 2012 remained consistent at 5.1% for each period.
Net income and diluted earnings per share for the second quarter of 2013 were $1.5 million and $0.34, respectively, compared to $1.3 million and $0.28 in the prior year.
On July 24, 2013, the Board of Directors declared a quarterly dividend of $.16 per share of its common stock, payable August 16, 2013 to shareholders of record on August 6, 2013.
About Wayside Technology Group, Inc.
Wayside Technology Group, Inc. (
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.
-Tables Follow -
| WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| (Amounts in thousands, except share and per share amounts) | |||||||||
| June 30, 2013 | December 31, 2012 | ||||||||
| (unaudited) | |||||||||
| ASSETS | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 12,021 | $ | 9,835 | |||||
| Marketable securities | - | 4,411 | |||||||
| Accounts receivable, net | 53,454 | 61,388 | |||||||
| Inventory - finished goods | 1,747 | 1,717 | |||||||
| Prepaid expenses and other current assets | 1,518 | 1,281 | |||||||
| Deferred income taxes | 286 | 280 | |||||||
| Total current assets | 69,026 | 78,912 | |||||||
| Equipment and leasehold improvements, net | 372 | 375 | |||||||
| Accounts receivable long-term | 8,835 | 11,851 | |||||||
| Other assets | 153 | 71 | |||||||
| Deferred income taxes | 215 | 236 | |||||||
| $ | 78,601 | $ | 91,445 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities | |||||||||
| Accounts payable and accrued expenses | $ | 46,309 | $ | 59,265 | |||||
| Current portion- capital lease obligation | 14 | 55 | |||||||
| Total current liabilities | 46,323 | 59,320 | |||||||
| Commitments and contingencies | |||||||||
| Stockholders' equity | |||||||||
| Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares issued, and 4,696,553 and 4,740,873 shares outstanding, respectively | 53 | 53 | |||||||
| Additional paid-in capital | 28,040 | 27,712 | |||||||
| Treasury stock, at cost, 587,947 and 543,627 shares, respectively | (6,304 | ) | (5,373 | ) | |||||
| Retained earnings | 10,383 | 9,316 | |||||||
| Accumulated other comprehensive income | 106 | 417 | |||||||
| Total stockholders' equity | 32,278 | 32,125 | |||||||
| $ | 78,601 | $ | 91,445 | ||||||
| WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES | |||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||
| (In thousands, except per share data) | |||||||||||||
| Six months ended | Three months ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||
| (Unaudited ) | (Unaudited ) | ||||||||||||
| Revenues | |||||||||||||
| Lifeboat segment | $ | 115,078 | $ | 102,850 | $ | 61,209 | $ | 53,548 | |||||
| TechXtend segment (formerly Programmer's Paradise segment) | 24,997 | 33,226 | 12,886 | 15,621 | |||||||||
| Total Revenue | 140,075 | 136,076 | 74,095 | 69,169 | |||||||||
| Cost of sales | |||||||||||||
| Lifeboat segment | 106,794 | 95,221 | 56,698 | 49,704 | |||||||||
| TechXtend segment (formerly Programmer's Paradise segment) | 22,003 | 29,698 | 11,432 | 13,875 | |||||||||
| Total Cost of sales | 128,797 | 124,919 | 68,130 | 63,579 | |||||||||
| Gross Profit | 11,278 | 11,157 | 5,965 | 5,590 | |||||||||
| Operating expenses | |||||||||||||
| Selling costs | 4,004 | 3,919 | 2,010 | 1,947 | |||||||||
| Stock based compensation | 551 | 463 | 280 | 231 | |||||||||
| Other general and administrative expenses | 3,176 | 3,156 | 1,524 | 1,373 | |||||||||
| Total Selling, general and administrative expenses | 7,731 | 7,538 | 3,814 | 3,551 | |||||||||
| Income from operations | 3,547 | 3,619 | 2,151 | 2,039 | |||||||||
| Interest income, net | 276 | 254 | 146 | 130 | |||||||||
| Foreign currency transaction gain | 21 | 1 | 16 | - | |||||||||
| Income before income tax provision | 3,844 | 3,874 | 2,313 | 2,169 | |||||||||
| Provision for income taxes | 1,284 | 1,541 | 773 | 865 | |||||||||
| Net income | $ | 2,560 | $ | 2,333 | $ | 1,540 | $ | 1,304 | |||||
| Net income per common share - Basic | $ | 0.57 | $ | 0.52 | $ | 0.35 | $ | 0.29 | |||||
| Net income per common share - Diluted | $ | 0.56 | $ | 0.50 | $ | 0.34 | $ | 0.28 | |||||
| Weighted average common shares outstanding - Basic | 4,464 | 4,449 | 4,451 | 4,471 | |||||||||
| Weighted average common shares outstanding - Diluted | 4,578 | 4,632 | 4,557 | 4,656 | |||||||||