SHREWSBURY, NJ--(Marketwired - Oct 30, 2014) - Wayside Technology Group, Inc. (
| Q3 2014: | |||
| Revenue: | $ | 90.5 million | |
| Income from operations: | $ | 1.9 million | |
| Net income: | $ | 1.4 million | |
| Diluted earnings per share: | $ | 0.29 per share | |
Dividend declared - $0.17 per share
Wayside Technology Group, Inc. (
"I am pleased to report solid financial results for Q3 2014. Overall, revenue increased 28% to a record $90.5 million and income from operations increased 6% over the same period last year," said Simon F. Nynens, Chairman and Chief Executive Officer.
Cash and long term receivables amounted to $26.4 million, representing 68% of equity as of September 30, 2014. Working capital amounted to $27.3 million, representing 70% of equity as of September 30, 2014.
Net sales for the third quarter ended September 30, 2014 increased 28% or $20.0 million to $90.5 million compared to $70.5 million for the same period in 2013. Total sales for the third quarter of 2014 for our Lifeboat Distribution segment were $77.4 million compared to $56.9 million in the third quarter of 2014, representing an increase of $20.5 million or 36%. Total sales for the third quarter of 2014 for our TechXtend segment were $13.1 million compared to $13.6 million in the third quarter of 2013, representing a decrease of $0.5 million or 4%.
The 36% increase in net sales for the Lifeboat Distribution segment was mainly a result of the strengthening of our account penetration, our continued focus on the expanding virtual infrastructure-centric business, product mix and the addition of several key product lines. The 4% decrease in net sales in the TechXtend segment was primarily due to a decrease in extended payment terms sales transactions as compared to the same period in 2013.
Gross Profit for the third quarter ended September 30, 2014 was $6.2 million, a 17% increase as compared to $5.3 million for the third quarter of 2013. Gross profit for our Lifeboat segment in the third quarter of 2014 was $4.7 million compared to $3.8 million for the third quarter of 2013, representing a 23% increase. Gross profit for our TechXtend segment was essentially flat at $1.4 million in the third quarter of 2014 and 2013.
Gross profit margin (gross profit as a percentage of net sales) for the third quarter ended September 30, 2014 was 6.8% compared to 7.5% for the third quarter of 2013. Gross profit margin for the nine months ended September 30, 2014 was 7.2% compared to 7.9% in the same period in 2013. Gross profit margin for our Lifeboat segment for the third quarter of 2014 was 6.1% compared to 6.8% for the third quarter of 2013. The decrease in gross profit margin for the Lifeboat Distribution segment was primarily caused by competitive pricing pressures and product mix. Gross profit margin for our TechXtend segment for the third quarter of 2014 was 10.9% compared to 10.4% for the third quarter of 2013, due primarily to a decline in extended payment terms sales transactions in the third quarter of 2014 as compared to the same period in 2013.
Total selling, general, and administrative ("SG&A") expenses for the third quarter of 2014 were $4.3 million compared to $3.5 million for the third quarter of 2013. This increase is primarily the result of an increase in employee and employee related expenses (salaries, commissions, bonus accruals, benefits and severance expenses of $0.3 million) and occupancy expenses in 2014 compared to 2013.
For the three months ended September 30, 2014, the Company recorded a provision for income taxes of $0.6 million or 31.6% of income, compared to $0.6 million or 30.5% of income for the same period in
2013.
Net income and diluted earnings per share for the third quarter of 2014 were $1.4 million and $0.29, respectively, compared to $1.3 million and $0.29, respectively, for the third quarter of 2013.
On October 29, 2014, the Board of Directors declared a quarterly dividend of $.17 per share of its common stock payable November 17, 2014 to shareholders of record on November 10, 2014.
In light of the continued growth of the business and the important strategic determinations undertaken by the Board of Directors, on October 29, 2014, the Board, recognizing that the Company's Chairman, President and Chief Executive Officer roles are unified and filled by Simon Nynens, decided to name a lead director from among its independent directors and to clearly define the lead director's role and responsibilities. The Board named F. Duffield Meyercord as its lead director. The Board believes that this action is consistent with best corporate practices, enhancing both transparency of Board actions and Board independence.
About Wayside Technology Group, Inc.
Wayside Technology Group, Inc. (
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.
- Tables Follow -
| WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| (Amounts in thousands, except share and per share amounts) | |||||||||
| September 30, 2014 | December 31, 2013 | ||||||||
| (unaudited) | |||||||||
| ASSETS | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 15,606 | $ | 19,609 | |||||
| Accounts receivable, net | 60,721 | 60,796 | |||||||
| Inventory, net | 1,414 | 1,315 | |||||||
| Prepaid expenses and other current assets | 845 | 2,117 | |||||||
| Deferred income taxes | 270 | 218 | |||||||
| Total current assets | 78,856 | 84,055 | |||||||
| Equipment and leasehold improvements, net | 355 | 324 | |||||||
| Accounts receivable long-term | 10,834 | 10,006 | |||||||
| Other assets | 163 | 159 | |||||||
| Deferred income taxes | 216 | 216 | |||||||
| Total assets | $ | 90,424 | $ | 94,760 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities | |||||||||
| Accounts payable and accrued expenses | $ | 51,621 | $ | 60,039 | |||||
| Total current liabilities | 51,621 | 60,039 | |||||||
| Commitments and contingencies | |||||||||
| Stockholders' equity | |||||||||
| Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares | |||||||||
| issued, and 4,881,523 and 4,653,293 shares outstanding, respectively | 53 | 53 | |||||||
| Additional paid-in capital | 30,716 | 28,791 | |||||||
| Treasury stock, at cost, 402,977 and 631,207 shares, respectively | (6,007 | ) | (7,017 | ) | |||||
| Retained earnings | 14,199 | 12,695 | |||||||
| Accumulated other comprehensive (loss) income | (158 | ) | 199 | ||||||
| Total stockholders' equity | 38,803 | 34,721 | |||||||
| Total liabilities and stockholders' equity | $ | 90,424 | $ | 94,760 | |||||
| WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||
| (Amounts in thousands, except per share data) | ||||||||||||||||
| Nine months ended | Three months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Revenues | ||||||||||||||||
| Lifeboat segment | $ | 206,655 | $ | 171,949 | $ | 77,416 | $ | 56,871 | ||||||||
| TechXtend segment | 39,980 | 38,588 | 13,089 | 13,591 | ||||||||||||
| Total Revenue | 246,635 | 210,537 | 90,505 | 70,462 | ||||||||||||
| Cost of sales | ||||||||||||||||
| Lifeboat segment | 193,180 | 159,820 | 72,670 | 53,025 | ||||||||||||
| TechXtend segment | 35,602 | 34,174 | 11,659 | 12,172 | ||||||||||||
| Total Cost of sales | 228,782 | 193,994 | 84,329 | 65,197 | ||||||||||||
| Gross Profit | ||||||||||||||||
| Lifeboat segment | 13,475 | 12,129 | 4,746 | 3,846 | ||||||||||||
| TechXtend segment | 4,378 | 4,414 | 1,430 | 1,419 | ||||||||||||
| Total Gross Profit | 17,853 | 16,543 | 6,176 | 5,265 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling costs | 6,453 | 5,835 | 2,379 | 1,830 | ||||||||||||
| Share- based compensation | 853 | 830 | 278 | 278 | ||||||||||||
| Other general and administrative expenses | 4,987 | 4,546 | 1,634 | 1,372 | ||||||||||||
| Total Selling, general and administrative expenses | 12,293 | 11,211 | 4,291 | 3,480 | ||||||||||||
| Income from operations | 5,560 | 5,332 | 1,885 | 1,785 | ||||||||||||
| Interest, net | 375 | 416 | 121 | 140 | ||||||||||||
| Foreign currency transaction (loss) gain | (8 | ) | 10 | (4 | ) | (11 | ) | |||||||||
| Income before provision for income taxes | 5,927 | 5,758 | 2,002 | 1,914 | ||||||||||||
| Provision for income taxes | 2,016 | 1,868 | 632 | 584 | ||||||||||||
| Net income | $ | 3,911 | $ | 3,890 | $ | 1,370 | $ | 1,330 | ||||||||
| Income per common share - Basic | $ | 0.84 | $ | 0.87 | $ | 0.29 | $ | 0.30 | ||||||||
| Income per common share - Diluted | $ | 0.83 | $ | 0.85 | $ | 0.29 | $ | 0.29 | ||||||||
| Weighted average common shares outstanding - Basic | 4,639 | 4,457 | 4,716 | 4,442 | ||||||||||||
| Weighted average common shares outstanding - Diluted | 4,685 | 4,568 | 4,736 | 4,551 | ||||||||||||