Wayside Technology Group, Inc. Reports 2009 Second Quarter Results and Declares Quarterly Dividend
Net Income $0.8 Million, $.18 per Share; $.15 Dividend Declared
SHREWSBURY, NJ -- (MARKET WIRE) -- 07/30/09 -- Wayside Technology Group, Inc. (NASDAQ: WSTG) today reported financial results for the second quarter ended June 30, 2009. The results will be discussed in a conference call to be held on Friday, July 31, 2009 at 10:00 AM Eastern time. The dial-in telephone number is (866) 238-0637 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 be available on our website at www.waysidetechnology.com.
Total net sales for the second quarter of 2009 amounted to $37.0 million, compared to $48.1 million for the same period in 2008. Sales for the second quarter of 2009 for our Lifeboat segment were $25.0 million compared to $35.0 million in the second quarter of 2008, representing a 28% decrease. Excluding VMware, Lifeboat's sales increased by $1.7 million, or 7% compared to the second quarter of 2008. Sales for the second quarter of 2009 for our Programmer's Paradise segment were $12.0 million, compared to $13.1 million in the second quarter of 2008, representing an 8% decrease.
Total gross profit for the second quarter of 2009 amounted to $4.1 million, compared to $4.3 million for the same period in 2008. Gross profit for the second quarter of 2009 for our Lifeboat segment was $2.5 million, compared to $2.8 million in the second quarter of 2008, representing a 13% decrease. This decrease in gross profit was due to the lower sales volume. Gross profit for the second quarter of 2009 for our Programmer's Paradise segment was $1.6 million, compared to $1.5 million in the second quarter of 2008, representing a 6% increase. This increase was primarily due to a shift in mix of order size. We sold more of our smaller, specialized software lines, which typically carry higher margins. As a result, gross profit increased 6% as compared to last year, despite the 8% decrease in revenue as compared to last year.
Total gross profit, as a percentage of net sales, for the quarter ending June 30, 2009, was 11%, compared to 8.9% in the second quarter of 2008.
Cash and marketable securities amount to $16.5 million, representing 68% of our equity as of June 30, 2009. We have no debt.
"During the second quarter of 2009 we delivered solid second quarter results despite the continued recessionary business climate impacting every segment of the economy," said Simon F. Nynens, Chairman and Chief Executive Officer.
Total selling, general, and administrative ("SG&A") expenses for the second quarter of 2009 were $2.9 million compared to $3.1 million in the second quarter of 2008.
Net income for the second quarter of 2009 amounted to $790,000 or 2.1% of net sales as compared to $823,000 or 1.7% for the same period in 2008.
On July 28, 2009, the Board of Directors declared a quarterly dividend of $.15 per share of its common stock payable August 20, 2009 to shareholders of record on August 13, 2009.
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 Microsoft, CA, IBM, VMware, Quest Software, Embarcadero Technologies, SAP Business Objects, Intel, Compuware, Infragistics, ComponentOne, Acresso Software, and Adobe.
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 include the continued acceptance of the Company's distribution channel by vendors and customers, the timely availability and acceptance of new products, and contribution of key vendor relationships and support programs. 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.
WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
June 30, December 31,
2009 2008
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 7,462 $ 9,349
Marketable securities 8,986 9,367
Accounts receivable, net 22,783 16,940
Inventory - finished goods 937 1,058
Prepaid expenses and other current assets 941 776
Deferred income taxes 661 712
------------ ------------
Total current assets 41,770 38,202
Equipment and leasehold improvements, net 541 549
Accounts Receivable Long-Term 6,166 7,860
Other assets 40 66
Deferred income taxes 668 808
------------ ------------
Total assets $ 49,185 $ 47,485
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses 24,839 23,396
------------ ------------
Total current liabilities 24,839 23,396
Other liabilities 78 205
------------ ------------
Total liabilities 24,917 23,601
Commitments and contingencies
Stockholders' equity
Common stock, $.01 par value; 10,000,000
shares authorized, 5,284,500 shares
issued, and 4,774,362 and 4,643,662 shares
outstanding, respectively 53 53
Additional paid-in capital 25,078 26,636
Treasury stock, at cost, 510,138 shares and
640,838 shares, respectively (2,905) (3,383)
Retained earnings 1,935 567
Accumulated other comprehensive income 107 11
------------ ------------
Total stockholders' equity 24,268 23,884
------------ ------------
Total liabilities and stockholders' equity $ 49,185 $ 47,485
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WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME
(Unaudited)
(In thousands, except per share data)
Six months ended Three months ended
June 30, June 30,
2009 2008 2009 2008
-------- -------- --------- --------
Net Sales $ 68,782 $ 88,602 $ 37,032 $ 48,096
Cost of sales 61,234 80,559 32,951 43,798
-------- -------- --------- --------
Gross profit 7,548 8,043 4,081 4,298
Selling, general and administrative
expenses 5,562 6,016 2,911 3,074
-------- -------- --------- --------
Income from operations 1,986 2,027 1,170 1,224
Interest income, net 274 376 126 142
Realized foreign exchange gain
(loss) (1) 7 - 4
-------- -------- --------- --------
Income before income tax provision 2,259 2,410 1,296 1,370
Provision for income taxes 891 958 506 547
-------- -------- --------- --------
Net income $ 1,368 $ 1,452 $ 790 $ 823
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Net income per common share - Basic $ 0.31 $ 0.33 $ 0.18 $ 0.19
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Net income per common share -
Diluted $ 0.31 $ 0.32 $ 0.18 $ 0.18
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Weighted average common shares
outstanding - Basic 4,392 4,429 4,400 4,417
======== ======== ========= ========
Weighted average common shares
outstanding - Diluted 4,419 4,519 4,426 4,505
======== ======== ========= ========
Reconciliation to comprehensive
income:
Net income $ 1,368 $ 1,452 $ 790 $ 823
Other comprehensive income
(loss), net of tax:
Unrealized gain (loss) on
marketable securities (27) (14) 6 (6)
Foreign currency translation
adjustments 123 (71) 170 16
-------- -------- --------- --------
Total comprehensive income $ 1,464 $ 1,367 $ 966 $ 833
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Released July 30, 2009