Wayside Technology Group, Inc. Reports First Quarter 2013 Results and Declares Quarterly Dividend
SHREWSBURY, NJ -- (Marketwired) -- 04/25/13 -- Wayside Technology Group, Inc. (NASDAQ: WSTG)
Revenue: $66.0 million Income from operations: $1.4 million Net income: $1.0 million Diluted earnings per share: $0.22 per share Dividend declared: $0.16 per share
Wayside Technology Group, Inc. (NASDAQ: WSTG) today reported financial results for the first quarter ended March 31, 2013. The results will be discussed in a conference call to be held on Friday, April 26, 2013 at 10:00 AM Eastern time. The dial-in telephone number is (866) 793-1341 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.
"I am pleased to report solid quarterly results as compared to Q1 2012's exceptional revenues and considering the persistent downward price competition in the distribution segment. Our Lifeboat Distribution segment delivered solid results as it continued to execute on its strategic plan. Our TechXtend segments revenues were down compared to an exceptionally strong Q1 last year, which benefited from a strong level of extended payment term sales transaction business in such prior period," said Simon F. Nynens, Chairman and Chief Executive Officer.
Cash and cash equivalents amounted to $13.6 million, representing 42% of equity as of March 31, 2013. Working capital amounted to $23.0 million, representing 72% of equity as of March 31, 2013.
Net sales for the first quarter ended March 31, 2013 decreased 1% or $0.9 million to $66.0 million, compared to $66.9 million for the same period in 2012. Total sales for the first quarter of 2013 for our Lifeboat Distribution segment were $53.9 million compared to $49.3 million in the first quarter of 2012, representing an increase of $4.6 million or 9%. Total sales for the first quarter of 2013 for our TechXtend segment were $12.1 million compared to $17.6 million in the first quarter of 2012, representing a decrease of $5.5 million or 31%.
The 9% 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 and the addition of several key product lines. The 31% decrease in net sales in the TechXtend segment was primarily due to a decrease in extended payment term sales transactions as compared to an exceptionally strong extended payment term sales in the first quarter ended March 31, 2012.
Gross Profit for the first quarter ended March 31, 2013 was $5.3 million, a 5% decrease as compared to $5.6 million for the first quarter of 2012. Gross profit for our Lifeboat segment in the first quarter of 2013 and 2012 was $3.8 million for each period. Although Lifeboat Distribution's net sales increased its gross profit remained flat due to a decrease in its gross profit margin. Gross profit for our TechXtend segment in the first quarter of 2013 was $1.5 million compared to $1.8 million for the first quarter of 2012, representing a 14% decrease. This decrease for the TechXtend segment was primarily due to the decreased sales volume, including a reduced level of extended payment term sales transactions in the first quarter of 2013. Gross profit margin (gross profit as a percentage of net sales) for the first quarter ended March 31, 2013 was 8.1% compared to 8.3% for the first quarter of 2012.
Total selling, general, and administrative ("SG&A") expenses for the first quarter of 2013 were $3.9 million compared to $4.0 million for the first quarter of 2012, representing a decrease of $0.1 million or 1.8%. This decrease is primarily the result of a decrease in commissions and bonus expense, which are based on gross profit, offset by an increase in salary and related expenses, due to increased headcount in sales, finance and operations to support business growth, in 2013 compared to 2012.
Net income and diluted earnings per share for each of the first quarters of 2013 and 2012 were $1.0 million and $0.22, respectively.
On April 24, 2013, the Board of Directors declared a quarterly dividend of $.16 per share of its common stock payable May 17, 2013 to shareholders of record on May 7, 2013.
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 Technologies, DataCore, Datawatch, Dell, Flexera Software, GFI, Hewlett Packard, Infragistics, Intel Software, Lenovo, Microsoft, Mindjet, Quest Software, SolarWinds, Sophos, StorageCraft Technology, TechSmith, Veeam, Vision Solutions 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.
- Tables Follow -
WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share amounts)
March 31, December 31,
2013 2012
------------ ------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 13,591 $ 9,835
Marketable securities - 4,411
Accounts receivable, net 47,970 61,388
Inventory - finished goods 1,629 1,717
Prepaid expenses and other current assets 1,265 1,281
Deferred income taxes 266 280
------------ ------------
Total current assets 64,721 78,912
Equipment and leasehold improvements, net 374 375
Accounts receivable long-term 8,263 11,851
Other assets 153 71
Deferred income taxes 215 236
------------ ------------
$ 73,726 $ 91,445
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $ 41,687 $ 59,265
Current portion - capital lease obligation 28 55
------------ ------------
Total current liabilities 41,715 59,320
Long term portion- capital lease obligation - -
------------ ------------
Total liabilities 41,715 59,320
------------ ------------
Commitments and contingencies
Stockholders' equity
Common stock, $.01 par value; 10,000,000
shares authorized, 5,284,500 shares issued,
and 4,739,358 and 4,740,873 shares
outstanding, respectively 53 53
Additional paid-in capital 27,822 27,712
Treasury stock, at cost, 545,142 and 543,627
shares, respectively (5,692) (5,373)
Retained earnings 9,586 9,316
Accumulated other comprehensive income 242 417
------------ ------------
Total stockholders' equity 32,011 32,125
------------ ------------
$ 73,726 $ 91,445
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WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands, except per share data)
Three months ended
March 31,
2013 2012
------------ ------------
(Unaudited)
Revenues
Lifeboat segment 53,869 49,301
TechXtend segment 12,111 17,606
------------ ------------
Total Revenue $ 65,980 $ 66,907
Cost of sales
Lifeboat segment 50,097 45,517
TechXtend segment 10,570 15,823
------------ ------------
Total Cost of sales 60,667 61,340
------------ ------------
Gross Profit 5,313 5,567
Operating expenses
Selling costs 1,994 1,972
Stock based compensation 271 231
Other general and administrative expenses 1,652 1,784
------------ ------------
Total Selling, general and administrative
expenses 3,917 3,987
------------ ------------
Income from operations 1,396 1,580
Interest, net 130 124
Foreign currency transaction gain 5 1
------------ ------------
Income before provision for income taxes 1,531 1,705
Provision for income taxes 511 676
------------ ------------
Net income $ 1,020 $ 1,029
============ ============
Income per common share - Basic $ 0.23 $ 0.23
============ ============
Income per common share - Diluted $ 0.22 $ 0.22
============ ============
Weighted average common shares outstanding -
Basic 4,477 4,427
============ ============
Weighted average common shares outstanding -
Diluted 4,602 4,612
============ ============
Source: Wayside Technology Group
Released April 25, 2013