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Company Contact: |
PROGRAMMER'S PARADISE, INC. REPORTS 2005 FOURTH QUARTER
FINANCIAL RESULTS
FOURTH QUARTER SALES INCREASE 35% INCOME FROM OPERATIONS
INCREASES 80%
SHREWSBURY, NJ, January 26, 2006 - Programmer's Paradise, Inc. (NASDAQ: PROG) today reported financial results for the fourth quarter ended December 31, 2005. The results will be discussed in a conference call to be held on Friday, January 27, 2006 at 10:00 AM Eastern time. The dial-in telephone number is (866) 206-6154 and the pass code is PROG.
Net sales for the quarter ending December 31, 2005 were $42.0 million compared with $31.0 million in the fourth quarter of 2004, a 35% increase. "This solid performance is the result of improved productivity of our account executive team at Programmer's Paradise, and increased account penetration in our Lifeboat Distribution group," said William H. Willett, Chairman.
Income from operations for the quarter ending December 31, 2005 was $1.1 million compared with $0.6 million in the fourth quarter of 2004 or an increase of 80%.
Net sales in 2005 increased 33% or $34.1 million to $137.7 million compared to $103.6 million in 2004. Income from operations for 2005 was $2.8 million compared to $2.2 million in 2004 or an increase of $0.6 million.
Programmer's Paradise, Inc. (NASDAQ: PROG) was founded in 1982 and is an award-winning marketer of technical software and hardware. When it comes to software, Programmer's Paradise has it all. Programmer's Paradise is one of the most recognizable and memorable brands in developer marketing. Our experienced account executives are key in our strategy. We offer our customers customized extranets, consultancy services, and flexible financing, as well as same day shipping.
Additional information can be found by visiting www.programmersparadise.com.
Contact Programmer's Paradise, Inc. via Simon Nynens, President & CEO of Programmer's Paradise, Inc. at (732) 389-8950 or simon.nynens@programmers.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.
- Tables Follow -
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PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) |
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December 31, |
December 31, |
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(Unaudited) |
(Audited) |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
$7,369 |
$4,888 |
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Marketable securities |
7,884 |
6,595 |
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Accounts receivable, net |
21,185 |
14,173 |
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Inventory - finished goods |
1,956 |
1,423 |
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Prepaid expenses and other current assets |
688 |
673 |
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Deferred income taxes, current |
1,783 |
1,423 |
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Total current assets |
40,865 |
29,175 |
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Equipment and leasehold improvements, net |
434 |
303 |
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Other assets |
453 |
581 |
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Deferred income taxes, net of current |
2,516 |
2,855 |
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Total assets |
$44,268 |
$32,914 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities |
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Accounts payable and accrued expenses |
$25,751 |
$15,994 |
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Dividend payable |
519 |
425 |
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Total current liabilities |
26,270 |
16,419 |
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Commitments and contingencies |
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Stockholders' equity |
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Common stock, $.01 par value; authorized, |
53 |
53 |
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Additional paid-in capital |
30,948 |
32,642 |
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Treasury stock, at cost, 1,289,665 shares and 1,418,090 shares, respectively |
(3,620) |
(4,130) |
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Accumulated deficit |
(9,570) |
(12,223) |
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Accumulated other comprehensive income |
187 |
153 |
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Total stockholders' equity |
17,998 |
16,495 |
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Total liabilities and stockholders' equity |
$44,268 |
$32,914 |
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PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME
(Unaudited)
(In thousands, except per share data)
| Three months ended | ||||||||
| December 31, | December 31, | |||||||
| 2005 | 2004 | 2005 | 2004 | |||||
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Net sales |
$137,655 |
$103,582 |
$41,962 |
$31,022 |
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Cost of sales |
122,685 |
91,243 |
37,669 |
27,566 |
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Gross profit |
14,970 |
12,339 |
4,293 |
3,456 |
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Selling, general and administrative expenses |
12,203 |
10,173 |
3,139 |
2,814 |
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Income from operations |
2,767 |
2,166 |
1,154 |
642 |
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Interest income, net |
313 |
156 |
94 |
69 |
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Realized foreign exchange gain (loss) |
(13) |
(44) |
2 |
(48) |
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Income before income tax provision |
3,067 |
2,278 |
1,250 |
663 |
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Provision (benefit) for income taxes (Note 1) |
414 |
(4,044) |
(314) |
(4,148) |
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Net income |
$2,653 |
$6,322 |
$1,564 |
$4,811 |
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Net income per common share - Basic |
$0.67 |
$1.65 |
$0.39 |
$1.25 |
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Net income per common share - Diluted |
$0.61 |
$1.51 |
$0.36 |
$1.10 |
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Weighted average common shares outstanding-Basic |
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Weighted average common shares outstanding-Diluted |
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Reconciliation to comprehensive income: |
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Net income |
$2,653 |
$6,322 |
$1,564 |
$4,811 |
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Other comprehensive income(loss), net of tax: |
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Unrealized gain (loss) on marketable securities |
12 |
(22) |
(2) |
- |
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Foreign currency translation adjustments |
22 |
97 |
- |
71 |
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Total comprehensive income |
$2,687 |
$6,397 |
$1,562 |
$4,882 |
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Note 1 - For the year ended December 31, 2004, the Company recorded a net deferred tax benefit in the amount of $4.1 million related to a reversal of a deferred tax asset valuation allowance. The Company believed at that time that uncertainty still existed regarding the realizability of certain deferred tax assets and, accordingly, established a $0.9 million valuation allowance. As a result of the Company's strong performance in 2005, the $0.9 million deferred income tax valuation allowance was eliminated by reducing the income tax provision for 2005.