Exhibit 99.1

 

GRAPHIC

 

 

Company Contact:
Kevin Scull
Wayside Technology Group, Inc.
Vice President and Chief Accounting Officer
(732) 389-0932
kevin.scull@waysidetechnology.com

 

WAYSIDE TECHNOLOGY GROUP, INC. REPORTS 2011 FIRST QUARTER RESULTS AND
DE
CLARES QUARTERLY DIVIDEND

 

-                    1st quarter revenue: $51.5 million, up 28% year-over-year

 

-                    Income from operations $1.3 million, up 38% year-over-year

 

-                    $.16 quarterly dividend declared

 

SHREWSBURY, NJ, April 28, 2011 — Wayside Technology Group, Inc. (NASDAQ: WSTG) today reported financial results for the first quarter ended March 31, 2011. The results will be discussed in a conference call to be held on Friday, April 29, 2011 at 10:00 AM Eastern time. The dial-in telephone number is (866) 804-3546 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.

 

Cash and marketable securities amounted to $15.4 million, representing 58% of equity as of March 31, 2011.

 

Net sales for the first quarter of 2011 increased 28% or $11.1 million to $51.5 million compared to $40.4 million for the same period in 2010. Total sales for the first quarter of 2011 for our Lifeboat segment were $39.5 million compared to $29.1 million in the first quarter of 2010, representing an increase of $10.4 million or 36%. Total sales for the first quarter of 2011 for our Programmer’s Paradise segment were $12.0 million compared to $11.2 million in the first quarter of 2010, representing a 7% increase.

 

“The first quarter of 2011 was a great quarter for us,” said Simon F. Nynens, Chairman and Chief Executive Officer. “Our continued high growth rate shows that software publishers and our customers are exceedingly satisfied with our service model, as we continue to expand our offerings. We announced on April 6, 2011 that Mike Faith joined our board of directors. We all look forward to learning from Mike’s insights and experience in service excellence and marketing.”

 

Sales from our Lifeboat segment showed strong growth. The 36% increase in net sales in the first quarter of 2011 compared to 2010 was mainly a result of our continued focus on the expanding virtual infrastructure-centric business, the addition of several key product lines, and the strengthening of our account penetration.

 

Gross Profit for the quarter ending March 31, 2011 was $4.8 million compared to $4.0 million in the first quarter of 2010, a 22% increase. Total gross profit for our Lifeboat segment was $3.4 million compared to $2.7 million in the first quarter of 2010, representing a 29% increase. This increase in gross profit was due to aggressive sales volume growth within our Lifeboat segment. Total gross profit for our Programmer’s Paradise segment was $1.4 million compared to $1.3 million in the first quarter of 2010, representing a 7% increase. This increase was primarily due to the higher sales volume. Vendor rebates

 



 

and discounts for the quarter ended March 31, 2011 amounted to $0.5 million compared to $0.3 million for the first quarter of 2010, mainly a result of our aggressive sales growth.

 

Total gross profit, as a percentage of net sales, for the first quarter of 2011 was 9.4%, compared to 9.8% in the first quarter of 2010.

 

The increase in gross profit dollars and the decrease in gross profit margin as a percentage of net sales was primarily caused by the aggressive sales growth within our Lifeboat segment, competitive pricing pressure in both segments, and also in part by our having won several large bids based on aggressive pricing, which we plan to continue to do.

 

Total selling, general, and administrative (“SG&A”) expenses for the first quarter of 2011 were $3.5 million compared to $3.0 million in the first quarter of 2010, which was mainly the result of an increase in employee related expenses (salaries, commissions, bonus and benefits) of $0.4 million and an increase in sales and marketing expenses of $0.1 million. As a percentage of net sales, SG&A expenses for the first quarter of 2011 were 6.9% compared to 7.5% in the first quarter of 2010.

 

On April 26, 2011, the Board of Directors declared a quarterly dividend of $.16 per share of its common stock payable May 19, 2011 to shareholders of record on May 9, 2011.

 

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, DataCore, Dell, Flexera Software (publishers of InstallShield), GFI, Hewlett Packard, Infragistics, Intel Software, Microsoft, Mindjet, Quest Software, SolarWinds, StorageCraft Technology, TechSmith, Veeam, 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

(In thousands, except share and per share amounts)

 

 

 

March 31,
2011

 

December 31,
2010

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

$

13,089

 

$

10,955

 

Marketable securities

 

2,278

 

4,528

 

Accounts receivable, net

 

34,699

 

42,486

 

Inventory - finished goods

 

1,294

 

1,164

 

Prepaid expenses and other current assets

 

1,290

 

1,250

 

Deferred income taxes

 

494

 

516

 

Total current assets

 

53,144

 

60,899

 

 

 

 

 

 

 

Equipment and leasehold improvements, net

 

586

 

545

 

Accounts receivable long-term

 

6,513

 

6,866

 

Other assets

 

36

 

37

 

Deferred income taxes

 

336

 

336

 

 

 

 

 

 

 

Total assets

 

$

60,615

 

$

68,683

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable and accrued expenses

 

$

33,729

 

$

41,791

 

Current portion- capital lease obligation

 

75

 

75

 

Total current liabilities

 

33,804

 

41,866

 

 

 

 

 

 

 

Long term portion- capital lease obligation

 

117

 

138

 

Total liabilities

 

33,921

 

42,004

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares issued, and 4,754,952 and 4,770,241 shares outstanding, respectively

 

53

 

53

 

Additional paid-in capital

 

25,771

 

25,473

 

Treasury stock, at cost, 529,548 and 514,259 shares, respectively

 

(4,067

)

(3,570

)

Retained earnings

 

4,357

 

4,267

 

Accumulated other comprehensive income

 

580

 

456

 

Total stockholders’ equity

 

26,694

 

26,679

 

Total liabilities and stockholders’ equity

 

$

60,615

 

$

68,683

 

 



 

WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except per share data)

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2011

 

2010

 

 

 

(Unaudited)

 

Revenues

 

 

 

 

 

Lifeboat segment

 

39,551

 

29,117

 

Programmer’s Paradise segment

 

11,998

 

11,241

 

Total Revenue

 

$

51,549

 

$

40,358

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

 

Lifeboat segment

 

36,137

 

26,472

 

Programmer’s Paradise segment

 

10,587

 

9,918

 

Total Cost of sales

 

46,724

 

36,390

 

 

 

 

 

 

 

Gross Profit

 

4,825

 

3,968

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

Selling costs

 

1,837

 

1,491

 

Stock based compensation

 

289

 

301

 

Other general and administrative expenses

 

1,404

 

1,238

 

Total Selling, general and administrative expenses

 

3,530

 

3,030

 

 

 

 

 

 

 

Income from operations

 

1,295

 

938

 

 

 

 

 

 

 

Interest income, net

 

86

 

108

 

Realized foreign exchange gain

 

 

1

 

Income before income tax provision

 

1,381

 

1,047

 

Provision for income taxes

 

538

 

424

 

 

 

 

 

 

 

Net income

 

$

843

 

$

623

 

 

 

 

 

 

 

Net income per common share - Basic

 

$

0.19

 

$

0.14

 

Net income per common share - Diluted

 

$

0.18

 

$

0.14

 

 

 

 

 

 

 

Weighted average common shares outstanding - Basic

 

4,414

 

4,371

 

Weighted average common shares outstanding - Diluted

 

4,651

 

4,425