Exhibit 99.1

 

Company Contact:
Tom Flaherty, Chief Financial Officer
Wayside Technology Group, Inc.
(732) 389-0932 tom.flaherty@waysidetechnology.com

 

WAYSIDE TECHNOLOGY GROUP, INC. REPORTS SECOND QUARTER 2013 RESULTS

AND DECLARES QUARTERLY DIVIDEND

 

Revenue:

$74.1 million

Income from operations:

$2.2 million

Net income:

$1.5 million

Diluted earnings per share:

$0.34 per share

Dividend declared:

$0.16 per share

 

SHREWSBURY, NJ, July 25, 2013 — Wayside Technology Group, Inc. (NASDAQ: WSTG) today reported financial results for the second quarter ended June 30, 2013. The results will be discussed in a conference call to be held on July 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 webcast by NASDAQ OMX and can be accessed at Wayside Technology’s Web site at www.waysidetechnology.com/earnings-call.

 

“I am pleased to report solid financial results. Overall, revenue increased 7% and net income increased 18% over the same period last year. In addition, our Q2 year-over-year growth on all key metrics — including revenue, gross margin, income from operations and net income — showed improvement compared to Q1’s year-over-year growth.” said Simon F. Nynens, Chairman and Chief Executive Officer.

 

Cash and cash equivalents amounted to $12.0 million, representing 37% of equity as of June 30, 2013. Working capital amounted to $22.7 million, representing 70% of equity as of June 30, 2013.

 

Net sales for the second quarter of 2013 increased 7% or $4.9 million to $74.1 million, compared to $69.2 million for the same period in 2012. Net sales for the second quarter of 2013 for our Lifeboat segment were $61.2 million, compared to $53.5 million in the second quarter of 2012, representing an increase of $7.7 million or 14%. Net sales for our TechXtend segment for the second quarter of 2013 were $12.9 million, compared to $15.6 million in the second quarter of 2012, representing a decrease of $2.7 million or 18%.

 

The 14% increase in net sales for the Lifeboat Distribution segment was mainly a result of our increased account penetration, our continued focus on the expanding virtual infrastructure-centric business and the addition of several key product lines. The 18% decrease in net sales in the TechXtend segment was primarily due to a decrease in extended payment terms sales transactions as compared to exceptionally strong levels of extended payment terms sales in the second quarter ended June 30, 2012.

 

Gross Profit for the second quarter ended June 30, 2013 increased 7% or $0.4 million to $6.0 million, compared to $5.6 million for the second quarter of 2012. Total gross profit for our Lifeboat segment was $4.5 million, compared to $3.8 million in the second quarter of 2012, representing a 17% increase. The increase in gross profit for the Lifeboat segment was due to higher sales volume in the current year. Total gross profit for our TechXtend segment was $1.5 million, compared to $1.7 million in the second quarter of 2012, representing a 17% decrease. The decrease in gross profit in the TechXtend segment was the result of the decreased sales volume, including a decrease in extended payment terms sales transactions.  Gross profit margin (gross profit as a percentage of net sales) for the second quarter of 2013 and 2012 was 8.1% for each period.

 



 

Total selling, general, and administrative (“SG&A”) expenses for the second quarter of 2013 were $3.8 million, compared to $3.6 million for the second quarter of 2012, representing an increase of $0.2 million or 7%. This increase is primarily the result of an increase in commissions and bonus for our Lifeboat segment (which are based on gross profit) and an increase in salary expense (from increased headcount in sales, finance and operations to support business growth) in 2013 compared to 2012, offset in part by a decrease in commissions and bonus for our TechXtend segment (which are based on gross profit). As a percentage of net sales, SG&A expenses for second quarter of 2013 and 2012 remained consistent at 5.1% for each period.

 

Net income and diluted earnings per share for the second quarter of 2013 were $1.5 million and $0.34, respectively, compared to $1.3 million and $0.28 in the prior year.

 

On July 24, 2013, the Board of Directors declared a quarterly dividend of $.16 per share of its common stock, payable August 16, 2013 to shareholders of record on August 6, 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 including Acronis, Bluebeam Software, CA Technologies, DataCore, Datawatch, Dell/Dell Software, Flexera Software, GFI, Hewlett Packard, Infragistics, Intel Software, Lenovo, Microsoft, Mindjet, SAP/Sybase, SolarWinds, Sophos, StorageCraft Technology, TechSmith, Telerik, Veeam Software, 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)

 

 

June 30,
2013

 

December 31,
2012

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

$

12,021

 

$

9,835

 

Marketable securities

 

 

4,411

 

Accounts receivable, net

 

53,454

 

61,388

 

Inventory - finished goods

 

1,747

 

1,717

 

Prepaid expenses and other current assets

 

1,518

 

1,281

 

Deferred income taxes

 

286

 

280

 

Total current assets

 

69,026

 

78,912

 

 

 

 

 

 

 

Equipment and leasehold improvements, net

 

372

 

375

 

Accounts receivable long-term

 

8,835

 

11,851

 

Other assets

 

153

 

71

 

Deferred income taxes

 

215

 

236

 

 

 

 

 

 

 

 

 

$

78,601

 

$

91,445

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable and accrued expenses

 

$

46,309

 

$

59,265

 

Current portion- capital lease obligation

 

14

 

55

 

Total current liabilities

 

46,323

 

59,320

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares issued, and 4,696,553 and 4,740,873 shares outstanding, respectively

 

53

 

53

 

Additional paid-in capital

 

28,040

 

27,712

 

Treasury stock, at cost, 587,947 and 543,627 shares, respectively

 

(6,304

)

(5,373

)

Retained earnings

 

10,383

 

9,316

 

Accumulated other comprehensive income

 

106

 

417

 

Total stockholders’ equity

 

32,278

 

32,125

 

 

 

$

78,601

 

$

91,445

 

 



 

WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS 
(In thousands, except per share data)

 

 

Six months ended

 

Three months ended

 

 

 

June 30,

 

June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

(Unaudited)

 

(Unaudited)

 

Revenues

 

 

 

 

 

 

 

 

 

Lifeboat segment

 

$

115,078

 

$

102,850

 

$

61,209

 

$

53,548

 

TechXtend segment

 

24,997

 

33,226

 

12,886

 

15,621

 

Total Revenue

 

140,075

 

136,076

 

74,095

 

69,169

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

 

 

 

 

 

Lifeboat segment

 

106,794

 

95,221

 

56,698

 

49,704

 

TechXtend segment

 

22,003

 

29,698

 

11,432

 

13,875

 

Total Cost of sales

 

128,797

 

124,919

 

68,130

 

63,579

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

11,278

 

11,157

 

5,965

 

5,590

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

Selling costs

 

4,004

 

3,919

 

2,010

 

1,947

 

Stock based compensation

 

551

 

463

 

280

 

231

 

Other general and administrative expenses

 

3,176

 

3,156

 

1,524

 

1,373

 

Total Selling, general and administrative expenses

 

7,731

 

7,538

 

3,814

 

3,551

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

3,547

 

3,619

 

2,151

 

2,039

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

276

 

254

 

146

 

130

 

Foreign currency transaction gain

 

21

 

1

 

16

 

 

Income before income tax provision

 

3,844

 

3,874

 

2,313

 

2,169

 

Provision for income taxes

 

1,284

 

1,541

 

773

 

865

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

2,560

 

$

2,333

 

$

1,540

 

$

1,304

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic

 

$

0.57

 

$

0.52

 

$

0.35

 

$

0.29

 

Net income per common share - Diluted

 

$

0.56

 

$

0.50

 

$

0.34

 

$

0.28

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Basic

 

4,464

 

4,449

 

4,451

 

4,471

 

Weighted average common shares outstanding - Diluted

 

4,578

 

4,632

 

4,557

 

4,656