Exhibit 99.1

 

Picture 3

Wayside Technology Group, Inc. Reports 2017 First Quarter Results

and Declares Quarterly Dividend

 

Q1 2017:

 

Revenue:$112.8 million

Income from operations: $1.8 million

Net income:$1.3 million

Diluted earnings per share: $0.30 per share

 

Dividend declared - $0.17 per share

EATONTOWN, NJ, April 27, 2017 – Wayside Technology Group, Inc. (NASDAQ: WSTG) today announced financial results for the first quarter ended March 31, 2017.  The results will be discussed in a conference call to be held on Friday, April 28, 2017 at 10:00 a.m. EDT.  The dial-in telephone number is (844) 683-0552 and the pass code is “WSTG.”  This conference call will be webcast by NASDAQ OMX and can be accessed at Wayside Technology’s website at www.waysidetechnology.com/site/content/webcasts.  

Net income for the quarter ended March 31, 2017 increased 28% to $1.3 million, compared to $1.0 million during same period last year. 

 

Diluted earnings per share for the quarter ended March 31, 2017 increased 35% to $0.30, compared to $0.22, for the same period in 2016. 

 

On April 26, 2017, the Board of Directors declared a quarterly dividend of $0.17 per share of its common stock payable May 17, 2017 to shareholders of record on May 10, 2017.

 

“We are very pleased to report a great first quarter of 2017” said Simon F. Nynens, Chairman and Chief Executive Officer. “In cooperation with our vendor partners we continue to offer innovative security, virtualization and cloud solutions to our customers. As an entrepreneurial and flexible specialty distributor, we meet the demands of our partners in these high growth markets. In addition, we will continue to utilize our capital to maximize our shareholder return in 2017. We paid dividends now for 57 consecutive quarters and during this quarter we bought back 95,015 shares of our stock.”

 

Operating Results:

 

Net sales for the quarter ended March 31, 2017 increased 21% to $112.8 million compared to $93.3 million for the same period in 2016. Lifeboat Distribution segment net sales for the quarter ended March 31, 2017 increased 21% to $104.5 million, compared to $86.3 million for the same period in 2016. TechXtend segment net sales for the quarter ended March 31, 2017 increased 19% to $8.3 million, compared to $7.0 million for the same period in 2016.


 

 

Gross profit for the quarter ended March 31, 2017 increased 14% to $6.8 million compared to $6.0 million for the same period in 2016. Lifeboat Distribution segment gross profit for the quarter ended March 31, 2017 increased 13% to $5.8 million, compared to $5.2 million in the same period in 2016. TechXtend segment gross profit for the first quarter of 2017 increased 15% to $0.9 million, compared to $0.8 million in 2016.

 

Gross profit margin (gross profit as a percentage of net sales) for the quarter ended March 31, 2017 decreased by 0.4 percentage points to 6.0%, compared to 6.4% for the same period in 2016. Lifeboat Distribution segment gross profit margin for the quarter ended March 31, 2017 decreased by 0.4 percentage points to 5.6%, compared to 6.0% for the same period last year. TechXtend segment gross profit margin for the quarter ended March 31, 2017 decreased 0.5 percentage points to 11.0%, compared to 11.5% for the same period in 2016.

 

Total selling, general, and administrative (“SG&A”) expenses for the quarter ended March 31, 2017 increased 11% to $5.0 million, compared to $4.5 million for the same quarter of 2016. The increase in general and administrative expenses is primarily due to increased employee related expenses to support our growth. SG&A expenses as a percentage of net sales were 4.4% in 2017 compared to 4.8% in 2016.

 

For the first quarter ended March 31, 2017, the Company recorded a provision for income taxes of $0.6 million.  

 

 

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 Bluebeam Software, Dell/Dell Software, erwin, ExaGrid Systems, Flexera Software, Hewlett Packard, Infragistics, Intel Software, Lenovo, Micro Focus, Microsoft, Mindjet, Samsung, SmartBear Software, SolarWinds, Sophos, StorageCraft Technology, Super Micro Computer, Inc., TechSmith, Unitrends, Veeam Software 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 –

 

Investor Relations Contact:

Michael Vesey, Vice President and Chief Financial Officer

Wayside Technology Group, Inc.

(732) 389-0932

michael.vesey@waysidetechnology.com

 

 


 

WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

    

March 31,

    

December 31,

 

 

 

2017

 

2016

 

 

 

(unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

11,090

 

$

13,524

 

Accounts receivable, net of allowances of $2,806 and $2,293, respectively

 

 

68,865

 

 

83,317

 

Inventory, net

 

 

2,461

 

 

2,324

 

Prepaid expenses and other current assets

 

 

877

 

 

948

 

Total current assets

 

 

83,293

 

 

100,113

 

 

 

 

 

 

 

 

 

Equipment and leasehold improvements, net

 

 

1,999

 

 

1,937

 

Accounts receivable long-term

 

 

10,917

 

 

11,119

 

Other assets

 

 

225

 

 

113

 

Deferred income taxes

 

 

455

 

 

416

 

 

 

 

 

 

 

 

 

Total assets

 

$

96,889

 

$

113,698

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

59,983

 

$

76,087

 

Total current liabilities

 

 

59,983

 

 

76,087

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares issued, and 4,538,995 and 4,555,434 shares, respectively

 

 

53

 

 

53

 

Additional paid-in capital

 

 

29,730

 

 

30,683

 

Treasury stock, at cost, 745,505 and 729,066 shares, respectively

 

 

(12,455)

 

 

(12,029)

 

Retained earnings

 

 

21,057

 

 

20,515

 

Accumulated other comprehensive loss

 

 

(1,479)

 

 

(1,611)

 

Total stockholders’ equity

 

 

36,906

 

 

37,611

 

Total liabilities and stockholders’ equity

 

$

96,889

 

$

113,698

 

 


 

WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

( Amounts in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

March 31,

 

 

    

2017

    

2016

 

 

 

(Unaudited )

 

Revenues

 

 

 

 

 

 

 

Lifeboat segment

 

$

104,483

 

$

86,340

 

TechXtend segment

 

 

8,313

 

 

6,983

 

Total Revenue

 

 

112,796

 

 

93,323

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

 

 

 

Lifeboat segment

 

 

98,640

 

 

81,187

 

TechXtend segment

 

 

7,397

 

 

6,183

 

Total Cost of sales

 

 

106,037

 

 

87,370

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

6,759

 

 

5,953

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

Selling costs

 

 

2,578

 

 

2,322

 

Share- based compensation

 

 

347

 

 

399

 

Other general and administrative expenses

 

 

2,042

 

 

1,739

 

Total Selling, general and administrative expenses

 

 

4,967

 

 

4,460

 

 

 

 

 

 

 

 

 

Income from operations

 

 

1,792

 

 

1,493

 

 

 

 

 

 

 

 

 

Interest, net

 

 

148

 

 

64

 

Income before provision for income taxes

 

 

1,940

 

 

1,557

 

Provision for income taxes

 

 

621

 

 

528

 

 

 

 

 

 

 

 

 

Net income

 

$

1,319

 

$

1,029

 

 

 

 

 

 

 

 

 

Income per common share - Basic

 

$

0.30

 

$

0.23

 

Income per common share - Diluted

 

$

0.30

 

$

0.22

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Basic

 

 

4,343

 

 

4,565

 

Weighted average common shares outstanding - Diluted

 

 

4,359

 

 

4,580