SHREWSBURY, NJ--(Marketwired - Apr 24, 2014) - Wayside Technology Group, Inc. (
| Q1 2014: | |||
| Revenue: | $ | 71.7 million | |
| Income from operations: | $ | 1.5 million | |
| Net income: | $ | 1.1 million | |
| Diluted earnings per share: | $ | 0.23 per share | |
| Dividend declared - $0.17 per share | |||
Wayside Technology Group, Inc. (
"I am pleased to report solid financial results for Q1 2014. Overall, revenue increased 9% and income from operations increased 7% over the same period last year. Key metrics -- revenue, income from operations and net income -- all showed improvement compared to Q1 2013," said Simon F. Nynens, Chairman and Chief Executive Officer.
"In addition, we are pleased to announce that Bill Botti has joined the Company as Executive Vice President, effective April 21, 2014. Mr. Botti, a recognized industry leader, brings a wealth of sales and channel experience and many valuable relationships that we hope to leverage to help take the growth and development of Wayside to the next level," said Mr. Nynens.
Cash and long term receivables amounted to $21.3 million, representing 59% of equity as of March 31, 2014. Working capital amounted to $25.7 million, representing 71% of equity as of March 31, 2014.
Net sales for the first quarter ended March 31, 2014 increased 9% or $5.8 million to $71.7 million compared to $66.0 million for the same period in 2013. Total sales for the first quarter of 2014 for our Lifeboat Distribution segment were $59.3 million compared to $53.9 million in the first quarter of 2013, representing an increase of $5.4 million or 10%. Total sales for the first quarter of 2014 for our TechXtend segment were $12.5 million compared to $12.1 million in the first quarter of 2013, representing an increase of $0.4 million or 3%.
The 10% 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 3% increase in net sales in the TechXtend segment was primarily due to an increase in extended payment terms sales transactions as compared to the first quarter ended March 31, 2013.
Gross Profit for the first quarter ended March 31, 2014 was $5.5 million, a 4% increase as compared to $5.3 million for the first quarter of 2013. Gross profit for our Lifeboat segment in the first quarter of 2014 was $4.1 million compared to $3.8 million for the first quarter of 2013. Gross profit for our TechXtend segment in the first quarter of 2014 was $1.4 million compared to $1.5 million for the first quarter of 2013, representing an 8% decrease. Although TechXtend's net sales increased, its gross profit decreased primarily due to a decrease in rebates earned in the TechXtend segment in the current quarter compared to the first quarter of 2013.
Gross profit margin (gross profit as a percentage of net sales) for the first quarter ended March 31, 2014 was 7.7% compared to 8.1% for the first quarter of 2013. Gross profit margin for our Lifeboat Distribution segment for the first quarter of 2014 was 6.9% compared to 7.0% for the first quarter of 2013. This slight decrease in gross profit margin for the Lifeboat Distribution segment was primarily caused by competitive pricing pressure. Gross profit margin for our TechXtend segment for the first quarter of 2014 was 11.4% compared to 12.7% for the first quarter of 2013. The decrease in gross profit margin for the TechXtend segment was primarily caused by our product mix and a decrease in rebates earned during the current year.
The Company monitors gross profits and gross profit margins carefully. Price competition in our market persisted in 2014. We anticipate that margins, as well as discounts and rebates, will continue to be under pressure in the near future.
Total selling, general, and administrative ("SG&A") expenses for the first quarter of 2014 were $4.0 million compared to $3.9 million for the first quarter of 2013.
For the three months ended March 31, 2014, the Company recorded a provision for income taxes of $545,000 or 34.0% of income, compared to $511,000 or 33.4% of income for the same period in 2013.
Net income and diluted earnings per share for the first quarter of 2014 were $1.1 million and $0.23, respectively, compared to $1.0 million and $0.22, respectively for the first quarter of 2013.
On April 23, 2014, the Board of Directors declared a quarterly dividend of $.17 per share of its common stock payable May 16, 2014 to shareholders of record on May 6, 2014.
About Wayside Technology Group, Inc.
Wayside Technology Group, Inc. (
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, 2014 | December 31, 2013 | ||||||||
| (unaudited) | |||||||||
| ASSETS | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 11,718 | $ | 19,609 | |||||
| Accounts receivable, net | 57,116 | 60,796 | |||||||
| Inventory, net | 1,233 | 1,315 | |||||||
| Prepaid expenses and other current assets | 1,206 | 2,117 | |||||||
| Deferred income taxes | 230 | 218 | |||||||
| Total current assets | 71,503 | 84,055 | |||||||
| Equipment and leasehold improvements, net | 334 | 324 | |||||||
| Accounts receivable long-term | 9,555 | 10,006 | |||||||
| Other assets | 160 | 159 | |||||||
| Deferred income taxes | 216 | 216 | |||||||
| Total assets | $ | 81,768 | $ | 94,760 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities | |||||||||
| Accounts payable and accrued expenses | $ | 45,808 | $ | 60,039 | |||||
| Total current liabilities | 45,808 | 60,039 | |||||||
| Commitments and contingencies | |||||||||
| Stockholders' equity | |||||||||
| Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares issued, and 4,766,774 and 4,653,293 shares outstanding, respectively | 53 | 53 | |||||||
| Additional paid-in capital | 29,507 | 28,791 | |||||||
| Treasury stock, at cost, 517,726 and 631,207 shares, respectively | (6,484 | ) | (7,017 | ) | |||||
| Retained earnings | 12,967 | 12,695 | |||||||
| Accumulated other comprehensive (loss) income | (83 | ) | 199 | ||||||
| Total stockholders' equity | 35,960 | 34,721 | |||||||
| Total liabilities and stockholders' equity | $ | 81,768 | $ | 94,760 | |||||
| WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||
| ( Amounts in thousands, except per share data) | ||||||||
| Three months ended | ||||||||
| March 31, | ||||||||
| 2014 | 2013 | |||||||
| (Unaudited) | ||||||||
| Revenues | ||||||||
| Lifeboat segment | 59,259 | 53,869 | ||||||
| TechXtend segment | 12,471 | 12,111 | ||||||
| Total Revenue | $ | 71,730 | $ | 65,980 | ||||
| Cost of sales | ||||||||
| Lifeboat segment | 55,143 | 50,097 | ||||||
| TechXtend segment | 11,049 | 10,570 | ||||||
| Total Cost of sales | 66,192 | 60,667 | ||||||
| Gross Profit | 5,538 | 5,313 | ||||||
| Operating expenses | ||||||||
| Selling costs | 2,025 | 1,994 | ||||||
| Share- based compensation | 327 | 271 | ||||||
| Other general and administrative expenses | 1,693 | 1,652 | ||||||
| Total Selling, general and administrative expenses | 4,045 | 3,917 | ||||||
| Income from operations | 1,493 | 1,396 | ||||||
| Interest, net | 123 | 130 | ||||||
| Foreign currency transaction (loss) gain | (12 | ) | 5 | |||||
| Income before provision for income taxes | 1,604 | 1,531 | ||||||
| Provision for income taxes | 545 | 511 | ||||||
| Net income | $ | 1,059 | $ | 1,020 | ||||
| Income per common share - Basic | $ | 0.23 | $ | 0.23 | ||||
| Income per common share - Diluted | $ | 0.23 | $ | 0.22 | ||||
| Weighted average common shares outstanding - Basic | 4,538 | 4,477 | ||||||
| Weighted average common shares outstanding - Diluted | 4,615 | 4,602 | ||||||