SHREWSBURY, NJ--(Marketwired - Oct 29, 2015) - Wayside Technology Group, Inc. (
| Q3 2015: | |
| Revenue: | $97.7 million |
| Income from operations: | $2.3 million |
| Diluted earnings per share: | $0.33 per share |
| Dividend declared - $0.17 per share | |
Wayside Technology Group, Inc. (
Cash and long term receivables amounted to $25.8 million, representing 68% of equity as of September 30, 2015. Working capital amounted to $31.3 million, representing 82% of equity as of September 30, 2015.
"I am pleased to report solid financial results for Q3 2015. Overall, revenue increased 8%, gross profit increased 11% and income from operations increased 20% over the same period last year," said Simon F. Nynens, Chairman and Chief Executive Officer.
Net sales for the third quarter ended September 30, 2015 increased 8% or $7.1 million to $97.7 million compared to $90.5 million for the same period in 2014. Total sales for the third quarter of 2015 for our Lifeboat Distribution segment were $86.1 million compared to $77.4 million in the third quarter of 2014, representing an increase of $8.7 million or 11%. Total sales for the third quarter of 2015 for our TechXtend segment were $11.6 million compared to $13.1 million in the third quarter of 2014, representing a decrease of $1.5 million or 12%.
The 11% increase in net sales for the Lifeboat Distribution segment was mainly a result of the addition of several key product lines and our ongoing strategy of strengthening of our account penetration. The 12% decrease in net sales in the TechXtend segment was primarily due to a decrease in extended payment terms sales transactions and other large sales transactions as compared to the same period in 2014.
Gross profit for the third quarter ended September 30, 2015 was $6.9 million, an 11% increase as compared to $6.2 million for the third quarter of 2014. Gross profit for our Lifeboat Distribution segment in the third quarter of 2015 was $5.5 million compared to $4.7 million for the third quarter of 2014, representing a 16% increase. Gross profit for our TechXtend segment in the third quarter of 2015 was $1.4 million representing a 3% decrease from the prior year.
Gross profit margin (gross profit as a percentage of net sales) for the third quarter ended September 30, 2015 was 7.0% compared to 6.8% for the third quarter of 2014. Gross profit margin for the nine months ended September 30, 2015 was 7.0% compared to 7.2% in the same period in 2014. Gross profit margin for our Lifeboat Distribution segment for the third quarter of 2015 was 6.4% compared to 6.1% for the third quarter of 2014. The increase in gross profit margin for the Lifeboat Distribution segment was primarily caused by product mix and increased marketing funds. Gross profit for our TechXtend segment for the third quarter of 2015 was 12.0% compared to 10.9% for the third quarter of 2014. The increase in gross profit margin for the TechXtend segment was primarily caused by the decrease in larger extended payment term sales transactions and other large sale transactions which typically carry lower margins.
Total selling, general, and administrative ("SG&A") expenses for the third quarter of 2015 were $4.6 million compared to $4.3 million for the third quarter of 2014, representing an increase of $0.3 million or 8%. This increase is primarily the result of an increase in sales related employee and employee related expenses. A large part of this increase is due to us hiring and creating a field sales team and a professional services team. As a percentage of net sales, SG&A expenses for the third quarter of 2015 and 2014 were 4.7%.
For the three months ended September 30, 2015, the Company recorded a provision for income taxes of $0.8 million or 34.1% of income, compared to $0.6 or 31.6% of income for the same period in 2014.
Net income and diluted earnings per share for the third quarter of 2015 were $1.6 million and $0.33, respectively, compared to $1.4 million and $0.29, respectively, for the third quarter of 2014.
On October 27, 2015, the Board of Directors declared a quarterly dividend of $.17 per share of its common stock payable November 17, 2015 to shareholders of record on November 10, 2015.
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) | |||||||||
| September 30, 2015 | December 31, 2014 | ||||||||
| (unaudited) | |||||||||
| ASSETS | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 19,607 | $ | 23,124 | |||||
| Accounts receivable, net | 56,916 | 60,782 | |||||||
| Inventory, net | 2,012 | 1,491 | |||||||
| Prepaid expenses and other current assets | 1,094 | 933 | |||||||
| Deferred income taxes | 179 | 245 | |||||||
| Total current assets | 79,808 | 86,575 | |||||||
| Equipment and leasehold improvements, net | 390 | 412 | |||||||
| Accounts receivable long-term | 6,139 | 7,660 | |||||||
| Other assets | 94 | 152 | |||||||
| Deferred income taxes | 182 | 182 | |||||||
| Total assets | $ | 86,613 | $ | 94,981 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities | |||||||||
| Accounts payable and accrued expenses | $ | 48,537 | $ | 55,414 | |||||
| Total current liabilities | 48,537 | 55,414 | |||||||
| Commitments and contingencies | |||||||||
| Stockholders' equity | |||||||||
| Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares issued, and 4,740,380 and 4,890,756 shares outstanding in 2015 and 2014, respectively | 53 |
53 |
|||||||
| Additional paid-in capital | 32,048 | 31,013 | |||||||
| Treasury stock, at cost, 544,120 and 393,744 shares, respectively | (9,574 | ) | (6,166 | ) | |||||
| Retained earnings | 16,997 | 15,225 | |||||||
| Accumulated other comprehensive loss | (1,448 | ) | (558 | ) | |||||
| Total stockholders' equity | 38,076 | 39,567 | |||||||
| Total liabilities and stockholders' equity | $ | 86,613 | $ | 94,981 | |||||
| WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES | |||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||||
| (Amounts in thousands, except per share data) | |||||||||||||||||
| Nine months ended | Three months ended | ||||||||||||||||
| September 30, | September 30, | ||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||
| Revenues | |||||||||||||||||
| Lifeboat segment | $ | 250,287 | $ | 206,655 | $ | 86,082 | $ | 77,416 | |||||||||
| TechXtend segment | 32,027 | 39,980 | 11,571 | 13,089 | |||||||||||||
| Total Revenue | 282,314 | 246,635 | 97,653 | 90,505 | |||||||||||||
| Cost of sales | |||||||||||||||||
| Lifeboat segment | 234,450 | 193,180 | 80,589 | 72,670 | |||||||||||||
| TechXtend segment | 28,202 | 35,602 | 10,184 | 11,659 | |||||||||||||
| Total Cost of sales | 262,652 | 228,782 | 90,773 | 84,329 | |||||||||||||
| Gross Profit | 19,662 | 17,853 | 6,880 | 6,176 | |||||||||||||
| Operating expenses | |||||||||||||||||
| Selling costs | 7,484 | 6,453 | 2,572 | 2,379 | |||||||||||||
| Share- based compensation | 797 | 853 | 263 | 278 | |||||||||||||
| Other general and administrative expenses | 5,252 | 4,987 | 1,783 | 1,634 | |||||||||||||
| Total Selling, general and administrative expenses | 13,533 | 12,293 | 4,618 | 4,291 | |||||||||||||
| Income from operations | 6,129 | 5,560 | 2,262 | 1,885 | |||||||||||||
| Interest income, net | 297 | 375 | 100 | 121 | |||||||||||||
| Foreign currency transaction (loss) gain | (9 | ) | (8 | ) | (4 | ) | (4 | ) | |||||||||
| Income before provision for income taxes | 6,417 | 5,927 | 2,358 | 2,002 | |||||||||||||
| Provision for income taxes | 2,199 | 2,016 | 805 | 632 | |||||||||||||
| Net income | $ | 4,218 | $ | 3,911 | $ | 1,553 | $ | 1,370 | |||||||||
| Income per common share - Basic | $ | 0.91 | $ | 0.84 | $ | 0.34 | $ | 0.29 | |||||||||
| Income per common share - Diluted | $ | 0.90 | $ | 0.83 | $ | 0.33 | $ | 0.29 | |||||||||
| Weighted average common shares outstanding - Basic | 4,652 | 4,639 | 4,624 | 4,716 | |||||||||||||
| Weighted average common shares outstanding - Diluted | 4,673 | 4,685 | 4,643 | 4,736 | |||||||||||||