SHREWSBURY, NJ--(Marketwire - Jul 28, 2011) - Wayside Technology Group, Inc. (
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 $13.1 million, representing 48% of equity as of June 30, 2011.
Net sales for the second quarter of 2011 increased 25% to $60.7 million compared to $48.4 million for the same period in 2010. Total sales for the second quarter of 2011 for our TechXtend segment (formerly Programmer's Paradise segment) were $11.7 million compared to $12.6 million in the second quarter of 2010, representing a 7% decrease. Total sales for the second quarter of 2011 for our Lifeboat segment were $49.0 million compared to $35.8 million in the second quarter of 2010, representing an increase of $13.1 million or 37%.
"We performed well in the second quarter of 2011," said Simon F. Nynens, Chairman and Chief Executive Officer. "We continue to invest in the growth of our company and we are pleased to report a continued high growth rate."
Sales from our Lifeboat segment showed strong growth. The 37% increase in net sales in the second 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. The decrease in sales in the TechXtend division was primarily due to fewer large sales transactions in the current quarter.
Gross Profit for the quarter ended June 30, 2011 was $5.6 million compared to $4.7 million for the second quarter of 2010, representing a 20% increase. Total gross profit for our TechXtend segment was $1.3 million compared to $1.3 million in the second quarter of 2010, representing a 2% decrease. Total gross profit for our Lifeboat segment was $4.3 million compared to $3.4 million in the second quarter of 2010, representing a 28% increase. This increase in gross profit was due to aggressive sales volume growth within our Lifeboat segment. Vendor rebates and discounts for the quarter ended June 30, 2011 amounted to $0.8 million compared to $0.7 million for the second quarter of 2010. Vendor rebates are dependent on reaching certain targets set by our vendors.
Total gross profit, as a percentage of net sales, for the second quarter of 2011 was 9.2%, compared to 9.7% in the second 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 second quarter of 2011 were $3.6 million compared to $3.2 million for the second quarter of 2010, which was mainly the result of a increase in employee and employee-related expenses (salaries, commissions, bonus accruals and benefits) of $0.3 million in 2011 compared to 2010. As a percentage of net sales, SG&A expenses for the second quarter of 2011 were 6.0% compared to 6.5% for the second quarter of 2010.
On July 26, 2011, the Board of Directors declared a quarterly dividend of $.16 per share of its common stock payable August 19, 2011 to shareholders of record on August 9, 2011.
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 | |||||||||
| (In thousands, except share and per share amounts) | |||||||||
| June 30, 2011 | December 31, 2010 | ||||||||
| (unaudited) | |||||||||
| ASSETS | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 11,667 | $ | 10,955 | |||||
| Marketable securities | 1,394 | 4,528 | |||||||
| Accounts receivable, net | 38,443 | 42,486 | |||||||
| Inventory - finished goods | 1,345 | 1,164 | |||||||
| Prepaid expenses and other current assets | 1,378 | 1,250 | |||||||
| Deferred income taxes | 452 | 516 | |||||||
| Total current assets | 54,679 | 60,899 | |||||||
| Equipment and leasehold improvements, net | 514 | 545 | |||||||
| Accounts receivable long-term | 6,370 | 6,866 | |||||||
| Other assets | 38 | 37 | |||||||
| Deferred income taxes | 336 | 336 | |||||||
| Total assets | $ | 61,937 | $ | 68,683 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities | |||||||||
| Accounts payable and accrued expenses | $ | 34,643 | $ | 41,791 | |||||
| Current portion- capital lease obligation | 82 | 75 | |||||||
| Total current liabilities | 34,725 | 41,866 | |||||||
| Long term portion- capital lease obligation | 97 | 138 | |||||||
| Total liabilities | 34,822 | 42,004 | |||||||
| Commitments and contingencies | |||||||||
| Stockholders' equity | |||||||||
| Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares issued, and 4,722,893 and 4,770,241 shares outstanding, respectively | 53 | 53 | |||||||
| Additional paid-in capital | 26,198 | 25,473 | |||||||
| Treasury stock, at cost, 561,607 and 514,259 shares, respectively | (4,519 | ) | (3,570 | ) | |||||
| Retained earnings | 4,835 | 4,267 | |||||||
| Accumulated other comprehensive income | 548 | 456 | |||||||
| Total stockholders' equity | 27,115 | 26,679 | |||||||
| Total liabilities and stockholders' equity | $ | 61,937 | $ | 68,683 | |||||
| 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, | ||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||
| Revenues | |||||||||||||
| Lifeboat segment | $ | 88,502 | $ | 64,927 | $ | 48,951 | $ | 35,810 | |||||
| TechXtend segment (formerly Programmer's Paradise segment) | 23,708 | 23,873 | 11,710 | 12,632 | |||||||||
| Total Revenue | 112,210 | 88,800 | 60,661 | 48,442 | |||||||||
| Cost of sales | |||||||||||||
| Lifeboat segment | 80,790 | 58,930 | 44,653 | 32,458 | |||||||||
| TechXtend segment (formerly Programmer's Paradise segment) | 20,994 | 21,217 | 10,407 | 11,299 | |||||||||
| Total Cost of sales | 101,784 | 80,147 | 55,060 | 43,757 | |||||||||
| Gross Profit | 10,426 | 8,653 | 5,601 | 4,685 | |||||||||
| Operating expenses | |||||||||||||
| Selling costs | 3,728 | 3,200 | 1,892 | 1,651 | |||||||||
| Stock based compensation | 589 | 596 | 300 | 296 | |||||||||
| Other general and administrative expenses | 2,853 | 2,394 | 1,448 | 1,213 | |||||||||
| Total Selling, general and administrative expenses | 7,170 | 6,190 | 3,640 | 3,160 | |||||||||
| Income from operations | 3,256 | 2,463 | 1,961 | 1,525 | |||||||||
| Interest income, net | 172 | 212 | 86 | 104 | |||||||||
| Realized foreign exchange gain | 1 | 3 | 1 | 2 | |||||||||
| Income before income tax provision | 3,429 | 2,678 | 2,048 | 1,631 | |||||||||
| Provision for income taxes | 1,358 | 1,000 | 820 | 576 | |||||||||
| Net income | $ | 2,071 | $ | 1,678 | $ | 1,228 | $ | 1,055 | |||||
| Net income per common share - Basic | $ | 0.47 | $ | 0.38 | $ | 0.28 | $ | 0.24 | |||||
| Net income per common share - Diluted | $ | 0.45 | $ | 0.38 | $ | 0.26 | $ | 0.23 | |||||
| Weighted average common shares outstanding - Basic | 4,414 | 4,376 | 4,414 | 4,380 | |||||||||
| Weighted average common shares outstanding - Diluted | 4,647 | 4,461 | 4,645 | 4,493 | |||||||||