Welcome!

News Feed Item

Wayside Technology Group, Inc. Reports Fourth Quarter 2012 Results and Declares Quarterly Dividend

SHREWSBURY, NJ -- (Marketwire) -- 01/31/13 -- Wayside Technology Group, Inc. (NASDAQ: WSTG)

                               Q4 2012:           Year 2012:
                               ------------------ ------------------
Revenue:                       $85.5 million      $297.1 million
Income from operations:        $2.8 million       $8.5 million
Net income:                    $1.8 million       $5.5 million
Diluted earnings per share:    $0.39 per share    $1.19 per share
Dividend declared:             $0.16 per share    $0.64 per share

Wayside Technology Group, Inc. (NASDAQ: WSTG) today reported financial results for the fourth quarter ended December 31, 2012. The results will be discussed in a conference call to be held on Friday, February 1, 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 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.

"The fourth quarter was our best quarter in 2012. Revenues, gross profit, income from operations and net income all contributed to deliver our best quarter in 2012," said Simon F. Nynens, Chairman and Chief Executive Officer. "Our TechXtend division performed exceptionally well in Q4 with Lifeboat Distribution delivering solid results. Overall, we grew our product line offerings as we continue to pursue our mission to become the most trusted and respected IT provider in our industry."

Cash and marketable securities amounted to $14.2 million, representing 44% of equity as of December 31, 2012. Working capital amounted to $19.6 million, representing 61% of equity as of December 31, 2012.

Net sales for the fourth quarter ended December 31, 2012 increased 15%, or $11.2 million, to $85.5 million compared to $74.2 million for the same period in 2011. Net sales for the fourth quarter of 2012 for our Lifeboat Distribution segment were $58.5 million compared to $55.1 million in the fourth quarter of 2011, representing an increase of $3.4 million or 6%. Net sales for the fourth quarter of 2012 for our TechXtend segment were $26.9 million compared to $19.1 million in the fourth quarter of 2011, representing an increase of $7.8 million or 41%.

Net sales for the year ended December 31, 2012 increased 19%, or $46.9 million, to $297.1 million compared to $250.2 million in 2011. Total sales for our Lifeboat Distribution segment in 2012 were $217.3 million compared to $192.7 million in 2011, representing an increase of $24.6 million or 13%. Total sales for the TechXtend segment in 2012 amounted to $79.7 million, compared to $57.4 million in 2011, representing an increase of $22.3 million or 39%.

The increase in net sales for the three month and full year ended December 31, 2012, compared to the same periods in 2011, was mainly a result of strengthening of our account penetration, our continued focus on the expanding virtual infrastructure-centric business, our solution focus selling and an increase in large deals on extended payment terms.

Gross Profit for each of the fourth quarters ended December 31, 2012 and December 31, 2011 was $7.0 million. Gross profit for our Lifeboat Distribution segment for the fourth quarter of 2012 was $4.5 million compared to $5.0 million in the fourth quarter of 2011, representing a 10% decrease. Gross profit for our TechXtend segment was $2.6 million compared to $2.1 million in the fourth quarter of 2011, representing a 23% increase. Vendor rebates and discounts for the quarter ended December 31, 2012 amounted to $0.6 million compared to $0.8 million for the fourth quarter of 2011.

Gross Profit for the year ended December 31, 2012 was $23.9 million compared to $23.2 million in 2011, a 3% increase. Gross profit for our Lifeboat Distribution segment was $15.8 million compared to $16.8 million in 2011, representing a 6% decrease. Gross profit for our TechXtend segment was $8.1 million compared to $6.4 million in 2011, representing a 25% increase. Vendor rebates and discounts for the year ended December 31, 2012 amounted to $1.8 million compared to $2.9 million for 2011. Gross profit margin (gross profit as a percentage of net sales) for 2012 was 8.0% compared to 9.3% in 2011.

The increase in gross profit dollars and the decrease in gross profit margin were primarily caused by the sales growth within our Lifeboat Distribution and TechXtend segments, offset in part, by continued pressure on discounts and rebates earned and by competitive pricing pressure in both segments. The decrease in gross profit margin was also impacted by having won several large bids, including transactions on extended payment terms, based on aggressive pricing which we plan to continue.

Total selling, general, and administrative ("SG&A") expenses for the fourth quarter of 2012 were $4.2 million compared to $4.0 million for the fourth quarter of 2011. Total SG&A expenses for 2012 were $15.4 million compared to $14.6 million in 2011, representing an increase of $0.8 million. This increase is primarily the result of an increase in sales commissions for our TechXtend segment due to our growth in this segment, the addition of employees in sales, finance and operations to support business growth and higher professional fees.

Net income and diluted earnings per share for the fourth quarter of 2012 were $1.8 million and $0.39, respectively, compared to $2.0 million and $0.43, respectively for the fourth quarter of 2011. Net income and diluted earnings per share for 2012 were $5.5 million and $1.19, respectively, compared to $5.5 million and $1.20, respectively in 2011.

On January 30, 2013, the Board of Directors declared a quarterly dividend of $.16 per share of its common stock payable February 22, 2013 to shareholders of record on February 12, 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 such as Acronis, CA Technologies, DataCore, Datawatch, Dell, Flexera Software, GFI, Hewlett Packard, Infragistics, Intel Software, Lenovo, Microsoft, Mindjet, Quest Software, SolarWinds, Sophos, StorageCraft Technology, TechSmith, Veeam, 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)

                                                 December 31,  December 31,
                                                     2012          2011
                                                 ------------  ------------
                                                  (unaudited)
                     ASSETS

Current assets
  Cash and cash equivalents                      $      9,835  $      9,202
  Marketable securities                                 4,411         5,375
  Accounts receivable, net                             61,388        47,066
  Inventory - finished goods                            1,717         1,240
  Prepaid expenses and other current assets             1,281         1,997
  Deferred income taxes                                   280           329
                                                 ------------  ------------
Total current assets                                   78,912        65,209

Equipment and leasehold improvements, net                 375           458
Accounts receivable long-term                          11,851         8,889
Other assets                                               71            54
Deferred income taxes                                     236           251
                                                 ------------  ------------

Total assets                                     $     91,445  $     74,861
                                                 ============  ============

      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable and accrued expenses          $     59,265  $     45,796
  Current portion- capital lease obligation                55            76
                                                 ------------  ------------
Total current liabilities                              59,320        45,872

Long term portion- capital lease obligation                 -            55
                                                 ------------  ------------
Total liabilities                                      59,320        45,927
                                                 ------------  ------------

Commitments and contingencies

Stockholders' equity
  Common stock, $.01 par value; 10,000,000
   shares authorized, 5,284,500 shares issued,
   and 4,740,873 and 4,679,878 shares
   outstanding, respectively                               53            53
  Additional paid-in capital                           27,712        26,725
  Treasury stock, at cost, 543,627 and 604,622
   shares, respectively                                (5,373)       (4,991)
  Retained earnings                                     9,316         6,818
  Accumulated other comprehensive income                  417           329
                                                 ------------  ------------
Total stockholders' equity                             32,125        28,934
                                                 ------------  ------------
Total liabilities and stockholders' equity       $     91,445  $     74,861
                                                 ============  ============



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

                                    Year ended          Three months ended
                                   December 31,            December 31,
                                 2012        2011        2012        2011
                             ----------- ----------- ----------- -----------
                             (Unaudited)                   (Unaudited)
Revenues
  Lifeboat segment           $   217,342 $   192,720 $    58,504 $    55,099
  TechXtend segment               79,715      57,449      26,943      19,119
                             ----------- ----------- ----------- -----------
  Total Revenue                  297,057     250,169      85,447      74,218

Cost of sales
  Lifeboat segment               201,524     175,916      54,022      50,112
  TechXtend segment               71,641      51,012      24,388      17,048
                             ----------- ----------- ----------- -----------
  Total Cost of sales            273,165     226,928      78,410      67,160
                             ----------- ----------- ----------- -----------

Gross Profit                      23,892      23,241       7,037       7,058

Operating expenses
  Selling costs                    8,079       7,774       2,222       2,179
  Stock based compensation         1,071       1,059         328         235
  Other general and
   administrative expenses         6,227       5,790       1,679       1,573
                             ----------- ----------- ----------- -----------
Total Selling, general and
 administrative expenses          15,377      14,623       4,229       3,987
                             ----------- ----------- ----------- -----------

Income from operations             8,515       8,618       2,808       3,071

Interest income, net                 557         368         163         104
Realized foreign exchange
 gain                                 17           1           4           -
                             ----------- ----------- ----------- -----------
Income before income tax
 provision                         9,089       8,987       2,975       3,175
Provision for income taxes         3,600       3,448       1,172       1,200

                             ----------- ----------- ----------- -----------
Net income                   $     5,489 $     5,539 $     1,803 $     1,975
                             =========== =========== =========== ===========

Net income per common share
 - Basic                     $      1.23 $      1.26 $      0.40 $      0.45
                             =========== =========== =========== ===========
Net income per common share
 - Diluted                   $      1.19 $      1.20 $      0.39 $      0.43
                             =========== =========== =========== ===========

Weighted average common
 shares outstanding - Basic        4,476       4,412       4,502       4,412
                             =========== =========== =========== ===========
Weighted average common
 shares outstanding -
 Diluted                           4,628       4,606       4,622       4,570
                             =========== =========== =========== ===========

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will d...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
CI/CD is conceptually straightforward, yet often technically intricate to implement since it requires time and opportunities to develop intimate understanding on not only DevOps processes and operations, but likely product integrations with multiple platforms. This session intends to bridge the gap by offering an intense learning experience while witnessing the processes and operations to build from zero to a simple, yet functional CI/CD pipeline integrated with Jenkins, Github, Docker and Azure...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Dhiraj Sehgal works in Delphix's product and solution organization. His focus has been DevOps, DataOps, private cloud and datacenters customers, technologies and products. He has wealth of experience in cloud focused and virtualized technologies ranging from compute, networking to storage. He has spoken at Cloud Expo for last 3 years now in New York and Santa Clara.
Enterprises are striving to become digital businesses for differentiated innovation and customer-centricity. Traditionally, they focused on digitizing processes and paper workflow. To be a disruptor and compete against new players, they need to gain insight into business data and innovate at scale. Cloud and cognitive technologies can help them leverage hidden data in SAP/ERP systems to fuel their businesses to accelerate digital transformation success.
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.