Welcome!

News Feed Item

Wayside Technology Group, Inc. Reports 2013 Fourth Quarter & Full Year Results and Declares Quarterly Dividend

SHREWSBURY, NJ -- (Marketwired) -- 02/06/14 -- Wayside Technology Group, Inc. (NASDAQ: WSTG)


                                           Q4 2013:           Year 2013:
                                     ------------------- -------------------
Revenue:                             $      89.9 million $     300.4 million
Income from operations:              $       3.5 million $       8.9 million
Net income:                          $       2.5 million $       6.4 million
Diluted earnings per share:          $    0.55 per share $    1.41 per share

Dividend declared - $0.17 per share


Wayside Technology Group, Inc. (NASDAQ: WSTG) today announced financial results for the fourth quarter and year ended December 31, 2013. The results will be discussed in a conference call to be held on Friday, February 7, 2014 at 10:00 a.m. EST. The dial-in telephone number is (866) 793-1341 and the pass code is "WSTG." This conference call will be webcast by NASDAQ OMX and can be accessed at Wayside Technology's Web site at www.waysidetechnology.com/earnings-call.

"I am very pleased to report a strong finish to 2013 with the fourth quarter being our best quarter of the year," said Simon F. Nynens, Chairman and Chief Executive Officer. "Q4 2013 income from operations increased by 25%, as compared to Q4 of 2012. We achieved record net income of $6.4 million for 2013."

Cash, marketable securities and long term receivables amounted to $29.6 million, representing 85% of equity as of December 31, 2013 and $6.25 per share as per December 31, 2013. Working capital amounted to $24.0 million, representing 69% of equity as of December 31, 2013.

Net sales for the fourth quarter ended December 31, 2013 increased 5% to $89.9 million compared to $85.5 million for the same period in 2012. Net sales for the fourth quarter of 2013 for our Lifeboat Distribution segment were $65.7 million compared to $58.5 million in the fourth quarter of 2012, representing an increase of 12%. Net sales for the fourth quarter of 2013 for our TechXtend segment were $24.2 million compared to $26.9 million in the fourth quarter of 2012, representing a decrease of 10%.

Net sales for the year ended December 31, 2013 increased 1% to $300.4 million compared to $297.1 million in 2012. Net sales for our Lifeboat Distribution segment in 2013 were $237.7 million compared to $217.3 million in 2012, representing a 9% increase. Total sales for the TechXtend segment in 2013 amounted to $62.8 million, compared to $79.7 million in 2012, representing a decrease of 21%.

The increases in net sales for the three month and full year ended December 31, 2013, compared to the same periods in 2012, in our Lifeboat Distribution segment were 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, and resulted primarily from sales generated out of the USA sales office. The decrease in net sales in our TechXtend segment was primarily due to a decrease in large single sales transactions and a decrease in extended payment terms sales transactions in the first three quarters of 2013 as compared to exceptionally strong levels of large single sales transactions and extended payment terms sales transactions in 2012.

Gross profit for the fourth quarter of 2013 was $7.8 million compared to $7.0 million for the fourth quarter of 2012 representing an increase of 11%. Gross profit for our Lifeboat Distribution segment for the fourth quarter of 2013 was $5.3 million compared to $4.5 million in the fourth quarter of 2012, representing a 19% increase. Gross profit for our TechXtend segment for the fourth quarter of 2013 was $2.5 million compared to $2.6 million in the fourth quarter of 2012, representing a 2% decrease. Vendor rebates and discounts for the quarter ended December 31, 2013 amounted to $0.7 million compared to $0.4 million for the fourth quarter of 2012.

Gross profit for the year 2013 was $24.4 million compared to $23.9 million in 2012, a 2% increase. Gross profit for our Lifeboat Distribution segment in 2013 was $17.4 million compared to $15.8 million in 2012, representing a 10% increase. The increase in gross profit for the Lifeboat Distribution segment was due to increased sales volume as gross profit margin remained relatively stable. Gross profit for our TechXtend segment in 2013 was $6.9 million compared to $8.1 million in 2012, representing a 14% decrease. The decrease in gross profit for the TechXtend segment was the result of decreased sales volume, including a decrease in large single sales transactions and extended payment terms sales transactions, offset in part by a higher gross margin in 2013 as compared to 2012. Vendor rebates and discounts for the year ended December 31, 2013 amounted to $1.7 million compared to $1.5 million for 2012, representing a 13% increase. The increase in vendor rebates and discounts as a percentage of net sales was experienced mainly at the TechXtend segment.

Gross profit margin (gross profit as a percentage of net sales) for 2013 was 8.1% compared to 8.0% in 2012. Gross profit margin for our Lifeboat Distribution segment was 7.3% in 2013 and 2012. Gross profit margin for our TechXtend segment in 2013 was 11.0% compared to 10.1% in 2012. This increase was due to increased pricing and vendor rebates in 2013 as compared to 2012.

The increase in gross profit dollars and the increase in gross profit margins were primarily caused by the sales growth within our Lifeboat Distribution segment and increase in pricing and an increase in rebates earned at our TechXtend segment.

The Company monitors gross profits and gross profit margins carefully. Price competition in our market persisted in 2013. Although our total gross profit margins improved slightly in 2013, we anticipate that margins, as well as discounts and rebates, will be under pressure in the near future.

Total selling, general, and administrative ("SG&A") expenses for the fourth quarter of 2013 were $4.3 million compared to $4.2 million for the fourth quarter of 2012. Total SG&A expenses for 2013 were $15.5 million compared to $15.4 million in 2012, representing an increase of $0.1 million or 0.8%.

For the fourth quarter and year ended December 31, 2013, the Company recorded a provision for income taxes of $1.2 million and $3.0 million, respectively. The current year effective tax rate was 32.1% compared to 39.6% in 2012, the decrease in the effective tax rate was primarily the result of a change in the state of New Jersey's apportionment rules which lowered our state rate compared with the prior year.

Net income and diluted earnings per share for the fourth quarter of 2013 were $2.5 million and $0.55, respectively, compared to $1.8 million and $0.39, respectively for the fourth quarter of 2012. Net income and diluted earnings per share for 2013 were $6.4 million and $1.41, respectively, compared to $5.5 million and $1.19, respectively in 2012.

On February 5, 2014, the Board of Directors declared a quarterly dividend of $.17 per share of its common stock payable February 28, 2014 to shareholders of record on February 18, 2014.

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 Acronis, Bluebeam Software, CA Technologies, DataCore, Datawatch, Dell/Dell Software, Flexera Software, Hewlett Packard, Infragistics, Intel Software, Lenovo, Microsoft, Mindjet, Samsung, SAP/Sybase, SmartBear, SolarWinds, Sophos, StorageCraft Technology, TechSmith, Telerik, 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 okey 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,
                                                     2013          2012
                                                 ------------  ------------
                                                  (unaudited)
                                   ASSETS
Current assets
  Cash and cash equivalents                      $     19,609  $      9,835
  Marketable securities                                     -         4,411
  Accounts receivable, net                             60,796        61,388
  Inventory, net                                        1,315         1,717
  Prepaid expenses and other current assets             2,117         1,281
  Deferred income taxes                                   218           280
                                                 ------------  ------------
Total current assets                                   84,055        78,912

Equipment and leasehold improvements, net                 324           375
Accounts receivable long-term                          10,006        11,851
Other assets                                              159            71
Deferred income taxes                                     216           236
                                                 ------------  ------------

Total assets                                     $     94,760  $     91,445
                                                 ============  ============

                    LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable and accrued expenses          $     60,039  $     59,265
  Current portion- capital lease obligation                 -            55
                                                 ------------  ------------
Total current liabilities                              60,039        59,320


Commitments and contingencies

Stockholders' equity
  Common stock, $.01 par value; 10,000,000
   shares authorized, 5,284,500 shares issued,
   and 4,653,293 and 4,740,873 shares
   outstanding in 2013 and 2012, respectively              53            53
  Additional paid-in capital                           28,791        27,712
  Treasury stock, at cost, 631,207 and 543,627
   shares, respectively                                (7,017)       (5,373)
  Retained earnings                                    12,695         9,316
  Accumulated other comprehensive income                  199           417
                                                 ------------  ------------
Total stockholders' equity                             34,721        32,125
                                                 ------------  ------------
Total liabilities and stockholders' equity       $     94,760  $     91,445
                                                 ============  ============


               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,
                                     2013        2012      2013       2012
                                 ------------ --------- ---------  ---------
                                  (Unaudited)                (Unaudited)
Revenues
  Lifeboat Distribution segment  $    237,632 $ 217,342 $  65,683  $  58,504
  TechXtend segment                    62,758    79,715    24,170     26,943
                                 ------------ --------- ---------  ---------
  Total Revenue                       300,390   297,057    89,853     85,447

Cost of sales
  Lifeboat Distribution segment       220,184   201,524    60,364     54,022
  TechXtend segment                    55,851    71,641    21,677     24,388
                                 ------------ --------- ---------  ---------
  Total Cost of sales                 276,035   273,165    82,041     78,410
                                 ------------ --------- ---------  ---------

Gross profit                           24,355    23,892     7,812      7,037

Operating expenses
  Selling costs                         7,997     8,079     2,162      2,222
  Stock based compensation              1,127     1,071       297        328
  Other general and
   administrative expenses              6,381     6,227     1,835      1,679
                                 ------------ --------- ---------  ---------
Total Selling, general and
 administrative expenses               15,505    15,377     4,294      4,229
                                 ------------ --------- ---------  ---------

Income from operations                  8,850     8,515     3,518      2,808

Interest income, net                      562       557       146        163
Realized foreign exchange gain              -        17       (10)         4
                                 ------------ --------- ---------  ---------
Income before income tax
 provision                              9,412     9,089     3,654      2,975
Provision for income taxes              3,019     3,600     1,151      1,172

                                 ------------ --------- ---------  ---------
Net income                       $      6,393 $   5,489 $   2,503  $   1,803
                                 ============ ========= =========  =========

Net income per common share -
 Basic                           $       1.44 $    1.23 $    0.56  $    0.40
                                 ============ ========= =========  =========
Net income per common share -
 Diluted                         $       1.41 $    1.19 $    0.55  $    0.39
                                 ============ ========= =========  =========

Weighted average common shares
 outstanding - Basic                    4,454     4,476     4,444      4,502
                                 ============ ========= =========  =========
Weighted average common shares
 outstanding - Diluted                  4,526     4,628     4,521      4,622
                                 ============ ========= =========  =========

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
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive ad...
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
Security, data privacy, reliability and regulatory compliance are critical factors when evaluating whether to move business applications from in-house client hosted environments to a cloud platform. In her session at 18th Cloud Expo, Vandana Viswanathan, Associate Director at Cognizant, In this session, will provide an orientation to the five stages required to implement a cloud hosted solution validation strategy.
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...