Wayside Technology Group, Inc. Reports 2017 First Quarter Results and Declares Quarterly Dividend
April 27 2017 - 5:00PM
Q1 2017: |
Revenue: |
$112.8 million |
Income from
operations: |
$1.8 million |
Net income: |
$1.3 million |
Diluted earnings per
share: |
$0.30 per share |
Dividend declared - $0.17 per share
Wayside Technology Group, Inc. (NASDAQ:WSTG) today announced
financial results for the first quarter ended March 31,
2017.
The results will be discussed in a
conference call to be held on Friday, April 28, 2017 at 10:00 a.m.
EDT. The dial-in telephone number is (844) 683-0552 and the
pass code is “WSTG.” This conference call will be webcast by
NASDAQ OMX and can be accessed at Wayside Technology’s website at
www.waysidetechnology.com/site/content/webcasts.
Net income for the quarter ended March 31, 2017
increased 28% to $1.3 million, compared to $1.0 million during same
period last year.
Diluted earnings per share for the quarter ended
March 31, 2017 increased 35% to $0.30, compared to $0.22, for the
same period in 2016.
On April 26, 2017, the Board of Directors
declared a quarterly dividend of $0.17 per share of its common
stock payable May 17, 2017 to shareholders of record on May 10,
2017.
“We are very pleased to report a great first
quarter of 2017,” said Simon F. Nynens, Chairman and Chief
Executive Officer. “In cooperation with our vendor partners we
continue to offer innovative security, virtualization and cloud
solutions to our customers. As an entrepreneurial and flexible
specialty distributor, we meet the demands of our partners in these
high growth markets. In addition, we will continue to utilize our
capital to maximize our shareholder return in 2017. We paid
dividends now for 57 consecutive quarters and during this quarter
we bought back 95,015 shares of our stock.”
Operating Results:
Net sales for the quarter ended March 31, 2017
increased 21% to $112.8 million compared to $93.3 million for the
same period in 2016. Lifeboat Distribution segment net sales for
the quarter ended March 31, 2017 increased 21% to $104.5 million,
compared to $86.3 million for the same period in 2016. TechXtend
segment net sales for the quarter ended March 31, 2017 increased
19% to $8.3 million, compared to $7.0 million for the same period
in 2016. Gross profit for the quarter ended March 31, 2017
increased 14% to $6.8 million compared to $6.0 million for the same
period in 2016. Lifeboat Distribution segment gross profit for the
quarter ended March 31, 2017 increased 13% to $5.8 million,
compared to $5.2 million in the same period in 2016. TechXtend
segment gross profit for the first quarter of 2017 increased 15% to
$0.9 million, compared to $0.8 million in 2016.
Gross profit margin (gross profit as a
percentage of net sales) for the quarter ended March 31, 2017
decreased by 0.4 percentage points to 6.0%, compared to 6.4% for
the same period in 2016. Lifeboat Distribution segment gross profit
margin for the quarter ended March 31, 2017 decreased by 0.4
percentage points to 5.6%, compared to 6.0% for the same period
last year. TechXtend segment gross profit margin for the quarter
ended March 31, 2017 decreased 0.5 percentage points to 11.0%,
compared to 11.5% for the same period in 2016.
Total selling, general, and administrative
(“SG&A”) expenses for the quarter ended March 31, 2017
increased 11% to $5.0 million, compared to $4.5 million for the
same quarter of 2016. The increase in general and administrative
expenses is primarily due to increased employee related expenses to
support our growth. SG&A expenses as a percentage of net sales
were 4.4% in 2017 compared to 4.8% in 2016.
For the first quarter ended March 31, 2017, the
Company recorded a provision for income taxes of $0.6 million.
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 Bluebeam Software, Dell/Dell
Software, erwin, ExaGrid Systems, Flexera Software, Hewlett
Packard, Infragistics, Intel Software, Lenovo, Micro Focus,
Microsoft, Mindjet, Samsung, SmartBear Software, SolarWinds,
Sophos, StorageCraft Technology, Super Micro Computer, Inc.,
TechSmith, 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 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, 2017 |
|
December 31, 2016 |
|
|
(unaudited) |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
Current
assets |
|
|
|
|
Cash and cash
equivalents |
$ |
11,090 |
|
|
$ |
13,524 |
|
|
Accounts receivable,
net |
|
68,865 |
|
|
|
83,317 |
|
|
Inventory, net |
|
2,461 |
|
|
|
2,324 |
|
|
Prepaid expenses and
other current assets |
|
877 |
|
|
|
948 |
|
Total
current assets |
|
83,293 |
|
|
|
100,113 |
|
|
|
|
|
|
Equipment
and leasehold improvements, net |
|
1,999 |
|
|
|
1,937 |
|
Accounts
receivable long-term |
|
10,917 |
|
|
|
11,119 |
|
Other
assets |
|
225 |
|
|
|
113 |
|
Deferred
income taxes |
|
455 |
|
|
|
416 |
|
|
|
|
|
|
Total
assets |
$ |
96,889 |
|
|
$ |
113,698 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
Current
liabilities |
|
|
|
|
Accounts payable and
accrued expenses |
$ |
59,983 |
|
|
$ |
76,087 |
|
Total
current liabilities |
|
59,983 |
|
|
|
76,087 |
|
|
|
|
|
|
|
|
|
|
|
Commitments
and contingencies |
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
Common
stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 |
|
|
|
shares issued, and
4,538,995 and 4,555,434 shares outstanding, respectively |
|
53 |
|
|
|
53 |
|
|
Additional paid-in
capital |
|
29,730 |
|
|
|
30,683 |
|
|
Treasury stock, at
cost, 745,505 and 729,066 shares, respectively |
|
(12,455 |
) |
|
|
(12,029 |
) |
|
Retained earnings |
|
21,057 |
|
|
|
20,515 |
|
|
Accumulated other
comprehensive loss |
|
(1,479 |
) |
|
|
(1,611 |
) |
Total
stockholders' equity |
|
36,906 |
|
|
|
37,611 |
|
Total
liabilities and stockholders' equity |
$ |
96,889 |
|
|
$ |
113,698 |
|
|
WAYSIDE TECHNOLOGY GROUP, INC. AND
SUBSIDIARIES |
|
CONDENSED CONSOLIDATED STATEMENTS OF
EARNINGS |
|
(Amounts in thousands, except per share
data) |
|
|
|
|
|
|
|
Three months ended |
|
|
March 31, |
|
|
|
2017 |
|
|
2016 |
|
|
(Unaudited) |
Revenues |
|
|
|
|
Lifeboat segment |
$ |
104,483 |
|
$ |
86,340 |
|
TechXtend segment |
|
8,313 |
|
|
6,983 |
|
Total Revenue |
|
112,796 |
|
|
93,323 |
|
|
|
|
|
Cost of
sales |
|
|
|
|
Lifeboat segment |
|
98,640 |
|
|
81,187 |
|
TechXtend segment |
|
7,397 |
|
|
6,183 |
|
Total Cost of
sales |
|
106,037 |
|
|
87,370 |
|
|
|
|
|
Gross
Profit |
|
6,759 |
|
|
5,953 |
|
|
|
|
|
Operating
expenses |
|
|
|
|
Selling costs |
|
2,578 |
|
|
2,322 |
|
Share-based
compensation |
|
347 |
|
|
399 |
|
Other general and
administrative expenses |
|
2,042 |
|
|
1,739 |
Total
Selling, general and administrative expenses |
|
4,967 |
|
|
4,460 |
|
|
|
|
|
Income from
operations |
|
1,792 |
|
|
1,493 |
|
|
|
|
|
Interest,
net |
|
148 |
|
|
64 |
Income
before provision for income taxes |
|
1,940 |
|
|
1,557 |
Provision
for income taxes |
|
621 |
|
|
528 |
|
|
|
|
|
Net
income |
$ |
1,319 |
|
$ |
1,029 |
|
|
|
|
|
Income per
common share - Basic |
$ |
0.30 |
|
$ |
0.23 |
Income per
common share - Diluted |
$ |
0.30 |
|
$ |
0.22 |
|
|
|
|
|
Weighted
average common shares outstanding - Basic |
|
4,343 |
|
|
4,565 |
Weighted
average common shares outstanding - Diluted |
|
4,359 |
|
|
4,580 |
|
|
|
|
Dividends
paid per common share |
$ |
0.17 |
|
$ |
0.17 |
Investor Relations Contact:
Michael Vesey, Vice President and Chief Financial Officer
Wayside Technology Group, Inc.
(732) 389-0932
michael.vesey@waysidetechnology.com
Wayside Technology (NASDAQ:WSTG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Wayside Technology (NASDAQ:WSTG)
Historical Stock Chart
From Apr 2023 to Apr 2024