SHREWSBURY, NJ--(Marketwire - Jan 31, 2013) - Wayside Technology Group, Inc. (
| 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. (
"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. (
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, 2012 | December 31, 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 | |||||||||