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 amount to $15.5 million, representing 58% of equity as of December 31, 2010.
Net sales for the fourth quarter of 2010 increased 54% or $22.6 million to $64.9 million compared to $42.3 million for the same period in 2009. Total sales for the fourth quarter of 2010 for our Lifeboat segment were $45.8 million compared to $28.9 million in the fourth quarter of 2009, representing a 58% increase. Total sales for the fourth quarter of 2010 for our Programmer's Paradise segment were $19.1 million compared to $13.4 million in the fourth quarter of 2009, representing a 43% increase.
Net sales for 2010 increased 41% or $60.3 million to $206.7 million compared to $146.4 million in 2009. Total sales for our Lifeboat segment were $149.2 million compared to $98.1 million in 2009, representing a 52% increase. Total sales for the Programmer's Paradise segment in 2010 amounted to $57.6 million, compared to $48.3 million in 2009, representing a 19% increase.
"The fourth quarter of 2010 was a tremendous success for us," said Simon F. Nynens, Chairman and Chief Executive Officer. "Our continued high growth rate shows that software publishers and our customers are exceedingly satisfied with our service model, as we continue to expand our offerings."
Gross Profit for the quarter ended December 31, 2010 was $6.2 million compared to $4.4 million for the fourth quarter of 2009, a 43% increase. Total gross profit for our Lifeboat segment was $4.3 million compared to $3.1 million in the fourth quarter of 2009, representing a 39% increase. This increase in gross profit was due to aggressive sales volume growth within our Lifeboat segment, as well as vendor rebates and discounts earned. Total gross profit for our Programmer's Paradise segment was $1.9 million compared to $1.3 million in the fourth quarter of 2009, representing a 53% increase. This increase was primarily due to the increased sales volume. Vendor rebates and discounts for the quarter ended December 31, 2010 amounted to $0.9 million compared to $0.4 million for the fourth quarter of 2009, mainly a result of our aggressive sales growth.
Gross Profit for 2010 was $20.0 million compared to $15.6 million in 2009, a 28% increase. Total gross profit for our Programmer's Paradise segment was $6.3 million compared to $5.7 million in 2009, representing a 12% increase. Total gross profit for our Lifeboat segment was $13.7 million compared to $9.9 million in 2009, representing a 38% increase. Vendor rebates and discounts for 2010 amounted to $2.4 million compared to $1.0 million for 2009, mainly a result of our aggressive sales growth.
Total gross profit, as a percentage of net sales, for the fourth quarter of 2010 was 9.6%, compared to 10.3% in the fourth quarter of 2009.
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 fourth quarter of 2010 were $3.8 million, compared to $3.0 million in the fourth quarter of 2009. This increase is mainly due to an increase in employee related expenses (salaries, commissions, bonus accruals and benefits) of $0.6 million.
On February 1, 2011, the Board of Directors declared a quarterly dividend of $.16 per share of its common stock payable February 18, 2011 to shareholders of record on February 8, 2011.
About Wayside Technology Group, Inc.
Wayside Technology Group, Inc. (NASDAQ:WSTG - News) 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, DataCore, Dell, Flexera Software (publishers of InstallShield), GFI, Hewlett Packard, Infragistics, Intel Software, Microsoft, Mindjet, Quest Software, SolarWinds, StorageCraft Technology, TechSmith, Veeam, 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
(In thousands, except share amounts)
December 31, December 31,
2010 2009
------------ ------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 10,955 $ 8,560
Marketable securities 4,528 7,571
Accounts receivable, net 42,486 27,040
Inventory - finished goods 1,164 967
Prepaid expenses and other current assets 1,250 998
Deferred income taxes 516 677
------------ ------------
Total current assets 60,899 45,813
Equipment and leasehold improvements, net 545 432
Accounts receivable long-term 6,866 6,901
Other assets 37 38
Deferred income taxes 336 483
------------ ------------
Total assets $ 68,683 $ 53,667
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $ 41,791 $ 29,230
Current portion - capital lease obligation 75 -
------------ ------------
Total current liabilities 41,866 29,230
Long term portion - capital lease obligation 138 -
Other liabilities - 78
------------ ------------
Total liabilities 42,004 29,308
------------ ------------
Commitments and contingencies
Stockholders' equity
Common stock, $.01 par value; 10,000,000
shares authorized, 5,284,500 shares
issued, and 4,770,241 and 4,688,844 shares
outstanding, respectively 53 53
Additional paid-in capital 25,473 24,826
Treasury stock, at cost, 514,259 and 595,656
shares, respectively (3,570) (3,555)
Retained earnings 4,267 2,727
Accumulated other comprehensive income 456 308
------------ ------------
Total stockholders' equity 26,679 24,359
------------ ------------
Total liabilities and stockholders' equity $ 68,683 $ 53,667
============ ============
WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
Year ended Three months ended
December 31, December 31,
2010 2009 2010 2009
--------- --------- -------- ---------
(Unaudited) (Unaudited)
Revenues
Lifeboat segment $ 149,151 $ 98,058 $ 45,814 $ 28,927
Programmer's Paradise segment 57,579 48,326 19,122 13,365
--------- --------- -------- ---------
Total Revenue 206,730 146,384 64,936 42,292
Cost of sales
Lifeboat segment 135,448 88,117 41,538 25,849
Programmer's Paradise segment 51,272 42,674 17,175 12,092
--------- --------- -------- ---------
Total Cost of sales 186,720 130,791 58,713 37,941
--------- --------- -------- ---------
Gross Profit 20,010 15,593 6,223 4,351
Operating expenses
Selling costs 6,867 5,516 2,010 1,508
Stock based compensation 1,187 893 295 236
Other general and administrative
expenses 5,153 4,910 1,531 1,272
--------- --------- -------- ---------
Total Selling, general and
administrative expenses 13,207 11,319 3,836 3,016
--------- --------- -------- ---------
Income from operations 6,803 4,274 2,387 1,335
Interest income, net 405 521 89 118
Realized foreign exchange gain
(loss) 2 - (1) 1
--------- --------- -------- ---------
Income before income tax provision 7,210 4,795 2,475 1,454
Provision for income taxes 2,789 1,928 990 554
--------- --------- -------- ---------
Net income $ 4,421 $ 2,867 $ 1,485 $ 900
========= ========= ======== =========
Net income per common share -
Basic $ 1.01 $ 0.65 $ 0.34 $ 0.20
========= ========= ======== =========
Net income per common share -
Diluted $ 0.98 $ 0.65 $ 0.33 $ 0.20
========= ========= ======== =========
Weighted average common shares
outstanding - Basic 4,386 4,399 4,405 4,397
========= ========= ======== =========
Weighted average common shares
outstanding - Diluted 4,500 4,427 4,569 4,430
========= ========= ======== =========Disclosure I am long WSTG shares.
Interesing stock chart.
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