Your Ad Here

Sunday, February 13, 2011

Wayside Technology Group, Inc. Reports 2010 Fourth Quarter Results and Declares Quarterly Dividend

Wayside Technology Group, Inc. (NASDAQ:WSTG - News) today reported financial results for the fourth quarter ended December 31, 2010. The results will be discussed in a conference call to be held on Friday, February 4, 2011 at 10:00 AM Eastern time. The dial-in telephone number is (866) 835 8907 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.
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."
Sales for both segments showed strong growth. The increase in net sales for the three months and full year results for the period ended December 31, 2010, compared to the same periods in 2009, was mainly a result of our continued focus on the expanding virtual infrastructure-centric business, the addition of several key product lines, and the strengthening of our account penetration.

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.  

1 comment: