Wayside Technology Group, Inc. Reports 2017 Second Quarter Results and Declares Quarterly Dividend
|Income from operations:||$1.7 million|
|Net income:||$1.3 million|
|Diluted earnings per share:||$0.30 per share|
|Dividend declared - $0.17 per share|
EATONTOWN, N.J., July 27, 2017 (GLOBE NEWSWIRE) -- Wayside Technology Group, Inc. (NASDAQ:WSTG) today announced financial results for the second quarter ended June 30, 2017. The results will be discussed in a conference call to be held on Friday, July 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.
“We are pleased to report solid financial results. Our Lifeboat Distribution segment continued to deliver year over year sales growth, while our TechXtend division was down as compared to an exceptionally strong quarter last year. We see opportunities for growth in the remainder of this year,” said Simon F. Nynens, Chairman and Chief Executive Officer. “On a year to date basis, our earnings per share are up $0.04 or 7%.”
Net sales for the quarter ended June 30, 2017 decreased 2% to $103.0 million compared to $105.3 million for the same period in 2016 as growth in our Lifeboat Distribution segment was offset by a decline in TechXtend due to quarterly variability in enterprise account sales. Lifeboat Distribution segment net sales for the quarter ended June 30, 2017 increased 7% to $95.7 million, compared to $89.7 million for the same period in 2016. TechXtend segment net sales for the quarter ended June 30, 2017 decreased 53% to $7.3 million, compared to $15.6 million for the same period in 2016. The decrease was primarily due to a large enterprise sale of approximately $7.0 million recorded in the second quarter of 2016 which affects the comparability of results. Sales in our TechXtend segment may vary significantly from quarter to quarter based on the timing of IT spending decisions by our larger customers. Gross profit for the quarter ended June 30, 2017 decreased 6% to $6.6 million compared to $7.0 million for the same period in 2016. Lifeboat Distribution segment gross profit for the quarter ended June 30, 2017 increased 1% to $5.6 million, compared to $5.5 million in the same period in 2016. TechXtend segment gross profit for the second quarter of 2017 decreased 34% to $1.0 million, compared to $1.5 million in 2016.
Gross profit margin (gross profit as a percentage of net sales) for the quarter ended June 30, 2017 decreased by 0.3 percentage points to 6.4%, compared to 6.7% for the same period in 2016. Lifeboat Distribution segment gross profit margin for the quarter ended June 30, 2017 decreased by 0.3 percentage points to 5.9%, compared to 6.2% for the same period last year. TechXtend segment gross profit margin for the quarter ended June 30, 2017 increased 3.8 percentage points to 13.1%, compared to 9.3% for the same period in 2016.
Total selling, general, and administrative (“SG&A”) expenses for the quarter ended June 30, 2017 increased 2% or $0.1 million over the same quarter last year to $4.8 million. 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 4.7% in 2017 compared to 4.5% in 2016 as a result of the lower TechXtend sales.
Net income for the quarter ended June 30, 2017 decreased 16% to $1.3 million, compared to $1.5 million during the same period last year. Diluted earnings per share for the quarter ended June 30, 2017 decreased 12% to $0.30, compared to $0.34, for the same period in 2016.
On July 25, 2017, the Board of Directors declared a quarterly dividend of $0.17 per share of its common stock payable August 18, 2017 to shareholders of record on August 11, 2017.
For the quarter ended June 30, 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 Bit Defender, 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 –
Investor Relations Contact:
Michael Vesey, Vice President and Chief Financial Officer
Wayside Technology Group, Inc.
|WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|(Amounts in thousands, except share and per share amounts)|
|Cash and cash equivalents||$||9,729||$||13,524|
|Accounts receivable, net of allowances of $2,751 and $2,293, respectively||63,010||83,317|
|Prepaid expenses and other current assets||1,212||948|
|Total current assets||76,300||100,113|
|Equipment and leasehold improvements, net||1,993||1,937|
|Accounts receivable long-term||11,969||11,119|
|Deferred income taxes||444||416|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accounts payable and accrued expenses||$||53,543||$||76,087|
|Total current liabilities||53,543||76,087|
|Commitments and contingencies|
|Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares|
|issued, and 4,513,205 and 4,555,434 shares outstanding, respectively||53||53|
|Additional paid-in capital||29,944||30,683|
|Treasury stock, at cost, 771,295 and 729,066 shares, respectively||(12,963||)||(12,029||)|
|Accumulated other comprehensive loss||(1,225||)||(1,611||)|
|Total stockholders' equity||37,377||37,611|
|Total liabilities and stockholders' equity||$||90,920||$||113,698|
|WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS|
|(Amounts in thousands, except per share data)|
|Six months ended||Three months ended|
|June 30,||June 30,|
|(Unaudited )||(Unaudited )|
|Cost of sales|
|Total Cost of sales||202,447||185,628||96,410||98,257|
|Other general and administrative expenses||3,942||3,719||1,898||1,980|
|Total Selling, general and administrative expenses||9,810||9,216||4,842||4,756|
|Income from operations||3,521||3,736||1,730||2,244|
|Interest income, net||321||125||173||61|
|Foreign currency transaction (loss)||(50||)||(3||)||(50||)||(3||)|
|Income before provision for income taxes||3,792||3,858||1,853||2,302|
|Provision for income taxes||1,200||1,303||578||775|
|Income per common share - Basic||$||0.60||$||0.56||$||0.30||$||0.34|
|Income per common share - Diluted||$||0.60||$||0.56||$||0.30||$||0.34|
|Weighted average common shares outstanding - Basic||4,314||4,545||4,285||4,524|
|Weighted average common shares outstanding - Diluted||4,337||4,557||4,315||4,535|
Released July 27, 2017