Wayside Technology Group, Inc. Reports 2009 Third Quarter Results and Declares Quarterly Dividend
SHREWSBURY, NJ -- (MARKET WIRE) -- 10/29/09 -- Wayside Technology Group, Inc. (NASDAQ: WSTG) today reported financial results for the third quarter ended September 30, 2009. The results will be discussed in a conference call to be held on Friday, October 30, 2009 at 10:00 AM Eastern time. The dial-in telephone number is (866) 238-0637 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 be available on the company's website at www.waysidetechnology.com.
Net income for the third quarter of 2009 amounted to $598,000 or 1.7% of net sales as compared to $811,000 or 1.8% for the same period in 2008.
Cash and marketable securities amount to $14.1 million, representing 57% of equity as of September 30, 2009. The company has no debt.
Total net sales for the third quarter of 2009 amounted to $35.3 million, compared to $45.4 million for the same period in 2008. Sales for the third quarter of 2009 for the Lifeboat segment were $23.8 million compared to $30.1 million in the third quarter of 2008. Excluding VMware, Lifeboat's sales increased by $1.9 million, or 9% compared to the third quarter of 2008. Sales for the third quarter of 2009 for the Programmer's Paradise segment were $11.5 million, compared to $15.3 million in the third quarter of 2008.
Total gross profit for the third quarter of 2009 amounted to $3.7 million, compared to $4.3 million for the same period in 2008. Gross profit for the third quarter of 2009 for the Lifeboat segment was $2.3 million, compared to $2.6 million in the third quarter of 2008. Gross profit for the third quarter of 2009 for the Programmer's Paradise segment was $1.4 million, compared to $1.6 million in the third quarter of 2008. Gross profit dollars decreased in both segments primarily due to the lower sales volume.
Total gross profit, as a percentage of net sales, for the quarter ending September 30, 2009, was 10.5%, compared to 9.4% in the third quarter of 2008.
"I'm pleased with our solid third quarter results," said Simon F. Nynens, Chairman and Chief Executive Officer. "We performed well in a continued tough economic climate. We strengthened our position in the software distribution market and continued to sign on new vendors. We also maintained our focus on costs, which allowed us to drive a solid earnings performance."
Total selling, general, and administrative ("SG&A") expenses for the third quarter of 2009 were $2.7 million compared to $3.0 million in the third quarter of 2008.
On October 27, 2009, the Board of Directors declared a quarterly dividend of $.15 per share of its common stock payable November 20, 2009 to shareholders of record on November 13, 2009.
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 such as Microsoft, CA, IBM, VMware, Quest Software, DataCore, Embarcadero Technologies, SAP BusinessObjects, Intel, Compuware, Infragistics, SolarWinds, Flexera Software (publishers of InstallShield), and Adobe.
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.
WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
September 30, December 31,
2009 2008
------------ ------------
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 6,223 $ 9,349
Marketable securities 7,839 9,367
Accounts receivable, net 22,430 16,940
Inventory - finished goods 1,147 1,058
Prepaid expenses and other current assets 652 776
Deferred income taxes 651 712
------------ ------------
Total current assets 38,942 38,202
Equipment and leasehold improvements, net 504 549
Accounts Receivable Long-Term 5,762 7,860
Other assets 40 66
Deferred income taxes 511 808
------------ ------------
Total assets $ 45,759 $ 47,485
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $ 21,225 $ 23,396
------------ ------------
Total current liabilities 21,225 23,396
Other liabilities 78 205
------------ ------------
Total liabilities 21,303 23,601
Commitments and contingencies
Stockholders' equity
Common stock, $.01 par value; 10,000,000
shares authorized, 5,284,500 shares
issued, and 4,767,818 and 4,643,662 shares
outstanding, respectively 53 53
Additional paid-in capital 24,600 26,636
Treasury stock, at cost, 516,682 shares and
640,838 shares, respectively (2,959) (3,383)
Retained earnings 2,534 567
Accumulated other comprehensive income 228 11
------------ ------------
Total stockholders' equity 24,456 23,884
------------ ------------
Total liabilities and stockholders' equity $ 45,759 $ 47,485
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WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE
INCOME
(Unaudited)
(In thousands, except per share data)
Nine months ended Three months ended
September 30, September 30,
2009 2008 2009 2008
--------- ---------- ---------- ---------
Net Sales $ 104,092 $ 133,994 $ 35,310 $ 45,392
Cost of sales 92,850 121,698 31,616 41,139
--------- ---------- ---------- ---------
Gross profit 11,242 12,296 3,694 4,253
Selling, general and
administrative expenses 8,303 9,059 2,741 3,043
--------- ---------- ---------- ---------
Income from operations 2,939 3,237 953 1,210
Interest income, net 403 549 128 173
Realized foreign exchange gain
(loss) (1) 6 - (1)
--------- ---------- ---------- ---------
Income before income tax
provision 3,341 3,792 1,081 1,382
Provision for income taxes 1,374 1,529 483 571
--------- ---------- ---------- ---------
Net income $ 1,967 $ 2,263 $ 598 $ 811
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Net income per common share -
Basic $ 0.45 $ 0.51 $ 0.14 $ 0.18
========= ========== ========== =========
Net income per common share -
Diluted $ 0.44 $ 0.50 $ 0.13 $ 0.18
========= ========== ========== =========
Weighted average common shares
outstanding - Basic 4,400 4,422 4,415 4,408
========= ========== ========== =========
Weighted average common shares
outstanding - Diluted 4,427 4,491 4,444 4,438
========= ========== ========== =========
Released October 29, 2009