 | Company Contact: Kevin Scull Wayside Technology Group, Inc. Vice President and Chief Accounting Officer (732) 389-0932 kevin.scull@waysidetechnology.com |
WAYSIDE TECHNOLOGY GROUP, INC. REPORTS 2009 FIRST QUARTER
RESULTS AND DECLARES QUARTERLY DIVIDEND
- Income from operations $0.8 million, up 2% year-over-year
SHREWSBURY, NJ, April 30, 2009 – Wayside Technology Group, Inc. (NASDAQ: WSTG) today reported financial results for the first quarter ended March 31, 2009. The results will be discussed in a conference call to be held on Friday, May 1, 2009 at 10:00 AM Eastern time. The dial-in telephone number is (866) 238-0826 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 our website at www.waysidetechnology.com.
Total net sales for the first quarter of 2009 amounted to $31.8 million, compared to $40.5 million for the same period in 2008. Sales for the first quarter of 2009 for our Lifeboat segment were $20.2 million compared to $29.3 million in the first quarter of 2008, representing a 31% decrease. Excluding VMware, Lifeboat’s sales increased by $0.1 million, or 1% compared to the first quarter of 2008. Sales for the first quarter of 2009 for our Programmer’s Paradise segment were $11.5 million, compared to $11.2 million in the first quarter of 2008, representing a 3% increase.
Total gross profit for the first quarter of 2009 amounted to $3.5 million, compared to $3.7 million for the same period in 2008. Gross profit for the first quarter of 2009 for our Lifeboat segment was $2 million, compared to $2.4 million in the first quarter of 2008, representing a 16% decrease. Gross profit for the first quarter of 2009 for our Programmer’s Paradise segment was $1.5 million, compared to $1.4 million in the first quarter of 2008, representing an 8% increase.
Total gross profit, as a percentage of net sales, for the quarter ending March 31, 2009, was 10.9%, compared to 9.3% in the first quarter of 2008.
Cash and marketable securities amount to $17 million, representing 71% of our equity as of March 31, 2009. We have no debt.
“In a recessionary business climate impacting every segment of the economy, we delivered solid first-quarter results” said Simon F. Nynens, Chairman and Chief Executive Officer.
Total selling, general, and administrative ("SG&A") expenses for the first quarter of 2009 were $2.7 million compared to $2.9 million in the first quarter of 2008.
Net income for the first quarter of 2009 amounted to $578,000 or 1.8% of net sales as compared to $629,000 or 1.6% for the same period in 2008.
On April 28, 2009, the Board of Directors declared a quarterly dividend of $.15 per share of its common stock payable May 20, 2009 to shareholders of record on May 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, Embarcadero Technologies, SAP Business Objects, Intel, Compuware, Infragistics, ComponentOne, Acresso Software, 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 include the continued acceptance of the Company’s distribution channel by vendors and customers, the timely availability and acceptance of new products, and contribution of key vendor relationships and support programs. 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.
–Tables Follow –
| WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES | |
| CONDENSED CONSOLIDATED BALANCE SHEETS | |
| (In thousands, except share and per share amounts) | |
| | | | | | | |
| | | | | | | |
| | | March 31, 2009 | | | December 31, 2008 | |
| | | (Unaudited) | | | | |
| | | | | | | |
| ASSETS | |
| | | | | | | |
| Current assets | | | | | | |
| Cash and cash equivalents | | $ | 7,216 | | | $ | 9,349 | |
| Marketable securities | | | 9,758 | | | | 9,367 | |
| Accounts receivable, net | | | 21,266 | | | | 16,940 | |
| Inventory - finished goods | | | 811 | | | | 1,058 | |
| Prepaid expenses and other current assets | | | 564 | | | | 776 | |
| Deferred income taxes | | | 672 | | | | 712 | |
| Total current assets | | | 40,287 | | | | 38,202 | |
| | | | | | | | | |
| Equipment and leasehold improvements, net | | | 527 | | | | 549 | |
| Accounts Receivable Long-Term | | | 6,064 | | | | 7,860 | |
| Other assets | | | 39 | | | | 66 | |
| Deferred income taxes | | | 735 | | | | 808 | |
| | | | | | | | | |
| Total assets | | $ | 47,652 | | | $ | 47,485 | |
| | | | | | | | | |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |
| | | | | | | | | |
| Current liabilities | | | | | | | | |
| Accounts payable and accrued expenses | | | 23,747 | | | | 23,396 | |
| Total current liabilities | | | 23,747 | | | | 23,396 | |
| | | | | | | | | |
| Other liabilities | | | 78 | | | | 205 | |
| Total liabilities | | | 23,825 | | | | 23,601 | |
| | | | | | | | | |
| Commitments and contingencies | | | | | | | | |
| | | | | | | | | |
| Stockholders' equity | | | | | | | | |
Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares issued, and 4,639,786 and 4,643,662 shares outstanding, respectively | | | 53 | | | | 53 | |
| Additional paid-in capital | | | 26,108 | | | | 26,636 | |
Treasury stock, at cost, 644,714 shares and 640,838 shares, respectively | | | (3,410 | ) | | | (3,383 | ) |
| Retained Earnings | | | 1,145 | | | | 567 | |
| Accumulated other comprehensive income (loss) | | | (69 | ) | | | 11 | |
| Total stockholders' equity | | | 23,827 | | | | 23,884 | |
| Total liabilities and stockholders' equity | | $ | 47,652 | | | $ | 47,485 | |
| WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES | |
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE | |
| INCOME | |
| (Unaudited) | |
| (In thousands, except per share data) | |
| | | | | | | |
| | | Three months ended | |
| | | March 31, | |
| | | 2009 | | | 2008 | |
| Net Sales | | $ | 31,750 | | | $ | 40,506 | |
| Cost of sales | | | 28,283 | | | | 36,761 | |
| Gross profit | | | 3,467 | | | | 3,745 | |
| Selling, general and administrative expenses | | | 2,651 | | | | 2,942 | |
| Income from operations | | | 816 | | | | 803 | |
| Interest income, net | | | 148 | | | | 234 | |
| Realized foreign exchange gain (loss) | | | (1 | ) | | | 3 | |
| Income before income tax provision | | | 963 | | | | 1,040 | |
| Provision for income taxes | | | 385 | | | | 411 | |
| Net income | | $ | 578 | | | $ | 629 | |
| Net income per common share - Basic | | $ | 0.13 | | | $ | 0.14 | |
| Net income per common share - Diluted | | $ | 0.13 | | | $ | 0.14 | |
| | | | | | | | | |
| Weighted average common shares outstanding - Basic | | | 4,386 | | | | 4,441 | |
| Weighted average common shares outstanding - Diluted | | | 4,413 | | | | 4,533 | |
| | | | | | | | | |
| Reconciliation to comprehensive income: | | | | | | | | |
| | | | | | | | | |
| Net income | | $ | 578 | | | $ | 629 | |
| Other comprehensive income (loss), net of tax: | | | | | | | | |
| Unrealized loss on marketable securities | | | (33 | ) | | | (8 | ) |
| Foreign currency translation adjustments | | | (47 | ) | | | (87 | ) |
| Total comprehensive income | | $ | 498 | | | $ | 534 | |
