WAYSIDE TECHNOLOGY GROUP, INC. REPORTS 2011 FOURTH QUARTER RESULTS AND DECLARES QUARTERLY DIVIDEND
- 4th quarter revenue: $74.2 million, up 14% year-over-year
- 2011 revenue: $250.2 million, up 21% year-over-year
- 4th quarter income from operations $3.1 million, up 29% year-over-year
- 2011 income from operations: $8.6 million, up 27% year-over-year
- 2011 diluted earnings per share: $ 1.20 per share, up 22% year-over-year
- $.16 quarterly dividend declared
SHREWSBURY, NJ, February 2, 2012 Wayside Technology Group, Inc. (NASDAQ: WSTG) today reported financial results for the fourth quarter ended December 31, 2011. The results will be discussed in a conference call to be held on Friday, February 3, 2012 at 10:00 AM Eastern time. The dial-in telephone number is (866) 804-3547 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 companys website at www.waysidetechnology.com.
Cash and marketable securities amounted to $14.6 million, representing 50% of equity as of December 31, 2011.
Net sales for the fourth quarter of 2011 increased 14% or $9.3 million to $74.2 million compared to $64.9 million for the same period in 2010. Total sales for the fourth quarter of 2011 for our Lifeboat segment were $55.1 million compared to $45.8 million in the fourth quarter of 2010, representing a 20% increase. Total sales for the fourth quarter of 2011 for our TechXtend segment were $19.1 million compared to $19.1 million in the fourth quarter of 2010.
Net sales for 2011 increased 21% or $43.4 million to $250.2 million compared to $206.7 million in 2010. Total sales for our Lifeboat segment in 2011 were $192.7 million compared to $149.2 million in 2010, representing a 29% increase. Total sales for the TechXtend segment in 2011 amounted to $57.4 million, compared to $57.6 million in 2010.
The fourth quarter of 2011 was a great 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 very satisfied with our service model, as we continue to expand our offerings.
The increase in net sales for the three month and full year periods ended December 31, 2011 compared to the same periods in 2010, was mainly a result of our continued focus on the expanding virtual
infrastructure-centric business, the strengthening of our account penetration and the addition of several key product lines.
Gross Profit for the quarter ended December 31, 2011 was $7.1 million compared to $6.2 million for the fourth quarter of 2010, a 13% increase. Total gross profit for our Lifeboat segment was $5.0 million compared to $4.3 million in the fourth quarter of 2010, representing a 17% 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 TechXtend segment was $2.1 million compared to $1.9 million in the fourth quarter of 2010, representing a 6% increase. This increase was primarily due to the increased margins on equal fourth quarter sales. Vendor rebates and discounts for the quarter ended December 31, 2011 amounted to $0.8 million compared to $1.0 million for the fourth quarter of 2010.
Gross Profit for 2011 was $23.2 million compared to $20.0 million in 2010, a 16% increase. Total gross profit for our Lifeboat segment was $16.8 million compared to $13.7 million in 2010, representing a 23% increase. Total gross profit for our TechXtend segment was $6.4 million compared to $6.3 million in 2010, representing a 2% increase. Vendor rebates and discounts for 2011 amounted to $2.9 million compared to $2.7 million for 2010.
Gross profit margin, as a percentage of net sales, for 2011 was 9.3% compared to 9.7% in 2010.
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, continued pressure on discounts and rebates earned, 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 2011 were $4.0 million, compared to $3.8 million in the fourth quarter of 2010. This increase is mainly due to an increase in employee related expenses (salaries, commissions, bonus accruals and benefits) of $0.2 million.
On January 31, 2012, the Board of Directors declared a quarterly dividend of $.16 per share of its common stock payable February 17, 2012 to shareholders of record on February 7, 2012.
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 Acronis, Astaro, CA Technologies, DataCore, Doyenz, Flexera Software, GFI, Hewlett Packard, Intel Software, Lenovo, Microsoft, Mindjet, Oracle, 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 Companys 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 Companys 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
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WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
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