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Q1 Net Sales up 40% to $62.6 million; Drives Strongest Quarterly Gross Profit in 20+ Years
Momentum Continues Through First Quarter Despite COVID-19
Eatontown, NJ – May 7, 2020 – Wayside Technology Group, Inc. (NASDAQ: WSTG) (“Wayside” or the “Company”), an IT channel company providing innovative sales and distribution solutions, is reporting results for the first quarter ended March 31, 2020.
First Quarter 2020 Highlights vs. Same Year-Ago Quarter
|●||Net sales increased 40% to $62.6 million.|
|●||Gross profit increased 13% to $8.2 million.|
|●||Net income was $0.8 million or $0.18 per share, compared to $1.5 million or $0.32 per share.|
|●||Net income excluding legal and financial advisory expenses - unsolicited bid and related matters and acquisition related costs, net of taxes (a non-GAAP financial measure defined below) was $2.1 million or $0.48 per share, compared to 1.5 million or $0.32 per share|
|●||Adjusted EBITDA (a non-GAAP financial measure defined below) increased 38% to $3.1 million.|
“Our first quarter results demonstrate that our momentum from last year has carried into 2020,” said Dale Foster, CEO of Wayside. “In fact, growth levels accelerated in Q1 with double-digit growth in gross profit and a nearly 40% increase in adjusted EBITDA, which reached a new quarterly record. Our end-market demand is high amidst the current stay-at-home and remote work mandates surrounding the COVID-19 pandemic. Even within this environment, the investments we have made to deepen customer relationships, expand our vendor network and bolster sales and marketing continue to drive our strong performance.
“Following the onset of COVID-19, we spent the second half of March pivoting our resources to support the health and safety of our employees. We have our entire workforce equipped to work remotely, and are operating at full capacity and strength as we seek to carry our momentum into Q2. Though our business has not been negatively impacted by this new COVID-19 environment to-date, we will plan to continue diligently managing our costs and operating structure in the wake of the pandemic’s unknown long-term effects on the broader economy.
“Subsequent to the first quarter, we acquired Interwork Technologies, a value-added specialty distributor focused on cybersecurity, information management and network solutions in both Canada and the US. This marks Wayside’s first use of M&A to accelerate growth in gross profit and adjusted EBITDA. Interwork brings an exceptional team operating in both the US and Canada, more than 20 new vendor partners, and a vast network of value-added resellers (VARs) that will provide ample cross-sell opportunities. We look forward to integrating Interwork with our Lifeboat platform and further expanding our distribution network.
The following information was filed by Wayside Technology Group, Inc. (WSTG) on Thursday, May 7, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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