Press release
Wayside Technology Group Reports Third Quarter 2021 Results
Continued Sales Momentum Drives 56% Increase in Gross Profit; Operating Leverage More Than Doubles Net Income and Adjusted EBITDA EATONTOWN, N.J., Nov. 03,
About this update from Climb Global Solutions, Inc.
[{"type":"text","content":"Continued Sales Momentum Drives 56% Increase in Gross Profit; Operating Leverage More Than Doubles Net Income and Adjusted EBITDA\nEATONTOWN, N.J., Nov. 03, 2021 (GLOBE NEWSWIRE) -- Wayside Technology Group, Inc. (NASDAQ: WSTG) (“Wayside” or the “Company”), a value-added global IT channel company providing innovative sales and distribution solutions for emerging technology vendors, is reporting results for the third quarter ended September 30, 2021. Third Quarter 2021 Highlights vs. Year-Ago Quarter Net sales increased 13% to $68.9 million.Adjusted gross billings (a non-GAAP financial measure defined below) increased 33% to $226.9 million.Gross profit increased 56% to a record $11.3 million.Net income increased more than 4x to $2.4 million or $0.55 per diluted share.Adjusted EBITDA (a non-GAAP financial measure defined below) more than doubled to a record $4.2 million. Management Commentary “Our third quarter results reflect another period of strong growth and profitability resulting from organic growth initiatives and the integration of CDF, which was acquired in November of last year,” said CEO Dale Foster. “Excluding CDF from our Q3 results, gross profit would have still increased more than 20% as we continue to successfully deepen relationships with existing vendors and customers while vetting new emerging technologies to add to our line card. In fact, we increased billings with nine out of our top ten vendors during the quarter. “Looking ahead to what is typically our strongest quarter of the year, we expect to exit 2021 on another high note in the fourth quarter and carry our momentum into next year. The investments we have made in our business over the past several quarters are beginning to generate solid operating leverage and bottom-line margin expansion; however, we still have room to further improve. We are also actively identifying acquisition opportunities that can enhance our geographic footprint, service and solution offerings, and we look forward to executing on that initiative in the quarters ahead.” Dividend Subsequent to the quarter end, on November 2, 2021, Wayside’s board of directors declared a quarterly dividend of $0.17 per share of its common stock payable on November 19, 2021 to shareholders of record on November 15, 2021. Third Quarter 2021 Financial Results Net sales in the third quarter of 2021 incre...