Q1 2017
Revenue: $112.8 million
Income from operations:  $1.8 million
Net income: $1.3 million
Diluted earnings per share:  $0.30 per share

Dividend declared - $0.17 per share

EATONTOWN, NJ, April 27, 2017 (GLOBE NEWSWIRE) -- Wayside Technology Group, Inc. (NASDAQ:WSTG) today announced financial results for the first quarter ended March 31, 2017.   The results will be discussed in a conference call to be held on Friday, April 28, 2017 at 10:00 a.m. EDT.  The dial-in telephone number is (844) 683-0552 and the pass code is "WSTG."  This conference call will be webcast by NASDAQ OMX and can be accessed at Wayside Technology's website at www.waysidetechnology.com/site/content/webcasts.

Net income for the quarter ended March 31, 2017 increased 28% to $1.3 million, compared to $1.0 million during same period last year. 

Diluted earnings per share for the quarter ended March 31, 2017 increased 35% to $0.30, compared to $0.22, for the same period in 2016. 

On April 26, 2017, the Board of Directors declared a quarterly dividend of $0.17 per share of its common stock payable May 17, 2017 to shareholders of record on May 10, 2017.

"We are very pleased to report a great first quarter of 2017," said Simon F. Nynens, Chairman and Chief Executive Officer. "In cooperation with our vendor partners we continue to offer innovative security, virtualization and cloud solutions to our customers. As an entrepreneurial and flexible specialty distributor, we meet the demands of our partners in these high growth markets. In addition, we will continue to utilize our capital to maximize our shareholder return in 2017. We paid dividends now for 57 consecutive quarters and during this quarter we bought back 95,015 shares of our stock."

Operating Results:

Net sales for the quarter ended March 31, 2017 increased 21% to $112.8 million compared to $93.3 million for the same period in 2016. Lifeboat Distribution segment net sales for the quarter ended March 31, 2017 increased 21% to $104.5 million, compared to $86.3 million for the same period in 2016. TechXtend segment net sales for the quarter ended March 31, 2017 increased 19% to $8.3 million, compared to $7.0 million for the same period in 2016. Gross profit for the quarter ended March 31, 2017 increased 14% to $6.8 million compared to $6.0 million for the same period in 2016. Lifeboat Distribution segment gross profit for the quarter ended March 31, 2017 increased 13% to $5.8 million, compared to $5.2 million in the same period in 2016. TechXtend segment gross profit for the first quarter of 2017 increased 15% to $0.9 million, compared to $0.8 million in 2016.

Gross profit margin (gross profit as a percentage of net sales) for the quarter ended March 31, 2017 decreased by 0.4 percentage points to 6.0%, compared to 6.4% for the same period in 2016. Lifeboat Distribution segment gross profit margin for the quarter ended March 31, 2017 decreased by 0.4 percentage points to 5.6%, compared to 6.0% for the same period last year. TechXtend segment gross profit margin for the quarter ended March 31, 2017 decreased 0.5 percentage points to 11.0%, compared to 11.5% for the same period in 2016.

Total selling, general, and administrative ("SG&A") expenses for the quarter ended March 31, 2017 increased 11% to $5.0 million, compared to $4.5 million for the same quarter of 2016. The increase in general and administrative expenses is primarily due to increased employee related expenses to support our growth. SG&A expenses as a percentage of net sales were 4.4% in 2017 compared to 4.8% in 2016.

For the first quarter ended March 31, 2017, the Company recorded a provision for income taxes of $0.6 million.

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 including Bluebeam Software, Dell/Dell Software, erwin, ExaGrid Systems, Flexera Software, Hewlett Packard, Infragistics, Intel Software, Lenovo, Micro Focus, Microsoft, Mindjet, Samsung, SmartBear Software, SolarWinds, Sophos, StorageCraft Technology, Super Micro Computer, Inc., TechSmith, Unitrends, Veeam Software and VMware.

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.

-Tables Follow -
WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share amounts)
         
    March 31, 2017   December 31, 2016
    (unaudited)    
         
ASSETS
         
Current assets      
  Cash and cash equivalents $   11,090     $   13,524  
  Accounts receivable, net   68,865         83,317  
  Inventory, net    2,461        2,324  
  Prepaid expenses and other current assets   877         948  
Total current assets     83,293         100,113  
         
Equipment and leasehold improvements, net    1,999        1,937  
Accounts receivable long-term     10,917       11,119  
Other assets     225       113  
Deferred income taxes     455       416  
         
Total assets $   96,889     $  113,698  
         
LIABILITIES AND STOCKHOLDERS' EQUITY
         
Current liabilities      
  Accounts payable and accrued expenses $   59,983     $   76,087  
Total current liabilities     59,983       76,087  
         
         
Commitments and contingencies      
         
Stockholders' equity      
  Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500    
  shares issued, and 4,538,995 and 4,555,434 shares outstanding, respectively    53        53  
  Additional paid-in capital   29,730         30,683  
  Treasury stock, at cost, 745,505 and 729,066 shares, respectively   (12,455 )       (12,029 )
  Retained earnings   21,057         20,515  
  Accumulated other comprehensive loss   (1,479 )     (1,611 )
Total stockholders' equity     36,906       37,611  
Total liabilities and stockholders' equity $   96,889     $  113,698  

  WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
  CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
  (Amounts in thousands, except per share data)
         
    Three months ended
    March 31,
      2017     2016
    (Unaudited)
Revenues      
  Lifeboat segment $   104,483   $  86,340
  TechXtend segment     8,313     6,983
  Total Revenue   112,796       93,323
         
Cost of sales      
  Lifeboat segment     98,640       81,187
  TechXtend segment     7,397     6,183
  Total Cost of sales   106,037       87,370
         
Gross Profit     6,759     5,953
         
Operating expenses      
  Selling costs     2,578     2,322
  Share-based compensation   347      399
  Other general and administrative expenses     2,042     1,739
Total Selling, general and administrative expenses     4,967     4,460
         
Income from operations     1,792     1,493
         
Interest, net   148       64
Income before provision for income taxes     1,940     1,557
Provision for income taxes   621      528
         
Net income $   1,319   $   1,029
         
Income per common share - Basic $   0.30   $   0.23
Income per common share - Diluted $   0.30   $   0.22
         
Weighted average common shares outstanding - Basic     4,343     4,565
Weighted average common shares outstanding - Diluted     4,359     4,580
       
Dividends paid per common share $ 0.17   $ 0.17

Investor Relations Contact:Michael Vesey, Vice President and Chief Financial Officer Wayside Technology Group, Inc.(732) 389-0932michael.vesey@waysidetechnology.com

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