Financial Data and Key Metrics Changes - Gross profit reached a record $10.8 million, an increase of 33% compared to $8.2 million in the year-ago quarter [28] - Net sales increased slightly to $62.8 million from $62.6 million year-over-year, reflecting modest growth [27] - Adjusted gross billings increased by 22% to $210.9 million from $173.1 million in the previous year [27] - Net income increased by 82% to $1.5 million, or $0.35 per diluted share, compared to $0.8 million, or $0.18 per diluted share in the year-ago quarter [31] - Adjusted EBITDA was $2.6 million, down from $3.1 million in the year-ago quarter [32] Business Line Data and Key Metrics Changes - Security, data center, and cloud products became the top-selling product categories, replacing hardware [13] - The product mix has shifted towards software and security, impacting net sales reporting [47] Market Data and Key Metrics Changes - Spending on security products is expected to reach over $23 billion by the end of the year, driven by cloud adoption and remote work solutions [14] - The company is expanding its global reach through partnerships and vendor relationships, particularly in the US, Canada, and EMEA [18] Company Strategy and Development Direction - The company focuses on three core growth drivers: organic revenue growth, enhancing the vendor line card, and strategic acquisitions [9][10] - The launch of a cloud marketplace is expected to create a recurring revenue stream and support the transition to subscription-based models [60][64] - The company aims to leverage its strong balance sheet for acquisitions while improving overall profit margins [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery from the pandemic and the evolving needs of customers [36] - The company anticipates growth opportunities despite challenges in achieving desired profitability levels [26] - Management acknowledged the need for continued investment in the business to capture growth [30] Other Important Information - SG&A expenses increased to $8.8 million from $7.2 million year-over-year, primarily due to costs related to acquisitions [29] - The company remains debt-free with no borrowings under its $20 million credit facility [34] - A quarterly dividend of $0.17 per share was declared, reflecting the board's commitment to maintaining the dividend for now [34][42] Q&A Session Summary Question: Impact of returning to normal work schedules post-pandemic - Management noted that the product mix will change as businesses recover, with a focus on adapting to customer needs [35][36] Question: M&A opportunities and valuations - Management highlighted ongoing opportunities in the cloud and MSP markets, with a focus on creative acquisitions [37][38] Question: Commitment to the dividend policy - The board remains committed to the dividend, but management is open to reallocating funds if better opportunities arise [41][42] Question: Explanation of adjusted gross billings vs. net sales - Management clarified that the difference is due to the product mix and how revenue is recorded under GAAP [43][46] Question: Performance of acquired companies - Management stated that the performance of acquired companies is integrated into the overall business, making separate reporting difficult [57] Question: Details on the new cloud marketplace - The marketplace will allow customers to manage subscriptions and is expected to create a recurring revenue stream [60][64] Question: Transition to subscription-based models affecting earnings - Management indicated that the transition will be gradual and not significantly impact earnings in the short term [65][66] Question: Concerns about one-off expenses - Management acknowledged that one-off expenses may occur during acquisitions but emphasized the long-term benefits [78][79]

Table of Contents Title of each class: Trading Symbol Name of each exchange on which registered: Common stock, $.01 par value WSTG The NASDAQ Global Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission ...

Financial Performance - Net sales increased by 21%, or $42.8 million, to $251.6 million for the year ended December 31, 2020, compared to $208.8 million for the same period in 2019[146] - Gross profit increased by 10%, or $3.0 million, to $33.0 million for the year ended December 31, 2020, compared to $30.0 million for the same period in 2019[146] - Net income was $4.5 million for the year ended December 31, 2020, compared to $6.8 million for the same period in 2019[146] - Income per diluted share was $1.01 for the year ended December 31, 2020, compared to $1.51 for the same period in 2019[146] - Net income for the year ended December 31, 2020, was $4.474 million, down from $6.787 million in 2019, reflecting a net income margin decrease from 3.3% to 1.8%[172] - Adjusted gross billings for 2020 were $729.239 million, up from $601.023 million in 2019, indicating a significant growth in business volume[174] - Adjusted EBITDA for the year ended December 31, 2020, was $11.422 million, compared to $10.472 million in 2019, showing an increase in profitability[177] - Effective margin for adjusted EBITDA was 34.6% for the year ended December 31, 2020, a decrease of 30 basis points compared to 34.9% for the same period in 2019[1] Expenses and Costs - Selling, general and administrative expenses increased by 15%, or $3.0 million, to $23.9 million for the year ended December 31, 2020, compared to $20.9 million for the same period in 2019[146] - Cost of sales increased to 86.9% of net sales in 2020, compared to 85.6% in 2019, resulting in a gross profit margin decrease from 14.4% to 13.1%[172] - Legal and financial advisory expenses related to unsolicited bids were $1.6 million for the year ended December 31, 2020, compared to no expense for the same period in 2019[146] - Acquisition-related costs were $1.5 million for the year ended December 31, 2020, compared to no expense for the same period in 2019[146] - Customer rebates and discounts for the year ended December 31, 2020 were $6.3 million compared to $3.8 million for the same period in the prior year[191] Assets and Cash Flow - Cash and cash equivalents increased to $29.3 million in 2020 from $15.0 million in 2019[128] - Total assets increased to $165.5 million in 2020 from $126.3 million in 2019[128] - Total stockholders' equity decreased slightly to $44.7 million in 2020 from $45.3 million in 2019[128] - Net cash provided by operating activities for the year ended December 31, 2020 was $38.0 million, consisting of net income adjusted for non-cash items of $6.7 million and changes in operating assets and liabilities of $31.3 million[212] - Net cash used in financing activities was $6.7 million, primarily for treasury stock purchases of $3.7 million and dividend payments of $3.0 million[214] - As of December 31, 2020, the company held 922,503 shares of its Common Stock in treasury at an average cost of $15.99 per share[216] Acquisitions - The company completed the acquisition of Interwork Technologies Inc. for a purchase price of $3.6 million on April 30, 2020[181] - The company completed the acquisition of CDF Group Limited for a purchase price of $17.4 million on November 6, 2020[182] - The company completed the acquisition of Interwork US and Interwork Canada for an aggregate purchase price of $3.6 million USD, and CDF Group Limited for approximately $17.4 million USD[213] - The company recorded acquisition-related costs of $1.518 million in 2020, which were not present in 2019[172] Tax and Regulatory Matters - The provision for income taxes in 2020 was $1.746 million, down from $2.261 million in 2019[177] - The company plans to adopt ASU 2016-13 in the first quarter of fiscal 2023, which may impact the recognition of allowances for accounts receivable[168] - The company tests goodwill for impairment annually, with significant estimates and assumptions involved in the process[158] - The company maintains allowances for doubtful accounts based on historical experience and current creditworthiness of customers, which may require adjustments if customer financial conditions deteriorate[152] Market and Operational Considerations - The company anticipates continued price competition in its market segments[192] - The change in payment terms with a large customer resulted in a cash increase of approximately $30 million, although it reduced net sales and gross profit by approximately $1.1 million for the year[212] - The company has a revolving credit facility of $20 million, with an interest rate based on the LIBOR Rate, which was 2.50% at December 31, 2020[218] - The company anticipates an increase in working capital needs as it invests in business growth, believing current cash and unused borrowings will suffice for the next 12 months[220] - The company is subject to fluctuations in currency exchange rates, primarily in the Canadian Dollar, Euro Dollar, and British Pound-to-U.S. Dollar[221] - As of December 31, 2020, the company had no off-balance sheet arrangements[222] - The company incurred $0.1 million of interest expense related to the Credit Facility for the years ended December 31, 2020 and 2019[219]

Wayside Technology Group, Inc. (WSTG) Q4 2020 Earnings Conference Call March 2, 2021 8:30 AM ET Company Participants Sean Mansouri - Gateway Investor Relations Dale Foster - President & Chief Executive Officer Michael Vesey - Vice President & Chief Financial Officer Conference Call Participants Operator Good morning, everyone, and thank you for participating in today's conference call to discuss Wayside Technology Group's Financial Results for the Fourth Quarter and Full Year Ended December 31, 2020. Joinin ...

Table of Contents Title of each class: Trading Symbol Name of each exchange on which registered: Common stock, $.01 par value WSTG The NASDAQ Global Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commis ...

Wayside Technology Group, Inc. (WSTG) Q3 2020 Results Earnings Conference Call November 10, 2020 5:00 PM ET Company Participants Cody Cree - Investor Relations Advisor, Associate at Gateway Investor Relations Dale Foster - President, Chief Executive Officer Charles Bass - Vice President of Alliances and Marketing, Climb Channel Solutions Michael Vesey - Vice President, Chief Financial Officer Conference Call Participants Ed Woo - Ascendiant Capital Operator Good afternoon everyone and thank you for particip ...

September 2020 | Nasdaq:WSTG Wayside Technology Investor Presentation DISCLAIMERS This presentation is for informational purposes only and is not an offer to sell securities or a solicitation of an offer to buy any securities and may not be relied upon in connection with the purchase or sale of any security. Sales and offers to sell Wayside Technology Group, Inc. securities will only be made in accordance with the Securities Act of 1933, as amended, and applicable Securities and Exchange Commission ("SEC") ...

Table of Contents Title of each class: Trading Symbol Name of each exchange on which registered: Common stock, $.01 par value WSTG The NASDAQ Global Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission ...

Wayside Technology Group, Inc. (WSTG) Q2 2020 Results Conference Call August 12, 2020 5:00 PM ET Company Participants Dale Foster - CEO Michael Vesey - CFO Charles Bass - VP, Alliances for Lifeboat Distribution Sean Mansouri - IR, Advisor Conference Call Participants Ed Woo - Ascendiant Capital Operator Good afternoon, everyone. And thank you for participating in today's conference call to discuss Wayside Technology Group's Financial Results for the Second Quarter Ended June 30, 2020. Joining us today are W ...

June 2020 | Nasdaq:WSTG Wayside Technology Investor Presentation DISCLAIMERS This presentation is for informational purposes only and is not an offer to sell securities or a solicitation of an offer to buy any securities and may not be relied upon in connection with the purchase or sale of any security. Sales and offers to sell Wayside Technology Group, Inc. securities will only be made in accordance with the Securities Act of 1933, as amended, and applicable Securities and Exchange Commission ("SEC") regul ...