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Mar 31, 2022

Climb Global Solutions Q1 2022 Earnings Report

Wayside Technology Group experienced significant operating leverage, leading to a 79% increase in net income to $2.7 million and a 61% rise in adjusted EBITDA to $4.2 million.

Key Takeaways

Wayside Technology Group reported strong first-quarter results, marked by a 14% increase in net sales, a 79% surge in net income, and a 61% rise in adjusted EBITDA, driven by organic growth and effective margin management.

Net sales increased by 14% to $71.3 million compared to the same quarter last year.

Adjusted gross billings rose by 13% to $238.7 million year-over-year.

Net income surged by 79% to $2.7 million, or $0.61 per diluted share, compared to the prior year.

Adjusted EBITDA increased by 61% to $4.2 million, driven by organic growth from new and existing vendors.

Total Revenue
$71.3M
Previous year: $62.8M
+13.5%
EPS
$0.61
Previous year: $0.35
+74.3%
Adjusted EBITDA
$4.25M
Previous year: $2.6M
+63.4%
Adjusted gross billings
$239M
Previous year: $211M
+13.2%
Gross Profit
$12M
Previous year: $10.8M
+10.9%
Cash and Equivalents
$37M
Previous year: $33.7M
+9.8%
Total Assets
$189M
Previous year: $178M
+6.2%

Climb Global Solutions

Climb Global Solutions

Forward Guidance

Wayside Technology Group has a solid foundation to continue driving organic growth and improve operating leverage. The company remains active in its M&A strategy, evaluating multiple targets to enhance its geographic footprint and service offerings. Wayside looks forward to delivering on both organic and inorganic growth objectives in 2022.

Positive Outlook

  • Continue driving organic growth
  • Improve operating leverage
  • Active M&A strategy
  • Enhance geographic footprint
  • Enhance service and solution offerings

Challenges Ahead

  • Potential adverse effect of the COVID-19 pandemic
  • Continued acceptance of the Company’s distribution channel by vendors and customers
  • The timely availability and acceptance of new products
  • Product mix
  • Market conditions