Wayside Technology Group, Inc. (NASDAQ:WSTG) Q1 2019 Earnings Conference Call Transcript

May 09, 2019 • 10:00 am ET

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Wayside Technology Group, Inc. (NASDAQ:WSTG) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and welcome to the Wayside Technology Group Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session. Please note, that all callers are limited to one question each. (Operator Instructions). As a reminder, ladies and gentlemen, this conference is being recorded.

I would now like to introduce your host for today's conference, Melanie Caponigro. Ms. Caponigro, you may begin your conference at this time.

Executive
Melanie Caponigro

Thank you, and good morning. Welcome to Wayside Technology's First Quarter 2019 Earnings Call. Before turning the call over Steve DeWindt, the company's President and CEO, I'll dispense with the customary cautionary language and comments about the webcast for this earnings call. We released earnings for the first quarter at approximately 5 p.m. Eastern Time, Wednesday, May 8, 2019. The earnings release is available at the company's Investor Relations website at waysidetechnology.com. Today's call, including all questions and answers is being webcast live and a rebroadcast will be available at waysidetechnology.com/site/content/webcast.

I'd like to remind you that certain comments made in this conference call and webcast are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. Those statements are subject to risks and uncertainties that could cause actual results to differ materially. Additional information concerning these risks and uncertainties is contained in our Forms 10-Q and 10-K filed with the SEC. Wayside Technology Group sees no obligation to update and does not intend to update any forward-looking statements.

Our presentation also includes certain non-GAAP financial measures, including adjusted gross billings, non-GAAP net income and non-GAAP earnings per share. All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules. You'll find reconciliation charts in the earnings release and Form 8-K we furnished to the (Technical Difficulty).

Executive
David Stephen DeWindt

Hello. Can you hear me? Hello.

Operator
Operator

This is the operator. Melanie's line has been disconnected, one moment.

Executive
David Stephen DeWindt

Okay, thank you. Hello.

Executive
Melanie Caponigro

Hi.

Executive
David Stephen DeWindt

Sorry, the operator told me that you had been disconnected.

Executive
Melanie Caponigro

We were disconnected, sorry about that. I'm not quite sure where we left off.

Our presentation includes non-GAAP financial measures, including adjusted gross billings, non-GAAP net income and non-GAAP earnings per share. All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules. You'll find reconciliation charts in the earnings release and Form 8-K we furnished to the SEC.

Now I would like to turn the call over to Steve DeWindt.

Executive
David Stephen DeWindt

Thanks, Melanie. And good morning, everyone. Thank you for joining us today to discuss our first quarter 2019 operating results. This quarter had mixed results. On the positive side, our sales and operational teams worked hard to deliver quarterly net revenue growth of 11% year-over-year. We also closed the quarter with overall adjusted gross billings on a non-GAAP basis of $141.9 million.

In addition, our gross profit dollars, which is our primary indicator, increased by 5% year-over-year. On the negative side, our gross margins in Q1