Wayside Technology Group, Inc. (WSTG) Q2 2022 Earnings Conference Call August 4, 2022 8:30 AM ET

Company Participants

Sean Mansouri - Elevate IR

Andrew Clark - VP & CFO

Dale Foster - President & CEO

Conference Call Participants

Unidentified Analyst - Private Investor

Operator

Good morning, 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, 2022. Joining us today are Wayside's CEO, Mr. Dale Foster; the company's CFO, Mr. Drew Clark; and the company's Investor Relations adviser, Mr. Sean Mansouri with Elevate IR. By now, everyone should have access to the second quarter 2022 earnings press release, which was issued yesterday afternoon at approximately 4:05 P.M. Eastern Time. The release is available in the Investor Relations section of Wayside Technology Group's website at waysidetechnology.com. This call will also be available for webcast replay on the company's website. Following management remarks, we'll open the call for your questions. I'd now like to turn the call over to Mr. Mansouri for introductory comments.

Sean Mansouri

Thank you. Before I introduce Dale, I'd like to remind listeners that certain comments made on this conference call and webcast are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain known and unknown risks and uncertainties as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These forward-looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC. Do not place undue reliance on any forward-looking statements, which are being made only as of the date of this call. Except as required by law, the company undertakes no obligation to revise or publicly release the results of any revision to any forward-looking statements.

Our presentation also includes certain non-GAAP financial measures, including adjusted gross billings, adjusted EBITDA, and effective margins, as supplemental measures of performance of our business. All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules. You'll find reconciliation charts and other important information in the earnings press release and Form 8-K we furnished to the SEC yesterday. I would now like to turn the call over to Wayside's CEO, Dale Foster.

Dale Foster

Thank you, Sean and good morning, everyone. We continue to execute on our core initiatives during the second quarter, generating organic growth with our existing vendors and customers while adding new emerging vendors to our line card. This resulted in another strong quarter of profitability with gross profit of double digits and a significant increase in net income and adjusted EBITDA compared to the prior year. As I mentioned on past calls, we are committed to a limited and focused line card in order to partner with the most innovative technology brands in the market. Out of our 31 brands we evaluated this past quarter, we only signed agreements with six of them, including two I'd like to highlight, Hammerspace and Mirantis.