Programmer's Paradise, Inc. (NASDAQ: PROG) today
reported financial results for the fourth quarter ended December 31,
2005. The results will be discussed in a conference call to be held on
Friday, January 27, 2006 at 10:00 AM Eastern time. The dial-in
telephone number is (866) 206-6154 and the pass code is PROG.
Net sales for the quarter ending December 31, 2005 were $42.0 million compared with $31.0 million in the fourth quarter of 2004, a 35% increase. "This solid performance is the result of improved productivity of our account executive team at Programmer's Paradise, and increased account penetration in our Lifeboat Distribution group," said William H. Willett, Chairman.
Income from operations for the quarter ending December 31, 2005 was $1.1 million compared with $0.6 million in the fourth quarter of 2004 or an increase of 80%.
Net sales in 2005 increased 33% or $34.1 million to $137.7 million compared to $103.6 million in 2004. Income from operations for 2005 was $2.8 million compared to $2.2 million in 2004 or an increase of $0.6 million.
Programmer's Paradise, Inc. (NASDAQ: PROG) was founded in 1982 and is an award-winning marketer of technical software and hardware. When it comes to software, Programmer's Paradise has it all. Programmer's Paradise is one of the most recognizable and memorable brands in developer marketing. Our experienced account executives are key in our strategy. We offer our customers customized extranets, consultancy services, and flexible financing, as well as same day shipping.
Additional information can be found by visiting www.programmersparadise.com.
Contact Programmer's Paradise, Inc. via Simon Nynens, President & CEO of Programmer's Paradise, Inc. at (732) 389-8950 or simon.nynens@programmers.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 include the continued acceptance of the Company's distribution channel by vendors and customers, the timely availability and acceptance of new products, and contribution of key vendor relationships and support programs. 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. -0- PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) December December 31, 2005 31, 2004 ----------- --------- (Unaudited) (Audited) ASSETS Current assets Cash and cash equivalents $7,369 $4,888 Marketable securities 7,884 6,595 Accounts receivable, net 21,185 14,173 Inventory - finished goods 1,956 1,423 Prepaid expenses and other current assets 688 673 Deferred income taxes, current 1,783 1,423 ----------- --------- Total current assets 40,865 29,175 Equipment and leasehold improvements, net 434 303 Other assets 453 581 Deferred income taxes, net of current 2,516 2,855 ----------- --------- Total assets $ 44,268 $ 32,914 =========== ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses $25,751 $15,994 Dividend payable 519 425 ----------- --------- Total current liabilities 26,270 16,419 Commitments and contingencies Stockholders' equity Common stock, $.01 par value; authorized, 10,000,000 shares; issued 5,284,500 shares 53 53 Additional paid-in capital 30,948 32,642 Treasury stock, at cost, 1,289,665 shares and 1,418,090 shares, respectively (3,620) (4,130) Accumulated deficit (9,570) (12,223) Accumulated other comprehensive income 187 153 ----------- --------- Total stockholders' equity 17,998 16,495 ----------- --------- Total liabilities and stockholders' equity $ 44,268 $ 32,914 =========== ========= PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) (In thousands, except per share data) Three months ended December 31, December 31, ------------------------------------- 2005 2004 2005 2004 ------------------------------------- Net sales $137,655 $103,582 $41,962 $31,022 Cost of sales 122,685 91,243 37,669 27,566 ------------------------------------- Gross profit 14,970 12,339 4,293 3,456 Selling, general and administrative expenses 12,203 10,173 3,139 2,814 ------------------------------------- Income from operations 2,767 2,166 1,154 642 Interest income, net 313 156 94 69 Realized foreign exchange gain (loss) (13) (44) 2 (48) ------------------------------------- Income before income tax provision 3,067 2,278 1,250 663 Provision (benefit) for income taxes (Note 1) 414 (4,044) (314) (4,148) ------------------------------------- Net income $ 2,653 $ 6,322 $ 1,564 $ 4,811 ===================================== Net income per common share - Basic $ 0.67 $ 1.65 $ 0.39 $ 1.25 ===================================== Net income per common share - Diluted $ 0.61 $ 1.51 $ 0.36 $ 1.10 ===================================== Weighted average common shares outstanding - Basic 3,976 3,828 3,995 3,854 ===================================== Weighted average common shares outstanding - Diluted 4,384 4,180 4,362 4,357 ===================================== Reconciliation to comprehensive income: -------------------------------- Net income $ 2,653 $ 6,322 $ 1,564 $ 4,811 Other comprehensive income(loss), net of tax: Unrealized gain (loss) on marketable securities 12 (22) (2) - Foreign currency translation adjustments 22 97 - 71 ------------------------------------- Total comprehensive income $ 2,687 $ 6,397 $ 1,562 $ 4,882 =====================================
Note 1 - For the year ended December 31, 2004, the Company recorded a net deferred tax benefit in the amount of $4.1 million related to a reversal of a deferred tax asset valuation allowance. The Company believed at that time that uncertainty still existed regarding the realizability of certain deferred tax assets and, accordingly, established a $0.9 million valuation allowance. As a result of the Company's strong performance in 2005, the $0.9 million deferred income tax valuation allowance was eliminated by reducing the income tax provision for 2005.
Net sales for the quarter ending December 31, 2005 were $42.0 million compared with $31.0 million in the fourth quarter of 2004, a 35% increase. "This solid performance is the result of improved productivity of our account executive team at Programmer's Paradise, and increased account penetration in our Lifeboat Distribution group," said William H. Willett, Chairman.
Income from operations for the quarter ending December 31, 2005 was $1.1 million compared with $0.6 million in the fourth quarter of 2004 or an increase of 80%.
Net sales in 2005 increased 33% or $34.1 million to $137.7 million compared to $103.6 million in 2004. Income from operations for 2005 was $2.8 million compared to $2.2 million in 2004 or an increase of $0.6 million.
Programmer's Paradise, Inc. (NASDAQ: PROG) was founded in 1982 and is an award-winning marketer of technical software and hardware. When it comes to software, Programmer's Paradise has it all. Programmer's Paradise is one of the most recognizable and memorable brands in developer marketing. Our experienced account executives are key in our strategy. We offer our customers customized extranets, consultancy services, and flexible financing, as well as same day shipping.
Additional information can be found by visiting www.programmersparadise.com.
Contact Programmer's Paradise, Inc. via Simon Nynens, President & CEO of Programmer's Paradise, Inc. at (732) 389-8950 or simon.nynens@programmers.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 include the continued acceptance of the Company's distribution channel by vendors and customers, the timely availability and acceptance of new products, and contribution of key vendor relationships and support programs. 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. -0- PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) December December 31, 2005 31, 2004 ----------- --------- (Unaudited) (Audited) ASSETS Current assets Cash and cash equivalents $7,369 $4,888 Marketable securities 7,884 6,595 Accounts receivable, net 21,185 14,173 Inventory - finished goods 1,956 1,423 Prepaid expenses and other current assets 688 673 Deferred income taxes, current 1,783 1,423 ----------- --------- Total current assets 40,865 29,175 Equipment and leasehold improvements, net 434 303 Other assets 453 581 Deferred income taxes, net of current 2,516 2,855 ----------- --------- Total assets $ 44,268 $ 32,914 =========== ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses $25,751 $15,994 Dividend payable 519 425 ----------- --------- Total current liabilities 26,270 16,419 Commitments and contingencies Stockholders' equity Common stock, $.01 par value; authorized, 10,000,000 shares; issued 5,284,500 shares 53 53 Additional paid-in capital 30,948 32,642 Treasury stock, at cost, 1,289,665 shares and 1,418,090 shares, respectively (3,620) (4,130) Accumulated deficit (9,570) (12,223) Accumulated other comprehensive income 187 153 ----------- --------- Total stockholders' equity 17,998 16,495 ----------- --------- Total liabilities and stockholders' equity $ 44,268 $ 32,914 =========== ========= PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) (In thousands, except per share data) Three months ended December 31, December 31, ------------------------------------- 2005 2004 2005 2004 ------------------------------------- Net sales $137,655 $103,582 $41,962 $31,022 Cost of sales 122,685 91,243 37,669 27,566 ------------------------------------- Gross profit 14,970 12,339 4,293 3,456 Selling, general and administrative expenses 12,203 10,173 3,139 2,814 ------------------------------------- Income from operations 2,767 2,166 1,154 642 Interest income, net 313 156 94 69 Realized foreign exchange gain (loss) (13) (44) 2 (48) ------------------------------------- Income before income tax provision 3,067 2,278 1,250 663 Provision (benefit) for income taxes (Note 1) 414 (4,044) (314) (4,148) ------------------------------------- Net income $ 2,653 $ 6,322 $ 1,564 $ 4,811 ===================================== Net income per common share - Basic $ 0.67 $ 1.65 $ 0.39 $ 1.25 ===================================== Net income per common share - Diluted $ 0.61 $ 1.51 $ 0.36 $ 1.10 ===================================== Weighted average common shares outstanding - Basic 3,976 3,828 3,995 3,854 ===================================== Weighted average common shares outstanding - Diluted 4,384 4,180 4,362 4,357 ===================================== Reconciliation to comprehensive income: -------------------------------- Net income $ 2,653 $ 6,322 $ 1,564 $ 4,811 Other comprehensive income(loss), net of tax: Unrealized gain (loss) on marketable securities 12 (22) (2) - Foreign currency translation adjustments 22 97 - 71 ------------------------------------- Total comprehensive income $ 2,687 $ 6,397 $ 1,562 $ 4,882 =====================================
Note 1 - For the year ended December 31, 2004, the Company recorded a net deferred tax benefit in the amount of $4.1 million related to a reversal of a deferred tax asset valuation allowance. The Company believed at that time that uncertainty still existed regarding the realizability of certain deferred tax assets and, accordingly, established a $0.9 million valuation allowance. As a result of the Company's strong performance in 2005, the $0.9 million deferred income tax valuation allowance was eliminated by reducing the income tax provision for 2005.