Good morning, ladies and gentlemen, and welcome to the Wayside Technology Group Conference Call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session. As a reminder ladies and gentlemen, this conference is being recorded. I would now like to introduce your host for today's conference, Melanie Caponegra.
Ms. Caponegra, you may begin.
Thank you, and good morning. Welcome to Wayside Technologies Third Quarter 2016 Earnings Call. Before turning the call over to Simon Ninen, the company's Chairman and CEO, I will dispense with the customary cautionary language and comment about the webcast for this earnings call. We released earnings for the third quarter at approximately 5 pm Eastern Time, Thursday, October 27, 2016. The earnings release is available at the company's investor relations website at waysidetechnology.com.
Today's call, including all questions www.wasteighttechnology.comearningscall. This conference call and the associated web cast contains time sensitive information that is accurate only as of today, October 28, 2016. A detailed discussion of risks and uncertainties are discussed in our forms 10Q and also in greater detail in our forms 10K. Wayside Technology Group, Inc. Sees no obligation to update and does not intend to update any forward looking statements.
Now I would like to turn the call over to Simon Ninen.
Thank you, Melanie, and good morning to everyone. Considering the overall environment, we had a solid third quarter, especially compared to vision represented 90% of our revenue and 87 percent of segment income in the 3rd quarter. Our international sales were 13% of our overall revenue, up from 11% for the third quarter of 2015. I want to start by welcoming Michael Vasey to our team. Mike started three and a half weeks ago comes to us with great experience in finance, operations and management.
Mike, welcome again. Now, I'd like to hand it over to Bill Botai, our Executive Vice President.
Thank you, Simon. As stated earlier, by Simon, we had a solid quarter when compared with a very good Q3 2015. On a consolidated basis, revenue increased 2 percent or $1,900,000 to $99,600,000 compared to 97 point 7 for the same period 2015. Income from operations declined slightly to $2,000,000 compared to $2,200,000 over the same period last year. Total sales for the third quarter of 2016 $100,000 in the third quarter of 2015, representing an increase of 5000000 dollars or 6%.
Total sales for the third quarter of our of 2016 for our techxtend segment were $8,500,000 compared to $11,600,000 in the third quarter of 2015 representing a decrease of $3,100,000 or 27 percent. The 6% increase in net sales for the light boat distribution segment resulted mainly from our ongoing strategy of strengthening our account penetration. This was partially offset by lower sales to certain resellers resulting from changes in product mix upon annual contract renewals. The 27% decrease in net sales in the Tech Extense segment was primarily due to the variability in large software sales transactions, including extended payment term sales when compared to the third quarter of the prior year. Gross profit for the third quarter ended September 30, 2016 was $6,400,000, a 7% decrease compared to $6,900,000 for the third quarter of 2015.
Gross profit for our Lifeboat segment in the third quarter of 2016 was 5,400,000 compared to $5,100,000 for the third quarter 2015, representing a 1% decrease. Gross profit Tech Extent segment in the third quarter of 2016 was $900,000 compared to $1,400,000 for the third quarter of 2015. Representing a 33% decrease. As a percentage of net sales, SG and A expenses for the third quarter of 2016 were 4.4% compared to from the very largest distribution companies we compete within the market. We've managed to overcome most of that with increases in most of our vendors and customers.
Some segments had increases, while others decreased due to these pressures. Like the updates to light boat last quarter, We've released a new tech extend, Cloville brand website, and it refreshed our brand image with very positive feedback from our customers and suppliers. We've also begun to verticalize part of our tech extend team to focus on the SLED market with the state, local, and education and have also recently announced that in David Hespey, the former commissioner of Education for New Jersey as a business development consultant to assist us in more rapidly penetrating this exciting vertical market. We continue to be excited about our future as we manage our expenses and build our product portfolio to help achieve our growth targets. Thank you.
Simon, back to you.
Thank you, Bill. Mike Facy will now report on the financial numbers. Mike?
Thank you, Simon. I'll cover some of our general administrative expenses and then I'll cover some balance sheet highlights since Bill already, talked about our, income statement down to the gross margin level. Total selling in general and administrative expenses for the third quarter of 2016 were $4,400,000 compared to $4,600,000 for the third quarter of 2015. Representing a $300,000 or 6 percent change. This decrease was primarily the result of lower bonus expense partially offset by increased stock compensation and occupancy costs in 2016 when compared to 2015.
As a percent of net sales SG and A expenses for the third quarter of 2016 were 4.4% compared to 4.7% for the third quarter of 2015. Our net income for the third quarter of 2016 was $1,400,000 compared to $1,600,000 in the prior year. Earnings per share on a fully diluted basis was $0.31 per share compared to $0.33 last year. Moving on to the balance sheet, compared to our balances at December 31, 2015, the following key accounts had fluctuations. Cash decreased by approximately $2,800,000 to $21,000,000 at September 30, 2016 compared to $23,800,000 at December 31, 2015.
The decrease is comprised primarily of dividend payments of $2,400,000, $3,600,000 of purchases of treasury stock, and $800,000 of capital expenditures related to our new office. Current accounts receivable increased by 5% or $3,200,000, mainly due to a large transaction in the 2nd quarter with extended payment terms. Accounts payable and accrued expenses increased by 4% primarily due to an increase in deferred rent and other items related to the opening of our new corporate office. As of September 30, 2016, had no outstanding balances under the credit facility. Working capital at September 30 2016 was $27,800,000.
During the quarter, we repurchased approximately 86,000 shares of our common stock under We still have board authorization to repurchase up to approximately 278,000 additional shares. Stockholders' equity now stands at $37,800,000. At our October 27 2016 board meeting, the Board of Directors declared a $0.17 per share dividend for its common stock payable on November 18th to shareholders record on November 8, 2016. The company has now paid dividends consecutively for over 55 quarters. In conclusion, the company continues to have solid operating results a strong balance sheet and is adequately capitalized to support our continued growth plans.
I want to personally thank all of our team members worldwide and Simon, I turn it back over to you.
Thank you, Mike. During this quarter, as Mike mentioned, we moved into our new headquarters in Eatontown, all without missing a beat. We will have 2 open houses Lifeboat will host its open day on November 10, and Tech Xcent will host on November 18. We received great feedback and continue to receive great feedback from employees vendors as well as customers about a new way of working together. We released a redesigned techxtend website this quarter as well, including personalized landing pages for our tech extend experts.
In conclusion, it was a busy quarter. I want to thank all of our team members for their hard work and dedication to the success
for questions. Our first question comes from Sam Shafer. Your line is open.
Hi, thank you guys. Good morning and thanks for taking my question.
Good morning.
There are two announcements this quarter for new hires with Mike and David. But with Mike being the new CFO, I'm curious how Kevin's role is going to change moving forward?
Sure. So is actually in a room with us today. Kevin Schollen will remain as our Chief Accounting Officer. He was our Chief Accounting Officer. And Mike, in addition, in terms of making sure that we, that we enhance the operational reporting about our finances, as well as making sure we fulfill all the the world and continue to fulfill that with our continued growth in terms of our finance department.
So it's really in addition.
And for David, the Senior Education's Consultant, I believe, is this title, what does that really imply his role will be?
So, Bill, Bill, you might want
to take that? Sure. Thank you. As we move into this vertical market, David is coming to us as Commissioner of Education for New Jersey on Governor Christie's staff has intimate relationships and knowledge of the various school districts particularly in the K-twelve area throughout the state of New Jersey and those, which ones have the greatest need for technological improvements and can introduce our sales organization to those teams and was an active participant this week in the New Jersey School Board Administrators and IT exposition down in, in Atlantic City where we had a large booth and, a touch 750 of the school district employees. This is a period of time.
And the timing for this is wrapped around Q4 and Q1 are when budgets are set and projects are defined for spend in late Q2 sorry late Q1 and Q2 in preparation for implementation in Q3. So he's really the the person who can introduce us and get past the gatekeepers at the majority of these places.
Yeah. And as an example, we did, for instance, we did physical secure, we did a couple physical security projects where we install the cameras and we install the whole systems in order to maintain the physical security had a reseller, those are the kind of projects we want to move into.
Great. I look forward to having both, both on board and seeing the growth that they help provide. Starting last quarter, you referenced the pilot program I'm just curious as to how that has been working and if it's still occurring?
When you say pilot program, which one?
I believe it's in reference to allowing the employees more flexibility in the work schedule.
Oh, sure. Yes. Yes. I mean, that's working very well with our new office. So we got good local press about our new headquarters.
Again, we monitor the productivity very closely with employees and really enabling to, to work here at whatever office they want, by the way, it's new flexible work environment, or at home. It really, again, happy people are just more productive. And we feel that definitely, in Q3 and Q4. There are waves we have to write. I want to mention that.
And I want to just again, I explained what it is that we're in the overall environment. If you look at our year to date results, when you look at our revenue, we were up 5% consolidated. And we had a not so good first quarter. We had a good second quarter Most of that, if you relate that, that's transactional business of Tech Xcent. Now, so far in October, our pipeline is looking good for Q4 for those kind of like transactions of the finance, the FPL kinds of transactions.
But it's still early in the quarter. But those are transactional. Now if you look at at LiveVault per se and you look at our larger competitors, we, if you compare our fleet company with competitors such as Ingram Micro Tech Data, Arrow Avnet, revenue year to date for Ingram Micro year to date is is down 7% for Tech Data down 1%. Arrow is up 5%, Avnet is year to date down 21%. Operating income from operations, we are in LiveVault up 5% income from operations.
That's what significant investment in our future growth. So our revenue up 5% and our income from operations up 5% If you combine the whole company year to date, we're down 6% compared it to our competitor's Ingram Micro without the impairment of of a software implementation last year, they're down 23% in income from operations. Tech Data is down 49% Aero is up 5% and Avnet is down 39% year to date. So again, that's why I'm stating considering the overall environment are very large competitors. RN flux are in restructuring mode, I can't win the battle every quarter.
However, the long term plan is we're not deviating from the long term plan. When the dust settles here, And when the fights are all over, people are dissatisfied with the fact that complete teams are disappearing at these major publishers they are not getting, continue to not get the service that they want and need as a software publisher. And we are a viable alternative And in fact, every quarter, we're becoming more and more viable. So our long term plan hasn't changed. Our long term commitment hasn't changed.
I don't feel there's significant change in the market. If there is, we'll inform you right away. That's how we look at our results in the especially compared to a strong Q3 in 2015. When we do pilot programs, we have to be very careful. We run a very profitable company and we've grown significantly over the last couple of years.
If you look at since 2011, we were up In terms of revenue, you were up in 2015, the end of 2015, up 153% And that's without acquisitions, and we are looking actively at acquisitions. But other significant competitors of ours much larger have done a lot of acquisitions and are all below us in terms of revenue growth. So we continue to be excited about the long term prospects of this company and, we look forward to reporting future quarters.
That's great additional insight. Thank you, Simon. And you brought up the looking for acquisitions Could you provide an update on the engagement of an investment banker?
Yes, we have. We have signed an agreement. We're with Martin Wolf very well known within the within the tech industry. They're representing us. And I think that's our responsibility as as board and as a fellow shareholder to explore acquisitions.
And that's where we're in the early phases. They started in September. And we have engaged with them for a period of 6 months. And, we have to see what's out there currently, and to see what's available that's what we're currently doing.
Great. Well, thank you for the additional insight and good luck in Q4 and fiscal 2017.
Thank you so much. Have a good weekend. We'd like to thank everybody for their interest in our company, and we look forward to reporting our Q4 results in February of 2017. Thank you.
This concludes today's conference call. You may disconnect at this time and thank you for your participation.