Gross Profit for each of the fourth quarters ended December 31, 2012 and December 31, 2011 was $7.0 million. Gross profit for our Lifeboat Distribution segment for the fourth quarter of 2012 was $4.5 million compared to $5.0 million in the fourth quarter of 2011, representing a 10% decrease. Gross profit for our TechXtend segment was $2.6 million compared to $2.1 million in the fourth quarter of 2011, representing a 23% increase. Vendor rebates and discounts for the quarter ended December 31, 2012 amounted to $0.6 million compared to $0.8 million for the fourth quarter of 2011.
Gross Profit for the year ended December 31, 2012 was $23.9 million compared to $23.2 million in 2011, a 3% increase. Gross profit for our Lifeboat Distribution segment was $15.8 million compared to $16.8 million in 2011, representing a 6% decrease. Gross profit for our TechXtend segment was $8.1 million compared to $6.4 million in 2011, representing a 25% increase. Vendor rebates and discounts for the year ended December 31, 2012 amounted to $1.8 million compared to $2.9 million for 2011. Gross profit margin (gross profit as a percentage of net sales) for 2012 was 8.0% compared to 9.3% in 2011.
The increase in gross profit dollars and the decrease in gross profit margin were primarily caused by the sales growth within our Lifeboat Distribution and TechXtend segments, offset in part, by continued pressure on discounts and rebates earned and by competitive pricing pressure in both segments. The decrease in gross profit margin was also impacted by having won several large bids, including transactions on extended payment terms, based on aggressive pricing which we plan to continue.
Total selling, general, and administrative ("SG&A") expenses for the fourth quarter of 2012 were $4.2 million compared to $4.0 million for the fourth quarter of 2011. Total SG&A expenses for 2012 were $15.4 million compared to $14.6 million in 2011, representing an increase of $0.8 million. This increase is primarily the result of an increase in sales commissions for our TechXtend segment due to our growth in this segment, the addition of employees in sales, finance and operations to support business growth and higher professional fees.
Net income and diluted earnings per share for the fourth quarter of 2012 were $1.8 million and $0.39, respectively, compared to $2.0 million and $0.43, respectively for the fourth quarter of 2011. Net income and diluted earnings per share for 2012 were $5.5 million and $1.19, respectively, compared to $5.5 million and $1.20, respectively in 2011.
On January 30, 2013, the Board of Directors declared a quarterly dividend of $.16 per share of its common stock payable February 22, 2013 to shareholders of record on February 12, 2013.
About Wayside Technology Group, Inc.
Wayside Technology Group, Inc. (NASDAQ: WSTG) was founded in 1982 and is a unified and integrated technology company providing products and solutions for corporate resellers, VARs, and developers as well as business, government and educational entities. The company offers technology products from software publishers and manufacturers such as Acronis, CA Technologies, DataCore, Datawatch, Dell, Flexera Software, GFI, Hewlett Packard, Infragistics, Intel Software, Lenovo, Microsoft, Mindjet, Quest Software, SolarWinds, Sophos, StorageCraft Technology, TechSmith, Veeam, Vision Solutions and VMware. Additional information can be found by visiting technology.com/">www.waysidetechnology.com.
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