EX-99 3 exh99_1.txt PRESS RELEASE FOR ANNUAL NET EARNINGS $9.7 MILL Exhibit 99.1 Contact: Steve Mencarini, SVP Chief Financial Officer Tel: 703-810-2596 smencarini@eplus.com For Release on 6/25/2003 ePLUS REPORTS RECORD ANNUAL NET EARNINGS OF $9.7 MILLION Record Annual and Quarterly EPS of $0.96 and $0.27 Reported Conference Call Scheduled for Friday, June 27th at 11:00 A.M. EST HERNDON, VA - June 25, 2003 - ePlus inc. (Nasdaq NM: PLUS - news), a leading provider of Enterprise Cost Management (ECM) solutions, announced today record net earnings of $9.7 million for its fiscal year ending March 31, 2003, a 9% increase as compared to $8.9 million recorded the prior fiscal year. Fully diluted earnings per share for the twelve-month period increased 12.9% to $0.96 as compared to $0.85 the prior period. Revenues increased 46.2% to $300 million from $205 million the prior year. On March 31, 2003, weighted average diluted shares outstanding were 10.1 million shares as compared to 10.5 million shares the prior year. Actual shares issued and outstanding on March 31, 2003 were 9.5 million shares. For the quarter ending March 31, 2003 net earnings increased 6.8% to $2.6 million from $2.4 million the prior year, and fully diluted earnings per share increased 17.4% to $0.27 from $0.23. Revenues for the quarter increased 48.8% to $72.5 million from $48.7 million for the fourth quarter of 2002. "2003 was yet another year of record earnings, and our growth continues to accelerate because we continue to anticipate the market and provide useful solutions to our customers at the right cost. We believe we are well-positioned to become a leading provider of business solutions for our customers and targeted markets." said Phillip G. Norton, chairman, president and chief executive officer. The Company announced that Thomas L. Hewitt, a member of the board of directors, has resigned due to a new obligation he has undertaken. Investors are encouraged to read the company's Form 10-K for a complete financial statement. Copies will be available at www.eplus.com, www.sec.gov, or by contacting the company at info@eplus.com or (888) 482-1122. Conference Call Scheduled for Friday, June 27th at 11:00 A.M. EST ----------------------------------------------------------------- The Company will host a conference call at 11 a.m. EST on Friday, June 27, 2003. To listen, please call (973) 339-3086 or toll-free (800) 683-1535. Ask to be connected to the ePlus conference call. A live and archived webcast will also be available. Link information can be found at www.eplus.com or in the company press release dated June 24, 2003. A telephone replay of the conference call will be available by calling (877) 519-4471 or (973) 341-3080, and entering the passcode 4018702 beginning at about 2:00 P.M. on June 27th through July 11th. About ePlus inc. A leading provider of Enterprise Cost Management, ePlus provides a comprehensive solution to reduce the costs of purchasing, owning, and financing goods and services. ePlus Enterprise Cost Management (eECM) packages business process outsourcing, eProcurement, asset management, supplier enablement, strategic sourcing, and financial services into a single integrated solution, all based on ePlus' leading business application software. Profitable since inception in 1990, the company is headquartered in Herndon, VA and has more than 30 locations in the U.S. For more information, visit our website at www.eplus.com, call (888) 482-1122 or email to info@eplus.com. ePlus (TM), ePlus Enterprise Cost Management, and eECM are trademarks or trademarks applied for of ePlus inc. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release, which are not historical facts, may be deemed to be "forward-looking statements". Actual and anticipated future results may vary due to certain risks and uncertainties, including, without limitation, the existence of demand for, and acceptance of, our services; our ability to adapt our services to meet changes in market developments; the impact of competition in our markets; the possibility of defects in our products or catalog content data; our ability to hire and retain sufficient personnel; our ability to protect our intellectual property; the creditworthiness of our customers; our ability to raise capital and obtain non-recourse financing for our transactions; our ability to realize our investment in leased equipment; our ability to reserve adequately for credit losses; fluctuations in our operating results; our reliance on our management team; and other risks or uncertainties detailed in our Securities and Exchange Commission filings. ePlus inc. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
Year Ended March 31, ----------------------------------------------- 2001 2002 2003 ----------------------------------------------- REVENUES Sales of equipment $ 216,183,181 $ 127,753,315 $ 219,208,998 Sales of leased equipment 34,031,381 9,353,088 6,095,830 ----------------------------------------------- 250,214,562 137,106,403 225,304,828 Lease revenues 42,693,839 48,850,017 50,520,293 Fee and other income 13,677,495 19,028,926 23,821,025 ----------------------------------------------- 56,371,334 67,878,943 74,341,318 ----------------------------------------------- TOTAL REVENUES 306,585,896 204,985,346 299,646,146 ----------------------------------------------- COSTS AND EXPENSES Cost of sales, equipment 182,473,685 111,598,231 197,787,657 Cost of sales, leased equipment 33,329,403 9,043,932 5,891,789 ----------------------------------------------- 215,803,088 120,642,163 203,679,446 Direct lease costs 16,534,992 9,578,631 6,582,409 Professional and other fees 3,363,324 2,717,618 3,188,046 Salaries and benefits 30,610,437 32,797,303 46,181,745 General and administrative expenses 10,766,333 12,517,696 15,233,858 Interest and financing costs 15,522,897 11,810,414 8,308,382 ----------------------------------------------- 76,797,983 69,421,662 79,494,440 ----------------------------------------------- TOTAL COSTS AND EXPENSES 292,601,071 190,063,825 283,173,886 ----------------------------------------------- Earnings before provision for income taxes 13,984,825 14,921,521 16,472,260 ----------------------------------------------- Provision for income taxes 5,666,625 6,009,798 6,759,551 ----------------------------------------------- NET EARNINGS $ 8,318,200 $ 8,911,723 $ 9,712,709 =============================================== NET EARNINGS PER COMMON SHARE - BASIC $ 0.86 $ 0.87 $ 0.97 =============================================== NET EARNINGS PER COMMON SHARE - DILUTED $ 0.80 $ 0.85 $ 0.96 =============================================== WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 9,625,891 10,235,129 10,061,088 WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 10,383,467 10,458,235 10,109,809
ePlus inc. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) As of March 31, 2002 As of March 31, 2003 ----------------------------------------------- ASSETS Cash and cash equivalents $ 28,223,503 $ 27,784,090 Accounts receivable, net of allowance for doubtful accounts of $3,719,207 and $3,346,055 as of March 31, 2002 and 2003, respectively 41,466,362 38,384,841 Notes receivable 227,914 53,098 Inventories 871,857 1,373,168 Investment in leases and leased equipment - net 169,087,078 182,169,324 Property and equipment - net 6,144,061 5,249,087 Deferred tax asset 5,471,658 - Other assets 5,419,813 4,779,946 Goodwill 22,083,308 19,147,132 ----------------------------------------------- TOTAL ASSETS $ 278,995,554 $ 278,940,686 =============================================== LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Acounts payable - equipment $ 3,898,999 $ 5,635,776 Accounts payable - trade 15,104,985 25,914,385 Salaries and commissions payable 491,716 619,860 Accrued expenses and other liabilities 19,091,729 13,978,942 Income taxes payable 364,183 - Recourse notes payable 4,659,982 2,736,298 Nonrecourse notes payable 129,095,051 115,678,353 Deferred tax liability - 4,760,029 ---------------------------------------------- Total Liabilities 172,706,645 169,323,643 COMMITMENTS AND CONTINGENCIES (Note 8) - - STOCKHOLDERS' EQUITY Preferred stock, $.01 par value; 2,000,000 shares authorized; none issued or outstanding - - Common stock, $.01 par value; 50,000,000 authorized; 10,461,970 issued and 10,395,870 outstanding at March 31, 2002 and 10,540,135 issued and 9,451,651 outstanding at March 31, 2003 $ 104,619 $ 105,400 Additional paid-in capital 62,414,067 62,905,727 Treasury stock, at cost, 66,100 and 1,088,484 shares, respectively (574,800) (7,511,124) Retained earnings 44,345,023 54,057,732 Accumulated other comprehensive income - Foreign currency translation adjustment - 59,308 ----------------------------------------------- Total Stockholders' Equity 106,288,909 109,617,043 ----------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 278,995,554 $ 278,940,686 ===============================================