-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FMVGHP0mabD++yNyINcDzyCcdVPAGQ9ikMOxxHAZK5UZFtkt5HAvxMVyvyjdov1o 1P4Cu8K2eMfMkrjmxu5Pzw== 0001022408-05-000006.txt : 20050214 0001022408-05-000006.hdr.sgml : 20050214 20050214165640 ACCESSION NUMBER: 0001022408-05-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050214 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050214 DATE AS OF CHANGE: 20050214 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EPLUS INC CENTRAL INDEX KEY: 0001022408 STANDARD INDUSTRIAL CLASSIFICATION: FINANCE LESSORS [6172] IRS NUMBER: 541817218 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-28926 FILM NUMBER: 05611734 BUSINESS ADDRESS: STREET 1: 400 HERNDON PARKWAY CITY: HERNDON STATE: VA ZIP: 20176 BUSINESS PHONE: 7038345710 MAIL ADDRESS: STREET 1: 400 HERNDON PARKWAY STREET 2: SUITE B CITY: HERNDON STATE: VA ZIP: 20170 FORMER COMPANY: FORMER CONFORMED NAME: MLC HOLDINGS INC DATE OF NAME CHANGE: 19960906 8-K 1 f_8k.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 14, 2005 EPLUS INC. ----------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 000-28926 54-1817218 -------------- -------------- -------------- (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 13595 Dulles Technology Drive, Herndon, VA 20171-3413 ----------------------------------------------------- (Address, including zip code, of principal executive office) (703) 984-8400 -------------- (Registrant's telephone number, including area code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) -1- Item 2.02: Results of Operations and Financial Condition. On February 14, 2005, ePlus inc. (NASDAQ: "PLUS") announced by press release its results of operations for the quarter ended December 31, 2004. A copy of the press release is attached hereto as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference. Item 9.01: Financial Statements and Exhibits (a) Not applicable. (b) Not applicable. (c) The following exhibit is included with this Report: Exhibit 99.1 Press Release dated February 14, 2005, issued by ePlus inc. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ePlus inc. By: /s/ Steven J. Mencarini ------------------------------ Steven J. Mencarini Date: February 14, 2005 Chief Financial Officer -2- EX-99 2 f_exh99.txt ePlus Reports 3rd Quarter FY05 Financial Results Company Generates Revenues of $148 Million HERNDON, VA - February, 14 2005 - ePlus inc. (Nasdaq NM: PLUS - news) today announced financial results for its third quarter and nine months ended December 31, 2004. ePlus recorded an 85% increase in total revenues for the quarter, to $147.7 million, as compared to $79.8 million the prior year. Net earnings were $1.6 million, 38% less than prior year's quarter of $2.6 million. Basic earnings per share decreased 35% from $0.28 to $0.18, and fully diluted earnings declined 34% to $0.17, as compared to $0.26 the prior year. For the nine month period, ePlus recorded record revenues of $408 million, a 66% increase over $245 million the prior year, and net earnings of $5.8 million, a 23% decline from $7.6 million the prior year. Basic earnings per share decreased 19% to $0.65 from $0.81, and fully diluted earnings decreased 17% to $0.62 from $0.76. As of December 31, 2004, ePlus had total stockholders' equity of $117.3 million and cash of $18.7 million. On November 18, 2004, the Company announced a Stock Repurchase Plan, and the Company repurchased 19,032 shares of common stock at a cost of $0.2 million during the quarter. "We were very pleased by this fiscal year's increase in revenues, which have resulted from both organic growth and the successful Manchester acquisition" stated Phillip G. Norton, chairman, president and CEO of ePlus. "Our bottom line results were impacted by a reduction in revenues generated by our leasing business, especially in the federal sector, and to expenses relating to our corporate office relocation. In addition, we continue to have real estate sublease costs from the Manchester transaction whcih will be reduced over the next two quarters as we move to less expensive office space in those locations. The software sector of our business was negatively impacted due to management's focus on our patent infringement lawsuit, and the related customer uncertainty which we believe may have lengthened the sales and closing cycle." Mr. Norton continued "Despite the demands of the infringement litigation the Company achieved a number of successes in the software, technology distribution, and advanced solution areas. We held our first software customer summit, which was well attended and provided a great foundation for future collaboration between ePlus and its customers. We signed 12 customer software agreements, including our first Spend+ VisualEngine deal, which is with a Fortune 500 company, and we announced five new or upgraded software solutions. We gained a number of significant customer wins in our technology business. At our new HQ, we are demonstrating our patent-pending serverless office technology, which can reduce infrastructure costs significantly while providing enhanced data security and redundancy. And the successful defense of our patents has enhanced public awareness of ePlus and our Enterprise Cost Management solutions, and we believe will lead to more sales opportunities." Percentage changes stated above are calculated on actual figures from the unaudited financial statements, not on te rounded figures used herein. 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, document access and collaboration, 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 www.eplus.com, call 888-482-1122 or email info@eplus.com. ePlus, Spend+, Spend+ VisualEngine, eECM, ePlus Enterprise Cost Management, and/or other ePlus products referenced herein are either registered trademarks or trademarks of ePlus inc. in the U.S. and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners. "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; our ability to integrate new acquisitions; 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. All information set forth in this release and its attachments is as of February 14, 2005. ePlus inc. undertakes no duty to update this information. More information about potential factors that could affect ePlus inc.'s business and financial results is included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2004, the Quarterly Report on From 10-Q/A for the quarter ended September 30, 2004 (when filed) including (without limitation) under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," which are on file with the SEC and available at the SEC's website at www.sec.gov. Additional information will also be set forth in those sections in ePlus inc.'s Quarterly Report on Form 10-Q for the quarter ended December 31, 2004, which will be filed with the SEC on or before February 14, 2005. ePlus inc. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) Three months ended Nine months ended December 31 December 31 ---------------------------- ----------------------------- 2003 2004 2003 2004 ---------------------------- ----------------------------- REVENUES Sales of product $ 63,325,161 $133,728,559 $199,001,092 $363,762,423 Lease revenues 12,863,921 11,147,094 38,150,085 35,213,926 Fee and other income 3,611,337 2,774,614 8,153,491 8,558,351 ---------------------------- ----------------------------- TOTAL REVENUES 79,800,419 147,650,267 245,304,668 407,534,700 ---------------------------- ----------------------------- COSTS AND EXPENSES Cost of sales, product 55,762,511 120,892,787 175,638,870 326,396,119 Direct lease costs 3,221,144 3,060,531 7,966,044 8,667,800 Professional and other fees 1,229,687 600,484 2,566,545 5,180,734 Salaries and benefits 9,842,038 14,365,021 30,599,139 40,040,719 General and administrative expenses 3,785,695 4,370,363 10,654,776 13,025,413 Interest and financing costs 1,636,713 1,622,837 5,209,656 4,315,623 ---------------------------- ----------------------------- TOTAL COSTS AND EXPENSES 75,477,788 144,912,023 232,635,030 397,626,408 ---------------------------- ----------------------------- EARNINGS BEFORE PROVISION FOR INCOME TAXES 4,322,631 2,738,244 12,669,638 9,908,292 ---------------------------- ----------------------------- PROVISION FOR INCOME TAXES 1,729,052 1,122,680 5,067,855 4,062,401 ---------------------------- ----------------------------- NET EARNINGS $ 2,593,579 $ 1,615,564 $ 7,601,783 $ 5,845,891 ============================ ============================= NET EARNINGS PER COMMON SHARE - BASIC $0.28 $0.18 $0.81 $0.65 ============================ ============================= NET EARNINGS PER COMMON SHARE - DILUTED $0.26 $0.17 $0.76 $0.62 ============================ ============================= WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 9,308,979 8,957,280 9,410,173 8,933,702 WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 9,968,245 9,375,666 10,054,689 9,358,693
For more information, investors are encouraged to refer to the company's Form 10-Q to be filed on February 14, 2005. Contact: Kley Parkhurst, SVP ePlus inc. kparkhurst@eplus.com 703-984-8150 -----END PRIVACY-ENHANCED MESSAGE-----