-----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, QUFA/uEeE6tzVzsxrw4Au4K0m3FwsnGuk/jVnY8sD4tbvPWRKPl8VwgrhH+NfbIz ITuBbSX2qH+u2MW82VL8VA== 0001022408-05-000052.txt : 20050630 0001022408-05-000052.hdr.sgml : 20050630 20050630094500 ACCESSION NUMBER: 0001022408-05-000052 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050629 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20050630 DATE AS OF CHANGE: 20050630 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: 05926869 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): 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, Virginia 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 June 29, 2005, ePlus inc. (NASDAQ: "PLUS") announced by press release its results of operations for its quarter and year ended March 31, 2005. 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 June 29, 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: June 30, 2005 Chief Financial Officer -2- EX-99 2 f_exh.txt ePLUS REPORTS RECORD ANNUAL REVENUES, NET EARNINGS, AND EPS Earnings Conference Call Scheduled for Friday, July 1st HERNDON, VA - June 29, 2005 - ePlus inc. (Nasdaq NM: PLUS - news), a leading provider of Enterprise Cost Management (ECM) solutions, announced record financial results for its quarter and year ended March 31, 2005. For the year, net earnings increased 149% to $25.3 million from $10.2 million, and fully diluted earnings per share increased 164% to $2.68 from $1.02 per share. Revenues increased 74% to $576 million from $331 million the prior year. For the quarter ended March 31, 2005 net earnings increased 646% to $19.4 million from $2.6 million the prior year, and fully diluted earnings per share increased 692% to $2.06 from $0.26. Revenues for the quarter increased 97% to $168.3 million as compared to $85.3 million recorded in the fourth quarter of 2004. A significant contributor to the increase in net earnings and earnings per share for the year and quarter was a $37 million payment received in settlement of a patent infringement lawsuit recorded in the fourth quarter. The settlement payment was recorded as fee and other income. As a result, for the quarter, fee and other income increased to $39.9 million from $3.3 million the prior year, and for the twelve months ended March 31, 2005, increased to $48.5 million from $11.4 million the prior year. The Company repurchased 448,616 shares of common stock during the year at a total cost of $5.7 million. Weighted average diluted shares outstanding were 9.4 million shares on March 31, 2005 as compared to 10.0 million shares the prior year. The actual number of shares of common stock issued and outstanding on March 31, 2005 was 8.6 million shares. At March 31, 2005, the Company had cash and cash equivalents of $38.9 million and total stockholder's equity of $132 million, as compared to $25.2 million and $112 million, respectively, at March 31, 2004. "Competition intensified during our fiscal year ending March 31, 2005, and our increase in revenues was offset by margin pressure in all business lines, and increased costs" stated Phillip G. Norton, chairman, president and chief executive officer of ePlus. "In our software business, we successfully defended our intellectual property and received a substantial cash settlement, and continued to invest in software development. ePlus Technology, our wholly owned subsidiary engaged in IT fulfillment and advanced professional services, successfully acquired and integrated Manchester Technology's IT sales business, and its revenues increased both organically and through the proven execution of strategic acquisitions. With new customers from the acquisition and targeted marketing campaigns, we continue to expand the base from which to cross-sell our business process automation and our Enterprise Cost Management solutions." "Our objective going forward is to improve our internal systems to increase efficiency and reduce costs, seek out strategic acquisitions to enhance our portfolio of services and locations, and drive organic growth through more focused cross-selling and strengthening vendor relations" concluded Mr. Norton. Investors are encouraged to read the company's Form 10-K for the period ended March 31, 2005, when filed. Copies will be available at http://www.eplus.com/, http://www.sec.gov/, or by contacting the company at info@eplus.com or (888) 482-1122. 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, product and catalog content management, supplier enablement, strategic sourcing, financial services and document access and collaboration into a single integrated solution, all based on ePlus' leading business application software. The company is headquartered in Herndon, VA, and has more than 30 locations in the U.S. For more information, visit http://www.eplus.com/, call 888-482-1122 or email info@eplus.com. ePlus, eECM, and ePlus Enterprise Cost Management are registered trademarks ePlus inc. in the U.S. and/or other countries. "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. All information set forth in this release and its attachments is as of June 29, 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 Form 10-Q for the quarter ended December 31, 2005, and its Form 10-K for the fiscal year ended March 31, 2005 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 http://www.sec.gov/. - --------------------------------------------------------------------------------------------------------------------- ePlus inc. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS Year Ended March 31, --------------------------------- 2004 2005 --------------------------------- REVENUES Sales of product $ 267,898,937 $480,970,082 --------------------------------- Lease revenues 51,253,518 46,343,797 Fee and other income 11,405,033 48,484,643 --------------------------------- 62,658,551 94,828,440 --------------------------------- TOTAL REVENUES 330,557,488 575,798,522 --------------------------------- COSTS AND EXPENSES Cost of sales, product 236,283,350 432,774,189 --------------------------------- Direct lease costs 10,560,586 11,508,820 Professional and other fees 3,700,795 9,417,010 Salaries and benefits 41,325,224 54,858,181 General and administrative expenses 14,630,731 18,253,106 Interest and financing costs 6,847,072 5,981,054 --------------------------------- 77,064,408 100,018,171 --------------------------------- TOTAL COSTS AND EXPENSES 313,347,758 532,792,360 --------------------------------- Earnings before provision for income taxes 17,209,730 43,006,162 --------------------------------- Provision for income taxes 7,055,989 17,718,360 --------------------------------- NET EARNINGS $ 10,153,741 $25,287,802 ================================= NET EARNINGS PER COMMON SHARE - BASIC $1.09 $ 2.84 ================================= NET EARNINGS PER COMMON SHARE - DILUTED $1.02 $ 2.68 ================================= WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 9,332,324 8,898,112 WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 9,976,458 9,433,250
- ---------------------------------------------------------------------------------------------------------------------- ePlus inc. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of March 31, As of March 31, 2004 2005 -------------------------------------- ASSETS Cash and cash equivalents $25,155,011 $38,851,714 Accounts receivable, net of allowance for doubtful accounts of $1,584,358 and $1,959,049 as of March 31, 2004 and 2005, respectively 51,188,640 93,555,462 Notes receivable 51,986 114,708 Inventories 899,748 2,116,855 Investment in leases and leased equipment - net 186,667,141 189,468,926 Property and equipment - net 5,230,473 6,647,781 Other assets 4,765,782 3,859,791 Goodwill 20,243,310 26,125,212 -------------------------------------- TOTAL ASSETS $294,202,091 $360,740,449 ====================================== LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Accounts payable - equipment $9,993,077 $8,965,022 Accounts payable - trade 32,140,670 55,332,993 Salaries and commissions payable 583,934 771,487 Accrued expenses and other liabilities 11,983,798 32,945,931 Recourse notes payable 5,863 6,264,897 Nonrecourse notes payable 117,857,208 114,838,994 Deferred tax liability 10,053,226 9,519,309 -------------------------------------- Total Liabilities 182,617,776 228,638,633 COMMITMENTS AND CONTINGENCIES - - STOCKHOLDERS' EQUITY Preferred stock, $.01 par value; 2,000,000 shares authorized; none issued or outstanding - - Common stock, $.01 par value; 25,000,000 authorized, 10,717,242 issued and 8,939,958 outstanding at March 31, 2004; and 25,000,000 authorized, 10,807,392 issued and 8,581,492 outstanding at March 31, 2005 $107,172 $108,074 Additional paid-in capital 64,339,988 65,181,862 Treasury stock, at cost, 1,777,284 and 2,225,900 shares, respectively (17,192,886) (22,887,881) Retained earnings 64,211,474 89,499,096 Accumulated other comprehensive income - Foreign currency translation adjustment 118,567 200,665 -------------------------------------- Total Stockholders' Equity 111,584,315 132,101,816 -------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $294,202,091 $360,740,449 ====================================== - ----------------------------------------------------------------------------------------------------------------------
Contact: Kleyton L. Parkhurst, SVP ePlus inc. kparkhurst@eplus.com 703-984-8150 -----END PRIVACY-ENHANCED MESSAGE-----