-----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, VNAs5mHn2X6mUeN3E3ShR5oasNxgymVgRP0tyrZoTKfT8W/vwvX1b2v8OuKMiI6a 9G2W4mpWEHtq+vJI4bhHvg== 0001022408-05-000070.txt : 20050815 0001022408-05-000070.hdr.sgml : 20050815 20050815151048 ACCESSION NUMBER: 0001022408-05-000070 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050815 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20050815 DATE AS OF CHANGE: 20050815 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: 051026004 BUSINESS ADDRESS: STREET 1: 13595 DULLES TECHNOLOGY DRIVE CITY: HERNDON STATE: VA ZIP: 20171-3413 BUSINESS PHONE: 7039848400 MAIL ADDRESS: STREET 1: 13595 DULLES TECHNOLOGY DRIVE CITY: HERNDON STATE: VA ZIP: 20171-3413 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): August 15, 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, 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 August 15, 2005, ePlus inc. (NASDAQ: "PLUS") announced by press release its results of operations for its quarter ended June 30, 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 August 15, 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: August 15, 2005 Chief Financial Officer -2- EX-99 2 f_exh.txt ePlus Reports First Quarter Financial Results: Revenues Increase 40% to $150 Million Diluted Earnings Per Share Decreases 39% to $0.14; Net Earnings Decrease 40% to $1.3 Million; Conference Call Rescheduled to Thursday, August 18th HERNDON, VA - August 15, 2005 - ePlus inc. (Nasdaq NM: PLUS - news), a leading provider of Enterprise Cost Management (ECM) solutions, today announced financial results for its first quarter of fiscal year 2006, which ended June 30, 2005. Revenues for the quarter increased 40% to $149.8 million from $106.7 million the prior year, as a result of increased purchases by existing customers and the acquisition of the IT fulfillment, professional services, and software development and consulting service businesses of Manchester Technologies, Inc. Net earnings decreased 40% to $1.3 million from $2.2 million, and fully diluted earnings per share decreased 39% to $0.14 from $0.23. "We are pleased with the increase in revenues, which demonstrates the retention of both organic and acquired customers, and provides a long-term opportunity to cross-sell additional Enterprise Cost Management solutions," stated Phillip G. Norton chairman, president and CEO of ePlus. "During the quarter, we added more than 100 new IT sales customers and we continued to penetrate the IP Telephony (IPT) market with successful rollouts of advanced engineering services. Unfortunately, the quarter's earnings were affected by a reduction in gross margin on Sales of Product, which decreased to 9.5% from 10.7%, primarily resulting from a higher proportion of IT sales to a few lower margin, large customers, and continued softness in the leasing business. In addition, we experienced a rise in overhead expenses relating to our expansion, such as a 37% increase in Salaries and Benefits as our employee base increased from 573 to 651 due to the Manchester acquisition and higher headcounts in our engineering and software development units." Mr. Norton continued, "Our substantial progress in the Sarbanes-Oxley Section 404 compliance process will allow key ePlus personnel involved in SOX to refocus on their primary missions of reducing costs, eliminating redundancies, and improving margins for future quarters. A primary objective for all of our business lines is to refocus on the middle-market and to better penetrate our own customer base of more than 2,000 middle-market customers. Our goal is to increase cross-sale and up-sale penetration rates to drive higher margins and profitability throughout the company." The increase in Total Revenues for the quarter was driven by a 47% increase in Sales of Product to $134.9 million from $92.0 million, and by a 41% increase in Fee and Other Income to $3.6 million from $2.6 million. Lease Revenues declined 7% to $11.3 million from $12.2 million. Cash and Cash Equivalents were $22.2 million at June 30, 2005, as compared to $38.9 million at fiscal year-end March 31, 2005. The change was due, in part, to the reduction of accrued liabilities during the quarter. The Company acquired 55,000 shares under its share repurchase program for consideration of $622,250 during the quarter. Total Assets and Shareholders' Equity on June 30, 2005 were $364.4 million and $132.8 million, respectively, as compared to $360.7 million and $132.1 million on March 31, 2005. The financial results presented herein are unaudited. Investors are encouraged to review the company's Form 10-Q which will be filed on August 15, 2005 and to review other SEC filings including the company's audited financial statements contained in Form 10-K. Conference Call Rescheduled To Thursday, August 18th at 11:00 a.m. - ------------------------------------------------------------------ The Company will host a conference call at 11:00 a.m. E.S.T. on August 18, 2005. To listen, please call (973) 935-2107 or toll-free (800) 370-0923. Ask to be connected to the ePlus conference call. Live and archived webcasts can be accessed from www.eplus.com/investor. A telephone replay of the conference call will be available beginning at about 2:00 p.m. on August 18th through August 31st. Call (877) 519-4471 or (973) 341-3080 and enter the passcode 6319768. 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 www.eplus.com, call 888-482-1122 or email info@eplus.com. -------------- ePlus(R), ePlus Enterprise Cost Management(R), and eECM(R) are registered trademarks 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. All information set forth in this release and its attachments is as of August 15, 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, 2005, the Quarterly Report on Form 10-Q for the quarter ended December 31, 2004, and its Form 10-K for the fiscal year ended March 31, 2005 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 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) Three Months Ended June 30, 2004 2005 ----------------------------------------- REVENUES Sales of product $91,968,861 $134,869,844 Lease revenues 12,155,741 11,294,197 Fee and other income 2,574,131 3,639,760 ------------------ --------------- TOTAL REVENUES 106,698,733 149,803,801 ------------------ --------------- COSTS AND EXPENSES Cost of sales, product 82,160,785 122,106,503 Direct lease costs 2,676,998 3,777,145 Professional and other fees 1,764,765 947,313 Salaries and benefits 10,798,131 14,793,571 General and administrative expenses 4,219,475 4,461,489 Interest and financing costs 1,392,137 1,537,725 ------------------ --------------- TOTAL COSTS AND EXPENSES 103,012,291 147,623,746 ------------------ --------------- EARNINGS BEFORE PROVISION FOR INCOME TAXES 3,686,442 2,180,055 ------------------ --------------- PROVISION FOR INCOME TAXES 1,511,441 882,922 ------------------ --------------- NET EARNINGS $2,175,001 $1,297,133 ================== =============== NET EARNINGS PER COMMON SHARE - BASIC $0.24 $0.15 ================== =============== NET EARNINGS PER COMMON SHARE - DILUTED $0.23 $0.14 ================== =============== WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 8,921,590 8,545,744 WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 9,407,252 9,042,438 - --------------------------------------------------------------------------------------------
Contact: Kley Parkhurst, SVP ePlus inc. kparkhurst@eplus.com -------------------- 703-984-8150 -----END PRIVACY-ENHANCED MESSAGE-----