-----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, Am4bhdIyPNjjloMM9zm+hs2oD8+eIcu4HXjyd9e8wAOutJczOAYEjGDz0i8TIGB0 bYxaEBrMYMph+vWIRqMzzg== 0001022408-06-000014.txt : 20060214 0001022408-06-000014.hdr.sgml : 20060214 20060214133403 ACCESSION NUMBER: 0001022408-06-000014 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060213 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20060214 DATE AS OF CHANGE: 20060214 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: 06611791 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 UNITED STATES 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 13, 2006 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 February 13, 2006, ePlus inc. (NASDAQ: "PLUS") announced by press release its results of operations for its quarter ended December 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. In accordance with General Instruction 8.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statment or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. 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 13, 2006, 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, 2006 Chief Financial Officer -2- EX-99 2 f_exh.txt ePlus Reports 3rd Quarter FY06 Financial Results Company Generates Revenues of $163 Million; Net Earnings Reduced by Legal Expenses HERNDON, VA - February 13, 2006 - ePlus inc. (Nasdaq NM: PLUS - news) announced financial results for its third quarter and nine months ended December 31, 2005. ePlus recorded a 10% increase in total revenues for the quarter, to $163.1 million, as compared to $147.7 million in the quarter ended December 31, 2004. Net earnings were $1.2 million, 25% less than the prior year's third quarter earnings of $1.6 million. Basic earnings per share for the quarter decreased 17% from $0.18 to $0.15, and fully diluted earnings per share declined 18% to $0.14, as compared to $0.17 the prior year. During the quarter, ePlus spent $1.6 million on legal fees related to its patent infringement lawsuit. The impact to fully diluted earnings per share was approximately $0.11. Legal expenses are expected to continue at the same or greater levels until the matter is resolved. For the nine months ended December 31, 2005, ePlus recorded record revenues of $487.1 million, a 20% increase over $407.5 million the prior year, and net earnings of $4.4 million, a 24% decline from $5.8 million the prior year. Basic earnings per share decreased 18% to $0.53 from $0.65, and fully diluted earnings decreased 21% to $0.49 from $0.62, for the nine months ended December 31, 2005 and 2004, respectively. As of December 31, 2005, ePlus had total stockholders' equity of $131.1 million and cash of $17.4 million. On November 18, 2005, the Company announced a Stock Repurchase Plan, and the Company repurchased 276,756 shares of common stock at a cost of $3.7 million during the quarter. "Although the expenses relating to our patent infringement lawsuit significantly reduced earnings, we are pleased by the financial performance of our operating units" stated Phillip G. Norton, chairman, president and CEO of ePlus. "ePlus Technology continued to demonstrate top line organic growth, attract new customers, and expand its professional services footprint. Gross margin on Sales of Product increased slightly from the prior sequential quarter, to 10%, as we strive to optimize our product mix. ePlus Group added more than a dozen new customers, and sustained net lease assets at more than $200 million for the second consecutive quarter. ePlus Systems is focused on rolling-out OneSource to our customer base in March, and releasing our on-demand solution set in the first half of 2006." Percentage changes stated above are calculated on actual figures from the unaudited financial statements, not on the rounded figures used herein. About ePlus: ePlus is a leading provider of Enterprise Cost Management solutions to information technology, finance, procurement, operations, and supply chain professionals who want to reduce the costs of finding, purchasing, managing, and financing information technology goods and services. Our Enterprise Cost Management solutions provide sourcing, procurement, spend analytic, supplier management, document collaboration, asset management, professional services, and leasing to ePlus' 2,000+ customers. 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 http://www.eplus.com, call 888-482-1122 or email info@eplus.com. ePlus(R) and ePlus Enterprise Cost Management(R), and/or other ePlus products referenced herein are either registered trademarks or trademarks of ePlus inc. in the United States and/or other countries. The names of other companies and products mentioned herein may be the trademarks of their respective owners. Fiscal year 2006 results are preliminary and quarterly information is unaudited. Statements in this press release, which are not historical facts, may be deemed to be "forward-looking statements". These statements are based on management's current expectations and believes and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the 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 February 13, 2006. 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, and the Quarterly Report on Form 10-Q for the quarter ended September 30, 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. 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, 2005, which will be filed with the SEC on or about February 14, 2006. _____________________________________________________________________________________________________ ePlus inc. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) Three Months Ended Nine Months Ended December 31, December 31, 2004 2005 2004 2005 ---------------- ---------------- ---------------- ---------------- REVENUES Sales of product $133,728,559 $146,384,576 $363,762,423 $440,663,026 Lease revenues 11,147,094 13,758,427 35,213,926 36,968,881 Fee and other income 2,774,614 2,930,615 8,558,351 9,488,230 ---------------- ---------------- ---------------- ---------------- TOTAL REVENUES 147,650,267 163,073,618 407,534,700 487,120,137 ---------------- ---------------- ---------------- ---------------- COSTS AND EXPENSES Cost of sales, product 120,892,787 131,734,303 326,396,119 397,564,106 Direct lease costs 3,060,531 4,741,811 8,667,800 12,335,864 Professional and other fees 600,484 2,464,259 5,180,734 5,188,068 Salaries and benefits 14,365,021 15,677,592 40,040,719 45,482,831 General and administrative expenses 4,370,363 4,468,922 13,025,413 13,905,504 Interest and financing costs 1,622,837 1,950,431 4,315,623 5,202,926 ---------------- ---------------- ---------------- ---------------- TOTAL COSTS AND EXPENSES 144,912,023 161,037,318 397,626,408 479,679,299 ---------------- ---------------- ---------------- ---------------- EARNINGS BEFORE PROVISION FOR INCOME TAXES 2,738,244 2,036,300 9,908,292 7,440,838 ---------------- ---------------- ---------------- ---------------- PROVISION FOR INCOME TAXES 1,122,680 824,701 4,062,401 3,013,540 ---------------- ---------------- ---------------- ---------------- NET EARNINGS $1,615,564 $1,211,599 $5,845,891 $4,427,298 ================ ================ ================ ================ NET EARNINGS PER COMMON SHARE - BASIC $0.18 $0.15 $0.65 $0.53 ================ ================ ================ ================ NET EARNINGS PER COMMON SHARE - DILUTED $0.17 $0.14 $0.62 $0.49 ================ ================ ================ ================ WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 8,957,280 8,215,221 8,933,702 8,411,268 WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 9,375,666 8,890,948 9,358,693 8,992,035 For more information, investors are encouraged to refer to the Company's Form 10-Q to be filed on or around February 14, 2006. _____________________________________________________________________________________________________
Contact: Kley Parkhurst, SVP ePlus inc. kparkhurst@eplus.com -------------------- 703-984-8150 -----END PRIVACY-ENHANCED MESSAGE-----