Delaware
|
001-34167
|
54-1817218
|
||
(State or other jurisdiction of incorporation or organization)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
Exhibit No. | Description |
99.1
|
Press release dated November 4, 2015, issued by ePlus inc.
|
ePlus inc.
|
||||
By: /s/ Elaine D. Marion
|
||||
Elaine D. Marion
|
||||
Chief Financial Officer
|
·
|
Net sales increased 13.0% from second quarter fiscal year 2015
|
·
|
Gross profit up 12.5% to $71.9 million, with double digit growth in both Technology and Financing segments
|
·
|
Consolidated gross margin of 21.4%; gross margin on products and services of 19.4%
|
·
|
Adjusted EBITDA increased 30.3% to $27.9 million
|
·
|
Diluted earnings per share increased 31.9% to $2.15
|
·
|
Net sales up 6.4%; technology segment net sales up 6.5%
|
·
|
Gross profit increased 8.9% to $131.1 million, led by 9.7% increase in technology segment gross profit
|
·
|
Consolidated gross margin increased to 21.6% from 21.1%; gross margin on products and services expands 70 basis points to 19.7%
|
·
|
Adjusted EBITDA increased 19.3% to $44.1 million
|
·
|
Diluted earnings per share increased 21.8% to $3.35, as compared to non-GAAP diluted earnings per share of $2.75 in the prior year exclusive of other income
|
Three Months Ended September 30,
|
||||||||
2015
|
2014
|
Change
|
||||||
Sales of product and services
|
$324,259
|
|
$286,584
|
|
$37,675
|
|
13.1%
|
|
Fee and other income
|
1,721
|
|
1,782
|
|
(61)
|
|
(3.4%)
|
|
Net sales
|
325,980
|
|
288,366
|
|
37,614
|
|
13.0%
|
|
|
|
|
|
|
|
|
||
Cost of sales, product and services
|
261,208
|
|
230,742
|
|
30,466
|
|
13.2%
|
|
Gross profit
|
64,772
|
|
57,624
|
|
7,148
|
|
12.4%
|
|
Professional and other fees
|
1,305
|
|
1,321
|
|
(16)
|
|
(1.2%)
|
|
Salaries and benefits
|
33,476
|
|
31,963
|
|
1,513
|
|
4.7%
|
|
General and administrative
|
7,322
|
|
6,703
|
|
619
|
|
9.2%
|
|
Interest and financing costs
|
22
|
|
19
|
|
3
|
|
15.8%
|
|
Operating expenses
|
42,125
|
|
40,006
|
|
2,119
|
|
5.3%
|
|
|
|
|
|
|
|
|
||
Segment earnings
|
$22,647
|
|
$17,618
|
$5,029
|
28.5%
|
Three Months Ended September 30,
|
||||||||
2015
|
2014
|
Change
|
||||||
Financing revenue
|
$10,279
|
|
$9,059
|
|
$ 1,220
|
|
13.5%
|
|
Fee and other income
|
27
|
|
47
|
|
(20) (121)2
|
|
(42.6%)
|
|
Net sales
|
10,306
|
|
9,106
|
|
1,200
|
|
13.2%
|
|
|
|
|
|
|
|
|
||
Direct lease costs
|
3,157
|
|
2,806
|
|
351
|
|
12.5%
|
|
Gross profit
|
7,149
|
|
6,300
|
|
849
|
|
13.5%
|
|
Professional and other fees
|
208
|
|
256
|
|
(48)
|
|
(18.8%)
|
|
Salaries and benefits
|
2,264
|
|
2,289
|
|
(25)
|
|
(1.1%)
|
|
General and administrative
|
263
|
|
455
|
|
(192)
|
|
(42.2%)
|
|
Interest and financing costs
|
400
|
|
592
|
|
(192)
|
|
(32.4%)
|
|
Operating expenses
|
3,135
|
|
3,592
|
|
(457)
|
|
(12.7%)
|
|
Segment earnings
|
$4,014
|
|
$2,708
|
$1,306
|
48.2%
|
Six Months Ended September 30,
|
||||||||
2015
|
2014
|
Change
|
||||||
Sales of product and services
|
$583,955
|
|
$547,940
|
|
$36,015
|
|
6.6%
|
|
Fee and other income
|
3,532
|
|
3,829
|
|
(297)
|
|
(7.8%)
|
|
Net sales
|
587,487
|
|
551,769
|
|
35,718
|
|
6.5%
|
|
|
|
|
|
|
|
|
||
Cost of sales, product and services
|
468,926
|
|
443,650
|
|
25,276
|
|
5.7%
|
|
Gross profit
|
118,561
|
|
108,119
|
|
10,442
|
|
9.7%
|
|
Professional and other fees
|
2,567
|
|
2,907
|
|
(340)
|
|
(11.7%)
|
|
Salaries and benefits
|
66,428
|
|
62,633
|
|
3,795
|
|
6.1%
|
|
General and administrative
|
13,851
|
|
12,461
|
|
1,390
|
|
11.2%
|
|
Interest and financing costs
|
41
|
|
58
|
|
(17)
|
|
(29.3%)
|
|
Operating expenses
|
82,887
|
|
78,059
|
|
4,828
|
|
6.2%
|
|
|
|
|
|
|
|
|
||
Segment earnings
|
$35,674
|
|
$30,060
|
$5,614
|
18.7%
|
State & Local Government & Educational Institutions
|
23%
|
Technology
|
21%
|
Telecom, Media, and Entertainment
|
17%
|
Financial Services
|
10%
|
Healthcare
|
10%
|
Other
|
19%
|
Six Months Ended September 30,
|
||||||||
2015
|
2014
|
Change
|
||||||
Financing revenue
|
$18,625
|
|
$17,933
|
|
$ 692
|
|
3.9%
|
|
Fee and other income
|
40
|
|
74
|
|
(34) (121)2
|
|
(45.9%)
|
|
Net sales
|
18,665
|
|
18,007
|
|
658
|
|
3.7%
|
|
|
|
|
|
|
|
|
||
Direct lease costs
|
6,175
|
|
5,763
|
|
412
|
|
7.1%
|
|
Gross profit
|
12,490
|
|
12,244
|
|
246
|
|
2.0%
|
|
Professional and other fees
|
464
|
|
503
|
|
(39)
|
|
(7.8%)
|
|
Salaries and benefits
|
4,526
|
|
4,566
|
|
(40)
|
|
(0.9%)
|
|
General and administrative
|
513
|
|
970
|
|
(457)
|
|
(47.1%)
|
|
Interest and financing costs
|
934
|
|
1,197
|
|
(263)
|
|
(22.0%)
|
|
Operating expenses
|
6,437
|
|
7,236
|
|
(799)
|
|
(11.0%)
|
|
Operating income
|
6,053
|
5,008
|
1,045
|
20.9%
|
||||
Other income
|
-
|
|
1,434
|
|
(1,434)
|
|
(100.0%)
|
|
Segment earnings
|
$6,053
|
|
$6,442
|
$(389)
|
(6.0%)
|
·
|
On September 15, 2015, ePlus announced that its subsidiary, ePlus Technology, was named the Palo Alto Networks 2015 Americas Fast Growth Partner of the Year at the Palo Alto Networks Sales Kickoff in Las Vegas, NV. ePlus was recognized based on its accomplishments and success in criteria including year-over-year growth, technical certifications, and acquisition of net new customers.
|
·
|
On August 19, 2015, ePlus announced that its board of directors authorized the Company to repurchase up to 500,000 shares of ePlus' outstanding common stock over a 12 month period beginning August 17, 2015.
|
·
|
On August 11, 2015, ePlus announced that ePlus Technology achieved a Customer Satisfaction Excellence Gold Star from Cisco. The designation recognized ePlus for delivering outstanding customer service in the United States, based on a weighted average of a partner's pre-and post- sales support over a rolling 12-month period.
|
What:
|
ePlus Second Quarter FY16 Financial Results Conference Call
|
When:
|
Wednesday, November 4, 2015
|
Time:
|
4:30 p.m. ET
|
Live Call:
|
(877) 870-9226, domestic, (973) 890-8320, international
|
Replay:
|
(855) 859-2056, domestic, (404) 537-3406, international
|
Passcode:
|
48127667 (live and replay)
|
Webcast:
|
http://www.eplus.com/investors (live and replay)
|
ePlus inc. AND SUBSIDIARIES
|
|
|||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|||||
|
|
|
|
|
||
|
As of
|
As of
|
||||
|
September 30, 2015
|
March 31, 2015
|
||||
ASSETS
|
|
(amounts in thousands)
|
||||
Current assets:
|
|
|
||||
Cash and cash equivalents
|
$62,842
|
$76,175
|
||||
Accounts receivable—trade, net
|
259,089
|
218,458
|
||||
Accounts receivable—other, net
|
|
31,740
|
31,345
|
|||
Inventories—net
|
18,773
|
19,835
|
||||
Financing receivables—net, current
|
|
64,268
|
66,909
|
|||
Deferred costs
|
|
9,087
|
20,499
|
|||
Deferred tax assets
|
|
3,643
|
|
3,643
|
||
Other current assets
|
|
4,718
|
7,413
|
|||
Total current assets
|
|
454,160
|
444,277
|
|||
|
|
|
|
|||
Financing receivables and operating leases—net
|
87,847
|
76,991
|
||||
Property, equipment and other assets
|
8,969
|
9,480
|
||||
Goodwill and other intangible assets
|
|
39,511
|
40,798
|
|||
TOTAL ASSETS
|
$590,487
|
$571,546
|
||||
|
|
|
|
|||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||
LIABILITIES
|
||||||
Current liabilities:
|
|
|
|
|||
Accounts payable—equipment
|
|
$11,369
|
$20,330
|
|||
Accounts payable—trade
|
46,707
|
46,090
|
||||
Accounts payable—floor plan
|
127,053
|
99,418
|
||||
Salaries and commissions payable
|
13,994
|
14,860
|
||||
Deferred revenue
|
|
20,665
|
34,363
|
|||
Recourse notes payable—current
|
1,204
|
889
|
||||
Non-recourse notes payable—current
|
|
28,137
|
28,560
|
|||
Other current liabilities
|
16,476
|
13,575
|
||||
Total current liabilities
|
|
265,605
|
258,085
|
|||
|
|
|
|
|||
Recourse notes payable—long term
|
2,815
|
2,801
|
||||
Non-recourse notes payable—long term
|
10,510
|
24,314
|
||||
Deferred tax liability—long term
|
3,271
|
3,271
|
||||
Other liabilities
|
|
3,277
|
3,813
|
|||
TOTAL LIABILITIES
|
285,478
|
292,284
|
||||
|
|
|||||
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
||
|
|
|||||
STOCKHOLDERS' EQUITY
|
|
|
||||
Preferred stock, $.01 per share par value; 2,000 shares authorized; none issued or outstanding
|
-
|
|
-
|
|||
Common stock, $.01 per share par value; 25,000 shares authorized; 13,237
issued and 7,482 outstanding at September 30, 2015 and 13,114 issued and 7,389 outstanding at March 31, 2015 |
132
|
131
|
||||
Additional paid-in capital
|
114,934
|
111,072
|
||||
Treasury stock, at cost, 5,755 and 5,725 shares, at September 30, 2015
and March 31, 2015, respectively
|
(120,654)
|
(118,179)
|
||||
Retained earnings
|
310,970
|
286,477
|
||||
Accumulated other comprehensive income—foreign currency translation adjustment
|
|
(373)
|
(239)
|
|||
Total Stockholders' Equity
|
305,009
|
279,262
|
||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$590,487
|
$571,546
|
ePlus inc. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||||
(amounts in thousands, except per share data)
|
||||||||||||||||||
Net sales
|
$336,286
|
$297,472
|
|
$606,152
|
$569,776
|
|||||||||||||
Cost of sales
|
264,365
|
|
233,548
|
|
475,101
|
449,413
|
||||||||||||
Gross profit
|
71,921
|
63,924
|
131,051
|
120,363
|
||||||||||||||
|
|
|
|
|
||||||||||||||
Professional and other fees
|
1,513
|
|
1,577
|
|
3,031
|
3,410
|
||||||||||||
Salaries and benefits
|
35,740
|
|
34,252
|
|
70,954
|
67,199
|
||||||||||||
General and administrative expenses
|
7,585
|
|
7,158
|
|
14,364
|
13,431
|
||||||||||||
Interest and financing costs
|
422
|
|
611
|
|
975
|
1,255
|
||||||||||||
Operating expenses
|
45,260
|
|
43,598
|
|
89,324
|
85,295
|
||||||||||||
|
|
|
||||||||||||||||
OPERATING INCOME
|
26,661
|
|
20,326
|
|
41,727
|
35,068
|
||||||||||||
|
|
|
|
|||||||||||||||
Other income
|
-
|
|
-
|
|
-
|
1,434
|
||||||||||||
|
|
|
|
|||||||||||||||
EARNINGS BEFORE PROVISION FOR INCOME TAXES
|
26,661
|
|
20,326
|
|
41,727
|
|
36,502
|
|||||||||||
|
|
|
|
|||||||||||||||
PROVISION FOR INCOME TAXES
|
10,982
|
|
8,374
|
|
17,234
|
15,073
|
||||||||||||
|
|
|
|
|||||||||||||||
NET EARNINGS
|
$15,679
|
|
$11,952
|
|
$24,493
|
$21,429
|
||||||||||||
|
|
|
|
|||||||||||||||
NET EARNINGS PER COMMON SHARE—BASIC
|
$2.16
|
|
$1.63
|
|
$3.38
|
$2.88
|
||||||||||||
NET EARNINGS PER COMMON SHARE—DILUTED
|
$2.15
|
|
$1.63
|
|
$3.35
|
$2.86
|
||||||||||||
|
|
|
|
|||||||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING—BASIC
|
7,274
|
|
7,320
|
|
7,249
|
7,412
|
||||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING—DILUTED
|
7,297
|
|
7,345
|
|
7,310
|
7,461
|
ePlus inc. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP INFORMATION
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
Six Months Ended September 30,
|
||||||
|
2015
|
2014
|
2015
|
2014
|
|||
(amounts in thousands)
|
|||||||
GAAP: Sales of product and services
|
$324,259
|
|
$286,584
|
|
$583,955
|
|
$547,940
|
Plus: Costs incurred related to sales of
third party software assurance,
maintenance and services
|
106,837
|
105,654
|
|
179,449
|
|
169,756
|
|
Non-GAAP: Gross sales of product and services
|
$431,096
|
$392,238
|
|
$763,404
|
|
$717,696
|
|
Three Months Ended September 30,
|
Six Months Ended September 30,
|
||||||||
2015
|
2014
|
2015
|
2014
|
||||||
(amounts in thousands)
|
|||||||||
GAAP: Net earnings
|
$15,679
|
$11,952
|
|
$24,493
|
|
$21,429
|
|||
Plus: Provision for income taxes
|
10,982
|
8,374
|
|
17,234
|
|
15,073
|
|||
Less: Other income [1]
|
-
|
-
|
|
-
|
|
(1,434)
|
|||
Plus: Depreciation and amortization [2]
|
1,200
|
1,050
|
|
2,408
|
|
1,921
|
|||
Non-GAAP: Adjusted EBITDA
|
$27,861
|
$21,376
|
|
$44,135
|
|
$36,989
|
|||
Non-GAAP: Adjusted EBITDA margin
|
8.3%
|
7.2%
|
7.3%
|
6.5%
|
|
Six Months Ended September 30,
|
|||
|
2015 [4]
|
|
2014
|
|
(in thousands, except per share data)
|
||||
GAAP: Earnings before provision for income taxes
|
$41,727
|
|
$36,502
|
|
Less: Other income [1]
|
-
|
|
(1,434)
|
|
Non-GAAP: Earnings before provision for income taxes
|
41,727
|
|
35,068
|
|
Non-GAAP: Provision for income taxes [3]
|
17,234
|
|
14,481
|
|
Non-GAAP: Net earnings
|
$24,493
|
|
$20,587
|
|
|
|
|
|
|
GAAP: Net earnings per common share – diluted
|
$3.35
|
|
$2.86
|
|
Non-GAAP: Net earnings per common share – diluted
|
$3.35
|
|
$2.75
|
[1] Gain on retirement of a liability.
|
[2] Amount consists of depreciation and amortization for assets used internally.
|
[3] Non-GAAP tax rate is calculated at the same tax rate as GAAP earnings.
|
[4] Amounts for the six months ended September 30, 2015 are GAAP and provided for comparative purposes.
|