Delaware
|
001-34167
|
54-1817218
|
||
(State or other jurisdiction of incorporation or organization)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
99.1
|
Press release dated May 25, 2016, issued by ePlus inc.
|
ePlus inc.
|
||||
By: /s/ Elaine D. Marion
|
||||
Elaine D. Marion
|
||||
Chief Financial Officer
|
·
|
Net sales increased 12.0% to $299.4 million; technology segment net sales increased 12.9% to $292.2 million.
|
·
|
Adjusted gross billings of product and services increased 17.4% to $399.1 million.
|
·
|
Gross margin on sales of product and services expanded 60 basis points to 20.6%; consolidated gross margin increased 40 basis points to 22.4%.
|
·
|
Net earnings increased 11.8% to $10.0 million.
|
·
|
Adjusted EBITDA increased 11.8% to $18.2 million.
|
·
|
Diluted earnings per share increased 11.5% to $1.36. Non-GAAP diluted earnings per share increased 15.0% to $1.46.
|
·
|
Net sales increased 5.3% to $1.20 billion; technology segment net sales increased 5.5% to $1.17 billion.
|
·
|
Adjusted gross billings of product and services increased 8.5% to $1.56 billion.
|
·
|
Gross profit increased 7.2% to $262.1 million, led by a 7.5% increase in technology segment gross profit.
|
·
|
Consolidated gross margin increased to 21.8% from 21.4%; gross margin on sales of product and services expanded 50 basis points to 19.9%.
|
·
|
Net earnings fell 2.4% to $44.7 million, as compared to $45.8 million in the prior year which included non-operating income of $7.6 million.
|
·
|
Adjusted EBITDA increased 8.3% to $81.3 million.
|
·
|
Diluted earnings per share declined to $6.09 from $6.19 last year, partially attributable to non-operating income recorded last year.
|
·
|
Non-GAAP diluted earnings per share increased 10.0% to $6.33 from $5.75 in the prior year.
|
Three Months Ended March 31,
|
||||||||
2016
|
2015
|
Change
|
||||||
Sales of product and services
|
$291,523
|
|
$257,265
|
|
$34,258
|
|
13.3%
|
|
Fee and other income
|
690
|
|
1,596
|
|
(906)
|
|
(56.8%)
|
|
Net sales
|
292,213
|
|
258,861
|
|
33,352
|
|
12.9%
|
|
|
|
|
|
|
|
|
||
Cost of sales, product and services
|
231,353
|
|
205,821
|
|
25,532
|
|
12.4%
|
|
Gross profit
|
60,860
|
|
53,040
|
|
7,820
|
|
14.7%
|
|
Professional and other fees
|
1,330
|
|
1,275
|
|
55
|
|
4.3%
|
|
Salaries and benefits
|
38,614
|
|
32,805
|
|
5,809
|
|
17.7%
|
|
General and administrative
|
5,747
|
|
4,869
|
|
878
|
|
18.0%
|
|
Depreciation and amortization
|
1,805
|
1,189
|
616
|
51.8%
|
||||
Interest and financing costs
|
19
|
|
19
|
|
-
|
|
0.0%
|
|
Operating expenses
|
47,515
|
|
40,157
|
|
7,358
|
|
18.3%
|
|
|
|
|
|
|
|
|
||
Operating income
|
$13,345
|
|
$12,883
|
$462
|
3.6%
|
|||
Adjusted EBITDA
|
$15,150
|
$14,072
|
$1,078
|
7.7%
|
Three Months Ended March 31,
|
||||||||
2016
|
2015
|
Change
|
||||||
Financing revenue
|
$7,177
|
|
$8,389
|
|
$ (1,212)
|
|
(14.4%)
|
|
Fee and other income
|
13
|
|
15
|
|
(2)
|
|
(13.3%)
|
|
Net sales
|
7,190
|
|
8,404
|
|
(1,214)
|
|
(14.4%)
|
|
|
|
|
|
|
|
|
||
Direct lease costs
|
1,104
|
|
2,698
|
|
(1,594)
|
|
(59.1%)
|
|
Gross profit
|
6,086
|
|
5,706
|
|
380
|
|
6.7%
|
|
Professional and other fees
|
303
|
|
387
|
|
(84)
|
|
(21.7)
|
|
Salaries and benefits
|
2,364
|
|
2,450
|
|
(86)
|
|
(3.5%)
|
|
General and administrative
|
(7)
|
|
136
|
|
(143)
|
|
(105.1)
|
|
Depreciation and amortization
|
4
|
6
|
(2)
|
(33.3%)
|
||||
Interest and financing costs
|
388
|
|
530
|
|
(142)
|
|
(26.8%)
|
|
Operating expenses
|
3,052
|
|
3,509
|
|
(457)
|
|
(13.0%)
|
|
Operating income
|
$3,034
|
|
$2,197
|
$837
|
38.1%
|
|||
Adjusted EBITDA
|
$3,038
|
$2,203
|
$835
|
37.9%
|
Years Ended March 31,
|
||||||||
2016
|
2015
|
Change
|
||||||
Sales of product and services
|
$1,163,337
|
|
$1,100,884
|
|
$62,453
|
|
5.7%
|
|
Fee and other income
|
5,728
|
|
7,565
|
|
(1,837)
|
|
(24.3%)
|
|
Net sales
|
1,169,065
|
|
1,108,449
|
|
60,616
|
|
5.5%
|
|
|
|
|
|
|
|
|
||
Cost of sales, product and services
|
931,782
|
|
887,673
|
|
44,109
|
|
5.0%
|
|
Gross profit
|
237,283
|
|
220,776
|
|
16,507
|
|
7.5%
|
|
Professional and other fees
|
5,505
|
|
5,340
|
|
165
|
|
3.1%
|
|
Salaries and benefits
|
140,086
|
|
128,945
|
|
11,141
|
|
8.6%
|
|
General and administrative
|
22,401
|
|
21,127
|
|
1,274
|
|
6.0%
|
|
Depreciation and amortization
|
5,532
|
4,310
|
1,222
|
28.4%
|
||||
Interest and financing costs
|
70
|
|
96
|
|
(26)
|
|
(27.1%)
|
|
Operating expenses
|
173,594
|
|
159,818
|
|
13,776
|
|
8.6%
|
|
|
|
|
|
|
|
|
||
Operating income
|
$63,689
|
|
$60,958
|
$2,731
|
4.5%
|
|||
Adjusted EBITDA
|
$69,221
|
$65,268
|
$3,953
|
6.1%
|
Years Ended March 31,
|
|||||
2016
|
2015
|
Change
|
|||
Technology
|
23%
|
19%
|
4%
|
||
State & Local Government & Educational Institutions
|
22%
|
22%
|
-
|
||
Telecom, Media, and Entertainment
|
14%
|
18%
|
(4%)
|
||
Financial Services
|
12%
|
10%
|
2%
|
||
Healthcare
|
10%
|
10%
|
-
|
||
Other
|
19%
|
21%
|
(2%)
|
||
Total
|
100%
|
100%
|
Years Ended March 31,
|
||||||||
2016
|
2015
|
Change
|
||||||
Financing revenue
|
$35,091
|
|
$34,728
|
|
$ 363
|
|
1.0%
|
|
Fee and other income
|
43
|
|
105
|
|
(62)
|
|
(59.0%)
|
|
Net sales
|
35,134
|
|
34,833
|
|
301
|
|
0.9%
|
|
|
|
|
|
|
|
|
||
Direct lease costs
|
10,360
|
|
11,062
|
|
(702)
|
|
(6.3%)
|
|
Gross profit
|
24,774
|
|
23,771
|
|
1,003
|
|
4.2%
|
|
Professional and other fees
|
1,041
|
|
1,168
|
|
(127)
|
|
(10.9%)
|
|
Salaries and benefits
|
9,218
|
|
9,141
|
|
77
|
|
0.8%
|
|
General and administrative
|
729
|
|
1,404
|
|
(675)
|
|
(48.1%)
|
|
Depreciation and amortization
|
16
|
23
|
(7)
|
(30.4%)
|
||||
Interest and financing costs
|
1,708
|
|
2,283
|
|
(575)
|
|
(25.2%)
|
|
Operating expenses
|
12,712
|
|
14,019
|
|
(1,307)
|
|
(9.3%)
|
|
Operating income
|
$12,062
|
|
$9,752
|
2,310
|
23.7%
|
|||
Adjusted EBITDA
|
$12,078
|
$9,775
|
$2,303
|
23.6%
|
·
|
On April 20, 2016, ePlus announced that its subsidiary, ePlus Technology, inc., had been named an F5® Unity® Platinum Partner, recognizing that ePlus Technology meets F5's highest technical, accreditation and sales criteria requirements.
|
·
|
On April 5, 2016, ePlus announced that CRN®, a brand of The Channel Company, had named ePlus to its 2016 Tech Elite 250 list. This annual list honors an exclusive group of North American IT solution providers that have earned the highest number of advanced technical certifications from leading technology vendors.
|
·
|
On March 31, 2016, ePlus announced that ePlus Technology has expanded its Converged Infrastructure offerings to include ePlus Managed FlashStack services. FlashStack CI from Pure Storage is a flexible, all-flash converged infrastructure solution that combines the latest in computer, network, storage hardware and virtualization software into a single integrated architecture that speeds time to deployment, lowers overall IT costs and reduces deployment risks.
|
·
|
On March 8, 2016, ePlus announced that ePlus Technology was recognized for its innovation, architecture-led approach, leadership and best practices with four Cisco Partner Summit awards:
|
o
|
US Nationals Commercial Partner of the Year, Americas
|
o
|
Global Service Provider Partner of the Year, Americas West
|
o
|
US National Architectural Excellence – Collaboration, Americas
|
o
|
Architectural Excellence – Collaboration, Americas East.
|
·
|
On March 3, 2016, ePlus announced that it has been named a MEDITECH Certified Hardware Integrator. MEDITECH collaborates with leading vendors to create proven, integrated healthcare solutions for customers. ePlus can integrate the MEDITECH software solution into its existing suite of tools and services, enabling healthcare customers to have a more seamless Electronic Health Records (EHR) implementation and rollout.
|
What:
|
ePlus Fourth Quarter and FY16 Financial Results Conference Call
|
When:
|
Wednesday, May 25, 2016
|
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:
|
80134708 (live and replay)
|
Webcast:
|
http://www.eplus.com/investors (live and replay)
|
|
As of
|
As of
|
||
|
March 31, 2016
|
March 31, 2015
|
||
ASSETS
|
|
(amounts in thousands)
|
||
Current assets:
|
|
|
||
Cash and cash equivalents
|
$94,766
|
$76,175
|
||
Accounts receivable—trade, net
|
234,628
|
218,458
|
||
Accounts receivable—other, net
|
|
41,771
|
31,345
|
|
Inventories—net
|
33,343
|
19,835
|
||
Financing receivables—net, current
|
|
56,448
|
66,909
|
|
Deferred costs
|
|
6,371
|
20,499
|
|
Other current assets
|
|
10,649
|
7,413
|
|
Total current assets
|
|
477,976
|
440,634
|
|
|
|
|
|
|
Financing receivables and operating leases—net
|
75,906
|
76,991
|
||
Deferred tax assets—net
|
-
|
604
|
||
Property, equipment and other assets
|
8,644
|
9,248
|
||
Goodwill and other intangible assets—net
|
|
54,154
|
40,798
|
|
TOTAL ASSETS
|
$616,680
|
$568,275
|
||
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||
LIABILITIES
|
||||
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$76,780
|
$66,420
|
|
Accounts payable—floor plan
|
121,893
|
99,418
|
||
Salaries and commissions payable
|
14,981
|
14,860
|
||
Deferred revenue
|
|
18,344
|
34,363
|
|
Recourse notes payable—current
|
2,288
|
889
|
||
Non-recourse notes payable—current
|
|
26,042
|
28,560
|
|
Other current liabilities
|
13,118
|
13,575
|
||
Total current liabilities
|
|
273,446
|
258,085
|
|
|
|
|
|
|
Recourse notes payable—long term
|
1,054
|
2,801
|
||
Non-recourse notes payable—long term
|
18,038
|
24,314
|
||
Deferred tax liability—net
|
3,001
|
-
|
||
Other liabilities
|
|
2,263
|
3,813
|
|
TOTAL LIABILITIES
|
297,802
|
289,013
|
||
|
|
|||
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 7,365 outstanding at March 31, 2016 and 13,114 issued and 7,389 outstanding at March 31, 2015
|
132
|
131
|
||
Additional paid-in capital
|
117,511
|
111,072
|
||
Treasury stock, at cost, 5,872 and 5,725 shares, at March 31, 2016
and March 31, 2015, respectively
|
(129,518)
|
(118,179)
|
||
Retained earnings
|
331,224
|
286,477
|
||
Accumulated other comprehensive income—foreign currency translation adjustment
|
|
(471)
|
(239)
|
|
Total Stockholders' Equity
|
318,878
|
279,262
|
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$616,680
|
$568,275
|
Three Months Ended
|
Years Ended
|
||||||
March 31,
|
March 31,
|
||||||
2016
|
2015
|
2016
|
2015
|
||||
(amounts in thousands, except per share data)
|
|||||||
Net sales
|
$299,403
|
$267,265
|
|
$1,204,199
|
$1,143,282
|
||
Cost of sales
|
232,457
|
|
208,519
|
|
942,142
|
898,735
|
|
Gross profit
|
66,946
|
58,746
|
262,057
|
244,547
|
|||
|
|
|
|
|
|||
Professional and other fees
|
1,633
|
|
1,662
|
|
6,546
|
6,508
|
|
Salaries and benefits
|
40,978
|
|
35,255
|
|
149,304
|
138,086
|
|
General and administrative expenses
|
5,740
|
|
5,005
|
|
23,130
|
22,531
|
|
Depreciation and amortization
|
1,809
|
1,195
|
5,548
|
4,333
|
|||
Interest and financing costs
|
407
|
|
549
|
|
1,778
|
2,379
|
|
Operating expenses
|
50,567
|
|
43,666
|
|
186,306
|
173,837
|
|
|
|
|
|||||
OPERATING INCOME
|
16,379
|
|
15,080
|
|
75,751
|
70,710
|
|
|
|
|
|
||||
Other income
|
-
|
|
-
|
|
-
|
7,603
|
|
|
|
|
|
||||
EARNINGS BEFORE PROVISION FOR INCOME TAXES
|
16,379
|
|
15,080
|
|
75,751
|
|
78,313
|
|
|
|
|
||||
PROVISION FOR INCOME TAXES
|
6,422
|
|
6,170
|
|
31,004
|
32,473
|
|
|
|
|
|
||||
NET EARNINGS
|
$9,957
|
|
$8,910
|
|
$44,747
|
$45,840
|
|
|
|
|
|
||||
NET EARNINGS PER COMMON SHARE—BASIC
|
$1.37
|
|
$1.23
|
|
$6.17
|
$6.26
|
|
NET EARNINGS PER COMMON SHARE—DILUTED
|
$1.36
|
|
$1.22
|
|
$6.09
|
$6.19
|
|
|
|
|
|
||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING—BASIC
|
7,247
|
|
7,218
|
|
7,256
|
7,318
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING—DILUTED
|
7,308
|
|
7,289
|
|
7,344
|
7,393
|
Three Months Ended March 31,
|
Years Ended March 31,
|
||||||
|
2016
|
2015
|
2016
|
2015
|
|||
(amounts in thousands)
|
|||||||
GAAP: Sales of product and services
|
$291,523
|
|
$257,265
|
|
$1,163,337
|
|
$1,100,884
|
Plus: Costs incurred related to sales of
third party software assurance,
maintenance and services
|
107,613
|
82,816
|
|
393,126
|
|
334,155
|
|
Adjusted gross billings of product and services
|
$399,136
|
$340,081
|
|
$1,556,463
|
|
$1,435,039
|
|
Three Months Ended March 31,
|
Years Ended March 31,
|
||||||
|
2016
|
2015
|
2016
|
2015
|
|||
(amounts in thousands)
|
|||||||
GAAP: Net earnings
|
$9,957
|
$8,910
|
|
$44,747
|
|
$45,840
|
|
Plus: Provision for income taxes
|
6,422
|
6,170
|
|
31,004
|
|
32,473
|
|
Plus: Depreciation and amortization [1]
|
1,809
|
1,195
|
|
5,548
|
|
4,333
|
|
Less: Other income [2]
|
-
|
-
|
|
-
|
|
(7,603)
|
|
Non-GAAP: Adjusted EBITDA
|
$18,188
|
$16,275
|
|
$81,299
|
|
$75,043
|
|
Non-GAAP: Adjusted EBITDA margin
|
6.1%
|
6.1%
|
|
6.8%
|
|
6.6%
|
Three months ended March 31,
|
Years ended March 31,
|
||||||
2016
|
2015
|
2016
|
2015
|
||||
(amounts in thousands, except per share data)
|
|||||||
GAAP: Earnings before provision for income taxes
|
$16,379
|
|
$15,080
|
|
$75,751
|
|
$78,313
|
Plus: Acquisition related amortization expense [3]
|
1,124
|
568
|
2,917
|
1,888
|
|||
Less: Other income [2]
|
-
|
-
|
-
|
(7,603)
|
|||
Non-GAAP: Earnings before provision for income taxes
|
17,503
|
15,648
|
78,668
|
72,598
|
|||
Non-GAAP: Provision for income taxes [4]
|
6,863
|
6,402
|
32,188
|
30,069
|
|||
Non-GAAP: Net earnings
|
$10,640
|
$9,246
|
$46,480
|
$42,529
|
|||
GAAP net earnings per common share – diluted
|
$1.36
|
|
$1.22
|
|
$6.09
|
$6.19
|
|
Non-GAAP net earnings per common share – diluted
|
$1.46
|
$1.27
|
$6.33
|
$5.75
|
[1] Amount consists of depreciation and amortization for assets used internally.
|
[2] Gain on a class action claim and a retirement of a liability during the year ended March 31, 2015.
|
[3] Amount consists of amortization of intangible assets from acquired businesses.
|
[4] Non-GAAP provision for income taxes is calculated at the same effective tax rate as GAAP earnings.
|