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 August 2, 2016, issued by ePlus inc.
|
ePlus inc.
|
||||
By: /s/ Elaine D. Marion
|
||||
Elaine D. Marion
|
||||
Chief Financial Officer
|
·
|
Net sales increased 10.6% to $298.5 million; technology segment net sales increased 11.5% to $291.5 million.
|
·
|
Adjusted gross billings of product and services increased 19.6% to $397.5 million.
|
·
|
Gross margin on sales of product and services expanded 80 basis points to 20.8%; consolidated gross margin increased 80 basis points to 22.7%.
|
·
|
Net earnings increased 21.1% to $10.7 million.
|
·
|
Adjusted EBITDA increased 18.4% to $19.3 million.
|
·
|
Diluted earnings per share increased 24.0% to $1.50. Non-GAAP diluted earnings per share increased 23.2% to $1.54.
|
Three Months Ended June 30,
|
||||||||
2016
|
2015
|
Change
|
||||||
Sales of product and services
|
$290,181
|
|
$259,696
|
|
$30,485
|
|
11.7%
|
|
Fee and other income
|
1,276
|
|
1,811
|
|
(535)
|
|
(29.5%)
|
|
Net sales
|
291,457
|
|
261,507
|
|
29,950
|
|
11.5%
|
|
|
|
|
|
|
|
|
||
Cost of sales, product and services
|
229,847
|
|
207,718
|
|
22,129
|
|
10.7%
|
|
Gross profit
|
61,610
|
|
53,789
|
|
7,821
|
|
14.5%
|
|
Professional and other fees
|
1,497
|
|
1,262
|
|
235
|
|
18.6%
|
|
Salaries and benefits
|
37,485
|
|
32,952
|
|
4,533
|
|
13.8%
|
|
General and administrative
|
6,231
|
|
5,325
|
|
906
|
|
17.0%
|
|
Depreciation and amortization
|
1,771
|
1,204
|
567
|
47.1%
|
||||
Interest and financing costs
|
-
|
|
19
|
|
(19)
|
|
(100.0%)
|
|
Operating expenses
|
46,984
|
|
40,762
|
|
6,222
|
|
15.3%
|
|
|
|
|
|
|
|
|
||
Segment earnings
|
$14,626
|
|
$13,027
|
$1,599
|
12.3%
|
|||
Adjusted EBITDA
|
$16,397
|
$14,231
|
$2,166
|
15.2%
|
Twelve Months Ended June 30,
|
||||||
2016
|
2015
|
Change
|
||||
Technology
|
22%
|
20%
|
2%
|
|||
State & Local Government & Educational Institutions
|
22%
|
23%
|
(1%)
|
|||
Telecom, Media, and Entertainment
|
14%
|
18%
|
(4%)
|
|||
Financial Services
|
12%
|
10%
|
2%
|
|||
Healthcare
|
11%
|
10%
|
1%
|
|||
Other
|
19%
|
19%
|
-
|
|||
Total
|
100%
|
100%
|
Three Months Ended June 30,
|
||||||||
2016
|
2015
|
Change
|
||||||
Financing revenue
|
$6,987
|
|
$8,346
|
|
$ (1,359)
|
|
(16.3%)
|
|
Fee and other income
|
59
|
|
13
|
|
46
|
|
353.8%
|
|
Net sales
|
7,046
|
|
8,359
|
|
(1,313)
|
|
(15.7%)
|
|
|
|
|
|
|
|
|
||
Direct lease costs
|
992
|
|
3,018
|
|
(2,026)
|
|
(67.1%)
|
|
Gross profit
|
6,054
|
|
5,341
|
|
713
|
|
13.3%
|
|
Professional and other fees
|
289
|
|
256
|
|
33
|
|
12.9%
|
|
Salaries and benefits
|
2,313
|
|
2,262
|
|
51
|
|
2.3%
|
|
General and administrative
|
239
|
|
246
|
|
(7)
|
|
(2.8%)
|
|
Depreciation and amortization
|
4
|
4
|
-
|
0.0%
|
||||
Interest and financing costs
|
349
|
|
534
|
|
(185)
|
|
(34.6%)
|
|
Operating expenses
|
3,194
|
|
3,302
|
|
(108)
|
|
(3.3%)
|
|
Segment earnings
|
$2,860
|
|
$2,039
|
$821
|
40.3%
|
|||
Adjusted EBITDA
|
$2,864
|
$2,043
|
$821
|
40.2%
|
·
|
On July 21, 2016, the ePlus Board of Directors promoted Mark P. Marron to Chief Executive Officer and President, effective August 1, 2016. Mr. Marron succeeded Phillip G. Norton, who assumed the new position of Executive Chairman. Mr. Marron was previously Chief Operating Officer of ePlus inc. and President of ePlus Technology, inc. Mr. Marron joined ePlus as senior vice president of sales in 2005 and was promoted to COO in 2010.
|
·
|
On July 14, 2016, ePlus inc. announced that its subsidiary, ePlus Technology, inc., has been named Emerson Network Power North American 2015 Solution Provider of the Year. Emerson Network Power, the world's leading provider of critical infrastructure for information and communication technology systems, presented the award at its annual Partner Summit in Columbus, Ohio, in June 2016.
|
·
|
On June 8, 2016, ePlus inc. announced that its subsidiary, ePlus Technology, inc., has been named to The Channel Company's 2016 CRN Solution Provider 500. The SP500 list is CRN's annual ranking of the largest technology integrators, solution providers, IT consultants in North America by revenue. ePlus placed #34 in the annual ranking.
|
Date:
Time:
Live Call:
Replay:
Passcode:
Webcast:
|
Tuesday, August 2, 2016
4:30 p.m. ET
(877) 870-9226, domestic, (973) 890-8320, international
(855) 859-2056, domestic, (404) 537-3406, international
46135651 (live and replay)
http://www.eplus.com/investors (live and replay)
|
ePlus inc. AND SUBSIDIARIES
|
|
|||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|||||
(except per share data)
|
|
|
|
|
||
|
As of
|
As of
|
||||
|
June 30, 2016
|
March 31, 2016
|
||||
ASSETS
|
|
(amounts in thousands)
|
||||
Current assets:
|
|
|
||||
Cash and cash equivalents
|
$78,807
|
$94,766
|
||||
Accounts receivable—trade, net
|
258,829
|
234,628
|
||||
Accounts receivable—other, net
|
|
37,909
|
41,771
|
|||
Inventories—net
|
46,376
|
33,343
|
||||
Financing receivables—net, current
|
|
72,826
|
56,448
|
|||
Deferred costs
|
|
4,267
|
6,371
|
|||
Other current assets
|
|
7,605
|
10,649
|
|||
Total current assets
|
|
506,619
|
477,976
|
|||
|
|
|
|
|||
Financing receivables and operating leases—net
|
70,285
|
75,906
|
||||
Property, equipment and other assets
|
9,526
|
8,644
|
||||
Goodwill and other intangible assets—net
|
|
52,669
|
54,154
|
|||
TOTAL ASSETS
|
$639,099
|
$616,680
|
||||
|
|
|
|
|||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||
LIABILITIES
|
||||||
Current liabilities:
|
|
|
|
|||
Accounts payable
|
|
$74,608
|
$76,780
|
|||
Accounts payable—floor plan
|
144,509
|
121,893
|
||||
Salaries and commissions payable
|
14,102
|
14,981
|
||||
Deferred revenue
|
|
17,511
|
18,344
|
|||
Recourse notes payable—current
|
2,299
|
2,288
|
||||
Non-recourse notes payable—current
|
|
39,151
|
26,042
|
|||
Other current liabilities
|
15,491
|
13,118
|
||||
Total current liabilities
|
|
307,671
|
273,446
|
|||
|
|
|
|
|||
Recourse notes payable—long term
|
898
|
1,054
|
||||
Non-recourse notes payable—long term
|
14,581
|
18,038
|
||||
Deferred tax liability—net
|
2,993
|
3,001
|
||||
Other liabilities
|
|
3,202
|
2,263
|
|||
TOTAL LIABILITIES
|
329,345
|
297,802
|
||||
|
|
|||||
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; 13,296 issued and 7,167 outstanding at June 30 2016 and 13,237 issued and 7,365 outstanding at March 31, 2016
|
133
|
132
|
||||
Additional paid-in capital
|
118,969
|
117,511
|
||||
Treasury stock, at cost, 6,129 and 5,872 shares, at June 30, 2016
and March 31, 2016, respectively
|
(150,555)
|
(129,518)
|
||||
Retained earnings
|
341,895
|
331,224
|
||||
Accumulated other comprehensive income—foreign currency
translation adjustment |
|
(688)
|
(471)
|
|||
Total Stockholders' Equity
|
309,754
|
318,878
|
||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$639,099
|
$616,680
|
ePlus inc. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||
Three Months Ended June 30,
|
||||||||||||||
2016
|
2015
|
|||||||||||||
(amounts in thousands, except per share data)
|
||||||||||||||
Net sales
|
$298,503
|
$269,866
|
|
|||||||||||
Cost of sales
|
230,839
|
|
210,736
|
|
||||||||||
Gross profit
|
67,664
|
59,130
|
||||||||||||
|
|
|
|
|||||||||||
Professional and other fees
|
1,786
|
|
1,518
|
|
||||||||||
Salaries and benefits
|
39,798
|
|
35,214
|
|
||||||||||
General and administrative expenses
|
6,470
|
|
5,571
|
|
||||||||||
Depreciation and amortization
|
1,775
|
1,208
|
||||||||||||
Interest and financing costs
|
349
|
|
553
|
|
||||||||||
Operating expenses
|
50,178
|
|
44,064
|
|
||||||||||
|
|
|
||||||||||||
EARNINGS BEFORE PROVISION FOR INCOME TAXES
|
17,486
|
|
15,066
|
|
||||||||||
|
|
|
||||||||||||
PROVISION FOR INCOME TAXES
|
6,815
|
|
6,252
|
|
||||||||||
|
|
|
||||||||||||
NET EARNINGS
|
$10,671
|
|
$8,814
|
|
||||||||||
|
|
|
||||||||||||
NET EARNINGS PER COMMON SHARE—BASIC
|
$1.52
|
|
$1.22
|
|
||||||||||
NET EARNINGS PER COMMON SHARE—DILUTED
|
$1.50
|
|
$1.21
|
|
||||||||||
|
|
|
||||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING—BASIC
|
7,033
|
|
7,225
|
|
||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING—DILUTED
|
7,108
|
|
7,301
|
|
ePlus inc. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP INFORMATION
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|||||
|
2016
|
2015
|
|||
(amounts in thousands)
|
|||||
GAAP: Sales of product and services
|
$290,181
|
|
$259,696
|
|
|
Plus: Costs incurred related to sales of
third party software assurance, maintenance and services
|
107,292
|
72,612
|
|
||
Non-GAAP Adjusted gross billings of product and services
|
$397,473
|
$332,308
|
|
||
Three Months Ended June 30,
|
|||||
|
2016
|
2015
|
|||
(amounts in thousands)
|
|||||
GAAP: Net earnings
|
$10,671
|
$8,814
|
|
||
Plus: Provision for income taxes
|
6,815
|
6,252
|
|
||
Plus: Depreciation and amortization [1]
|
1,775
|
1,208
|
|
||
Non-GAAP: Adjusted EBITDA
|
$19,261
|
$16,274
|
|
||
Non-GAAP: Adjusted EBITDA margin
|
6.5%
|
6.0%
|
|
||
Three Months Ended June 30,
|
|||||
2016
|
2015
|
||||
(amounts in thousands)
|
|||||
Technology Segment
|
|||||
Earnings before tax
|
$14,626
|
$13,027
|
|||
Depreciation and amortization [1]
|
1,771
|
1,204
|
|||
Adjusted EBITDA
|
$16,397
|
$14,231
|
|||
Financing Segment
|
|||||
Earnings before tax
|
$2,860
|
$2,039
|
|||
Depreciation and amortization [1]
|
4
|
4
|
|||
Adjusted EBITDA
|
$2,864
|
$2,043
|
Three months ended June 30,
|
|||||
2016
|
2015
|
||||
(amounts in thousands, except per share data)
|
|||||
GAAP: Earnings before provision for income taxes
|
$17,486
|
|
$15,066
|
|
|
Plus: Acquisition related amortization expense [2]
|
1,089
|
568
|
|||
Non-GAAP: Earnings before provision for income taxes
|
18,575
|
15,634
|
|||
Non-GAAP: Provision for income taxes [3]
|
7,616
|
6,488
|
|||
Non-GAAP: Net earnings
|
$10,959
|
$9,146
|
|||
GAAP net earnings per common share – diluted
|
$1.50
|
|
$1.21
|
|
|
Non-GAAP net earnings per common share – diluted
|
$1.54
|
$1.25
|
[1] Amount consists of depreciation and amortization for assets used internally.
|
[2] Amount consists of amortization of intangible assets from acquired businesses.
|
[3] Non-GAAP provision for income taxes is calculated based on the effective tax rate for the non-GAAP adjustments. For comparative purposes, the non-GAAP provision for income taxes for the three months ended June 30, 2016 excludes the tax benefit of $0.4 million associated with adopting the stock-based compensation accounting standard.
|