Delaware
|
001-34167
|
54-1817218
|
||
(State or other jurisdiction of incorporation or organization)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $.01 par value |
PLUS |
NASDAQ Global Select Market |
Exhibit No.
|
Description
|
99.1
|
Press release dated August 7, 2019, issued by ePlus inc.
|
ePlus inc.
|
||||
By: /s/ Elaine D. Marion
|
||||
Elaine D. Marion
|
||||
Chief Financial Officer
|
•
|
Net sales increased 7.0% to $381.4 million; technology segment net sales increased 6.2% to $368.5 million; service revenues increased 35.8% to $45.8
million; financing segment net sales increased 32.8% to $12.8 million.
|
•
|
Adjusted gross billings increased 13.7% to $548.4 million.
|
•
|
Consolidated gross profit increased 14.8% to $92.6 million.
|
•
|
Consolidated gross margin was 24.3%, an increase of 170 basis points.
|
•
|
Net earnings increased 6.0% to $16.2 million.
|
•
|
Adjusted EBITDA increased 12.6% to $28.6 million.
|
•
|
Diluted earnings per share increased 7.1% to $1.20. Non-GAAP diluted earnings per share increased 12.5% to $1.44.
|
•
|
In July, ePlus announced the addition of Ben Xiang to a newly created seat on its board of directors. Mr. Xiang is a global executive for the Internet of Things, Artificial Intelligence, and Mixed-Reality at Ingram Micro, the world’s largest IT distributor, and brings a wealth of experience in
digital, IoT, analytics and other emerging technologies, as well as a strong global background.
|
|
•
|
In the month of June:
|
|
o
|
ePlus announced the launch of Vulnerability Management as a Service, providing identification, prioritization, and remediation of organizational cyber
security weakness.
|
|
o
|
ePlus announced that ePlus Technology, inc. was named NetApp Cloud First Partner of the Year.
|
|
o
|
ePlus announced the launch of its Service Desk offering, further extending its Managed Services capabilities.
|
|
o
|
ePlus hosted the ePlus Technology Cyber Security Summit, where security professionals connected with their peers, exchanged ideas, and shared subject
matter expertise.
|
|
o
|
ePlus announced that CRN® has named ePlus Technology, inc. to its 2019 Solution Provider 500 list.
|
Date:
|
Wednesday, August 7, 2019
|
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:
|
2975458 (live and replay)
|
Webcast:
|
http://www.eplus.com/investors (live and replay)
|
ePlus inc. AND SUBSIDIARIES
|
|
||||
UNAUDITED CONSOLIDATED BALANCE SHEETS
|
|||||
(in thousands, except per share amounts)
|
|||||
|
June 30, 2019
|
March 31, 2019
|
|||
ASSETS
|
|||||
Current assets:
|
|
|
|||
Cash and cash equivalents
|
$35,604
|
$79,816
|
|||
Accounts receivable—trade, net
|
366,163
|
299,899
|
|||
Accounts receivable—other, net
|
|
41,949
|
41,328
|
||
Inventories
|
58,205
|
50,493
|
|||
Financing receivables—net, current
|
|
98,419
|
63,767
|
||
Deferred costs
|
|
17,665
|
17,301
|
||
Other current assets
|
|
8,227
|
7,499
|
||
Total current assets
|
|
626,232
|
560,103
|
||
|
|
|
|
||
Financing receivables and operating leases—net
|
71,097
|
59,032
|
|||
Property, equipment and other assets
|
30,211
|
17,328
|
|||
Goodwill
|
110,754
|
110,807
|
|||
Other intangible assets—net
|
|
36,519
|
38,928
|
||
TOTAL ASSETS
|
$874,813
|
$786,198
|
|||
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|||||
LIABILITIES
|
|||||
Current liabilities:
|
|
|
|
||
Accounts payable
|
|
$108,954
|
$86,801
|
||
Accounts payable—floor plan
|
136,013
|
116,083
|
|||
Salaries and commissions payable
|
20,298
|
21,286
|
|||
Deferred revenue
|
|
48,613
|
47,251
|
||
Recourse notes payable—current
|
-
|
28
|
|||
Non-recourse notes payable—current
|
|
64,583
|
38,117
|
||
Other current liabilities
|
28,959
|
19,285
|
|||
Total current liabilities
|
|
407,420
|
328,851
|
||
|
|
|
|
||
Non-recourse notes payable—long term
|
8,362
|
10,502
|
|||
Deferred tax liability—net
|
4,925
|
4,915
|
|||
Other liabilities
|
|
25,463
|
17,677
|
||
TOTAL LIABILITIES
|
446,170
|
361,945
|
|||
|
|
||||
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|
||||
STOCKHOLDERS' EQUITY
|
|
|
|||
Preferred stock, $.01 per share par value; 2,000 shares authorized; none outstanding
|
-
|
|
-
|
||
Common stock, $.01 per share par value; 25,000 shares
authorized; 13,509
outstanding at June 30, 2019 and
13,611 outstanding at
March 31, 2019
|
144
|
143
|
|||
Additional paid-in capital
|
139,162
|
137,243
|
|||
Treasury stock, at cost, 880 shares at June 30, 2019 and
693 shares at March 31, 2019
|
(67,454) | (53,999) | |||
Retained earnings
|
357,325
|
341,137
|
|||
Accumulated other comprehensive income—foreign currency translation adjustment
|
|
(534)
|
(271)
|
||
Total Stockholders' Equity
|
428,643
|
424,253
|
|||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$874,813
|
$786,198
|
ePlus inc. AND SUBSIDIARIES
|
||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||
(in thousands, except per share amounts)
|
||||
Three Months Ended June 30,
|
||||
2019
|
2018
|
|||
Net sales
|
|
|||
Product
|
$335,601
|
$322,817
|
||
Services
|
45,771
|
33,715
|
||
Total
|
381,372
|
356,532
|
||
Cost of sales
|
||||
Product
|
260,063
|
255,812
|
||
Services
|
28,670
|
20,017
|
||
Total
|
288,733
|
|
275,829
|
|
Gross profit
|
92,639
|
80,703
|
||
|
|
|
|
|
Selling, general, and administrative
|
65,787
|
|
56,966
|
|
Depreciation and amortization
|
3,463
|
2,790
|
||
Interest and financing costs
|
628
|
|
476
|
|
Operating expenses
|
69,878
|
|
60,232
|
|
|
|
|
||
Operating income
|
22,761
|
|
20,471
|
|
|
|
|
||
Other income (expense)
|
(45)
|
|
97
|
|
|
|
|
||
Earnings before taxes
|
22,716
|
|
20,568
|
|
|
|
|
||
Provision for income taxes
|
6,528
|
|
5,295
|
|
|
|
|
||
Net earnings
|
$16,188
|
|
$15,273
|
|
|
|
|
||
Net earnings per common share—basic
|
$1.21
|
|
$1.14
|
|
Net earnings per common share—diluted
|
$1.20
|
|
$1.12
|
|
|
|
|
||
Weighted average common shares outstanding—basic
|
13,356
|
13,434
|
||
Weighted average common shares outstanding—diluted
|
13,457
|
13,597
|
Technology Segment
|
|||||
Three Months Ended June 30,
|
|||||
2019
|
2018
|
% Change
|
|||
(in thousands)
|
|||||
Net sales
|
|||||
Product
|
$322,764
|
$313,149
|
3.1%
|
||
Services
|
45,771
|
33,715
|
35.8%
|
||
Total
|
368,535
|
346,864
|
6.2%
|
||
Cost of sales
|
|||||
Product
|
258,054
|
254,064
|
1.6%
|
||
Services
|
28,670
|
20,017
|
43.2%
|
||
Total
|
286,724
|
274,081
|
4.6%
|
||
Gross profit
|
81,811
|
72,783
|
12.4%
|
||
Selling, general, and administrative
|
62,667
|
54,454
|
15.1%
|
||
Depreciation and amortization
|
3,407
|
2,789
|
22.2%
|
||
Operating expenses
|
66,074
|
57,243
|
15.4%
|
||
Operating income
|
$15,737
|
$15,540
|
1.3%
|
||
Adjusted gross billings
|
$548,363
|
$482,301
|
13.7%
|
||
Adjusted EBITDA
|
$21,419
|
$20,341
|
5.3%
|
Technology Segment Net Sales by Customer End Market
|
|||||
Twelve Months Ended June 30,
|
|||||
2019
|
2018
|
Change
|
|||
Technology
|
21%
|
24%
|
(3%)
|
||
SLED
|
17%
|
17%
|
-
|
||
Financial Services
|
15%
|
15%
|
-
|
||
Healthcare
|
15%
|
14%
|
1%
|
||
Telecom, Media, & Entertainment
|
14%
|
14%
|
-
|
||
All others
|
18%
|
16%
|
2%
|
||
Total
|
100%
|
100%
|
Financing Segment
|
|||||
Three Months Ended June 30,
|
|||||
2019
|
2018
|
% Change
|
|||
(in thousands)
|
|||||
Net product sales
|
$12,837
|
$9,668
|
32.8%
|
||
Cost of product sales
|
2,009
|
1,748
|
14.9%
|
||
Gross profit
|
10,828
|
7,920
|
36.7%
|
||
Selling, general, and administrative
|
3,120
|
2,512
|
24.2%
|
||
Depreciation and amortization
|
56
|
1
|
5,500.0%
|
||
Interest and financing costs
|
628
|
476
|
31.9%
|
||
Operating expenses
|
3,804
|
2,989
|
27.3%
|
||
Operating income
|
$7,024
|
$4,931
|
42.4%
|
||
Adjusted EBITDA
|
$7,148
|
$5,029
|
42.1%
|
Three Months Ended June 30,
|
|||
|
2019
|
2018
|
|
(in thousands)
|
|||
Technology segment net sales
|
$368,535
|
$346,864
|
|
Costs incurred related to sales of third party maintenance, software assurance and subscription/Saas licenses, and services
|
179,828
|
135,437
|
|
Adjusted gross billings
|
$548,363
|
$482,301
|
Three Months Ended June 30,
|
|||
|
2019
|
2018
|
|
(in thousands)
|
|||
Consolidated
|
|||
Net earnings
|
$16,188
|
$15,273
|
|
Provision for income taxes
|
6,528
|
5,295
|
|
Depreciation and amortization [1]
|
3,463
|
2,790
|
|
Share based compensation
|
1,942
|
1,693
|
|
Acquisition and integration expense
|
401
|
416
|
|
Other (income) expense [2]
|
45
|
(97)
|
|
Adjusted EBITDA
|
$28,567
|
$25,370
|
Three Months Ended June 30,
|
|||
|
2019
|
2018
|
|
(in thousands)
|
|||
Technology Segment
|
|||
Operating income
|
$15,737
|
$15,540
|
|
Depreciation and amortization [1]
|
3,407
|
2,789
|
|
Share based compensation
|
1,874
|
1,596
|
|
Acquisition and integration expense
|
401
|
416
|
|
Adjusted EBITDA
|
$21,419
|
$20,341
|
|
Financing Segment
|
|||
Operating income
|
$7,024
|
$4,931
|
|
Depreciation and amortization [1]
|
56
|
1
|
|
Share based compensation
|
68
|
97
|
|
Adjusted EBITDA
|
$7,148
|
$5,029
|
|
Three Months Ended June 30,
|
|||
2019
|
2018
|
||
(in thousands)
|
|||
GAAP: Earnings before taxes
|
$22,716
|
|
$20,568
|
Share based compensation
|
1,942
|
1,693
|
|
Acquisition and integration expense
|
401
|
416
|
|
Acquisition related amortization expense [3]
|
2,187
|
1,764
|
|
Other (income) expense [2]
|
45
|
(97)
|
|
Non-GAAP: Earnings before taxes
|
27,291
|
24,344
|
|
GAAP: Provision for income taxes
|
6,528
|
5,295
|
|
Share based compensation
|
559
|
483
|
|
Acquisition and integration expense
|
115
|
119
|
|
Acquisition related amortization expense [3]
|
607
|
474
|
|
Other (income) expense [2]
|
13
|
(28)
|
|
Tax benefit on restricted stock
|
10
|
569
|
|
Non-GAAP: Provision for income taxes
|
7,832
|
6,912
|
|
Non-GAAP: Net earnings
|
$19,459
|
$17,432
|
|
Three Months Ended June 30,
|
|||
2019
|
2018
|
||
GAAP: Net earnings per common share – diluted
|
$1.20
|
$1.12
|
|
Share based compensation
|
0.10
|
0.09
|
|
Acquisition and integration expense
|
0.02
|
0.02
|
|
Acquisition related amortization expense [3]
|
0.12
|
0.10
|
|
Other (income) expense [2]
|
-
|
(0.01)
|
|
Tax benefit on restricted stock
|
-
|
(0.04)
|
|
Total non-GAAP adjustments – net of tax
|
$0.24
|
|
$0.16
|
Non-GAAP: Net earnings per common share – diluted
|
$1.44
|
$1.28
|