8-K

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): August 7, 2023

ePlus inc.

(Exact name of registrant as specified in its charter)

Delaware	001-34167	54-1817218
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

13595 Dulles Technology Drive

Herndon, Virginia 20171-3413

(Address of principal executive offices, including zip code)

(703) 984-8400

(Registrant's telephone number, including area code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

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))

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	PLUS	NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter):

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01. Regulation FD Disclosure

Change in Segment Reporting

ePlus inc., referred to herein as "we" or "our", has conducted our operations and reported the operating results in two business segments, the technology business setment and the financing segment. The unaudited consolidated financial statements include the accounts of ePlus inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The accounts of businesses acquired are included in the unaudited consolidated financial statements from the dates of acquisition. During the quarter ended June 30, 2023, we split our technology segment into new segments—product, professional services, and managed services—to provide our management the ability to better manage and allocate resources among the separate components of our technology business. Our professional services and managed services are a significant component of our growth and long-term strategic initiatives. Subsequently, we manage and report our operating results through four operating segments: product, professional services, managed services, and financing. For additional information, see Note 16, “Segment Reporting”. A summary of the reportable business segments under the new reporting structure follows:

• Product segment consists of the sale of third-party hardware, third-party perpetual and subscription software, and third-party maintenance, software assurance, and other third-party services. The product segment also includes internet-based business-to-business supply chain management solutions for information technology products.

• Professional services segment includes advanced professional services to our customers that are performed under time & materials, fixed fee, or milestone contracts. Professional services include cloud consulting, staff augmentation services, and project management services.

• Managed services segment includes our advanced managed services to our customers that include managing various aspects of our customers environments and are billed in regular intervals over a contract term, usually between three to five years. Managed services include security solutions, storage-as-a-service, cloud hosted services, cloud managed services, and service desk.

For informational purposes and to assist investors in making comparisons of our historical financial information with future financial information that will reflect the change in the presentation of the split of the technology segment into three separate segments, our previously reported selected unaudited historical consolidated financial information for the fiscal years ended March 31, 2023 and March 31, 2022 have been recast to reflect this segment reporting change. Exhibit 99.1 contains the unaudited segment financial information for the reporting change to our technology business and a summary of the segment reporting changes.

This Current Report on Form 8-K (“Form 8-K”) does not restate our previously reported consolidated statements for any period nor does it reflect any subsequent information or events, other than as required to reflect the change in the segments as described above. This Form 8-K, including Exhibit 99.1, should be read in conjunction with our Annual Reports on Form 10-K for the years ended March 31, 2023 and 2022 filed with the Securities and Exchange Commission.

In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Form 8-K and 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 liabilities of that section, and shall not be incorporated by reference into any registration statement 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

(d) The following exhibits are filed as part of this report:

Exhibit No.	Description
99.1	Summary of Segment Reporting Changes
104	Cover Page Interactive Date File (embedded within the Inline XBRL document)

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/ Elaine D. Marion

Elaine D. Marion

Chief Financial Officer

Date: August 7, 2023

EX-99.1

EXHIBIT 99.1

Summary of Segment Reporting Changes

The following tables present our segment operating results for our fiscal years ended March 31, 2022, and 2023 under the new segment structure.  We previously presented our technology business as one segment and the revenues and gross profit for this business are now being presented as three segments: product, professional services and managed services.

	Year ended March 31, 2023
	First Quarter	Second Quarter	Third Quarter	Fourth Quarter	Fiscal Year
Revenue
Product	$     385,676	$     406,317	$     544,316	$     414,493	$   1,750,802
Professional services	37,168	38,050	39,151	37,416	151,785
Managed services	25,941	27,111	28,307	31,299	112,658
Technology business	448,785	471,478	611,774	483,208	2,015,245
Financing segment	9,574	22,228	11,702	8,969	52,473
Total	$     458,359	$     493,706	$     623,476	$     492,177	$   2,067,718
Gross profit
Product	$       83,168	$       94,389	$     104,485	$       98,699	$      380,741
Professional services	15,055	14,697	15,294	16,548	61,594
Managed services	7,428	7,189	8,075	9,463	32,155
Technology business	105,651	116,275	127,854	124,710	474,490
Financing segment	7,872	17,029	10,518	7,615	43,034
Total	$     113,523	$     133,304	$     138,372	$     132,325	$      517,524
	Year ended March 31, 2022
	First Quarter	Second Quarter	Third Quarter	Fourth Quarter	Fiscal Year
Revenue
Product	$     344,766	$     375,444	$     414,448	$     357,753	$   1,492,411
Professional services	33,296	38,088	38,986	36,377	146,747
Managed services	22,296	22,769	23,541	25,272	93,878
Technology business	400,358	436,301	476,975	419,402	1,733,036
Financing segment	16,291	21,716	17,859	32,117	87,983
Total	$     416,649	$     458,017	$     494,834	$     451,519	$   1,821,019
Gross profit
Product	$       73,751	$       81,607	$       79,863	$       81,401	$      316,622
Professional services	15,036	16,676	17,354	14,318	63,384
Managed services	6,646	6,795	7,266	7,440	28,147
Technology business	95,433	105,078	104,483	103,159	408,153
Financing segment	10,079	17,924	12,634	12,192	52,829
Total	$     105,512	$     123,002	$     117,117	$     115,351	$      460,982

XML

Document and Entity Information	Aug. 07, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 07, 2023
Entity File Number	001-34167
Entity Registrant Name	ePlus inc.
Entity Central Index Key	0001022408
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	54-1817218
Entity Address, Address Line One	13595 Dulles Technology Drive
Entity Address, City or Town	Herndon
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	20171-3413
City Area Code	703
Local Phone Number	984-8400
Title of 12(b) Security	Common Stock, $.01 par value
Trading Symbol	PLUS
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false