|
|
|
|
|
(State or other jurisdiction
of incorporation) |
|
(Commission
File Number) |
|
(IRS Employer
Identification No.) |
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Exhibit No.
|
Description
|
99.1
|
Press release dated August 7, 2023, issued by ePlus inc.
|
104 |
Cover Page Interactive Date File (embedded within the Inline XBRL document) |
ePlus inc.
|
||||
By: /s/ Elaine D. Marion
|
||||
Elaine D. Marion
|
||||
Chief Financial Officer
|
First Quarter Fiscal Year 2024
|
|
•
|
Net sales increased 25.3% to $574.2 million from last year’s quarter; technology business net sales increased 26.0% to $565.7 million; professional
services and managed services revenues increased 7.0% to $67.5 million.
|
•
|
Technology business gross billings increased 17.6% to $842.0 million.
|
•
|
Consolidated gross profit increased 25.3% to $142.3 million.
|
•
|
Consolidated gross margin remained at 24.8%.
|
•
|
Net earnings increased 51.5% to $33.8 million.
|
•
|
Adjusted EBITDA increased 40.7% to $53.9 million.
|
•
|
Diluted earnings per share increased 51.2% to $1.27. Non-GAAP diluted earnings per share increased 42.4% to $1.41.
|
o
|
Launched its Threat Detection & Response Guidance Service.
|
o
|
London-based subsidiary, IGXGlobal, achieved Palo Alto Networks Authorized Support Center Certified Partner Status.
|
o
|
Placed in the Top 30 of CRN’s 2023 Solution Provider 500 List.
|
o
|
Named Rubrik 2023 Public Sector Partner of the Year.
|
o
|
Recognized for 30 years of membership in the Equipment Leasing and Financing Association.
|
o
|
Acquired CCI Systems’ Network Solutions Group.
|
Date:
|
August 7, 2023
|
Time:
|
4:30 p.m. ET
|
Audio Webcast (Live & Replay): |
https://events.q4inc.com/attendee/857044059
|
Live Call:
|
(888) 330-2469 (toll-free/domestic)
|
(240) 789-2740 (international)
|
|
Replay:
|
(800) 770- 2030 (toll-free/domestic) or
|
(647) 362-9199 (international)
|
|
Passcode:
|
5403833 (live call and replay)
|
ePlus inc. AND SUBSIDIARIES
|
||||
UNAUDITED CONSOLIDATED BALANCE SHEETS
|
||||
(in thousands, except per share amounts)
|
||||
June 30, 2023
|
March 31, 2023
|
|||
ASSETS
|
||||
Current assets:
|
||||
Cash and cash equivalents
|
$101,574
|
$103,093
|
||
Accounts receivable—trade, net
|
677,988
|
504,122
|
||
Accounts receivable—other, net
|
|
78,637
|
55,508
|
|
Inventories
|
244,331
|
243,286
|
||
Financing receivables—net, current
|
|
81,111
|
89,829
|
|
Deferred costs
|
|
45,408
|
44,191
|
|
Other current assets
|
|
47,084
|
55,101
|
|
Total current assets
|
|
1,276,133
|
1,095,130
|
|
|
|
|||
Financing receivables and operating leases—net
|
120,664
|
84,417
|
||
Deferred tax asset
|
3,682
|
3,682
|
||
Property, equipment and other assets
|
70,794
|
70,447
|
||
Goodwill
|
158,280
|
136,105
|
||
Other intangible assets—net
|
|
51,253
|
25,045
|
|
TOTAL ASSETS
|
$1,680,806
|
$1,414,826
|
||
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||
LIABILITIES
|
||||
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$351,384
|
$220,159
|
|
Accounts payable—floor plan
|
182,859
|
134,615
|
||
Salaries and commissions payable
|
41,144
|
37,336
|
||
Deferred revenue
|
|
118,976
|
114,028
|
|
Recourse notes payable—current
|
58,115
|
5,997
|
||
Non-recourse notes payable—current
|
|
17,742
|
24,819
|
|
Other current liabilities
|
30,566
|
24,372
|
||
Total current liabilities
|
|
800,786
|
561,326
|
|
|
|
|||
Non-recourse notes payable—long term
|
5,005
|
9,522
|
||
Deferred tax liability
|
717
|
715
|
||
Other liabilities
|
|
61,007
|
60,998
|
|
TOTAL LIABILITIES
|
867,515
|
632,561
|
||
|
||||
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
||||
STOCKHOLDERS' EQUITY
|
|
|||
Preferred stock, $0.01 per share par value; 2,000 shares
authorized; none outstanding
|
-
|
|
-
|
|
Common stock, $0.01 per share par value; 50,000 shares
authorized; 26,947
outstanding at June 30, 2023 and
26,905 outstanding at
March 31, 2023
|
274
|
272
|
||
Additional paid-in capital
|
170,904
|
167,303
|
||
Treasury stock, at cost, 408 shares at June 30, 2023 and
261 shares at March 31, 2023
|
(21,451) | (14,080) | ||
Retained earnings
|
661,049
|
627,202
|
||
Accumulated other comprehensive income—foreign currency
translation adjustment
|
|
2,515
|
1,568
|
|
Total Stockholders' Equity
|
813,291
|
782,265
|
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$1,680,806
|
$1,414,826
|
ePlus inc. AND SUBSIDIARIES
|
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands, except per share amounts)
|
Three Months Ended June 30,
|
|||
2023
|
2022
|
||
Net sales
|
|||
Product
|
$506,656
|
$395,250
|
|
Services
|
67,519
|
63,109
|
|
Total
|
574,175
|
458,359
|
|
Cost of sales
|
|||
Product
|
388,904
|
304,210
|
|
Services
|
42,998
|
40,626
|
|
Total
|
431,902
|
344,836
|
|
Gross profit
|
142,273
|
113,523
|
|
Selling, general, and administrative
|
90,298
|
76,767
|
|
Depreciation and amortization
|
4,792
|
3,210
|
|
Interest and financing costs
|
851
|
363
|
|
Operating expenses
|
95,941
|
80,340
|
|
Operating income
|
46,332
|
33,183
|
|
Other income (expense)
|
190
|
(2,153)
|
|
Earnings before taxes
|
46,522
|
31,030
|
|
Provision for income taxes
|
12,675
|
8,691
|
|
Net earnings
|
$33,847
|
$22,339
|
|
Net earnings per common share—basic
|
$1.27
|
$0.84
|
|
Net earnings per common share—diluted
|
$1.27
|
$0.84
|
|
|
|
|
|
Weighted average common shares outstanding—basic
|
26,552
|
26,513
|
|
Weighted average common shares outstanding—diluted
|
26,648
|
26,685
|
Technology Business
|
|||||
Three Months Ended June 30,
|
|||||
2023
|
2022
|
Change
|
|||
(in thousands)
|
|||||
Net sales
|
|||||
Product
|
$498,166
|
$385,676
|
29.2%
|
||
Professional services
|
35,556
|
37,168
|
(4.3%)
|
||
Managed services
|
31,963
|
25,941
|
23.2%
|
||
Total
|
565,685
|
448,785
|
26.0%
|
||
Gross Profit
|
|||||
Product
|
111,391
|
83,168
|
33.9%
|
||
Professional services
|
14,724
|
15,055
|
(2.2%)
|
||
Managed services
|
9,797
|
7,428
|
31.9%
|
||
Total
|
135,912
|
105,651
|
28.6%
|
||
Selling, general, and administrative
|
87,100
|
73,112
|
19.1%
|
||
Depreciation and amortization
|
4,764
|
3,182
|
49.7%
|
||
Interest and financing costs
|
550
|
138
|
298.6%
|
||
Operating expenses
|
92,414
|
76,432
|
20.9%
|
||
Operating income
|
$43,498
|
$29,219
|
48.9%
|
||
Gross billings
|
$841,970
|
$716,263
|
17.6%
|
||
Adjusted EBITDA
|
$50,949
|
$34,254
|
48.7%
|
Technology Business Gross Billings by Type
|
|||||
Three Months Ended June 30,
|
|||||
2023
|
2022
|
Change
|
|||
(in thousands)
|
|||||
Cloud
|
$ 258,924
|
$ 253,337
|
2.2%
|
||
Networking
|
276,645
|
165,626
|
67.0%
|
||
Security
|
147,343
|
145,349
|
1.4%
|
||
Collaboration
|
22,161
|
34,775
|
(36.3%)
|
||
Other
|
69,761
|
49,009
|
42.3%
|
||
Product gross billings
|
774,834
|
648,096
|
19.6%
|
||
Service gross billings
|
67,136
|
68,167
|
(1.5%)
|
||
Total gross billings
|
$ 841,970
|
$ 716,263
|
17.6%
|
Technology Business Net Sales by Type
|
|||||
Three Months Ended June 30,
|
|||||
2023
|
2022
|
Change
|
|||
(in thousands)
|
|||||
Cloud
|
$ 172,044
|
$ 164,733
|
4.4%
|
||
Networking
|
245,188
|
142,641
|
71.9%
|
||
Security
|
45,796
|
47,995
|
(4.6%)
|
||
Collaboration
|
12,956
|
12,980
|
(0.2%)
|
||
Other
|
22,182
|
17,327
|
28.0%
|
||
Total Product
|
498,166
|
385,676
|
29.2%
|
||
Professional Services
|
35,556
|
37,168
|
(4.3%)
|
||
Managed Services
|
31,963
|
25,941
|
23.2%
|
||
Total gross billings
|
$ 565,685
|
$ 448,785
|
26.0%
|
Technology Business Net Sales by Customer End Market
|
|||||
Three Months Ended June 30,
|
|||||
2023
|
2022
|
Change
|
|||
(in thousands)
|
|||||
Telecom, Media, & Entertainment
|
$ 141,335
|
$ 128,277
|
10.2%
|
||
Technology
|
73,403
|
69,862
|
5.1%
|
||
SLED
|
109,405
|
64,602
|
69.4%
|
||
Healthcare
|
86,656
|
68,512
|
26.5%
|
||
Financial Services
|
65,690
|
33,299
|
97.3%
|
||
All others
|
89,196
|
84,233
|
5.9%
|
||
Total
|
$ 565,685
|
$ 448,785
|
26.0%
|
Financing Segment
|
|||||
Three Months Ended June 30,
|
|||||
2023
|
2022
|
Change
|
|||
(in thousands)
|
|||||
Portfolio earnings
|
$3,073
|
$2,673
|
15.0%
|
||
Transactional gains
|
1,279
|
1,835
|
(30.3%)
|
||
Post-contract earnings
|
3,634
|
4,726
|
(23.1%)
|
||
Other
|
504
|
340
|
48.2%
|
||
Net sales
|
8,490
|
9,574
|
(11.3%)
|
||
Gross profit
|
6,361
|
7,872
|
(19.2%)
|
||
Selling, general, and administrative
|
3,198
|
3,655
|
(12.5%)
|
||
Depreciation and amortization
|
28
|
28
|
0.0%
|
||
Interest and financing costs
|
301
|
225
|
33.8%
|
||
Operating expenses
|
3,527
|
3,908
|
(9.7%)
|
||
Operating income
|
$2,834
|
$3,964
|
(28.5%)
|
||
Adjusted EBITDA
|
$2,930
|
$4,050
|
(27.7%)
|
Three Months Ended June 30,
|
|||
|
2023
|
2022
|
|
(in thousands)
|
|||
Consolidated
|
|||
Net earnings
|
$33,847
|
$22,339
|
|
Provision for income taxes
|
12,675
|
8,691
|
|
Depreciation and amortization [1]
|
4,792
|
3,210
|
|
Share based compensation
|
2,205
|
1,773
|
|
Interest and financing costs
|
550
|
138
|
|
Other (income) expense [2]
|
(190)
|
2,153
|
|
Adjusted EBITDA
|
$53,879
|
$38,304
|
|
Three Months Ended June 30,
|
|||
|
2023
|
2022
|
|
(in thousands)
|
|||
Technology Segment
|
|||
Operating income
|
$43,498
|
$29,219
|
|
Depreciation and amortization [1]
|
4,764
|
3,182
|
|
Share based compensation
|
2,137
|
1,715
|
|
Interest and financing costs
|
550
|
138
|
|
Adjusted EBITDA
|
$50,949
|
$34,254
|
|
Financing Segment
|
|||
Operating income
|
$2,834
|
$3,964
|
|
Depreciation and amortization [1]
|
28
|
28
|
|
Share based compensation
|
68
|
58
|
|
Adjusted EBITDA
|
$2,930
|
$4,050
|
|
Three Months Ended June 30,
|
|||
2023
|
2022
|
||
(in thousands)
|
|||
GAAP: Earnings before taxes
|
$46,522
|
$31,030
|
|
Share based compensation
|
2,205
|
1,773
|
|
Acquisition related amortization expense [3]
|
3,469
|
2,183
|
|
Other (income) expense [2]
|
(190)
|
2,153
|
|
Non-GAAP: Earnings before taxes
|
52,006
|
37,139
|
|
GAAP: Provision for income taxes
|
12,675
|
8,691
|
|
Share based compensation
|
607
|
508
|
|
Acquisition related amortization expense [3]
|
952
|
617
|
|
Other (income) expense [2]
|
(52)
|
616
|
|
Tax benefit (expense) on restricted stock
|
137
|
194
|
|
Non-GAAP: Provision for income taxes
|
14,319
|
10,626
|
|
Non-GAAP: Net earnings
|
$37,687
|
$26,513
|
|
Three Months Ended June 30,
|
|||||
2023
|
2022
|
||||
GAAP: Net earnings per common share – diluted
|
$1.27
|
$0.84
|
|||
Share based compensation
|
0.06
|
0.04
|
|||
Acquisition related amortization expense [3]
|
0.09
|
0.06
|
|||
Other (income) expense [2]
|
-
|
0.06
|
|||
Tax benefit (expense) on restricted stock
|
(0.01)
|
(0.01)
|
|||
Total non-GAAP adjustments – net of tax
|
0.14
|
0.15
|
|||
Non-GAAP: Net earnings per common share – diluted |
$1.41 | $0.99 |
[1] Amount consists of depreciation and amortization for assets used internally.
|
[2] Legal settlement, interest income and foreign currency transaction gains and losses.
|
[3] Amount consists of amortization of intangible assets from acquired businesses.
|
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 |
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