|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
(Address of principal executive offices)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
Smaller reporting company
|
Emerging growth company ☐
|
|
Page
|
||
1
|
||
Part I
|
||
Item 1.
|
3
|
|
13
|
||
Item 1A.
|
13
|
|
Item 1B.
|
24
|
|
Item 2.
|
24
|
|
Item 3.
|
24
|
|
Item 4.
|
24
|
|
Part II
|
||
Item 5.
|
25
|
|
Item 6.
|
26
|
|
Item 7.
|
27
|
|
Item 7A.
|
43
|
|
Item 8.
|
44
|
|
Item 9.
|
44
|
|
Item 9A.
|
44
|
|
Item 9B.
|
45
|
|
Part III
|
||
Item 10.
|
45
|
|
Item 11.
|
45
|
|
Item 12.
|
46
|
|
Item 13.
|
46
|
|
Item 14.
|
46
|
|
Part IV
|
||
Item 15.
|
46
|
|
Item 16.
|
48
|
|
49
|
• |
the duration and ongoing impact of the novel coronavirus (“COVID-19”) pandemic, which could materially adversely affect our financial condition and results of operations and has resulted in governmental authorities imposing
numerous unprecedented measures, and court opinions concerning the legality thereof, to contain the virus that has impacted and may further impact our workforce and operations, the operations of our customers, and those of our
respective vendors, suppliers, and partners;
|
• |
national and international political instability fostering uncertainty and volatility in the global economy including exposure to fluctuation in foreign currency rates, interest rates, and inflation, including increases in our
costs and price increases to our customers which may result in adverse changes in our gross profit;
|
• |
significant and rapid inflation may cause price, wage, and interest rate increases, as well as increases in operating costs which may impact the arrangements that have pricing commitments over the term of the agreement;
|
• |
significant adverse changes in, reductions in, or loss of one or more of our larger volume customers or vendors;
|
• |
supply chain issues, including a shortage of IT products, may increase our costs or cause a delay in fulfilling customer orders, or completing professional services, or purchasing IT products or services needed to support our
internal infrastructure or operations, resulting in an adverse impact on our financial results;
|
• |
maintaining and increasing advanced professional services by recruiting and retaining highly skilled, competent personnel, and vendor certifications;
|
• |
our dependence on key personnel to maintain certain customer relationships, and our ability to hire, train, and retain sufficient qualified personnel;
|
• |
our ability to secure our own and our customers’ electronic and other confidential information, while maintaining compliance with evolving data privacy and regulatory laws and regulations;
|
• |
remain secure during a cybersecurity attack, including both disruptions in our or our vendors’ IT systems and data and audio communication networks;
|
• |
reliance on third parties to perform some of our service obligations to our customers, and the reliance on a small number of key vendors in our supply chain with whom we do not have long-term supply agreements, guaranteed price
agreements, or assurance of stock availability;
|
• |
the creditworthiness of our customers and our ability to reserve adequately for credit losses;
|
• |
loss of our credit facility or credit lines with our vendors may restrict our current and future operations;
|
• |
a possible decrease in the capital spending budgets of our customers or a decrease in purchases from us;
|
• |
our ability to raise capital, maintain or increase as needed our lines of credit with vendors or floor planning facility, obtain debt for our financing transactions, or the effect of those changes
on our common stock price;
|
• |
reduction of vendor incentives provided to us;
|
• |
changes in the Information Technology (“IT”) industry and/or rapid changes in product offerings, including the proliferation of the cloud, infrastructure as a service (“IaaS”), software as a service (“SaaS”) and platform as a
service (“PaaS”);
|
• |
our dependency on continued innovations in hardware, software, and services offerings by our vendors and our ability to partner with them;
|
• |
future growth rates in our core businesses;
|
• |
rising interest rates or the loss of key lenders or the constricting of credit markets;
|
• |
the possibility of goodwill impairment charges in the future;
|
• |
adapting to meet changes in markets and competitive developments;
|
• |
increasing the total number of customers using integrated solutions by up-selling within our customer base and gaining new customers;
|
• |
managing a diverse product set of solutions in highly competitive markets with a number of key vendors;
|
• |
increasing the total number of customers who use our managed services and professional services and continuing to enhance our managed services offerings to remain competitive in the marketplace;
|
• |
performing professional and managed services competently;
|
• |
our ability to implement comprehensive plans for the integration of sales forces, cost containment, asset rationalization, systems integration, and other key strategies;
|
• |
exposure to changes in, interpretations of, or enforcement trends in, and customer and vendor actions in anticipation of or response to, legislation and regulatory matters;
|
• |
domestic and international economic regulations uncertainty (e.g., tariffs, sanctions, and trade agreements);
|
• |
our contracts may not be adequate to protect us, and we are subject to audit which we may not pass, and our professional and liability insurance policies coverage may be insufficient to cover a claim;
|
• |
failure to comply with public sector contracts, or applicable laws or regulations;
|
• |
maintaining our proprietary software and updating our technology infrastructure to remain competitive in the marketplace;
|
• |
our ability to realize our investment in leased equipment;
|
• |
our ability to successfully perform due diligence and integrate acquired businesses;
|
• |
our ability to protect our intellectual property rights and successfully defend any challenges to the validity of our patents or allegations that we are infringing upon any third-party patents, and the
costs associated with those actions, and, when appropriate, license required technology.
|
ITEM 1. |
BUSINESS
|
• |
IT sales: Our offerings consist of hardware, perpetual and subscription software, maintenance, software assurance, and internally provided
and outsourced services. We believe that our customers view technology purchases as integrated solutions, rather than discrete product and service categories, and the majority of our sales are derived from integrated solutions
involving our customers’ data center, cloud, network, security, and collaboration infrastructure. We hold various technical and sales-related certifications from leading manufacturers and software publishers, which authorizes us to
market their products and enables us to provide advanced professional and managed services. We actively engage with emerging vendors to offer their technologies to our customers. Our flexible platform and customizable catalogs
facilitate the addition of new vendors’ products with minimal incremental effort.
|
• |
Advanced professional and managed services: We provide a range of advanced professional and managed services to help our customers improve
productivity, profitability, and revenue growth while reducing operating costs. Our solutions and services include the following:
|
• |
Managed services proactively monitors and manages a broad range of technologies on-premises and in the cloud with services such as managed infrastructure, service desk, and Managed Power Protection. These
solutions are built in a flexible subscription model to monitor, manage, and maximize business critical technologies—including cloud, security, data center, mobility, and collaboration based on a an ITIL Framework with SOC 1/2 and
HIPAA accreditation;
|
• |
Professional services focus on cloud infrastructure, unified
communications, collaboration, networking, storage, hyper-converged infrastructure, and virtual desktop infrastructure, supported by security and managed services solutions;
|
• |
Security solutions help safeguard our customers’ business and information assets through the appropriate application of governance, technology and supporting services:
|
• |
Governance, Risk, and Compliance (GRC) services help ensure customers are meeting governance and compliance requirements by leveraging regulatory frameworks, industry best practices, and supporting controls - thereby allowing
customers to effectively identify, assess, and mitigate risk.
|
• |
Technology Introduction and Deployment services help customers rapidly adopt and integrate key security controls and embrace efficiencies across technology types like network, endpoint, data, and cloud.
|
• |
Managed Security Services help customers strengthen their information security profile with industry-leading tools, technology, and expertise - often at a fraction of the cost of in-house security resources. Services include
Security Operations Center (SOC), Vulnerability Management, Managed Detection and Response (MDR), and Incident Response (IR).
|
• |
Cloud Consulting Services is a global team of architects and consultants focused on assessing customer workloads for cloud, assisting with the selection of the appropriate cloud solution, design and build of cloud
platforms, application modernization and migration, automation, and ongoing management and optimization of cloud platforms.
|
• |
Cloud Hosted Services provide cloud-hosted offerings including Cloud
Managed Backup and Cloud Disaster Recovery. These data protection offerings, delivered under SOC 2 Type 2 and HIPAA frameworks, are focused on delivering confidence to our customers in their ability to rapidly recover when incidents
such as ransomware occur.
|
• |
Staff augmentation services provide customers with flexible headcount
options, which may range from service desk to infrastructure to software developer skills. Staff augmentation allows customers to access talent, fill specific technology skill gaps, or provide short-term or long-term IT professional
help, which also includes services, such as Virtual Chief Information Officer (vCIO) and Virtual Chief Information Security Officer (vCISO), used to complement existing personnel and build three-to-five-year IT roadmaps.
|
• |
Service desk provides outsourced functions including but not limited to server and desktop support to
respond to our customers’ business demands while minimizing overhead.
|
• |
Project management services enhance productivity and collaboration management and enable successful implementations and adoption of solutions for our customers.
|
• |
Front-end processing, such as procurement, order aggregation, order automation, vendor performance measurement, ordering, reconciliation, and payment;
|
• |
Lifecycle and asset ownership services, including asset management, change management, and property tax filing; and
|
• |
End-of-life services such as equipment audit, removal, and disposal.
|
|
As of March 31,
|
Change
|
||||||||||
|
2022
|
2021
|
||||||||||
Sales and marketing
|
588
|
589
|
(1
|
)
|
||||||||
Professional services
|
666
|
662
|
4
|
|||||||||
Administration
|
229
|
217
|
12
|
|||||||||
Internal IT
|
88
|
85
|
3
|
|||||||||
Management
|
6
|
7
|
(1
|
)
|
||||||||
|
1,577
|
1,560
|
17
|
Name
|
Age
|
Position
|
||
|
|
|||
Mark P. Marron
|
60
|
Chief Executive Officer, President, and Director
|
||
|
|
|||
Elaine D. Marion
|
54
|
Chief Financial Officer
|
||
|
|
|||
Darren Raiguel
|
51
|
Chief Operating Officer and ePlus Technology, inc. President
|
ITEM 1B. |
UNRESOLVED STAFF COMMENTS
|
ITEM 2. |
PROPERTIES
|
ITEM 3. |
LEGAL PROCEEDINGS
|
ITEM 4. |
MINE SAFETY DISCLOSURES
|
ITEM 5. |
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
Period
|
Total
number of
shares
purchased
(1)
|
Average
price
paid per
share
|
Total number of
shares purchased
as part of publicly
announced plans
or programs
|
Maximum number (or
approximate dollar
value) of shares that
may yet be purchased
under the plans or
programs
|
||||||||||||||||
April 1, 2021 through April 30, 2021
|
-
|
$
|
-
|
-
|
881,798
|
(2
|
)
|
|||||||||||||
May 1, 2021 through May 27, 2021
|
1,998
|
$
|
50.40
|
-
|
881,798
|
(3
|
)
|
|||||||||||||
May 28, 2021 through May 31, 2021
|
-
|
$
|
-
|
-
|
1,000,000
|
(4
|
)
|
|||||||||||||
June 1, 2021 through June 30, 2021
|
88,690
|
$
|
45.21
|
35,258
|
964,742
|
(5
|
)
|
|||||||||||||
July 1, 2021 through July 31, 2021
|
62,798
|
$
|
44.00
|
62,798
|
901,944
|
(6
|
)
|
|||||||||||||
August 1, 2021 through August 31, 2021
|
-
|
$
|
-
|
-
|
901,944
|
(7
|
)
|
|||||||||||||
September 1, 2021 through September 30, 2021
|
-
|
$
|
-
|
-
|
901,944
|
(8
|
)
|
|||||||||||||
October 1, 2021 through October 31, 2021
|
-
|
$
|
-
|
-
|
901,944
|
(9
|
)
|
|||||||||||||
November 1, 2021 through November 30, 2021
|
-
|
$
|
-
|
-
|
901,944
|
(10
|
)
|
|||||||||||||
December 1, 2021 through December 31, 2021
|
49,943
|
$
|
51.90
|
49,943
|
852,001
|
(11
|
)
|
|||||||||||||
January 1, 2022 through January 31, 2022
|
79,991
|
$
|
51.78
|
79,991
|
772,010
|
(12
|
)
|
|||||||||||||
February 1, 2022 through February 28, 2022
|
-
|
$
|
-
|
-
|
772,010
|
(13
|
)
|
|||||||||||||
March 1, 2022 through March 31, 2022
|
-
|
$
|
-
|
-
|
772,010
|
(14
|
)
|
(1) |
All shares acquired were in open-market purchases, except for 55,430 shares, out of which 1,998 were repurchased in May 2021 and 53,432 in June 2021 to satisfy tax withholding obligations that arose due
to the vesting of shares of restricted stock.
|
(2) |
The share purchase authorization in place for the month ended April 30, 2021, had purchase limitations on the number of shares of up to 1,000,000 shares. As of April 30, 2021, the remaining authorized shares to be purchased were
881,798.
|
(3) |
As of May 27, 2021, the authorization under the then-existing share repurchase plan expired.
|
(4) |
On March 18, 2021, the board of directors authorized the company to repurchase up to 1,000,000 shares of our outstanding common stock commencing on May 28, 2021 and continuing to May 27, 2022. As of May 31, 2021, the remaining
authorized shares to be purchased were 1,000,000.
|
(5) |
The share purchase authorization in place for the month ended June 30, 2021, had purchase limitations on the number of shares of up to 1,000,000 shares. As of June 30, 2021, the remaining authorized shares to be purchased were
964,742.
|
(6) |
The share purchase authorization in place for the month ended July 31, 2021, had purchase limitations on the number of shares of up to 1,000,000 shares. As of July 31, 2021, the remaining authorized shares to be purchased were
901,944.
|
(7) |
The share purchase authorization in place for the month ended August 31, 2021, had purchase limitations on the number of shares of up to 1,000,000 shares. As of August 31, 2021, the remaining authorized shares to be purchased were
901,944.
|
(8) |
The share purchase authorization in place for the month ended September 30, 2021, had purchase limitations on the number of shares of up to 1,000,000 shares. As of September 30, 2021, the remaining authorized shares to be purchased
were 901,944.
|
(9) |
The share purchase authorization in place for the month ended October 31, 2021, had purchase limitations on the number of shares of up to 1,000,000 shares. As of October 31, 2021, the remaining authorized shares to be purchased
were 901,944.
|
(10) |
The share purchase authorization in place for the month ended November 30, 2021, had purchase limitations on the number of shares of up to 1,000,000 shares. As of November 30, 2021, the remaining authorized shares to be purchased
were 901,944.
|
(11) |
The share purchase authorization in place for the month ended December 31, 2021, had purchase limitations on the number of shares of up to 1,000,000 shares. As of December 31, 2021, the remaining authorized shares to be purchased
were 852,001.
|
(12) |
The share purchase authorization in place for the month ended January 31, 2022, had purchase limitations on the number of shares of up to 1,000,000 shares. As of January 31, 2022, the remaining authorized shares to be purchased
were 772,010.
|
(13) |
The share purchase authorization in place for the month ended February 28, 2022, had purchase limitations on the number of shares of up to 1,000,000 shares. As of February 28, 2022, the remaining authorized shares to be purchased
were 772,010.
|
(14) |
The share purchase authorization in place for the month ended March 31, 2022, had purchase limitations on the number of shares of up to 1,000,000 shares. As of March 31, 2022, the remaining authorized shares to be purchased were
772,010.
|
ITEM 6. |
[RESERVED]
|
ITEM 7. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
Year Ended March 31,
|
|||||||||||
Consolidated
|
2022
|
2021
|
2020
|
|||||||||
Net sales
|
$
|
1,821,019
|
$
|
1,568,323
|
$
|
1,588,404
|
||||||
|
||||||||||||
Gross profit
|
$
|
460,982
|
$
|
393,554
|
$
|
391,191
|
||||||
Gross margin
|
25.3
|
%
|
25.1
|
%
|
24.6
|
%
|
||||||
Operating income margin
|
8.1
|
%
|
6.8
|
%
|
6.0
|
%
|
||||||
|
||||||||||||
Net earnings
|
$
|
105,600
|
$
|
74,397
|
$
|
69,082
|
||||||
Net earnings margin
|
5.8
|
%
|
4.7
|
%
|
4.3
|
%
|
||||||
Net earnings per common share - diluted
|
$
|
3.93
|
$
|
2.77
|
$
|
2.57
|
||||||
|
||||||||||||
Non-GAAP: Net earnings (1)
|
$
|
117,964
|
$
|
85,567
|
$
|
82,167
|
||||||
Non-GAAP: Net earnings per common share - diluted (1)
|
$
|
4.39
|
$
|
3.19
|
$
|
3.06
|
||||||
|
||||||||||||
Adjusted EBITDA (2)
|
$
|
170,004
|
$
|
128,245
|
$
|
119,359
|
||||||
Adjusted EBITDA margin
|
9.3
|
%
|
8.2
|
%
|
7.5
|
%
|
||||||
|
||||||||||||
Technology Segment
|
||||||||||||
Net sales
|
$
|
1,733,036
|
$
|
1,507,954
|
$
|
1,530,138
|
||||||
Adjusted gross billings (3)
|
$
|
2,620,614
|
$
|
2,263,865
|
$
|
2,227,885
|
||||||
|
||||||||||||
Gross profit
|
$
|
408,153
|
$
|
346,235
|
$
|
340,588
|
||||||
Gross margin
|
23.6
|
%
|
23.0
|
%
|
22.3
|
%
|
||||||
|
||||||||||||
Operating income
|
$
|
109,000
|
$
|
75,665
|
$
|
62,155
|
||||||
Adjusted EBITDA (2)
|
$
|
131,353
|
$
|
97,219
|
$
|
85,840
|
||||||
|
||||||||||||
Financing Segment
|
||||||||||||
Net sales
|
$
|
87,983
|
$
|
60,369
|
$
|
58,266
|
||||||
|
||||||||||||
Gross profit
|
$
|
52,829
|
$
|
47,319
|
$
|
50,603
|
||||||
|
||||||||||||
Operating income
|
$
|
38,316
|
$
|
30,670
|
$
|
33,124
|
||||||
Adjusted EBITDA (2)
|
$
|
38,651
|
$
|
31,026
|
$
|
33,519
|
(1) |
Non-GAAP Net earnings and Non-GAAP Net earnings per common share – diluted is based on net earnings calculated in accordance with GAAP, adjusted to exclude other income (expense), share-based compensation, and acquisition and
integration expenses, and the related tax effects.
|
|
Year Ended March 31,
|
|||||||||||
|
2022
|
2021
|
2020
|
|||||||||
GAAP: Earnings before tax
|
$
|
146,884
|
$
|
106,906
|
$
|
95,959
|
||||||
Share based compensation
|
7,114
|
7,167
|
7,954
|
|||||||||
Acquisition and integration expense
|
-
|
271
|
1,676
|
|||||||||
Acquisition related amortization expense
|
10,072
|
9,116
|
9,217
|
|||||||||
Other (income) expense
|
432
|
(571
|
)
|
(680
|
)
|
|||||||
Non-GAAP: Earnings before provision for income taxes
|
164,502
|
122,889
|
114,126
|
|||||||||
GAAP: Provision for income taxes
|
41,284
|
32,509
|
26,877
|
|||||||||
Share based compensation
|
2,014
|
2,188
|
2,218
|
|||||||||
Acquisition and integration expense
|
-
|
78
|
490
|
|||||||||
Acquisition related amortization expense
|
2,803
|
2,730
|
2,487
|
|||||||||
Other (income) expense
|
120
|
(143
|
)
|
(200
|
)
|
|||||||
Tax benefit (expense) on restricted stock
|
317
|
(40
|
)
|
87
|
||||||||
Non-GAAP: Provision for income taxes
|
46,538
|
37,322
|
31,959
|
|||||||||
Non-GAAP: Net earnings
|
$
|
117,964
|
$
|
85,567
|
$
|
82,167
|
|
Year Ended March 31,
|
|||||||||||
2022
|
2021
|
2020
|
||||||||||
GAAP: Net earnings per common share - diluted
|
$
|
3.93
|
$
|
2.77
|
$
|
2.57
|
||||||
Share based compensation
|
0.20
|
0.19
|
0.22
|
|||||||||
Acquisition and integration expense
|
-
|
0.01
|
0.04
|
|||||||||
Acquisition related amortization expense
|
0.26
|
0.24
|
0.25
|
|||||||||
Other (income) expense
|
0.01
|
(0.02
|
)
|
(0.02
|
)
|
|||||||
Tax benefit (expense) on restricted stock
|
(0.01
|
)
|
-
|
-
|
||||||||
Total non-GAAP adjustments - net of tax
|
0.46
|
0.42
|
0.49
|
|||||||||
|
||||||||||||
Non-GAAP: Net earnings per common share - diluted
|
$
|
4.39
|
$
|
3.19
|
$
|
3.06
|
(2) |
We define Adjusted EBITDA as net earnings calculated in accordance with GAAP, adjusted for the following: interest expense, depreciation and amortization, share-based compensation, acquisition and integration expenses, provision
for income taxes, and other income. Segment Adjusted EBITDA is defined as operating income calculated in accordance with GAAP, adjusted for interest expense, share-based compensation, acquisition and integration expenses, and
depreciation and amortization. We consider the interest on notes payable from our financing segment and depreciation expense presented within cost of sales, which includes depreciation on assets financed as operating leases, to be
operating expenses. As such, they are not included in the amounts added back to net earnings in the Adjusted EBITDA calculation. We provide below a reconciliation of Adjusted EBITDA to net earnings, which is the most directly
comparable financial measure to this Non-GAAP financial measure. Adjusted EBITDA margin is our calculation of Adjusted EBITDA divided by net sales.
|
Year Ended March 31,
|
||||||||||||
Consolidated
|
2022
|
2021
|
2020
|
|||||||||
Net earnings
|
$
|
105,600
|
$
|
74,397
|
$
|
69,082
|
||||||
Provision for income taxes
|
41,284
|
32,509
|
26,877
|
|||||||||
Share based compensation
|
7,114
|
7,167
|
7,954
|
|||||||||
Interest and financing costs
|
928
|
521
|
294
|
|||||||||
Acquisition and integration expense
|
-
|
271
|
1,676
|
|||||||||
Depreciation and amortization
|
14,646
|
13,951
|
14,156
|
|||||||||
Other income (expense)
|
432
|
(571
|
)
|
(680
|
)
|
|||||||
Adjusted EBITDA
|
$
|
170,004
|
$
|
128,245
|
$
|
119,359
|
||||||
Technology Segment
|
||||||||||||
Operating income
|
$
|
109,000
|
$
|
75,665
|
$
|
62,155
|
||||||
Depreciation and amortization
|
14,535
|
13,839
|
14,016
|
|||||||||
Share based compensation
|
6,890
|
6,923
|
7,699
|
|||||||||
Interest and financing costs
|
928
|
521
|
294
|
|||||||||
Acquisition and integration expense
|
-
|
271
|
1,676
|
|||||||||
Adjusted EBITDA
|
$
|
131,353
|
$
|
97,219
|
$
|
85,840
|
||||||
Financing Segment
|
||||||||||||
Operating income
|
$
|
38,316
|
$
|
30,670
|
$
|
33,124
|
||||||
Depreciation and amortization
|
111
|
112
|
140
|
|||||||||
Share based compensation
|
224
|
244
|
255
|
|||||||||
Adjusted EBITDA
|
$
|
38,651
|
$
|
31,026
|
$
|
33,519
|
(3) |
We define Adjusted gross billings as our technology segment net sales
calculated in accordance with US GAAP, adjusted to exclude the costs incurred related to sales of third-party maintenance, software assurance, subscription/SaaS licenses, and services. We have provided below a reconciliation of
Adjusted gross billings to technology segment net sales, which is the most directly comparable financial measure to this Non-GAAP financial measure.
|
|
Year Ended March 31,
|
|||||||||||
|
2022
|
2021
|
2020
|
|||||||||
Technology segment net sales
|
$
|
1,733,036
|
$
|
1,507,954
|
$
|
1,530,138
|
||||||
Costs incurred related to sales of third party maintenance, software assurance and subscription/SaaS licenses, and services
|
887,578
|
755,911
|
697,747
|
|||||||||
Adjusted gross billings
|
$
|
2,620,614
|
$
|
2,263,865
|
$
|
2,227,885
|
• |
Portfolio income: Interest income from financing receivables and rents due under operating leases;
|
• |
Transactional gains: Net gains or losses on the sale of financial assets; and
|
• |
Post-contract earnings: Month-to-month rents; early termination, prepayment, make-whole or buyout fees; and the sale of off-lease (used) equipment.
|
Year Ended March 31,
|
|
|||||||||||||||
2022
|
2021
|
|||||||||||||||
Net sales
|
||||||||||||||||
Product
|
$
|
1,492,411
|
$
|
1,305,789
|
$
|
186,622
|
14.3
|
%
|
||||||||
Services
|
240,625
|
202,165
|
38,460
|
19.0
|
%
|
|||||||||||
Total
|
1,733,036
|
1,507,954
|
225,082
|
14.9
|
%
|
|||||||||||
Cost of sales
|
||||||||||||||||
Product
|
1,175,789
|
1,036,627
|
139,162
|
13.4
|
%
|
|||||||||||
Services
|
149,094
|
125,092
|
24,002
|
19.2
|
%
|
|||||||||||
Total
|
1,324,883
|
1,161,719
|
163,164
|
14.0
|
%
|
|||||||||||
Gross profit
|
408,153
|
346,235
|
61,918
|
17.9
|
%
|
|||||||||||
Selling, general, and administrative
|
283,690
|
256,210
|
27,480
|
10.7
|
%
|
|||||||||||
Depreciation and amortization
|
14,535
|
13,839
|
696
|
5.0
|
%
|
|||||||||||
Interest and financing costs
|
928
|
521
|
407
|
78.1
|
%
|
|||||||||||
Operating expenses
|
299,153
|
270,570
|
28,583
|
10.6
|
%
|
|||||||||||
Operating income
|
$
|
109,000
|
$
|
75,665
|
$
|
33,335
|
44.1
|
%
|
||||||||
Adjusted gross billings
|
$
|
2,620,614
|
$
|
2,263,865
|
$
|
356,749
|
15.8
|
%
|
||||||||
Adjusted EBITDA
|
$
|
131,353
|
$
|
97,219
|
$
|
34,134
|
35.1
|
%
|
|
Year Ended March 31,
|
Change
|
||||||||||
Net sales by customer end market:
|
2022
|
2021
|
||||||||||
Telecom, Media & Entertainment
|
29
|
%
|
25
|
%
|
4
|
%
|
||||||
Healthcare
|
16
|
%
|
13
|
%
|
3
|
%
|
||||||
Technology
|
14
|
%
|
17
|
%
|
(3
|
%)
|
||||||
SLED
|
14
|
%
|
16
|
%
|
(2
|
%)
|
||||||
Financial Services
|
9
|
%
|
13
|
%
|
(4
|
%)
|
||||||
All others
|
18
|
%
|
16
|
%
|
2
|
%
|
||||||
Total
|
100
|
%
|
100
|
%
|
||||||||
|
|
Year Ended March 31,
|
Change
|
||||||||||
Net sales by vendor:
|
2022
|
2021
|
||||||||||
Cisco Systems
|
39
|
%
|
36
|
%
|
3
|
%
|
||||||
Dell EMC
|
9
|
%
|
7
|
%
|
2
|
%
|
||||||
Juniper Networks
|
5
|
%
|
6
|
%
|
(1
|
%)
|
||||||
NetApp
|
5
|
%
|
4
|
%
|
1
|
%
|
||||||
HP Inc. & HPE
|
3
|
%
|
4
|
%
|
(1
|
%)
|
||||||
Arista Networks
|
3
|
%
|
3
|
%
|
0
|
%
|
||||||
All others
|
36
|
%
|
40
|
%
|
(4
|
%)
|
||||||
Total
|
100
|
%
|
100
|
%
|
Year Ended March 31,
|
Change
|
|||||||||||||||
2022
|
2021
|
|||||||||||||||
Net sales
|
$
|
87,983
|
$
|
60,369
|
$
|
27,614
|
45.7
|
%
|
||||||||
Cost of sales
|
35,154
|
13,050
|
22,104
|
169.4
|
%
|
|||||||||||
Gross profit
|
52,829
|
47,319
|
5,510
|
11.6
|
%
|
|||||||||||
Selling, general, and administrative
|
13,427
|
15,053
|
(1,626
|
)
|
(10.8
|
%)
|
||||||||||
Depreciation and amortization
|
111
|
112
|
(1
|
)
|
(0.9
|
%)
|
||||||||||
Interest and financing costs
|
975
|
1,484
|
(509
|
)
|
(34.3
|
%)
|
||||||||||
Operating expenses
|
14,513
|
16,649
|
(2,136
|
)
|
(12.8
|
%)
|
||||||||||
Operating income
|
$
|
38,316
|
$
|
30,670
|
$
|
7,646
|
24.9
|
%
|
||||||||
Adjusted EBITDA
|
$
|
38,651
|
$
|
31,026
|
$
|
7,625
|
24.6
|
%
|
Year Ended March 31,
|
||||||||
2022
|
2021
|
|||||||
Net cash provided by (used in) operating activities
|
$
|
(20,571
|
)
|
$
|
129,507
|
|||
Net cash used in investing activities
|
(1,259
|
)
|
(35,756
|
)
|
||||
Net cash provided by (used in) financing activities
|
47,176
|
(49,802
|
)
|
|||||
Effect of exchange rate changes on cash
|
470
|
(618
|
)
|
|||||
Net increase in cash and cash equivalents
|
$
|
25,816
|
$
|
43,331
|
Year Ended March 31,
|
||||||||
2022
|
2021
|
|||||||
Technology segment
|
$
|
(20,243
|
)
|
$
|
153,332
|
|||
Financing segment
|
(328
|
)
|
(23,825
|
)
|
||||
Net cash provided by (used in) operating activities
|
$
|
(20,571
|
)
|
$
|
129,507
|
As of March 31,
|
||||||||
2022
|
2021
|
|||||||
(DSO) Days sales outstanding (1)
|
69
|
69
|
||||||
(DIO) Days inventory outstanding (2)
|
25
|
15
|
||||||
(DPO) Days payable outstanding (3)
|
(46
|
)
|
(47
|
)
|
||||
Cash conversion cycle
|
48
|
37
|
(1) |
Represents the rolling three-month average of the balance of trade accounts receivable-trade, net for our Technology segment at the end of the period divided by Adjusted gross billings for the same three-month period.
|
(2) |
Represents the rolling three-month average of the balance of inventory, net for our Technology segment at the end of the period divided by cost of Adjusted gross billings for the same three-month period.
|
(3) |
Represents the rolling three-month average of the combined balance of accounts payable-trade and accounts payable-floor plan for our Technology segment at the end of the period divided by cost of Adjusted gross billings, product,
and services for the same three-month period.
|
ITEM 7A. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 8. |
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
ITEM 9. |
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A. |
CONTROLS AND PROCEDURES
|
ITEM 9B. |
OTHER INFORMATION
|
ITEM 10. |
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
ITEM 11. |
EXECUTIVE COMPENSATION
|
ITEM 12. |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
ITEM 13. |
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
ITEM 14. |
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
ITEM 15. |
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
Exhibit No.
|
Exhibit Description
|
ePlus inc. Amended and Restated Certificate of
Incorporation, as last amended November 9, 2021 (Incorporated herein by reference to Exhibit 3.1 to our Quarterly Report on Form 10-Q for the period ended December 31, 2021).
|
|
Amended and Restated Bylaws of ePlus inc., as of March 2, 2022.
|
|
Specimen Certificate of Common Stock (Incorporated herein by reference to Exhibit 4.1 to our Registration Statement on Form S-1 (File No. 333-11737) originally filed on September 11, 1996).
|
|
Description of ePlus inc.’s securities registered under Section 12 of the Securities Exchange Act of 1934.
|
|
Form of Indemnification Agreement entered into by and between ePlus and its directors and officers (Incorporated herein by reference to Exhibit 10.1 to our
Current Report on Form 8-K filed on August 23, 2016).
|
|
Amended and Restated Employment Agreement effective September 6, 2017, by and between ePlus inc. and Mark P. Marron (Incorporated herein by reference to Exhibit
10.1 to our Quarterly Report on Form 10-Q for the period ended December 31, 2017).
|
|
Amendment #1, effective July 16, 2018, to Amended and Restated Employment Agreement effective September 6, 2017, by and between ePlus inc. and Mark P. Marron
(Incorporated herein by reference to Exhibit 10.2 to our Current Report on Form 8-K filed on July 18, 2018).
|
|
Amendment #2, effective November 14, 2019, to Amended and Restated Employment Agreement effective September 6, 2017, by and between ePlus inc. and Mark P.
Marron (Incorporated herein by reference to Exhibit 10.2 to our Quarterly Report on Form 10-Q for the period ended December 31, 2019).
|
Amended and Restated Employment Agreement effective September 6, 2017, by and between ePlus inc. and Elaine D. Marion (Incorporated herein by reference to
Exhibit 10.3 to our Quarterly Report on Form 10-Q for the period ended December 31, 2017).
|
|
Amendment #1, effective November 14, 2019, to Amended and Restated Employment Agreement, effective September 6, 2017, by and between ePlus inc. and Elaine D.
Marion (Incorporated herein by reference to Exhibit 10.1 to our Quarterly Report on Form 10-Q for the period ended December 31, 2019).
|
|
Employment Agreement, effective May 7, 2018, by and between ePlus inc. and Darren S. Raiguel. (Incorporated herein by reference to Exhibit 10.1 to our Current
Report on Form 8-K filed on May 9, 2018).
|
|
Amendment No. 1, effective November 14, 2019, to Amended and Restated Employment Agreement, effective May 7, 2018, by and between ePlus inc. and Darren S
Raiguel. (Incorporated herein by reference to Exhibit 10.3 to our Current Report on Form 10-Q filed on February 6, 2020).
|
|
ePlus inc. 2017 Non-Employee
Director Long-Term Incentive Plan (updated to reflect the stock split effected December 13, 2021) as amended (Incorporated herein by reference to Exhibit 10.6 to our Current
Report on Form 10-Q for the period ended December 31, 2021).
|
|
ePlus inc. 2012 Employee Long-term Incentive Plan
(updated to reflect stock split effected March 31, 2017) (Incorporated herein by reference to Exhibit 10.8 to our Annual Report on Form 10-K for the fiscal year ended March 31, 2017).
|
|
ePlus inc. Cash Incentive Plan, effective April 1, 2018, (Incorporated herein by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on July 18, 2018).
|
|
ePlus 2021 Employee Long-Term Incentive Plan (updated to reflect the
stock split effected December 13, 2021) as amended (Incorporated herein by reference to Exhibit 10.1 to our Current Report on Form 10-Q for the period ended December 31, 2021).
|
|
First Amended and Restated Credit Agreement, dated as of October 13, 2021, by and among ePlus Technology, inc., ePlus Technology Services, inc.,
SLAIT Consulting, LLC, certain of ePlus inc. subsidiaries as guarantors, Wells Fargo Commercial Distribution Finance, LLC as administrative agent and the Lenders party thereto (Incorporated
herein by reference to Exhibit 10.1 to our Current Report in Form 8-K filed on October 19, 2021).
|
|
Guaranty and Security Agreement, dated as of October 13, 2021, by and among ePlus Technology, inc., ePlus Technology Services, inc., SLAIT
Consulting, LLC, certain future subsidiaries of ePlus inc., as guarantors, Wells Fargo Commercial Distribution Finance, LLC as administrative agent for the benefit of Secured Parties
(Incorporated herein by reference to Exhibit 10.2 to our Current Report on Form 8-K filed on October 19, 2021).
|
|
First Amended and Restated Collateralized Guaranty, dated as of October 13, 2021, by and among ePlus Group, inc. and Wells Fargo Commercial Distribution Finance, LLC as agent for the
benefit of Secured Parties (Incorporated herein by reference to Exhibit 10.3 to our Current Report on Form 8-K filed on October 19, 2021).
|
|
First Amended and Restated Limited Guaranty, dated as of October 13, 2021, by and between ePlus inc. and Wells Fargo Commercial Distribution Finance, LLC as
agent for the benefit of Secured Parties (Incorporated herein by reference to Exhibit 10.4 to our Current Report on Form 8-K filed on October 19, 2021).
|
|
Subsidiaries of ePlus inc.
|
|
Consent of Independent Registered Public Accounting Firm.
|
|
Certification of the Chief Executive Officer of ePlus inc. pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a).
|
Certification of the Chief Financial Officer of ePlus inc. pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a).
|
|
Certification of the Chief Executive Officer and Chief Financial Officer of ePlus inc. pursuant to 18 U.S.C. § 1350.
|
|
101.INS
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
104
|
Cover Page Interactive Data File (embedded within the Exhibit 101 Inline XBRL document)
|
ITEM 16. |
FORM 10-K SUMMARY
|
ePlus inc.
|
|
/s/ MARK P. MARRON
|
|
By: Mark P. Marron
|
|
Chief Executive Officer and President
|
|
Date: May 25, 2022
|
/s/ MARK P. MARRON
|
|
By: Mark P. Marron
|
|
Chief Executive Officer, President, and Director
(Principal Executive Officer)
|
|
Date: May 25, 2022
|
|
/s/ ELAINE D. MARION
|
|
By: Elaine D. Marion, Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|
|
Date: May 25, 2022
|
|
/s/ BRUCE M. BOWEN
|
|
By: Bruce M. Bowen, Director
|
|
Date: May 25, 2022
|
|
/s/ JOHN E. CALLIES
|
|
By: John E. Callies, Director
|
|
Date: May 25, 2022
|
|
/s/ C. THOMAS FAULDERS, III
|
|
By: C. Thomas Faulders, III, Chairman
|
|
Date: May 25, 2022
|
|
/s/ ERIC D. HOVDE
|
|
By: Eric D. Hovde, Director
|
|
Date: May 25, 2022
|
|
/s/ IRA A. HUNT
|
|
By: Ira A. Hunt, Director
|
|
Date: May 25, 2022
|
|
/s/ MAUREEN F. MORRISON
|
|
By: Maureen F. Morrison
|
|
Date: May 25, 2022
|
|
/s/ BEN XIANG
|
|
By: Ben Xiang, Director
|
|
Date: May 25, 2022
|
PAGE
|
|
F-2
|
|
F-6
|
|
F-7
|
|
F-8
|
|
F-9
|
|
F-11
|
|
F-12
|
• |
We tested the design and operating effectiveness of management’s controls over the determination of gross or net recognition of third-party software and support sales.
|
• |
For a selection of contracts, we performed the following procedures:
|
– |
Inspected the customer invoice and purchase order to determine whether the sale represented a valid transaction with a customer.
|
– |
Compared the cost per the Company’s records to the cost per the vendor invoice.
|
– |
Evaluated the sale to determine whether it constituted a single or multiple performance obligation(s) through inspection of the customer invoice, purchase order, and information on
vendor websites accessed through third-party search engines.
|
– |
Evaluated the sale to determine whether there was accompanying third-party support related to the software, and whether the support was separately identifiable or essential to the
functionality of the software through inspection of customer invoices, purchase orders, information on vendor websites accessed through third-party search engines and inquiries with management, as necessary.
|
• |
We tested the design and operating effectiveness of management’s controls over the transfer of financial assets, including management’s controls over the evaluation of the terms of
loan documents and accompanying investor data, assignment agreements, and the calculation of the gain or loss.
|
• |
For a selection of transactions, we evaluated the Company’s determination of sale or secured borrowing, by evaluating, among other factors, if the transferred assets have been
isolated from the Company. Specifically, we performed the following procedures:
|
– |
Obtained the executed transfer agreement and evaluated whether the Company:
|
■ |
Assigned its rights, titles, interests, estates, claims, and demands to the third-party assignee
|
■ |
Retained any rights with respect to the payments assigned to the third-party assignee or had been appropriately isolated from the assets. We evaluated opinions from outside legal
counsel, when applicable.
|
– |
Obtained and inspected the cash proceeds support from the transfer and compared the cash received to the selling price.
|
– |
Tested the mathematical accuracy of management’s calculation of the gain or loss based on the cash proceeds and the receivable balance as of date of sale.
|
March 31, 2022
|
March 31, 2021
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Accounts receivable—trade, net
|
|
|
||||||
Accounts receivable—other, net
|
|
|
||||||
Inventories
|
|
|
||||||
Financing receivables—net, current
|
|
|
||||||
Deferred costs
|
|
|
||||||
Other current assets
|
|
|
||||||
Total current assets
|
|
|
||||||
Financing receivables and operating leases—net
|
|
|
||||||
Deferred tax asset—net
|
|
|
||||||
Property, equipment and other assets
|
|
|
||||||
Goodwill
|
|
|
||||||
Other intangible assets—net
|
|
|
||||||
TOTAL ASSETS
|
$
|
|
$
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
LIABILITIES
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
|
$
|
|
||||
Accounts payable—floor plan
|
|
|
||||||
Salaries and commissions payable
|
|
|
||||||
Deferred revenue
|
|
|
||||||
Recourse notes payable—current
|
|
|
||||||
Non-recourse notes payable—current
|
|
|
||||||
Other current liabilities
|
|
|
||||||
Total current liabilities
|
|
|
||||||
Recourse notes payable - long-term
|
|
|
||||||
Non-recourse notes payable - long-term
|
|
|
||||||
Other liabilities
|
|
|
||||||
TOTAL LIABILITIES
|
|
|
||||||
|
|
|||||||
STOCKHOLDERS’ EQUITY
|
||||||||
Preferred stock, $
|
|
|
||||||
Common stock, $
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Treasury stock, at cost,
|
(
|
)
|
(
|
)
|
||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive income—foreign currency translation adjustment
|
(
|
)
|
|
|||||
Total Stockholders’ Equity
|
|
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
|
$
|
|
Year Ended March 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
Net sales
|
||||||||||||
Product
|
$
|
|
$
|
|
$
|
|
||||||
Services
|
|
|
|
|||||||||
Total
|
|
|
|
|||||||||
Cost of sales
|
||||||||||||
Product
|
|
|
|
|||||||||
Services
|
|
|
|
|||||||||
Total
|
|
|
|
|||||||||
Gross profit
|
|
|
|
|||||||||
Selling, general, and administrative
|
|
|
|
|||||||||
Depreciation and amortization
|
|
|
|
|||||||||
Interest and financing costs
|
|
|
|
|||||||||
Operating expenses
|
|
|
|
|||||||||
Operating income
|
|
|
|
|||||||||
Other income (expense)
|
(
|
)
|
|
|
||||||||
Earnings before tax
|
|
|
|
|||||||||
Provision for income taxes
|
|
|
|
|||||||||
Net earnings
|
$
|
|
$
|
|
$
|
|
||||||
Net earnings per common share—basic
|
$
|
|
$
|
|
$
|
|
||||||
Net earnings per common share—diluted
|
$
|
|
$
|
|
$
|
|
||||||
Weighted average common shares outstanding—basic
|
|
|
|
|||||||||
Weighted average common shares outstanding—diluted
|
|
|
|
Year Ended March 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
NET EARNINGS
|
$
|
|
$
|
|
$
|
|
||||||
OTHER COMPREHENSIVE INCOME, NET OF TAX:
|
||||||||||||
Foreign currency translation adjustments
|
(
|
)
|
|
(
|
)
|
|||||||
Other comprehensive income (loss)
|
(
|
)
|
|
(
|
)
|
|||||||
TOTAL COMPREHENSIVE INCOME
|
$
|
|
$
|
|
$
|
|
Year Ended March 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
Cash flows from operating activities:
|
||||||||||||
Net earnings
|
$
|
|
$
|
|
$
|
|
||||||
Adjustments to reconcile
net earnings to net cash provided by (used in) operating activities:
|
||||||||||||
Depreciation and amortization
|
|
|
|
|||||||||
Provision for credit losses
|
(
|
)
|
|
|
||||||||
Share-based compensation expense
|
|
|
|
|||||||||
Deferred taxes
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Payments from lessees directly to lenders—operating leases
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Gain on disposal of property, equipment, and operaing lease equipment
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Changes in:
|
||||||||||||
Accounts receivable
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Inventories-net
|
(
|
)
|
(
|
)
|
|
|||||||
Financing receivables—net
|
|
(
|
)
|
(
|
)
|
|||||||
Deferred costs and other assets
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Accounts payable-trade
|
(
|
)
|
|
(
|
)
|
|||||||
Salaries and commissions payable, deferred revenue, and other liabilities
|
|
|
|
|||||||||
Net cash provided by (used in) operating activities
|
(
|
)
|
|
(
|
)
|
|||||||
Cash flows from investing activities:
|
||||||||||||
Proceeds from sale of property, equipment, and operating lease equipment
|
|
|
|
|||||||||
Purchases of property, equipment and operating lease equipment
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Cash used in acquisitions, net of cash acquired
|
|
(
|
)
|
(
|
)
|
|||||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Cash flows from financing activities:
|
||||||||||||
Borrowings of non-recourse and recourse notes payable
|
|
|
|
|||||||||
Repayments of non-recourse and recourse notes payable
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Repurchase of common stock
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Repayments of financing of acquisitions
|
|
(
|
)
|
(
|
)
|
|||||||
Net borrowings (repayments) on floor plan facility
|
|
(
|
)
|
|
||||||||
Net cash provided by (used in) financing activities
|
|
(
|
)
|
|
||||||||
Effect of exchange rate changes on cash
|
|
(
|
)
|
|
||||||||
Net increase in cash and cash equivalents
|
|
|
|
|||||||||
Cash and cash equivalents, beginning of period
|
|
|
|
|||||||||
Cash and cash equivalents, end of period
|
$
|
|
$
|
|
$
|
|
Year Ended March 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid for interest
|
$
|
|
$
|
|
$
|
|
||||||
Cash paid for income taxes
|
$
|
|
$
|
|
$
|
|
||||||
Cash paid for amounts included in the measurement of lease liabilities
|
$
|
|
$
|
|
$
|
|
||||||
Schedule of non-cash investing and financing activities:
|
||||||||||||
Proceeds from sale of property, equipment, and leased equipment
|
$
|
|
$
|
|
$
|
|
||||||
Purchases of property, equipment, and operating lease equipment
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||
Consideration for acquisitions
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||
Borrowing of non-recourse and recourse notes payable
|
$
|
|
$
|
|
$
|
|
||||||
Repayments of non-recourse and recourse notes payable
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||
Vesting of share-based compensation
|
$
|
|
$
|
|
$
|
|
||||||
New operating lease assets obtained in exchange for lease obligations
|
$
|
|
$
|
|
$
|
|
Common Stock
|
Additional
Paid-In
|
Treasury
|
Retained
|
Accumulated
Other
Comprehensive
|
||||||||||||||||||||||||
Shares
|
Par Value
|
Capital
|
Stock
|
Earnings
|
Income
|
Total
|
||||||||||||||||||||||
Balance, April 1, 2019
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Issuance of restricted stock awards
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Share-based compensation
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Repurchase of common stock
|
(
|
)
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||||
Net earnings
|
-
|
|
|
|
|
|
|
|||||||||||||||||||||
Foreign currency translation adjustment
|
-
|
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Balance, March 31, 2020
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Issuance of restricted stock awards
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Share-based compensation
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Repurchase of common stock
|
(
|
)
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||||
Net earnings
|
-
|
|
|
|
|
|
|
|||||||||||||||||||||
Foreign currency translation adjustment
|
-
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance, March 31, 2021
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Issuance of restricted stock awards
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Share-based compensation
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Repurchase of common stock
|
(
|
)
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||||
Stock split effected in the form of a dividend
|
|
|
|
(
|
)
|
|
|
|||||||||||||||||||||
Retirement of treasury stock
|
(
|
)
|
|
|
(
|
)
|
|
|
||||||||||||||||||||
Net earnings
|
-
|
|
|
|
|
|
|
|||||||||||||||||||||
Foreign currency translation adjustment
|
-
|
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Balance, March 31, 2022
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
● |
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
|
● |
Level 2 – Inputs other than quoted prices included within Level 1, such as quoted prices for similar assets or liabilities in active markets, that are
observable for the asset or liability, either directly or indirectly.
|
● |
Level 3 – Unobservable inputs for the asset or liability. The fair values are determined based on model-based techniques such as discounted cash flow models
using inputs that we could not corroborate with market data.
|
March 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
Current (included in deferred revenue)
|
$
|
|
$
|
|
$
|
|
||||||
Non-current (included in other liabilities)
|
$
|
|
$
|
|
$
|
|
|
$
|
|
||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
Total remaining performance obligations
|
$
|
|
Year Ended March 31,
|
||||||||
2022
|
2021
|
|||||||
Net sales
|
$
|
|
$
|
|
||||
Cost of sales
|
|
|
||||||
Gross profit
|
$
|
|
$
|
|
Year Ended March 31,
|
||||||||
2022
|
2021
|
|||||||
Interest income on sales-type leases
|
$
|
|
$
|
|
||||
Lease income on operating leases
|
$
|
|
$
|
|
March 31, 2022
|
Notes
Receivable
|
Lease
Receivables
|
Financing
Receivables
|
|||||||||
Gross receivables
|
$
|
|
$
|
|
$
|
|
||||||
Unguaranteed residual value (1)
|
|
|
|
|||||||||
Unearned income
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Allowance for credit losses (2)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Total, net
|
$
|
|
$
|
|
$
|
|
||||||
Reported as:
|
||||||||||||
Current
|
$
|
|
$
|
|
$
|
|
||||||
Long-term
|
|
|
|
|||||||||
Total, net
|
$
|
|
$
|
|
$
|
|
(1) |
Includes unguaranteed residual values of $
|
(2) |
Refer to Note 6, “Allowance for Credit Losses” for details.
|
March 31, 2021
|
Notes
Receivable
|
Lease
Receivables
|
Financing
Receivables
|
|||||||||
Gross receivables
|
$
|
|
$
|
|
$
|
|
||||||
Unguaranteed residual value (1)
|
|
|
|
|||||||||
Initial direct costs, net of amortization
|
|
|
|
|||||||||
Unearned income
|
|
(
|
)
|
(
|
)
|
|||||||
Allowance for credit losses (2)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Total, net
|
$
|
|
$
|
|
$
|
|
||||||
Reported as:
|
||||||||||||
Current
|
$
|
|
$
|
|
$
|
|
||||||
Long-term
|
|
|
|
|||||||||
Total, net
|
$
|
|
$
|
|
$
|
|
(1) |
Includes unguaranteed residual values of $
|
(2) |
Refer to Note 6, “Allowance for Credit Losses” for details.
|
Year ending March 31, 2023
|
$
|
|
||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
and thereafter
|
|
|||
Total
|
$
|
|
March 31, 2022
|
March 31, 2021
|
|||||||
Cost of equipment under operating leases
|
$
|
|
$
|
|
||||
Accumulated depreciation
|
(
|
)
|
(
|
)
|
||||
Investment in operating lease equipment—net (1)
|
$
|
|
$
|
|
(1) |
Amounts include estimated unguaranteed
residual values of $
|
Year ending March 31, 2023
|
$
|
|
||
2024
|
|
|||
2025
|
|
|||
Total
|
$
|
|
Year Ended March 31,
|
||||||||
Lease term and Discount Rate
|
2022
|
2021
|
||||||
Weighted average remaining lease term (months)
|
|
|
||||||
Weighted average discount rate
|
|
%
|
|
%
|
Year ending March 31, 2023
|
$
|
|
||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027 and thereafter
|
|
|||
Total lease payments
|
|
|||
Less: interest
|
(
|
)
|
||
Present value of lease liabilities
|
$
|
|
Year ended March 31, 2022
|
Year ended March 31, 2021
|
|||||||||||||||||||||||
Goodwill
|
Accumulated
Impairment
Loss
|
Net
Carrying
Amount
|
Goodwill
|
Accumulated
Impairment
Loss
|
Net
Carrying
Amount
|
|||||||||||||||||||
Beginning balance
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Acquisitions
|
|
-
|
|
|
-
|
|
||||||||||||||||||
Foreign currency translations
|
(
|
)
|
-
|
(
|
)
|
|
-
|
|
||||||||||||||||
Ending balance
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
March 31, 2022
|
March 31, 2021
|
|||||||||||||||||||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net
Carrying
Amount
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net
Carrying
Amount
|
|||||||||||||||||||
Customer relationships & other intangibles
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Capitalized software development
|
|
(
|
)
|
|
|
(
|
)
|
|
||||||||||||||||
Total
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Year ending March 31, 2023
|
$
|
|
||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
2028 and thereafter
|
|
|||
Total
|
$
|
|
Accounts
Receivable
|
Notes
Receivable
|
Lease
Receivables
|
Total
|
|||||||||||||
Balance as of March 31, 2019
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Provision for credit losses
|
|
|
|
|
||||||||||||
Write-offs and other
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Balance as of March 31, 2020
|
|
|
|
|
||||||||||||
Provision for credit losses
|
|
|
|
|
||||||||||||
Write-offs and other
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Balance as of March 31, 2021
|
|
|
|
|
||||||||||||
Provision for credit losses
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||
Write-offs and other
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Balance as of March 31, 2022
|
$
|
|
$
|
|
$
|
|
$
|
|
• |
High CQR: This rating includes accounts with excellent to good business credit, asset quality and capacity to meet financial obligations. Loss rates in this
category are generally less than
|
• |
Average CQR: This rating includes accounts with average credit risk that are more susceptible to loss in the event of adverse business or economic conditions.
Loss rates in this category are generally in the range of
|
• |
Low CQR: This rating includes accounts that have marginal credit risk such that the customer’s ability to make repayment is impaired or may likely become
impaired. The loss rates in this category in the normal course are generally in the range of
|
Amortized cost basis by origination year ending March 31,
|
||||||||||||||||||||||||||||||||||||
2022
|
2021
|
2020
|
2019
|
2018
|
2017
|
Total
|
Transfers
(2)
|
Net
credit
exposure
|
||||||||||||||||||||||||||||
Notes receivable:
|
||||||||||||||||||||||||||||||||||||
High CQR
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||||||
Average CQR
|
|
|
|
|
|
|
|
(
|
)
|
|
||||||||||||||||||||||||||
Low CQR
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||||||
Lease receivables:
|
||||||||||||||||||||||||||||||||||||
High CQR
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||||||
Average CQR
|
|
|
|
|
|
|
|
(
|
)
|
|
||||||||||||||||||||||||||
Low CQR
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||||||
Total amortized cost (1)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
(1) |
Unguaranteed residual values of $
|
(2) |
Transfers consist of receivables that have
been transferred to third-party financial institutions on a non-recourse basis and receivables that are in the process of being transferred to third-party financial institutions.
|
Amortized cost basis by origination year ending March 31,
|
||||||||||||||||||||||||||||||||
2021
|
2020
|
2019
|
2018
|
2017
|
Total
|
Transfers
(2)
|
Net
credit
exposure
|
|||||||||||||||||||||||||
Notes receivable:
|
||||||||||||||||||||||||||||||||
High CQR
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||||
Average CQR
|
|
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||||||||
Low CQR
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||||
Lease receivables:
|
||||||||||||||||||||||||||||||||
High CQR
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||||
Average CQR
|
|
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||||||||
Low CQR
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||||
Total amortized cost (1)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
(1) |
Unguaranteed residual values of $
|
(2) |
Transfers consist of receivables that have
been transferred to third-party financial institutions on a non-recourse basis and receivables that are in the process of being transferred to third-party financial institutions.
|
31-60
Days Past
Due
|
61-90
Days Past
Due
|
> 90
Days Past
Due
|
Total
Past Due
|
Current
|
Total
Billed
|
Unbilled
|
Amortized
Cost
|
|||||||||||||||||||||||||
Notes receivable
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Lease receivables
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
31-60
Days Past
Due
|
61-90
Days Past
Due
|
> 90
Days Past
Due
|
Total
Past Due
|
Current
|
Total
Billed
|
Unbilled
|
Amortized
Cost
|
|||||||||||||||||||||||||
Notes receivable
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Lease receivables
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
March 31,
2022
|
March 31,
2021
|
|||||||
Furniture, fixtures and equipment
|
$
|
|
$
|
|
||||
Leasehold improvements
|
|
|
||||||
Capitalized software
|
|
|
||||||
Vehicles
|
|
|
||||||
Total assets
|
|
|
||||||
Accumulated depreciation and amortization
|
(
|
)
|
(
|
)
|
||||
Property and equipment - net
|
$
|
|
$
|
|
Recourse notes
payable
|
Non-recourse
notes payable
|
|||||||
Year ended March 31, 2023
|
$
|
|
$
|
|
||||
2024
|
|
|
||||||
2025
|
|
|
||||||
2026
|
|
|
||||||
Total maturities
|
$
|
|
$
|
|
2022
|
2021
|
2020
|
||||||||||
Net earnings attributable to common shareholders - basic and diluted
|
$
|
|
$
|
|
$
|
|
||||||
Basic and diluted common shares outstanding:
|
||||||||||||
Weighted average common shares outstanding — basic
|
|
|
|
|||||||||
Effect of dilutive shares
|
|
|
|
|||||||||
Weighted average shares common outstanding — diluted
|
|
|
|
|||||||||
Earnings per common share - basic
|
$
|
|
$
|
|
$
|
|
||||||
Earnings per common share - diluted
|
$
|
|
$
|
|
$
|
|
Number of
Shares
|
Weighted Average
Grant-date Fair Value
|
|||||||
Nonvested April 1, 2021
|
|
$
|
|
|||||
Granted
|
|
$
|
|
|||||
Vested
|
(
|
)
|
$
|
|
||||
Forfeited
|
(
|
)
|
$
|
|
||||
Nonvested March 31, 2022
|
|
$
|
|
Year Ended March 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
Income tax expense computed at the U.S. statutory federal rate
|
$
|
|
$
|
|
$
|
|
||||||
State income tax expense—net of federal benefit
|
|
|
|
|||||||||
Non-deductible executive compensation
|
|
|
|
|||||||||
Other
|
(
|
)
|
|
|
||||||||
Provision for income taxes
|
$
|
|
$
|
|
$
|
|
||||||
Effective income tax rate
|
|
%
|
|
%
|
|
%
|
Year Ended March 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
Current:
|
||||||||||||
Federal
|
$
|
|
$
|
|
$
|
|
||||||
State
|
|
|
|
|||||||||
Foreign
|
|
|
|
|||||||||
Total current expense
|
|
|
|
|||||||||
Deferred:
|
||||||||||||
Federal
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
State
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Foreign
|
|
(
|
)
|
|
||||||||
Total deferred benefit
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Provision for income taxes
|
$
|
|
$
|
|
$
|
|
March 31,
|
||||||||
2022
|
2021
|
|||||||
Deferred tax assets:
|
||||||||
Accrued vacation
|
$
|
|
$
|
|
||||
Deferred revenue
|
|
|
||||||
Allowance for credit losses
|
|
|
||||||
Restricted stock
|
|
|
||||||
Other deferred tax assets
|
|
|
||||||
Accrued bonus
|
|
|
||||||
Lease liabilities
|
|
|
||||||
Other credits and carryforwards
|
|
|
||||||
Gross deferred tax assets
|
|
|
||||||
Less: valuation allowance
|
(
|
)
|
|
|||||
Net deferred tax assets
|
|
|
||||||
Deferred tax liabilities:
|
||||||||
Property and equipment
|
(
|
)
|
(
|
)
|
||||
Operating leases
|
(
|
)
|
(
|
)
|
||||
Prepaid expenses
|
(
|
)
|
(
|
)
|
||||
Right-of-use assets
|
(
|
)
|
(
|
)
|
||||
Tax deductible goodwill
|
(
|
)
|
(
|
)
|
||||
Total deferred tax liabilities
|
(
|
)
|
(
|
)
|
||||
Net deferred tax asset
|
$
|
|
$
|
|
Fair Value Measurement Using
|
||||||||||||||||
Recorded
Amount
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant
Unobservable
Inputs (Level 3)
|
|||||||||||||
March 31, 2022
|
||||||||||||||||
Assets:
|
||||||||||||||||
Money market funds
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
March 31, 2021
|
||||||||||||||||
Assets:
|
||||||||||||||||
Money market funds
|
$
|
|
$
|
|
$
|
|
$
|
|
Acquisition Date
Amount
|
||||
Accounts receivable
|
$
|
|
||
Other assets
|
|
|||
Identified intangible assets
|
|
|||
Accounts payable and other current liabilities
|
(
|
)
|
||
Performance obligations
|
(
|
)
|
||
Total identifiable net assets
|
|
|||
Goodwill
|
|
|||
Total purchase consideration
|
$
|
|
Year Ended March 31,
|
||||||||||||||||||||||||||||||||||||
2022
|
2021
|
2020
|
||||||||||||||||||||||||||||||||||
Technology
|
Financing
|
Total
|
Technology
|
Financing
|
Total
|
Technology
|
Financing
|
Total
|
||||||||||||||||||||||||||||
Net Sales
|
||||||||||||||||||||||||||||||||||||
Product
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Service
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Cost of Sales
|
||||||||||||||||||||||||||||||||||||
Product
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Service
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Gross Profit
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Selling, general, and administrative
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Interest and financing costs
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Operating income
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Other income (expense)
|
(
|
)
|
|
|
||||||||||||||||||||||||||||||||
Earnings before tax
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||||||||||||||
Net Sales
|
||||||||||||||||||||||||||||||||||||
Contracts with customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Financing and other
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Selected Financial Data - Statement of Cash Flow
|
||||||||||||||||||||||||||||||||||||
Depreciation and amortization
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Purchases of property, equipment and operating lease equipment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Selected Financial Data - Balance Sheet
|
||||||||||||||||||||||||||||||||||||
Total assets
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Year Ended March 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
Customer end market:
|
||||||||||||
Telecom, Media & Entertainment
|
$
|
|
$
|
|
$
|
|
||||||
Technology
|
|
|
|
|||||||||
State and local government and educational institutions
|
|
|
|
|||||||||
Healthcare
|
|
|
|
|||||||||
Financial Services
|
|
|
|
|||||||||
All others
|
|
|
|
|||||||||
Net sales
|
|
|
|
|||||||||
Less: Revenue from financing and other
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Revenue from contracts with customers
|
$
|
|
$
|
|
$
|
|
||||||
Year Ended March 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
Vendor:
|
||||||||||||
Cisco Systems
|
$
|
|
$
|
|
$
|
|
||||||
Dell EMC
|
|
|
|
|||||||||
Juniper Networks
|
|
|
|
|||||||||
HP Inc. & HPE
|
|
|
|
|||||||||
Arista Networks
|
|
|
|
|||||||||
NetApp
|
|
|
|
|||||||||
All others
|
|
|
|
|||||||||
Net sales
|
|
|
|
|||||||||
Less: Revenue from financing and other
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Revenue from contracts with customers
|
$
|
|
$
|
|
$
|
|
Year Ended March 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
Net sales:
|
||||||||||||
US
|
$
|
|
$
|
|
$
|
|
||||||
Non US
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
||||||
March 31,
|
||||||||||||
2022
|
2021
|
|||||||||||
Long-lived tangible assets:
|
||||||||||||
US
|
$
|
|
$
|
|
||||||||
Non US
|
|
|
||||||||||
Total
|
$
|
|
$
|
|
Balance at
Beginning of
Period
|
Charged to
Costs and
Expenses
|
Deductions/
Write-Offs
|
Balance at End
of Period
|
|||||||||||||
Allowance for sales returns: (1)
|
||||||||||||||||
Year ended March 31, 2020
|
|
|
(
|
)
|
|
|||||||||||
Year ended March 31, 2021
|
|
|
(
|
)
|
|
|||||||||||
Year ended March 31, 2022
|
|
|
(
|
)
|
|
|||||||||||
Allowance for credit losses:
|
||||||||||||||||
Year ended March 31, 2020
|
|
|
(
|
)
|
|
|||||||||||
Year ended March 31, 2021
|
|
|
(
|
)
|
|
|||||||||||
Year ended March 31, 2022
|
|
(
|
)
|
(
|
)
|
|
||||||||||
Valuation for deferred taxes:
|
||||||||||||||||
Year ended March 31, 2020
|
|
|
|
|
||||||||||||
Year ended March 31, 2021
|
|
|
(
|
)
|
|
|||||||||||
Year ended March 31, 2022
|
|
|
|
|
(1) |
These amounts represent the gross profit effect of sales returns during the respective years. Expected merchandise returns after year-end for sales made before year-end were $
|
• |
the business combination or the transaction which resulted in the stockholder becoming an interested stockholder was approved by the board of directors of the corporation before such stockholder became an interested stockholder;
|
• |
upon consummation of the transaction that resulted in such stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction
commenced, excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) those shares owned (a) by directors who are also officers and (b) by employee stock
plans in which the employees do not have a confidential right to tender stock held by the plan in a tender or exchange offer; or
|
• |
after such stockholder becomes an interested stockholder, the business combination is approved by the board of directors of the corporation and authorized at a meeting, and not by written consent, by two-thirds of the outstanding voting
stock which is not owned by the interested stockholder.
|
• |
Election of Directors and Vacancies. The Amended and Restated
Certificate of Incorporation and our Amended and Restated Bylaws contain provisions that establish specific procedures for appointing and removing members of the board of directors. Vacancies and newly created directorships on our board
of directors may be filled only by a majority of the directors then serving on the board.
|
• |
Requirements for Advance Notification of Stockholder Nominations and Proposals. The Amended and Restated Bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors.
|
• |
Undesignated Preferred Stock. The ability to authorize undesignated
preferred stock will make it possible for our board of directors to issue preferred stock with super voting, special approval, dividend or other rights or preferences on a discriminatory basis that could impede the success of any attempt
to acquire us.
|
• |
No Cumulative Voting. The Amended and Restated Certificate of
Incorporation and Amended and Restated Bylaws do not provide for cumulative voting in the election of directors. Cumulative voting allows a minority stockholder to vote a portion or all of its shares for one or more candidates for seats
on the board of directors. Without cumulative voting, a minority stockholder will not be able to gain as many seats on the board of directors based on the number of shares of stock the stockholder holds as the stockholder would be able to
gain if cumulative voting were permitted. The absence of cumulative voting makes it more difficult for a minority stockholder to gain a seat on the board of directors to influence the board of director’s decision regarding a takeover.
|
1. |
I have reviewed this annual report on Form 10-K of ePlus inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;
|
4. |
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15 (f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation; and
|
d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of
directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and
report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ MARK P. MARRON
|
|
Mark P. Marron
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
1. |
I have reviewed this annual report on Form 10-K of ePlus inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;
|
4. |
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15 (f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation; and
|
d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of
directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and
report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ ELAINE D. MARION
|
|
Elaine D. Marion
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
a) |
the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
b) |
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of ePlus inc.
|
/s/ MARK P. MARRON
|
|
Mark P. Marron Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
/s/ ELAINE D. MARION
|
|
Elaine D. Marion Chief Financial Officer
|
|
(Principal Financial Officer)
|
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands |
Mar. 31, 2022 |
Mar. 31, 2021 |
---|---|---|
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 2,000 | 2,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000 | 50,000 |
Common stock, shares outstanding (in shares) | 26,886 | 27,006 |
Treasury stock, shares (in shares) | 130 | 1,987 |
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Net sales | |||
Total | $ 1,821,019 | $ 1,568,323 | $ 1,588,404 |
Cost of sales | |||
Total | 1,360,037 | 1,174,769 | 1,197,213 |
Gross profit | 460,982 | 393,554 | 391,191 |
Selling, general, and administrative | 297,117 | 271,263 | 279,182 |
Depreciation and amortization | 14,646 | 13,951 | 14,156 |
Interest and financing costs | 1,903 | 2,005 | 2,574 |
Operating expenses | 313,666 | 287,219 | 295,912 |
Operating income | 147,316 | 106,335 | 95,279 |
Other income (expense) | (432) | 571 | 680 |
Earnings before tax | 146,884 | 106,906 | 95,959 |
Provision for income taxes | 41,284 | 32,509 | 26,877 |
Net earnings | $ 105,600 | $ 74,397 | $ 69,082 |
Net earnings per common share-basic (in dollars per share) | $ 3.96 | $ 2.79 | $ 2.59 |
Net earnings per common share-diluted (in dollars per share) | $ 3.93 | $ 2.77 | $ 2.57 |
Weighted average common shares outstanding-basic (in shares) | 26,638 | 26,674 | 26,654 |
Weighted average common shares outstanding-diluted (in shares) | 26,866 | 26,834 | 26,830 |
Product [Member] | |||
Net sales | |||
Total | $ 1,580,394 | $ 1,366,158 | $ 1,395,288 |
Cost of sales | |||
Total | 1,210,943 | 1,049,677 | 1,076,773 |
Services [Member] | |||
Net sales | |||
Total | 240,625 | 202,165 | 193,116 |
Cost of sales | |||
Total | $ 149,094 | $ 125,092 | $ 120,440 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Mar. 31, 2020 |
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
NET EARNINGS | $ 105,600 | $ 74,397 | $ 69,082 |
OTHER COMPREHENSIVE INCOME, NET OF TAX: | |||
Foreign currency translation adjustments | (779) | 1,646 | (720) |
Other comprehensive income (loss) | (779) | 1,646 | (720) |
TOTAL COMPREHENSIVE INCOME | $ 104,821 | $ 76,043 | $ 68,362 |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||||||||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
1.
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
DESCRIPTION OF BUSINESS — Our company was founded in 1990 and is a Delaware corporation. ePlus inc. is sometimes referred to in this Annual Report on Form 10-K as “we,” “our,” “us,” “ourselves,” or “ePlus.” ePlus inc. is a holding company that through its subsidiaries provides information technology solutions which enable organizations to optimize their IT
environment and supply chain processes. We also provide consulting, professional, and managed services and complete lifecycle management services including flexible financing solutions. We focus on selling to medium and large enterprises in the
United States (“US”) and to customers in select international markets including the United Kingdom (“UK”), the European Union (“EU”), India, Singapore, and Israel.
BASIS OF PRESENTATION — The 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 acquired businesses are included in the consolidated financial statements
from the dates of acquisition.
USE OF ESTIMATES — The preparation of financial statements in conformity with accounting principles generally accepted in the US requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the
reporting periods. Estimates are used when accounting for items and matters including, but not limited to, revenue recognition, residual asset values, vendor consideration, lease classification, goodwill and intangibles, allowance for credit
losses, inventory obsolescence, and the recognition and measurement of income tax assets and other provisions and contingencies. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under
the circumstances. Actual results may differ from these estimates.
STOCK SPLIT — On December 13, 2021, we completed a two-for-one
stock split in the form of a stock dividend. References made to outstanding shares or per share amounts in the accompanying financial statements and disclosures have been retroactively adjusted for this stock split.
ALLOWANCE FOR CREDIT LOSSES — We maintain an allowance for credit losses related to our accounts receivable and financing receivables. We record an
expense in the amount necessary to adjust the allowance for credit losses to our current estimate of expected credit losses on financial assets. We estimate expected credit losses based on our internal rating of the customer’s credit quality, our
historical credit losses, current economic conditions, and other relevant factors. Prior to providing credit, we assign an internal rating for each customer’s credit quality based on the customer’s financial status, rating agency reports and other
financial information. We review our internal ratings for each customer at least annually or when there is an indicator of a change in credit quality, such as a delinquency or bankruptcy. We write off financing receivables when we deem them to be
uncollectable. Since the onset of the COVID-19 pandemic, we have measured our allowance using higher than historical loss rates to reflect forecasted credit deterioration.
BUSINESS COMBINATIONS — We account for business combinations using the acquisition method, which requires that the total purchase price for each of
the acquired entity be allocated to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The allocation process requires an analysis of intangible assets, such as customer relationships, trade names,
acquired contractual rights and assumed contractual commitments and legal contingencies to identify and record all assets acquired and liabilities assumed at their fair value.
We record any premium paid over the fair value of the acquired net assets as goodwill. Our initial purchase price allocations are subject to revision
within the measurement period, not to exceed one year from the date of acquisition. We include the results of operations for the acquired company in our financial statements from the acquisition date.
CASH AND CASH EQUIVALENTS — Cash and cash equivalents consist primarily of interest-bearing accounts and money market funds that consist of
short-term US treasury securities. We consider all highly liquid investments, including those with an original maturity of three months or less at the date of acquisition, to be cash equivalents. We have a lockbox account whose purpose is to
collect and distribute customer payments under financing arrangements. As of March 31, 2022, we were not holding any amounts in trust for third-party recipients. As of March 31, 2021, we had $0.7 million being held in trust for third-party recipients within our lockbox account. As of March 31, 2022, and March 31, 2021, there were no restrictions on the withdrawal of funds from our money market funds.
CONCENTRATIONS OF RISK — Financial instruments that potentially subject us to concentrations of credit risk include cash and cash equivalents,
short-term investments, accounts receivable, and financing receivables. Cash and cash equivalents may include short-term investments that are maintained principally with financial institutions in the US. Our accounts receivable-trade balance as of
March 31, 2022, and 2021 included approximately 14% and 20%, respectively, concentration of invoices due from Verizon Communications Inc. The risk on our accounts receivable and financing receivables is reduced by having a broad customer base in
a diverse range of industries and through the ongoing evaluation of collectability of our portfolio. The credit risk is further mitigated by transferring certain of our financing receivables to financial institutions on a non-recourse basis and,
for our lease receivables, by owning the underlying asset. A substantial portion of our sales are products from Cisco Systems, which represented approximately 39%, 36%, and 40%, of our technology segment net sales for the years ended March 31, 2022, 2021, and 2020, respectively.
DEFERRED COSTS — When a contract is within the scope of Accounting Standards Codification (“Codification”) Topic 606, Revenue from Contracts with Customers (“Codification Topic 606”), we defer costs of fulfilling the contract when they generate or enhance resources that will be used by us in satisfying
performance obligations in the future. Additionally, we capitalize costs that are incremental to obtaining the contracts, predominately sales commissions, and expense them in proportion to each completed contract performance obligation.
DEFERRED REVENUE — We recognize deferred revenue when cash payments are received or due in advance of our performance.
EARNINGS PER SHARE — Basic earnings per share is calculated by dividing net earnings attributable to common stockholders by the basic weighted
average number of shares of common stock outstanding during each period. Diluted earnings per share reflects the potential dilution of securities that could participate in our earnings, including restricted stock awards during each period.
FAIR VALUE MEASUREMENT — We follow the guidance in Codification Topic 820 Fair Value Measurements (“Codification Topic 820”) which governs how to measure fair value for financial reporting. This topic defines fair value as the price that would be received to sell an asset, or paid to transfer a
liability, in an orderly transaction between market participants at the measurement date. This topic also establishes a fair value hierarchy that categorizes into three levels the inputs to valuation techniques used to measure fair value:
FINANCIAL INSTRUMENTS — For financial instruments such as cash, short-term investments, accounts receivables, accounts payable and other current
liabilities, we consider the recorded value of the financial instruments to approximate the fair value due to their short maturities. On March 31, 2022, the carrying amounts of our notes receivables, recourse and non-recourse payables were $80.5 million, $13.1 million, and $21.2 million, respectively, and their fair values were $80.0
million, $13.1 million, and $21.2
million, respectively. On March 31, 2021, the carrying amounts of our notes receivables, recourse and non-recourse payables were $112.6
million, $18.1 million, and $56.1
million, respectively, and their fair values were $113.2 million, $18.1 million, and $56.3 million, respectively.
FINANCING RECEIVABLES AND OPERATING LEASES — Financing receivables and operating leases consists of notes receivable, sales-type leases, and
operating leases. We issue financing receivables for periods generally between 2 to 6 years, with most terms ranging between 3 to 4 years. When we lease equipment under an operating lease, we recognize the underlying asset at cost and depreciate it on a straight-line bases over
its estimated useful life. We estimate that the useful life for most information technology (“IT”) equipment under lease is 4 years.
FOREIGN CURRENCY MATTERS — Our functional currency is the US dollar. Our international subsidiaries typically use their local currency as their
functional currency. We translate the assets and liabilities of our international subsidiaries into US dollars at the spot rate in effect at the applicable reporting date. We translate the revenues and expenses of our international subsidiaries
into US dollars at the average exchange rates in effect during the applicable period. We report the resulting foreign currency translation adjustment as accumulated other comprehensive income (loss), which is reflected as a separate component of
stockholders’ equity. We report all foreign currency transaction gains or losses in other income (expense) on our consolidated statement of operations. For the years ended March 31, 2022, 2021, and 2020, we recognized a loss of $0.5 million, a gain of $0.5 million,
and a loss of $0.4 million, respectively, due to foreign currency transactions.
GOODWILL — We test goodwill for impairment on an annual basis, as of October 1, and between annual tests if an event occurs, or circumstances
change, that would more likely than not reduce the fair value of a reporting unit below its carrying amount.
In a qualitative assessment, we assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50
percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. If, after assessing the totality of events or circumstances, we determine that it is not more likely than not that the fair value of a
reporting unit is less than its carrying amount, then the quantitative goodwill impairment test is unnecessary.
If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit
is less than its carrying amount, then we perform the quantitative goodwill impairment test. We may also elect the unconditional option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing
the quantitative goodwill impairment test.
In the quantitative impairment test, we compare the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value
of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. Conversely, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal
to that excess, limited to the total amount of goodwill allocated to that reporting unit.
IMPLEMENTATION COSTS OF A HOSTING ARRANGEMENT- We capitalize implementation costs incurred in a hosting arrangement that is a service contract with
the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We classify these capitalized costs in the same balance sheet line item as the amounts prepaid for the related hosting arrangement and we
present the amortization of these capitalized costs in the same income statement line item as the service fees for the related hosting arrangement. Our long-term prepaids are included in our consolidated balance sheets as part of property,
equipment, and other assets. We amortize the capitalized implementation costs over the term of the hosting arrangement.
INCOME TAXES — Deferred income taxes are accounted for in accordance with Codification Topic 740 Income Taxes (“Codification Topic 740”). Under this method, deferred income tax assets and liabilities are determined based on the temporary differences between the financial statement reporting and tax
bases of assets and liabilities, using tax rates currently in effect. Future tax benefits, such as net operating loss carry-forwards, are recognized to the extent that realization of these benefits is considered to be more likely than not. We
review our deferred tax assets at least annually and make necessary valuation adjustments.
In addition, we account for uncertain tax positions in accordance with Codification Topic 740. Specifically, the Topic prescribes a recognition
threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The interpretation also provides guidance on the related de-recognition,
classification, interest and penalties, accounting for interim periods, disclosure, and transition of uncertain tax positions. In accordance with our accounting policy, we recognize accrued interest and penalties related to unrecognized tax
benefits as a component of tax expense.
INVENTORIES — Inventories are stated at the lower of cost and net realizable value. Cost is determined using a weighted average cost method. Net
realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Our determination of the net realizable value for inventories is based on the
terms of underlying purchase commitments from our customers, current economic conditions including the impact of COVID-19, and other relevant factors.
LESSEE ACCOUNTING — We lease office space for periods up to 6 years. At the lease commencement date, we recognize operating lease liabilities based on the present value of the future minimum lease payments. In determining the present value of
future minimum lease payments, we use our incremental borrowing rate based on the information available at the commencement date. When the future minimum payments encompass non-lease components, we account for the lease and non-lease components
as a single lease component. We elected not to recognize right-of-use assets and lease liabilities for leases with an initial term of 12 months or less. We recognize lease expense on a straight-line basis over the lease term beginning on the
commencement date.
PROPERTY AND EQUIPMENT — Property and equipment are stated at cost, net of accumulated depreciation and amortization. We recognize property and
equipment obtained through a business combination at its fair market value as of the acquisition date. We compute depreciation and amortization using the straight-line method over the estimated useful lives of the related assets, which range
from
to seven years.
We typically depreciate internal use IT equipment over three years, perpetual software licenses over five years, furniture and fixtures over five years,
and telecommunications equipment over seven years.RESIDUAL ASSETS — Our estimate for the residual asset in a lease is the amount we expect to derive from the underlying asset following the end of
the lease term. In a sales-type lease, we recognize the unguaranteed residual asset, measured on a discounted basis, upon lease commencement. In our subsequent accounting for the lease, we increase the unguaranteed residual asset using the
effective interest method. We evaluate residual values for impairment on a quarterly basis. We recognize impairments as incurred. We do not recognize upward adjustments due to changes in estimates of residual values.
REVENUE RECOGNITION — We recognize most of our revenues from the sales of third-party products, third-party software, third-party maintenance,
software support, and services, ePlus professional and managed services, and hosting ePlus proprietary software. We recognize revenue from these sales under the guidance in Codification Topic 606.
The core principle of Codification Topic 606 is that an entity should recognize revenue for the transfer of goods and services equal to an amount
it expects to be entitled to receive for those goods and services. We account for a contract under Codification Topic 606 when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are
established, the contract has commercial substance, and collectability of consideration is probable.
Revenues are reported net of sales refunds, including an estimate of future returns based on an evaluation of historical sales returns, current
economic conditions, volume, and other relevant factors.
Our contracts with customers may include multiple promises that are distinct performance obligations. For such arrangements, we allocate the
transaction price to each performance obligation based on its relative standalone selling price. We determine standalone selling prices using expected cost-plus margin.
We recognize revenue when (or as) we satisfy a performance obligation by transferring a promised good or service to a customer. A good or service
is transferred when (or as) the customer obtains control of that good or service. Depending on the nature of each performance obligation, this may be at a point in time or over time, as further described below.
We typically invoice our customers for third-party products upon shipment, unless our customers lease the equipment through our financing segment,
in which case the arrangement is accounted for as a lease in accordance with Codification Topic 842, Leases (“Codification Topic 842”). We typically
invoice our customers for third-party software upon delivery and third-party services at the point of sale, unless our customers finance these products through our financing segment, in which case we record a financing receivable based on the
terms of the arrangement.
Product revenue
Sales of third-party products
We are the principal in sales of third-party products. As such, we recognize sales on a gross basis with the selling price to the customer recorded
as sales and the acquisition cost of the product recognized as cost of sales. We recognize revenue from these sales at the point in time that control passes to the customer, which is typically upon delivery of the product to the customer.
In some instances, our customers may request that we bill them for a product but retain physical possession of the product until later delivery,
commonly known as “bill-and-hold” arrangements. We have warehousing agreements with select customers wherein title to products ordered through the agreements transfers to our customer at the point we invoice the customer and after the product
arrives at our warehouse. In these “bill-and-hold” arrangements, we recognize revenue when the customer has ordered the product through their warehousing agreement with us or signed a bill-and-hold agreement with us, the product is identified
separately as belonging to the customer, and the product is ready for delivery to the customer.
We recognize sales of off-lease equipment within our financing segment when control passes to the customer, which is typically the date that title
to the equipment is transferred per the sales agreement.
Sales of third-party software
We are typically the principal in sales of third-party software. Sales are recognized on a gross basis with the selling price to the customer
recorded as sales and the acquisition cost of the product recognized as cost of sales. We recognize revenue from these sales at the point in time that control passes to the customer, which is typically upon delivery of the software to the
customer.
Sales of third-party maintenance, software support, and services
We are the agent in sales of third-party maintenance, software support, and services as the third-party controls the service until it is
transferred to the customer. Similarly, we are the agent in sales of third-party software and accompanying third-party support when the third-party software benefits the customer only in conjunction with the accompanying support. In these sales,
we consider the third-party software and support as inputs to a single performance obligation. In all these sales where we are the agent, we recognize sales on a net basis at the point that our customer and vendor accept the terms and conditions
of the arrangement.
Freight and sales tax
We present freight billed to our customers within sales and the related freight charged to us within cost of sales. We present sales tax collected
from customers and remittances to governmental authorities on a net basis.
Financing revenue and other
We account for leases to customers in accordance with Codification Topic 842. We utilize a portfolio approach by grouping together many similar
assets being leased to a single customer.
We classify our leases as either sales-type leases or operating leases. We classify leases as sales-type leases if any one of five criteria are
met, each of which indicate that the lease transfers control of the underlying asset to the lessee. We classify our other leases as operating leases.
For sales-type leases, upon lease commencement, we recognize the present value of the lease payments and the residual asset discounted using the
rate implicit in the lease. When we are financing equipment provided by another dealer, we typically do not have any selling profit or loss arising from the lease. When we are the dealer of the equipment being leased, we typically recognize
revenue in the amount of the lease receivable and cost of sales in the amount of the carrying value of the underlying asset minus the unguaranteed residual asset. After the commencement date, we recognize interest income as part of net sales
using the effective interest method.
For operating leases, we recognize the underlying asset as an operating lease asset. We depreciate the asset on a straight-line basis to its
estimated residual value over its estimated useful life. We recognize the lease payments over the lease term on a straight-line basis as part of net sales.
In all our leases, we recognize variable lease payments, primarily reimbursement for property taxes associated with the leased asset, as part of
net sales in the period in which the changes in facts and circumstances on which the variable lease payments are based occur. We exclude from revenues and expenses any sales taxes reimbursed by the lessee.
We also finance third-party software and third-party services for our customers, which we classify as notes-receivable. We recognize interest
income on our notes-receivable using the effective interest method.
We account for transfers of our financial assets, under Codification Topic 860 Transfers and Servicing (“Codification Topic 860”). When a transfer meets all the requirements for sale accounting, we derecognize the financial asset and record a net gain or loss that is included in net sales.
Service revenue
Sales of ePlus professional, managed services, and staffing
ePlus professional services offerings include
assessments, project management, and staging, configuration, and integration. ePlus managed service offerings range from monitoring and notification to a
fully outsourced network management or service desk solution. ePlus staffing delivers a full range of staffing solutions, including short-term, long-term,
temporary-to-hire, and direct-hire IT professionals. In all these arrangements, we satisfy our performance obligation and recognize revenue over time.
In arrangements for ePlus professional services and
staffing, we provide services under both time and materials and fixed price contracts. When services are provided on a time and materials basis, we recognize sales at agreed-upon billing rates as services are performed. When services are provided
on a fixed fee basis, we recognize sales over time in proportion to our progress toward complete satisfaction of the performance obligation. We typically measure progress based on costs incurred in proportion to total estimated costs, commonly
referred to as the “cost-to-cost” method.
In arrangements for ePlus managed services, our
arrangement is typically a single performance obligation comprised of a series of distinct services that are substantially the same and that have the same pattern of transfer (i.e., distinct days of service). We typically recognize sales from
these services on a straight-line basis over the period services are provided.
SHARE-BASED COMPENSATION — We account for share-based compensation in accordance with Codification Topic 718 Compensation—Stock Compensation. We recognize compensation cost for awards of restricted stock with graded vesting on a straight-line basis over the requisite service period. We
account for forfeitures when they occur. There are no additional conditions for vesting other than service conditions.
SOFTWARE DEVELOPMENT COSTS — We capitalize costs for the development of internal use software under the Codification Topic 350-40 Intangibles—Goodwill and Other Intangibles, Subtopic Internal-Use Software.
We did not have significant capitalized development costs for internal use software for the year ended March 31, 2022. We capitalized
development costs for internal use software of $0.2 million for both the years ended March 31, 2021 and March 31, 2020. We had
capitalized costs, net of amortization, of approximately $2.1 million and $3.4 million as of March 31, 2022, and March 31, 2021, respectively, that is included in the accompanying consolidated balance sheets as a component of other intangible assets-net.
TREASURY STOCK — We account for treasury stock under the cost method and include treasury stock as a component of stockholders’ equity on the
accompanying consolidated balance sheets.
VENDOR CONSIDERATION — We receive payments and credits from vendors pursuant to volume incentive programs and shared marketing expense programs.
Many of these programs extend over one or more quarters’ sales activities. Different programs have different vendor/program specific milestones to achieve. Amounts due from vendors as of March 31, 2022, and 2021 were $12.9 million and $18.2 million,
respectively, which were included within accounts receivable-other, net in the accompanying balance sheets.
We recognize rebates pursuant to volume incentive programs, when the rebate is probable and reasonably estimable, based on a systematic and
rational allocation of the cash consideration offered to the underlying transactions that result in our progress toward earning the rebate. When a rebate is not probable or not reasonably estimable, we recognized the rebate as the milestones are
achieved or as cash is received.
We recognize rebates pursuant to shared marketing expense programs as a reduction of the related selling and administrative expenses in the
period the program occurs when the consideration represents a reimbursement of specific, incremental, identifiable costs. We recognize consideration that exceeds the specific, incremental, identifiable costs as a reduction of cost of sales.
|
REVENUES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUES |
2. REVENUES
CONTRACT BALANCES
Accounts receivable – trade consists entirely of amounts due from contracts with customers. In addition, we had $47.5 million, $54.6 million, and $33.1 million of receivables from contracts with customers included within financing receivables as of March 31, 2022, 2021, and 2020, respectively. The
following table provides the balance of contract liabilities from contracts with customers (in thousands):
Revenue recognized from the beginning contract liability balance was $57.5 million and $42.2 million for the fiscal year ended March 31, 2022, and
2021, respectively.
PERFORMANCE OBLIGATIONS
The following table includes revenue expected to be recognized in the future related to
performance obligations, primarily non-cancelable contracts for
ePlus managed services, that are unsatisfied or
partially unsatisfied at the end of the reporting period (in thousands):
The table does not include the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and
(ii) contracts where we recognize revenue at the amount that we have the right to invoice for services performed.
|
FINANCING RECEIVABLES AND OPERATING LEASES |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCING RECEIVABLES AND OPERATING LEASES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCING RECEIVABLES AND OPERATING LEASES |
3. FINANCING RECEIVABLES AND OPERATING LEASES
Our financing receivables and operating leases consist primarily of leases of IT and communication equipment and notes receivable from financing
customer purchases of third-party software, maintenance, and services. Our leases often include elections for the lessee to purchase the underlying asset at the end of the lease term. Occasionally, our leases provide the lessee a bargain purchase
option.
The following table provides the profit recognized for sales-type leases at their commencement date, including modifications that are recognized on a
net basis, for the years ended March 31, 2022, and 2021 (in thousands):
The following table provides interest income in aggregate on our sales-type leases and lease income on our
operating leases for the years ended March 31, 2022, and 2021 (in thousands):
FINANCING RECEIVABLES—NET
The following tables provide a disaggregation of our financing receivables - net (in thousands):
The following table provides the future scheduled minimum lease payments for investments in sales-type leases as of March 31, 2022 (in thousands):
OPERATING LEASES—NET
Operating leases—net represents leases that do not qualify as sales-type leases. The components of the operating leases—net are as
follows (in thousands):
The following table provides the future scheduled minimum lease rental payments for operating leases as of March 31, 2022 (in thousands):
TRANSFERS OF FINANCIAL ASSETS
We enter into arrangements to transfer the contractual payments due under financing receivables and operating lease agreements, which are accounted for as secured
borrowings.
For transfers accounted for as a secured borrowing, the corresponding investments serve as collateral for non-recourse notes payable. As of March 31, 2022, and March 31,
2021, we had financing receivables of $21.1 million and $60.5 million, respectively, and operating leases of $2.0 million and $3.3 million, respectively which were collateral for non-recourse notes payable. See Note 8, “Notes Payable and Credit Facility.”
For transfers accounted for as sales, we derecognize the carrying value of the asset transferred plus any liability and recognize a net gain or loss on the sale, which are
presented within net sales in the consolidated statement of operations. For the years ended March 31, 2022, 2021, and 2020, we recognized net gains of $18.2 million, $14.5 million, and $21.8 million, respectively, and total proceeds from these sales were $855.1 million, $364.0 million, and $593.7 million, respectively.
When we retain servicing obligations in transfers accounted for as sales, we allocate a portion of the proceeds to deferred revenues, which is recognized as we perform the
services. As of March 31, 2022, and March 31, 2021, we had deferred revenue of $0.5 million and $0.4 million, respectively, for servicing obligations.
In a limited number of transfers accounted for as sales, we indemnified the assignee in
the event that the lessee elects to early terminate the lease. As of March 31, 2022, our total potential liability that could result from these indemnities is immaterial.
|
LESSEE ACCOUNTING |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LESSEE ACCOUNTING [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LESSEE ACCOUNTING |
4. LESSEE ACCOUNTING
We lease office space for periods up to six years. We recognize our right-of-use assets as part of . As of March 31, 2022, and
2021, we had right-of-use assets of $6.9
million and $8.8 million, respectively. We
recognize the current and long-term portions of our lease liability as part of and , respectively. As of March 31, 2022, and 2021, we had current lease liabilities of $3.6 million and $3.9 million, respectively, and long-term lease liabilities of $3.3 million and $5.0 million, respectively. We recognized rent expense of $5.3 million and $6.1 million as part of selling, general, and administrative expenses during the years ended March 31, 2022, and March 31, 2021, respectively.
Supplemental information about the remaining lease terms and discount
rates applied as of March 31, 2022, and March 30, 2021, are as
follows:
The following table provides our future lease payments under our operating leases as of
March 31, 2022 (in thousands):
|
GOODWILL AND OTHER INTANGIBLE ASSETS |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS |
5. GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL
The following table summarizes the changes in the carrying amount of goodwill for the years ended March 31, 2022, and March 31, 2021, respectively (in
thousands):
Goodwill represents the premium paid over the fair value of the net tangible and
intangible assets that are individually identified and separately recognized in business combinations. Our entire balance as of March 31, 2022, and March 31,
2021, relates to our technology reportable segment, which we also determined to be one reporting unit.
We test goodwill for impairment on an annual basis, as of the first day of our third fiscal quarter, and between annual tests if an event occurs, or
circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying value.
In our annual tests as of October 1, 2021, and 2020, we performed a qualitative assessment of goodwill and concluded that, more likely than not, the fair value of our technology reporting unit continued to substantially exceed its
carrying value.
We performed our last quantitative goodwill impairment test as of March 31, 2020. At that time, we concluded that the fair value of our technology
reporting unit substantially exceeded its carrying value. Our conclusions would not have been impacted by a ten percent change in our
estimate of the fair value of the reporting unit.
OTHER INTANGIBLE ASSETS
Our other intangible assets consist of the following as of March 31, 2022, and March 31, 2021 (in thousands):
Customer relationships and other intangibles are generally amortized between 5 to 10 years. Capitalized software development is generally
amortized over 5 years.
Total amortization expense for customer relationships and other intangible assets was $10.1 million, $10.3 million, and $9.4 million for the years ended March 31, 2022, 2021 and 2020, respectively. The following table
provides the future amortization expense for customer relationships and other intangible assets as of March 31, 2022 (in thousands):
|
ALLOWANCE FOR CREDIT LOSSES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES |
6.
ALLOWANCE FOR CREDIT LOSSES
The following table provides the activity in our allowance for credit losses for the years ended March 31, 2022, 2021 and 2020 (in thousands):
We evaluate our customers using an internally assigned credit quality rating (“CQR”). The CQR categories of our financing receivables are:
The following table provides the
amortized cost basis of our financing receivables by CQR and by credit origination year as of March 31, 2022(in thousands):
The following table provides the amortized cost basis of our financing receivables by CQR and by credit origination year as of March 31, 2021 (in
thousands):
The following table provides an aging analysis of our financing receivables as of March 31, 2022
(in thousands):
The following table provides an aging analysis of our financing receivables as of March 31, 2021 (in thousands):
Our financial assets on nonaccrual status were not significant as of March 31, 2022 and March 31, 2021.
|
PROPERTY AND EQUIPMENT-NET |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT-NET [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT-NET |
7. PROPERTY AND EQUIPMENT—NET
Property and equipment—net is a component of Property, equipment, and other assets. Our balance consists of the following (in thousands):
Depreciation and amortization expense on property and equipment, including amounts recognized in cost of sales, was $5.4 million for both the years ended March 31, 2022 and March 31, 2021, and $4.8 million for the year ended March 31, 2020.
|
NOTES PAYABLE AND CREDIT FACILITY |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE AND CREDIT FACILITY [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE AND CREDIT FACILITY |
8. NOTES PAYABLE AND CREDIT FACILITY
CREDIT FACILITY
We finance the operations of our subsidiaries ePlus Technology, inc., ePlus Technology Services, inc., and SLAIT Consulting, LLC (collectively, the
“Borrowers”) in our technology segment through a credit facility with Wells Fargo Commercial Distribution Finance, LLC (“WFCDF”). The WFCDF credit facility has a floor plan facility and a revolving credit facility.
Under the floor plan facility, we had an outstanding balance of $145.3 million and $98.7 million as of March 31, 2022, and March
31, 2021, respectively. On our balance sheet, our liability under the floor plan facility is presented as accounts payable – floor plan.
We did not have an outstanding balance under the
revolving credit facility as of March 31, 2022, or March 31, 2021.
The fair value of the outstanding balances under the WFCDF credit facility were approximately equal to their carrying value as of March 31, 2022, and March 31, 2021.
On October 13, 2021, the Borrowers amended, restated, and replaced in entirety their then-existing credit agreements with WFCDF. The new credit facility is established by
a syndicate of banks for which WFCDF acts as administrative agent and consists of a discretionary senior secured floorplan facility in favor of the Borrowers in the aggregate principal amount of up to $375 million, an increase from $275 million, together with a
sublimit for a revolving credit facility for up to $100 million (collectively, the “2021 Credit Facility”).
The amount of principal available is subject to a borrowing base determined by, among other things, the Borrowers’ accounts receivable and inventory,
each pursuant to a formula and subject to certain reserves. Loans accrue interest at a rate per annum equal to LIBOR plus 1.75%. The
LIBOR rate is based upon one-month, three-month, six-month and 12-month LIBOR periods, as selected by the Borrowers, and subject to a
floor of 0.00%.
Our borrowings under the 2021 Credit Facility are secured by the assets of the Borrowers. Additionally, the 2021 Credit Facility requires a guaranty
of $10.5 million by ePlus inc.
Under the 2021 Credit Facility, and under the predecessor WFCDF credit facility, the Borrowers are restricted in their ability to pay dividends to
ePlus inc. unless their available borrowing meets or met certain thresholds. As of March 31, 2022, and March 31, 2021, their available borrowing met the thresholds such that there were no restrictions on their ability to pay dividends.
The 2021 Credit Facility has an initial one-year
term, which automatically renews for successive one-year terms thereafter. However, either the Borrowers or WFCDF may terminate by
providing a written termination notice to the other party no less than 90 days prior to such termination.
The credit facility requires that financial statements of ePlus Technology, inc. and certain of its subsidiaries be provided within 45 days of each quarter and 90 days of
each fiscal year end and requires that other operational reports be provided on a regular basis. Either party may terminate with 90
days’ advance notice.
The loss of the WFCDF credit facility could have a material adverse effect on our future results as we currently rely on this facility and its
components for daily working capital and liquidity for our technology segment and as an operational function of our accounts payable process.
RECOURSE NOTES PAYABLE
Recourse notes payable consist of borrowings that, in the event of default, the lender
has recourse against us. As of March 31, 2022, and 2021 we had $13.1 million and $18.1 million, respectively, in recourse borrowings arising from one installment payment arrangement within our technology segment. Our payments under this installment agreement are due quarterly in amounts that are correlated to the payments due to us from a customer under a
related notes receivable. We discounted our payments due under this installment agreement to calculate our payable balance using an interest rate of 3.50% as of both March 31, 2022, and 2021.
NON-RECOURSE NOTES PAYABLE
Non-recourse notes payable consists of borrowings that, in the event of a default by a
customer, the lender generally only has recourse against the customer, and the assets serving as collateral, but not against us. As of March 31, 2022, and March 31,
2021, we had $21.2 million and $56.1 million, respectively, of
non-recourse borrowings that were collateralized by investments in notes and leases. Principal and interest payments are generally due periodically in amounts that are approximately equal to the total payments due from the customer under the
leases or notes receivable that collateralize the notes payable. The weighted average interest rate for our non-recourse notes payable was 3.59% and 3.35%, as of March 31, 2022, and March 31, 2021, respectively.
Our recourse and non-recourse notes payable as of March 31, 2022 mature as follows:
|
COMMITMENTS AND CONTINGENCIES |
12 Months Ended |
---|---|
Mar. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES |
9. COMMITMENTS AND CONTINGENCIES
LEGAL PROCEEDINGS
We are subject to various legal proceedings, as well as demands, claims and threatened
litigation, that arise in the normal course of our business and have not been fully resolved. The ultimate outcome of any litigation or other legal dispute is uncertain. When a loss related to a legal proceeding or claim is probable and
reasonably estimable, we accrue our best estimate for the ultimate resolution of the matter. If one or more legal matters are resolved against us in a reporting period for
amounts above our expectations, our financial condition and operating results for that period may be adversely affected. Any outcome, whether favorable or unfavorable, may materially and adversely affect us due to legal costs and expenses,
diversion of management attention and other factors. We expense legal costs in the period incurred. We cannot assure that additional contingencies of a legal nature or contingencies having legal aspects will not be asserted against us in the
future, and these matters could relate to prior, current, or future transactions or events.
|
EARNINGS PER SHARE |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE |
10. EARNINGS PER SHARE
Basic earnings per share is computed by dividing net earnings attributable to common shares by the weighted average number of common shares outstanding
for the period. Diluted net earnings per share include the potential dilution of securities that could participate in our earnings, but not securities that are anti-dilutive.
The following table provides a reconciliation of the numerators and denominators used to calculate basic and diluted net earnings per common share as
disclosed in our consolidated statements of operations for the fiscal years ended March 31, 2022, 2021 and 2020 (in thousands, except
per share data):
|
STOCKHOLDERS' EQUITY |
12 Months Ended |
---|---|
Mar. 31, 2022 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY |
11.
STOCKHOLDERS’ EQUITY
STOCK SPLIT AND TREASURY STOCK
On November 9, 2021, our Board of Directors (“Board”) approved a two-for-one stock split of our common stock in the form of a stock dividend paid on December 13, 2021,
to shareholders of record as of close of business on November 29, 2021. All share and per share information have been retroactively
adjusted to reflect the stock split and the incremental par value of the newly issued shares was recorded with the offset to additional paid-in capital.
On November 10, 2021, we retired 2,139,918
shares of treasury stock, adjusted for the stock split, with a carrying value of $82.2 million, which was deducted from common stock, for
the par value of the retired shares, and from retained earnings, for the excess of cost over the par value.
SHARE REPURCHASE PLAN
On March 24, 2022, our board of directors authorized the repurchase of up to 1,000,000 shares of our outstanding common stock, over a 12-month
period beginning May 28, 2022. On March 18, 2021, our board of directors authorized the repurchase of up to 1,000,000 shares of our outstanding common stock, adjusted for the stock split, over a 12-month period beginning May 28, 2021. On May 20, 2020, our board of directors authorized
the repurchase of up to 1,000,000 shares of
our outstanding common stock, adjusted for the stock split, over a 12-month period beginning May 28, 2020.
These plans authorized purchases to be made from time to time in the open market, or in privately negotiated transactions, subject to availability. Any
repurchased shares will have the status of treasury shares and may be used, when needed, for general corporate purposes.
During the year ended March 31, 2022, retroactively adjusted for the stock split, we purchased 227,990 shares of our outstanding common stock at an average cost of $48.48
per share for a total purchase price of $11.1 million under the share repurchase plan; we also acquired 55,430 shares of common stock at a value of $2.6
million to satisfy tax withholding obligations relating to the vesting of employees’ restricted stock.
During the year ended March 31, 2021, retroactively adjusted for the stock split, we purchased 118,202 shares of our outstanding common stock at an average cost of $35.92
per share for a total purchase price of $4.2 million under the share repurchase plan; we also acquired 75,280 shares of common stock at a value of $2.7
million to satisfy tax withholding obligations relating to the vesting of employees’ restricted stock.
|
SHARE-BASED COMPENSATION |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION |
12. SHARE-BASED COMPENSATION
SHARE-BASED PLANS
In each of the years ended March 31, 2022, 2021 and 2020, we issued share-based payment awards and had outstanding share-based payment awards under the following plans: (1) the 2012 Employee Long-Term Incentive Plan (“2012
Employee LTIP”), and (2) the 2017 Non-Employee Director Long-Term Incentive Plan (“2017 Director LTIP”). On September 16, 2021, our shareholders approved the 2021 Employee Long-Term Incentive Plan (“2021 Employee LTIP”). The 2021
Employee LTIP is effective October 1, 2021 and replaces the 2012 Employee LTIP. Beginning September
16, 2021, we permanently ceased issuing any additional shares under the 2012 Employee LTIP.
2012 Employee LTIP and 2021 Employee LTIP
On September 16, 2021, our stockholders approved the 2021 Employee LTIP that was adopted by the Board on July 21, 2021. Under the 2021 Employee LTIP, 3,000,000 shares, retroactively adjusted for the stock split, were authorized for grant of incentive stock options, nonqualified stock options, stock
appreciation rights, restricted stock, restricted stock units, performance awards, or other share-based awards to ePlus employees.
On September 13, 2012, our stockholders approved the 2012 Employee LTIP that was adopted by the Board on July 10, 2012. Under the 2012 Employee LTIP, 3,000,000 shares, retroactively adjusted to reflect the stock split, were authorized for grant of incentive stock options, nonqualified stock options,
stock appreciation rights, restricted stock, restricted stock units, performance awards, or other share-based awards to ePlus employees.
The purpose of these plans is to encourage our employees to acquire a proprietary interest in the growth and performance of ePlus, thus enhancing the
value of ePlus for the benefit of its stockholders, and to enhance our ability to attract and retain exceptionally qualified individuals. These plans are administered by the Compensation Committee. Shares issuable under these plans may consist of
authorized but unissued shares or shares held in our treasury. Under these plans, the Compensation Committee will determine the time and method of exercise or vesting of the awards. Shares under these plans will not be used to compensate our outside
directors, who may be compensated under the separate 2017 Director LTIP, as discussed below.
2017 Director LTIP
On September 12, 2017, our stockholders approved the 2017 Director LTIP that was adopted by the Board on July 24, 2017. Under the 2017 Director LTIP, 300,000 shares, retroactively adjusted for the stock split, were authorized for grant to non-employee directors. The purpose of the 2017 Director LTIP is
to align the economic interests of the directors with the interests of stockholders by including equity as a component of pay and to attract, motivate and retain experienced and knowledgeable directors. Each director receives an annual grant of
restricted stock having a grant-date fair value equal to the cash compensation earned by an outside director during our fiscal year ended immediately before the respective annual grant-date. These restricted shares are prohibited from being sold,
transferred, assigned, pledged, or otherwise encumbered or disposed of. The shares vest
on the one-year anniversary and on the anniversary from the date of the grant. In addition, each director may also elect to receive stock in lieu of their cash compensation. Stock
received in lieu of cash vests immediately.STOCK OPTION ACTIVITY
During the years ended March 31, 2022, 2021, and 2020, we did not grant any stock options, nor did we have any outstanding stock options.
RESTRICTED STOCK ACTIVITY
During the year ended March 31, 2022, we granted 14,316
restricted shares, adjusted for the stock split, under the 2017 Director LTIP and 155,722 restricted shares, adjusted for the stock split,
under the 2012 Employee LTIP, and no shares were granted under the 2021 Employee LTIP.
Cumulatively, as of March 31, 2022, we granted a total of 81,476
restricted shares, adjusted for the stock split, under the 2017 Director LTIP and 2,144,578 restricted shares, adjusted for the stock
split, under the 2012 Employee LTIP.
A summary of the non-vested restricted shares for year ended March 31, 2022, reflecting the stock split, is as follows:
In each of the years ended March 31, 2022, 2021 and 2020, we used the closing stock price on the grant date or, if the grant date falls on a date the
stock was not traded, the previous day’s closing stock price for the fair value of the award.
The weighted-average grant date fair value of restricted shares granted during the years ended March 31, 2022, 2021, and 2020 was $46.56, $35.95, and $36.47, respectively.
The aggregated fair value of restricted shares that vested during the years ended March 31, 2022, 2021, and 2020 was $7.1 million, $7.7 million, and $7.6 million, respectively.
Upon each vesting period of the restricted stock awards to employees, participants are subject to minimum tax withholding obligations. The 2012
Employee LTIP, the 2021 Employee LTIP, and the 2017 Director LTIP allows us to withhold a sufficient number of shares due to the participant to satisfy their minimum tax withholding obligations. For the year ended March 31, 2022, we withheld 55,430 shares of common stock, adjusted for the stock split, at a value of $2.6 million, which was included in treasury stock. For the year ended March 31, 2021, we withheld 75,280
shares of common stock, adjusted for the stock split, at a value of $2.7 million, which was included in treasury stock.
COMPENSATION EXPENSE
We recognize compensation cost for awards of restricted stock with graded vesting on a straight-line basis over the requisite service period. We
account for forfeitures when they occur. There are no additional conditions for vesting other than service conditions.
During the years ended March 31, 2022, 2021 and 2020, we recognized $7.1 million, $7.2 million, and $8.0 million, respectively, of total share-based compensation expense. We recognized tax benefits related to share-based compensation of $2.0 million, $2.2 million, and $2.2 million for the years ended March 31, 2022, 2021, and 2020, respectively, which were included as a reduction to our provision for income taxes. As of
March 31, 2022, the total unrecognized compensation expense related to non-vested restricted stock was $8.7 million, which is expected to
be recognized over a weighted-average period of 27 months.
We also provide our employees with a contributory 401(k) profit sharing plan. We may make contributions, which are fully vested when they are made, to the plan. These contributions are not required. The decision whether to make contributions is entirely within
our discretion. For the years ended March 31, 2022, 2021, and 2020, we recognized expense for employer
contributions to the plan of $3.4 million, $3.0 million, and $2.8 million, respectively.
|
INCOME TAXES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES |
13. INCOME TAXES
We account for our tax positions in accordance with Codification Topic 740. Under the guidance, we evaluate uncertain tax positions based on the
two-step approach. The first step is to evaluate each uncertain tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained in an audit, including
resolution of related appeals or litigation processes, if any. For tax positions that are not likely of being sustained upon audit, the second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50 percent
likely of being realized upon ultimate settlement.
Our total gross unrecognized tax benefits recorded for uncertain income tax, and interest and penalties thereon, were negligible as of March 31, 2022,
and March 31, 2021. We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense.
We file income tax returns, including returns for our subsidiaries, with federal, state, local, and foreign jurisdictions. Tax years 2019, 2020, and
2021 are subjected to examination by federal and state taxing authorities. Various state and local income tax returns are also under examination by taxing authorities. We do not believe that the outcome of any examination will have a material impact
on our financial statements.
A reconciliation of income taxes computed at the statutory federal income tax rate of 21.0% to the provision for income taxes included in the
consolidated statements of operations is as follows (in thousands, except percentages):
The components of the provision for income taxes are as follows (in thousands):
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities were as follows (in thousands):
Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use
of the existing deferred tax assets. As of March 31, 2022, we established a valuation allowance of $0.3 million, to offset gross deferred
tax assets primarily attributable to cumulative net operating losses at certain of the foreign subsidiaries and foreign tax credit carry forwards. We believe that it is more likely than not that we will realize the remaining gross deferred tax assets
through generating taxable income or the reversal of existing temporary differences attributable to the gross deferred tax liabilities.
|
FAIR VALUE MEASUREMENTS |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS |
14. FAIR VALUE MEASUREMENTS
We account for the fair values of our assets and liabilities utilizing a three-tier value hierarchy, which prioritizes the inputs used in measuring
fair value.
The following table provides the fair value of our assets and liabilities measured at fair
value as categorized within the fair value hierarchy as of March 31, 2022, and March 31, 2021 (in thousands):
|
BUSINESS COMBINATIONS |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS COMBINATIONS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS COMBINATIONS |
15.
BUSINESS COMBINATIONS
SYSTEMS MANAGEMENT PLANNING (“SMP”)
On December 31, 2020, our subsidiary, ePlus Technology,
inc., acquired certain assets and liabilities of SMP, an established provider of technology solutions and services in upstate New York and the Northeast. The acquisition enhances ePlus’ footprint across the region, broadens our technology solution offerings especially in the areas of collaboration and supporting virtual employees, and adds to ePlus’ set of commercial, enterprise and state, local, and education customers.
Our sum of consideration transferred was $27.0
million consisting of $29.0 million paid in cash at closing less $2.0 million that was paid back to us in our quarter ended March 31, 2021 related to a working capital adjustment. Our allocation of
the purchase consideration to the assets acquired and liabilities assumed is presented below (in thousands):
The identified intangible assets of $14.3
million consists of customer relationships with an estimated useful life of seven years. The fair value of acquired receivables equals the
gross contractual amounts receivable. We expect to collect all acquired receivables.
We recognized goodwill related to this transaction of $8.3
million, which was assigned to our technology reporting unit. The goodwill recognized in the acquisition is attributable to the acquired assembled workforce and expected synergies, none of which qualify for recognition as a separate intangible asset.
The total amount of goodwill is expected to be deductible for tax purposes. The amount of revenues and earnings of the acquiree since the acquisition date are not material. Likewise, the impact to the revenue and earnings of the combined entity for
the current reporting period as though the acquisition date had been April 1, 2020, is not material.
|
SEGMENT REPORTING |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING |
16. SEGMENT REPORTING
Our segment information is presented in accordance with a “management approach,” which designates the internal reporting used by the chief operating
decision-maker (“CODM”) for deciding how to allocate resources and for assessing performance. Our CODM is our Chief Executive Officer and President. Our CODM conducts our operations through two operating segments- our technology segment and our financing segment. Our technology segment includes sales of information technology products, third-party software,
third-party maintenance, advanced professional and managed services and our proprietary software to commercial, state, and local governments, and government contractors. Our financing segment consists of the financing of IT equipment, software and
related services to commercial, state, and local governments, and government contractors. Our CODM uses several measures to allocate resources and assess performance. Our reported measure is earnings before taxes.
Our reportable segment information was as follows (in thousands):
TECHNOLOGY SEGMENT DISAGGREGATION OF REVENUE
We analyze net sales for our technology segment by customer end market and by vendor, as opposed to discrete product and service categories, which are
summarized below (in thousands):
FINANCING SEGMENT DISAGGREGATION OF REVENUE
We analyze our revenues within our financing segment based on the nature of the arrangement, and our revenues from contracts with customers consist of
proceeds from the sale of off-lease equipment.
GEOGRAPHIC INFORMATION
The geographic information for the years ended March 31, 2022, 2021, and 2020 was as follows (in thousands):
Our long-lived tangible assets include property and equipment-net, operating leases-net, and equipment that has been returned to us at the termination
of the lease.
Sales to Verizon Communications Inc. represented 24%, 19% and 15% of net sales for the years ended March 31, 2022, March 31, 2021, and March 31, 2020, respectively, all of which related to our technology segment.
|
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts |
ePlus inc. AND SUBSIDIARIES
Schedule II - Valuation and Qualifying Accounts
(Dollars in thousands)
|
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||||||||
BASIS OF PRESENTATION |
BASIS OF PRESENTATION — The 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 acquired businesses are included in the consolidated financial statements
from the dates of acquisition.
|
|||||||||
USE OF ESTIMATES |
USE OF ESTIMATES — The preparation of financial statements in conformity with accounting principles generally accepted in the US requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the
reporting periods. Estimates are used when accounting for items and matters including, but not limited to, revenue recognition, residual asset values, vendor consideration, lease classification, goodwill and intangibles, allowance for credit
losses, inventory obsolescence, and the recognition and measurement of income tax assets and other provisions and contingencies. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under
the circumstances. Actual results may differ from these estimates.
|
|||||||||
STOCK SPLIT |
STOCK SPLIT — On December 13, 2021, we completed a two-for-one
stock split in the form of a stock dividend. References made to outstanding shares or per share amounts in the accompanying financial statements and disclosures have been retroactively adjusted for this stock split.
|
|||||||||
ALLOWANCE FOR CREDIT LOSSES |
ALLOWANCE FOR CREDIT LOSSES — We maintain an allowance for credit losses related to our accounts receivable and financing receivables. We record an
expense in the amount necessary to adjust the allowance for credit losses to our current estimate of expected credit losses on financial assets. We estimate expected credit losses based on our internal rating of the customer’s credit quality, our
historical credit losses, current economic conditions, and other relevant factors. Prior to providing credit, we assign an internal rating for each customer’s credit quality based on the customer’s financial status, rating agency reports and other
financial information. We review our internal ratings for each customer at least annually or when there is an indicator of a change in credit quality, such as a delinquency or bankruptcy. We write off financing receivables when we deem them to be
uncollectable. Since the onset of the COVID-19 pandemic, we have measured our allowance using higher than historical loss rates to reflect forecasted credit deterioration.
|
|||||||||
BUSINESS COMBINATIONS |
BUSINESS COMBINATIONS — We account for business combinations using the acquisition method, which requires that the total purchase price for each of
the acquired entity be allocated to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The allocation process requires an analysis of intangible assets, such as customer relationships, trade names,
acquired contractual rights and assumed contractual commitments and legal contingencies to identify and record all assets acquired and liabilities assumed at their fair value.
We record any premium paid over the fair value of the acquired net assets as goodwill. Our initial purchase price allocations are subject to revision
within the measurement period, not to exceed one year from the date of acquisition. We include the results of operations for the acquired company in our financial statements from the acquisition date.
|
|||||||||
CASH AND CASH EQUIVALENTS |
CASH AND CASH EQUIVALENTS — Cash and cash equivalents consist primarily of interest-bearing accounts and money market funds that consist of
short-term US treasury securities. We consider all highly liquid investments, including those with an original maturity of three months or less at the date of acquisition, to be cash equivalents. We have a lockbox account whose purpose is to
collect and distribute customer payments under financing arrangements. As of March 31, 2022, we were not holding any amounts in trust for third-party recipients. As of March 31, 2021, we had $0.7 million being held in trust for third-party recipients within our lockbox account. As of March 31, 2022, and March 31, 2021, there were no restrictions on the withdrawal of funds from our money market funds.
|
|||||||||
CONCENTRATIONS OF RISK |
CONCENTRATIONS OF RISK — Financial instruments that potentially subject us to concentrations of credit risk include cash and cash equivalents,
short-term investments, accounts receivable, and financing receivables. Cash and cash equivalents may include short-term investments that are maintained principally with financial institutions in the US. Our accounts receivable-trade balance as of
March 31, 2022, and 2021 included approximately 14% and 20%, respectively, concentration of invoices due from Verizon Communications Inc. The risk on our accounts receivable and financing receivables is reduced by having a broad customer base in
a diverse range of industries and through the ongoing evaluation of collectability of our portfolio. The credit risk is further mitigated by transferring certain of our financing receivables to financial institutions on a non-recourse basis and,
for our lease receivables, by owning the underlying asset. A substantial portion of our sales are products from Cisco Systems, which represented approximately 39%, 36%, and 40%, of our technology segment net sales for the years ended March 31, 2022, 2021, and 2020, respectively.
|
|||||||||
DEFERRED COSTS |
DEFERRED COSTS — When a contract is within the scope of Accounting Standards Codification (“Codification”) Topic 606, Revenue from Contracts with Customers (“Codification Topic 606”), we defer costs of fulfilling the contract when they generate or enhance resources that will be used by us in satisfying
performance obligations in the future. Additionally, we capitalize costs that are incremental to obtaining the contracts, predominately sales commissions, and expense them in proportion to each completed contract performance obligation.
|
|||||||||
DEFERRED REVENUE |
DEFERRED REVENUE — We recognize deferred revenue when cash payments are received or due in advance of our performance.
|
|||||||||
EARNINGS PER SHARE |
EARNINGS PER SHARE — Basic earnings per share is calculated by dividing net earnings attributable to common stockholders by the basic weighted
average number of shares of common stock outstanding during each period. Diluted earnings per share reflects the potential dilution of securities that could participate in our earnings, including restricted stock awards during each period.
|
|||||||||
FAIR VALUE MEASUREMENT |
FAIR VALUE MEASUREMENT — We follow the guidance in Codification Topic 820 Fair Value Measurements (“Codification Topic 820”) which governs how to measure fair value for financial reporting. This topic defines fair value as the price that would be received to sell an asset, or paid to transfer a
liability, in an orderly transaction between market participants at the measurement date. This topic also establishes a fair value hierarchy that categorizes into three levels the inputs to valuation techniques used to measure fair value:
|
|||||||||
FINANCIAL INSTRUMENTS |
FINANCIAL INSTRUMENTS — For financial instruments such as cash, short-term investments, accounts receivables, accounts payable and other current
liabilities, we consider the recorded value of the financial instruments to approximate the fair value due to their short maturities. On March 31, 2022, the carrying amounts of our notes receivables, recourse and non-recourse payables were $80.5 million, $13.1 million, and $21.2 million, respectively, and their fair values were $80.0
million, $13.1 million, and $21.2
million, respectively. On March 31, 2021, the carrying amounts of our notes receivables, recourse and non-recourse payables were $112.6
million, $18.1 million, and $56.1
million, respectively, and their fair values were $113.2 million, $18.1 million, and $56.3 million, respectively.
|
|||||||||
FINANCING RECEIVABLES AND OPERATING LEASES |
FINANCING RECEIVABLES AND OPERATING LEASES — Financing receivables and operating leases consists of notes receivable, sales-type leases, and
operating leases. We issue financing receivables for periods generally between 2 to 6 years, with most terms ranging between 3 to 4 years. When we lease equipment under an operating lease, we recognize the underlying asset at cost and depreciate it on a straight-line bases over
its estimated useful life. We estimate that the useful life for most information technology (“IT”) equipment under lease is 4 years.
|
|||||||||
FOREIGN CURRENCY MATTERS |
FOREIGN CURRENCY MATTERS — Our functional currency is the US dollar. Our international subsidiaries typically use their local currency as their
functional currency. We translate the assets and liabilities of our international subsidiaries into US dollars at the spot rate in effect at the applicable reporting date. We translate the revenues and expenses of our international subsidiaries
into US dollars at the average exchange rates in effect during the applicable period. We report the resulting foreign currency translation adjustment as accumulated other comprehensive income (loss), which is reflected as a separate component of
stockholders’ equity. We report all foreign currency transaction gains or losses in other income (expense) on our consolidated statement of operations. For the years ended March 31, 2022, 2021, and 2020, we recognized a loss of $0.5 million, a gain of $0.5 million,
and a loss of $0.4 million, respectively, due to foreign currency transactions.
|
|||||||||
GOODWILL |
GOODWILL — We test goodwill for impairment on an annual basis, as of October 1, and between annual tests if an event occurs, or circumstances
change, that would more likely than not reduce the fair value of a reporting unit below its carrying amount.
In a qualitative assessment, we assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50
percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. If, after assessing the totality of events or circumstances, we determine that it is not more likely than not that the fair value of a
reporting unit is less than its carrying amount, then the quantitative goodwill impairment test is unnecessary.
If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit
is less than its carrying amount, then we perform the quantitative goodwill impairment test. We may also elect the unconditional option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing
the quantitative goodwill impairment test.
In the quantitative impairment test, we compare the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value
of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. Conversely, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal
to that excess, limited to the total amount of goodwill allocated to that reporting unit.
|
|||||||||
IMPLEMENTATION COSTS OF A HOSTING ARRANGEMENT |
IMPLEMENTATION COSTS OF A HOSTING ARRANGEMENT- We capitalize implementation costs incurred in a hosting arrangement that is a service contract with
the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We classify these capitalized costs in the same balance sheet line item as the amounts prepaid for the related hosting arrangement and we
present the amortization of these capitalized costs in the same income statement line item as the service fees for the related hosting arrangement. Our long-term prepaids are included in our consolidated balance sheets as part of property,
equipment, and other assets. We amortize the capitalized implementation costs over the term of the hosting arrangement.
|
|||||||||
INCOME TAXES |
INCOME TAXES — Deferred income taxes are accounted for in accordance with Codification Topic 740 Income Taxes (“Codification Topic 740”). Under this method, deferred income tax assets and liabilities are determined based on the temporary differences between the financial statement reporting and tax
bases of assets and liabilities, using tax rates currently in effect. Future tax benefits, such as net operating loss carry-forwards, are recognized to the extent that realization of these benefits is considered to be more likely than not. We
review our deferred tax assets at least annually and make necessary valuation adjustments.
In addition, we account for uncertain tax positions in accordance with Codification Topic 740. Specifically, the Topic prescribes a recognition
threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The interpretation also provides guidance on the related de-recognition,
classification, interest and penalties, accounting for interim periods, disclosure, and transition of uncertain tax positions. In accordance with our accounting policy, we recognize accrued interest and penalties related to unrecognized tax
benefits as a component of tax expense.
|
|||||||||
INVENTORIES |
INVENTORIES — Inventories are stated at the lower of cost and net realizable value. Cost is determined using a weighted average cost method. Net
realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Our determination of the net realizable value for inventories is based on the
terms of underlying purchase commitments from our customers, current economic conditions including the impact of COVID-19, and other relevant factors.
|
|||||||||
LESSEE ACCOUNTING |
LESSEE ACCOUNTING — We lease office space for periods up to 6 years. At the lease commencement date, we recognize operating lease liabilities based on the present value of the future minimum lease payments. In determining the present value of
future minimum lease payments, we use our incremental borrowing rate based on the information available at the commencement date. When the future minimum payments encompass non-lease components, we account for the lease and non-lease components
as a single lease component. We elected not to recognize right-of-use assets and lease liabilities for leases with an initial term of 12 months or less. We recognize lease expense on a straight-line basis over the lease term beginning on the
commencement date.
|
|||||||||
PROPERTY AND EQUIPMENT |
PROPERTY AND EQUIPMENT — Property and equipment are stated at cost, net of accumulated depreciation and amortization. We recognize property and
equipment obtained through a business combination at its fair market value as of the acquisition date. We compute depreciation and amortization using the straight-line method over the estimated useful lives of the related assets, which range
from
to seven years.
We typically depreciate internal use IT equipment over three years, perpetual software licenses over five years, furniture and fixtures over five years,
and telecommunications equipment over seven years. |
|||||||||
RESIDUAL ASSETS |
RESIDUAL ASSETS — Our estimate for the residual asset in a lease is the amount we expect to derive from the underlying asset following the end of
the lease term. In a sales-type lease, we recognize the unguaranteed residual asset, measured on a discounted basis, upon lease commencement. In our subsequent accounting for the lease, we increase the unguaranteed residual asset using the
effective interest method. We evaluate residual values for impairment on a quarterly basis. We recognize impairments as incurred. We do not recognize upward adjustments due to changes in estimates of residual values.
|
|||||||||
REVENUE RECOGNITION |
REVENUE RECOGNITION — We recognize most of our revenues from the sales of third-party products, third-party software, third-party maintenance,
software support, and services, ePlus professional and managed services, and hosting ePlus proprietary software. We recognize revenue from these sales under the guidance in Codification Topic 606.
The core principle of Codification Topic 606 is that an entity should recognize revenue for the transfer of goods and services equal to an amount
it expects to be entitled to receive for those goods and services. We account for a contract under Codification Topic 606 when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are
established, the contract has commercial substance, and collectability of consideration is probable.
Revenues are reported net of sales refunds, including an estimate of future returns based on an evaluation of historical sales returns, current
economic conditions, volume, and other relevant factors.
Our contracts with customers may include multiple promises that are distinct performance obligations. For such arrangements, we allocate the
transaction price to each performance obligation based on its relative standalone selling price. We determine standalone selling prices using expected cost-plus margin.
We recognize revenue when (or as) we satisfy a performance obligation by transferring a promised good or service to a customer. A good or service
is transferred when (or as) the customer obtains control of that good or service. Depending on the nature of each performance obligation, this may be at a point in time or over time, as further described below.
We typically invoice our customers for third-party products upon shipment, unless our customers lease the equipment through our financing segment,
in which case the arrangement is accounted for as a lease in accordance with Codification Topic 842, Leases (“Codification Topic 842”). We typically
invoice our customers for third-party software upon delivery and third-party services at the point of sale, unless our customers finance these products through our financing segment, in which case we record a financing receivable based on the
terms of the arrangement.
Product revenue
Sales of third-party products
We are the principal in sales of third-party products. As such, we recognize sales on a gross basis with the selling price to the customer recorded
as sales and the acquisition cost of the product recognized as cost of sales. We recognize revenue from these sales at the point in time that control passes to the customer, which is typically upon delivery of the product to the customer.
In some instances, our customers may request that we bill them for a product but retain physical possession of the product until later delivery,
commonly known as “bill-and-hold” arrangements. We have warehousing agreements with select customers wherein title to products ordered through the agreements transfers to our customer at the point we invoice the customer and after the product
arrives at our warehouse. In these “bill-and-hold” arrangements, we recognize revenue when the customer has ordered the product through their warehousing agreement with us or signed a bill-and-hold agreement with us, the product is identified
separately as belonging to the customer, and the product is ready for delivery to the customer.
We recognize sales of off-lease equipment within our financing segment when control passes to the customer, which is typically the date that title
to the equipment is transferred per the sales agreement.
Sales of third-party software
We are typically the principal in sales of third-party software. Sales are recognized on a gross basis with the selling price to the customer
recorded as sales and the acquisition cost of the product recognized as cost of sales. We recognize revenue from these sales at the point in time that control passes to the customer, which is typically upon delivery of the software to the
customer.
Sales of third-party maintenance, software support, and services
We are the agent in sales of third-party maintenance, software support, and services as the third-party controls the service until it is
transferred to the customer. Similarly, we are the agent in sales of third-party software and accompanying third-party support when the third-party software benefits the customer only in conjunction with the accompanying support. In these sales,
we consider the third-party software and support as inputs to a single performance obligation. In all these sales where we are the agent, we recognize sales on a net basis at the point that our customer and vendor accept the terms and conditions
of the arrangement.
Freight and sales tax
We present freight billed to our customers within sales and the related freight charged to us within cost of sales. We present sales tax collected
from customers and remittances to governmental authorities on a net basis.
Financing revenue and other
We account for leases to customers in accordance with Codification Topic 842. We utilize a portfolio approach by grouping together many similar
assets being leased to a single customer.
We classify our leases as either sales-type leases or operating leases. We classify leases as sales-type leases if any one of five criteria are
met, each of which indicate that the lease transfers control of the underlying asset to the lessee. We classify our other leases as operating leases.
For sales-type leases, upon lease commencement, we recognize the present value of the lease payments and the residual asset discounted using the
rate implicit in the lease. When we are financing equipment provided by another dealer, we typically do not have any selling profit or loss arising from the lease. When we are the dealer of the equipment being leased, we typically recognize
revenue in the amount of the lease receivable and cost of sales in the amount of the carrying value of the underlying asset minus the unguaranteed residual asset. After the commencement date, we recognize interest income as part of net sales
using the effective interest method.
For operating leases, we recognize the underlying asset as an operating lease asset. We depreciate the asset on a straight-line basis to its
estimated residual value over its estimated useful life. We recognize the lease payments over the lease term on a straight-line basis as part of net sales.
In all our leases, we recognize variable lease payments, primarily reimbursement for property taxes associated with the leased asset, as part of
net sales in the period in which the changes in facts and circumstances on which the variable lease payments are based occur. We exclude from revenues and expenses any sales taxes reimbursed by the lessee.
We also finance third-party software and third-party services for our customers, which we classify as notes-receivable. We recognize interest
income on our notes-receivable using the effective interest method.
We account for transfers of our financial assets, under Codification Topic 860 Transfers and Servicing (“Codification Topic 860”). When a transfer meets all the requirements for sale accounting, we derecognize the financial asset and record a net gain or loss that is included in net sales.
Service revenue
Sales of ePlus professional, managed services, and staffing
ePlus professional services offerings include
assessments, project management, and staging, configuration, and integration. ePlus managed service offerings range from monitoring and notification to a
fully outsourced network management or service desk solution. ePlus staffing delivers a full range of staffing solutions, including short-term, long-term,
temporary-to-hire, and direct-hire IT professionals. In all these arrangements, we satisfy our performance obligation and recognize revenue over time.
In arrangements for ePlus professional services and
staffing, we provide services under both time and materials and fixed price contracts. When services are provided on a time and materials basis, we recognize sales at agreed-upon billing rates as services are performed. When services are provided
on a fixed fee basis, we recognize sales over time in proportion to our progress toward complete satisfaction of the performance obligation. We typically measure progress based on costs incurred in proportion to total estimated costs, commonly
referred to as the “cost-to-cost” method.
In arrangements for ePlus managed services, our
arrangement is typically a single performance obligation comprised of a series of distinct services that are substantially the same and that have the same pattern of transfer (i.e., distinct days of service). We typically recognize sales from
these services on a straight-line basis over the period services are provided.
|
|||||||||
SHARE-BASED COMPENSATION |
SHARE-BASED COMPENSATION — We account for share-based compensation in accordance with Codification Topic 718 Compensation—Stock Compensation. We recognize compensation cost for awards of restricted stock with graded vesting on a straight-line basis over the requisite service period. We
account for forfeitures when they occur. There are no additional conditions for vesting other than service conditions.
|
|||||||||
SOFTWARE DEVELOPMENT COSTS |
SOFTWARE DEVELOPMENT COSTS — We capitalize costs for the development of internal use software under the Codification Topic 350-40 Intangibles—Goodwill and Other Intangibles, Subtopic Internal-Use Software.
We did not have significant capitalized development costs for internal use software for the year ended March 31, 2022. We capitalized
development costs for internal use software of $0.2 million for both the years ended March 31, 2021 and March 31, 2020. We had
capitalized costs, net of amortization, of approximately $2.1 million and $3.4 million as of March 31, 2022, and March 31, 2021, respectively, that is included in the accompanying consolidated balance sheets as a component of other intangible assets-net.
|
|||||||||
TREASURY STOCK |
TREASURY STOCK — We account for treasury stock under the cost method and include treasury stock as a component of stockholders’ equity on the
accompanying consolidated balance sheets.
|
|||||||||
VENDOR CONSIDERATION |
VENDOR CONSIDERATION — We receive payments and credits from vendors pursuant to volume incentive programs and shared marketing expense programs.
Many of these programs extend over one or more quarters’ sales activities. Different programs have different vendor/program specific milestones to achieve. Amounts due from vendors as of March 31, 2022, and 2021 were $12.9 million and $18.2 million,
respectively, which were included within accounts receivable-other, net in the accompanying balance sheets.
We recognize rebates pursuant to volume incentive programs, when the rebate is probable and reasonably estimable, based on a systematic and
rational allocation of the cash consideration offered to the underlying transactions that result in our progress toward earning the rebate. When a rebate is not probable or not reasonably estimable, we recognized the rebate as the milestones are
achieved or as cash is received.
We recognize rebates pursuant to shared marketing expense programs as a reduction of the related selling and administrative expenses in the
period the program occurs when the consideration represents a reimbursement of specific, incremental, identifiable costs. We recognize consideration that exceeds the specific, incremental, identifiable costs as a reduction of cost of sales.
|
REVENUES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance of Receivables, Contract Assets, and Contract Liabilities | The
following table provides the balance of contract liabilities from contracts with customers (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining Performance Obligations |
The following table includes revenue expected to be recognized in the future related to
performance obligations, primarily non-cancelable contracts for
ePlus managed services, that are unsatisfied or
partially unsatisfied at the end of the reporting period (in thousands):
The table does not include the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and
(ii) contracts where we recognize revenue at the amount that we have the right to invoice for services performed.
|
FINANCING RECEIVABLES AND OPERATING LEASES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCING RECEIVABLES AND OPERATING LEASES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales-type Leases |
The following table provides the profit recognized for sales-type leases at their commencement date, including modifications that are recognized on a
net basis, for the years ended March 31, 2022, and 2021 (in thousands):
The following table provides interest income in aggregate on our sales-type leases and lease income on our
operating leases for the years ended March 31, 2022, and 2021 (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Receivable Net and Investments in Leases |
The following tables provide a disaggregation of our financing receivables - net (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Scheduled Minimum Lease Payments |
The following table provides the future scheduled minimum lease payments for investments in sales-type leases as of March 31, 2022 (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Operating Lease Equipment - Net | The components of the operating leases—net are as
follows (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Rental Payments for Operating Leases |
The following table provides the future scheduled minimum lease rental payments for operating leases as of March 31, 2022 (in thousands):
|
LESSEE ACCOUNTING (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
LESSEE ACCOUNTING [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Supplemental Information of Remaining Lease Terms and Discount Rates |
Supplemental information about the remaining lease terms and discount
rates applied as of March 31, 2022, and March 30, 2021, are as
follows:
|
||||||||||||||||||||||||||||||||||||||||
Future Lease Payments Under Operating Leases |
The following table provides our future lease payments under our operating leases as of
March 31, 2022 (in thousands):
|
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Goodwill |
The following table summarizes the changes in the carrying amount of goodwill for the years ended March 31, 2022, and March 31, 2021, respectively (in
thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Intangible Assets |
Our other intangible assets consist of the following as of March 31, 2022, and March 31, 2021 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Amortization Expense for Customer Relationships and Other Intangible assets | The following table
provides the future amortization expense for customer relationships and other intangible assets as of March 31, 2022 (in thousands):
|
ALLOWANCE FOR CREDIT LOSSES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in Reserves for Credit Losses |
The following table provides the activity in our allowance for credit losses for the years ended March 31, 2022, 2021 and 2020 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost Basis of Financing Receivables by Credit Quality Rating and Credit Origination Year |
The following table provides the
amortized cost basis of our financing receivables by CQR and by credit origination year as of March 31, 2022(in thousands):
The following table provides the amortized cost basis of our financing receivables by CQR and by credit origination year as of March 31, 2021 (in
thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aging Analysis of Financing Receivables |
The following table provides an aging analysis of our financing receivables as of March 31, 2022
(in thousands):
The following table provides an aging analysis of our financing receivables as of March 31, 2021 (in thousands):
Our financial assets on nonaccrual status were not significant as of March 31, 2022 and March 31, 2021.
|
PROPERTY AND EQUIPMENT-NET (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT-NET [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment-Net |
Property and equipment—net is a component of Property, equipment, and other assets. Our balance consists of the following (in thousands):
|
NOTES PAYABLE AND CREDIT FACILITY (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE AND CREDIT FACILITY [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recourse and Non-recourse Notes Payable |
Our recourse and non-recourse notes payable as of March 31, 2022 mature as follows:
|
EARNINGS PER SHARE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Numerators and Denominators Used to Calculate Basic and Diluted Earnings per Common Share |
The following table provides a reconciliation of the numerators and denominators used to calculate basic and diluted net earnings per common share as
disclosed in our consolidated statements of operations for the fiscal years ended March 31, 2022, 2021 and 2020 (in thousands, except
per share data):
|
SHARE-BASED COMPENSATION (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Grants |
A summary of the non-vested restricted shares for year ended March 31, 2022, reflecting the stock split, is as follows:
|
INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Income Taxes to Statutory Federal Income Tax Rate |
A reconciliation of income taxes computed at the statutory federal income tax rate of 21.0% to the provision for income taxes included in the
consolidated statements of operations is as follows (in thousands, except percentages):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Provision for Income Taxes |
The components of the provision for income taxes are as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities were as follows (in thousands):
|
FAIR VALUE MEASUREMENTS (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy of Financial Instruments |
The following table provides the fair value of our assets and liabilities measured at fair
value as categorized within the fair value hierarchy as of March 31, 2022, and March 31, 2021 (in thousands):
|
BUSINESS COMBINATIONS (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Systems Management Planning (SMP) [Member] | ||||||||||||||||||||||||||||||||||||||||||||||
Business Combination [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed | Our allocation of
the purchase consideration to the assets acquired and liabilities assumed is presented below (in thousands):
|
SEGMENT REPORTING (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information, by Reportable Segment |
Our reportable segment information was as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Technology Segment Disaggregation of Revenue |
We analyze net sales for our technology segment by customer end market and by vendor, as opposed to discrete product and service categories, which are
summarized below (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Geographical Information |
The geographic information for the years ended March 31, 2022, 2021, and 2020 was as follows (in thousands):
|
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Software Development Costs, Vendor Consideration (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Mar. 31, 2021 |
Mar. 31, 2020 |
---|---|---|---|
CAPITALIZATION OF COSTS OF SOFTWARE FOR INTERNAL USE [Abstract] | |||
Intangible assets | $ 27,250 | $ 38,614 | |
VENDOR CONSIDERATION [Abstract] | |||
Amount due from vendors | 12,900 | 18,200 | |
Software Capitalized for Internal [Member] | |||
CAPITALIZATION OF COSTS OF SOFTWARE FOR INTERNAL USE [Abstract] | |||
Intangible assets | 0 | 200 | $ 200 |
Other assets | $ 2,100 | $ 3,400 |
GOODWILL AND OTHER INTANGIBLE ASSETS, Goodwill (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Mar. 31, 2022
USD ($)
Unit
|
Mar. 31, 2021
USD ($)
Unit
|
|
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | $ 135,318 | $ 126,770 |
Goodwill, Impairment Loss, Beginning Balance | (8,673) | (8,673) |
Goodwill, Net Carrying Amount, Beginning Balance | 126,645 | 118,097 |
Acquisitions | 0 | 8,328 |
Foreign currency translations | (102) | 220 |
Goodwill, Ending Balance | 135,216 | 135,318 |
Goodwill, Impairment Loss, Ending Balance | (8,673) | (8,673) |
Goodwill, Net Carrying Amount, Ending Balance | $ 126,543 | $ 126,645 |
Number of reporting units | Unit | 1 | 1 |
Percentage change in the fair value | 10.00% |
ALLOWANCE FOR CREDIT LOSSES, Activity (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Activity in reserves for credit losses [Roll Forward] | |||
Balance | $ 4,447 | $ 3,189 | $ 2,614 |
Provision for credit losses | (102) | 1,436 | 1,004 |
Write-offs and other | (545) | (178) | (429) |
Balance | 3,800 | 4,447 | 3,189 |
Accounts Receivable [Member] | |||
Activity in reserves for credit losses [Roll Forward] | |||
Balance | 2,064 | 1,781 | 1,579 |
Provision for credit losses | 482 | 367 | 627 |
Write-offs and other | (135) | (84) | (425) |
Balance | 2,411 | 2,064 | 1,781 |
Notes Receivable [Member] | |||
Activity in reserves for credit losses [Roll Forward] | |||
Balance | 1,212 | 798 | 505 |
Provision for credit losses | (312) | 503 | 293 |
Write-offs and other | (192) | (89) | 0 |
Balance | 708 | 1,212 | 798 |
Lease Receivables [Member] | |||
Activity in reserves for credit losses [Roll Forward] | |||
Balance | 1,171 | 610 | 530 |
Provision for credit losses | (272) | 566 | 84 |
Write-offs and other | (218) | (5) | (4) |
Balance | $ 681 | $ 1,171 | $ 610 |
PROPERTY AND EQUIPMENT-NET (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Property and equipment - net [Abstract] | |||
Total assets | $ 40,553 | $ 38,229 | |
Accumulated depreciation and amortization | (32,642) | (30,841) | |
Property and equipment - net | 7,911 | 7,388 | |
Depreciation expense on property and equipment | 5,400 | 5,400 | $ 4,800 |
Furniture, Fixtures and Equipment [Member] | |||
Property and equipment - net [Abstract] | |||
Total assets | 28,640 | 26,612 | |
Leasehold Improvements [Member] | |||
Property and equipment - net [Abstract] | |||
Total assets | 7,615 | 6,918 | |
Capitalized Software [Member] | |||
Property and equipment - net [Abstract] | |||
Total assets | 3,822 | 4,153 | |
Vehicles [Member] | |||
Property and equipment - net [Abstract] | |||
Total assets | $ 476 | $ 546 |
EARNINGS PER SHARE, Calculation of Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Earnings Per Share, Basic and Diluted [Abstract] | |||
Net earnings attributable to common shareholders - basic and diluted | $ 105,600 | $ 74,397 | $ 69,082 |
Basic and diluted common shares outstanding [Abstract] | |||
Weighted average common shares outstanding - basic (in shares) | 26,638 | 26,674 | 26,654 |
Effect of dilutive shares (in shares) | 228 | 160 | 176 |
Weighted average shares common outstanding - diluted (in shares) | 26,866 | 26,834 | 26,830 |
Earnings per common share - basic (in dollars per share) | $ 3.96 | $ 2.79 | $ 2.59 |
Earnings per common share - diluted (in dollars per share) | $ 3.93 | $ 2.77 | $ 2.57 |
STOCKHOLDERS' EQUITY, Stock Split and Treasury Stock (Details) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 13, 2021 |
Nov. 10, 2021
USD ($)
shares
|
Nov. 09, 2021 |
Mar. 31, 2022
USD ($)
|
|
Stock Split and Treasury Stock [Abstract] | ||||
Stock split, conversion ratio | 2 | 2 | ||
Dividend payable, date to be paid | Dec. 13, 2021 | |||
Dividend payable, date of record | Nov. 29, 2021 | |||
Retirement of treasury stock | $ 0 | |||
Treasury Stock [Member] | ||||
Stock Split and Treasury Stock [Abstract] | ||||
Treasury stock shares retired (in shares) | shares | 2,139,918 | |||
Retirement of treasury stock | $ (82,246) | |||
Common Stock and Retained Earnings [Member] | ||||
Stock Split and Treasury Stock [Abstract] | ||||
Retirement of treasury stock | $ 82,200 |
STOCKHOLDERS' EQUITY, Share Repurchase Plan (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Mar. 24, 2022 |
Mar. 18, 2021 |
May 20, 2020 |
|
Share Repurchase Plan [Abstract] | |||||
Authorized number of shares under stock repurchase program (in shares) | 1,000,000 | 1,000,000 | 1,000,000 | ||
Common stock repurchased during the period (in shares) | 227,990 | 118,202 | |||
Average cost of share repurchased (in dollars per share) | $ 48.48 | $ 35.92 | |||
Common stock repurchased during the period | $ 11.1 | $ 4.2 | |||
Shares repurchased to satisfy tax withholding obligation (in shares) | 55,430 | 75,280 | |||
Value of shares repurchased to satisfy tax withholding obligation | $ 2.6 | $ 2.7 |
SHARE-BASED COMPENSATION, Director and Employee LTIP (Details) |
12 Months Ended |
---|---|
Mar. 31, 2022
shares
| |
2021 Employee LTIP [Member] | |
Share-Based Plans [Abstract] | |
Number of shares authorized (in shares) | 3,000,000 |
2012 Employee LTIP [Member] | |
Share-Based Plans [Abstract] | |
Number of shares authorized (in shares) | 3,000,000 |
2017 Director LTIP [Member] | |
Share-Based Plans [Abstract] | |
Number of shares authorized (in shares) | 300,000 |
2017 Director LTIP [Member] | Tranche One [Member] | |
Share-Based Plans [Abstract] | |
Shares vesting period | 1 year |
Shares vesting percentage | 50.00% |
2017 Director LTIP [Member] | Tranche Two [Member] | |
Share-Based Plans [Abstract] | |
Shares vesting period | 2 years |
Shares vesting percentage | 50.00% |
SHARE-BASED COMPENSATION, Compensation Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Compensation Expense [Abstract] | |||
Total share-based compensation expense | $ 7,114 | $ 7,169 | $ 7,954 |
Recognized tax benefit | 2,000 | 2,200 | 2,200 |
401 (k) Profit Sharing Plan [Abstract] | |||
Contribution to profit sharing plan | 3,400 | $ 3,000 | $ 2,800 |
Restricted Stock [Member] | |||
Compensation Expense [Abstract] | |||
Unrecognized compensation expense | $ 8,700 | ||
Unrecognized compensation expense, period for recognition | 27 months |
INCOME TAXES, Reconciliation of Income taxes Computed at the Statutory Federal Income Tax Rate to Provision for Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Reconciliation of income taxes to the statutory rate [Abstract] | |||
Income tax expense computed at the U.S. statutory federal rate | $ 30,845 | $ 22,450 | $ 20,182 |
State income tax expense - net of federal benefit | 8,937 | 6,941 | 5,659 |
Non-deductible executive compensation | 1,749 | 2,052 | 613 |
Other | (247) | 1,066 | 423 |
Provision for income taxes | $ 41,284 | $ 32,509 | $ 26,877 |
Effective income tax rate | 28.10% | 30.40% | 28.00% |
INCOME TAXES, Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Current [Abstract] | |||
Federal | $ 32,309 | $ 26,054 | $ 19,367 |
State | 11,681 | 9,882 | 9,520 |
Foreign | 894 | 770 | 200 |
Total current expense | 44,884 | 36,706 | 29,087 |
Deferred [Abstract] | |||
Federal | (3,289) | (3,067) | (492) |
State | (370) | (1,096) | (1,799) |
Foreign | 59 | (34) | 81 |
Total deferred benefit | (3,600) | (4,197) | (2,210) |
Provision for income taxes | $ 41,284 | $ 32,509 | $ 26,877 |
INCOME TAXES, Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Mar. 31, 2021 |
---|---|---|
Deferred tax assets [Abstract] | ||
Accrued vacation | $ 2,391 | $ 2,537 |
Deferred revenue | 5,090 | 4,227 |
Allowance for credit losses | 951 | 1,048 |
Restricted stock | 616 | 772 |
Other deferred tax assets | 743 | 1,552 |
Accrued bonus | 2,532 | 2,277 |
Lease liabilities | 1,857 | 2,476 |
Other credits and carryforwards | 249 | 0 |
Gross deferred tax assets | 14,429 | 14,889 |
Less: valuation allowance | (250) | 0 |
Net deferred tax assets | 14,179 | 14,889 |
Deferred tax liabilities [Abstract] | ||
Property and equipment | (2,295) | (2,391) |
Operating leases | (2,759) | (6,948) |
Prepaid expenses | (887) | (912) |
Right-of-use assets | (1,869) | (2,419) |
Tax deductible goodwill | (1,319) | (751) |
Total deferred tax liabilities | (9,129) | (13,421) |
Net deferred tax asset | $ 5,050 | $ 1,468 |
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Mar. 31, 2021 |
---|---|---|
Assets [Abstract] | ||
Money market funds | $ 18,138 | $ 45,134 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Money market funds | 18,138 | 45,134 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Money market funds | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Money market funds | $ 0 | $ 0 |
SEGMENT REPORTING, Geographic Information (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Net Sales [Abstract] | |||
Net sales | $ 1,821,019 | $ 1,568,323 | $ 1,588,404 |
Long-lived Tangible Assets [Abstract] | |||
Long-lived tangible assets | 22,553 | 34,435 | |
U.S. [Member] | |||
Net Sales [Abstract] | |||
Net sales | 1,716,525 | 1,476,466 | 1,508,329 |
Long-lived Tangible Assets [Abstract] | |||
Long-lived tangible assets | 21,837 | 33,504 | |
Non U.S [Member] | |||
Net Sales [Abstract] | |||
Net sales | 104,494 | 91,857 | $ 80,075 |
Long-lived Tangible Assets [Abstract] | |||
Long-lived tangible assets | $ 716 | $ 931 |
SEGMENT REPORTING, Concentration Risk (Details) |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Revenue [Member] | Customer Concentration Risk [Member] | Verizon Communications Inc. [Member] | Technology Segment [Member] | |||
Concentration of Risk [Abstract] | |||
Percentage of concentration risk | 24.00% | 19.00% | 15.00% |
9AHE-:HI0U6Y<
MH7RRQ^6=]-Q>]\2MH;+F3G$C'@]&]Z2?A9&&"5]?:PX<^6R_;H^G0:]AKXE:
M9Z>X'^^8ZNI?0_CP>G(WGL^OR<\LV?Q*YG@R_79#*98G#6Y2GNR3LX,^LR
MV:H$Q"5N@@EGL/Q[C(RA1 SCLAY/<4?><8TBF9#QL!(+5Z!^%4AG;U_<.^
M?4&1P*Q8MUODY=7R&T8_W[GOV-NW'T!NF'E?16*^A%#G^!3ZMMQ^4]B>:+')
M=]D70FN1Y(=KSD(NS0WP^U((O3LQ#RB_[%S^ U!+ P04 " !KE+E4B!"=
M6&D' ".'@ & 'AL+W=OA(RZX=EJD)5H
MR3<99%CK09))2 SMF'$T8[4CD*L<