|
|
|
||
(State or other jurisdiction of incorporation or organization)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Exhibit No.
|
Description
|
99.1
|
Press release dated August 4, 2021, issued by ePlus inc.
|
ePlus inc.
|
||||
By: /s/ Elaine D. Marion
|
||||
Elaine D. Marion
|
||||
Chief Financial Officer
|
Quarterly Highlights:
|
|
•
|
Net sales increased 17.4% to $416.6 million
|
o Technology segment net sales increased
17.3% to $400.4 million which includes service revenues growth of 16.3% to $55.6 million.
|
|
o Financing segment net sales increased
18.0% to $16.3 million.
|
|
•
|
Adjusted gross billings increased 15.9% to $633.0 million.
|
•
|
Consolidated gross profit increased 7.1% to $105.5 million.
|
•
|
Consolidated gross margin was 25.3%, down from 27.8%.
|
•
|
Net earnings increased 35.5% to $23.5 million.
|
•
|
Adjusted EBITDA increased 24.6% to $38.3 million.
|
•
|
Diluted earnings per share increased 34.6% to $1.75.
|
•
|
Non-GAAP diluted earnings per share increased 29.8% to $1.96.
|
•
|
In the month of June:
|
|
o
|
Ranked in the top 10 percent of North American IT Channel Partners in the 2021 Solution Provider 500 List published by CRN®, a brand of
The Channel Company.
|
|
•
|
In the month of May:
|
|
o
|
Achieved the Amazon Web Service (AWS) Service Delivery designation for Amazon Elastic Compute Service (Amazon EC2) for Windows
Server, recognizing that ePlus follows best practices and has proven success delivering AWS services to customers.
|
Audio Webcast (Live & Replay):
https://event.on24.com/wcc/r/3193229/A447EAEC7F5B6CBE73AC03CA87F9A652:
|
|
Live Call:
|
(833) 714-0957 (toll-free/domestic)
(778) 560-2893 (international)
|
Replay:
|
(800) 585-8367 (toll-free/domestic)
(416) 621-4642 (international)
|
Passcode:
|
3959877 (live call and replay)
|
ePlus inc. AND SUBSIDIARIES
|
||||
UNAUDITED CONSOLIDATED BALANCE SHEETS
|
||||
(in thousands, except per share amounts)
|
||||
June 30, 2021
|
March 31, 2021
|
|||
ASSETS
|
||||
Current assets:
|
||||
Cash and cash equivalents
|
$93,840
|
$129,562
|
||
Accounts receivable—trade, net
|
465,424
|
391,567
|
||
Accounts receivable—other, net
|
|
33,979
|
41,053
|
|
Inventories
|
77,752
|
69,963
|
||
Financing receivables—net, current
|
|
63,082
|
106,272
|
|
Deferred costs
|
|
27,812
|
28,201
|
|
Other current assets
|
|
12,309
|
10,976
|
|
Total current assets
|
|
774,198
|
777,594
|
|
|
|
|||
Financing receivables and operating leases—net
|
98,277
|
90,165
|
||
Deferred tax asset—net
|
1,468
|
1,468
|
||
Property, equipment and other assets
|
41,282
|
42,289
|
||
Goodwill
|
126,651
|
126,645
|
||
Other intangible assets—net
|
|
35,540
|
38,614
|
|
TOTAL ASSETS
|
$1,077,416
|
$1,076,775
|
||
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||
LIABILITIES
|
||||
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$149,685
|
$165,162
|
|
Accounts payable—floor plan
|
139,574
|
98,653
|
||
Salaries and commissions payable
|
31,758
|
36,839
|
||
Deferred revenue
|
|
76,821
|
72,802
|
|
Recourse notes payable—current
|
5,997
|
5,450
|
||
Non-recourse notes payable—current
|
|
12,700
|
50,397
|
|
Other current liabilities
|
29,870
|
30,061
|
||
Total current liabilities
|
|
446,405
|
459,364
|
|
|
|
|||
Recourse notes payable—long term
|
11,016
|
12,658
|
||
Non-recourse notes payable—long term
|
2,587
|
5,664
|
||
Other liabilities
|
|
33,789
|
36,679
|
|
TOTAL LIABILITIES
|
493,797
|
514,365
|
||
|
|
|||
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|||
STOCKHOLDERS' EQUITY
|
|
|
||
Preferred stock, $.01 per share par value; 2,000 shares authorized;
none outstanding
|
-
|
|
-
|
|
Common stock, $.01 per share par value; 25,000 shares
authorized; 13,536
outstanding at June 30, 2021 and
13,503
outstanding at March 31, 2021
|
146
|
145
|
||
Additional paid-in capital
|
154,101
|
152,366
|
||
Treasury stock, at cost, 1,038 shares at June 30, 2021 and
993 shares at March 31, 2021
|
(79,483) | (75,372) | ||
Retained earnings
|
508,134
|
484,616
|
||
Accumulated other comprehensive income—foreign currency
translation adjustment
|
721
|
655
|
||
Total Stockholders' Equity
|
583,619
|
562,410
|
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$1,077,416
|
$1,076,775
|
ePlus inc. AND SUBSIDIARIES
|
|||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|||
(in thousands, except per share amounts)
|
|||
Three Months Ended June 30,
|
|||
2021
|
2020
|
||
Net sales
|
|||
Product
|
$361,057
|
$307,240
|
|
Services
|
55,592
|
47,791
|
|
Total
|
416,649
|
355,031
|
|
Cost of sales
|
|||
Product
|
277,227
|
226,634
|
|
Services
|
33,910
|
29,840
|
|
Total
|
311,137
|
256,474
|
|
Gross profit
|
105,512
|
98,557
|
|
Selling, general, and administrative
|
68,775
|
69,467
|
|
Depreciation and amortization
|
3,926
|
3,516
|
|
Interest and financing costs
|
359
|
577
|
|
Operating expenses
|
73,060
|
73,560
|
|
Operating income
|
32,452
|
24,997
|
|
|
|||
Other income
|
123
|
98
|
|
Earnings before taxes
|
32,575
|
25,095
|
|
Provision for income taxes
|
9,057
|
7,735
|
|
Net earnings
|
$23,518
|
$17,360
|
|
|
|||
Net earnings per common share—basic
|
$1.76
|
$1.30
|
|
Net earnings per common share—diluted
|
$1.75
|
$1.30
|
|
|
|
|
|
Weighted average common shares outstanding—basic
|
13,333
|
13,322
|
|
Weighted average common shares outstanding—diluted
|
13,441
|
13,388
|
Technology Segment
|
|||||
Three Months Ended June 30,
|
|||||
2021
|
2020
|
Change
|
|||
(in thousands)
|
|||||
Net sales
|
|||||
Product
|
$344,766
|
$293,433
|
17.5%
|
||
Services
|
55,592
|
47,791
|
16.3%
|
||
Total
|
400,358
|
341,224
|
17.3%
|
||
Cost of sales
|
|||||
Product
|
271,015
|
224,543
|
20.7%
|
||
Services
|
33,910
|
29,840
|
13.6%
|
||
Total
|
304,925
|
254,383
|
19.9%
|
||
Gross profit
|
95,433
|
86,841
|
9.9%
|
||
Selling, general, and administrative
|
66,153
|
65,556
|
0.9%
|
||
Depreciation and amortization
|
3,898
|
3,488
|
11.8%
|
||
Interest and financing costs
|
159
|
265
|
(40.0%)
|
||
Operating expenses
|
70,210
|
69,309
|
1.3%
|
||
Operating income
|
$25,223
|
$17,532
|
43.9%
|
||
Adjusted gross billings
|
$633,007
|
$546,394
|
15.9%
|
||
Adjusted EBITDA
|
$30,958
|
$23,161
|
33.7%
|
Technology Segment Net Sales by Customer End Market
|
|||||
Twelve Months Ended June 30,
|
|||||
2021
|
2020
|
Change
|
|||
Telecom, Media & Entertainment
|
27%
|
19%
|
8%
|
||
Technology
|
16%
|
21%
|
(5%)
|
||
SLED
|
15%
|
16%
|
(1%)
|
||
Healthcare
|
14%
|
15%
|
(1%)
|
||
Financial Services
|
12%
|
13%
|
(1%)
|
||
All Others
|
16%
|
16%
|
-
|
||
Total
|
100%
|
100%
|
Financing Segment
|
|||||
Three Months Ended June 30,
|
|||||
2021
|
2020
|
Change
|
|||
(in thousands)
|
|||||
Net sales
|
$16,291
|
$13,807
|
18.0%
|
||
Cost of sales
|
6,212
|
2,091
|
197.1%
|
||
Gross profit
|
10,079
|
11,716
|
(14.0%)
|
||
Selling, general, and administrative
|
2,622
|
3,911
|
(33.0%)
|
||
Depreciation and amortization
|
28
|
28
|
0.0%
|
||
Interest and financing costs
|
200
|
312
|
(35.9%)
|
||
Operating expenses
|
2,850
|
4,251
|
(33.0%)
|
||
Operating income
|
$7,229
|
$7,465
|
(3.2%)
|
||
Adjusted EBITDA
|
$7,314
|
$7,553
|
(3.2%)
|
Three Months Ended June 30,
|
|||
|
2021
|
2020
|
|
(in thousands)
|
|||
Technology segment net sales
|
$400,358
|
$341,224
|
|
Costs incurred related to sales of third-party maintenance, software assurance and subscription / SaaS licenses, and services
|
232,649
|
205,170
|
|
Adjusted gross billings
|
$633,007
|
$546,394
|
Three Months Ended June 30,
|
|||
|
2021
|
2020
|
|
(in thousands)
|
|||
Consolidated
|
|||
Net earnings
|
$23,518
|
$17,360
|
|
Provision for income taxes
|
9,057
|
7,735
|
|
Depreciation and amortization [1]
|
3,926
|
3,516
|
|
Share based compensation
|
1,735
|
1,907
|
|
Acquisition and integration expense
|
-
|
29
|
|
Interest and financing costs
|
159
|
265
|
|
Other income [2]
|
(123)
|
(98)
|
|
Adjusted EBITDA
|
$38,272
|
$30,714
|
|
Three Months Ended June 30,
|
|||
|
2021
|
2020
|
|
(in thousands)
|
|||
Technology Segment
|
|||
Operating income
|
$25,223
|
$17,532
|
|
Depreciation and amortization [1]
|
3,898
|
3,488
|
|
Share based compensation
|
1,678
|
1,847
|
|
Acquisition and integration expense
|
-
|
29
|
|
Interest and financing costs
|
159
|
265
|
|
Adjusted EBITDA
|
$30,958
|
$23,161
|
|
Financing Segment
|
|||
Operating income
|
$7,229
|
$7,465
|
|
Depreciation and amortization [1]
|
28
|
28
|
|
Share based compensation
|
57
|
60
|
|
Adjusted EBITDA
|
$7,314
|
$7,553
|
|
Three Months Ended June 30,
|
|||
2021
|
2020
|
||
(in thousands)
|
|||
GAAP: Earnings before taxes
|
$32,575
|
$25,095
|
|
Share based compensation
|
1,735
|
1,907
|
|
Acquisition and integration expense
|
-
|
29
|
|
Acquisition related amortization expense [3]
|
2,696
|
2,228
|
|
Other income [2]
|
(123)
|
(98)
|
|
Non-GAAP: Earnings before taxes
|
36,883
|
29,161
|
|
GAAP: Provision for income taxes
|
9,057
|
7,735
|
|
Share based compensation
|
496
|
587
|
|
Acquisition and integration expense
|
-
|
9
|
|
Acquisition related amortization expense [3]
|
757
|
667
|
|
Other (income) expense [2]
|
(35)
|
(30)
|
|
Tax benefit on restricted stock
|
255
|
(14)
|
|
Non-GAAP: Provision for income taxes
|
10,530
|
8,954
|
|
Non-GAAP: Net earnings
|
$26,353
|
$20,207
|
|
Three Months Ended June 30,
|
|||
2021
|
2020
|
||
GAAP: Net earnings per common share – diluted
|
$1.75
|
$1.30
|
|
Share based compensation
|
0.09
|
0.10
|
|
Acquisition related amortization expense [3]
|
0.15
|
0.12
|
|
Other income [2]
|
(0.01)
|
(0.01)
|
|
Tax benefit from share based compensation
|
(0.02)
|
-
|
|
Total non-GAAP adjustments – net of tax
|
0.21
|
0.21
|
|
Non-GAAP: Net earnings per common share – diluted
|
$1.96
|
$1.51
|
[1] Amount consists of depreciation and amortization for assets used internally.
|
[2] Interest income and foreign currency transaction gains and losses.
|
[3] Amount consists of amortization of intangible assets from acquired businesses.
|
Document and Entity Information |
Aug. 04, 2021 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Aug. 04, 2021 |
Entity Registrant Name | ePlus inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-34167 |
Entity Tax Identification Number | 54-1817218 |
Entity Address, Address Line One | 13595 Dulles Technology Drive |
Entity Address, City or Town | Herndon |
Entity Address, State or Province | VA |
Entity Address, Postal Zip Code | 20171-3413 |
City Area Code | 703 |
Local Phone Number | 984-8400 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001022408 |
Title of 12(b) Security | Common Stock, $.01 par value |
Trading Symbol | PLUS |
Security Exchange Name | NASDAQ |
-8?20$3;
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