Delaware
|
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001-34167
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54-1817218
|
(State or other jurisdiction
of incorporation) |
|
(Commission
File Number) |
|
(IRS Employer
Identification No.) |
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $.01 par value |
PLUS |
Nasdaq Global Market Select |
Exhibit No.
|
Description
|
99.1
|
Press release dated May 22, 2024, issued by ePlus inc.
|
104 |
Cover Page Interactive Date File (embedded within the Inline XBRL document) |
|
|
ePlus inc.
|
|
|
|
|
|
|
|
|
|
By: /s/ Elaine D. Marion
|
|
|
|
|
Elaine D. Marion
|
|
|
|
|
Chief Financial Officer
|
|
|
Fourth Quarter Fiscal Year 2024
|
|
•
|
Net sales increased 12.7% to $554.5 million from last year’s fourth quarter; technology business net sales increased 12.6% to $544.1 million; services
revenues increased 14.8% to $78.9 million.
|
•
|
Technology business gross billings increased 13.8% to $834.3 million.
|
•
|
Consolidated gross profit decreased 1.5% to $130.3 million.
|
•
|
Consolidated gross margin was 23.5%, lower than last year’s 26.9%.
|
•
|
Net earnings decreased 33.1% to $22.0 million.
|
•
|
Adjusted EBITDA decreased 24.4% to $36.8 million.
|
•
|
Diluted net earnings per common share decreased 33.3% to $0.82. Non-GAAP diluted net earnings per common share decreased 31.6% to $0.93.
|
Fiscal Year 2024
|
|
•
|
Net sales increased 7.6% to $2,225.3 million; technology business net sales increased 8.0% to $2,175.9 million; services revenues increased 10.4% to
$292.1 million.
|
•
|
Technology business gross billings increased 5.8% to $3,329.8 million.
|
•
|
Consolidated gross profit increased 6.4% to $550.8 million.
|
•
|
Consolidated gross margin was 24.8%, compared with 25.0% last year.
|
•
|
Net earnings decreased 3.0% to $115.8 million.
|
•
|
Adjusted EBITDA decreased 0.1% to $190.4 million.
|
•
|
Diluted net earnings per common share decreased 3.3% to $4.33. Non-GAAP diluted net earnings per common share decreased 2.0% to $4.92.
|
•
|
In the month of May:
|
|
o
|
Honored as Growth Partner of the Year by Varonis
|
|
•
|
In the month of April:
|
|
o
|
Achieved AWS Migration Competency Status
|
|
•
|
In the month of March:
|
|
o
|
Placed on CRN’s 2024 MSP 500 Elite 150 and Tech Elite 250 Lists
|
|
o
|
Named F5’s North America 2023 Strategic Solutions Partner of the Year
|
|
•
|
In the month of February:
|
|
o
|
Announces AI Ignite: Artificial Intelligence Assessment, Enablement and Implementation Offerings
|
|
•
|
In the month of January:
|
|
o
|
ePlus Acquires Peak Resources
|
|
o
|
ePlus Joins US Chamber of Commerce
|
Date:
|
May 22, 2024
|
Time:
|
4:30 p.m. ET
|
Audio Webcast (Live & Replay
|
https://events.q4inc.com/attendee/690482659
|
Live Call:
|
(888) 596-4144 (too-free/domestic)
|
(646) 968-2525 (international)
|
|
Archived Call:
|
(800) 770-2030 (toll-free/domestic)
|
(609) 800-9909 (international)
|
|
Conference ID:
|
6354397# (live call and replay)
|
ePlus inc. AND SUBSIDIARIES
|
||||
CONSOLIDATED BALANCE SHEETS
|
||||
(in thousands, except per share amounts)
|
||||
March 31, 2024
|
March 31, 2023
|
|||
ASSETS
|
||||
Current assets:
|
||||
Cash and cash equivalents
|
$253,021
|
$103,093
|
||
Accounts receivable—trade, net
|
644,616
|
504,122
|
||
Accounts receivable—other, net
|
|
46,884
|
55,508
|
|
Inventories
|
139,690
|
243,286
|
||
Financing receivables—net, current
|
|
102,600
|
89,829
|
|
Deferred costs
|
|
59,449
|
44,191
|
|
Other current assets
|
|
27,269
|
55,101
|
|
Total current assets
|
|
1,273,529
|
1,095,130
|
|
|
|
|||
Financing receivables and operating leases—net
|
79,435
|
84,417
|
||
Deferred tax asset
|
5,620
|
3,682
|
||
Property, equipment and other assets
|
89,289
|
70,447
|
||
Goodwill
|
161,503
|
136,105
|
||
Other intangible assets—net
|
|
44,093
|
25,045
|
|
TOTAL ASSETS
|
$1,653,469
|
$1,414,826
|
||
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||
LIABILITIES
|
||||
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$315,676
|
$220,159
|
|
Accounts payable—floor plan
|
105,104
|
134,615
|
||
Salaries and commissions payable
|
43,696
|
37,336
|
||
Deferred revenue
|
|
134,596
|
114,028
|
|
Recourse notes payable—current
|
-
|
5,997
|
||
Non-recourse notes payable—current
|
|
23,288
|
24,819
|
|
Other current liabilities
|
34,630
|
24,372
|
||
Total current liabilities
|
|
656,990
|
561,326
|
|
|
|
|||
Non-recourse notes payable—long-term
|
12,901
|
9,522
|
||
Deferred tax liability
|
-
|
715
|
||
Other liabilities
|
|
81,799
|
60,998
|
|
TOTAL LIABILITIES
|
751,690
|
632,561
|
||
|
|
|||
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|||
STOCKHOLDERS' EQUITY
|
|
|
||
Preferred stock, $0.01 per share par value; 2,000 shares
authorized; none outstanding
|
-
|
|
-
|
|
Common stock, $0.01 per share par value; 50,000 shares
authorized; 26,952 outstanding at March 31, 2024 and 26,905
outstanding at March 31, 2023
|
274
|
272
|
||
Additional paid-in capital
|
180,058
|
167,303
|
||
Treasury stock, at cost, 447 shares at March 31, 2024 and
261 shares at March 31, 2023
|
(23,811) | (14,080) | ||
Retained earnings
|
742,978
|
627,202
|
||
Accumulated other comprehensive income—foreign currency
translation adjustment
|
2,280
|
1,568
|
||
Total Stockholders' Equity
|
|
901,779
|
782,265
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$1,653,469
|
$1,414,826
|
ePlus inc. AND SUBSIDIARIES
|
|||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|||||||
(in thousands, except per share amounts)
|
|||||||
Three Months Ended March 31,
|
Year Ended March 31,
|
||||||
2024
|
2023
|
2024
|
2023
|
||||
Net sales
|
|
||||||
Product
|
$475,589
|
$423,462
|
$1,933,225
|
$1,803,275
|
|||
Services
|
78,872
|
68,715
|
292,077
|
264,443
|
|||
Total
|
554,461
|
492,177
|
2,225,302
|
2,067,718
|
|||
Cost of sales
|
|||||||
Product
|
377,247
|
317,148
|
1,493,293
|
1,379,500
|
|||
Services
|
46,869
|
42,704
|
181,216
|
170,694
|
|||
Total
|
424,116
|
359,852
|
1,674,509
|
1,550,194
|
|||
Gross profit
|
130,345
|
132,325
|
550,793
|
517,524
|
|||
Selling, general, and administrative
|
95,403
|
85,319
|
367,734
|
333,520
|
|||
Depreciation and amortization
|
5,204
|
3,322
|
21,025
|
13,709
|
|||
Interest and financing costs
|
723
|
1,270
|
3,777
|
4,133
|
|||
Operating expenses
|
101,330
|
89,911
|
392,536
|
351,362
|
|||
Operating income
|
29,015
|
42,414
|
158,257
|
166,162
|
|||
Other income (expense), net
|
2,163
|
(76)
|
2,836
|
(3,188)
|
|||
Earnings before taxes
|
31,178
|
42,338
|
161,093
|
162,974
|
|||
Provision for income taxes
|
9,195
|
9,484
|
45,317
|
43,618
|
|||
Net earnings
|
$21,983
|
$32,854
|
$115,776
|
$119,356
|
|||
Net earnings per common share—basic
|
$0.83
|
$1.24
|
$4.35
|
$4.49
|
|||
Net earnings per common share—diluted
|
$0.82
|
$1.23
|
$4.33
|
$4.48
|
|||
|
|
|
|
|
|
||
Weighted average common shares outstanding—basic
|
26,644
|
26,593
|
26,610
|
26,569
|
|||
Weighted average common shares outstanding—diluted
|
26,806
|
26,702
|
26,717
|
26,654
|
Technology Business
|
|||||||||||
Three Months Ended March 31,
|
Year Ended March 31,
|
||||||||||
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
||||||
(in thousands)
|
(in thousands)
|
||||||||||
Net sales
|
|||||||||||
Product
|
$465,228
|
$414,493
|
12.2%
|
$1,883,809
|
$1,750,802
|
7.6%
|
|||||
Professional services
|
40,679
|
37,416
|
8.7%
|
154,549
|
151,785
|
1.8%
|
|||||
Managed services
|
38,193
|
31,299
|
22.0%
|
137,528
|
112,658
|
22.1%
|
|||||
Total
|
544,100
|
483,208
|
12.6%
|
2,175,886
|
2,015,245
|
8.0%
|
|||||
Gross profit
|
|||||||||||
Product
|
89,559
|
98,699
|
(9.3%)
|
397,618
|
380,741
|
4.4%
|
|||||
Professional services
|
20,342
|
16,548
|
22.9%
|
68,194
|
61,594
|
10.7%
|
|||||
Managed services
|
11,661
|
9,463
|
23.2%
|
42,667
|
32,155
|
32.7%
|
|||||
Total
|
121,562
|
124,710
|
(2.5%)
|
508,479
|
474,490
|
7.2%
|
|||||
Selling, general, and administrative
|
91,846
|
82,738
|
11.0%
|
353,540
|
317,885
|
11.2%
|
|||||
Depreciation and amortization
|
5,204
|
3,294
|
58.0%
|
20,951
|
13,598
|
54.1%
|
|||||
Interest and financing costs
|
-
|
780
|
(100.0%)
|
1,428
|
2,897
|
(50.7%)
|
|||||
Operating expenses
|
97,050
|
86,812
|
11.8%
|
375,919
|
334,380
|
12.4%
|
|||||
Operating income
|
$24,512
|
$37,898
|
(35.3%)
|
$132,560
|
$140,110
|
(5.4%)
|
|||||
Gross billings
|
$834,313
|
$733,085
|
13.8%
|
$3,329,764
|
$3,145,888
|
5.8%
|
|||||
Adjusted EBITDA
|
$32,239
|
$44,049
|
(26.8%)
|
$164,409
|
$164,184
|
0.1%
|
Technology Business Gross Billings by Type
|
|||||||||||
Three Months Ended March 31,
|
Year Ended March 31,
|
||||||||||
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
||||||
(in thousands)
|
(in thousands)
|
||||||||||
Networking
|
$332,636
|
$250,558
|
32.8%
|
$1,172,274
|
$927,319
|
26.4%
|
|||||
Cloud
|
183,008
|
184,228
|
(0.7%)
|
824,128
|
892,308
|
(7.6%)
|
|||||
Security
|
145,233
|
130,175
|
11.6%
|
625,392
|
639,416
|
(2.2%)
|
|||||
Collaboration
|
23,849
|
26,228
|
(9.1%)
|
120,960
|
127,027
|
(4.8%)
|
|||||
Other
|
58,634
|
77,145
|
(24.0%)
|
262,439
|
282,748
|
(7.2%)
|
|||||
Product gross billings
|
743,360
|
668,334
|
11.2%
|
3,005,193
|
2,868,818
|
4.8%
|
|||||
Service gross billings
|
90,953
|
64,751
|
40.5%
|
324,571
|
277,070
|
17.1%
|
|||||
Total gross billings
|
$834 313
|
$733,085
|
13.8%
|
$3,329,764
|
$3,145,888
|
5.8%
|
Technology Business Net Sales by Type
|
|||||||||||
Three Months Ended March 31,
|
Year Ended March 31,
|
||||||||||
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
||||||
(in thousands)
|
(in thousands)
|
||||||||||
Networking
|
$281,919
|
$219,367
|
28.5%
|
$1,005,679
|
$803,678
|
25.1%
|
|||||
Cloud
|
118,976
|
116,246
|
2.3%
|
546,341
|
587,097
|
(6.9%)
|
|||||
Security
|
37,452
|
40,836
|
(8.3%)
|
193,956
|
214,459
|
(9.6%)
|
|||||
Collaboration
|
12,067
|
11,900
|
1.4%
|
65,714
|
57,472
|
14.3%
|
|||||
Other
|
14,814
|
26,144
|
(43.3%)
|
72,119
|
88,096
|
(18.1%)
|
|||||
Total product
|
465,228
|
414,493
|
12.2%
|
1,883,809
|
1,750,802
|
7.6%
|
|||||
Professional services
|
40,679
|
37,416
|
8.7%
|
154,549
|
151,785
|
1.8%
|
|||||
Managed services
|
38,193
|
31,299
|
22.0%
|
137,528
|
112,658
|
22.1%
|
|||||
Total net sales
|
$544,100
|
$483,208
|
12.6%
|
$2,175,886
|
$2,015,245
|
8.0%
|
Technology Business Net Sales by Customer End Market
|
|||||||||||
Three Months Ended March 31,
|
Year Ended March 31,
|
||||||||||
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
||||||
(in thousands)
|
(in thousands)
|
||||||||||
Telecom, Media, & Entertainment
|
$142,333
|
$101,652
|
40.0%
|
$547,525
|
$532,921
|
2.7%
|
|||||
Technology
|
111,418
|
94,506
|
17.9%
|
379,720
|
393,594
|
(3.5%)
|
|||||
SLED
|
65,198
|
82,802
|
(21.3%)
|
329,617
|
290,624
|
13.4%
|
|||||
Healthcare
|
64,711
|
69,639
|
(7.1%)
|
278,893
|
274,936
|
1.4%
|
|||||
Financial Services
|
69,239
|
37,339
|
85.4%
|
243,630
|
156,257
|
55.9%
|
|||||
All other
|
91,201
|
97,270
|
(6.2%)
|
396,501
|
366,913
|
8.1%
|
|||||
Total net sales
|
$544,100
|
$483,208
|
12.6%
|
$2,175,886
|
$2,015,245
|
8.0%
|
Financing Business Segment
|
|||||||||||
Three Months Ended March 31,
|
Year Ended March 31,
|
||||||||||
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
||||||
(in thousands)
|
(in thousands)
|
||||||||||
Portfolio earnings
|
$3,824
|
$3,404
|
12.3%
|
$13,937
|
$11,356
|
22.7%
|
|||||
Transactional gains
|
2,681
|
1,000
|
168.1%
|
19,016
|
16,125
|
17.9%
|
|||||
Post-contract earnings
|
2,944
|
4,300
|
(31.5%)
|
14,301
|
23,581
|
(39.4%)
|
|||||
Other
|
912
|
265
|
244.2%
|
2,162
|
1,411
|
53.2%
|
|||||
Net sales
|
10,361
|
8,969
|
15.5%
|
49,416
|
52,473
|
(5.8%)
|
|||||
Gross profit
|
8,783
|
7,615
|
15.3%
|
42,314
|
43,034
|
(1.7%)
|
|||||
Selling, general, and administrative
|
3,557
|
2,581
|
37.8%
|
14,194
|
15,635
|
(9.2%)
|
|||||
Depreciation and amortization
|
-
|
28
|
(100.0%)
|
74
|
111
|
(33.3%)
|
|||||
Interest and financing costs
|
723
|
490
|
47.6%
|
2,349
|
1,236
|
90.0%
|
|||||
Operating expenses
|
4,280
|
3,099
|
38.1%
|
16,617
|
16,982
|
(2.1%)
|
|||||
Operating income
|
$4,503
|
$4,516
|
(0.3%)
|
$25,697
|
$26,052
|
(1.4%)
|
|||||
Adjusted EBITDA
|
$4,566
|
$4,610
|
(1.0%)
|
$26,032
|
$26,408
|
(1.4%)
|
Three Months Ended March 31,
|
Year Ended March 31,
|
||||||
2024
|
2023
|
2024
|
2023
|
||||
(in thousands)
|
|||||||
Consolidated
|
|||||||
Net earnings
|
$21,983
|
$32,854
|
$115,776
|
$119,356
|
|||
Provision for income taxes
|
9,195
|
9,484
|
45,317
|
43,618
|
|||
Depreciation and amortization [1]
|
5,204
|
3,322
|
21,025
|
13,709
|
|||
Share based compensation
|
2,586
|
2,143
|
9,731
|
7,824
|
|||
Interest and financing costs
|
-
|
780
|
1,428
|
2,897
|
|||
Other expense, net [2]
|
(2,163)
|
76
|
(2,836)
|
3,188
|
|||
Adjusted EBITDA
|
$36,805
|
$48,659
|
$190,441
|
$190,592
|
|||
Technology Business
|
|||||||
Operating income
|
$24,512
|
$37,898
|
$132,560
|
$140,110
|
|||
Depreciation and amortization [1]
|
5,204
|
3,294
|
20,951
|
13,598
|
|||
Share based compensation
|
2,523
|
2,077
|
9,470
|
7,579
|
|||
Interest and financing costs
|
-
|
780
|
1,428
|
2,897
|
|||
Adjusted EBITDA
|
$32,239
|
$44,049
|
$164,409
|
$164,184
|
|||
Financing Business Segment
|
|||||||
Operating income
|
$4,503
|
$4,516
|
$25,697
|
$26,052
|
|||
Depreciation and amortization [1]
|
-
|
28
|
74
|
111
|
|||
Share based compensation
|
63
|
66
|
261
|
245
|
|||
Adjusted EBITDA
|
$4,566
|
$4,610
|
$26,032
|
$26,408
|
|||
|
Three Months Ended March 31,
|
Year Ended March 31,
|
||||||
2024
|
2023
|
2024
|
2023
|
||||
(in thousands)
|
|||||||
GAAP: Earnings before taxes
|
$31,178
|
$42,338
|
$161,093
|
$162,974
|
|||
Share based compensation
|
2,586
|
2,143
|
9,731
|
7,824
|
|||
Acquisition related amortization expense [3]
|
3,832
|
2,229
|
15,180
|
9,411
|
|||
Other (income) expense [2]
|
(2,163)
|
76
|
(2,836)
|
3,188
|
|||
Non-GAAP: Earnings before provision for income taxes
|
35,433
|
46,786
|
183,168
|
183,397
|
|||
GAAP: Provision for income taxes
|
9,195
|
9,484
|
45,317
|
43,618
|
|||
Share based compensation
|
767
|
480
|
2,772
|
2,104
|
|||
Acquisition related amortization expense [3]
|
1,133
|
497
|
4,306
|
2,527
|
|||
Other (income) expense, net [2]
|
(641)
|
17
|
(831)
|
950
|
|||
Tax benefit (expense) on restricted stock
|
51
|
-
|
277
|
267
|
|||
Non-GAAP: Provision for income taxes
|
10,505
|
10,478
|
51,841
|
49,466
|
|||
Non-GAAP: Net earnings
|
$24,928
|
$36,308
|
$131,327
|
$133,931
|
|||
Three Months Ended March 31,
|
Year Ended March 31,
|
||||||
2024
|
2023
|
2024
|
2023
|
||||
GAAP: Net earnings per common share – diluted
|
$0.82
|
$1.23
|
$4.33
|
$4.48
|
|||
Share based compensation
|
0.07
|
0.07
|
0.27
|
0.21
|
|||
Acquisition related amortization expense [3]
|
0.10
|
0.06
|
0.40
|
0.26
|
|||
Other (income) expense, net [2]
|
(0.06)
|
-
|
(0.07)
|
0.08
|
|||
Tax benefit (expense) on restricted stock
|
-
|
-
|
(0.01)
|
(0.01)
|
|||
Total non-GAAP adjustments – net of tax
|
0.11
|
0.13
|
0.59
|
0.54
|
|||
Non-GAAP: Net earnings per common share – diluted
|
$0.93
|
$1.36
|
$4.92
|
$5.02
|
[1] Amount consists of depreciation and amortization for assets used internally.
|
[2] Legal settlement, interest income and foreign currency transaction gains and losses.
|
[3] Amount consists of amortization of intangible assets from acquired businesses.
|