Fourth Quarter Fiscal Year 2023
- Net sales increased 9.0% to $492.2
million from last year's quarter; technology segment net
sales increased 15.2% to $483.2
million; service revenues increased 11.5% to $68.7 million.
- Technology segment gross billings increased 17.6% to
$733.1 million.
- Consolidated gross profit increased 14.7% to $132.3 million.
- Consolidated gross margin was 26.9%, up 140 basis points.
- Net earnings increased 35.5% to $32.9
million.
- Adjusted EBITDA increased 22.4% to $48.7
million.
- Diluted earnings per share increased 35.2% to $1.23. Non-GAAP diluted earnings per share
increased 34.7% to $1.36.
Fiscal Year 2023
- Net sales increased 13.5% to $2,067.7
million; technology segment net sales increased 16.3% to
$2,015.2 million; service revenues
increased 9.9% to $264.4
million.
- Technology segment gross billings increased 19.8% to
$3,145.9 million.
- Consolidated gross profit increased 12.3% to $517.5 million.
- Consolidated gross margin was 25.0%, compared with 25.3% last
year.
- Net earnings increased 13.0% to $119.4
million.
- Adjusted EBITDA increased 12.1% to $190.6 million.
- Diluted earnings per share increased 14.0% to $4.48. Non-GAAP diluted earnings per share
increased 14.4% to $5.02.
HERNDON,
Va., May 24, 2023 /PRNewswire/ -- ePlus inc.
(NASDAQ: PLUS), a leading provider of technology and
financing solutions, today announced financial results for the
three months and fiscal year ended March 31,
2023.
Management Comment
"Our strong fourth quarter results concluded a solid fiscal year
that highlighted the success of our growth strategy and our ability
to meet our customers' needs with innovative solutions despite
persistent supply chain constraints," said Mark Marron, president and chief executive
officer of ePlus. "Fourth quarter net sales improved 9% and fiscal
2023 net sales advanced 13.5%, reflecting our strategic focus on
serving higher-value and higher-growth end markets, such as cloud,
security and collaboration. Over the past year, we invested
significantly in our people to expand our service offerings and
build on our market position. Even with these investments, we
managed overall expenses efficiently and generated diluted earnings
per share growth of 35% in the fourth quarter and 14% for fiscal
2023. I am pleased with our financial performance and proud
of our team's consistent execution to achieve these results."
Mr. Marron continued, "Earlier this month, we announced the
acquisition of certain assets and liabilities of the Network
Solutions Group (NSG) business unit of CCI Systems, Inc., a leading
solutions provider to broadband Service Providers. This acquisition
both complements our existing solutions offerings in the telecom
market and expands our customer base nationwide. We believe this
strategic acquisition will drive enhanced value and performance
over time."
Fourth Quarter Fiscal Year 2023 Results
For the fourth quarter ended March 31,
2023, as compared to the fourth quarter of the prior fiscal
year ended March 31, 2022:
Consolidated net sales increased 9.0% to $492.2 million, from $451.5 million.
Technology segment net sales increased 15.2% to $483.2 million, from $419.4 million primarily due to an increase in
sales to customers in the technology and SLED end markets.
Service revenues increased 11.5% to $68.7 million, from $61.6
million due to increases in professional services and
managed services. Gross billings increased 17.6% to
$733.1 million from $623.6 million. Gross billings is an
operational metric defined as the total dollar value of customer
purchases of goods and services including shipping charges during
the period, net of customer returns and credit memos, sales, or
other taxes.
Financing segment net sales decreased 72.1% to $9.0 million, from $32.1
million and cost of goods sold was lower by $18.6 million, both due to a decline in sales of
leased equipment. Gross profit in the financing segment was lower
by $4.6 million due to lower sales of
leased equipment and lower transactional gains.
Consolidated gross profit increased 14.7% to $132.3 million, from $115.4 million. Consolidated gross margin was
26.9%, up from 25.5% last year due to higher margins from sales of
product and services in our technology segment.
Operating expenses were $89.9
million, up 11.2% from $80.9
million last year, primarily due to increases in salaries
and benefits, variable compensation stemming from higher gross
profit, professional fees, software license and maintenance, and
travel expenses, partially offset by changes in allowance for
credit losses. Our headcount at the end of the quarter was
1,754, up 177 from a year ago, partially due to the Future Com
acquisition on July 15, 2022. Of the
177 additional employees, 140 were customer facing employees,
including 84 professional services and technical support personnel
due to demand for our services.
Consolidated operating income increased 23.0% to $42.4 million.
Our effective tax rate for the current quarter was 22.4%, lower
than the prior year quarter of 29.6%, due to lower than forecasted
non-deductible expenses, increased benefits from foreign sales
along with favorable state return to provision adjustments.
Net earnings increased 35.5% to $32.9
million.
Adjusted EBITDA increased 22.4% to $48.7
million.
Diluted earnings per share was $1.23, compared with $0.91 in the prior year quarter. Non-GAAP diluted
earnings per share was $1.36,
compared with $1.01 last
year.
Fiscal Year 2023 Results
For the fiscal year ended March 31,
2023, as compared to the prior fiscal year ended
March 31, 2022:
Consolidated net sales increased 13.5% to $2,067.7 million, from $1,821.0 million.
Technology segment net sales increased 16.3% to $2,015.2 million, from $1,733.0 million primarily due to an increase in
sales to customers in the technology and SLED end markets.
Service revenues increased 9.9% to $264.4 million, from $240.6 million due to increases in professional
services and managed services. Gross billings was
$3,145.9 million, an increase of
19.8% from $2,625.7
million.
Financing segment net sales decreased 40.4% to $52.5 million, from $88.0
million, and cost of sales was $9.4
million, 73.1% lower than the prior year, both primarily due
to fewer early lease buyouts and a decline in sales of leased
equipment. Gross profit in the financing segment
decreased $9.8 million due to lower
sales of leased equipment, transactional gains and portfolio
earnings.
Consolidated gross profit increased 12.3% to $517.5 million, from $461.0 million. Consolidated gross margin was
25.0%, overall consistent with the consolidated gross margin of
25.3% last year, as higher product margins were offset by lower
service margins.
Operating expenses were $351.4
million, up 12.0% from $313.7
million last year, primarily due to increases in variable
compensation stemming from higher gross profit, salaries and
benefits, professional fees, advertising and marketing, software
license and maintenance, travel expenses, and changes in allowance
for credit losses.
Consolidated operating income increased 12.8% to $166.2 million. During fiscal year 2023, we
incurred foreign currency transaction losses of $5.4 million, which was partially offset by
$1.9 million related to our receipt
of funds resulting from our claim in a class action lawsuit.
Our effective tax rate for the current year period was 26.8%,
lower than last year's 28.1%, due to lower than forecasted
non-deductible expenses, increased benefits from foreign sales
along with favorable state return to provision adjustments.
Net earnings increased 13.0% to $119.4
million.
Adjusted EBITDA increased 12.1% to $190.6
million.
Diluted earnings per share was $4.48, compared with $3.93 in the prior year. Non-GAAP diluted
earnings per share was $5.02,
compared with $4.39 last year.
Balance Sheet Highlights
As of March 31, 2023, ePlus had
cash and cash equivalents of $103.1
million, compared with $155.4
million as of March 31,
2022. Inventory, which represents equipment ordered by
customers but not yet delivered, increased 56.9% to $243.3 million from March
31, 2022 due to ongoing projects with customers coupled with
continued supply chain constraints. Total stockholders' equity was
$782.3 million, compared with
$660.7 million as of March 31, 2022. Total shares outstanding
were 26.9 million on both March 31,
2023 and March 31, 2022.
Summary and Outlook
"ePlus achieved solid sales and earnings growth in fiscal 2023,
driven by the outstanding performance of our team, the strength of
our competitive positioning and our expanded breadth of offerings.
Supported by our extensive vendor network, we continued to deliver
transformative solutions that enabled our more than 4,300 customers
to realize their technology goals and progress on their long-term
IT strategies."
Mr. Marron concluded, "Despite an uncertain economic
environment, we have a resilient business model and the
capabilities to deliver cost effective technology solutions for our
customers. With IT spending still focused on solutions that
drive growth, continue digital transformation, generate
efficiencies, and strengthen cybersecurity, we believe our
portfolio is strongly aligned with our customers' needs. We
remain committed to building long-term stakeholder value through
consistent execution of our growth strategy both organically and
through acquisitions and generating further operational
efficiencies."
Recent Corporate Developments/Recognitions
In the month of April:
- Renewed Cisco Advanced Customer Experience Specialization.
- Announced a new share repurchase program of up to one million
shares.
In the month of March:
- Achieved inclusion on the CRN Tech Elite 250 List for tenth
year.
- Announced the expansion of ePlus' credit facility.
- Announced the launch of ePlus Automated Virtual Assistant for
Collaboration Spaces.
In the month of February:
- Recognized on CRN's 2023 Managed Service Provider 500 List in
the Elite 150 category.
- Announced Cloud Hosted Services Powered by VMware Cloud on
AWS.
Conference Call Information
ePlus will hold a conference call and webcast at 4:30 p.m. ET on May 24,
2023:
Audio Webcast (Live &
Replay):
https://events.q4inc.com/attendee/484026067
Live Call:
|
(888) 330-2469
(toll-free/domestic)
|
|
(240) 789-2740
(international)
|
Replay:
|
(800) 770- 2030
(toll-free/domestic) or
|
|
(647) 362-9199
(international)
|
Passcode:
|
5403833 (live call and
replay)
|
A replay of the call will be available approximately two hours
after the call through May 31, 2023.
A transcript of the call will also be available on the ePlus
Investor Relations website at https://www.eplus.com/investors.
About ePlus inc.
ePlus has an unwavering and relentless focus on leveraging
technology to create inspired and transformative business outcomes
for its customers. Offering a robust portfolio of solutions, as
well as a full set of consultative and managed services across the
technology spectrum, ePlus has proudly achieved more than 30 years
of success in the business, carrying customers forward through
adversity, rapidly changing environments, and other obstacles.
ePlus is a trusted advisor, bringing expertise, credentials, talent
and a thorough understanding of innovative technologies, spanning
security, cloud, data center, networking, collaboration and
emerging solutions, to organizations across all industry segments.
With complete lifecycle management services and flexible payment
solutions, ePlus' more than 1,700 associates are focused on
cultivating positive customer experiences and are dedicated to
their craft, harnessing new knowledge while applying decades of
proven experience. ePlus is headquartered in Virginia, with offices in the United States, UK, Europe, and Asia–Pacific. For more
information, visit www.eplus.com, call 888-482-1122, or email
info@eplus.com. Connect with ePlus on LinkedIn, Twitter,
Facebook, and Instagram.
ePlus, Where Technology Means More®.
ePlus® and ePlus products referenced herein are
either registered trademarks or trademarks of ePlus inc. in
the United States and/or other
countries. The names of other companies and products
mentioned herein may be the trademarks of their respective
owners.
Forward-looking statements
Statements in this press release that are not historical facts
may be deemed to be "forward-looking statements." Actual and
anticipated future results may vary materially due to certain risks
and uncertainties, including, without limitation, ongoing remote
work trends, and the increase in cybersecurity attacks that have
occurred while employees work remotely; 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 our ability to increase prices to our
customers which may result in adverse changes in our gross
profit; the possibility of a reduction of vendor incentives
provided to us; 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; our ability to identify
acquisition candidates, or perform sufficient due diligence prior
to completing an acquisition, or failure to integrate a completed
acquisition may affect our earnings; supply chain issues, including
a shortage of IT products, may increase our costs or cause a delay
in fulfilling customer orders, or increase our need for working
capital, 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; significant adverse changes in, reductions in, or loss of
one or more of our larger volume customers or vendors; 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, or obtain debt for our financing
transactions or the effect of those changes on our common stock
price; our ability to implement comprehensive plans for the
integration of sales forces, cost containment, asset
rationalization, systems integration and other key strategies; 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; our
ability to remain secure during a cybersecurity attack, including
both disruptions in our or our vendors' IT systems and data and
audio communication networks; our 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; changes in the IT
industry and/or rapid changes in product offerings, including the
proliferation of the cloud, infrastructure as a service, software
as a service and platform as a service; maintaining and increasing
advanced professional services by recruiting and retaining highly
skilled, competent personnel and vendor certifications; and other
risks or uncertainties detailed in our reports filed with the
Securities and Exchange Commission. All information set forth
in this press release is current as of the date of this release and
ePlus undertakes no duty or obligation to update this
information.
ePlus
inc. AND SUBSIDIARIES
|
|
|
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2023
|
|
March 31,
2022
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$103,093
|
|
$155,378
|
Accounts
receivable—trade, net
|
|
504,122
|
|
430,380
|
Accounts
receivable—other, net
|
|
55,508
|
|
48,673
|
Inventories
|
|
243,286
|
|
155,060
|
Financing
receivables—net, current
|
|
89,829
|
|
61,492
|
Deferred
costs
|
|
44,191
|
|
32,555
|
Other current
assets
|
|
55,101
|
|
13,944
|
Total current
assets
|
|
1,095,130
|
|
897,482
|
|
|
|
|
|
Financing receivables
and operating leases—net
|
|
84,417
|
|
64,292
|
Deferred tax
asset
|
|
3,682
|
|
5,050
|
Property, equipment and
other assets
|
|
70,447
|
|
45,586
|
Goodwill
|
|
136,105
|
|
126,543
|
Other intangible
assets—net
|
|
25,045
|
|
27,250
|
TOTAL ASSETS
|
|
$1,414,826
|
|
$1,166,203
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$220,159
|
|
$136,161
|
Accounts payable—floor
plan
|
|
134,615
|
|
145,323
|
Salaries and
commissions payable
|
|
37,336
|
|
39,602
|
Deferred
revenue
|
|
114,028
|
|
86,469
|
Recourse notes
payable—current
|
|
5,997
|
|
7,316
|
Non-recourse notes
payable—current
|
|
24,819
|
|
17,070
|
Other current
liabilities
|
|
24,372
|
|
28,095
|
Total current
liabilities
|
|
561,326
|
|
460,036
|
|
|
|
|
|
Recourse notes
payable—long-term
|
|
-
|
|
5,792
|
Non-recourse notes
payable—long-term
|
|
9,522
|
|
4,108
|
Deferred tax
liability
|
|
715
|
|
-
|
Other
liabilities
|
|
60,998
|
|
35,529
|
TOTAL
LIABILITIES
|
|
632,561
|
|
505,465
|
|
|
|
|
|
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; 26,905 outstanding at March 31,
2023 and
26,886 outstanding at March 31, 2022
|
|
272
|
|
270
|
Additional paid-in
capital
|
|
167,303
|
|
159,480
|
Treasury stock, at
cost, 261 shares at March 31, 2023 and
|
|
|
|
|
130 shares
at March 31, 2022
|
|
(14,080)
|
|
(6,734)
|
Retained
earnings
|
|
627,202
|
|
507,846
|
Accumulated other
comprehensive income—foreign currency
|
|
|
|
|
translation adjustment
|
|
1,568
|
|
(124)
|
Total Stockholders'
Equity
|
|
782,265
|
|
660,738
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
$1,414,826
|
|
$1,166,203
|
ePlus
inc. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in thousands,
except per share amounts)
|
|
|
Three Months Ended
March 31,
|
|
Year Ended March
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
Product
|
$423,462
|
|
$389,870
|
|
$1,803,275
|
|
$1,580,394
|
Services
|
68,715
|
|
61,649
|
|
264,443
|
|
240,625
|
Total
|
492,177
|
|
451,519
|
|
2,067,718
|
|
1,821,019
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
|
|
Product
|
317,148
|
|
296,277
|
|
1,379,500
|
|
1,210,943
|
Services
|
42,704
|
|
39,891
|
|
170,694
|
|
149,094
|
Total
|
359,852
|
|
336,168
|
|
1,550,194
|
|
1,360,037
|
|
|
|
|
|
|
|
|
Gross profit
|
132,325
|
|
115,351
|
|
517,524
|
|
460,982
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative
|
85,319
|
|
76,964
|
|
333,520
|
|
297,117
|
Depreciation and
amortization
|
3,322
|
|
3,270
|
|
13,709
|
|
14,646
|
Interest and financing
costs
|
1,270
|
|
641
|
|
4,133
|
|
1,903
|
Operating
expenses
|
89,911
|
|
80,875
|
|
351,362
|
|
313,666
|
|
|
|
|
|
|
|
|
Operating
income
|
42,414
|
|
34,476
|
|
166,162
|
|
147,316
|
|
|
|
|
|
|
|
|
Other income (expense),
net
|
(76)
|
|
(55)
|
|
(3,188)
|
|
(432)
|
|
|
|
|
|
|
|
|
Earnings before
taxes
|
42,338
|
|
34,421
|
|
162,974
|
|
146,884
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
9,484
|
|
10,176
|
|
43,618
|
|
41,284
|
|
|
|
|
|
|
|
|
Net earnings
|
$32,854
|
|
$24,245
|
|
$119,356
|
|
$105,600
|
|
|
|
|
|
|
|
|
Net earnings per common
share—basic
|
$1.24
|
|
$0.91
|
|
$4.49
|
|
$3.96
|
Net earnings per common
share—diluted
|
$1.23
|
|
$0.91
|
|
$4.48
|
|
$3.93
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding—basic
|
26,593
|
|
26,553
|
|
26,569
|
|
26,638
|
Weighted average common
shares outstanding—diluted
|
26,702
|
|
26,703
|
|
26,654
|
|
26,866
|
Technology
Segment
|
|
Three Months Ended
March 31,
|
|
|
|
Year Ended March
31,
|
|
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
|
(in
thousands)
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
$414,493
|
|
$357,753
|
|
15.9 %
|
|
$1,750,802
|
|
$1,492,411
|
|
17.3 %
|
Services
|
68,715
|
|
61,649
|
|
11.5 %
|
|
264,443
|
|
240,625
|
|
9.9 %
|
Total
|
483,208
|
|
419,402
|
|
15.2 %
|
|
2,015,245
|
|
1,733,036
|
|
16.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
315,794
|
|
276,352
|
|
14.3 %
|
|
1,370,061
|
|
1,175,789
|
|
16.5 %
|
Services
|
42,704
|
|
39,891
|
|
7.1 %
|
|
170,694
|
|
149,094
|
|
14.5 %
|
Total
|
358,498
|
|
316,243
|
|
13.4 %
|
|
1,540,755
|
|
1,324,883
|
|
16.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
124,710
|
|
103,159
|
|
20.9 %
|
|
474,490
|
|
408,153
|
|
16.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative
|
82,738
|
|
73,321
|
|
12.8 %
|
|
317,885
|
|
283,690
|
|
12.1 %
|
Depreciation and
amortization
|
3,294
|
|
3,243
|
|
1.6 %
|
|
13,598
|
|
14,535
|
|
(6.4 %)
|
Interest and financing
costs
|
780
|
|
235
|
|
231.9 %
|
|
2,897
|
|
928
|
|
212.2 %
|
Operating
expenses
|
86,812
|
|
76,799
|
|
13.0 %
|
|
334,380
|
|
299,153
|
|
11.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$37,898
|
|
$26,360
|
|
43.8 %
|
|
$140,110
|
|
$109,000
|
|
28.5 %
|
Gross
billings
|
$733,085
|
|
$623,558
|
|
17.6 %
|
|
$3,145,888
|
|
$2,625,749
|
|
19.8 %
|
Adjusted
EBITDA
|
$44,049
|
|
$31,542
|
|
39.7 %
|
|
$164,184
|
|
$131,353
|
|
25.0 %
|
Technology Segment Net
Sales by Customer End Market
|
|
Year Ended March
31,
|
|
|
|
2023
|
|
2022
|
|
Change
|
|
(in
thousands)
|
|
|
Telecom, Media &
Entertainment
|
$532,921
|
|
$502,408
|
|
6.1 %
|
Technology
|
393,594
|
|
250,485
|
|
57.1 %
|
SLED
|
290,624
|
|
241,769
|
|
20.2 %
|
Healthcare
|
274,936
|
|
270,481
|
|
1.6 %
|
Financial
Services
|
156,257
|
|
155,160
|
|
0.7 %
|
All others
|
366,913
|
|
312,733
|
|
17.3 %
|
Total
|
$2,015,245
|
|
$1,733,036
|
|
16.3 %
|
Financing
Segment
|
|
Three Months Ended
March 31,
|
|
|
|
Year Ended March
31,
|
|
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
|
(in
thousands)
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$8,969
|
|
$32,117
|
|
(72.1 %)
|
|
$52,473
|
|
$87,983
|
|
(40.4 %)
|
Cost of
sales
|
1,354
|
|
19,925
|
|
(93.2 %)
|
|
9,439
|
|
35,154
|
|
(73.1 %)
|
Gross profit
|
7,615
|
|
12,192
|
|
(37.5 %)
|
|
43,034
|
|
52,829
|
|
(18.5 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative
|
2,581
|
|
3,643
|
|
(29.2 %)
|
|
15,635
|
|
13,427
|
|
16.4 %
|
Depreciation and
amortization
|
28
|
|
27
|
|
3.7 %
|
|
111
|
|
111
|
|
0.0 %
|
Interest and financing
costs
|
490
|
|
406
|
|
20.7 %
|
|
1,236
|
|
975
|
|
26.8 %
|
Operating
expenses
|
3,099
|
|
4,076
|
|
(24.0 %)
|
|
16,982
|
|
14,513
|
|
17.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$4,516
|
|
8,116
|
|
(44.4 %)
|
|
$26,052
|
|
$38,316
|
|
(32.0 %)
|
Adjusted
EBITDA
|
$4,610
|
|
8,198
|
|
(43.8 %)
|
|
$26,408
|
|
$38,651
|
|
(31.7 %)
|
ePlus inc. AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP
INFORMATION
We included reconciliations below for the following non-GAAP
financial measures: (i) Adjusted EBITDA, (ii) Segment Adjusted
EBITDA, (iii) non-GAAP Net Earnings and (iv) non-GAAP Net Earnings
per Common Share - Diluted.
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 expense, provision for income taxes,
and other income (expense). 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.
Non-GAAP net earnings and non-GAAP net earnings per common share
– diluted are based on net earnings calculated in accordance with
GAAP, adjusted to exclude other income (expense), share based
compensation, and acquisition related amortization expense, and the
related tax effects.
We use the above non-GAAP financial measures as supplemental
measures of our performance to gain insight into our operating
performance and performance trends. We believe that such non-GAAP
financial measures provide management and investors a useful
measure for period-to-period comparisons of our business and
operating results by excluding items that management believes are
not reflective of our underlying operating performance.
Accordingly, we believe that such non-GAAP financial measures
provide useful information to investors and others in understanding
and evaluating our operating results.
Our use of non-GAAP information as analytical tools has
limitations, and you should not consider them in isolation or as
substitutes for analysis of our financial results as reported under
GAAP. In addition, other companies, including companies in our
industry, might calculate adjusted EBITDA, non-GAAP net earnings
and non-GAAP net earnings per common share or similarly titled
measures differently, which may reduce their usefulness as
comparative measures.
|
Three Months Ended
March 31,
|
|
Year Ended March
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in
thousands)
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
$32,854
|
|
$24,245
|
|
$119,356
|
|
$105,600
|
Provision for income
taxes
|
9,484
|
|
10,176
|
|
43,618
|
|
41,284
|
Depreciation and
amortization [1]
|
3,322
|
|
3,270
|
|
13,709
|
|
14,646
|
Share based
compensation
|
2,143
|
|
1,759
|
|
7,824
|
|
7,114
|
Interest and financing
costs
|
780
|
|
235
|
|
2,897
|
|
928
|
Other expense, net
[2]
|
76
|
|
55
|
|
3,188
|
|
432
|
Adjusted
EBITDA
|
$48,659
|
|
$39,740
|
|
$190,592
|
|
$170,004
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Year Ended March
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in
thousands)
|
Technology
Segment
|
|
|
|
|
|
|
|
Operating
income
|
$37,898
|
|
$26,360
|
|
$140,110
|
|
$109,000
|
Depreciation and
amortization [1]
|
3,294
|
|
3,243
|
|
13,598
|
|
14,535
|
Share based
compensation
|
2,077
|
|
1,704
|
|
7,579
|
|
6,890
|
Interest and financing
costs
|
780
|
|
235
|
|
2,897
|
|
928
|
Adjusted
EBITDA
|
$44,049
|
|
$31,542
|
|
$164,184
|
|
$131,353
|
|
|
|
|
|
|
|
|
Financing
Segment
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$4,516
|
|
$8,116
|
|
$26,052
|
|
|
|
$38,316
|
Depreciation and
amortization [1]
|
28
|
|
27
|
|
111
|
|
|
|
111
|
Share based
compensation
|
66
|
|
55
|
|
245
|
|
|
|
224
|
Adjusted
EBITDA
|
$4,610
|
|
$8,198
|
|
$26,408
|
|
|
|
$38,651
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Year Ended March
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in
thousands)
|
GAAP: Earnings before
taxes
|
$42,338
|
|
$34,421
|
|
$162,974
|
|
$146,884
|
Share based
compensation
|
2,143
|
|
$1,759
|
|
7,824
|
|
7,114
|
Acquisition related
amortization expense [3]
|
2,229
|
|
2,218
|
|
9,411
|
|
10,072
|
Other expense, net
[2]
|
76
|
|
55
|
|
3,188
|
|
432
|
Non-GAAP: Earnings
before provision for income taxes
|
46,786
|
|
38,453
|
|
183,397
|
|
164,502
|
|
|
|
|
|
|
|
|
GAAP: Provision for
income taxes
|
9,484
|
|
10,176
|
|
43,618
|
|
41,284
|
Share based
compensation
|
480
|
|
520
|
|
2,104
|
|
2,014
|
Acquisition related
amortization expense [3]
|
497
|
|
647
|
|
2,527
|
|
2,803
|
Other expense, net
[2]
|
17
|
|
16
|
|
950
|
|
120
|
Tax benefit (expense)
on restricted stock
|
-
|
|
-
|
|
267
|
|
317
|
Non-GAAP: Provision for
income taxes
|
10,478
|
|
11,359
|
|
49,466
|
|
46,538
|
|
|
|
|
|
|
|
|
Non-GAAP: Net
earnings
|
$36,308
|
|
$27,094
|
|
$133,931
|
|
$117,964
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Year Ended March
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
GAAP: Net earnings per
common share – diluted
|
$1.23
|
|
$0.91
|
|
$4.48
|
|
$3.93
|
|
|
|
|
|
|
|
|
Share based
compensation
|
0.07
|
|
0.05
|
|
0.21
|
|
0.20
|
Acquisition related
amortization expense [3]
|
0.06
|
|
0.05
|
|
0.26
|
|
0.26
|
Other expense, net
[2]
|
-
|
|
-
|
|
0.08
|
|
0.01
|
Tax benefit (expense)
on restricted stock
|
-
|
|
-
|
|
(0.01)
|
|
(0.01)
|
Total non-GAAP
adjustments – net of tax
|
0.13
|
|
0.10
|
|
0.54
|
|
0.46
|
|
|
|
|
|
|
|
|
Non-GAAP: Net earnings
per common share – diluted
|
$1.36
|
|
$1.01
|
|
$5.02
|
|
$4.39
|
[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.
|
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SOURCE ePlus inc.