UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 6, 2024

ePlus inc.
(Exact name of registrant as specified in its charter)

Delaware
 
001-34167
 
54-1817218
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)

13595 Dulles Technology Drive
Herndon, Virginia 20171-3413
(Address of principal executive offices, including zip code)

(703) 984-8400
(Registrant's telephone number, including area code)

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $.01 par value
 PLUS
 NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter):

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02 Results of Operations and Financial Condition
 
On August 6, 2024, ePlus inc. announced by press release its results of operations for its first quarter ended June 30, 2024. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
 
In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (the "Exchange Act"), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits
 
(d) The following exhibits are filed as part of this report:
 
Exhibit No.
Description
   
99.1
Press release dated August 6, 2024, issued by ePlus inc.
   
104
 Cover Page Interactive Date File (embedded within the Inline XBRL document)




SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
ePlus inc.








By: /s/ Elaine D. Marion



Elaine D. Marion



Chief Financial Officer

 
Date: August 6, 2024




EXHIBIT 99.1

ePlus Reports First Quarter Fiscal Year 2025 Financial Results

First Quarter Fiscal Year 2025
 
•  
Net sales decreased 5.2% to $544.5 million from last year’s first quarter; technology business net sales decreased 5.3% to $535.5 million; services revenues increased 15.8% to $78.2 million.
•  
Technology business gross billings decreased 1.0% to $833.7 million.
•  
Consolidated gross profit decreased 5.5% to $134.5 million.
•  
Consolidated gross margin was 24.7% as compared to last year’s 24.8%.
•  
Net earnings decreased 19.2% to $27.3 million.
•  
Adjusted EBITDA decreased 19.9% to $43.1 million.
•  
Diluted net earnings per common share decreased 19.7% to $1.02 and non-GAAP diluted net earnings per common share decreased 19.9% to $1.13.

HERNDON, VA – August 6, 2024 – ePlus inc. (NASDAQ:  PLUS), a leading provider of technology and financing solutions, today announced financial results for the three months ended June 30, 2024, the first quarter of its 2025 fiscal year.

Management Comment

“We continued to see strong growth in security and services overall with our managed services up 28%.  For many years we have been building strong services and recurring revenue streams, in part to offset headwinds created by the increase in netted down revenues and ratable recognition of sales, both to build a more consistent financial model, but also to deliver the solutions that customers demand with today’s advanced technologies," said Mark Marron, president and CEO of ePlus. "We are seeing strong customer interest in our AI Ignite program and discovery services.  While these create nominal current revenue, they also are key to locking in future business opportunities and securing customer mindshare in this fast moving technology solution.

Given a hard compare, with last year’s first quarter growth of 25% due to supply chain easing, our first quarter net sales were down 5.2% and gross billings were down 1%.   Both the revenue and gross billings decline year over year is attributable to a more normalized supply chain, the absorption of prior purchases by our customers, product mix, and the ratable trend as noted above.  We do not see any long-term diminished demand for our products and services and our full year guidance remains unchanged.”

Mr. Marron continued, “We ended the quarter with a strong cash position of $350 million, providing ePlus the resources to invest in organic growth initiatives, continue our track record of strategic acquisitions, and increase shareholder returns through share repurchases.”

First Quarter Fiscal Year 2025 Results

For the first quarter ended June 30, 2024, as compared to the first quarter ended June 30, 2023:

Consolidated net sales decreased 5.2% to $544.5 million, from $574.2 million.

1
Technology business net sales decreased 5.3% to $535.5 million, from $565.7 million driven by lower product sales. Technology business gross billings decreased 1.0% to $833.7 million from $842.0 million.

Product sales decreased 8.2% to $457.3 million, from $498.2 million, due to decreases in net sales of cloud and networking products, offset by increases in net sales of collaboration and security products. Gross profit decreased 11.6% to $98.5 million, from $111.4 million last year, due to the reduction of product sales and a 90-bps decline in product margin to 21.5% from 22.4% last year, due to a shift in customer mix, offset by a larger proportion of third-party maintenance and services sold in the current quarter which are recorded on a net basis.

Professional service revenues increased 4.8% from last year to $37.3 million from $35.6 million.  Gross profit increased 5.0% and gross margins increased 10 bps to 41.5% from 41.4% last year.

Managed service revenues increased 28.0% to $40.9 million due to ongoing demand in these offerings, including Enhanced Maintenance Support, Cloud, and Service Desk services. Gross profit increased 31.0% from last year due to the scaled growth in these services resulting in a 70-bps gross margin improvement.

Financing business segment net sales increased 6.4% to $9.0 million, from $8.5 million due to increases in portfolio earnings. Gross profit in the financing business segment increased 20.8% to $7.7 million from $6.4 million last year.

Consolidated gross profit decreased 5.5% to $134.5 million, from $142.3 million. Consolidated gross margin was 24.7%, down 10 bps from last year’s 24.8%, due to lower product margin in our technology business.

Consolidated operating expenses were $99.0 million, up 3.2% from $95.9 million last year, primarily due to increases in salaries and benefits from additional headcount.  Our headcount at the end of the quarter was 1,907, up 54 from a year ago, including 28 employees from PEAK Resources, Inc. (“PEAK”) which we acquired in January 2024.

Consolidated operating income decreased 23.4% to $35.5 million. During the quarter ended June 30, 2024, we had other income of $2.1 million from interest income of $2.6 million offset by foreign currency transaction loss of $0.5 million. Earnings before tax decreased 19.3% to $37.5 million.

Our effective tax rate remained at 27.2% year over year.

Net earnings decreased 19.2% to $27.3 million from $33.8 million.

Consolidated adjusted EBITDA decreased 19.9% to $43.1 million from $53.9 million.

Diluted net earnings per common share was $1.02 for the first quarter ended June 30, 2024, compared with $1.27 for the first quarter ended June 30, 2023. Non-GAAP diluted net earnings per common share was $1.13 for the first quarter ended June 30, 2024, compared with $1.41 for the first quarter ended June 30, 2023.

2
Balance Sheet Highlights

As of June 30, 2024, cash and cash equivalents were $349.9 million, up from $253.0 million as of March 31, 2024, primarily due to improvements in working capital, offset by repurchases of our common stock.  Inventory decreased 36.2% to $89.1 million compared with $139.7 million as of March 31, 2024.  Total stockholders’ equity was $921.9 million, compared with $901.8 million as of March 31, 2024.  Total shares outstanding were 26.9 million and 27.0 million on June 30, 2024 and March 31, 2024, respectively.

Fiscal Year Guidance

ePlus is maintaining fiscal year 2025 guidance for net sales growth over the prior fiscal year of between 3% and 6%, and an adjusted EBITDA range of $200.0 million to $215.0 million.  ePlus cannot predict with reasonable certainty and without unreasonable effort, the ultimate outcome of unusual gains and losses, the occurrence of matters creating GAAP tax impacts, fluctuations in interest expense or interest income and share-based compensation, and acquisition-related expenses. These items are uncertain, depend on various factors, and could be material to the ePlus’ results computed in accordance with GAAP.  Accordingly, the ePlus is unable to provide a reconciliation of GAAP net earnings to adjusted EBITDA for the full year 2025 forecast.

Summary and Outlook

“Looking ahead, as we add new products and services and benefit from recent acquisitions, ePlus continues to be positioned to achieve top-line growth. Our business is supported by deep customer and channel relationships.  We have invested across the organization to strengthen our product and services offerings and to customize our solutions to meet the evolving needs of our customers. Our teams continue to execute well and operate efficiently with an unwavering commitment to superior customer service. These factors support our confidence in the underlying fundamentals of our business and our ability to deliver on our 2025 financial outlook and objectives.

“Additionally, our strong financial position provides us with considerable capital allocation options to drive long-term shareholder value, including the ability to expand our product offerings, make larger accretive acquisitions, and continue to return capital to shareholders through share repurchases. This flexibility, together with ongoing investments in differentiated capabilities, should enable us to build on our competitive advantage and advance our market positioning,” concluded Mr. Marron.
Recent Corporate Developments/Recognitions

•  
In the month of July:
 
o  
Announced Storage-as-a-Service leveraging NetApp.
 
o  
IGXGlobal, a subsidiary of ePlus, began offering Storage-as-a-Service powered by Pure Storage.
•  
In the month of June:
 
o  
Awarded the Lenovo U.S. Infrastructure Solutions Partner of the Year Award.
 
o  
Announced the launch of Azure Recover.
 
o  
Recognized as Juniper Networks 2023 Partner of the Year for Cloud Ready Data Center in both Worldwide and Americas Categories.
•  
In the month of May:
 
o  
Named Growth Partner of the Year by Varonis.
 
o  
Earned a spot on CRN’s 2024 Solution Provider 500 List.


3
Conference Call Information

ePlus will hold a conference call and webcast at 4:30 p.m. ET on August 6, 2024:

Date:
August 6, 2024
Time:
4:30 p.m. ET
Audio Webcast (Live & Replay
https://events.q4inc.com/attendee/653117486
   
Live Call:
(888) 596-4144 (toll-free/domestic)
 
(646) 968-2525 (international)
   
Archived Call:
(800) 770-2030 (toll-free/domestic)
 
(609) 800-9909 (international)
   
Conference ID:
6593768# (live call and replay)

A replay of the call will be available approximately two hours after the call through August 13, 2024. 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 broad range of consultative and managed services across the technology spectrum, ePlus has proudly achieved more than 30 years of success, 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 1,900 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 locations 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, X, 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.

4
Forward-looking statements

Statements in this press release that are not historical facts may be deemed to be "forward-looking statements," including, among other things, statements regarding the future financial performance of ePlus. Actual and anticipated future results may vary materially due to certain risks and uncertainties, including, without limitation, exposure to fluctuation in foreign currency rates, interest rates, and inflation, including as a result of national and international political instability fostering uncertainty and volatility in the global economy, which may cause increases in our costs and our ability to increase prices to our customers, negative impacts to the arrangements that have pricing commitments over the term of the agreement, which may result in adverse changes in our gross profit; significant adverse changes in, reductions in, or loss of one or more of our larger volume customers or vendors; 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; our ability to remain secure during a cybersecurity attack or other IT outtage, including both disruptions in our or our vendors' or other third party’s Information Technology ("IT") systems and data and audio communication networks; 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; ongoing remote work trends, and the increase in cybersecurity attacks that have occurred while employees work remotely and our ability to adequately train our personnel to prevent a cyber event; the possibility of a reduction of vendor incentives provided to us; our dependence on key personnel and our ability to hire, train and retain qualified personnel by recruiting and retaining highly skilled, competent personnel, and vendor certifications; our ability to manage a diverse product set of solutions, including artificial intelligence (“AI”) products, in highly competitive markets with a number of key vendors; 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, platform as a service and AI; 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 delay 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; our inability 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; 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; our ability to implement comprehensive plans for the integration of sales forces, cost containment, asset rationalization, systems integration, and other key strategies; 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.

Contact:
Kleyton Parkhurst, SVP
ePlus inc.
kparkhurst@eplus.com
703-984-8150


5
ePlus inc. AND SUBSIDIARIES
        
UNAUDITED CONSOLIDATED BALANCE SHEETS
        
(in thousands, except per share amounts)
        
         
   
June 30, 2024
  
March 31, 2024
ASSETS
        
         
Current assets:
        
Cash and cash equivalents
  
$349,909
  
$253,021
Accounts receivable—trade, net
  
577,019
  
644,616
Accounts receivable—other, net
 
54,987
  
46,884
Inventories
  
89,134
  
139,690
Financing receivables—net, current
 
109,119
  
102,600
Deferred costs
 
59,985
  
59,449
Other current assets
 
23,951
  
27,269
Total current assets
 
1,264,104
  
1,273,529
 
 
      
Financing receivables and operating leases—net
  
85,032
  
79,435
Deferred tax asset
  
5,620
  
5,620
Property, equipment and other assets
  
94,417
  
89,289
Goodwill
  
161,508
  
161,503
Other intangible assets—net
 
40,292
  
44,093
TOTAL ASSETS
  
$1,650,973
  
$1,653,469
 
 
 
  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
        
         
LIABILITIES
        
         
Current liabilities:
 
 
  
 
Accounts payable
 
$270,614
  
$315,676
Accounts payable—floor plan
  
119,511
  
105,104
Salaries and commissions payable
  
40,491
  
43,696
Deferred revenue
 
138,619
  
134,596
Non-recourse notes payable—current
 
29,898
  
23,288
Other current liabilities
  
29,103
  
34,630
Total current liabilities
 
628,236
  
656,990
 
 
      
Non-recourse notes payable—long-term
  
10,854
  
12,901
Other liabilities
 
89,955
  
81,799
TOTAL LIABILITIES
  
729,045
  
751,690
   
 
  
 
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; 26,940 outstanding at June 30, 2024 and
        26,952 outstanding at March 31, 2024
  
276
  
274
Additional paid-in capital
  
184,733
  
180,058
Treasury stock, at cost, 609 shares at June 30, 2024 and
        447 shares at March 31, 2024
  
(35,746)
  
(23,811)
Retained earnings
  
770,317
  
742,978
Accumulated other comprehensive income—foreign currency
        translation adjustment
  
2,348
  
2,280
Total Stockholders' Equity
 
921,928
  
901,779
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  
$1,650,973
  
$1,653,469


6

ePlus inc. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
 
 
Three Months Ended June 30,
    
 
2024
  
2023
    
           
Net sales
      
 
  
     Product
$466,349
  
$506,656
    
     Services
78,189
  
67,519
    
          Total
544,538
  
574,175
    
           
Cost of sales
          
     Product
360,157
  
388,904
    
     Services
49,900
  
42,998
    
          Total
410,057
  
431,902
    
           
Gross profit
134,481
  
142,273
    
           
Selling, general, and administrative
93,608
  
90,298
    
Depreciation and amortization
4,819
  
4,792
    
Interest and financing costs
585
  
851
    
Operating expenses
99,012
  
95,941
    
           
Operating income
35,469
  
46,332
    
           
Other income (expense), net
2,073
  
190
    
           
Earnings before taxes
37,542
  
46,522
    
           
Provision for income taxes
10,203
  
12,675
    
           
Net earnings
$27,339
  
$33,847
    
           
Net earnings per common share—basic
$1.03
  
$1.27
    
Net earnings per common share—diluted
$1.02
  
$1.27
    
 
 
 
 
 
  
Weighted average common shares outstanding—basic
26,642
  
26,552
    
Weighted average common shares outstanding—diluted
26,801
  
26,648
    


7
Technology Business
 
Three Months Ended June 30,
        
 
2024
  
2023
  
Change
    
 
(in thousands)
        
               
Net sales
              
    Product
$457,312
  
$498,166
  
(8.2%)
    
    Professional services
37,279
  
35,556
  
4.8%
    
    Managed services
40,910
  
31,963
  
28.0%
    
          Total
535,501
  
565,685
  
(5.3%)
    
               
Gross profit
              
     Product
98,505
  
111,391
  
(11.6%)
    
     Professional services
15,455
  
14,724
  
5.0%
    
     Managed services
12,834
  
9,797
  
31.0%
    
          Total
126,794
  
135,912
  
(6.7%)
    
               
Selling, general, and administrative
90,084
  
87,100
  
3.4%
    
Depreciation and amortization
4,819
  
4,764
  
1.2%
    
Interest and financing costs
-
  
550
  
(100.0%)
    
Operating expenses
94,903
  
92,414
  
2.7%
    
               
Operating income
$31,891
  
$43,498
  
(26.7%)
    
Gross billings
$833,708
  
$841,970
  
(1.0%)
    
Adjusted EBITDA
$39,501
  
$50,949
  
(22.5%)
    


Technology Business Gross Billings by Type
 
Three Months Ended June 30,
        
 
2024
  
2023
  
Change
    
 
(in thousands)
        
               
Networking
$281,528
  
$276,645
  
1.8%
    
Cloud
241,274
  
258,924
  
(6.8%)
    
Security
151,883
  
147,343
  
3.1%
    
Collaboration
32,976
  
22,161
  
48.8%
    
Other
44,592
  
69,761
  
(36.1%)
    
Product gross billings
752,253
  
774,834
  
(2.9%)
    
Service gross billings
81,455
  
67,136
  
21.3%
    
Total gross billings
$833,708
  
$ 841,970
  
(1.0%)
    
 
 
Technology Business Net Sales by Type
 
Three Months Ended June 30,
        
 
2024
  
2023
  
Change
    
 
(in thousands)
        
               
Networking
$234,740
  
$245,188
  
(4.3%)
    
Cloud
137,231
  
172,044
  
(20.2%)
    
Security
48,005
  
45,796
  
4.8%
    
Collaboration
20,899
  
12,956
  
61.3%
    
Other
16,437
  
22,182
  
(25.9%)
    
Total product
457,312
  
498,166
  
(8.2%)
    
Professional services
37,279
  
35,556
  
4.8%
    
Managed services
40,910
  
31,963
  
28.0%
    
Total net sales
$535,501
  
$ 565,685
  
(5.3%)
    
 


8
Technology Business Net Sales by Customer End Market
 
Three Months Ended June 30,
        
 
2024
  
2023
  
Change
    
 
(in thousands)
        
               
Telecom, Media, & Entertainment
$117,553
  
$ 141,335
  
(16.8%)
    
Technology
109,106
  
73,403
  
48.6%
    
SLED
92,096
  
109,405
  
(15.8%)
    
Healthcare
75,280
  
86,656
  
(13.1%)
    
​Financial Services
49,725
  
65,690
  
(24.3%)
    
All other
91,741
  
89,196
  
2.9%
    
Total net sales
$535,501
  
$ 565,685
  
(5.3%)
    

Financing Business Segment
 
Three Months Ended June 30,
        
 
2024
  
2023
  
Change
    
 
(in thousands)
        
               
Portfolio earnings
$4,161
  
$3,073
  
35.4%
    
Transactional gains
1,293
  
1,279
  
1.1%
    
Post-contract earnings
3,315
  
3,634
  
(8.8%)
    
Other
268
  
504
  
(46.8%)
    
Net sales
9,037
  
8,490
  
6.4%
    
               
Gross profit
7,687
  
6,361
  
20.8%
    
               
Selling, general, and administrative
3,524
  
3,198
  
10.2%
    
Depreciation and amortization
-
  
28
  
(100.0%)
    
Interest and financing costs
585
  
301
  
94.4%
    
Operating expenses
4,109
  
3,527
  
16.5%
    
               
Operating income
$3,578
  
$2,834
  
26.3%
    
Adjusted EBITDA
$3,642
  
$2,930
  
24.3%
    

9
ePlus inc. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP INFORMATION

We included reconciliations below for the following non-GAAP financial measures: (i) Adjusted EBITDA, (ii) Adjusted EBITDA for business segments, (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 US GAAP, adjusted for the following: interest expense, depreciation and amortization, share-based compensation, acquisition and integration expenses, provision for income taxes, and other income (expense). Adjusted EBITDA presented for the technology business segments and the financing business segment is defined as operating income calculated in accordance with US 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 business 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.

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.


10
 
Three Months Ended June 30,
  
 
2024
  
2023
  
 
(in thousands)
  
         
Consolidated
        
         
Net earnings
$27,339
  
$33,847
  
Provision for income taxes
10,203
  
12,675
  
Depreciation and amortization [1]
4,819
  
4,792
  
Share based compensation
2,855
  
2,205
  
Interest and financing costs
-
  
550
  
Other expense, net [2]
(2,073)
  
(190)
  
Adjusted EBITDA
$43,143
  
$53,879
  
         


Technology Business Segment
        
Operating income
$31,891
  
$43,498
  
Depreciation and amortization [1]
4,819
  
4,764
  
Share based compensation
2,791
  
2,137
  
Interest and financing costs
-
  
550
  
Adjusted EBITDA
$39,501
  
$50,949
  
         


Financing Business Segment
        
Operating income
$3,578
  
$2,834
  
Depreciation and amortization [1]
-
  
28
  
Share based compensation
64
  
68
  
Adjusted EBITDA
$3,642
  
$2,930
  
         


11
 
Three Months Ended June 30,
  
 
2024
  
2023
  
 
(in thousands)
  
GAAP: Earnings before taxes
$37,542
  
$46,522
  
Share based compensation
2,855
  
2,205
  
Acquisition related amortization expense [3]
3,750
  
3,469
  
Other (income) expense [2]
(2,073)
  
(190)
  
Non-GAAP: Earnings before provision for income taxes
42,074
  
52,006
  
         
GAAP: Provision for income taxes
10,203
  
12,675
  
Share based compensation
799
  
607
  
Acquisition related amortization expense [3]
1,047
  
952
  
Other (income) expense, net [2]
(580)
  
(52)
  
Tax benefit (expense) on restricted stock
308
  
137
  
Non-GAAP: Provision for income taxes
11,777
  
14,319
  
         
Non-GAAP: Net earnings
$30,297
  
$37,687
  
         

 
Three Months Ended June 30,
  
 
2024
  
2023
  
         
GAAP: Net earnings per common share – diluted
$1.02
  
$1.27
  
         
Share based compensation
0.08
  
0.06
  
Acquisition related amortization expense [3]
0.10
  
0.09
  
Other (income) expense, net [2]
(0.06)
  
-
  
Tax benefit (expense) on restricted stock
(0.01)
  
(0.01)
  
Total non-GAAP adjustments – net of tax
0.11
  
0.14
  
         
Non-GAAP: Net earnings per common share – diluted
$1.13
  
$1.41
  

[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.



12
12
v3.24.2.u1
Document and Entity Information
Aug. 06, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Aug. 06, 2024
Entity File Number 001-34167
Entity Registrant Name ePlus inc.
Entity Central Index Key 0001022408
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 54-1817218
Entity Address, Address Line One 13595 Dulles Technology Drive
Entity Address, City or Town Herndon
Entity Address, State or Province VA
Entity Address, Postal Zip Code 20171-3413
City Area Code 703
Local Phone Number 984-8400
Title of 12(b) Security Common Stock, $.01 par value
Trading Symbol PLUS
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
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