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ePlus Reports Fourth Quarter and Fiscal Year 2020 Financial Results


ePlus Reports Fourth Quarter and Fiscal Year 2020 Financial Results

--Solid Fourth Quarter Performance Across Key Metrics--

--Strong Balance Sheet and Liquidity Position--

Fourth Quarter Ended March 31, 2020

  • Net sales increased 12.6% to $366.5 million; technology segment net sales increased 12.8% to $353.3 million; service revenues increased 8.6% to $48.9 million; financing segment net sales increased 7.8% to $13.2 million.
  • Adjusted gross billings increased 8.8% to $514.1 million.
  • Consolidated gross profit increased 13.0% to $91.8 million.
  • Consolidated gross margin was 25.1%, an increase of 10 basis points.
  • Net earnings decreased 12.0% to $13.2 million, reflecting $5.6 million of other income last year.
  • Adjusted EBITDA increased 20.0% to $23.5 million.
  • Diluted earnings per share decreased 11.6% to $0.99. Non-GAAP diluted earnings per share increased 20.4% to $1.24.

Fiscal Year Ended March 31, 2020

  • Net sales increased 15.7% to $1,588 million; technology segment net sales increased 15.1% to $1,530 million; service revenues increased 29.2% to $193.1 million; financing segment net sales increased 35.0% to $58.3 million.
  • Adjusted gross billings increased 16.1% to $2,228 million.
  • Consolidated gross profit increased 18.4% to $391.2 million.
  • Consolidated gross margin was 24.6%, an increase of 50 basis points.
  • Net earnings increased 9.3% to $69.1 million.
  • Adjusted EBITDA increased 18.9% to $119.4 million.
  • Diluted earnings per share increased 10.8% to $5.15. Non-GAAP diluted earnings per share increased 19.7% to $6.13.
 

HERNDON, Va.--(BUSINESS WIRE)-- 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, 2020.

Management Comment

“Fourth quarter results represented a strong finish to fiscal 2020, despite an impact from COVID-19. We achieved double-digit growth in revenue, gross profit and adjusted EBITDA, reflecting our ongoing focus on IT solutions that are in high demand,” said Mark Marron, President and Chief Executive Officer.

“For fiscal 2020, net sales increased by 15.7% year-over-year, with strong contributions from both segments. Services grew by 29% in fiscal 2020, reflecting greater demand for our expertise in assisting customers in designing, configuring, managing, and staffing their IT infrastructures. Adjusted gross billings for security products and services increased over 15% year-on-year, and revenue grew 35% in our financing segment. Gross margin of 24.6% expanded 50 basis points, driving both operating leverage and adjusted EBITDA growth.

“With the onset of the COVID-19 health crisis, we prioritized the health and safety of our employees, customers, and partners, and quickly activated business continuity plans to ensure ePlus remained fully operational. We implemented protocols to support our remote workforce and provided critical on-site staffing and engineering services in conformance with local ordinances and our customers’ COVID-19 requirements. The transition was smooth and accentuates our agile work environment. I am very proud of the tremendous effort and dedication shown by the ePlus team to transition our workforce, and provide exceptional service during a time of need by our customers.

“The financial impact of COVID-19 during the quarter was modest, as delayed or cancelled orders were mostly offset by new pandemic-related revenues, however the future is difficult to predict given the substantial impact of the pandemic on the overall economy. We have minimal exposure to the hardest-hit industries, and a proven ability to pivot to meet customers’ new COVID-19-driven requirements such as enabling remote workers, strengthening network and data center capabilities, and increasing security, especially in the cloud. With a strong balance sheet, we are able to meet our customers’ needs and execute opportunistic initiatives to support our growth strategy.

Fourth Quarter Results

For the fourth quarter ended March 31, 2020 as compared to the fourth quarter of the prior fiscal year ended March 31, 2019:

Consolidated net sales increased 12.6% to $366.5 million, from $325.4 million.

Technology segment net sales increased 12.8% to $353.3 million, from $313.2 million primarily from an increase in sales to customers in the telecom, media and entertainment industry and the healthcare industry. Service revenues increased 8.6% to $48.9 million, from $45.0 million due to increases across all our services offerings including professional and managed services, and staff augmentation.

Adjusted gross billings increased 8.8% to $514.1 million due, in part, to organic growth and the acquisition of ABS Technology in August 2019.

Financing segment net sales increased 7.8% to $13.2 million, from $12.3 million, primarily due to an increase in transactional gains and other financing revenue.

Consolidated gross profit increased 13.0% to $91.8 million, from $81.3 million. Consolidated gross margin increased to 25.1% from 25.0% last year, due to higher product margins.

Operating expenses increased 10.7% to $73.9 million, from $66.8 million, primarily due to an increase in salaries and variable compensation and additional costs associated with the acquisition and operation of ABS Technology. Our headcount increased 42 employees, or 2.7%, primarily from the acquisition.

Consolidated operating income increased 23.6% to $17.9 million.

Other expense of $0.2 million this year consists primarily of foreign currency transaction losses. Last year we had other income of $5.6 million, which includes $5.4 million as a distribution from a legal claim and $0.2 million of interest income and foreign currency gains.

Our effective tax rate for the current quarter was 24.9%, compared with 24.8% in the prior year quarter.

Net earnings decreased 12.0% to $13.2 million.

Adjusted EBITDA increased 20.0% to $23.5 million, from $19.6 million.

Diluted earnings per share was $0.99, compared with $1.12 in the prior year quarter. Non-GAAP diluted earnings per share was $1.24, compared with $1.03 last year.

Fiscal Year 2020 Results

For the fiscal year ended March 31, 2020 as compared to the prior fiscal year ended March 31, 2019:

Consolidated net sales increased 15.7% to $1,588.4 million, from $1,372.7 million.

Technology segment net sales increased 15.1% to $1,530.1 million, from $1,329.5 million, mainly attributable to an increase in sales to customers in the telecom, media and entertainment industry as well as healthcare and technology industries. Service revenues increased 29.2% to $193.1 million, from $149.5 million.

Adjusted gross billings increased 16.1% to $2,227.9 million due, in part, to organic growth as well as the acquisitions of SLAIT Consulting, LLC in January 2019 and ABS Technology in August 2019.

Financing segment net sales increased 35.0% to $58.3 million, from $43.2 million, primarily due to an increase in transactional gains from several large government related transactions.

Consolidated gross profit increased 18.4% to $391.2 million, from $330.4 million. Consolidated gross margin improved 50 basis points to 24.6%, compared with 24.1% last year, due to higher product margins as well as higher service revenues.

Operating expenses increased 18.0% to $295.9 million, from $250.9 million, primarily due to an increase in salaries and variable compensation and additional costs associated with the acquisitions and operations of SLAIT Consulting, LLC and ABS Technology.

Consolidated operating income increased 19.8% to $95.3 million.

Other income was $0.7 million and $6.7 million for the years ended March 31, 2020 and 2019, respectively, primarily due to distributions from various legal claims.

Our effective tax rate for the current period was 28.0%, compared with 26.7% in the prior year. The increase was due to a decrease in the tax benefit from the vesting of restricted stock.

Net earnings increased 9.3% to $69.1 million.

Adjusted EBITDA increased 18.9% to $119.4 million, from $100.4 million.

Diluted earnings per share was $5.15, compared with $4.65 in the prior year period. Non-GAAP diluted earnings per share was $6.13, compared with $5.12 last year.

Balance Sheet Highlights

As of March 31, 2020, ePlus had cash and cash equivalents of $86.2 million, compared with $79.8 million as of March 31, 2019. Total stockholders' equity was $486.1 million, compared with $424.3 million as of March 31, 2019. Total shares outstanding were 13.5 million and 13.6 million on March 31, 2020 and March 31, 2019, respectively.

Summary and Outlook

“Fiscal 2020 was a year of strong growth for ePlus, and we are well positioned in the marketplace to provide the digital infrastructure, cloud, and security solutions required by our customers. We continue to execute on our strategy of expanding services, including our managed and helpdesk services, and our cloud hosted offerings to strengthen our annuity-type revenues. Our industry-leading gross margin demonstrates the value of our service offerings in today’s dynamic marketplace.

“ePlus entered this challenging period with a strong balance sheet and a resilient business model. We continue to innovate and develop our offerings which support remote workforces while securing and optimizing customer’s network, data, cloud, and collaboration infrastructure, and we remain well-positioned to support the next phase of IT evolution,” Mr. Marron concluded.

Recent Corporate Developments/Recognitions

  • In the month of May:
    • ePlus announced that its Chief Financial Offer, Elaine Marion, was recognized by the Northern Virginia Technology Council as a finalist in the 2020 Greater Washington CFO awards.
  • In the month of April:
    • ePlus was engaged by a large financial institution to address an immediate and unexpected challenge to support 40,000 users to work from home. ePlus provided technical guidance to architect a solution and mobilized a team of engineers to rapidly build, configure, test, and deploy an extension of the organization’s existing VMware Horizon environment into Microsoft Azure.
    • ePlus announced that it is launching a new, informational webinar series, Secure Workforce Awareness Training (SWAT) to help enterprises better understand how to navigate cyber security technology with primarily remote workforces.
  • In the month of March:
    • ePlus announced that CRNâ, a brand of The Channel Company, has named ePlus to its 2020 Tech Elite 250 list.
  • In the month of February:
    • ePlus announced that, ePlus Technology, inc., has been named to the CRNâ 2020 Managed Service Provider (MSP) 500 list in the Elite category.
    • ePlus announced the launch of a freshly designed and updated website, www.eplus.com, that serves as a visual showcase of the company’s broad capabilities across the technology spectrum.
    • ePlus announced the launch of Carrier Expense Management, a managed service that allows organizations to reduce the cost, time, and complexity of managing multiple carriers and telecom/connectivity contracts across the globe.

Conference Call Information

ePlus will hold a conference call and webcast at 4:30 p.m. ET on May 21, 2020:

Date: May 21, 2020
Time: 4:30 p.m. ET
Live Call: (844)-603-5099, domestic, (825) 312-2246, international
Replay: (800) 585-8367, domestic, (416) 621-4642, international
Passcode: 7396374 (live and replay)
Webcast: http://www.eplus.com/investors (live and replay)

The replay of this webcast will be available approximately two hours after the call and be available through May 28, 2020.

About ePlus inc.

ePlus is a leading consultative technology solutions provider that helps customers imagine, implement, and achieve more from their technology. With the highest certifications from top technology partners and lifecycle services expertise across key areas including security, cloud, data center, collaboration, networking and emerging technologies, ePlus transforms IT from a cost center to a business enabler. Founded in 1990, ePlus has more than 1,500 associates serving a diverse set of customers in the U.S., Europe, and Asia-Pac. The Company is headquartered at 13595 Dulles Technology Drive, Herndon, VA, 20171. For more information, visit www.eplus.com, call 888-482-1122, or email info@eplus.com. Connect with ePlus on Facebook, LinkedIn, Twitter 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, the duration and impact of the COVID-19 pandemic, which could materially adversely affect our financial condition and results of operations and has resulted worldwide in governmental authorities imposing numerous unprecedented measures to try 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 downward pressure on prices; reduction of vendor incentive programs; and restrictions on our access to capital necessary to fund our operations; our ability to successfully perform due diligence and integrate acquired businesses; disruptions or a security breach in our or our vendor’s IT systems and data and audio communication networks; the possibility of goodwill impairment charges in the future; significant adverse changes in, reductions in, or losses of relationships with one or more of our largest volume customers or vendors; the demand for and acceptance of, our products and services; our ability to adapt our services to meet changes in market developments; 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 reserve adequately for credit losses; our ability to secure our own and our customers’ electronic and other confidential information and remain secure during a cyber-security attack; future growth rates in our core businesses; the impact of competition in our markets; our reliance on third parties to perform some of our service obligations to our customers; the possibility of defects in our products or catalog content data; our ability to adapt to changes in the IT industry and/or rapid changes in product offerings, including the proliferation of the cloud, infrastructure as a service and software as a service; our ability to realize our investment in leased equipment; 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, 2020

 

March 31, 2019

ASSETS

 

 

 

 

 

 

 

 

 

Current assets:

 

 

Cash and cash equivalents

 

$86,231

$79,816

Accounts receivable—trade, net

 

374,998

299,899

Accounts receivable—other, net

 

36,570

41,328

Inventories

 

50,268

50,493

Financing receivables—net, current

 

70,169

63,767

Deferred costs

 

22,306

17,301

Other current assets

 

9,256

7,499

Total current assets

 

649,798

560,103

 

 

 

Financing receivables and operating leases—net

 

74,158

59,032

Property, equipment and other assets

 

32,596

 

17,328

Goodwill

 

118,097

 

110,807

Other intangible assets—net

 

34,464

38,928

TOTAL ASSETS

 

$909,113

$786,198

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Current liabilities:

 

 

 

Accounts payable

 

$82,919

 

$86,801

Accounts payable—floor plan

 

127,416

116,083

Salaries and commissions payable

 

30,952

21,286

Deferred revenue

 

55,480

47,251

Recourse notes payable—current

 

37,256

28

Non-recourse notes payable—current

 

29,630

38,117

Other current liabilities

 

22,986

19,285

Total current liabilities

 

386,639

328,851

 

 

 

Non-recourse notes payable—long term

 

5,872

10,502

Deferred tax liability—net

 

2,730

4,915

Other liabilities

 

27,727

17,677

TOTAL LIABILITIES

 

422,968

361,945

 

 

 

 

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; 13,500 outstanding at March 31, 2020 and 13,611 outstanding at March 31, 2019

 

144

143

Additional paid-in capital

 

145,197

137,243

Treasury stock, at cost, 896 shares at March 31, 2020 and 693 shares at March 31, 2019

 

(68,424)

 

(53,999)

Retained earnings

 

410,219

341,137

Accumulated other comprehensive income—foreign currency translation adjustment

 

(991)

(271)

Total Stockholders' Equity

 

486,145

424,253

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$909,113

$786,198

 

ePlus inc. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

Year Ended March 31,

 

2020

2019

2020

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

 

 

 

 

 

 

Product

$317,621

 

$280,460

 

$1,395,288

 

$1,223,195

 

Services

48,855

 

44,974

 

193,116

 

149,478

 

Total

366,476

 

325,434

 

1,588,404

 

1,372,673

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

 

 

 

 

Product

244,638

 

216,662

 

1,076,773

 

952,464

 

Services

30,013

 

27,500

 

120,440

 

89,821

 

Total

274,651

 

244,162

 

1,197,213

1,042,285

 

 

 

 

 

 

 

 

 

 

Gross profit

91,825

 

81,272

 

391,191

 

330,388

 

 

 

 

 

 

 

 

Selling, general, and administrative

69,782

 

62,683

 

279,182

237,082

 

Depreciation and amortization

3,489

 

3,574

 

14,156

 

11,824

 

Interest and financing costs

676

 

545

 

2,574

1,948

 

Operating expenses

73,947

 

66,802

 

295,912

250,854

 

 

 

 

 

 

 

Operating income

17,878

 

14,470

 

95,279

79,534

 

 

 

 

 

 

 

Other income (expense)

(232)

 

5,556

 

680

6,696

 

 

 

 

 

 

Earnings before taxes

17,646

 

20,026

 

95,959

 

86,230

 

 

 

 

 

 

Provision for income taxes

4,400

 

4,974

 

26,877

23,038

 

 

 

 

 

 

Net earnings

$13,246

 

$15,052

 

$69,082

$63,192

 

 

 

 

 

 

 

 

Net earnings per common share—basic

$0.99

 

$1.12

 

$5.18

$4.70

 

Net earnings per common share—diluted

$0.99

 

$1.12

 

$5.15

$4.65

 

 

 

 

 

 

 

 

Weighted average common shares outstanding—basic

13,318

 

13,391

 

13,327

 

13,448

 

Weighted average common shares outstanding—diluted

13,390

 

13,491

 

13,415

 

13,578

 

 

Technology Segment

Three Months Ended March 31,

 

Year Ended March 31,

 

 

2020

2019

% Change

2020

2019

% Change

 

 

(in thousands)

 

 

 

(in thousands)

 

 

 

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Product

$304,402

 

$268,203

 

13.5%

 

$1,337,022

 

$1,180,042

 

13.3%

 

Services

48,855

 

44,974

 

8.6%

 

193,116

 

149,478

 

29.2%

 

Total

353,257

 

313,177

 

12.8%

 

1,530,138

 

1,329,520

 

15.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

 

 

 

 

 

 

 

 

Product

243,601

 

214,726

 

13.4%

 

1,069,110

 

945,037

 

13.1%

 

Services

30,013

 

27,500

 

9.1%

 

120,440

 

89,821

 

34.1%

 

Total

273,614

 

242,226

 

13.0%

 

1,189,550

 

1,034,858

 

14.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

79,643

70,951

12.3%

340,588

294,662

15.6%

 

 

Selling, general, and administrative

66,508

59,913

11.0%

264,123

226,112

16.8%

 

Depreciation and amortization

3,461

3,569

(3.0%)

14,016

11,812

18.7%

 

Interest and financing costs

294

 

-

 

nm

 

294

 

-

 

nm

 

Operating expenses

70,263

63,482

10.7%

278,433

237,924

17.0%

 

 

Operating income

$9,380

$7,469

25.6%

$62,155

$56,738

9.5%

 

Adjusted gross billings

$514,130

$472,391

8.8%

$2,227,885

$1,918,995

16.1%

 

Adjusted EBITDA

$14,945

$12,503

19.5%

$85,840

$77,202

11.2%

 

 

Technology Segment Net Sales by Customer End Market

 

 

 

 

Twelve Months Ended March 31,

 

 

2020

 

2019

 

% Change

 

 

 

 

 

 

Technology

21%

 

22%

 

(1%)

Telecom, Media, & Entertainment

19%

 

13%

 

6%

SLED

16%

 

17%

 

(1%)

Healthcare

15%

 

15%

 

-

Financial Services

13%

 

15%

 

(2%)

All others

16%

 

18%

 

(2%)

Total

100%

 

100%

 

 

 

Financing Segment

Three Months Ended March 31,

 

Year Ended March 31,

 

 

2020

2019

% Change

2020

2019

% Change

 

(in thousands)

 

 

 

(in thousands)

 

 

 

Net sales

$13,219

 

$12,257

 

7.8%

 

$58,266

 

$43,153

 

35.0%

Cost of sales

1,037

 

1,936

 

(46.4%)

 

7,663

 

7,427

 

3.2%

Gross profit

12,182

 

10,321

 

18.0%

 

50,603

 

35,726

 

41.6%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general, and administrative

3,274

2,770

18.2 %

15,059

10,970

37.3%

Depreciation and amortization

28

5

460.0%

140

12

1,066.7%

Interest and financing costs

382

545

(29.9%)

2,280

1,948

17.0%

Operating expenses

3,684

3,320

11.0%

17,479

12,930

35.2%

 

Operating income

$8,498

$7,001

21.4%

$33,124

$22,796

45.3%

Adjusted EBITDA

$8,586

$7,108

20.8%

$33,519

$23,213

44.4%

 

ePlus inc. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP INFORMATION

We included reconciliations below for the following non-GAAP information: (i) Adjusted Gross Billings, (ii) Adjusted EBITDA, (iii) Segment Adjusted EBITDA, (iv) non-GAAP Net Earnings and (v) non-GAAP Net Earnings per Common Share - Diluted.

We define adjusted gross billings as our technology segment net sales calculated in accordance with GAAP, adjusted to exclude the costs incurred related to sales of third-party maintenance, software assurance and subscription/SaaS licenses, and services.

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.

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 non-GAAP adjusted gross billings, 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,

 

2020

 

2019

 

2020

 

2019

 

(in thousands)

 

 

 

 

 

 

 

 

Technology segment net sales

$353,257

 

$313,177

 

$1,530,138

 

$1,329,520

Costs incurred related to sales of third-party
maintenance, software assurance and
subscription / SaaS licenses, and services

 

160,873

 

 

159,214

 

 

697,747

 

 

589,475

Adjusted gross billings

$514,130

 

$472,391

 

$2,227,885

 

$1,918,995

 

Three Months Ended March 31,

 

Year Ended March 31,

 

2020

 

2019

 

2020

 

2019

 

(in thousands)

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

$13,246

 

$15,052

 

$69,082

 

$63,192

Provision for income taxes

4,400

 

4,974

 

26,877

 

23,038

Depreciation and amortization [1]

3,489

 

3,574

 

14,156

 

11,824

Share based compensation

1,933

 

1,826

 

7,954

 

7,244

Acquisition and integration expense

(63)

 

(259)

 

1,676

 

1,813

Interest and financing costs

294

 

-

 

294

 

-

Other (income) expense [2]

232

 

(5,556)

 

(680)

 

(6,696)

Adjusted EBITDA

$23,531

 

$19,611

 

$119,359

 

$100,415

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

Year Ended March 31,

 

2020

 

2019

 

2020

 

2019

 

(in thousands)

Technology Segment

 

 

 

 

 

 

 

Operating income

$9,380

 

$7,469

 

$62,155

 

$56,738

Depreciation and amortization [1]

3,461

 

3,569

 

14,016

 

11,812

Share based compensation

1,873

 

1,724

 

7,699

 

6,839

Acquisition and integration expense

(63)

 

(259)

 

1,676

 

1,813

Interest and financing costs

294

 

-

 

294

 

-

Adjusted EBITDA

$14,945

 

$12,503

 

$85,840

 

$77,202

 

 

 

 

 

 

 

 

Financing Segment

 

 

 

 

 

 

 

Operating income

$8,498

 

$7,001

 

$33,124

 

$22,796

Depreciation and amortization [1]

28

 

5

 

140

 

12

Share based compensation

60

 

102

 

255

 

405

Adjusted EBITDA

$8,586

 

$7,108

 

$33,519

 

$23,213

 

 

 

 

 

 

 

 

 

  

Three Months Ended March 31,

 

Year Ended March 31,

 

2020

 

2019

 

2020

 

2019

 

(in thousands)

GAAP: Earnings before taxes

$17,646

 

$20,026

 

$95,959

 

$86,230

Share based compensation

1,933

 

1,826

 

7,954

 

7,244

Acquisition and integration expense

(63)

 

(259)

 

1,676

 

1,813

Acquisition related amortization expense [3]

2,264

 

2,388

 

9,217

 

7,423

Other (income) expense [2]

232

 

(5,556)

 

(680)

 

(6,696)

Non-GAAP: Earnings before taxes

22,012

 

18,425

 

114,126

 

96,014

 

 

 

 

 

 

 

 

GAAP: Provision for income taxes

4,400

 

4,974

 

26,877

 

23,038

Share based compensation

482

 

454

 

2,218

 

1,988

Acquisition and integration expense

(16)

 

(64)

 

490

 

522

Acquisition related amortization expense [3]

549

 

573

 

2,487

 

1,916

Other (income) expense [2]

58

 

(1,380)

 

(200)

 

(1,702)

Tax benefit on restricted stock

-

 

-

 

87

 

672

Non-GAAP: Provision for income taxes

5,473

 

4,557

 

31,959

 

26,434

 

 

 

 

 

 

 

 

Non-GAAP: Net earnings

$16,539

 

$13,868

 

$82,167

 

$69,580

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

Year Ended March 31,

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

GAAP: Net earnings per common share – diluted

$0.99

 

$1.12

 

$5.15

 

$4.65

 

 

 

 

 

 

 

 

Share based compensation

0.11

 

0.10

 

0.43

 

0.38

Acquisition and integration expense

-

 

(0.01)

 

0.09

 

0.09

Acquisition related amortization expense [3]

0.13

 

0.13

 

0.51

 

0.40

Other (income) expense [2]

0.01

 

(0.31)

 

(0.04)

 

(0.35)

Tax benefit on restricted stock

-

 

-

 

(0.01)

 

(0.05)

Total non-GAAP adjustments – net of tax

$0.25

 

($0.09)

 

$0.98

 

$0.47

 

 

 

 

 

 

 

 

Non-GAAP: Net earnings per common share – diluted

$1.24

 

$1.03

 

$6.13

 

$5.12

[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.

 


Source: ePlus inc.

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