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ePlus Reports Record Annual Net Earnings of $10.2 MillionFully Diluted Earnings Per Share is $1.02
Earnings Conference Scheduled for Thursday June 17th HERNDON, VA – June 15, 2004 – ePlus inc. (Nasdaq NM: PLUS – news) a leading provider of Enterprise Cost Management (ECM) solutions, announced today net earnings of $10.2 million for its fiscal year ended March 31, 2004, a 4.5% increase as compared to $9.7 million recorded the prior fiscal year. Fully diluted earnings per share for the twelve-month period increased 5.9% to $1.02 as compared to $0.96 the prior period. Revenues increased 10.3% to $331 million from $300 million the prior year. On March 31, 2004, weighted average diluted shares outstanding were 10 million shares as compared to 10.1 million shares the prior year. Actual shares issued and outstanding on March 31, 2004 were 9.3 million shares.
For the quarter ended March 31, 2004 net earnings decreased 1.9% to $2.55 million from $2.61 million the prior year, and fully diluted earnings per share decreased 4.2% to $0.26 from $0.27. Revenues for the quarter increased 17.6% to $85.3 million as compared to $72.5 million recorded in the fourth quarter of 2003.
“We are pleased to announce another year of earnings and revenue growth” stated Phillip G. Norton, chairman, president and chief executive officer of ePlus. “We continue to expand our Enterprise Cost Management solution with the addition of new software and services, and we added many new customers throughout the year to all of our business segments.”
Investors are encouraged to read the company’s Form 10-K for a complete financial statement. Copies will be available at www.eplus.com, www.sec.gov, or by contacting the company at info@eplus.com or (888) 482-1122.
Conference Call Scheduled for Thursday, June 17th at 11:00 A.M. EST
Live Event Information
The Company will host a conference call at 11:00 a.m. on Thursday, June 17th, 2004. To listen, please call (973) 339-3086 or toll-free (800) 683-1535. Ask to be connected to the ePlus conference call. A live audio Webcast will be available at the following links:
Windows Media: http://orion.calleci.com/servlet/estreamgetevent?id=3871&folder=webstream
Real Player: http://orion.calleci.com/servlet/estreamgetevent?id=3870&folder=webstream.
Archive Event Information
A telephone replay of the conference call will be available by calling (877) 519-4471 or (973) 341-3080, and entering the passcode 4853353 beginning at about 2:00 P.M. on June 17th through June 29th. A web audio archive will be available at the following links:
Windows Media: http://orion.calleci.com/servlet/estreamgetevent?id=3873&folder=webstream
Real Player: http://orion.calleci.com/servlet/estreamgetevent?id=3872&folder=webstream.
The web links for the call can be accessed at www.eplus.com/investor
About ePlus inc.
A leading provider of Enterprise Cost Management, ePlus provides a comprehensive solution to reduce the costs of purchasing, owning, and financing goods and services. ePlus Enterprise Cost Management (eECM) packages business process outsourcing, eProcurement, asset management, product and catalog content management, supplier enablement, strategic sourcing, financial services and document access and collaboration into a single integrated solution, all based on ePlus' leading business application software. The company is headquartered in Herndon, VA, and has more than 30 locations in the U.S and Canada. For more information, visit www.eplus.com, call 888-482-1122 or email info@eplus.com.
ePlus, ePlus Leasing, ePlus Suite, Service+, Finance+, Manage+, Procure+, Content+, eECM, ePlus Enterprise Cost Management, Content+, OneSource, Pay+ , ePlusMarket, Spend+, Source+ and/or other ePlus products referenced herein are either registered trademarks or trademarks of ePlus inc. in the U.S. and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release, which are not historical facts, may be deemed to be "forward-looking statements". Actual and anticipated future results may vary due to certain risks and uncertainties, including, without limitation, the existence of demand for, and acceptance of, our services; our ability to adapt our services to meet changes in market developments; the impact of competition in our markets; the possibility of defects in our products or catalog content data; our ability to hire and retain sufficient personnel; our ability to protect our intellectual property; the creditworthiness of our customers; our ability to raise capital and obtain non-recourse financing for our transactions; our ability to realize our investment in leased equipment; our ability to reserve adequately for credit losses; fluctuations in our operating results; our reliance on our management team; and other risks or uncertainties detailed in our Securities and Exchange Commission filings.
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ePlus inc. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF EARNINGS |
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UNAUDITED |
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Year Ended March 31, |
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2003 |
2004 |
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REVENUES |
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Sales of product |
$ 228,769,966 |
$267,898,937 |
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Sales of leased equipment |
6,095,830 |
- |
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234,865,796 |
267,898,937 |
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Lease revenues |
50,520,293 |
51,253,518 |
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Fee and other income |
14,260,057 |
11,405,033 |
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64,780,350 |
62,658,551 |
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TOTAL REVENUES (1) |
299,646,146 |
330,557,488 |
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COSTS AND EXPENSES |
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Cost of sales, product |
201,277,000 |
236,283,350 |
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Cost of sales, leased equipment |
5,891,789 |
- |
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207,168,789 |
236,283,350 |
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Direct lease costs |
6,582,409 |
10,560,586 |
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Professional and other fees |
3,188,046 |
3,700,795 |
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Salaries and benefits |
43,426,999 |
41,325,224 |
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General and administrative expenses |
14,499,261 |
14,630,731 |
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Interest and financing costs |
8,308,382 |
6,847,072 |
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76,005,097 |
77,064,408 |
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TOTAL COSTS AND EXPENSES (2) |
283,173,886 |
313,347,758 |
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Earnings before provision for income taxes |
16,472,260 |
17,209,730 |
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Provision for income taxes |
6,759,551 |
7,055,989 |
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NET EARNINGS |
$9,712,709 |
$10,153,741 |
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NET EARNINGS PER COMMON SHARE - BASIC |
$0.97 |
$1.09 |
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NET EARNINGS PER COMMON SHARE - DILUTED |
$0.96 |
$1.02 |
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WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC |
10,061,088 |
9,332,324 |
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WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED |
10,109,809 |
9,976,458 |
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(1) Includes amounts from related parties of $147,305, $145,962 and $302,968 for the fiscal years ended March 31, 2002, 2003 and 2004, respectively. |
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(2) Includes amounts from related parties of $902,818, $486,520 and $443,065 for the fiscal years ended March 31, 2002, 2003 and 2004, respectively. |
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| ePlus inc. AND SUBSIDIARIES |
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| CONSOLIDATED BALANCE SHEETS |
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| UNAUDITED |
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As of March 31, 2003 |
As of March 31, 2004 |
| ASSETS |
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| Cash and cash equivalents |
$27,784,090 |
$25,155,011 |
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Accounts receivable, net of allowance for doubtful accounts of
$3,346,055 and $1,584,358 as of March 31, 2003 and 2004,
respectively |
38,384,841 |
51,188,640 |
| Notes receivable |
53,098 |
51,986 |
| Inventories |
1,373,168 |
899,748 |
| Investment in leases and leased equipment - net |
182,169,324 |
186,667,141 |
| Property and equipment - net |
5,249,087 |
5,230,473 |
| Other assets |
4,779,946 |
4,765,781 |
| Goodwill |
19,147,132 |
20,243,310 |
| TOTAL ASSETS |
$278,940,686 |
$294,202,090 |
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| LIABILITIES AND STOCKHOLDERS' EQUITY |
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| LIABILITIES |
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| Accounts payable - equipment |
$5,635,776 |
$9,993,077 |
| Accounts payable - trade |
25,914,385 |
32,140,670 |
| Salaries and commissions payable |
619,860 |
583,934 |
| Accrued expenses and other liabilities |
13,402,101 |
11,983,798 |
| Recourse notes payable |
2,736,298 |
5,863 |
| Nonrecourse notes payable |
116,255,194 |
117,857,208 |
| Deferred tax liability |
4,760,029 |
10,053,226 |
| Total Liabilities |
169,323,643 |
182,617,776 |
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| COMMITMENTS AND CONTINGENCIES |
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| STOCKHOLDERS' EQUITY |
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Preferred stock, $.01 par value; 2,000,000 shares authorized; none
issued or outstanding |
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Common stock, $.01 par value; 50,000,000 authorized,
10,540,135 issued and 9,451,651 outstanding at March 31, 2003;
and 25,000,000 authorized, 10,717,242 issued and 8,939,958
outstanding at March 31, 2004 |
$105,400 |
$107,172 |
| Additional paid-in capital |
62,905,727 |
64,339,988 |
| Treasury stock, at cost, 1,088,484 and 1,777,284 shares,
respectively |
(7,511,124) |
(17,192,886) |
| Retained earnings |
54,057,732 |
64,211,473 |
| Accumulated other comprehensive income - |
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| Foreign currency translation adjustment |
59,308 |
118,567 |
| Total Stockholders' Equity |
109,617,043 |
111,584,315 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$278,940,686 |
$294,202,090 |
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