ePlus Reports Fourth Quarter and Fiscal Year 2013 Results
Earnings Conference Call Scheduled for June 5, 2013
HERNDON, VA - June 4, 2013 - ePlus inc. (Nasdaq NGM: PLUS - news), a leading provider of technology solutions, today announced financial results. For the fourth quarter of fiscal year 2013, which ended March 31, 2013, total revenues increased 7.9% to $236.3 million compared to $219.0 million in the quarter ended March 31, 2012. Net earnings increased 99.7% to $7.7 million in the fourth quarter of fiscal year 2013, as compared to $3.9 million in the fourth quarter of the prior year. Fully diluted earnings per common share increased 97.9% to $0.95 per share compared from $0.48 per share in the same quarter last year.
For the year ended March 31, 2013, total revenue increased 19.1% to $983.1 million, and total costs and expenses increased 17.6% to $924.4 million as compared to the prior year. Net earnings were $34.8 million for the year, or $4.32 per diluted share, an increase of 49.1%, as compared to $23.4 million, or $2.79 per diluted share, during the year ended March 31, 2012.
"We are pleased with the financial results for the year and quarter," said Phillip G. Norton, Chairman, President and Chief Executive Officer. "For the year, the percentage increase in earnings was more than twice the percentage increase in revenues. This demonstrates both strength of our core businesses and strategy, as gross margin increased by twenty basis points, as well as the scalability and efficiency of operations. For the fourth quarter, which is typically our softest quarter as there are fewer drivers of demand such as customer or vendor fiscal year-ends, revenues increased 7.9% and margins remained strong as compared to the prior year."
Mr. Norton continued, "Our focus on delivering the advanced technology, complex, multi-vendor solutions which our customers demand has continued to be the right strategy for ePlus. In particular, our focus on cloud enablement including architecture, design, integration and implementation of advanced public, private, and hybrid clouds, collaboration and mobility, and security solutions, is resonating with customers including cloud providers. We believe that our solution set and engineering delivery capabilities continue to differentiate ePlus from the competition."
As of March 31, 2013, the Company had $53.7 million of cash and cash equivalents and short-term investments, as compared to $41.2 million on March 31, 2012. In December 2012, the Company declared and paid a special cash dividend of $2.50 per common share which utilized $20.1 million in cash. As of March 31, 2013, the Company had total stockholders' equity of $238.2 million and 8.1 million shares outstanding, as compared to $219.6 million and 8.0 million shares, respectively, as of March 31, 2012.
Results of Operations - Three Months Ended March 31, 2013
The Company presents its financial results in two segments, the technology and financing segments. The technology segment sells information technology equipment, software, and related services primarily to corporate customers on a nationwide basis, and also provides Internet-based business-to-business supply chain management solutions for information technology and other operating resources. The financing segment offers lease and other financing solutions to commercial and governmental entities nationwide.
The results of operations for the technology segment for the three months ended March 31, 2013 and 2012 were as follows (in thousands):