ePlus Reports Third Quarter and First Nine Months Results

Third Quarter Gross Profit Increased 5.3% And Gross Margin Expanded Year Over Year Third Quarter Fiscal Year 2025 • Net sales increased 0.4% to $511.0 million; technology business net sales declined 0.2% to $493.1 million; service revenues increased 52.2% to $113.6 million. • Technology business gross billings increased 6.6% to $849.5 million. • Consolidated gross profit increased 5.3% to $140.9 million. • Consolidated gross margin was 27.6%, compared with 26.3% last year. • Net earnings decreased 11.5% to $24.1 million. • Adjusted EBITDA decreased 15.2% to $39.1 million. • Diluted earnings per share decreased 10.8% to $0.91. Non-GAAP diluted earnings per share decreased 10.2% to $1.06. First Nine Months of Fiscal Year 2025 • Net sales decreased 6.0% to $1,570.7 million; technology business net sales decreased 6.7% to $1,521.9 million; service revenues increased 38.6% to $295.5 million. • Technology business gross billings decreased 0.2% to $2,491.5 million. • Consolidated gross profit increased 0.7% to $423.4 million. • Consolidated gross margin was 27.0%, compared with 25.2% last year. • Net earnings decreased 11.7% to $82.8 million. • Adjusted EBITDA decreased 12.5% to $134.4 million. • Diluted earnings per share decreased 11.9% to $3.10. Non-GAAP diluted earnings per share decreased 10.8% to $3.56. , /PRNewswire/ -- ePlus inc. (NASDAQ: PLUS), a leading provider of technology and financing solutions, today announced financial results for the three months and nine months ended December 31, 2024. Management Comment "Our third quarter results reflect the benefit of our investment in services and the continuing industry shift toward ratable, subscription and 'as a service' revenue recognition," said Mark Marron, president and CEO of ePlus. "Our services business, driven by organic and inorganic growth, increased 52% in the third quarter, across both managed and professional services. We are also benefitting from acquisitions completed over the past two years which have enhanced our suite of service offerings. This strong services performance in our technology business, however, was offset by lower product sales and a higher proportion of netted down product revenues given the acceleration of the industry shift underway. "Technology business gross billings increased 6.6% underscoring solid customer demand for our suite of solutions offerings. Consolidated gross profit increased 5.3% and consolidated gross margin expanded 130 basis points, on a lower revenue base as we benefitted from higher proportion of netted down revenues, and increased contribution from higher margin services. We continue to maintain our strong positioning in the fast-growing categories that our customers require and our strong balance sheet positions us well to advance our organic and inorganic growth strategy over time." Third Quarter Fiscal Year 2025 Results For the third quarter ended December 31, 2024, as compared to the third quarter ended December 31, 2023: Consolidated net sales increased 0.4% to $511.0 million, from $509.1 million. Technology business net sales declined slightly to $493.1 million, from $494.2 million, as lower product sales were offset by higher service revenues. Technology business gross billings increased 6.6% to $849.5 million, from $797.0 million. Product sales declined 9.5% to $379.5 million, from $419.5 million and, product margin was 22.1%, up from 21.9% last year, both due to a higher proportion of third-party maintenance, software subscriptions, and services sold in the current quarter, which are recorded on a net basis. Product sales to certain enterprise customers at lower overall margins decreased product margins but was offset by contribution from the netted down revenues. Professional service revenues increased 73.6% from last year to $69.5 million, from $40.0 million, primarily due to the acquisition of Bailiwick Services, LLC. Gross margins declined to 40.1%, from 43.3% due to a shift in the mix of services provided. Managed service revenues increased 27.5% to $44.2 million due to ongoing growth in these offerings, including Enhanced Maintenance Support and Cloud services. Gross profit from managed services increased 19.5% from last year due to the increase in revenues. Managed service margins declined to 29.8%, from 31.8%. Financing business segment net sales increased 19.8% to $17.8 million primarily due to increased proceeds from sales of equipment. Gross profit in the financing business segment increased $2.3 million, from $13.5 million last year to $15.8 million this year, due to the increase in net sales. Consolidated gross profit increased 5.3% to $140.9 million, from $133.8 million. Technology business gross profit increased 4.0% to $125.0 million due to increased gross profit from the professional and managed services segments offset by a decline in gross profit from the product segment. The financing business segment gross profit increased 16.9% to $15.8 million. Consolidated gross margin was 27.6%, compared with 26.3% last year. Operating expenses were $112.4 million, up 17.3% from $95.8 million last year, primarily due to increases in salaries and benefits from additional headcount. Our headcount at the end of the third quarter of 2025 was 2,291, up 394 from a year ago, due to the acquisition of Bailiwick Services, LLC on August 19, 2024, and Peak Resources on January 27, 2024. Of the 394 additional employees, 355 were customer facing employees. Consolidated operating income decreased 25.1% to $28.5 million and earnings before tax decreased 16.3% to $32.2 million. Other income was $3.7 million compared to $0.4 million last year due to higher interest income and foreign currency transaction gains. Our effective tax rate for the current quarter was 25.0%, lower than the prior year quarter of 29.0%, primarily due to lower state taxes. Net earnings decreased 11.5% to $24.1 million. Adjusted EBITDA in the technology business declined 25.1% and increased 23.1% in the financing business segment, and when combined, resulted in a consolidated decrease of 15.2% to $39.1 million. Diluted earnings per share was $0.91, compared with $1.02 in the prior year quarter. Non-GAAP diluted earnings per share was $1.06, compared with $1.18 in the prior year quarter. First Nine Months of Fiscal Year 2025 Results For the nine months ended December 31, 2024, as compared to the nine months ended December 31, 2023: Consolidated net sales decreased 6.0% to $1,570.7 million, from $1,670.8 million. Technology business net sales decreased 6.7% to $1,521.9 million, from $1,631.8 million, due to lower product sales, offset by higher service revenues. Technology business gross billings decreased 0.2% to $2,491.5 million, from $2,495.5 million. Product sales decreased 13.5% to $1,226.4 million, from $1,418.6 million, due to declines in customer demand, as well as a shift in mix. Gross profit from product segment sales decreased 11.7% to $271.9 million, from $308.1 million, due to lower sales combined with a shift in mix towards third-party maintenance and services, which are recorded on a net basis. Professional service revenues increased 48.1% primarily due to the acquisition of Bailiwick Services, LLC. Gross margins declined slightly to 40.8% from 42.0% for the same period in the prior year. Managed service revenues increased 27.7% to $126.8 million, from $99.3 million, due to ongoing growth in these offerings, including Enhanced Maintenance Support, Cloud and Service Desk services. Gross profit from managed services increased 23.6% to $38.3 million, from $31.0 million, due to the increase in revenues. Gross margins declined slightly to 30.2% from 31.2% last year. Financing business segment net sales increased 24.9% to $48.8 million, from $39.1 million, due to higher transactional gains and portfolio earnings offset by lower post-contract earnings. Gross profit in the financing business segment increased $10.7 million primarily due to the increase in sales. Consolidated gross profit increased to $423.4 million, from $420.4 million. Consolidated gross margin was 27.0%, compared with last year's gross margin of 25.2%, due to higher product margins. Operating expenses were $316.7 million, up 8.7% from $291.2 million last year, primarily due to increases in salaries and benefits and general and administrative costs, both of which were due to increases in personnel. The increase in depreciation and amortization was due to the acquisition of Bailiwick Services, LLC. Consolidated operating income decreased 17.4% to $106.7 million. Earnings before tax decreased 13.0% to $113.0 million. Other income was $6.3 million compared to $0.7 million last year, primarily due to higher interest income. Our effective tax rate for the current year period was 26.7%, slightly lower than last year's 27.8%. Net earnings decreased 11.7% to $82.8 million. Adjusted EBITDA decreased 12.5% to $134.4 million. Diluted earnings per common share was $3.10 for the nine months ended December 31, 2024, compared with $3.52 in the prior year. Non-GAAP diluted earnings per common share was $3.56, compared with $3.99 in the prior year. Balance Sheet Highlights As of December 31, 2024, cash and cash equivalents increased slightly to $253.1 million, from $253.0 million as of March 31, 2024, as cash generated from operations was used for working capital needs, the acquisition of Bailiwick Services, LLC and repurchases of our common stock. Inventory decreased 29.1% to $99.0 million compared with $139.7 million as of March 31, 2024. Total stockholders' equity as of December 31, 2024 was $962.3 million, compared with $901.8 million as of March 31, 2024. Total shares outstanding were 26.7 million as of December 31, 2024, and 27.0 million as of March 31, 2024. Fiscal Year 2025 Guidance Fiscal year 2025 net sales are now expected to be in the range of $2.07 billion to $2.11 billion, and the adjusted EBITDA range is now expected to be $165.0 million to $171.0 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, 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, we are excited about the opportunities we see in areas including AI, cybersecurity and cloud, and are confident in our strategy of investing in these faster growth offerings. We will continue to prioritize investments in these areas as we build upon our broad suite of solutions. Importantly, our cash position is strong and our balance sheet is healthy which provides flexibility to support our growth initiatives, including organic growth in customer facing headcount and acquisitions," concluded Mr. Marron. Recent Corporate Developments/Recognitions In the third quarter, ePlus: Achieved ISO 9001 Certification Launched Secure GenAI Accelerator Additionally, effective January 3, 2025, ePlus welcomed Melissa Ballenger as a new member of the Board of Directors. Conference Call Information ePlus will hold a conference call and webcast at 4:30 p.m. ET on February 5, 2025: Date: February 5, 2025 Time: 4:30 p.m. ET Audio Webcast (Live & Replay): https://events.q4inc.com/attendee/412924671 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: 5394845# (live call and replay) A replay of the call will be available approximately two hours after the call through February 12, 2025. 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 is a customer-first, services-led, and results-driven industry leader offering transformative technology solutions and services to provide the best customer outcomes. Offering a full portfolio of solutions, including artificial intelligence, security, cloud and data center, networking, and collaboration, as well as managed, consultative and professional services, ePlus works closely with organizations across many industries to successfully navigate business challenges. With a long list of industry-leading partners and more than 2,200 employees, our expertise has been honed over more than three decades, giving us specialized yet broad levels of experience and knowledge. ePlus is headquartered in Virginia, with locations in the United States, United Kingdom, Europe, and Asia‐Pacific. For more information, visit www.eplus.com, call 888-482-1122, or email [email protected]. 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. 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 wages and our ability to increase prices to our customers, negative impacts to the arrangements that have pricing commitments over the term of an agreement and/or the loss of key lenders or constricting credit markets as a result of changing interest rates, which may result in adverse changes in our results of operations and financial position; significant adverse changes in our relationship with one or more of our larger customer accounts or vendors, including decreased account profitability, reductions in contracted services, or a loss of such relationships; a material decrease in the credit quality of our customer base, or a material increase in our credit losses, including by the federal government's actual or attempted termination for convenience, other contract termination or non-performance; our ability to remain secure during a cybersecurity attack or other information technology ("IT") outage, including disruptions in our, our vendors or other third party's 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 and appropriately providing required notice and disclosure of cybersecurity incidents when and if necessary; 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 to maintain certain customer relationships, and our ability to hire, train, and retain sufficient qualified personnel by recruiting and retaining highly skilled, competent personnel, and vendor certifications; risks relating to use or capabilities of artificial intelligence ("AI") including social and ethical risks; our ability to manage a diverse product set of solutions, including AI products and services, 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 ("IaaS"), software as a service ("SaaS"), platform as a service ("PaaS"), 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, perform sufficient due diligence prior to completing an acquisition, successfully integrate a completed acquisition, or identify an opportunity for or successfully completing a business disposition, may affect our earnings; our ability to raise capital, maintain or increase as needed our lines of credit with vendors or our floor plan 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 either as a result of new information, future events or otherwise, except as required by applicable U.S. securities law. ePlus inc. AND SUBSIDIARIES UNAUDITED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) December 31, 2024 March 31, 2024 ASSETS Current assets: Cash and cash equivalents $253,074 $253,021 Accounts receivable—trade, net 594,175 644,616 Accounts receivable—other, net 62,280 46,884 Inventories 99,021 139,690 Financing receivables—net, current 148,758 102,600 Deferred costs 67,945 59,449 Other current assets 51,445 27,269 Total current assets 1,276,698 1,273,529 Financing receivables and operating leases—net 87,636 79,435 Deferred tax asset 6,087 5,620 Property, equipment and other assets--net 104,778 89,289 Goodwill 202,794 161,503 Other intangible assets—net 87,783 44,093 TOTAL ASSETS $1,765,776 $1,653,469 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Current liabilities: Accounts payable $313,046 $315,676 Accounts payable—floor plan 115,744 105,104 Salaries and commissions payable 52,727 43,696 Deferred revenue 154,273 134,596 Non-recourse notes payable—current 24,173 23,288 Other current liabilities 36,848 34,630 Total current liabilities 696,811 656,990 Non-recourse notes payable—long-term 9,622 12,901 Other liabilities 97,003 81,799 TOTAL LIABILITIES 803,436 751,690 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; 26,703 outstanding at December 31, 2024 and 26,952 outstanding at March 31, 2024 276 274 Additional paid-in capital 192,087 180,058 Treasury stock, at cost, 880 shares at December 31, 2024 and 447 shares at March 31, 2024 (57,639) (23,811) Retained earnings 825,760 742,978 Accumulated other comprehensive income—foreign currency translation adjustment 1,856 2,280 Total Stockholders' Equity 962,340 901,779 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,765,776 $1,653,469 ePlus inc. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Three Months Ended December 31, Nine Months Ended December 31, 2024 2023 2024 2023 Net sales Product $397,318 $434,371 $1,275,172 $1,457,636 Services 113,647 74,684 295,503 213,205 Total 510,965 509,055 1,570,675 1,670,841 Cost of sales Product 297,434 328,908 959,027 1,116,046 Services 72,646 46,337 188,291 134,347 Total 370,080 375,245 1,147,318 1,250,393 Gross profit 140,885 133,810 423,357 420,448 Selling, general, and administrative 104,181 89,381 296,760 272,331 Depreciation and amortization 7,676 5,399 18,260 15,821 Interest and financing costs 517 983 1,639 3,054 Operating expenses 112,374 95,763 316,659 291,206 Operating income 28,511 38,047 106,698 129,242 Other income (expense), net 3,650 366 6,302 673 Earnings before taxes 32,161 38,413 113,000 129,915 Provision for income taxes 8,028 11,131 30,218 36,122 Net earnings $24,133 $27,282 $82,782 $93,793 Net earnings per common share—basic $0.91 $1.02 $3.12 $3.53 Net earnings per common share—diluted $0.91 $1.02 $3.10 $3.52 Weighted average common shares outstanding—basic 26,495 26,618 26,568 26,598 Weighted average common shares outstanding—diluted 26,620 26,697 26,727 26,665 Technology Business Three Months Ended December 31, Nine Months Ended December 31, 2024 2023 Change 2024 2023 Change (in thousands) (in thousands) Net sales Product $379,472 $419,478 (9.5 %) $1,226,397 $1,418,581 (13.5 %) Professional services 69,497 40,044 73.6 % 168,676 113,870 48.1 % Managed services 44,150 34,640 27.5 % 126,827 99,335 27.7 % Total 493,119 494,162 (0.2 %) 1,521,900 1,631,786 (6.7 %) Gross profit Product 84,046 91,919 (8.6 %) 271,910 308,059 (11.7 %) Professional services 27,841 17,332 60.6 % 68,879 47,852 43.9 % Managed services 13,160 11,015 19.5 % 38,333 31,006 23.6 % Total 125,047 120,266 4.0 % 379,122 386,917 (2.0 %) Selling, general, and administrative 100,441 86,001 16.8 % 284,575 261,694 8.7 % Depreciation and amortization 7,676 5,381 42.7 % 18,260 15,747 16.0 % Interest and financing costs - 217 (100.0 %) - 1,428 (100.0 %) Operating expenses 108,117 91,599 18.0 % 302,835 278,869 8.6 % Operating income $16,930 $28,667 (40.9 %) $76,287 $108,048 (29.4 %) Gross billings $849,546 $796,986 6.6 % $2,491,482 $2,495,451 (0.2) % Adjusted EBITDA $27,498 $36,725 (25.1 %) $103,803 $132,170 (21.5) % Technology Business Gross Billings by Type Three Months Ended December 31, Nine Months Ended December 31, 2024 2023 Change 2024 2023 Change (in thousands) (in thousands) Networking $214,762 $251,322 (14.5 %) $716,087 $839,638 (14.7 %) Cloud 207,762 181,559 14.4 % 644,888 641,120 0.6 % Security 190,808 189,476 0.7 % 506,256 480,159 5.4 % Collaboration 22,381 23,180 (3.4 %) 102,074 97,111 5.1 % Other 76,513 55,473 37.9 % 193,650 203,805 (5.0 %) Product gross billings 712,226 701,010 1.6 % 2,162,955 2,261,833 (4.4 %) Service gross billings 137,320 95,976 43.1 % 328,527 233,618 40.6 % Total gross billings $849,546 $796,986 6.6 % $2,491,482 $2,495,451 (0.2 %) Technology Business Net Sales by Type Three Months Ended December 31, Nine Months Ended December 31, 2024 2023 Change 2024 2023 Change (in thousands) (in thousands) Networking $181,367 $209,936 (13.6 %) $602,883 $723,760 (16.7 %) Cloud 116,864 120,253 (2.8 %) 375,431 427,365 (12.2 %) Security 53,919 58,822 (8.3 %) 143,133 156,504 (8.5 %) Collaboration 8,391 13,608 (38.3 %) 47,278 53,647 (11.9 %) Other 18,931 16,859 12.3 % 57,672 57,305 0.6 % Total product 379,472 419,478 (9.5 %) 1,226,397 1,418,581 (13.5 %) Professional services 69,497 40,044 73.6 % 168,676 113,870 48.1 % Managed services 44,150 34,640 27.5 % 126,827 99,335 27.7 % Total net sales $493,119 $494,162 (0.2 %) $1,521,900 $1,631,786 (6.7 %) Technology Business Net Sales by Customer End Market Three Months Ended December 31, Nine Months Ended December 31, 2024 2023 Change 2024 2023 Change (in thousands) (in thousands) Telecom, Media, & Entertainment $126,201 $139,551 (9.6 %) $352,624 $405,192 (13.0 %) SLED 71,412 60,108 18.8 % 261,195 264,419 (1.2 %) Technology 71,293 83,951 (15.1 %) 235,387 268,302 (12.3 %) Healthcare 58,670 55,504 5.7 % 212,185 214,182 (0.9 %) Financial Services 46,217 38,816 19.1 % 130,701 174,391 (25.1 %) All other 119,326 116,232 2.7 % 329,808 305,300 8.0 % Total net sales $493,119 $494,162 (0.2 %) $1,521,900 $1,631,786 (6.7 %) Financing Business Segment Three Months Ended December 31, Nine Months Ended December 31, 2024 2023 Change 2024 2023 Change (in thousands) (in thousands) Portfolio earnings $4,466 $3,701 20.7 % $13,491 $10,113 33.4 % Transactional gains 8,477 8,107 4.6 % 24,272 16,335 48.6 % Post-contract earnings 4,743 2,685 76.6 % 10,163 11,357 (10.5 %) Other 160 400 (60.0 %) 849 1,250 (32.1 %) Net sales 17,846 14,893 19.8 % 48,775 39,055 24.9 % Gross profit 15,838 13,544 16.9 % 44,235 33,531 31.9 % Selling, general, and administrative 3,740 3,380 10.7 % 12,185 10,637 14.6 % Depreciation and amortization - 18 (100.0 %) - 74 (100.0 %) Interest and financing costs 517 766 (32.5 %) 1,639 1,626 0.8 % Operating expenses 4,257 4,164 2.2 % 13,824 12,337 12.1 % Operating income $11,581 $9,380 23.5 % $30,411 $21,194 43.5 % Adjusted EBITDA $11,651 $9,464 23.1 % $30,612 $21,466 42.6 % ePlus inc. AND SUBSIDIARIESRECONCILIATION 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 and financing costs, depreciation and amortization, share-based compensation, acquisition related 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 and financing costs, share-based compensation, acquisition related 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, acquisition related expenses, and acquisition related amortization expenses, 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 December 31, Nine Months Ended December 31, 2024 2023 2024 2023 (in thousands) Consolidated Net earnings $24,133 $27,282 $82,782 $93,793 Provision for income taxes 8,028 11,131 30,218 36,122 Share based compensation 2,933 2,526 8,385 7,145 Acquisition related expenses 29 - 1,072 - Interest and financing costs - 217 - 1,428 Depreciation and amortization [1] 7,676 5,399 18,260 15,821 Other (income) expense, net [2] (3,650) (366) (6,302) (673) Adjusted EBITDA $39,149 $46,189 $134,415 $153,636 Technology Business Segments Operating income $16,930 $28,667 $76,287 $108,048 Share based compensation 2,863 2,460 8,184 6,947 Depreciation and amortization [1] 7,676 5,381 18,260 15,747 Acquisition related expenses 29 - 1,072 - Interest and financing costs - 217 - 1,428 Adjusted EBITDA $27,498 $36,725 $103,803 $132,170 Financing Business Segment Operating income $11,581 $9,380 $30,411 $21,194 Share based compensation 70 66 201 198 Depreciation and amortization [1] - 18 - 74 Adjusted EBITDA $11,651 $9,464 $30,612 $21,466 Three Months Ended December 31, Nine Months Ended December 31, 2024 2023 2024 2023 (in thousands) GAAP: Earnings before taxes $32,161 $38,413 $113,000 $129,915 Share based compensation 2,933 2,526 8,385 7,145 Acquisition related expenses 29 - 1,072 - Acquisition related amortization expense [3] 5,983 3,856 14,180 11,348 Other (income) expense [2] (3,650) (366) (6,302) (673) Non-GAAP: Earnings before provision for income taxes 37,456 44,429 130,335 147,735 GAAP: Provision for income taxes 8,028 11,131 30,218 36,122 Share based compensation 734 733 2,263 2,005 Acquisition related expenses 7 - 300 - Acquisition related amortization expense [3] 1,495 1,115 3,788 3,173 Other (income) expense, net [2] (913) (106) (1,656) (190) Tax benefit (expense) on restricted stock 21 10 513 226 Non-GAAP: Provision for income taxes 9,372 12,883 35,426 41,336 Non-GAAP: Net earnings $28,084 $31,546 $94,909 $106,399 Three Months Ended December 31, Nine Months Ended December 31, 2024 2023 2024 2023 GAAP: Net earnings per common share – diluted $0.91 $1.02 $3.10 $3.52 Share based compensation 0.08 0.07 0.23 0.19 Acquisition related expenses - - 0.03 - Acquisition related amortization expense [3] 0.17 0.10 0.39 0.30 Other (income) expense, net [2] (0.10) - (0.17) (0.01) Tax benefit (expense) on restricted stock - (0.00) (0.02) (0.01) Total non-GAAP adjustments – net of tax 0.15 0.16 0.46 0.47 Non-GAAP: Net earnings per common share – diluted $1.06 $1.18 $3.56 $3.99 [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. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

ePlus Reports Third Quarter and First Nine Months Results

FAQ

Why Neutral?

How important is it?

Why Short Term?

Related Companies

Related News