Delaware
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54-1817218
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Large accelerated filer
o
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Accelerated filer
x
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Part I. Financial Information:
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||
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Item 1.
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Financial Statements
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5
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6
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7
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8
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10
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11
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Item 2.
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24
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Item 3.
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37
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Item 4.
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37
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Part II. Other Information:
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Item 1.
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38
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Item 1A.
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38
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||
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Item 2.
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39
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Item 3.
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39
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Item 4.
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39
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Item 5.
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39
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Item 6.
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40
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41
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· | we offer a comprehensive set of solutions— integrating information technology (IT) product sales, third-party software assurance and maintenance, advanced professional and managed services, proprietary software, and financing, and may encounter some of the challenges, risks, difficulties and uncertainties frequently faced by similar companies, such as: |
o | managing a diverse product set of solutions in highly competitive markets with a small number of key vendors; |
o | increasing the total number of customers utilizing integrated solutions by up-selling within our customer base and gaining new customers; |
o | adapting to meet changes in markets and competitive developments; |
o | maintaining and increasing advanced professional services by retaining highly skilled personnel and vendor certifications; |
o | increasing the total number of customers who utilize our managed services and professional services and continuing to enhance our managed services offerings to remain competitive in the marketplace; |
o | continuing to enhance our proprietary software and update our technology infrastructure to remain competitive in the marketplace; and |
o | reliance on third parties to perform some of our service obligations; |
· | our dependence on key personnel, and our ability to hire and retain sufficient qualified personnel; |
· | our ability to implement comprehensive plans for the integration of sales forces, cost containment, asset rationalization, systems integration and other key strategies; |
· | a possible decrease in the capital spending budgets of our customers or a decrease in purchases from us; |
· | our ability to protect our intellectual property rights and successfully defend any challenges to the validity of our patents, and, when appropriate, license required technology; |
· | our professional and liability insurance policies coverage may be insufficient to cover a claim; |
· | the creditworthiness of our customers and our ability to reserve adequately for credit losses; |
· | the possibility of goodwill impairment charges in the future; |
· | uncertainty and volatility in the global economy and financial markets; |
· | 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 secure our and our customers’ electronic and other confidential information; |
· | our ability to raise capital, maintain or increase as needed our lines of credit with vendors or floor planning facility, or obtain debt for our financing transactions or the effect of those changes on our common stock or its holders; |
· | future growth rates in our core businesses; |
· | our ability to realize our investment in leased equipment; |
· | significant adverse changes in, reductions in, or losses of relationships with several of our larger customers or vendors; |
· | our ability to successfully integrate acquired businesses; |
· | reduction of vendor incentives provided to us; |
· | exposure to changes in, interpretations of, or enforcement trends related to tax rules and other regulations; |
· | changes to or loss of members of our senior management team and/or failure to successfully implement succession plans; and |
· | significant changes in accounting standards including changes to the financial reporting of leases which could impact the demand for our leasing services, or misclassification of products and services we sell resulting in the misapplication of revenue recognition policies. |
Three Months Ended
September 30,
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Six Months Ended
September 30,
|
|||||||||||||||
2014
|
2013
|
2014
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2013
|
|||||||||||||
(amounts in thousands, except per share data)
|
||||||||||||||||
Sales of product and services
|
$
|
286,584
|
$
|
261,283
|
$
|
547,940
|
$
|
508,320
|
||||||||
Financing revenue
|
9,059
|
8,001
|
17,933
|
18,761
|
||||||||||||
Fee and other income
|
1,829
|
1,845
|
3,903
|
3,365
|
||||||||||||
TOTAL REVENUES
|
297,472
|
271,129
|
569,776
|
530,446
|
||||||||||||
Cost of sales, product and services
|
230,742
|
214,854
|
443,650
|
418,184
|
||||||||||||
Direct lease costs
|
2,806
|
3,495
|
5,763
|
6,748
|
||||||||||||
Cost of revenues
|
233,548
|
218,349
|
449,413
|
424,932
|
||||||||||||
Professional and other fees
|
1,577
|
1,908
|
3,410
|
5,146
|
||||||||||||
Salaries and benefits
|
34,252
|
29,685
|
67,199
|
60,367
|
||||||||||||
General and administrative expenses
|
7,158
|
6,059
|
13,431
|
11,060
|
||||||||||||
Interest and financing costs
|
611
|
433
|
1,255
|
893
|
||||||||||||
Operating expenses
|
43,598
|
38,085
|
85,295
|
77,466
|
||||||||||||
OPERATING INCOME
|
20,326
|
14,695
|
35,068
|
28,048
|
||||||||||||
Other income
|
-
|
-
|
1,434
|
-
|
||||||||||||
EARNINGS BEFORE PROVISION FOR INCOME TAXES
|
20,326
|
14,695
|
36,502
|
28,048
|
||||||||||||
PROVISION FOR INCOME TAXES
|
8,374
|
6,104
|
15,073
|
11,607
|
||||||||||||
NET EARNINGS
|
$
|
11,952
|
$
|
8,591
|
$
|
21,429
|
$
|
16,441
|
||||||||
NET EARNINGS PER COMMON SHARE
—
BASIC
|
$
|
1.63
|
$
|
1.07
|
$
|
2.88
|
$
|
2.05
|
||||||||
NET EARNINGS PER COMMON SHARE
—
DILUTED
|
$
|
1.63
|
$
|
1.06
|
$
|
2.86
|
$
|
2.03
|
||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
—
BASIC
|
7,320
|
7,976
|
7,412
|
7,945
|
||||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
—
DILUTED
|
7,345
|
8,020
|
7,461
|
8,007
|
Three Months Ended
September 30,
|
Six Months Ended
September 30,
|
|||||||||||||||
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
|
(amounts in thousands)
|
|||||||||||||||
|
|
|
|
|
||||||||||||
NET EARNINGS
|
$
|
11,952
|
$
|
8,591
|
$
|
21,429
|
$
|
16,441
|
||||||||
OTHER COMPREHENSIVE INCOME, NET OF TAX:
|
||||||||||||||||
Foreign currency translation adjustments
|
(160
|
)
|
57
|
(44
|
)
|
(37
|
)
|
|||||||||
Other comprehensive income (loss)
|
(160
|
)
|
57
|
(44
|
)
|
(37
|
)
|
|||||||||
TOTAL COMPREHENSIVE INCOME
|
$
|
11,792
|
$
|
8,648
|
$
|
21,385
|
$
|
16,404
|
Six Months Ended
September 30,
|
||||||||
2014
|
2013
|
|||||||
(in thousands)
|
||||||||
Cash Flows From Operating Activities:
|
|
|
||||||
Net earnings
|
$
|
21,429
|
$
|
16,441
|
||||
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:
|
||||||||
Depreciation and amortization
|
7,631
|
7,359
|
||||||
Provision for credit losses, inventory obsolescence and sales returns
|
245
|
211
|
||||||
Share-based compensation expense
|
2,247
|
1,954
|
||||||
Excess tax benefit from share-based compensation
|
(824
|
)
|
(1,536
|
)
|
||||
Payments from lessees directly to lenders
—
operating leases
|
(4,445
|
)
|
(4,062
|
)
|
||||
Gain on disposal of property, equipment and operating lease equipment
|
(2,120
|
)
|
(1,001
|
)
|
||||
Gain on sale of financing receivables
|
(3,179
|
)
|
(4,025
|
)
|
||||
Gain on settlement
|
(1,434
|
)
|
-
|
|||||
Other
|
50
|
42
|
||||||
Changes in:
|
||||||||
Accounts receivable—trade
|
13,236
|
12,897
|
||||||
Accounts receivable—other
|
(854
|
)
|
(4,087
|
)
|
||||
Inventories
|
(7,006
|
)
|
(5,043
|
)
|
||||
Financing receivables
|
(14,187
|
)
|
(8,193
|
)
|
||||
Deferred costs, other intangible assets and other assets
|
1,333
|
1,513
|
||||||
Accounts payable
—
equipment
|
(162
|
)
|
1,700
|
|||||
Accounts payable
—
trade
|
(29,315
|
)
|
(222
|
)
|
||||
Salaries and commissions payable, deferred revenue and other liabilities
|
6,360
|
(8,387
|
)
|
|||||
Net cash (used in) provided by operating activities
|
$
|
(10,995
|
)
|
$
|
5,561
|
|||
Cash Flows From Investing Activities:
|
||||||||
Maturities of short-term investments
|
$
|
-
|
$
|
982
|
||||
Maturities of supplemental benefit plan investments
|
2,544
|
-
|
||||||
Proceeds from sale of property, equipment and operating lease equipment
|
5,751
|
1,929
|
||||||
Purchases of property, equipment and operating lease equipment
|
(1,919
|
)
|
(6,759
|
)
|
||||
Purchases of assets to be leased or financed
|
(10,000
|
)
|
(7,032
|
)
|
||||
Issuance of financing receivables
|
(51,163
|
)
|
(45,847
|
)
|
||||
Repayments of financing receivables
|
28,082
|
16,031
|
||||||
Proceeds from sale of financing receivables
|
12,341
|
15,456
|
||||||
Premiums paid on life insurance
|
-
|
(93
|
)
|
|||||
Cash used in acquisitions, net of cash acquired
|
(7,818
|
)
|
-
|
|||||
Net cash used in investing activities
|
$
|
(22,182
|
)
|
$
|
(25,333
|
)
|
Six Months Ended
September 30,
|
||||||||
2014
|
2013
|
|||||||
(in thousands)
|
||||||||
Cash Flows From Financing Activities:
|
|
|
||||||
Borrowings of non-recourse and recourse notes payable
|
$
|
30,104
|
$
|
12,779
|
||||
Repayments of non-recourse and recourse notes payable
|
(802
|
)
|
(1,135
|
)
|
||||
Repurchase of common stock
|
(34,782
|
)
|
(5,901
|
)
|
||||
Dividends paid
|
(90
|
)
|
(105
|
)
|
||||
Proceeds from issuance of capital stock through option exercise
|
-
|
559
|
||||||
Payments of contingent consideration
|
-
|
(1,027
|
)
|
|||||
Excess tax benefit from share-based compensation
|
824
|
1,536
|
||||||
Net borrowings (repayments) on floor plan facility
|
20,694
|
14,042
|
||||||
Net cash provided by financing activities
|
15,948
|
20,748
|
||||||
Effect of exchange rate changes on cash
|
(9
|
)
|
-
|
|||||
Net Increase in Cash and Cash Equivalents
|
(17,238
|
)
|
976
|
|||||
Cash and Cash Equivalents, Beginning of Period
|
80,179
|
52,720
|
||||||
Cash and Cash Equivalents, End of Period
|
$
|
62,941
|
$
|
53,696
|
||||
Supplemental Disclosures of Cash Flow Information:
|
||||||||
Cash paid for interest
|
$
|
128
|
$
|
15
|
||||
Cash paid for income taxes
|
$
|
12,770
|
$
|
10,334
|
||||
Schedule of Non-Cash Investing and Financing Activities:
|
||||||||
Purchase of property and equipment included in accounts payable
|
$
|
232
|
$
|
71
|
||||
Purchase of operating lease equipment included in accounts payable
|
$
|
103
|
$
|
241
|
||||
Purchase of assets to be leased or financed included in accounts payable
|
$
|
18,578
|
$
|
10,664
|
||||
Proceeds from sales of operating lease equipment included in accounts receivable
|
$
|
910
|
$
|
12
|
||||
Repayments of non-recourse and recourse notes payable
|
$
|
19,171
|
$
|
9,715
|
||||
Vesting of share-based compensation
|
$
|
6,407
|
$
|
7,769
|
||||
Origination and concurrent sale of financing receivables
|
$
|
47,213
|
$
|
80,769
|
||||
Contingent consideration
|
$
|
1,960
|
$
|
-
|
Common Stock
|
Additional
Paid-In
|
Treasury
|
Retained
|
Accumulated
Other
Comprehensive
|
||||||||||||||||||||||||
Shares
|
Par Value
|
Capital
|
Stock
|
Earnings
|
Income
|
Total
|
||||||||||||||||||||||
Balance, April 1, 2014
|
8,036
|
$
|
130
|
$
|
105,924
|
$
|
(80,494
|
)
|
$
|
240,637
|
$
|
186
|
$
|
266,383
|
||||||||||||||
Excess tax benefit of share-based compensation
|
-
|
-
|
824
|
-
|
-
|
-
|
824
|
|||||||||||||||||||||
Issuance of restricted stock awards
|
87
|
1
|
-
|
-
|
-
|
-
|
1
|
|||||||||||||||||||||
Share-based compensation
|
2,247
|
-
|
-
|
-
|
2,247
|
|||||||||||||||||||||||
Repurchase of common stock
|
(686
|
)
|
-
|
-
|
(34,782
|
)
|
-
|
-
|
(34,782
|
)
|
||||||||||||||||||
Net earnings
|
-
|
-
|
-
|
-
|
21,429
|
-
|
21,429
|
|||||||||||||||||||||
Foreign currency translation adjustment
|
-
|
-
|
-
|
-
|
-
|
(44
|
)
|
(44
|
)
|
|||||||||||||||||||
Balance, September 30, 2014
|
7,437
|
$
|
131
|
$
|
108,995
|
$
|
(115,276
|
)
|
$
|
262,066
|
$
|
142
|
$
|
256,058
|
1. | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
2. | FINANCING RECEIVABLES AND OPERATING LEASES |
September 30, 2014
|
Notes
Receivables
|
Lease-Related
Receivables
|
Total Financing
Receivables
|
|||||||||
Minimum payments
|
$
|
59,745
|
$
|
86,289
|
$
|
146,034
|
||||||
Estimated unguaranteed residual value (1)
|
-
|
8,184
|
8,184
|
|||||||||
Initial direct costs, net of amortization (2)
|
409
|
528
|
937
|
|||||||||
Unearned income
|
-
|
(6,444
|
)
|
(6,444
|
)
|
|||||||
Reserve for credit losses (3)
|
(3,673
|
)
|
(1,004
|
)
|
(4,677
|
)
|
||||||
Total, net
|
$
|
56,481
|
$
|
87,553
|
$
|
144,034
|
||||||
Reported as:
|
||||||||||||
Current
|
$
|
27,043
|
$
|
37,606
|
$
|
64,649
|
||||||
Long-term
|
29,438
|
49,947
|
79,385
|
|||||||||
Total, net
|
$
|
56,481
|
$
|
87,553
|
$
|
144,034
|
(1) | Includes estimated unguaranteed residual values of $3,287 thousand for direct financing leases, which have been sold and accounted for as sales under Codification Topic Transfers and Servicing . |
(2) | Initial direct costs are shown net of amortization of $548 thousand. |
(3) | For details on reserve for credit losses, refer to Note 4, “Reserves for Credit Losses.” |
March 31, 2014
|
Notes
Receivables
|
Lease-Related
Receivables
|
Total Financing
Receivables
|
|||||||||
Minimum payments
|
$
|
43,707
|
$
|
81,551
|
$
|
125,258
|
||||||
Estimated unguaranteed residual value (1)
|
-
|
8,275
|
8,275
|
|||||||||
Initial direct costs, net of amortization (2)
|
354
|
537
|
891
|
|||||||||
Unearned income
|
-
|
(6,285
|
)
|
(6,285
|
)
|
|||||||
Reserve for credit losses (3)
|
(3,364
|
)
|
(1,024
|
)
|
(4,388
|
)
|
||||||
Total, net
|
$
|
40,697
|
$
|
83,054
|
$
|
123,751
|
||||||
Reported as:
|
||||||||||||
Current
|
$
|
22,109
|
$
|
35,640
|
$
|
57,749
|
||||||
Long-term
|
18,588
|
47,414
|
66,002
|
|||||||||
Total, net
|
$
|
40,697
|
$
|
83,054
|
$
|
123,751
|
(1) | Includes estimated unguaranteed residual values of $3,034 thousand for direct financing leases which have been sold and accounted for as sales under Codification Topic Transfers and Servicing . |
(2) | Initial direct costs are shown net of amortization of $525 thousand. |
(3) | For details on reserve for credit losses, refer to Note 4, “Reserves for Credit Losses.” |
September 30,
2014
|
March 31,
2014
|
|||||||
Cost of equipment under operating leases
|
$
|
31,072
|
$
|
40,513
|
||||
Accumulated depreciation
|
(15,674
|
)
|
(20,525
|
)
|
||||
Investment in operating lease equipment—net (1)
|
$
|
15,398
|
$
|
19,988
|
(1) | These totals include estimated unguaranteed residual values of $3,842 thousand and $5,610 thousand as of September 30, 2014 and March 31, 2014, respectively. |
3. | GOODWILL AND OTHER INTANGIBLE ASSETS |
|
September 30, 2014
|
March 31, 2014
|
||||||||||||||||||||||
|
Gross Carrying
Amount
|
Accumulated Amortization / Impairment Loss
|
Net Carrying
Amount
|
Gross Carrying
Amount
|
Accumulated Amortization / Impairment Loss
|
Net Carrying
Amount
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Goodwill
|
$
|
42,834
|
$
|
(8,673
|
)
|
$
|
34,161
|
$
|
38,243
|
$
|
(8,673
|
)
|
$
|
29,570
|
||||||||||
Customer relationships & other intangibles
|
11,923
|
(5,416
|
)
|
6,507
|
8,013
|
(4,671
|
)
|
3,342
|
||||||||||||||||
Capitalized software development
|
2,668
|
(1,208
|
)
|
1,460
|
2,616
|
(945
|
)
|
1,671
|
||||||||||||||||
Total
|
$
|
57,425
|
$
|
(15,297
|
)
|
$
|
42,128
|
$
|
48,872
|
$
|
(14,289
|
)
|
$
|
34,583
|
Reporting Unit
|
September 30,
2014
|
March 31,
2014
|
||||||
Technology
|
$
|
33,072
|
$
|
28,481
|
||||
Software Document Management
|
1,089
|
1,089
|
4. | RESERVES FOR CREDIT LOSSES |
|
Accounts
Receivable
|
Notes
Receivable
|
Lease-Related
Receivables
|
Total
|
||||||||||||
Balance April 1, 2014
|
$
|
1,364
|
$
|
3,364
|
$
|
1,024
|
$
|
5,752
|
||||||||
Provision for credit losses
|
(99
|
)
|
309
|
11
|
221
|
|||||||||||
Write-offs and other
|
(122
|
)
|
-
|
(31
|
)
|
(153
|
)
|
|||||||||
Balance September 30, 2014
|
$
|
1,143
|
$
|
3,673
|
$
|
1,004
|
$
|
5,820
|
||||||||
|
||||||||||||||||
|
||||||||||||||||
|
Accounts
Receivable
|
Notes
Receivable
|
Lease-Related
Receivables
|
Total
|
||||||||||||
Balance April 1, 2013
|
$
|
1,147
|
$
|
3,137
|
$
|
845
|
$
|
5,129
|
||||||||
Provision for credit losses
|
152
|
(14
|
)
|
53
|
191
|
|||||||||||
Write-offs and other
|
(121
|
)
|
-
|
-
|
(121
|
)
|
||||||||||
Balance September 30, 2013
|
$
|
1,178
|
$
|
3,123
|
$
|
898
|
$
|
5,199
|
|
September 30, 2014
|
March 31, 2014
|
||||||||||||||
|
Notes
Receivable
|
Lease-Related
Receivables
|
Notes
Receivable
|
Lease-Related
Receivables
|
||||||||||||
Reserves for credit losses:
|
|
|
||||||||||||||
Ending balance: collectively evaluated for impairment
|
$
|
552
|
$
|
788
|
$
|
265
|
$
|
852
|
||||||||
Ending balance: individually evaluated for impairment
|
3,121
|
216
|
3,099
|
172
|
||||||||||||
Ending balance
|
$
|
3,673
|
$
|
1,004
|
$
|
3,364
|
$
|
1,024
|
||||||||
|
||||||||||||||||
Minimum payments:
|
||||||||||||||||
Ending balance: collectively evaluated for impairment
|
$
|
56,292
|
$
|
86,086
|
$
|
39,869
|
$
|
81,114
|
||||||||
Ending balance: individually evaluated for impairment
|
3,453
|
203
|
3,838
|
437
|
||||||||||||
Ending balance
|
$
|
59,745
|
$
|
86,289
|
$
|
43,707
|
$
|
81,551
|
31-60
Days
Past Due
|
61-90
Days
Past Due
|
Greater than 90 Days Past Due
|
Total Past Due
|
Current
|
Unbilled Minimum Lease Payments
|
Total Minimum Lease Payments
|
Unearned Income
|
Non-Recourse Notes Payable
|
Net Credit Exposure
|
|||||||||||||||||||||||||||||||
September 30, 2014
|
||||||||||||||||||||||||||||||||||||||||
High CQR
|
$
|
42
|
$
|
5
|
$
|
130
|
$
|
177
|
$
|
232
|
$
|
51,342
|
$
|
51,751
|
$
|
(2,828
|
)
|
$
|
(18,031
|
)
|
$
|
30,892
|
||||||||||||||||||
Average CQR
|
52
|
48
|
14
|
114
|
566
|
33,654
|
34,335
|
(2,704
|
)
|
(17,742
|
)
|
13,888
|
||||||||||||||||||||||||||||
Low CQR
|
-
|
-
|
-
|
-
|
-
|
203
|
203
|
(19
|
)
|
-
|
184
|
|||||||||||||||||||||||||||||
Total
|
94
|
53
|
144
|
291
|
798
|
85,199
|
86,289
|
(5,551
|
)
|
(35,773
|
)
|
44,964
|
||||||||||||||||||||||||||||
March 31, 2014
|
||||||||||||||||||||||||||||||||||||||||
High CQR
|
$
|
194
|
$
|
35
|
$
|
106
|
$
|
335
|
$
|
502
|
$
|
42,159
|
$
|
42,996
|
$
|
(1,890
|
)
|
$
|
(17,406
|
)
|
$
|
23,700
|
||||||||||||||||||
Average CQR
|
33
|
57
|
18
|
108
|
86
|
37,924
|
38,118
|
(3,401
|
)
|
(20,709
|
)
|
14,008
|
||||||||||||||||||||||||||||
Low CQR
|
-
|
-
|
61
|
61
|
-
|
376
|
437
|
(55
|
)
|
-
|
382
|
|||||||||||||||||||||||||||||
Total
|
227
|
92
|
185
|
504
|
588
|
80,459
|
81,551
|
(5,346
|
)
|
(38,115
|
)
|
38,090
|
31-60
Days
Past Due
|
61-90
Days
Past Due
|
Greater than 90 Days Past Due
|
Total Past Due
|
Current
|
Unbilled Notes Receivable
|
Total Notes Receivable
|
Non-Recourse Notes Payable
|
Net Credit Exposure
|
||||||||||||||||||||||||||||
September 30, 2014
|
||||||||||||||||||||||||||||||||||||
High CQR
|
$
|
829
|
$
|
5
|
$
|
1,802
|
$
|
2,636
|
$
|
521
|
$
|
38,137
|
$
|
41,294
|
$
|
(23,463
|
)
|
$
|
17,831
|
|||||||||||||||||
Average CQR
|
171
|
-
|
-
|
171
|
281
|
14,546
|
14,998
|
(4,580
|
)
|
10,418
|
||||||||||||||||||||||||||
Low CQR
|
-
|
-
|
707
|
707
|
-
|
2,746
|
3,453
|
-
|
3,453
|
|||||||||||||||||||||||||||
Total
|
1,000
|
5
|
2,509
|
3,514
|
802
|
55,429
|
59,745
|
(28,043
|
)
|
31,702
|
||||||||||||||||||||||||||
March 31, 2014
|
||||||||||||||||||||||||||||||||||||
High CQR
|
$
|
-
|
$
|
205
|
$
|
148
|
$
|
353
|
$
|
2,317
|
$
|
30,249
|
$
|
32,919
|
$
|
(19,641
|
)
|
$
|
13,278
|
|||||||||||||||||
Average CQR
|
-
|
-
|
-
|
-
|
-
|
6,950
|
6,950
|
(3,491
|
)
|
3,459
|
||||||||||||||||||||||||||
Low CQR
|
-
|
-
|
791
|
791
|
-
|
3,047
|
3,838
|
-
|
3,838
|
|||||||||||||||||||||||||||
Total
|
-
|
205
|
939
|
1,144
|
2,317
|
40,246
|
43,707
|
(23,132
|
)
|
20,575
|
5. | PROPERTY, EQUIPMENT OTHER ASSETS AND LIABILITIES |
September 30,
2014
|
March 31,
2014
|
|||||||
Other current assets:
|
|
|
||||||
Deposits & funds held in escrow
|
$
|
6,610
|
$
|
995
|
||||
Prepaid assets
|
3,079
|
2,865
|
||||||
Supplemental benefit plan investments
|
-
|
2,544
|
||||||
Other
|
318
|
521
|
||||||
Total other current assets
|
$
|
10,007
|
$
|
6,925
|
||||
|
||||||||
Other assets:
|
||||||||
Deferred costs
|
$
|
1,238
|
$
|
1,591
|
||||
Property and equipment, net
|
4,636
|
4,293
|
||||||
Other
|
1,271
|
2,129
|
||||||
Other assets - long term
|
$
|
7,145
|
$
|
8,013
|
September 30,
2014
|
March 31,
2014
|
|||||||
Other current liabilities
|
|
|
||||||
Accrued expenses
|
$
|
10,192
|
$
|
5,322
|
||||
Deferred compensation
|
222
|
2,544
|
||||||
Other
|
11,253
|
7,516
|
||||||
Total other current liabilities
|
$
|
21,667
|
$
|
15,382
|
||||
|
||||||||
Other liabilities
|
||||||||
Deferred revenue
|
$
|
1,786
|
$
|
1,822
|
||||
Other
|
1,013
|
-
|
||||||
Total other liabilities - long term
|
$
|
2,799
|
$
|
1,822
|
6.
|
NOTES PAYABLE AND CREDIT FACILITY
|
September 30,
2014
|
March 31,
2014
|
|||||||
|
||||||||
Recourse notes payable with interest rates ranging from 2.24% and 4.22% at September 30, 2014 and 2.24% and 4.84% at March 31, 2014.
|
|
|
||||||
Current
|
$
|
280
|
$
|
1,460
|
||||
Long-term
|
2,576
|
2,100
|
||||||
Total recourse notes payable
|
$
|
2,856
|
$
|
3,560
|
||||
|
||||||||
Non-recourse notes payable secured by financing receivables and investments in operating leases with interest rates ranging from 2.00% to 10.00% at September 30, 2014 and ranging from 2.00% to 11.24% as of March 31, 2014.
|
||||||||
Current
|
$
|
35,262
|
$
|
30,907
|
||||
Long-term
|
30,018
|
34,421
|
||||||
Total non-recourse notes payable
|
$
|
65,280
|
$
|
65,328
|
7. | COMMITMENTS AND CONTINGENCIES |
8. | EARNINGS PER SHARE |
Three months ended
September 30,
|
Six months ended
September 30,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Basic and diluted shares outstanding
|
||||||||||||||||
Weighted average common shares outstanding — basic
|
7,320
|
7,976
|
7,412
|
7,945
|
||||||||||||
Effect of dilutive shares
|
25
|
44
|
49
|
62
|
||||||||||||
Weighted average common shares outstanding — diluted
|
7,345
|
8,020
|
7,461
|
8,007
|
||||||||||||
Calculation of earnings per share - basic
|
||||||||||||||||
Net earnings
|
$
|
11,952
|
$
|
8,591
|
$
|
21,429
|
$
|
16,441
|
||||||||
Net earnings attributable to participating securities
|
-
|
66
|
55
|
192
|
||||||||||||
Net earnings attributable to common shareholders
|
$
|
11,952
|
$
|
8,525
|
$
|
21,374
|
$
|
16,249
|
||||||||
Earnings per share - basic
|
$
|
1.63
|
$
|
1.07
|
$
|
2.88
|
$
|
2.05
|
||||||||
Calculation of earnings per share - diluted
|
||||||||||||||||
Net earnings attributable to common shareholders— basic
|
$
|
11,952
|
$
|
8,525
|
$
|
21,374
|
$
|
16,249
|
||||||||
Add: undistributed earnings attributable to participating securities
|
-
|
-
|
1
|
1
|
||||||||||||
Net earnings attributable to common shareholders— diluted
|
$
|
11,952
|
$
|
8,525
|
$
|
21,375
|
$
|
16,250
|
||||||||
Earnings per share - diluted
|
$
|
1.63
|
$
|
1.06
|
$
|
2.86
|
$
|
2.03
|
9. | STOCKHOLDERS’ EQUITY |
10. | SHARE-BASED COMPENSATION |
|
Number of
Shares
|
Weighted Average Grant-date Fair Value
|
||||||
Nonvested April 1, 2014
|
200,120
|
$
|
41.11
|
|||||
Granted
|
87,555
|
$
|
57.12
|
|||||
Vested
|
(111,296
|
)
|
$
|
35.57
|
||||
Nonvested September 30, 2014
|
176,379
|
$
|
52.67
|
11. | INCOME TAXES |
12. | FAIR VALUE OF FINANCIAL INSTRUMENTS |
|
Fair Value Measurement Using
|
|||||||||||||||||||
|
Recorded Amount
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs (Level 3)
|
Total Gains (Losses)
|
|||||||||||||||
September 30, 2014:
|
|
|
|
|
|
|||||||||||||||
Assets:
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Money market funds
|
$
|
43,767
|
$
|
43,767
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Contingent consideration
|
$
|
1,960
|
$
|
-
|
$
|
-
|
$
|
1,960
|
$
|
-
|
||||||||||
March 31, 2014:
|
||||||||||||||||||||
Assets:
|
||||||||||||||||||||
|
||||||||||||||||||||
Money market funds
|
$
|
54,267
|
$
|
54,267
|
$
|
-
|
$
|
-
|
$
|
-
|
13. | SEGMENT REPORTING |
Three Months Ended
|
||||||||||||||||||||||||
|
September 30, 2014
|
September 30, 2013
|
||||||||||||||||||||||
|
Technology
|
Financing
|
Total
|
Technology
|
Financing
|
Total
|
||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||
Sales of product and services
|
$
|
286,584
|
$
|
-
|
$
|
286,584
|
$
|
261,283
|
$
|
-
|
$
|
261,283
|
||||||||||||
Financing revenue
|
-
|
9,059
|
9,059
|
-
|
8,001
|
8,001
|
||||||||||||||||||
Fee and other income
|
1,782
|
47
|
1,829
|
1,829
|
16
|
1,845
|
||||||||||||||||||
Total revenues
|
288,366
|
9,106
|
297,472
|
263,112
|
8,017
|
271,129
|
||||||||||||||||||
Cost of sales, product and services
|
230,742
|
-
|
230,742
|
214,854
|
-
|
214,854
|
||||||||||||||||||
Direct lease costs
|
-
|
2,806
|
2,806
|
-
|
3,495
|
3,495
|
||||||||||||||||||
Total cost of revenues
|
230,742
|
2,806
|
233,548
|
214,854
|
3,495
|
218,349
|
||||||||||||||||||
Professional and other fees
|
1,321
|
256
|
1,577
|
1,580
|
328
|
1,908
|
||||||||||||||||||
Salaries and benefits
|
31,963
|
2,289
|
34,252
|
27,244
|
2,441
|
29,685
|
||||||||||||||||||
General and administrative expenses
|
6,703
|
455
|
7,158
|
5,701
|
358
|
6,059
|
||||||||||||||||||
Interest and financing costs
|
19
|
592
|
611
|
26
|
407
|
433
|
||||||||||||||||||
Operating expenses
|
40,006
|
3,592
|
43,598
|
34,551
|
3,534
|
38,085
|
||||||||||||||||||
Operating income & earnings before provision for income taxes
|
$
|
17,618
|
$
|
2,708
|
$
|
20,326
|
$
|
13,707
|
$
|
988
|
$
|
14,695
|
||||||||||||
Depreciation and amortization
|
$
|
1,081
|
$
|
2,709
|
$
|
3,790
|
$
|
592
|
$
|
3,060
|
$
|
3,652
|
||||||||||||
Purchases of property, equipment and operating lease equipment
|
$
|
744
|
$
|
706
|
$
|
1,450
|
$
|
1,845
|
$
|
1,628
|
$
|
3,473
|
||||||||||||
Total assets
|
$
|
341,893
|
$
|
222,553
|
$
|
564,446
|
$
|
269,149
|
$
|
196,152
|
$
|
465,301
|
||||||||||||
Six Months Ended
|
||||||||||||||||||||||||
September 30, 2014
|
September 30, 2013
|
|||||||||||||||||||||||
Technology
|
Financing
|
Total
|
Technology
|
Financing
|
Total
|
|||||||||||||||||||
Sales of product and services
|
$
|
547,940
|
$
|
-
|
$
|
547,940
|
$
|
508,320
|
$
|
-
|
$
|
508,320
|
||||||||||||
Financing revenue
|
-
|
17,933
|
17,933
|
-
|
18,761
|
18,761
|
||||||||||||||||||
Fee and other income
|
3,829
|
74
|
3,903
|
3,286
|
79
|
3,365
|
||||||||||||||||||
Total revenues
|
551,769
|
18,007
|
569,776
|
511,606
|
18,840
|
530,446
|
||||||||||||||||||
Cost of sales, product and services
|
443,650
|
-
|
443,650
|
418,184
|
-
|
418,184
|
||||||||||||||||||
Direct lease costs
|
-
|
5,763
|
5,763
|
-
|
6,748
|
6,748
|
||||||||||||||||||
Total cost of revenues
|
443,650
|
5,763
|
449,413
|
418,184
|
6,748
|
424,932
|
||||||||||||||||||
Professional and other fees
|
2,907
|
503
|
3,410
|
4,443
|
703
|
5,146
|
||||||||||||||||||
Salaries and benefits
|
62,633
|
4,566
|
67,199
|
55,142
|
5,225
|
60,367
|
||||||||||||||||||
General and administrative expenses
|
12,461
|
970
|
13,431
|
10,515
|
545
|
11,060
|
||||||||||||||||||
Interest and financing costs
|
58
|
1,197
|
1,255
|
46
|
847
|
893
|
||||||||||||||||||
Operating expenses
|
78,059
|
7,236
|
85,295
|
70,146
|
7,320
|
77,466
|
||||||||||||||||||
Operating income
|
30,060
|
5,008
|
35,068
|
23,276
|
4,772
|
28,048
|
||||||||||||||||||
Other income
|
-
|
1,434
|
1,434
|
-
|
-
|
-
|
||||||||||||||||||
Earnings before provision for income taxes
|
$
|
30,060
|
$
|
6,442
|
$
|
36,502
|
$
|
23,276
|
$
|
4,772
|
$
|
28,048
|
||||||||||||
Depreciation and amortization
|
$
|
1,975
|
$
|
5,656
|
$
|
7,631
|
$
|
1,244
|
$
|
6,115
|
$
|
7,359
|
||||||||||||
Purchases of property, equipment and operating lease equipment
|
$
|
1,086
|
$
|
833
|
$
|
1,919
|
$
|
3,071
|
$
|
3,688
|
$
|
6,759
|
||||||||||||
Total assets
|
$
|
341,893
|
$
|
222,553
|
$
|
564,446
|
$
|
269,149
|
$
|
196,152
|
$
|
465,301
|
14. | BUSINESS COMBINATIONS |
Vendor
|
Vendor Authorization Level
|
|
|
Apple
|
Apple Authorized Corporate Reseller (National)
|
Cisco Systems
|
Cisco Gold DVAR (National)
|
|
Master Cloud Builder Specialization
|
|
Master Collaboration Specialization
|
|
Master Security Specialization
|
|
Master UC Specialization
|
|
Cloud and Managed Services Master Partner
|
|
Cloud Services Reseller
|
|
Flexpod Premium Partner
|
|
ATP Cisco Enterprise Mobility Services Platform Reseller
|
|
ATP Cisco Telepresence Video Master
|
|
ATP Telehealth Reseller
|
|
ATP Data Virtualization Reseller
|
|
ATP Identity Services Engine
|
|
ATP Physical Security
|
|
Advanced Data Center Storage Networking
|
|
Advanced Routing and Switching
|
|
Advanced Wireless LAN
|
|
Cisco Authorized SP Video Partner
|
Check Point Software Technologies Ltd.
|
Platinum Reseller
|
Citrix Systems, Inc.
|
Citrix Platinum Partner (National)
|
Dell
|
Premier Partner
|
EMC
|
EMC Velocity Gold Partner (National)
|
Hewlett Packard
|
Platinum - Converged Infrastructure Partner (National)
|
|
Gold Storage / Networking / Server / ServiceOne Specialists
|
|
Gold Cloud Builder Specialist
|
|
QSA - IT Management Ops and Apps
|
|
BCS Gold Specialist
|
|
Autonomy IM Solutions – Data Protector
|
IBM
|
Premier IBM Business Partner (National)
|
Lenovo
|
Lenovo Premium (National)
|
McAfee, Inc.
|
Elite Reseller
|
Microsoft
|
Microsoft Gold (National)
|
NetApp
|
NetApp STAR Partner (National)
|
Oracle Gold Partner
|
Sun SPA Executive Partner (National)
|
|
Sun National Strategic Data Center Authorized
|
Palo Alto Networks, Inc.
|
Platinum Reseller
|
NetApp
|
NetApp STAR Partner (National)
|
Oracle Gold Partner
|
Sun SPA Executive Partner (National)
|
|
Sun National Strategic Data Center Authorized
|
VMware
|
National Premier Partner
|
· | Portfolio income consists of interest income from financing receivables and rents due under operating leases; |
· | Transactional gains consist of net gains or losses on the sale of financial assets; and |
· | Post-contract earnings include month-to-month rents; early termination, prepayment, make-whole, or buyout fees; and net gains on the sale of off-lease (used) equipment. |
· | For direct financing and sales-type leases, we record the net investment in leases, which consists of the sum of the minimum lease payments, initial direct costs (direct financing leases only), and unguaranteed residual value (gross investment) less the unearned income. The unearned income is amortized over the life of the lease using the interest method. Under sales-type leases, the difference between the present value of minimum lease payments and the cost of the leased property plus initial direct costs (net margins) is recorded as profit at the inception of the lease. |
· | For operating leases, rental amounts are accrued on a straight-line basis over the lease term and are recognized as financing revenue. |
Three Months Ended September 30,
|
Six Months Ended September 30,
|
|||||||||||||||||||||||||||||||
2014
|
2013
|
Change
|
2014
|
2013
|
Change
|
|||||||||||||||||||||||||||
Sales of product and services
|
$
|
286,584
|
$
|
261,283
|
$
|
25,301
|
9.7
|
%
|
$
|
547,940
|
$
|
508,320
|
$
|
39,620
|
7.8
|
%
|
||||||||||||||||
Fee and other income
|
1,782
|
1,829
|
(47
|
)
|
(2.6
|
%)
|
3,829
|
3,286
|
543
|
16.5
|
%
|
|||||||||||||||||||||
Total revenues
|
288,366
|
263,112
|
25,254
|
9.6
|
%
|
551,769
|
511,606
|
40,163
|
7.9
|
%
|
||||||||||||||||||||||
Cost of sales, product and services
|
230,742
|
214,854
|
15,888
|
7.4
|
%
|
443,650
|
418,184
|
25,466
|
6.1
|
%
|
||||||||||||||||||||||
Professional and other fees
|
1,321
|
1,580
|
(259
|
)
|
(16.4
|
%)
|
2,907
|
4,443
|
(1,536
|
)
|
(34.6
|
%)
|
||||||||||||||||||||
Salaries and benefits
|
31,963
|
27,244
|
4,719
|
17.3
|
%
|
62,633
|
55,142
|
7,491
|
13.6
|
%
|
||||||||||||||||||||||
General and administrative
|
6,703
|
5,701
|
1,002
|
17.6
|
%
|
12,461
|
10,515
|
1,946
|
18.5
|
%
|
||||||||||||||||||||||
Interest and financing costs
|
19
|
26
|
(7
|
)
|
(26.9
|
%)
|
58
|
46
|
12
|
26.1
|
%
|
|||||||||||||||||||||
Operating expenses
|
40,006
|
34,551
|
5,455
|
15.8
|
%
|
78,059
|
70,146
|
7,913
|
11.3
|
%
|
||||||||||||||||||||||
Segment earnings
|
$
|
17,618
|
$
|
13,707
|
$
|
3,911
|
28.5
|
%
|
$
|
30,060
|
$
|
23,276
|
$
|
6,784
|
29.1
|
%
|
Quarter Ended
|
Sequential
|
Year over Year
|
September 30, 2014
|
9.7%
|
9.7%
|
June 30, 2014
|
4.8%
|
5.8%
|
March 31, 2014
|
(2.5%)
|
11.4%
|
December 31, 2013
|
(2.1%)
|
12.1%
|
September 30, 2013
|
5.8%
|
4.4%
|
Three Months Ended September 30,
|
Six Months Ended September 30,
|
|||||||||||||||||||||||||||||||
2014
|
2013
|
Change
|
2014
|
2013
|
Change
|
|||||||||||||||||||||||||||
Financing revenue
|
$
|
9,059
|
$
|
8,001
|
$
|
1,058
|
13.2
|
%
|
$
|
17,933
|
$
|
18,761
|
$
|
(828
|
)
|
(4.4
|
%)
|
|||||||||||||||
Fee and other income
|
47
|
16
|
31
|
193.8
|
%
|
74
|
79
|
(5
|
)
|
(6.3
|
%)
|
|||||||||||||||||||||
Total revenues
|
9,106
|
8,017
|
1,089
|
13.6
|
%
|
18,007
|
18,840
|
(833
|
)
|
(4.4
|
%)
|
|||||||||||||||||||||
Direct lease costs
|
2,806
|
3,495
|
(689
|
)
|
(19.7
|
%)
|
5,763
|
6,748
|
(985
|
)
|
(14.6
|
%)
|
||||||||||||||||||||
Professional and other fees
|
256
|
328
|
(72
|
)
|
(22.0
|
%)
|
503
|
703
|
(200
|
)
|
(28.4
|
%)
|
||||||||||||||||||||
Salaries and benefits
|
2,289
|
2,441
|
(152
|
)
|
(6.2
|
%)
|
4,566
|
5,225
|
(659
|
)
|
(12.6
|
%)
|
||||||||||||||||||||
General and administrative
|
455
|
358
|
97
|
27.1
|
%
|
970
|
545
|
425
|
78.0
|
%
|
||||||||||||||||||||||
Interest and financing costs
|
592
|
407
|
185
|
45.5
|
%
|
1,197
|
847
|
350
|
41.3
|
%
|
||||||||||||||||||||||
Operating expenses
|
3,592
|
3,534
|
58
|
1.6
|
%
|
7,236
|
7,320
|
(84
|
)
|
(1.1
|
%)
|
|||||||||||||||||||||
Operating income
|
2,708
|
988
|
1,720
|
174.1
|
%
|
5,008
|
4,772
|
236
|
4.9
|
%
|
||||||||||||||||||||||
Other income
|
-
|
-
|
-
|
0.0
|
%
|
1,434
|
-
|
1,434
|
0.0
|
%
|
||||||||||||||||||||||
Segment earnings
|
$
|
2,708
|
$
|
988
|
$
|
1,720
|
174.1
|
%
|
$
|
6,442
|
$
|
4,772
|
$
|
1,670
|
35.0
|
%
|
Six Months Ended September 30,
|
||||||||
2014
|
2013
|
|||||||
Net cash (used in) provided by operating activities
|
$
|
(10,995
|
)
|
$
|
5,561
|
|||
Net cash used in investing activities
|
(22,182
|
)
|
(25,333
|
)
|
||||
Net cash provided by financing activities
|
15,948
|
20,748
|
||||||
Effect of exchange rate changes on cash
|
(9
|
)
|
-
|
|||||
Net (decrease) increase in cash and cash equivalents
|
$
|
(17,238
|
)
|
$
|
976
|
|
Six Months Ended September 30,
|
|||||||
|
2014
|
2013
|
||||||
GAAP: net cash (used in) provided by operating activities
|
$
|
(10,995
|
)
|
$
|
5,561
|
|||
Principal payments from customers directly to lenders
|
7,009
|
9,084
|
||||||
Non-GAAP: adjusted net cash provided by operating activities
|
$
|
(3,986
|
)
|
$
|
14,645
|
|
Six Months Ended September 30,
|
|||||||
|
2014
|
2013
|
||||||
GAAP: net cash used in investing activities
|
$
|
(22,182
|
)
|
$
|
(25,333
|
)
|
||
Principal payments from customers directly to lenders
|
12,162
|
631
|
||||||
Non-GAAP: adjusted net cash (used in) investing activities
|
$
|
(10,020
|
)
|
$
|
(24,702
|
)
|
|
Six Months Ended September 30,
|
|||||||
|
2014
|
2013
|
||||||
GAAP: net cash provided by financing activities
|
$
|
15,948
|
$
|
20,748
|
||||
Principal payments from customers directly to lenders
|
(19,171
|
)
|
(9,715
|
)
|
||||
Non-GAAP: adjusted net cash (used in) provided by financing activities
|
$
|
(3,223
|
)
|
$
|
11,033
|
Maximum Credit Limit
at September 30, 2014
|
Balance as of
September 30, 2014
|
Maximum Credit Limit
at March 31,2014
|
Balance as of
March 31, 2014
|
|||
$225,000
|
|
$120,631
|
|
$175,000
|
|
$93,416
|
Period
|
Total number of shares purchased (1)
|
Average price paid per share
|
Total number of shares purchased as part of publicly announced plans or programs
|
Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs
|
||||||||||||
April 1, 2014 through April 30, 2014
|
414,013
|
$
|
47.78
|
414,013
|
200,572
|
(2)
|
||||||||||
May 1, 2014 through May 31, 2014
|
115,230
|
$
|
53.54
|
115,230
|
85,342
|
(3)
|
||||||||||
June 1, 2014 through June 15, 2014
|
22,830
|
$
|
55.69
|
22,830
|
62,512
|
(4)
|
||||||||||
June 16, 2014 through June 30, 2014
|
35,158
|
$
|
57.69
|
-
|
500,000
|
(5)
|
||||||||||
July 1, 2014 through July 31, 2014
|
25,740
|
$
|
55.67
|
25,740
|
474,260
|
(6)
|
||||||||||
August 1, 2014 through August 31, 2014
|
15,377
|
$
|
54.74
|
15,377
|
458,883
|
(7)
|
||||||||||
September 1, 2014 through September 30, 2014
|
57,829
|
$
|
56.34
|
57,829
|
401,054
|
(8)
|
(1) | All shares acquired were in open-market purchases, except for 35,158 shares, which were repurchased to satisfy tax withholding obligations that arose due to the vesting of shares of restricted stock. |
(2) | The share purchase authorization in place for the month ended April 30, 2014 had purchase limitations on the number of shares of up to 750,000 shares. As of April 30, 2014, the remaining authorized shares to be purchased were 200,572. |
(3) | The share purchase authorization in place for the month ended May 31, 2014 had purchase limitations on the number of shares of up to 750,000 shares. As of May 31, 2014, the remaining authorized shares to be purchased were 85,342. |
(4) | The share purchase authorization in place through June 15, 2014 had purchase limitations on the number of shares of up to 750,000 shares. As of June 15, 2014, the remaining authorized shares to be purchased were 62,512. |
(5) | On June 12, 2014, the board of directors authorized the Company to repurchase up to 500,000 shares of its outstanding common stock over a 12-month period commencing June 16, 2014. As of June 30, 2014, the remaining authorized shares to be purchased were 500,000. |
(6) | The share purchase authorization in place for the month ended July 31, 2014 had purchase limitations on the number of shares of up to 500,000 shares. As of July 31, 2014, the remaining authorized shares to be purchased were 474,260. |
(7) | The share purchase authorization in place for the month ended August 31, 2014 had purchase limitations on the number of shares of up to 500,000 shares. As of August 31, 2014, the remaining authorized shares to be purchased were 458,883. |
(8) | The share purchase authorization in place for the month ended September 30, 2014 had purchase limitations on the number of shares of up to 500,000 shares. As of September 30, 2014, the remaining authorized shares to be purchased were 401,054. |
|
e
Plus inc.
|
|
|
|
|
Date: November 5, 2014
|
/s/ PHILLIP G. NORTON
|
|
|
By: Phillip G. Norton, Chairman of the Board,
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
|
|
|
|
Date: November 5, 2014
|
/s/ ELAINE D. MARION
|
|
|
By: Elaine D. Marion
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
1.
|
Section 2 of the Agreement is hereby deleted in its entirety and replaced with the following:
|
2.
|
Section 6 of the Agreement is hereby deleted in its entirety and replaced with the following:
|
EPLUS TECHNOLOGY, INC.
|
||
By:
|
/s/ Elaine D. Marion
|
|
Print Name:
|
Elaine D. Marion
|
|
Title:
|
Chief Financial Officer
|
|
GE COMMERCIAL DISTRIBUTION FINANCE COPORATION
|
||
By:
|
/s/ Scott Hunt
|
|
Print Name:
|
Scott Hunt
|
|
Title:
|
Sr. Portfolio Manager
|
|
1.
|
Section 2.1 of the Agreement is hereby deleted in its entirety and replaced with the following:
|
2.
|
Section 3.7 of the Agreement is hereby deleted in its entirety and replaced with the following:
|
3.
|
Section 5.2 of the Agreement is hereby deleted in its entirety and replaced with the following:
|
EPLUS TECHNOLOGY, INC.
|
||
By:
|
/s/ Elaine D. Marion
|
|
Print Name:
|
Elaine D. Marion
|
|
Title:
|
Chief Financial Officer
|
|
GE COMMERCIAL DISTRIBUTION FINANCE COPORATION
|
||
By:
|
/s/ Scott Hunt
|
|
Print Name:
|
Scott Hunt
|
|
Title:
|
Sr. Portfolio Manager
|
|
1. | I have reviewed this quarterly report on Form 10-Q of e Plus inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15 (f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ PHILLIP G. NORTON
|
|
Phillip G. Norton
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
1. | I have reviewed this quarterly report on Form 10-Q of e Plus inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15 (f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ ELAINE D. MARION
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Elaine D. Marion
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Chief Financial Officer
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(Principal Financial Officer)
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a) | the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
b) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of e Plus inc. |
/s/ PHILLIP G. NORTON
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Phillip G. Norton Chief Executive Officer
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(Principal Executive Officer)
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/s/ ELAINE D. MARION
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Elaine D. Marion Chief Financial Officer
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(Principal Financial Officer)
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