☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
54-1817218
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $.01 par value
|
PLUS
|
NASDAQ Global Select Market
|
Large accelerated filer ☒
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
Smaller reporting company ☐
|
Emerging growth company ☐
|
Part I. Financial Information:
|
|
||
|
|
|
|
Item 1.
|
|
Financial Statements
|
|
|
|
|
|
|
|
Unaudited Consolidated Balance Sheets as of December 30, 2019 and March 31, 2019
|
5
|
|
|
|
|
|
|
Unaudited Consolidated Statements of Operations for the Three and Nine Months Ended December 31, 2019 and 2018
|
6
|
|
|
|
|
|
|
Unaudited Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended December 31, 2019 and 2018
|
7
|
|
|
|
|
|
|
Unaudited Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2019 and 2018
|
8
|
|
|
|
|
|
|
Unaudited Consolidated Statements of Stockholders’ Equity for the Nine Months Ended December 31, 2019 and 2018
|
10
|
|
|
|
|
|
|
Notes to Unaudited Consolidated Financial Statements
|
11
|
|
|
|
|
Item 2.
|
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
29
|
|
|
|
|
Item 3.
|
|
Quantitative and Qualitative Disclosures About Market Risk
|
45
|
|
|
|
|
Item 4.
|
|
Controls and Procedures
|
45
|
|
|
|
|
Part II. Other Information:
|
|
||
|
|
|
|
Item 1.
|
|
Legal Proceedings
|
46
|
|
|
|
|
Item 1A.
|
Risk Factors
|
46
|
|
|
|
|
|
Item 2.
|
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
47
|
|
|
|
|
Item 3.
|
|
Defaults Upon Senior Securities
|
47
|
|
|
|
|
Item 4.
|
|
Mine Safety Disclosures
|
47
|
|
|
|
|
Item 5.
|
|
Other Information
|
47
|
|
|
|
|
Item 6.
|
|
Exhibits
|
48
|
|
|
|
|
Signatures & Certifications
|
49
|
• |
national and international political instability fostering uncertainty and volatility in the global economy including exposure to fluctuation in foreign currency rates, interest rates, and downward pressure on prices;
|
• |
domestic and international economic regulations uncertainty (e.g., tariffs, and trade agreements);
|
• |
significant adverse changes in, reductions in, or loss of our largest volume customer or one or more of our large volume customers, or vendors;
|
• |
exposure to changes in, interpretations of, or enforcement trends in legislation and regulatory matters;
|
• |
the creditworthiness of our customers and our ability to reserve adequately for credit losses;
|
• |
reduction of vendor incentives provided to us;
|
• |
managing a diverse product set of solutions in highly competitive markets with a number of key vendors;
|
• |
increasing the total number of customers using integrated solutions by up-selling within our customer base and gaining new customers;
|
• |
adapting to meet changes in markets and competitive developments;
|
• |
maintaining and increasing advanced professional services by recruiting and retaining highly skilled, competent personnel, and vendor certifications;
|
• |
increasing the total number of customers who use our managed services and professional services and continuing to enhance our managed services offerings to remain competitive in the marketplace;
|
• |
performing professional and managed services competently;
|
• |
maintaining our proprietary software and updating our technology infrastructure to remain competitive in the marketplace;
|
• |
reliance on third-parties to perform some of our service obligations to our customers;
|
• |
changes in the Information Technology (“IT”) industry and/or rapid changes in product offerings, including the proliferation of the cloud, infrastructure as a service (“IaaS”), and software as a service (“SaaS”);
|
• |
our dependency on continued innovations in hardware, software, and services offerings by our vendors and our ability to partner with them;
|
• |
future growth rates in our core businesses;
|
• |
failure to comply with public sector contracts, or applicable laws or regulations;
|
• |
changes to or loss of members of our senior management team and/or failure to successfully implement succession plans;
|
• |
our dependence on key personnel to maintain certain customer relationships, and our ability to hire, train, 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 contracts may not be adequate to protect us, and we are subject to audit in which we may not pass, and our professional and liability insurance policies coverage may be insufficient to cover a claim;
|
• |
disruptions or a security breach in our or our vendors’ IT systems and data and audio communication networks;
|
• |
our ability to secure our own and our customers’ electronic and other confidential information, and remain secure during a cyber-security attack;
|
• |
our ability to raise capital, maintain or increase as needed our lines of credit with vendors or floor planning facility, obtain debt for our financing transactions, or the effect of those changes on our common stock price;
|
• |
our ability to realize our investment in leased equipment;
|
• |
our ability to successfully perform due diligence and integrate acquired businesses;
|
• |
the possibility of goodwill impairment charges in the future;
|
• |
our ability to protect our intellectual property rights and successfully defend any challenges to the validity of our patents or allegations that we are infringing upon any third-party patents, and the costs associated with those actions, and, when appropriate, license required technology; 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 or inaccurate costs and completion dates for our services, which could affect our estimates.
|
Item 1. |
Financial Statements
|
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Net sales
|
||||||||||||||||
Product
|
$
|
378,569
|
$
|
310,443
|
$
|
1,077,667
|
$
|
942,735
|
||||||||
Services
|
50,422
|
35,221
|
144,261
|
104,504
|
||||||||||||
Total
|
428,991
|
345,664
|
1,221,928
|
1,047,239
|
||||||||||||
Cost of sales
|
||||||||||||||||
Product
|
293,209
|
241,856
|
832,135
|
735,802
|
||||||||||||
Services
|
32,086
|
20,895
|
90,427
|
62,321
|
||||||||||||
Total
|
325,295
|
262,751
|
922,562
|
798,123
|
||||||||||||
Gross profit
|
103,696
|
82,913
|
299,366
|
249,116
|
||||||||||||
Selling, general, and administrative
|
73,090
|
59,728
|
209,400
|
174,399
|
||||||||||||
Depreciation and amortization
|
3,647
|
2,719
|
10,667
|
8,250
|
||||||||||||
Interest and financing costs
|
694
|
443
|
1,898
|
1,403
|
||||||||||||
Operating expenses
|
77,431
|
62,890
|
221,965
|
184,052
|
||||||||||||
Operating income
|
26,265
|
20,023
|
77,401
|
65,064
|
||||||||||||
Other income
|
997
|
721
|
912
|
1,140
|
||||||||||||
Earnings before tax
|
27,262
|
20,744
|
78,313
|
66,204
|
||||||||||||
Provision for income taxes
|
7,712
|
5,880
|
22,477
|
18,064
|
||||||||||||
Net earnings
|
$
|
19,550
|
$
|
14,864
|
$
|
55,836
|
$
|
48,140
|
||||||||
Net earnings per common share—basic
|
$
|
1.47
|
$
|
1.10
|
$
|
4.19
|
$
|
3.57
|
||||||||
Net earnings per common share—diluted
|
$
|
1.46
|
$
|
1.10
|
$
|
4.16
|
$
|
3.54
|
||||||||
Weighted average common shares outstanding—basic
|
13,320
|
13,471
|
13,329
|
13,467
|
||||||||||||
Weighted average common shares outstanding—diluted
|
13,378
|
13,544
|
13,410
|
13,592
|
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
NET EARNINGS
|
$
|
19,550
|
$
|
14,864
|
$
|
55,836
|
$
|
48,140
|
||||||||
OTHER COMPREHENSIVE INCOME, NET OF TAX:
|
||||||||||||||||
Foreign currency translation adjustments
|
682
|
(302
|
)
|
69
|
(1,102
|
)
|
||||||||||
Other comprehensive income (loss)
|
682
|
(302
|
)
|
69
|
(1,102
|
)
|
||||||||||
TOTAL COMPREHENSIVE INCOME
|
$
|
20,232
|
$
|
14,562
|
$
|
55,905
|
$
|
47,038
|
|
Nine Months Ended December 31,
|
|||||||
2019
|
2018
|
|||||||
Cash Flows From Operating Activities:
|
||||||||
Net earnings
|
$
|
55,836
|
$
|
48,140
|
||||
Adjustments to reconcile net earnings to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
15,217
|
13,341
|
||||||
Reserve for credit losses
|
504
|
269
|
||||||
Share-based compensation expense
|
6,019
|
5,418
|
||||||
Deferred taxes
|
(3
|
)
|
(215
|
)
|
||||
Payments from lessees directly to lenders—operating leases
|
(44
|
)
|
(118
|
)
|
||||
Gain on disposal of property, equipment, and leased equipment
|
(614
|
)
|
(1,307
|
)
|
||||
Gain on sale of financing receivables
|
-
|
(5,030
|
)
|
|||||
Changes in:
|
||||||||
Accounts receivable
|
(102,093
|
)
|
(56,769
|
)
|
||||
Inventories-net
|
(10,429
|
)
|
(11,674
|
)
|
||||
Financing receivables—net
|
(87,633
|
)
|
(1,070
|
)
|
||||
Deferred costs and other assets
|
(18,424
|
)
|
3,971
|
|||||
Accounts payable-trade
|
33,574
|
16,062
|
||||||
Salaries and commissions payable, deferred revenue, and other liabilities
|
33,362
|
(8,846
|
)
|
|||||
Net cash used in / provided by operating activities
|
$
|
(74,728
|
)
|
$
|
2,172
|
|||
Cash Flows From Investing Activities:
|
||||||||
Proceeds from sale of property, equipment, and leased equipment
|
1,404
|
2,550
|
||||||
Purchases of property, equipment, and operating lease equipment
|
(7,209
|
)
|
(8,492
|
)
|
||||
Purchases of assets to be leased or financed
|
-
|
(13,941
|
)
|
|||||
Issuance of financing receivables
|
-
|
(140,307
|
)
|
|||||
Repayments of financing receivables
|
-
|
55,198
|
||||||
Proceeds from sale of financing receivables
|
-
|
56,983
|
||||||
Cash used in acquisitions, net of cash acquired
|
(14,239
|
)
|
-
|
|||||
Net cash used in investing activities
|
$
|
(20,044
|
)
|
$
|
(48,009
|
)
|
|
Nine Months Ended December 31,
|
|||||||
2019
|
2018
|
|||||||
Cash Flows From Financing Activities:
|
||||||||
Borrowings of non-recourse and recourse notes payable
|
$
|
75,557
|
$
|
40,693
|
||||
Repayments of non-recourse and recourse notes payable
|
(9,854
|
)
|
(17,447
|
)
|
||||
Repurchase of common stock
|
(13,692
|
)
|
(16,261
|
)
|
||||
Repayments of financing of acquisitions
|
(5,763
|
)
|
(7,634
|
)
|
||||
Net borrowings (repayments) on floor plan facility
|
28,400
|
12,450
|
||||||
Net cash provided by financing activities
|
74,648
|
11,801
|
||||||
Effect of exchange rate changes on cash
|
(137
|
)
|
172
|
|||||
Net Decrease in Cash and Cash Equivalents
|
(20,261
|
)
|
(33,864
|
)
|
||||
Cash and Cash Equivalents, Beginning of Period
|
79,816
|
118,198
|
||||||
Cash and Cash Equivalents, End of Period
|
$
|
59,555
|
$
|
84,334
|
||||
Supplemental Disclosures of Cash Flow Information:
|
||||||||
Cash paid for interest
|
$
|
1,721
|
$
|
1,364
|
||||
Cash paid for income taxes
|
$
|
19,519
|
$
|
18,269
|
||||
Cash paid for amounts included in the measurement of lease liabilities
|
$
|
4,113
|
$
|
-
|
||||
Schedule of Non-Cash Investing and Financing Activities:
|
||||||||
Proceeds from sale of property, equipment, and leased equipment
|
$
|
-
|
$
|
483
|
||||
Purchases of property, equipment, and operating lease equipment
|
$
|
(425
|
)
|
$
|
(2,704
|
)
|
||
Purchases of assets to be leased or financed
|
$
|
-
|
$
|
2,437
|
||||
Issuance of financing receivables
|
$
|
-
|
$
|
(96,406
|
)
|
|||
Proceeds from sale of financing receivables
|
$
|
-
|
$
|
88,119
|
||||
Consideration for acquisitions
|
$
|
(1,037
|
)
|
$
|
-
|
|||
Borrowing of non-recourse and recourse notes payable
|
$
|
111,234
|
$
|
65,042
|
||||
Repayments of non-recourse and recourse notes payable
|
$
|
(44
|
)
|
$
|
(118
|
)
|
||
Vesting of share-based compensation
|
$
|
8,990
|
$
|
12,795
|
||||
Repurchase of common stock
|
$
|
-
|
$
|
(393
|
)
|
|||
New operating lease assets obtained in exchange for lease obligations
|
$
|
6,035
|
$
|
-
|
|
Nine Months Ended December 31, 2019
|
|||||||||||||||||||||||||||
Common Stock
|
Additional
Paid-In
|
Treasury
|
Retained
|
Accumulated
Other
Comprehensive
|
||||||||||||||||||||||||
Shares
|
Par Value
|
Capital
|
Stock
|
Earnings
|
Income
|
Total
|
||||||||||||||||||||||
Balance, March 31, 2019
|
13,611
|
$
|
143
|
$
|
137,243
|
$
|
(53,999
|
)
|
$
|
341,137
|
$
|
(271
|
)
|
$
|
424,253
|
|||||||||||||
Issuance of restricted stock awards
|
86
|
1
|
-
|
-
|
-
|
-
|
1
|
|||||||||||||||||||||
Share-based compensation
|
-
|
-
|
1,919
|
-
|
-
|
-
|
1,919
|
|||||||||||||||||||||
Repurchase of common stock
|
(188
|
)
|
-
|
-
|
(13,455
|
)
|
-
|
-
|
(13,455
|
)
|
||||||||||||||||||
Net earnings
|
-
|
-
|
-
|
-
|
16,188
|
-
|
16,188
|
|||||||||||||||||||||
Foreign currency translation adjustment
|
-
|
-
|
-
|
-
|
-
|
(263
|
)
|
(263
|
)
|
|||||||||||||||||||
Balance, June 30, 2019
|
13,509
|
$
|
144
|
$
|
139,162
|
$
|
(67,454
|
)
|
$
|
357,325
|
$
|
(534
|
)
|
$
|
428,643
|
|||||||||||||
Issuance of restricted stock awards
|
7
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Share-based compensation
|
-
|
-
|
2,135
|
-
|
-
|
-
|
2,135
|
|||||||||||||||||||||
Repurchase of common stock
|
(3
|
)
|
-
|
-
|
(237
|
)
|
-
|
-
|
(237
|
)
|
||||||||||||||||||
Net earnings
|
-
|
-
|
-
|
-
|
20,098
|
-
|
20,098
|
|||||||||||||||||||||
Foreign currency translation adjustment
|
-
|
-
|
-
|
-
|
-
|
(350
|
)
|
(350
|
)
|
|||||||||||||||||||
Balance, September 30, 2019
|
13,513
|
$
|
144
|
$
|
141,297
|
$
|
(67,691
|
)
|
$
|
377,423
|
$
|
(884
|
)
|
$
|
450,289
|
|||||||||||||
Issuance of restricted stock awards
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Share-based compensation
|
-
|
-
|
1,965
|
-
|
-
|
-
|
1,965
|
|||||||||||||||||||||
Repurchase of common stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Net earnings
|
-
|
-
|
-
|
-
|
19,550
|
-
|
19,550
|
|||||||||||||||||||||
Foreign currency translation adjustment
|
-
|
-
|
-
|
-
|
-
|
682
|
682
|
|||||||||||||||||||||
Balance, December 31, 2019
|
13,513
|
$
|
144
|
$
|
143,262
|
$
|
(67,691
|
)
|
$
|
396,973
|
$
|
(202
|
)
|
$
|
472,486
|
|
Nine Months Ended December 31, 2018
|
|||||||||||||||||||||||||||
Common Stock
|
Additional
Paid-In
|
Treasury
|
Retained
|
Accumulated
Other
Comprehensive
|
||||||||||||||||||||||||
|
Shares
|
Par Value
|
Capital
|
Stock
|
Earnings
|
Income
|
Total
|
|||||||||||||||||||||
Balance, March 31, 2018
|
13,761
|
$
|
142
|
$
|
130,000
|
$
|
(36,016
|
)
|
$
|
277,945
|
$
|
532
|
$
|
372,603
|
||||||||||||||
Issuance of restricted stock awards
|
70
|
1
|
-
|
-
|
-
|
-
|
1
|
|||||||||||||||||||||
Share-based compensation
|
-
|
-
|
1,693
|
-
|
-
|
-
|
1,693
|
|||||||||||||||||||||
Repurchase of common stock
|
(108
|
)
|
-
|
-
|
(9,059
|
)
|
-
|
-
|
(9,059
|
)
|
||||||||||||||||||
Net earnings
|
-
|
-
|
-
|
-
|
15,273
|
-
|
15,273
|
|||||||||||||||||||||
Foreign currency translation adjustment
|
-
|
-
|
-
|
-
|
-
|
(657
|
)
|
(657
|
)
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||
Balance, June 30, 2018
|
13,723
|
$
|
143
|
$
|
131,693
|
$
|
(45,075
|
)
|
$
|
293,218
|
$
|
(125
|
)
|
$
|
379,854
|
|||||||||||||
Issuance of restricted stock awards
|
7
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Share-based compensation
|
-
|
-
|
1,868
|
-
|
-
|
-
|
1,868
|
|||||||||||||||||||||
Repurchase of common stock
|
(3
|
)
|
-
|
-
|
(305
|
)
|
-
|
-
|
(305
|
)
|
||||||||||||||||||
Net earnings
|
-
|
-
|
-
|
-
|
18,003
|
-
|
18,003
|
|||||||||||||||||||||
Foreign currency translation adjustment
|
-
|
-
|
-
|
-
|
-
|
(143
|
)
|
(143
|
)
|
|||||||||||||||||||
Balance, September 30, 2018
|
13,727
|
$
|
143
|
$
|
133,561
|
$
|
(45,380
|
)
|
$
|
311,221
|
$
|
(268
|
)
|
$
|
399,277
|
|||||||||||||
Issuance of restricted stock awards
|
(2
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||
Share-based compensation
|
-
|
-
|
1,857
|
-
|
-
|
-
|
1,857
|
|||||||||||||||||||||
Repurchase of common stock
|
(85
|
)
|
-
|
-
|
(6,519
|
)
|
-
|
-
|
(6,519
|
)
|
||||||||||||||||||
Net earnings
|
-
|
-
|
-
|
-
|
14,864
|
-
|
14,864
|
|||||||||||||||||||||
Foreign currency translation adjustment
|
-
|
-
|
-
|
-
|
-
|
(302
|
)
|
(302
|
)
|
|||||||||||||||||||
Balance, December 31, 2018
|
13,640
|
$
|
143
|
$
|
135,418
|
$
|
(51,899
|
)
|
$
|
326,085
|
$
|
(570
|
)
|
$
|
409,177
|
1. |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
2. |
RECENT ACCOUNTING PRONOUNCEMENTS
|
3. |
REVENUES
|
Contract liabilities
|
December 31, 2019
|
March 31, 2019
|
||||||
Current (included in deferred revenue)
|
$
|
54,482
|
$
|
46,356
|
||||
Non-current (included in other liabilities)
|
$
|
16,874
|
$
|
13,593
|
Remainder of Year ending March 31, 2020
|
$
|
9,439
|
||
Year ending March 31, 2021
|
20,100
|
|||
Year ending March 31, 2022
|
9,589
|
|||
Year ending March 31, 2023
|
2,935
|
|||
Year ending March 31, 2024
|
467
|
|||
Year ending March 31, 2025 and thereafter
|
443
|
|||
Total remaining performance obligations
|
$
|
42,973
|
4. |
FINANCING RECEIVABLES AND OPERATING LEASES
|
|
Three months ended
December 31, 2019
|
Nine months ended
December 31, 2019
|
||||||
Net sales
|
$
|
5,710
|
$
|
13,697
|
||||
Cost of sales
|
4,807
|
11,459
|
||||||
Gross Profit
|
$
|
903
|
$
|
2,238
|
|
Three months ended
December 31, 2019
|
Nine months ended
December 31, 2019
|
||||||
Interest Income on sales-type leases
|
$
|
1,272
|
$
|
4,862
|
||||
Lease income on operating leases
|
$
|
4,489
|
$
|
14,908
|
December 31, 2019
|
Notes
Receivables
|
Lease-Related
Receivables
|
Total Financing
Receivables
|
|||||||||
Minimum payments
|
$
|
60,234
|
$
|
81,450
|
$
|
141,684
|
||||||
Estimated unguaranteed residual value (1)
|
-
|
21,073
|
21,073
|
|||||||||
Initial direct costs, net of amortization (2)
|
297
|
319
|
616
|
|||||||||
Unearned income
|
-
|
(11,937
|
)
|
(11,937
|
)
|
|||||||
Reserve for credit losses (3)
|
(788
|
)
|
(642
|
)
|
(1,430
|
)
|
||||||
Total, net
|
$
|
59,743
|
$
|
90,263
|
$
|
150,006
|
||||||
Reported as:
|
||||||||||||
Current
|
$
|
41,350
|
$
|
47,879
|
$
|
89,229
|
||||||
Long-term
|
18,393
|
42,384
|
60,777
|
|||||||||
Total, net
|
$
|
59,743
|
$
|
90,263
|
$
|
150,006
|
(1) |
Includes estimated unguaranteed residual values of $15,883 thousand for sales type leases, which have been sold and accounted for as sales.
|
(2) |
Initial direct costs are shown net of amortization of $299 thousand.
|
(3) |
For details on reserve for credit losses, refer to Note 7, “Reserves for Credit Losses.”
|
March 31, 2019
|
Notes
Receivables
|
Lease-Related
Receivables
|
Total Financing
Receivables
|
|||||||||
Minimum payments
|
$
|
40,563
|
$
|
64,201
|
$
|
104,764
|
||||||
Estimated unguaranteed residual value (1)
|
-
|
14,639
|
14,639
|
|||||||||
Initial direct costs, net of amortization (2)
|
377
|
332
|
709
|
|||||||||
Unearned income
|
-
|
(7,671
|
)
|
(7,671
|
)
|
|||||||
Reserve for credit losses (3)
|
(505
|
)
|
(530
|
)
|
(1,035
|
)
|
||||||
Total, net
|
$
|
40,435
|
$
|
70,971
|
$
|
111,406
|
||||||
Reported as:
|
||||||||||||
Current
|
$
|
30,852
|
$
|
32,914
|
$
|
63,766
|
||||||
Long-term
|
9,583
|
38,057
|
47,640
|
|||||||||
Total, net
|
$
|
40,435
|
$
|
70,971
|
$
|
111,406
|
(1) |
Includes $8,996 thousand for the estimated residual values of sales type leases and direct financing leases for which we sold the financing assets.
|
(2) |
Initial direct costs are shown net of amortization of $275 thousand.
|
(3) |
For details on reserve for credit losses, refer to Note 7, “Reserves for Credit Losses.”
|
Remainder of year ending March 31, 2020
|
$
|
36,224
|
||
Year ending March 31, 2021
|
23,059
|
|||
Year ending March 31, 2022
|
13,728
|
|||
Year ending March 31, 2023
|
5,946
|
|||
Year ending March 31, 2024 and thereafter
|
2,492
|
|||
Total
|
$
|
81,449
|
|
December 31,
2019
|
March 31,
2019
|
||||||
Cost of equipment under operating leases
|
$
|
24,692
|
$
|
21,532
|
||||
Accumulated depreciation
|
(11,963
|
)
|
(10,139
|
)
|
||||
Investment in operating lease equipment—net (1)
|
$
|
12,729
|
$
|
11,393
|
(1) |
These totals include estimated unguaranteed residual values of $3.2 million and $2.9 million as of December 31, 2019 and March 31, 2019, respectively.
|
Remainder of year ending March 31, 2020
|
$
|
1,476
|
||
Year ending March 31, 2021
|
4,380
|
|||
Year ending March 31, 2022
|
2,961
|
|||
Year ending March 31, 2023
|
1,626
|
|||
Year ending March 31, 2024 and thereafter
|
443
|
|||
Total
|
$
|
10,886
|
5. |
LESSEE ACCOUNTING
|
Lease term and Discount Rate
|
December 31, 2019
|
|||
Weighted average remaining lease term (months)
|
40
|
|||
Weighted average discount rate
|
4.0
|
%
|
|
December 31, 2019
|
|||
Remainder of year ending March 31, 2020
|
$
|
1,084
|
||
Year ending March 31, 2021
|
5,460
|
|||
Year ending March 31, 2022
|
4,020
|
|||
Year ending March 31, 2023
|
3,049
|
|||
Year ending March 31, 2024
|
1,206
|
|||
Thereafter
|
762
|
|||
Total lease payments
|
$
|
15,581
|
||
Less: Interest
|
(965
|
)
|
||
Present value of lease liabilities
|
$
|
14,616
|
6. |
GOODWILL AND OTHER INTANGIBLE ASSETS
|
|
Goodwill
|
Accumulated
Impairment
Loss
|
Net
Carrying
Amount
|
|||||||||
Beginning balance March 31, 2019
|
$
|
119,480
|
$
|
(8,673
|
)
|
$
|
110,807
|
|||||
Acquisitions
|
7,410
|
-
|
7,410
|
|||||||||
Foreign currency translations
|
8
|
-
|
8
|
|||||||||
Ending balance December 31, 2019
|
$
|
126,898
|
$
|
(8,673
|
)
|
$
|
118,225
|
|
December 31, 2019
|
March 31, 2019
|
||||||||||||||||||||||
Gross
Carrying
Amount
|
Accumulated
Amortization /
Impairment
Loss
|
Net
Carrying
Amount
|
Gross
Carrying
Amount
|
Accumulated
Amortization
/ Impairment
Loss
|
Net
Carrying
Amount
|
|||||||||||||||||||
Customer relationships & other intangibles
|
$
|
63,141
|
$
|
(30,836
|
)
|
$
|
32,305
|
$
|
57,407
|
$
|
(23,865
|
)
|
$
|
33,542
|
||||||||||
Capitalized software development
|
10,193
|
(5,628
|
)
|
4,565
|
10,188
|
(4,802
|
)
|
5,386
|
||||||||||||||||
Total
|
$
|
73,334
|
$
|
(36,464
|
)
|
$
|
36,870
|
$
|
67,595
|
$
|
(28,667
|
)
|
$
|
38,928
|
7. |
RESERVES FOR CREDIT LOSSES
|
|
Accounts
Receivable
|
Notes
Receivable
|
Lease-
Related
Receivables
|
Total
|
||||||||||||
Balance April 1, 2019
|
$
|
1,579
|
$
|
505
|
$
|
530
|
$
|
2,614
|
||||||||
Provision for credit losses
|
107
|
283
|
114
|
504
|
||||||||||||
Write-offs and other
|
(304
|
)
|
-
|
(2
|
)
|
(306
|
)
|
|||||||||
Balance December 31, 2019
|
$
|
1,382
|
$
|
788
|
$
|
642
|
$
|
2,812
|
|
Accounts
Receivable
|
Notes
Receivable
|
Lease-
Related
Receivables
|
Total
|
||||||||||||
Balance April 1, 2018
|
$
|
1,538
|
$
|
486
|
$
|
640
|
$
|
2,664
|
||||||||
Provision for credit losses
|
275
|
50
|
(131
|
)
|
194
|
|||||||||||
Write-offs and other
|
(246
|
)
|
-
|
-
|
(246
|
)
|
||||||||||
Balance December 31, 2018
|
$
|
1,567
|
$
|
536
|
$
|
509
|
$
|
2,612
|
|
December 31, 2019
|
March 31, 2019
|
||||||||||||||
Notes
Receivable
|
Lease-
Related
Receivables |
Notes
Receivable
|
Lease-
Related
Receivables
|
|||||||||||||
Reserves for credit losses:
|
||||||||||||||||
Ending balance: collectively evaluated for impairment
|
$
|
726
|
$
|
642
|
$
|
443
|
$
|
530
|
||||||||
Ending balance: individually evaluated for impairment
|
62
|
-
|
62
|
-
|
||||||||||||
Ending balance
|
$
|
788
|
$
|
642
|
$
|
505
|
$
|
530
|
||||||||
Minimum payments:
|
||||||||||||||||
Ending balance: collectively evaluated for impairment
|
$
|
60,145
|
$
|
81,450
|
$
|
40,501
|
$
|
64,201
|
||||||||
Ending balance: individually evaluated for impairment
|
89
|
-
|
62
|
-
|
||||||||||||
Ending balance
|
$
|
60,234
|
$
|
81,450
|
$
|
40,563
|
$
|
64,201
|
|
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
|
||||||||||||||||||||||||||||||
December 31, 2019
|
||||||||||||||||||||||||||||||||||||||||
High CQR
|
$
|
695
|
$
|
322
|
$
|
252
|
$
|
1,269
|
$
|
390
|
$
|
49,887
|
$
|
51,546
|
$
|
(4,890
|
)
|
$
|
(31,698
|
)
|
$
|
14,958
|
||||||||||||||||||
Average CQR
|
315
|
18
|
74
|
407
|
716
|
28,781
|
29,904
|
(2,111
|
)
|
(13,472
|
)
|
14,321
|
||||||||||||||||||||||||||||
Low CQR
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Total
|
$
|
1,010
|
$
|
340
|
$
|
326
|
$
|
1,676
|
$
|
1,106
|
$
|
78,668
|
$
|
81,450
|
$
|
(7,001
|
)
|
$
|
(45,170
|
)
|
$
|
29,279
|
||||||||||||||||||
March 31, 2019
|
||||||||||||||||||||||||||||||||||||||||
High CQR
|
$
|
325
|
$
|
41
|
$
|
10
|
$
|
376
|
$
|
543
|
$
|
29,503
|
$
|
30,422
|
$
|
(2,799
|
)
|
$
|
(11,044
|
)
|
$
|
16,579
|
||||||||||||||||||
Average CQR
|
22
|
54
|
15
|
91
|
125
|
33,563
|
33,779
|
(2,508
|
)
|
(20,848
|
)
|
10,423
|
||||||||||||||||||||||||||||
Low CQR
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Total
|
$
|
347
|
$
|
95
|
$
|
25
|
$
|
467
|
$
|
668
|
$
|
63,066
|
$
|
64,201
|
$
|
(5,307
|
)
|
$
|
(31,892
|
)
|
$
|
27,002
|
|
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
|
|||||||||||||||||||||||||||
December 31, 2019
|
||||||||||||||||||||||||||||||||||||
High CQR
|
$
|
578
|
$
|
49
|
$
|
240
|
$
|
867
|
$
|
1,422
|
$
|
42,648
|
$
|
44,937
|
$
|
(20,323
|
)
|
$
|
24,614
|
|||||||||||||||||
Average CQR
|
118
|
29
|
125
|
272
|
246
|
14,690
|
15,208
|
(6,307
|
)
|
8,901
|
||||||||||||||||||||||||||
Low CQR
|
90
|
-
|
29
|
119
|
352
|
(382
|
)
|
89
|
-
|
89
|
||||||||||||||||||||||||||
Total
|
$
|
786
|
$
|
78
|
$
|
394
|
$
|
1,258
|
$
|
2,020
|
$
|
56,956
|
$
|
60,234
|
$
|
(26,630
|
)
|
$
|
33,604
|
|||||||||||||||||
March 31, 2019
|
||||||||||||||||||||||||||||||||||||
High CQR
|
$
|
990
|
$
|
40
|
$
|
30
|
$
|
1,060
|
$
|
3,813
|
$
|
28,113
|
$
|
32,986
|
$
|
(18,245
|
)
|
$
|
14,741
|
|||||||||||||||||
Average CQR
|
105
|
34
|
7
|
146
|
137
|
7,232
|
7,515
|
(1,507
|
)
|
6,008
|
||||||||||||||||||||||||||
Low CQR
|
-
|
-
|
62
|
62
|
-
|
-
|
62
|
-
|
62
|
|||||||||||||||||||||||||||
Total
|
$
|
1,095
|
$
|
74
|
$
|
99
|
$
|
1,268
|
$
|
3,950
|
$
|
35,345
|
$
|
40,563
|
$
|
(19,752
|
)
|
$
|
20,811
|
8. |
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES
|
|
December 31,
2019
|
March 31,
2019
|
||||||
Other current assets:
|
||||||||
Deposits & funds held in escrow
|
$
|
2,438
|
$
|
438
|
||||
Prepaid assets
|
6,324
|
6,425
|
||||||
Other
|
47
|
636
|
||||||
Total other current assets
|
$
|
8,809
|
$
|
7,499
|
||||
Property, equipment and other assets
|
||||||||
Property and equipment, net
|
$
|
7,078
|
$
|
7,314
|
||||
Deferred costs - non-current
|
11,338
|
8,856
|
||||||
Right-of-use assets
|
14,577
|
-
|
||||||
Other
|
1,007
|
1,158
|
||||||
Total other assets - long term
|
$
|
34,000
|
$
|
17,328
|
||||
Other current liabilities:
|
||||||||
Accrued expenses
|
$
|
9,639
|
$
|
7,813
|
||||
Accrued income taxes payable
|
1,424
|
181
|
||||||
Contingent consideration - current
|
283
|
5,162
|
||||||
Short-term lease liability
|
5,231
|
-
|
||||||
Other
|
8,418
|
6,129
|
||||||
Total other current liabilities
|
$
|
24,995
|
$
|
19,285
|
||||
Other liabilities:
|
||||||||
Deferred revenue
|
$
|
17,076
|
$
|
13,789
|
||||
Contingent consideration - long-term
|
-
|
3,780
|
||||||
Long-term lease liability
|
9,385
|
-
|
||||||
Other
|
2,127
|
108
|
||||||
Total other liabilities - long term
|
$
|
28,588
|
$
|
17,677
|
9. |
NOTES PAYABLE AND CREDIT FACILITY
|
|
December 31,
2019
|
March 31,
2019
|
||||||
Recourse notes payable with interest rates at 2.55% as of December 31, 2019 and 4.00% as of March 31, 2019
|
||||||||
Current
|
$
|
2,239
|
$
|
28
|
||||
Non-recourse notes payable secured by certain financing receivables and investments in operating leases with interest rates ranging from 2.90% to 8.45% as of December 31, 2019 and 3.23% to 8.45% as of March 31, 2019.
|
||||||||
Current
|
$
|
59,015
|
$
|
38,117
|
||||
Long-term
|
7,120
|
10,502
|
||||||
Total non-recourse notes payable
|
$
|
66,135
|
$
|
48,619
|
11. |
EARNINGS PER SHARE
|
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Net earnings attributable to common shareholders - basic and diluted
|
$
|
19,550
|
$
|
14,864
|
$
|
55,836
|
$
|
48,140
|
||||||||
Basic and diluted common shares outstanding:
|
||||||||||||||||
Weighted average common shares outstanding — basic
|
13,320
|
13,471
|
13,329
|
13,467
|
||||||||||||
Effect of dilutive shares
|
58
|
73
|
81
|
125
|
||||||||||||
Weighted average shares common outstanding — diluted
|
13,378
|
13,544
|
13,410
|
13,592
|
||||||||||||
Earnings per common share - basic
|
$
|
1.47
|
$
|
1.10
|
$
|
4.19
|
$
|
3.57
|
||||||||
Earnings per common share - diluted
|
$
|
1.46
|
$
|
1.10
|
$
|
4.16
|
$
|
3.54
|
12. |
STOCKHOLDERS’ EQUITY
|
13. |
SHARE-BASED COMPENSATION
|
|
Number of
Shares
|
Weighted
Average Grant-
date Fair Value
|
||||||
Nonvested April 1, 2019
|
224,000
|
$
|
67.70
|
|||||
Granted
|
93,778
|
$
|
72.90
|
|||||
Vested
|
(123,250
|
)
|
$
|
62.07
|
||||
Forfeited
|
(1,189
|
)
|
$
|
81.84
|
||||
Nonvested December 31, 2019
|
193,339
|
$
|
73.73
|
15. |
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)
|
|||||||||||||
December 31, 2019
|
||||||||||||||||
Assets:
|
||||||||||||||||
Money market funds
|
$
|
127
|
$
|
127
|
$
|
-
|
$
|
-
|
||||||||
Liabilities:
|
||||||||||||||||
Contingent consideration
|
$
|
283
|
$
|
-
|
$
|
-
|
$
|
283
|
||||||||
March 31, 2019
|
||||||||||||||||
Assets:
|
||||||||||||||||
Money market funds
|
$
|
50
|
$
|
50
|
$
|
-
|
$
|
-
|
||||||||
Liabilities:
|
||||||||||||||||
Contingent consideration
|
$
|
8,942
|
$
|
-
|
$
|
-
|
$
|
8,942
|
|
Acquisition Date
Amount
|
|||
Accounts receivable
|
$
|
9,208
|
||
Other assets
|
743
|
|||
Identified intangible assets
|
5,720
|
|||
Accounts payable and other current liabilities
|
(6,715
|
)
|
||
Performance obligation
|
(1,140
|
)
|
||
Total identifiable net assets
|
7,816
|
|||
Goodwill
|
7,461
|
|||
Total purchase consideration
|
$
|
15,277
|
|
Acquisition Date
Amount
|
|||
Accounts receivable
|
$
|
10,209
|
||
Other assets
|
1,050
|
|||
Identified intangible assets
|
18,190
|
|||
Accounts payable and other current liabilities
|
(8,611
|
)
|
||
Performance obligation
|
(5,110
|
)
|
||
Total identifiable net assets
|
15,728
|
|||
Goodwill
|
34,301
|
|||
Total purchase consideration
|
$
|
50,029
|
17. |
SEGMENT REPORTING
|
|
Three Months Ended
|
|||||||||||||||||||||||
December 31, 2019
|
December 31, 2018
|
|||||||||||||||||||||||
Technology
|
Financing
|
Total
|
Technology
|
Financing
|
Total
|
|||||||||||||||||||
Sales
|
||||||||||||||||||||||||
Product
|
$
|
360,206
|
$
|
18,363
|
$
|
378,569
|
$
|
299,490
|
$
|
10,953
|
$
|
310,443
|
||||||||||||
Service
|
50,422
|
-
|
50,422
|
35,221
|
-
|
35,221
|
||||||||||||||||||
Net sales
|
$
|
410,628
|
$
|
18,363
|
$
|
428,991
|
$
|
334,711
|
$
|
10,953
|
$
|
345,664
|
||||||||||||
Cost of Sales
|
||||||||||||||||||||||||
Product
|
290,980
|
2,229
|
293,209
|
239,843
|
2,013
|
241,856
|
||||||||||||||||||
Service
|
32,086
|
-
|
32,086
|
20,895
|
-
|
20,895
|
||||||||||||||||||
Total cost of sales
|
323,066
|
2,229
|
325,295
|
260,738
|
2,013
|
262,751
|
||||||||||||||||||
Gross Profit
|
87,562
|
16,134
|
103,696
|
73,973
|
8,940
|
82,913
|
||||||||||||||||||
Selling, general, and administrative
|
67,759
|
5,331
|
73,090
|
56,607
|
3,121
|
59,728
|
||||||||||||||||||
Depreciation and amortization
|
3,619
|
28
|
3,647
|
2,714
|
5
|
2,719
|
||||||||||||||||||
Interest and financing costs
|
-
|
694
|
694
|
-
|
443
|
443
|
||||||||||||||||||
Operating expenses
|
71,378
|
6,053
|
77,431
|
59,321
|
3,569
|
62,890
|
||||||||||||||||||
Operating income
|
16,184
|
10,081
|
26,265
|
14,652
|
5,371
|
20,023
|
||||||||||||||||||
Other income
|
997
|
721
|
||||||||||||||||||||||
Earnings before tax
|
$
|
27,262
|
$
|
20,744
|
||||||||||||||||||||
Net Sales
|
||||||||||||||||||||||||
Contracts with customers
|
$
|
404,918
|
$
|
1,689
|
$
|
406,607
|
$
|
329,635
|
$
|
813
|
$
|
330,448
|
||||||||||||
Financing and other
|
5,710
|
16,674
|
22,384
|
5,076
|
10,140
|
15,216
|
||||||||||||||||||
Net Sales
|
$
|
410,628
|
$
|
18,363
|
$
|
428,991
|
$
|
334,711
|
$
|
10,953
|
$
|
345,664
|
||||||||||||
Selected Financial Data - Statement of Cash Flow
|
||||||||||||||||||||||||
Depreciation and amortization
|
$
|
3,691
|
$
|
1,449
|
$
|
5,140
|
$
|
2,910
|
$
|
1,564
|
$
|
4,474
|
||||||||||||
Purchases of property, equipment and operating lease equipment
|
$
|
786
|
$
|
1,535
|
$
|
2,321
|
$
|
1,496
|
$
|
545
|
$
|
2,041
|
||||||||||||
Selected Financial Data - Balance Sheet
|
||||||||||||||||||||||||
Total assets
|
$
|
733,174
|
$
|
219,434
|
$
|
952,608
|
$
|
613,494
|
$
|
184,695
|
$
|
798,189
|
|
Nine Months Ended
|
|||||||||||||||||||||||
December 31, 2019
|
December 31, 2018
|
|||||||||||||||||||||||
Technology
|
Financing
|
Total
|
Technology
|
Financing
|
Total
|
|||||||||||||||||||
Sales
|
||||||||||||||||||||||||
Product
|
$
|
1,032,620
|
$
|
45,047
|
$
|
1,077,667
|
$
|
911,839
|
$
|
30,896
|
$
|
942,735
|
||||||||||||
Service
|
144,261
|
-
|
144,261
|
104,504
|
-
|
104,504
|
||||||||||||||||||
Net sales
|
1,176,881
|
45,047
|
1,221,928
|
1,016,343
|
30,896
|
1,047,239
|
||||||||||||||||||
Cost of Sales
|
||||||||||||||||||||||||
Product
|
825,509
|
6,626
|
832,135
|
730,311
|
5,491
|
735,802
|
||||||||||||||||||
Service
|
90,427
|
-
|
90,427
|
62,321
|
-
|
62,321
|
||||||||||||||||||
Cost of sales
|
915,936
|
6,626
|
922,562
|
792,632
|
5,491
|
798,123
|
||||||||||||||||||
Gross Profit
|
260,945
|
38,421
|
299,366
|
223,711
|
25,405
|
249,116
|
||||||||||||||||||
Selling, general, and administrative
|
197,615
|
11,785
|
209,400
|
166,199
|
8,200
|
174,399
|
||||||||||||||||||
Depreciation and amortization
|
10,555
|
112
|
10,667
|
8,243
|
7
|
8,250
|
||||||||||||||||||
Interest and financing costs
|
-
|
1,898
|
1,898
|
-
|
1,403
|
1,403
|
||||||||||||||||||
Operating expenses
|
208,170
|
13,795
|
221,965
|
174,442
|
9,610
|
184,052
|
||||||||||||||||||
Operating income
|
52,775
|
24,626
|
77,401
|
49,269
|
15,795
|
65,064
|
||||||||||||||||||
Other income
|
912
|
1,140
|
||||||||||||||||||||||
Earnings before tax
|
$
|
78,313
|
$
|
66,204
|
||||||||||||||||||||
Net Sales
|
||||||||||||||||||||||||
Contracts with customers
|
$
|
1,163,184
|
$
|
3,889
|
$
|
1,167,073
|
$
|
1,000,776
|
$
|
2,469
|
$
|
1,003,245
|
||||||||||||
Financing and other
|
13,697
|
41,158
|
54,855
|
15,567
|
28,427
|
43,994
|
||||||||||||||||||
Net sales
|
$
|
1,176,881
|
$
|
45,047
|
$
|
1,221,928
|
$
|
1,016,343
|
$
|
30,896
|
$
|
1,047,239
|
||||||||||||
Selected Financial Data - Statement of Cash Flow
|
||||||||||||||||||||||||
Depreciation and amortization
|
$
|
10,974
|
$
|
4,243
|
$
|
15,217
|
$
|
8,895
|
$
|
4,446
|
$
|
13,341
|
||||||||||||
Purchases of property, equipment and operating lease equipment
|
$
|
3,461
|
$
|
3,748
|
$
|
7,209
|
$
|
4,472
|
$
|
4,020
|
$
|
8,492
|
||||||||||||
Selected Financial Data - Balance Sheet
|
||||||||||||||||||||||||
Total assets
|
$
|
733,174
|
$
|
219,434
|
$
|
952,608
|
$
|
613,494
|
$
|
184,695
|
$
|
798,189
|
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Customer end market:
|
||||||||||||||||
Technology
|
$
|
77,841
|
$
|
61,549
|
$
|
251,523
|
$
|
219,783
|
||||||||
Telecom, Media & Entertainment
|
84,707
|
58,377
|
218,217
|
144,657
|
||||||||||||
Financial Services
|
56,395
|
54,411
|
149,241
|
147,048
|
||||||||||||
SLED
|
55,908
|
43,846
|
198,964
|
173,442
|
||||||||||||
Healthcare
|
60,275
|
48,121
|
176,202
|
145,652
|
||||||||||||
All others
|
75,502
|
68,407
|
182,734
|
185,761
|
||||||||||||
Net sales
|
410,628
|
334,711
|
1,176,881
|
1,016,343
|
||||||||||||
Financing and other
|
(5,710
|
)
|
(5,076
|
)
|
(13,697
|
)
|
(15,567
|
)
|
||||||||
Revenue from contracts with customers
|
$
|
404,918
|
$
|
329,635
|
$
|
1,163,184
|
$
|
1,000,776
|
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Vendor
|
||||||||||||||||
Cisco Systems
|
$
|
169,265
|
$
|
131,949
|
$
|
488,051
|
$
|
423,249
|
||||||||
NetApp
|
15,799
|
12,408
|
38,997
|
37,447
|
||||||||||||
HP Inc. & HPE
|
15,853
|
22,042
|
57,952
|
59,020
|
||||||||||||
Dell EMC
|
12,025
|
17,201
|
38,300
|
49,599
|
||||||||||||
Arista Networks
|
12,862
|
13,668
|
60,578
|
44,139
|
||||||||||||
Juniper Networks
|
27,419
|
18,681
|
58,843
|
40,341
|
||||||||||||
All others
|
157,405
|
118,762
|
434,160
|
362,548
|
||||||||||||
Net sales
|
410,628
|
334,711
|
1,176,881
|
1,016,343
|
||||||||||||
Financing and other
|
(5,710
|
)
|
(5,076
|
)
|
(13,697
|
)
|
(15,567
|
)
|
||||||||
Revenue from contracts with customers
|
$
|
404,918
|
$
|
329,635
|
$
|
1,163,184
|
$
|
1,000,776
|
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
||||||||||||||
Consolidated
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Net sales
|
$
|
428,991
|
$
|
345,664
|
$
|
1,221,928
|
$
|
1,047,239
|
||||||||
Gross profit
|
$
|
103,696
|
$
|
82,913
|
$
|
299,366
|
$
|
249,116
|
||||||||
Gross margin
|
24.2
|
%
|
24.0
|
%
|
24.5
|
%
|
23.8
|
%
|
||||||||
Operating income margin
|
6.1
|
%
|
5.8
|
%
|
6.3
|
%
|
6.2
|
%
|
||||||||
Net earnings
|
$
|
19,550
|
$
|
14,864
|
$
|
55,836
|
$
|
48,140
|
||||||||
Net earnings margin
|
4.6
|
%
|
4.3
|
%
|
4.6
|
%
|
4.6
|
%
|
||||||||
Net earnings per common share - diluted
|
$
|
1.46
|
$
|
1.10
|
$
|
4.16
|
$
|
3.54
|
||||||||
Non-GAAP: Net earnings (1)
|
$
|
21,941
|
$
|
17,501
|
$
|
65,628
|
$
|
55,712
|
||||||||
Non-GAAP: Net earnings per common share - diluted (1)
|
$
|
1.64
|
$
|
1.29
|
$
|
4.89
|
$
|
4.10
|
||||||||
Adjusted EBITDA (2)
|
$
|
31,856
|
$
|
25,554
|
$
|
95,828
|
$
|
80,804
|
||||||||
Adjusted EBITDA margin
|
7.4
|
%
|
7.4
|
%
|
7.8
|
%
|
7.7
|
%
|
||||||||
Purchases of property and equipment used internally
|
$
|
786
|
$
|
1,496
|
$
|
3,461
|
$
|
4,472
|
||||||||
Purchases of equipment under operating leases
|
1,535
|
545
|
3,748
|
4,020
|
||||||||||||
Total capital expenditures
|
$
|
2,321
|
$
|
2,041
|
$
|
7,209
|
$
|
8,492
|
||||||||
Technology Segment
|
||||||||||||||||
Net sales
|
$
|
410,628
|
$
|
334,711
|
$
|
1,176,881
|
$
|
1,016,343
|
||||||||
Adjusted gross billings (3)
|
$
|
586,308
|
$
|
478,447
|
$
|
1,713,755
|
$
|
1,446,603
|
||||||||
Gross profit
|
$
|
87,562
|
$
|
73,973
|
$
|
260,945
|
$
|
223,711
|
||||||||
Gross margin
|
21.3
|
%
|
22.1
|
%
|
22.2
|
%
|
22.0
|
%
|
||||||||
Operating income
|
$
|
16,184
|
$
|
14,652
|
$
|
52,775
|
$
|
49,269
|
||||||||
Adjusted EBITDA (2)
|
$
|
21,687
|
$
|
20,074
|
$
|
70,895
|
$
|
64,699
|
||||||||
Financing Segment
|
||||||||||||||||
Net sales
|
$
|
18,363
|
$
|
10,953
|
$
|
45,047
|
$
|
30,896
|
||||||||
Gross profit
|
$
|
16,134
|
$
|
8,940
|
$
|
38,421
|
$
|
25,405
|
||||||||
Operating Income
|
$
|
10,081
|
$
|
5,371
|
$
|
24,626
|
$
|
15,795
|
||||||||
Adjusted EBITDA (2)
|
$
|
10,169
|
$
|
5,480
|
$
|
24,933
|
$
|
16,105
|
(1) |
Non-GAAP net earnings and non-GAAP net earnings per common share – diluted is based on net earnings calculated in accordance with GAAP, adjusted to exclude other income (expense), share based compensation, and acquisition and integration expenses, and the related tax effects.
|
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
GAAP: Earnings before tax
|
$
|
27,262
|
$
|
20,744
|
$
|
78,313
|
$
|
66,204
|
||||||||
Share based compensation
|
1,944
|
1,857
|
6,021
|
5,418
|
||||||||||||
Acquisition and integration expense
|
-
|
955
|
1,739
|
2,072
|
||||||||||||
Acquisition related amortization expense
|
2,421
|
1,552
|
6,953
|
5,035
|
||||||||||||
Other income
|
(997
|
)
|
(721
|
)
|
(912
|
)
|
(1,140
|
)
|
||||||||
Non-GAAP: Earnings before provision for income taxes
|
30,630
|
24,387
|
92,114
|
77,589
|
||||||||||||
GAAP: Provision for income taxes
|
7,712
|
5,880
|
22,477
|
18,064
|
||||||||||||
Share based compensation
|
553
|
526
|
1,736
|
1,534
|
||||||||||||
Acquisition and integration expense
|
-
|
270
|
506
|
586
|
||||||||||||
Acquisition related amortization expense
|
668
|
414
|
1,938
|
1,343
|
||||||||||||
Other income
|
(283
|
)
|
(204
|
)
|
(258
|
)
|
(322
|
)
|
||||||||
Tax benefit on restricted stock
|
39
|
-
|
87
|
672
|
||||||||||||
Non-GAAP: Provision for income taxes
|
8,689
|
6,886
|
26,486
|
21,877
|
||||||||||||
Non-GAAP: Net earnings
|
$
|
21,941
|
$
|
17,501
|
$
|
65,628
|
$
|
55,712
|
||||||||
GAAP: Net earnings per common share - diluted
|
$
|
1.46
|
$
|
1.10
|
$
|
4.16
|
$
|
3.54
|
||||||||
Non-GAAP: Net earnings per common share - diluted
|
$
|
1.64
|
$
|
1.29
|
$
|
4.89
|
$
|
4.10
|
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
GAAP: Net earnings per common share - diluted
|
$
|
1.46
|
$
|
1.10
|
$
|
4.16
|
$
|
3.54
|
||||||||
Share based compensation
|
0.10
|
0.10
|
0.32
|
0.30
|
||||||||||||
Acquisition and integration expense
|
-
|
0.05
|
0.09
|
0.10
|
||||||||||||
Acquisition related amortization expense
|
0.14
|
0.08
|
0.38
|
0.27
|
||||||||||||
Other (income) expense
|
(0.05
|
)
|
(0.04
|
)
|
(0.05
|
)
|
(0.07
|
)
|
||||||||
Tax benefit on restricted stock
|
(0.01
|
)
|
-
|
(0.01
|
)
|
(0.04
|
)
|
|||||||||
Total non-GAAP adjustments - net of tax
|
0.18
|
0.19
|
0.73
|
0.56
|
||||||||||||
|
||||||||||||||||
Non-GAAP: Net earnings per common share - diluted
|
$
|
1.64
|
$
|
1.29
|
$
|
4.89
|
$
|
4.10
|
(2) |
We define adjusted EBITDA as net earnings calculated in accordance with GAAP, adjusted for the following: interest expense, depreciation and amortization, share based compensation, acquisition and integration expenses, provision for income taxes, and other income (expense). Segment adjusted EBITDA is defined as operating income calculated in accordance with GAAP, adjusted for interest expense, share based compensation, acquisition and integration expenses, and depreciation and amortization. We consider the interest on notes payable from our financing segment and depreciation expense presented within cost of sales, which includes depreciation on assets financed as operating leases, to be operating expenses. As such, they are not included in the amounts added back to net earnings in the adjusted EBITDA calculation. We provide below a reconciliation of adjusted EBITDA to net earnings, which is the most directly comparable financial measure to this non-GAAP financial measure. Adjusted EBITDA margin is our calculation of adjusted EBITDA divided by net sales.
|
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
||||||||||||||
Consolidated
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Net earnings
|
$
|
19,550
|
$
|
14,864
|
$
|
55,836
|
$
|
48,140
|
||||||||
Provision for income taxes
|
7,712
|
5,880
|
22,477
|
18,064
|
||||||||||||
Share based compensation
|
1,944
|
1,857
|
6,021
|
5,418
|
||||||||||||
Acquisition and integration expense
|
-
|
955
|
1,739
|
2,072
|
||||||||||||
Depreciation and amortization
|
3,647
|
2,719
|
10,667
|
8,250
|
||||||||||||
Other income
|
(997
|
)
|
(721
|
)
|
(912
|
)
|
(1,140
|
)
|
||||||||
Adjusted EBITDA
|
$
|
31,856
|
$
|
25,554
|
$
|
95,828
|
$
|
80,804
|
||||||||
Technology Segment
|
||||||||||||||||
Operating income
|
$
|
16,184
|
$
|
14,652
|
$
|
52,775
|
$
|
49,269
|
||||||||
Depreciation and amortization
|
3,619
|
2,714
|
10,555
|
8,243
|
||||||||||||
Share based compensation
|
1,884
|
1,753
|
5,826
|
5,115
|
||||||||||||
Acquisition and integration expense
|
-
|
955
|
1,739
|
2,072
|
||||||||||||
Adjusted EBITDA
|
$
|
21,687
|
$
|
20,074
|
$
|
70,895
|
$
|
64,699
|
||||||||
Financing Segment
|
||||||||||||||||
Operating income
|
$
|
10,081
|
$
|
5,371
|
$
|
24,626
|
$
|
15,795
|
||||||||
Depreciation and amortization
|
28
|
5
|
112
|
7
|
||||||||||||
Share based compensation
|
60
|
104
|
195
|
303
|
||||||||||||
Adjusted EBITDA
|
$
|
10,169
|
$
|
5,480
|
$
|
24,933
|
$
|
16,105
|
(3) |
We define adjusted gross billings as our technology segment net sales calculated in accordance with US GAAP, adjusted to exclude the costs incurred related to sales of third-party maintenance, software assurance and subscription/SaaS licenses, and services. We have provided below a reconciliation of adjusted gross billings to technology segment net sales, which is the most directly comparable financial measure to this non-GAAP financial measure. The presentation of adjusted gross billings has been updated to align with net sales for our technology segment.
|
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Technology segment net sales
|
$
|
410,628
|
$
|
334,711
|
$
|
1,176,881
|
$
|
1,016,343
|
||||||||
Costs incurred related to sales of third party maintenance, software assurance and subscription/Saas licenses, and services
|
175,680
|
143,736
|
536,874
|
$
|
430,260
|
|||||||||||
Adjusted gross billings
|
$
|
586,308
|
$
|
478,447
|
$
|
1,713,755
|
$
|
1,446,603
|
• |
Portfolio income: Interest income from financing receivables and rents due under operating leases;
|
• |
Transactional gains: Net gains or losses on the sale of financial assets; and
|
• |
Post-contract earnings: Month-to-month rents; early termination, prepayment, make-whole, or buyout fees; and sales of off-lease (used) equipment.
|
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Net sales
|
||||||||||||||||
Product
|
$
|
360,206
|
$
|
299,490
|
$
|
1,032,620
|
$
|
911,839
|
||||||||
Services
|
50,422
|
35,221
|
144,261
|
104,504
|
||||||||||||
Total
|
410,628
|
334,711
|
1,176,881
|
1,016,343
|
||||||||||||
Cost of sales
|
||||||||||||||||
Product
|
290,980
|
239,843
|
825,509
|
730,311
|
||||||||||||
Services
|
32,086
|
20,895
|
90,427
|
62,321
|
||||||||||||
Total
|
323,066
|
260,738
|
915,936
|
792,632
|
||||||||||||
Gross profit
|
87,562
|
73,973
|
260,945
|
223,711
|
||||||||||||
Selling, general, and administrative
|
67,759
|
56,607
|
197,615
|
166,199
|
||||||||||||
Depreciation and amortization
|
3,619
|
2,714
|
10,555
|
8,243
|
||||||||||||
Operating expenses
|
71,378
|
59,321
|
208,170
|
174,442
|
||||||||||||
Operating income
|
$
|
16,184
|
$
|
14,652
|
$
|
52,775
|
$
|
49,269
|
||||||||
Adjusted gross billings
|
$
|
586,308
|
$
|
478,447
|
$
|
1,713,755
|
$
|
1,446,602
|
||||||||
Adjusted EBITDA
|
$
|
21,687
|
$
|
20,074
|
$
|
70,895
|
$
|
64,699
|
|
Twelve Months Ended
December 31,
|
|||||||||||
|
2019
|
2018
|
Change
|
|||||||||
Revenue by customer end market:
|
||||||||||||
Technology
|
22
|
%
|
22
|
%
|
0
|
%
|
||||||
SLED
|
17
|
%
|
17
|
%
|
0
|
%
|
||||||
Financial Services
|
14
|
%
|
15
|
%
|
(1
|
%)
|
||||||
Healthcare
|
15
|
%
|
14
|
%
|
1
|
%
|
||||||
Telecom, Media & Entertainment
|
17
|
%
|
14
|
%
|
3
|
%
|
||||||
All others
|
15
|
%
|
18
|
%
|
(3
|
%)
|
||||||
Total
|
100
|
%
|
100
|
%
|
|
Three Months Ended
December 31, |
Nine Months Ended
December 31, |
||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Net product sales
|
$
|
18,363
|
$
|
10,953
|
$
|
45,047
|
$
|
30,896
|
||||||||
Cost of product sales
|
2,229
|
2,013
|
6,626
|
5,491
|
||||||||||||
Gross profit
|
16,134
|
8,940
|
38,421
|
25,405
|
||||||||||||
Selling, general, and administrative
|
5,331
|
3,121
|
11,785
|
8,200
|
||||||||||||
Depreciation and amortization
|
28
|
5
|
112
|
7
|
||||||||||||
Interest and financing costs
|
694
|
443
|
1,898
|
1,403
|
||||||||||||
Operating expenses
|
6,053
|
3,569
|
13,795
|
9,610
|
||||||||||||
Operating income
|
$
|
10,081
|
$
|
5,371
|
$
|
24,626
|
$
|
15,795
|
||||||||
Adjusted EBITDA
|
$
|
10,169
|
$
|
5,480
|
$
|
24,933
|
$
|
16,105
|
|
Nine Months Ended December 31,
|
|||||||
2019
|
2018
|
|||||||
Net cash provided by (used) in operating activities
|
$
|
(74,728
|
)
|
$
|
2,172
|
|||
Net cash used in investing activities
|
(20,044
|
)
|
(48,009
|
)
|
||||
Net cash provided by financing activities
|
74,648
|
11,801
|
||||||
Effect of exchange rate changes on cash
|
(137
|
)
|
172
|
|||||
Net Decrease in Cash and Cash Equivalents
|
$
|
(20,261
|
)
|
$
|
(33,864
|
)
|
|
Nine Months Ended December 31,
|
|||||||
2019
|
2018
|
|||||||
Technology segment
|
$
|
(18,146
|
)
|
$
|
4,033
|
|||
Financing segment
|
(56,582
|
)
|
(1,861
|
)
|
||||
Net cash used in operating activities
|
$
|
(74,728
|
)
|
$
|
2,172
|
|
As of December 31,
|
|||||||
|
2019
|
2018
|
||||||
|
||||||||
(DSO) Days sales outstanding (1)
|
57
|
54
|
||||||
(DIO) Days inventory outstanding (2)
|
10
|
11
|
||||||
(DPO) Days payable outstanding (3)
|
(41
|
)
|
(39
|
)
|
||||
Cash conversion cycle
|
26
|
26
|
(1) |
Represents the rolling three-month average of the balance of trade accounts receivable-trade, net for our technology segment at the end of the period divided by adjusted gross billings for the same three-month period.
|
(2) |
Represents the rolling three-month average of the balance of inventory, net for our technology segment at the end of the period divided by cost of adjusted gross billings for the same three-month period.
|
(3) |
Represents the rolling three-month average of the combined balance of accounts payable-trade and accounts payable-floor plan for our technology segment at the end of the period divided by cost of adjusted gross billings for the same three-month period.
|
Maximum Credit Limit
at December 31, 2019
|
Balance as of
December 31, 2019
|
Maximum Credit Limit
at March 31, 2019
|
Balance as of
March 31, 2019
|
|||||||||||
$
|
250,000
|
$
|
144,483
|
$
|
250,000
|
$
|
116,083
|
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4. |
Controls and Procedures
|
Item 1. |
Legal Proceedings
|
Item 1A. |
Risk Factors
|
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds
|
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, 2019 through April 30, 2019
|
-
|
$
|
-
|
-
|
385,419
|
(2
|
)
|
|||||||||||||
May 1, 2019 through May 27, 2019
|
2,301
|
$
|
83.38
|
1,300
|
0
|
(3
|
)
|
|||||||||||||
May 28, 2019 through May 31, 2019
|
68,207
|
$
|
72.32
|
68,207
|
431,793
|
(4
|
)
|
|||||||||||||
June 1, 2019 through June 30, 2019
|
117,093
|
$
|
71.15
|
79,283
|
352,510
|
(5
|
)
|
|||||||||||||
July 1, 2019 through July 31, 2019
|
3,260
|
$
|
72.87
|
254
|
352,256
|
(6
|
)
|
|||||||||||||
August 1, 2019 through August 31, 2019
|
-
|
$
|
-
|
-
|
352,256
|
(7
|
)
|
|||||||||||||
September 1, 2019 through September 30, 2019
|
-
|
$
|
-
|
-
|
352,256
|
(8
|
)
|
|||||||||||||
October 1, 2019 through October 31, 2019
|
-
|
$
|
-
|
-
|
352,256
|
(9
|
)
|
|||||||||||||
November 1, 2019 through November 30, 2019
|
-
|
$
|
-
|
-
|
352,256
|
(10
|
)
|
|||||||||||||
December 1, 2019 through December 31, 2019
|
-
|
$
|
-
|
-
|
352,256
|
(11
|
)
|
(1) |
Any shares acquired were in open-market purchases, except for 38,811 shares, out of which 1,001 were repurchased in May 2019 and 37,810 in June 2019 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, 2019 had purchase limitations on the number of shares of up to 500,000 shares. As of April 30, 2019, the remaining authorized shares to be purchased were 385,419.
|
(3) |
As of May 27, 2019, the authorization under the then existing share repurchase plan expired.
|
(4) |
On May 24, 2019, the board of directors authorized the company to repurchase up to 500,000 shares of our outstanding common stock commencing on May 28, 2019 and continuing to May 27, 2020. As of May 31, 2019, the remaining authorized shares to be purchased were 431,793.
|
(5) |
The share purchase authorization in place for the month ended June 30, 2019 had purchase limitations on the number of shares of up to 500,000 shares. As of June 30, 2019, the remaining authorized shares to be purchased were 352,510.
|
(6) |
The share purchase authorization in place for the month ended July 31, 2019 had purchase limitations on the number of shares of up to 500,000 shares. As of July 31, 2019, the remaining authorized shares to be purchased were 352,256.
|
(7) |
The share purchase authorization in place for the month ended August 31, 2019 had purchase limitations on the number of shares of up to 500,000 shares. As of August 31, 2019, the remaining authorized shares to be purchased were 352,256.
|
(8) |
The share purchase authorization in place for the month ended September 30, 2019 had purchase limitations on the number of shares of up to 500,000 shares. As of September 30, 2019, the remaining authorized shares to be purchased were 352,256.
|
(9) |
The share purchase authorization in place for the month ended October 31, 2019 had purchase limitations on the number of shares of up to 500,000 shares. As of October 31, 2019, the remaining authorized shares to be purchased were 352,256.
|
(10) |
The share purchase authorization in place for the month ended November 30, 2019 had purchase limitations on the number of shares of up to 500,000 shares. As of November 30, 2019, the remaining authorized shares to be purchased were 352,256.
|
(11) |
The share purchase authorization in place for the month ended December 31, 2019 had purchase limitations on the number of shares of up to 500,000 shares. As of December 31, 2019, the remaining authorized shares to be purchased were 352,256.
|
Item 3. |
Defaults Upon Senior Securities
|
Item 4. |
Mine Safety Disclosures
|
Item 5. |
Other Information
|
Item 6. |
Exhibits
|
3.1
|
ePlus inc. Amended and Restated Certificate of Incorporation as amended September 15, 2008 (Incorporated herein by reference as Exhibit 3.1 to our Current Report on Form 8-K filed on September 19, 2008)
|
|
|
3.2
|
Amended and Restated Bylaws of ePlus inc., as amended February 15, 2018 (Incorporated herein by reference to Exhibit 3.1 to our Current Report on Form 8-K filed on February 20, 2018)
|
|
|
10.1
|
Amendment No. 1, effective November 14, 2019, to Amended and Restated Employment Agreement, effective September 6, 2017, by and between ePlus inc. and Elaine D. Marron.
|
|
|
10.2
|
Amendment No. 2, effective November 14, 2019, to Amended and Restated Employment Agreement, effective September 6, 2017, by and between ePlus inc. and Mark P. Marron.
|
|
|
10.3
|
Amendment No. 1, effective November 14, 2019, to Amended and Restated Employment Agreement, effective May 7, 2018, by and between ePlus inc. and Darren S Raiguel.
|
|
|
10.4
|
Amendment No. 8, dated November 12, 2019, to Amended and Restated Business Financing Agreement and Amended and Restated Wholesale Financing Agreement between ePlus Technology, inc. and Wells Fargo Commercial Distribution Finance, LLC.
|
|
|
31.1
|
Certification of the Chief Executive Officer of ePlus inc. pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a).
|
|
|
31.2
|
Certification of the Chief Financial Officer of ePlus inc. pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a).
|
|
|
32
|
Certification of the Chief Executive Officer and Chief Financial Officer of ePlus inc. pursuant to 18 U.S.C. § 1350.
|
|
|
101.INS
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
|
|
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document
|
|
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
|
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).
|
|
ePlus inc.
|
|
|
|
|
Date: February 5, 2020
|
/s/ MARK P. MARRON
|
|
|
By: Mark P. Marron,
|
|
|
Chief Executive Officer and
President
|
|
|
(Principal Executive Officer)
|
|
|
|
|
Date: February 5, 2020
|
/s/ ELAINE D. MARION
|
|
|
By: Elaine D. Marion
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
/s/ Barbara Tiano
|
/s/ Elaine D. Marion
|
|||
Barbara Tiano
|
Elaine D. Marion
|
|||
VP Human Resources
|
Chief Financial Officer
|
|||
On behalf of John E. Callies
|
||||
Chairman, Compensation Committee
|
||||
Date:
|
November 18, 2019
|
Date:
|
November 15, 2019
|
/s/ Barbara Tiano
|
/s/ Mark P. Marron
|
|||
Barbara Tiano
|
Mark P. Marron
|
|||
VP Human Resources
|
President and Chief Executive Officer
|
|||
On behalf of John E. Callies
|
||||
Chairman, Compensation Committee
|
||||
Date:
|
November 18, 2019
|
Date:
|
November 18, 2019
|
|
(g) |
Provided that the Executive is covered under the Company's group health plan, the Executive shall be entitled to reimbursement by the Company for his participation in the Johns Hopkins Executive Physical
Program or an equivalent diagnostic program, one time per company fiscal year during the term of employment on a date(s) of the Executive’s choosing. To be entitled for reimbursement, the Executive must promptly submit a request for
reimbursement, with reasonable documentation. The Company will promptly provide reimbursement upon receipt of said promptly submitted documentation.
|
/s/ Barbara Tiano
|
/s/ Darren S. Raiguel
|
|||
Barbara Tiano
|
Darren S. Raiguel
|
|||
VP Human Resources
|
Chief Operating Officer
|
|||
On behalf of John E. Callies
|
|
|||
Chairman, Compensation Committee
|
||||
Date:
|
November 18, 2019
|
Date:
|
November 15, 2019
|
“DEALER”
|
||
ePLUS TECHNOLOGY, INC.
|
||
By:
|
/s/ Elaine D. Marion
|
|
Name:
|
Elaine D. Marion
|
|
Title:
|
CFO
|
ePLUS TECHNOLOGY SERVICES, INC.
|
||
By:
|
/s/ Elaine D. Marion
|
|
Name:
|
Elaine D. Marion
|
|
Title:
|
CFO
|
SLAIT CONSULTING, LLC
|
||
By:
|
/s/ Elaine D. Marion
|
|
Name:
|
Elaine D. Marion
|
|
Title:
|
CFO
|
“CDF”
|
||
WELLS FARGO COMMERCIAL DISTRIBUTION FINANCE, LLC
|
||
By:
|
/s/ Fahad Haroon
|
|
Name:
|
Fahad Haroon
|
|
Title:
|
Duly Authorized Signatory
|
|
1. |
I have reviewed this quarterly report on Form 10-Q of ePlus 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/ MARK P. MARRON
|
|
Mark P. Marron
|
|
Chief Executive Officer and President
|
|
(Principal Executive Officer)
|
|
1. |
I have reviewed this quarterly report on Form 10-Q of ePlus 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
|
|
Elaine D. Marion
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
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 ePlus inc.
|
/s/ MARK P. MARRON
|
|
Mark P. Marron, Chief Executive Officer
and President
|
|
(Principal Executive Officer)
|
|
/s/ ELAINE D. MARION
|
|
Elaine D. Marion, Chief Financial Officer
|
|
(Principal Financial Officer)
|