ePlus Reports Fourth Quarter and Fiscal 2018 Financial Results

ePlus Inc (NASDAQ:PLUS), a leading provider of technology solutions announced financial results for the three months and fiscal year ended March 31, 2018.

The company’s consolidated net sales for the fiscal year were $1,411 million while its net earnings increased nine percent to $55.1 million. Its adjusted EBITDA increased 3.5 percent to $102.8 million while its diluted earnings per share increased 9.7 percent to $3.95.

As quoted in the press release:

“Fourth quarter results demonstrate that our strategy of increasing the consultative and annuity services we provide to customers in our focused solution areas of Cloud, Security and Digital Infrastructure is working, driving a 6.9% increase in gross profit and a 170 basis point expansion in gross margin to 24.7%. This growth was achieved on stable revenue comparisons, which included the impact of a large customer project that benefited sales in last year’s fourth quarter,” said Mark Marron, Chief Executive Officer and President.  “For the year, revenues increased 6.1%, and gross margin was 22.9%, up 40 basis points from the prior year.”

Fourth Quarter Ended March 31, 2018

• Consolidated net sales were $330.4 million.
• Technology segment net sales decreased 0.8% to $320.0 million; financing segment net sales increased 0.8% to $10.4 million.
• Technology segment adjusted gross billings of product and services decreased 3.7% to $441.7 million.
• Consolidated gross profit increased 6.9% to $81.6 million; consolidated gross margin increased 170 basis points to 24.7%.
• Net earnings decreased 15.2% to $8.9 million, partially due to a 51% effective tax rate.
• Diluted earnings per share decreased 13.3% to $0.65; non-GAAP diluted earnings per share increased 5.5% to $0.96.
• Adjusted EBITDA increased 5.6% to $23.3 million.

“We are focusing on the solution areas in high demand by our customers, and expanding the business organically through digital demand generation activities, offering new products and services, and through acquisitions.  We continued to see strong demand for our security solutions, with sales of security products and services increasing 47.9% for the quarter.  For the fiscal year, security related sales increased 23.8%, and accounted for 18.9% of adjusted gross billings, an increase of 280 basis points from the prior year.  In fiscal 2018, we completed the acquisition of IDS and OneCloud, both of which have increased our cloud offerings and capabilities to help our customers move to and from the cloud, more securely, particularly around backup-as-a-service, storage, DevOps, and OpenStack,” Maroon said.

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