Delaware | 54-1817218 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
13595 Dulles Technology Drive, Herndon, VA 20171-3413 |
(Address of principal executive offices) |
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 ☐ |
Page | ||
1 | ||
Part I | ||
Item 1. | 3 | |
Item 1A. | 13 | |
Item 1B. | ||
Item 2. | ||
Item 3. | 24 | |
Item 4. | 24 | |
Part II | ||
Item 5. | 25 | |
Item 6. | ||
Item 7. | ||
Item 7A. | ||
Item 8. | ||
Item 9. | ||
Item 9A. | ||
Item 9B. | ||
Item 9C. | 48 | |
Part III | ||
Item 10. | ||
Item 11. | ||
Item 12. | ||
Item 13. | ||
Item 14. | ||
Part IV | ||
Item 15. | ||
Item 16. | 52 | |
53 |
• | 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; |
• | domestic and international economic regulations uncertainty (e.g., tariffs, sanctions, and trade agreements); |
• | IT |
Managed Services: |
• | Managed services proactively |
• |
• |
• | Cloud Hosted Services provide cloud-hosted offerings including Cloud Managed Backup and Cloud Disaster Recovery. These data protection offerings, delivered under SOC 2 Type 2 and HIPAA frameworks, are focused on delivering confidence to our customers in their ability to rapidly recover when incidents such as ransomware occur. |
• | Cloud Managed Services are focused on helping our customers consume public cloud in a way that reduces time-to-market for new applications, lowers their ongoing cloud costs, and increases security. By taking day-to-day cloud management off their hands, our clients can focus on the applications that drive their business. |
• | Managed Security Services help customers strengthen their information security profile with industry-leading tools, technology, and expertise - often at a fraction of the cost of in-house security resources. Services include Security Operations Center (SOC), Vulnerability Management, Managed Detection and Response (MDR), and Incident Response (IR). |
• | Professional services focus on cloud infrastructure, unified communications, collaboration, networking, storage, hyper-converged infrastructure, and virtual desktop infrastructure, supported by security and managed services solutions. |
• | Staff augmentation servicesprovide customers with flexible headcount options, which may range from service desk to infrastructure to software developer skills. Staff augmentation allows customers to access talent, fill specific technology skill gaps, or provide short-term or long-term IT professional help, which also includes services, such as Virtual Chief Information Officer (vCIO) and Virtual Chief Information Security Officer (vCISO), used to complement existing personnel and build three-to-five-year IT roadmaps. |
• | Project management services enhance productivity and collaboration management and enable successful implementations and adoption of solutions for our customers. |
• | Cloud Consulting Servicesis a global team of architects and consultants focused on assessing customer workloads for cloud, assisting with the selection of the appropriate cloud solution, design and build of cloud platforms, application modernization and migration, automation, and ongoing management and optimization of cloud platforms. |
• | Security solutionshelp safeguard our customers’ business and information assets, including: |
o | Governance, Risk, and Compliance (GRC) services help ensure customers are meeting governance and compliance requirements by leveraging regulatory frameworks, industry best practices, and supporting controls - thereby allowing customers to effectively identify, assess, and mitigate risk. |
o | Technology Introduction and Deployment services help customers rapidly adopt and integrate key security controls and embrace efficiencies across technology types like network, endpoint, data, and cloud. |
As of March 31, | Change | |||||||||||
2022 | 2021 | |||||||||||
Sales and marketing | 588 | 589 | (1 | ) | ||||||||
Professional services | 666 | 662 | 4 | |||||||||
Administration | 229 | 217 | 12 | |||||||||
Internal IT | 88 | 85 | 3 | |||||||||
Management | 6 | 7 | (1 | ) | ||||||||
1,577 | 1,560 | 17 |
As of March 31, | ||||||||||||
2023 | 2022 | Change | ||||||||||
Sales and marketing | 644 | 588 | 56 | |||||||||
Professional services | 750 | 666 | 84 | |||||||||
Administration | 354 | 317 | 37 | |||||||||
Executive management | 6 | 6 | - | |||||||||
1,754 | 1,577 | 177 |
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
ITEM 2. | PROPERTIES |
ITEM 3. | LEGAL PROCEEDINGS |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
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, 2021 through April 30, 2021 | - | $ | - | - | 881,798 | (2 | ) | |||||||||||||
May 1, 2021 through May 27, 2021 | 1,998 | $ | 50.40 | - | 881,798 | (3 | ) | |||||||||||||
May 28, 2021 through May 31, 2021 | - | $ | - | - | 1,000,000 | (4 | ) | |||||||||||||
June 1, 2021 through June 30, 2021 | 88,690 | $ | 45.21 | 35,258 | 964,742 | (5 | ) | |||||||||||||
July 1, 2021 through July 31, 2021 | 62,798 | $ | 44.00 | 62,798 | 901,944 | (6 | ) | |||||||||||||
August 1, 2021 through August 31, 2021 | - | $ | - | - | 901,944 | (7 | ) | |||||||||||||
September 1, 2021 through September 30, 2021 | - | $ | - | - | 901,944 | (8 | ) | |||||||||||||
October 1, 2021 through October 31, 2021 | - | $ | - | - | 901,944 | (9 | ) | |||||||||||||
November 1, 2021 through November 30, 2021 | - | $ | - | - | 901,944 | (10 | ) | |||||||||||||
December 1, 2021 through December 31, 2021 | 49,943 | $ | 51.90 | 49,943 | 852,001 | (11 | ) | |||||||||||||
January 1, 2022 through January 31, 2022 | 79,991 | $ | 51.78 | 79,991 | 772,010 | (12 | ) | |||||||||||||
February 1, 2022 through February 28, 2022 | - | $ | - | - | 772,010 | (13 | ) | |||||||||||||
March 1, 2022 through March 31, 2022 | - | $ | - | - | 772,010 | (14 | ) |
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 of shares that may yet be purchased under the plans or programs (2) | ||||||||||||
January 1, 2023 through January 31, 2023 | 0 | $ | - | 0 | 1,000,000 | |||||||||||
February 1, 2023 through February 28, 2023 | 0 | $ | - | 0 | 1,000,000 | |||||||||||
March 1, 2023 through March 31, 2023 | 2,500 | $ | 48.65 | 2,500 | 997,500 | |||||||||||
Total | 2,500 | 2,500 |
(1) | All shares were acquired |
(2) | The |
month. On March |
ITEM 6. | [RESERVED] |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Year Ended March 31, | ||||||||||||
Consolidated | 2023 | 2022 | 2021 | |||||||||
Financial Metrics | ||||||||||||
Net sales | $ | 2,067,718 | $ | 1,821,019 | $ | 1,568,323 | ||||||
Gross profit | $ | 517,524 | $ | 460,982 | $ | 393,554 | ||||||
Gross margin | 25.0 | % | 25.3 | % | 25.1 | % | ||||||
Operating income margin | 8.0 | % | 8.1 | % | 6.8 | % | ||||||
Net earnings | $ | 119,356 | $ | 105,600 | $ | 74,397 | ||||||
Net earnings margin | 5.8 | % | 5.8 | % | 4.7 | % | ||||||
Net earnings per common share - diluted | $ | 4.48 | $ | 3.93 | $ | 2.77 | ||||||
Non-GAAP Financial Metrics | ||||||||||||
Non-GAAP: Net earnings (1) | $ | 133,931 | $ | 117,964 | $ | 85,567 | ||||||
Non-GAAP: Net earnings per common share - diluted (1) | $ | 5.02 | $ | 4.39 | $ | 3.19 | ||||||
Adjusted EBITDA (2) | $ | 190,592 | $ | 170,004 | $ | 128,245 | ||||||
Adjusted EBITDA margin | 9.2 | % | 9.3 | % | 8.2 | % | ||||||
Technology Segment | ||||||||||||
Financial Metrics | ||||||||||||
Net sales | $ | 2,015,245 | $ | 1,733,036 | $ | 1,507,954 | ||||||
Gross profit | $ | 474,490 | $ | 408,153 | $ | 346,235 | ||||||
Gross margin | 23.5 | % | 23.6 | % | 23.0 | % | ||||||
Operating income | $ | 140,110 | $ | 109,000 | $ | 75,665 | ||||||
Non-GAAP Financial Metric | ||||||||||||
Adjusted EBITDA (2) | $ | 164,184 | $ | 131,353 | $ | 97,219 | ||||||
Operational Metric | ||||||||||||
Gross billings (3) | ||||||||||||
Data Center / Cloud | $ | 892,308 | $ | 828,002 | $ | 723,971 | ||||||
Networking | 927,319 | 709,687 | 590,690 | |||||||||
Security | 639,416 | 476,339 | 418,499 | |||||||||
Collaboration | 127,027 | 131,941 | 91,833 | |||||||||
Other | 282,748 | 240,586 | 236,707 | |||||||||
Product gross billings | 2,868,818 | 2,386,555 | 2,061,700 | |||||||||
Service billings | 277,070 | 239,194 | 210,136 | |||||||||
Total gross billings | $ | 3,145,888 | $ | 2,625,749 | $ | 2,271,836 | ||||||
Financing Segment | ||||||||||||
Financial Metrics | ||||||||||||
Net sales | $ | 52,473 | $ | 87,983 | $ | 60,369 | ||||||
Gross profit | $ | 43,034 | $ | 52,829 | $ | 47,319 | ||||||
Operating income | $ | 26,052 | $ | 38,316 | $ | 30,670 | ||||||
Non-GAAP Financial Metric | ||||||||||||
Adjusted EBITDA (2) | $ | 26,408 | $ | 38,651 | $ | 31,026 |
Year Ended March 31, | ||||||||||||
Consolidated | 2022 | 2021 | 2020 | |||||||||
Net sales | $ | 1,821,019 | $ | 1,568,323 | $ | 1,588,404 | ||||||
Gross profit | $ | 460,982 | $ | 393,554 | $ | 391,191 | ||||||
Gross margin | 25.3 | % | 25.1 | % | 24.6 | % | ||||||
Operating income margin | 8.1 | % | 6.8 | % | 6.0 | % | ||||||
Net earnings | $ | 105,600 | $ | 74,397 | $ | 69,082 | ||||||
Net earnings margin | 5.8 | % | 4.7 | % | 4.3 | % | ||||||
Net earnings per common share - diluted | $ | 3.93 | $ | 2.77 | $ | 2.57 | ||||||
Non-GAAP: Net earnings (1) | $ | 117,964 | $ | 85,567 | $ | 82,167 | ||||||
Non-GAAP: Net earnings per common share - diluted (1) | $ | 4.39 | $ | 3.19 | $ | 3.06 | ||||||
Adjusted EBITDA (2) | $ | 170,004 | $ | 128,245 | $ | 119,359 | ||||||
Adjusted EBITDA margin | 9.3 | % | 8.2 | % | 7.5 | % | ||||||
Technology Segment | ||||||||||||
Net sales | $ | 1,733,036 | $ | 1,507,954 | $ | 1,530,138 | ||||||
Adjusted gross billings (3) | $ | 2,620,614 | $ | 2,263,865 | $ | 2,227,885 | ||||||
Gross profit | $ | 408,153 | $ | 346,235 | $ | 340,588 | ||||||
Gross margin | 23.6 | % | 23.0 | % | 22.3 | % | ||||||
Operating income | $ | 109,000 | $ | 75,665 | $ | 62,155 | ||||||
Adjusted EBITDA (2) | $ | 131,353 | $ | 97,219 | $ | 85,840 | ||||||
Financing Segment | ||||||||||||
Net sales | $ | 87,983 | $ | 60,369 | $ | 58,266 | ||||||
Gross profit | $ | 52,829 | $ | 47,319 | $ | 50,603 | ||||||
Operating income | $ | 38,316 | $ | 30,670 | $ | 33,124 | ||||||
Adjusted EBITDA (2) | $ | 38,651 | $ | 31,026 | $ | 33,519 |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | 2020 | 2023 | 2022 | 2021 | |||||||||||||||||||
GAAP: Earnings before tax | $ | 146,884 | $ | 106,906 | $ | 95,959 | $ | 162,974 | $ | 146,884 | $ | 106,906 | ||||||||||||
Share based compensation | 7,114 | 7,167 | 7,954 | 7,824 | 7,114 | 7,167 | ||||||||||||||||||
Acquisition and integration expense | - | 271 | 1,676 | - | - | 271 | ||||||||||||||||||
Acquisition related amortization expense | 10,072 | 9,116 | 9,217 | 9,411 | 10,072 | 9,116 | ||||||||||||||||||
Other (income) expense | 432 | (571 | ) | (680 | ) | 3,188 | 432 | (571 | ) | |||||||||||||||
Non-GAAP: Earnings before provision for income taxes | 164,502 | 122,889 | 114,126 | 183,397 | 164,502 | 122,889 | ||||||||||||||||||
GAAP: Provision for income taxes | 41,284 | 32,509 | 26,877 | 43,618 | 41,284 | 32,509 | ||||||||||||||||||
Share based compensation | 2,014 | 2,188 | 2,218 | 2,104 | 2,014 | 2,188 | ||||||||||||||||||
Acquisition and integration expense | - | 78 | 490 | - | - | 78 | ||||||||||||||||||
Acquisition related amortization expense | 2,803 | 2,730 | 2,487 | 2,527 | 2,803 | 2,730 | ||||||||||||||||||
Other (income) expense | 120 | (143 | ) | (200 | ) | 950 | 120 | (143 | ) | |||||||||||||||
Tax benefit (expense) on restricted stock | 317 | (40 | ) | 87 | 267 | 317 | (40 | ) | ||||||||||||||||
Non-GAAP: Provision for income taxes | 46,538 | 37,322 | 31,959 | 49,466 | 46,538 | 37,322 | ||||||||||||||||||
Non-GAAP: Net earnings | $ | 117,964 | $ | 85,567 | $ | 82,167 | $ | 133,931 | $ | 117,964 | $ | 85,567 |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | 2020 | 2023 | 2022 | 2021 | |||||||||||||||||||
GAAP: Net earnings per common share - diluted | $ | 3.93 | $ | 2.77 | $ | 2.57 | $ | 4.48 | $ | 3.93 | $ | 2.77 | ||||||||||||
Share based compensation | 0.20 | 0.19 | 0.22 | 0.21 | 0.20 | 0.19 | ||||||||||||||||||
Acquisition and integration expense | - | 0.01 | 0.04 | - | - | 0.01 | ||||||||||||||||||
Acquisition related amortization expense | 0.26 | 0.24 | 0.25 | 0.26 | 0.26 | 0.24 | ||||||||||||||||||
Other (income) expense | 0.01 | (0.02 | ) | (0.02 | ) | 0.08 | 0.01 | (0.02 | ) | |||||||||||||||
Tax benefit (expense) on restricted stock | (0.01 | ) | - | - | (0.01 | ) | (0.01 | ) | - | |||||||||||||||
Total non-GAAP adjustments - net of tax | 0.46 | 0.42 | 0.49 | 0.54 | 0.46 | 0.42 | ||||||||||||||||||
Non-GAAP: Net earnings per common share - diluted | $ | 4.39 | $ | 3.19 | $ | 3.06 | $ | 5.02 | $ | 4.39 | $ | 3.19 |
(2) We define Adjusted EBITDA as net earnings calculated in accordance with US GAAP, adjusted for the following: interest expense, depreciation and amortization, share-based compensation, acquisition and integration expenses, provision for income taxes, and other income. Segment Adjusted EBITDA is defined as operating income calculated in accordance with US 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. In the table below, we provide 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. |
Year Ended March 31, | ||||||||||||
Consolidated | 2022 | 2021 | 2020 | |||||||||
Net earnings | $ | 105,600 | $ | 74,397 | $ | 69,082 | ||||||
Provision for income taxes | 41,284 | 32,509 | 26,877 | |||||||||
Share based compensation | 7,114 | 7,167 | 7,954 | |||||||||
Interest and financing costs | 928 | 521 | 294 | |||||||||
Acquisition and integration expense | - | 271 | 1,676 | |||||||||
Depreciation and amortization | 14,646 | 13,951 | 14,156 | |||||||||
Other income (expense) | 432 | (571 | ) | (680 | ) | |||||||
Adjusted EBITDA | $ | 170,004 | $ | 128,245 | $ | 119,359 | ||||||
Technology Segment | ||||||||||||
Operating income | $ | 109,000 | $ | 75,665 | $ | 62,155 | ||||||
Depreciation and amortization | 14,535 | 13,839 | 14,016 | |||||||||
Share based compensation | 6,890 | 6,923 | 7,699 | |||||||||
Interest and financing costs | 928 | 521 | 294 | |||||||||
Acquisition and integration expense | - | 271 | 1,676 | |||||||||
Adjusted EBITDA | $ | 131,353 | $ | 97,219 | $ | 85,840 | ||||||
Financing Segment | ||||||||||||
Operating income | $ | 38,316 | $ | 30,670 | $ | 33,124 | ||||||
Depreciation and amortization | 111 | 112 | 140 | |||||||||
Share based compensation | 224 | 244 | 255 | |||||||||
Adjusted EBITDA | $ | 38,651 | $ | 31,026 | $ | 33,519 |
Year Ended March 31, | ||||||||||||
Consolidated | 2023 | 2022 | 2021 | |||||||||
Net earnings | $ | 119,356 | $ | 105,600 | $ | 74,397 | ||||||
Provision for income taxes | 43,618 | 41,284 | 32,509 | |||||||||
Share based compensation | 7,824 | 7,114 | 7,167 | |||||||||
Interest and financing costs | 2,897 | 928 | 521 | |||||||||
Acquisition and integration expense | - | - | 271 | |||||||||
Depreciation and amortization | 13,709 | 14,646 | 13,951 | |||||||||
Other (income) expense, net | 3,188 | 432 | (571 | ) | ||||||||
Adjusted EBITDA | $ | 190,592 | $ | 170,004 | $ | 128,245 | ||||||
Technology Segment | ||||||||||||
Operating income | $ | 140,110 | $ | 109,000 | $ | 75,665 | ||||||
Depreciation and amortization | 13,598 | 14,535 | 13,839 | |||||||||
Share based compensation | 7,579 | 6,890 | 6,923 | |||||||||
Interest and financing costs | 2,897 | 928 | 521 | |||||||||
Acquisition and integration expense | - | - | 271 | |||||||||
Adjusted EBITDA | $ | 164,184 | $ | 131,353 | $ | 97,219 | ||||||
Financing Segment | ||||||||||||
Operating income | $ | 26,052 | $ | 38,316 | $ | 30,670 | ||||||
Depreciation and amortization | 111 | 111 | 112 | |||||||||
Share based compensation | 245 | 224 | 244 | |||||||||
Adjusted EBITDA | $ | 26,408 | $ | 38,651 | $ | 31,026 |
Year Ended March 31, | ||||||||||||
2022 | 2021 | 2020 | ||||||||||
Technology segment net sales | $ | 1,733,036 | $ | 1,507,954 | $ | 1,530,138 | ||||||
Costs incurred related to sales of third party maintenance, software assurance and subscription/SaaS licenses, and services | 887,578 | 755,911 | 697,747 | |||||||||
Adjusted gross billings | $ | 2,620,614 | $ | 2,263,865 | $ | 2,227,885 |
Year Ended March 31, | Percent | |||||||||||||||
2023 | 2022 | Change | Change | |||||||||||||
Financial Metrics | ||||||||||||||||
Net sales | ||||||||||||||||
Product | $ | 1,750,802 | $ | 1,492,411 | $ | 258,391 | 17.3 | % | ||||||||
Services | 264,443 | 240,625 | 23,818 | 9.9 | % | |||||||||||
Total | 2,015,245 | 1,733,036 | 282,209 | 16.3 | % | |||||||||||
Cost of sales | ||||||||||||||||
Product | 1,370,061 | 1,175,789 | 194,272 | 16.5 | % | |||||||||||
Services | 170,694 | 149,094 | 21,600 | 14.5 | % | |||||||||||
Total | 1,540,755 | 1,324,883 | 215,872 | 16.3 | % | |||||||||||
Gross profit | 474,490 | 408,153 | 66,337 | 16.3 | % | |||||||||||
Selling, general, and administrative | 317,885 | 283,690 | 34,195 | 12.1 | % | |||||||||||
Depreciation and amortization | 13,598 | 14,535 | (937 | ) | (6.4 | %) | ||||||||||
Interest and financing costs | 2,897 | 928 | 1,969 | 212.2 | % | |||||||||||
Operating expenses | 334,380 | 299,153 | 35,227 | 11.8 | % | |||||||||||
Operating income | $ | 140,110 | $ | 109,000 | $ | 31,110 | 28.5 | % | ||||||||
Key Metrics & Other Information | ||||||||||||||||
Gross billings | $ | 3,145,888 | $ | 2,625,749 | $ | 520,139 | 19.8 | % | ||||||||
Adjusted EBITDA | $ | 164,184 | $ | 131,353 | $ | 32,831 | 25.0 | % | ||||||||
Net sales by customer end market: | ||||||||||||||||
Telecom, Media & Entertainment | $ | 532,921 | $ | 502,408 | $ | 30,513 | 6.1 | % | ||||||||
Technology | 393,594 | 250,485 | 143,109 | 57.1 | % | |||||||||||
SLED | 290,624 | 241,769 | 48,855 | 20.2 | % | |||||||||||
Healthcare | 274,936 | 270,481 | 4,455 | 1.6 | % | |||||||||||
Financial Services | 156,257 | 155,160 | 1,097 | 0.7 | % | |||||||||||
All others | 366,913 | 312,733 | 54,180 | 17.3 | % | |||||||||||
Total | $ | 2,015,245 | $ | 1,733,036 | $ | 282,209 | 16.3 | % | ||||||||
Net sales by type: | ||||||||||||||||
Data Center / Cloud | $ | 587,097 | $ | 581,113 | $ | 5,984 | 1.0 | % | ||||||||
Networking | 803,678 | 611,488 | 192,190 | 31.4 | % | |||||||||||
Security | 214,459 | 158,927 | 55,532 | 34.9 | % | |||||||||||
Collaboration | 57,472 | 57,244 | 228 | 0.4 | % | |||||||||||
Other | 88,096 | 83,639 | 4,457 | 5.3 | % | |||||||||||
ePlus services | 264,443 | 240,625 | 23,818 | 9.9 | % | |||||||||||
Total | $ | 2,015,245 | $ | 1,733,036 | $ | 282,209 | 16.3 | % |
Year Ended March 31, | Percent | |||||||||||||||
2023 | 2022 | Change | Change | |||||||||||||
Financial Metrics | ||||||||||||||||
Portfolio earnings | $ | 11,356 | $ | 17,764 | $ | (6,408 | ) | (36.1 | %) | |||||||
Transactional gains | 16,125 | 18,181 | (2,056 | ) | (11.3 | %) | ||||||||||
Post-contract earnings | 23,581 | 50,495 | (26,914 | ) | (53.3 | %) | ||||||||||
Other | 1,411 | 1,543 | (132 | ) | (8.6 | %) | ||||||||||
Net sales | $ | 52,473 | $ | 87,983 | $ | (35,510 | ) | (40.4 | %) | |||||||
Cost of sales | 9,439 | 35,154 | (25,715 | ) | (73.1 | %) | ||||||||||
Gross profit | 43,034 | 52,829 | (9,795 | ) | (18.5 | %) | ||||||||||
Selling, general, and administrative | 15,635 | 13,427 | 2,208 | 16.4 | % | |||||||||||
Depreciation and amortization | 111 | 111 | - | 0.0 | % | |||||||||||
Interest and financing costs | 1,236 | 975 | 261 | 26.8 | % | |||||||||||
Operating expenses | 16,982 | 14,513 | 2,469 | 17.0 | % | |||||||||||
Operating income | $ | 26,052 | $ | 38,316 | $ | (12,264 | ) | (32.0 | %) | |||||||
Key Metrics & Other Information | ||||||||||||||||
Adjusted EBITDA | $ | 26,408 | $ | 38,651 | $ | (12,243 | ) | (31.7 | %) |
Year Ended March 31, | Percent | |||||||||||||||
2022 | 2021 | Change | Change | |||||||||||||
Financial Metrics | ||||||||||||||||
Net sales | ||||||||||||||||
Product | $ | 1,492,411 | $ | 1,305,789 | $ | 186,622 | 14.3 | % | ||||||||
Services | 240,625 | 202,165 | 38,460 | 19.0 | % | |||||||||||
Total | 1,733,036 | 1,507,954 | 225,082 | 14.9 | % | |||||||||||
Cost of sales | ||||||||||||||||
Product | 1,175,789 | 1,036,627 | 139,162 | 13.4 | % | |||||||||||
Services | 149,094 | 125,092 | 24,002 | 19.2 | % | |||||||||||
Total | 1,324,883 | 1,161,719 | 163,164 | 14.0 | % | |||||||||||
Gross profit | 408,153 | 346,235 | 61,918 | 17.9 | % | |||||||||||
Selling, general, and administrative | 283,690 | 256,210 | 27,480 | 10.7 | % | |||||||||||
Depreciation and amortization | 14,535 | 13,839 | 696 | 5.0 | % | |||||||||||
Interest and financing costs | 928 | 521 | 407 | 78.1 | % | |||||||||||
Operating expenses | 299,153 | 270,570 | 28,583 | 10.6 | % | |||||||||||
Operating income | $ | 109,000 | $ | 75,665 | $ | 33,335 | 44.1 | % | ||||||||
Key Metrics & Other Information | ||||||||||||||||
Gross billings | $ | 2,625,749 | $ | 2,271,836 | $ | 353,913 | 15.6 | % | ||||||||
Adjusted EBITDA | $ | 131,353 | $ | 97,219 | $ | 34,134 | 35.1 | % | ||||||||
Net sales by customer end market: | ||||||||||||||||
Telecom, Media & Entertainment | $ | 502,408 | $ | 371,912 | $ | 130,496 | 35.1 | % | ||||||||
Healthcare | 270,481 | 200,067 | 70,414 | 35.2 | % | |||||||||||
Technology | 250,485 | 251,683 | (1,198 | ) | (0.5 | %) | ||||||||||
SLED | 241,769 | 245,919 | (4,150 | ) | (1.7 | %) | ||||||||||
Financial Services | 155,160 | 198,761 | (43,601 | ) | (21.9 | %) | ||||||||||
All others | 312,733 | 239,612 | 73,121 | 30.5 | % | |||||||||||
Total | $ | 1,733,036 | $ | 1,507,954 | $ | 225,082 | 14.9 | % | ||||||||
Net sales by type: | ||||||||||||||||
Data Center / Cloud | $ | 581,113 | $ | 516,930 | $ | 64,183 | 12.4 | % | ||||||||
Networking | 611,488 | 510,205 | 101,283 | 19.9 | % | |||||||||||
Security | 158,927 | 155,186 | 3,741 | 2.4 | % | |||||||||||
Collaboration | 57,244 | 47,504 | 9,740 | 20.5 | % | |||||||||||
Other | 83,639 | 75,964 | 7,675 | 10.1 | % | |||||||||||
ePlus services | 240,625 | 202,165 | 38,460 | 19.0 | % | |||||||||||
Total | $ | 1,733,036 | $ | 1,507,954 | $ | 225,082 | 14.9 | % |
Year Ended March 31, | Percent | |||||||||||||||
2022 | 2021 | Change | Change | |||||||||||||
Financial Metrics | ||||||||||||||||
Portfolio earnings | $ | 17,764 | $ | 16,486 | $ | 1,278 | 7.8 | % | ||||||||
Transactional gains | 18,181 | 14,506 | 3,675 | 25.3 | % | |||||||||||
Post-contract earnings | 50,495 | 23,771 | 26,724 | 112.4 | % | |||||||||||
Other | 1,543 | 5,606 | (4,063 | ) | (72.5 | %) | ||||||||||
Net sales | $ | 87,983 | $ | 60,369 | $ | 27,614 | 45.7 | % | ||||||||
Cost of sales | 35,154 | 13,050 | 22,104 | 169.4 | % | |||||||||||
Gross profit | 52,829 | 47,319 | 5,510 | 11.6 | % | |||||||||||
Selling, general, and administrative | 13,427 | 15,053 | (1,626 | ) | (10.8 | %) | ||||||||||
Depreciation and amortization | 111 | 112 | (1 | ) | (0.9 | %) | ||||||||||
Interest and financing costs | 975 | 1,484 | (509 | ) | (34.3 | %) | ||||||||||
Operating expenses | 14,513 | 16,649 | (2,136 | ) | (12.8 | %) | ||||||||||
Operating income | $ | 38,316 | $ | 30,670 | $ | 7,646 | 24.9 | % | ||||||||
Key Metrics & Other Information | ||||||||||||||||
Adjusted EBITDA | $ | 38,651 | $ | 31,026 | $ | 7,625 | 24.6 | % |
Year Ended March 31, | ||||||||
2023 | 2022 | |||||||
Net cash used in operating activities | $ | (15,425 | ) | $ | (20,571 | ) | ||
Net cash used in investing activities | (18,926 | ) | (1,259 | ) | ||||
Net cash provided by (used in) financing activities | (20,950 | ) | 47,176 | |||||
Effect of exchange rate changes on cash | 3,016 | 470 | ||||||
Net increase in cash and cash equivalents | $ | (52,285 | ) | $ | 25,816 |
Year Ended March 31, | ||||||||
2023 | 2022 | |||||||
Technology segment | $ | 17,157 | $ | (20,243 | ) | |||
Financing segment | (32,582 | ) | (328 | ) | ||||
Net cash used in operating activities | $ | (15,425 | ) | $ | (20,571 | ) |
As of March 31, | ||||||||
2023 | 2022 | |||||||
(DSO) Days sales outstanding (1) | 74 | 71 | ||||||
(DIO) Days inventory outstanding (2) | 38 | 25 | ||||||
(DPO) Days payable outstanding (3) | (53 | ) | (46 | ) | ||||
Cash conversion cycle | 59 | 50 |
(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 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 the direct cost of products and services billed to our customers 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 the direct cost of products and services billed to our customers for the same three-month period. |
Year Ended March 31, | ||||||||||||||||
2022 | 2021 | |||||||||||||||
Net sales | ||||||||||||||||
Product | $ | 1,492,411 | $ | 1,305,789 | $ | 186,622 | 14.3 | % | ||||||||
Services | 240,625 | 202,165 | 38,460 | 19.0 | % | |||||||||||
Total | 1,733,036 | 1,507,954 | 225,082 | 14.9 | % | |||||||||||
Cost of sales | ||||||||||||||||
Product | 1,175,789 | 1,036,627 | 139,162 | 13.4 | % | |||||||||||
Services | 149,094 | 125,092 | 24,002 | 19.2 | % | |||||||||||
Total | 1,324,883 | 1,161,719 | 163,164 | 14.0 | % | |||||||||||
Gross profit | 408,153 | 346,235 | 61,918 | 17.9 | % | |||||||||||
Selling, general, and administrative | 283,690 | 256,210 | 27,480 | 10.7 | % | |||||||||||
Depreciation and amortization | 14,535 | 13,839 | 696 | 5.0 | % | |||||||||||
Interest and financing costs | 928 | 521 | 407 | 78.1 | % | |||||||||||
Operating expenses | 299,153 | 270,570 | 28,583 | 10.6 | % | |||||||||||
Operating income | $ | 109,000 | $ | 75,665 | $ | 33,335 | 44.1 | % | ||||||||
Adjusted gross billings | $ | 2,620,614 | $ | 2,263,865 | $ | 356,749 | 15.8 | % | ||||||||
Adjusted EBITDA | $ | 131,353 | $ | 97,219 | $ | 34,134 | 35.1 | % |
Year Ended March 31, | Change | |||||||||||
Net sales by customer end market: | 2022 | 2021 | ||||||||||
Telecom, Media & Entertainment | 29 | % | 25 | % | 4 | % | ||||||
Healthcare | 16 | % | 13 | % | 3 | % | ||||||
Technology | 14 | % | 17 | % | (3 | %) | ||||||
SLED | 14 | % | 16 | % | (2 | %) | ||||||
Financial Services | 9 | % | 13 | % | (4 | %) | ||||||
All others | 18 | % | 16 | % | 2 | % | ||||||
Total | 100 | % | 100 | % | ||||||||
Year Ended March 31, | Change | |||||||||||
Net sales by vendor: | 2022 | 2021 | ||||||||||
Cisco Systems | 39 | % | 36 | % | 3 | % | ||||||
Dell EMC | 9 | % | 7 | % | 2 | % | ||||||
Juniper Networks | 5 | % | 6 | % | (1 | %) | ||||||
NetApp | 5 | % | 4 | % | 1 | % | ||||||
HP Inc. & HPE | 3 | % | 4 | % | (1 | %) | ||||||
Arista Networks | 3 | % | 3 | % | 0 | % | ||||||
All others | 36 | % | 40 | % | (4 | %) | ||||||
Total | 100 | % | 100 | % |
Year Ended March 31, | Change | |||||||||||||||
2022 | 2021 | |||||||||||||||
Net sales | $ | 87,983 | $ | 60,369 | $ | 27,614 | 45.7 | % | ||||||||
Cost of sales | 35,154 | 13,050 | 22,104 | 169.4 | % | |||||||||||
Gross profit | 52,829 | 47,319 | 5,510 | 11.6 | % | |||||||||||
Selling, general, and administrative | 13,427 | 15,053 | (1,626 | ) | (10.8 | %) | ||||||||||
Depreciation and amortization | 111 | 112 | (1 | ) | (0.9 | %) | ||||||||||
Interest and financing costs | 975 | 1,484 | (509 | ) | (34.3 | %) | ||||||||||
Operating expenses | 14,513 | 16,649 | (2,136 | ) | (12.8 | %) | ||||||||||
Operating income | $ | 38,316 | $ | 30,670 | $ | 7,646 | 24.9 | % | ||||||||
Adjusted EBITDA | $ | 38,651 | $ | 31,026 | $ | 7,625 | 24.6 | % |
Year Ended March 31, | ||||||||
2022 | 2021 | |||||||
Net cash provided by (used in) operating activities | $ | (20,571 | ) | $ | 129,507 | |||
Net cash used in investing activities | (1,259 | ) | (35,756 | ) | ||||
Net cash provided by (used in) financing activities | 47,176 | (49,802 | ) | |||||
Effect of exchange rate changes on cash | 470 | (618 | ) | |||||
Net increase in cash and cash equivalents | $ | 25,816 | $ | 43,331 |
Year Ended March 31, | ||||||||
2022 | 2021 | |||||||
Technology segment | $ | (20,243 | ) | $ | 153,332 | |||
Financing segment | (328 | ) | (23,825 | ) | ||||
Net cash provided by (used in) operating activities | $ | (20,571 | ) | $ | 129,507 |
As of March 31, | ||||||||
2022 | 2021 | |||||||
(DSO) Days sales outstanding (1) | 69 | 69 | ||||||
(DIO) Days inventory outstanding (2) | 25 | 15 | ||||||
(DPO) Days payable outstanding (3) | (46 | ) | (47 | ) | ||||
Cash conversion cycle | 48 | 37 |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. | CONTROLS AND PROCEDURES |
ITEM 9B. | OTHER INFORMATION |
ITEM 9C. | DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES |
ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
Exhibit No. | Exhibit Description |
ePlus inc. Amended and Restated Certificate of Incorporation, as last amended November 9, 2021 | |
Amended and Restated Bylaws of ePlus inc., as of March 2, 2022.(Incorporated herein by reference to Exhibit 3.2 to our Annual Report on Form 10-K for the fiscal year ended March 31, 2022). | |
Specimen Certificate of Common Stock (Incorporated herein by reference to Exhibit 4.1 to our Registration Statement on Form S-1 (File No. 333-11737) originally filed on September 11, 1996). | |
Description of ePlus inc.’s securities registered under Section 12 of the Securities Exchange Act of 1934. (Incorporated herein by reference to Exhibit 4.2 to our Annual Report on Form 10-K for the fiscal year ended March 31, 2022). | |
Form of Indemnification Agreement entered into by and between ePlus and its directors and officers (Incorporated herein by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on August 23, 2016). | |
Amended and Restated Employment Agreement effective September 6, 2017, by and between ePlus inc. and Mark P. Marron (Incorporated herein by reference to Exhibit 10.1 to our Quarterly Report on Form 10-Q for the period ended December 31, 2017). | |
Amendment #1, effective July 16, 2018, to Amended and Restated Employment Agreement effective September 6, 2017, by and between ePlus inc. and Mark P. Marron (Incorporated herein by reference to Exhibit 10.2 to our Current Report on Form 8-K filed on July 18, 2018). | |
Amendment #2, effective November 14, 2019, to Amended and Restated Employment Agreement effective September 6, 2017, by and between ePlus inc. and Mark P. Marron (Incorporated herein by reference to Exhibit 10.2 to our Quarterly Report on Form 10-Q for the period ended December 31, 2019). |
Amended and Restated Employment Agreement effective September 6, 2017, by and between ePlus inc. and Elaine D. Marion (Incorporated herein by reference to Exhibit 10.3 to our Quarterly Report on Form 10-Q for the period ended December 31, 2017). | |
Amendment #1, effective November 14, 2019, to Amended and Restated Employment Agreement, effective September 6, 2017, by and between ePlus inc. and Elaine D. Marion (Incorporated herein by reference to Exhibit 10.1 to our Quarterly Report on Form 10-Q for the period ended December 31, 2019). | |
Employment Agreement, effective May 7, 2018, by and between ePlus inc. and Darren S. Raiguel. (Incorporated herein by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on May 9, 2018). | |
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. (Incorporated herein by reference to Exhibit 10.3 to our Current Report on Form 10-Q filed on February 6, 2020). | |
ePlus inc. 2017 Non-Employee Director Long-Term Incentive Plan (updated to reflect the stock split effected December 13, 2021) as amended (Incorporated herein by reference to Exhibit 10.6 to our Current Report on Form 10-Q for the period ended December 31, 2021). | |
ePlus inc. 2012 Employee Long-term Incentive Plan (updated to reflect stock split effected March 31, 2017) (Incorporated herein by reference to Exhibit 10.8 to our Annual Report on Form 10-K for the fiscal year ended March 31, 2017). | |
ePlus inc. Cash Incentive Plan, effective April 1, 2018, (Incorporated herein by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on July 18, 2018). | |
ePlus 2021 Employee Long-Term Incentive Plan (updated to reflect the stock split effected December 13, 2021) as amended (Incorporated herein by reference to Exhibit 10.1 to our Current Report on Form 10-Q for the period ended December 31, 2021). | |
ePlus inc. 2022 Employee Stock Purchase Plan (Incorporated herein by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on September 20, 2022). | |
First Amended and Restated Credit Agreement, dated as of October 13, 2021, by and among ePlus Technology, inc., ePlus Technology Services, inc., SLAIT Consulting, LLC, certain of ePlus inc. subsidiaries as guarantors, Wells Fargo Commercial Distribution Finance, LLC as administrative agent and the Lenders party thereto (Incorporated herein by reference to Exhibit 10.1 to our Current Report in Form 8-K filed on October 19, 2021). * | |
Guaranty and Security Agreement, dated as of October 13, 2021, by and among ePlus Technology, inc., ePlus Technology Services, inc., SLAIT Consulting, LLC, certain future subsidiaries of ePlus inc., as guarantors, Wells Fargo Commercial Distribution Finance, LLC as administrative agent for the benefit of Secured Parties (Incorporated herein by reference to Exhibit 10.2 to our Current Report on Form 8-K filed on October 19, 2021). * | |
First Amended and Restated Collateralized Guaranty, dated as of October 13, 2021, by and among ePlus Group, inc. and Wells Fargo Commercial Distribution Finance, LLC as agent for the benefit of Secured Parties (Incorporated herein by reference to Exhibit 10.3 to our Current Report on Form 8-K filed on October 19, 2021). * | |
First Amended and Restated Limited Guaranty, dated as of October 13, 2021, by and between ePlus inc. and Wells Fargo Commercial Distribution Finance, LLC as agent for the benefit of Secured Parties (Incorporated herein by reference to Exhibit 10.4 to our Current Report on Form 8-K filed on October 19, 2021). * | |
First Amendment to First Amended and Restated Credit Agreement, dated as of October 31, 2022, by and among ePlus Technology, inc., ePlus Technology Services inc., SLAIT Consulting, LLC, certain of ePlus inc. subsidiaries as guarantors, Wells Fargo Commercial Distribution Finance, LLC as administrative agent and the Lenders party thereto. (Incorporated herein by reference to Exhibit 10.2 to our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, filed on November 3, 2022).* | |
Second Amendment to First Amended and Restated Credit Agreement, dated as of March 10, 2023, by and among ePlus Technology, inc., ePlus Technology Services inc., SLAIT Consulting, LLC, certain of ePlus inc. subsidiaries as guarantors, Wells Fargo Commercial Distribution Finance, LLC as administrative agent and the Lenders party thereto. (Incorporated herein by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on March 14, 2023). * | |
Subsidiaries of ePlus inc. (filed herewith). | |
Consent of Independent Registered Public Accounting Firm. (filed herewith). | |
Certification of the Chief Executive Officer of ePlus inc. pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a). (filed herewith). |
Certification of the Chief Financial Officer of ePlus inc. pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a). (filed herewith). | |
Certification of the Chief Executive Officer and Chief Financial Officer of ePlus inc. pursuant to 18 U.S.C. § | |
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 (embedded within the Exhibit 101 Inline XBRL document) |
ePlus inc. | |
/s/ MARK P. MARRON | |
By: Mark P. Marron | |
Chief Executive Officer and President | |
Date: May |
/s/ MARK P. MARRON | |
By: Mark P. Marron | |
Chief Executive Officer, President, and Director (Principal Executive Officer) | |
Date: May | |
/s/ ELAINE D. MARION | |
By: Elaine D. Marion, Chief Financial Officer | |
(Principal Financial and Accounting Officer) | |
Date: May | |
/s/ RENEE BERGERON | |
By: Renée Bergeron, Director | |
Date: May 24, 2023 | |
/s/ BRUCE M. BOWEN | |
By: Bruce M. Bowen, Director | |
Date: May | |
/s/ JOHN E. CALLIES | |
By: John E. Callies, Director | |
Date: May | |
/s/ C. THOMAS FAULDERS, III | |
By: C. Thomas Faulders, III, Chairman | |
Date: May | |
/s/ ERIC D. HOVDE | |
By: Eric D. Hovde, Director | |
Date: May | |
/s/ IRA A. HUNT | |
By: Ira A. Hunt, Director | |
Date: May | |
/s/ MAUREEN F. MORRISON | |
By: Maureen F. Morrison | |
Date: May | |
/s/ BEN XIANG | |
By: Ben Xiang, Director | |
Date: May |
PAGE | |
F-2 | |
F-6 | |
F-7 | |
F-8 | |
F-9 | |
F-11 | |
F-12 |
– | Inspected the customer invoice and purchase order to determine whether the sale represented a valid transaction with a customer. |
– | Compared the cost per the Company’s records to the cost per the vendor invoice. |
– | Evaluated the sale to determine whether it constituted a single or multiple performance obligation(s) through inspection of the customer invoice, purchase order, and information on vendor websites accessed through third-party search engines. |
– | Evaluated the sale to determine whether there was accompanying third-party support related to the software, and whether the support was separately identifiable or essential to the functionality of the software through inspection of customer invoices, purchase orders, information on vendor websites accessed through third-party search engines and inquiries with management, as necessary. |
– | Obtained the executed transfer agreement and evaluated whether the Company: |
■ | Assigned its rights, titles, interests, estates, claims, and demands to the third-party |
■ | Retained any rights with respect to the payments assigned to the third-party assignee or had been appropriately isolated from the assets. We evaluated opinions from outside legal counsel, when applicable. |
– | Obtained and inspected the cash proceeds support from the transfer and compared the cash received to the selling price. |
– | Tested the mathematical accuracy of management’s calculation of the gain or loss based on the cash proceeds and the receivable balance as of date of sale. |
March 31, 2022 | March 31, 2021 | March 31, 2023 | March 31, 2022 | |||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 155,378 | $ | 129,562 | $ | 103,093 | $ | 155,378 | ||||||||
Accounts receivable—trade, net | 430,380 | 391,567 | 504,122 | 430,380 | ||||||||||||
Accounts receivable—other, net | 48,673 | 41,053 | 55,508 | 48,673 | ||||||||||||
Inventories | 155,060 | 69,963 | 243,286 | 155,060 | ||||||||||||
Financing receivables—net, current | 61,492 | 106,272 | 89,829 | 61,492 | ||||||||||||
Deferred costs | 32,555 | 28,201 | 44,191 | 32,555 | ||||||||||||
Other current assets | 13,944 | 10,976 | 55,101 | 13,944 | ||||||||||||
Total current assets | 897,482 | 777,594 | 1,095,130 | 897,482 | ||||||||||||
Financing receivables and operating leases—net | 64,292 | 90,165 | 84,417 | 64,292 | ||||||||||||
Deferred tax asset—net | 5,050 | 1,468 | ||||||||||||||
Property, equipment and other assets | 45,586 | 42,289 | ||||||||||||||
Deferred tax asset | 3,682 | 5,050 | ||||||||||||||
Property, equipment, and other assets | 70,447 | 45,586 | ||||||||||||||
Goodwill | 126,543 | 126,645 | 136,105 | 126,543 | ||||||||||||
Other intangible assets—net | 27,250 | 38,614 | 25,045 | 27,250 | ||||||||||||
TOTAL ASSETS | $ | 1,166,203 | $ | 1,076,775 | $ | 1,414,826 | $ | 1,166,203 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
LIABILITIES | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 136,161 | $ | 165,162 | $ | 220,159 | $ | 136,161 | ||||||||
Accounts payable—floor plan | 145,323 | 98,653 | 134,615 | 145,323 | ||||||||||||
Salaries and commissions payable | 39,602 | 36,839 | 37,336 | 39,602 | ||||||||||||
Deferred revenue | 86,469 | 72,802 | 114,028 | 86,469 | ||||||||||||
Recourse notes payable—current | 7,316 | 5,450 | 5,997 | 7,316 | ||||||||||||
Non-recourse notes payable—current | 17,070 | 50,397 | 24,819 | 17,070 | ||||||||||||
Other current liabilities | 28,095 | 30,061 | 24,372 | 28,095 | ||||||||||||
Total current liabilities | 460,036 | 459,364 | 561,326 | 460,036 | ||||||||||||
Recourse notes payable - long-term | 5,792 | 12,658 | - | 5,792 | ||||||||||||
Non-recourse notes payable - long-term | 4,108 | 5,664 | 9,522 | 4,108 | ||||||||||||
Deferred tax liability | 715 | - | ||||||||||||||
Other liabilities | 35,529 | 36,679 | 60,998 | 35,529 | ||||||||||||
TOTAL LIABILITIES | 505,465 | 514,365 | 632,561 | 505,465 | ||||||||||||
0 | 0 | |||||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||||
Preferred stock, $0.01 per share par value; 2,000 shares authorized; NaN outstanding | 0 | 0 | ||||||||||||||
Common stock, $0.01 per share par value; 50,000 shares authorized; 26,886 outstanding at March 31, 2022 and 27,006 outstanding at March 31, 2021 | 270 | 145 | ||||||||||||||
Preferred stock, $0.01 per share par value; 2,000 shares authorized; none outstanding | - | - | ||||||||||||||
Common stock, $0.01 per share par value; 50,000 shares authorized; 26,905 outstanding at March 31, 2023 and 26,886 outstanding at March 31, 2022 | 272 | 270 | ||||||||||||||
Additional paid-in capital | 159,480 | 152,366 | 167,303 | 159,480 | ||||||||||||
Treasury stock, at cost, 130 shares at March 31, 2022 and 1,987 shares at March 31, 2021 | (6,734 | ) | (75,372 | ) | ||||||||||||
Treasury stock, at cost, 261 shares at March 31, 2023 and 130 shares at March 31, 2022 | (14,080 | ) | (6,734 | ) | ||||||||||||
Retained earnings | 507,846 | 484,616 | 627,202 | 507,846 | ||||||||||||
Accumulated other comprehensive income—foreign currency translation adjustment | (124 | ) | 655 | 1,568 | (124 | ) | ||||||||||
Total Stockholders’ Equity | 660,738 | 562,410 | 782,265 | 660,738 | ||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,166,203 | $ | 1,076,775 | $ | 1,414,826 | $ | 1,166,203 |
Year Ended March 31, | ||||||||||||||||||||||||
Year Ended March 31, | 2023 | 2022 | 2021 | |||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||
Product | $ | 1,580,394 | $ | 1,366,158 | $ | 1,395,288 | $ | 1,803,275 | $ | 1,580,394 | $ | 1,366,158 | ||||||||||||
Services | 240,625 | 202,165 | 193,116 | 264,443 | 240,625 | 202,165 | ||||||||||||||||||
Total | 1,821,019 | 1,568,323 | 1,588,404 | 2,067,718 | 1,821,019 | 1,568,323 | ||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||
Product | 1,210,943 | 1,049,677 | 1,076,773 | 1,379,500 | 1,210,943 | 1,049,677 | ||||||||||||||||||
Services | 149,094 | 125,092 | 120,440 | 170,694 | 149,094 | 125,092 | ||||||||||||||||||
Total | 1,360,037 | 1,174,769 | 1,197,213 | 1,550,194 | 1,360,037 | 1,174,769 | ||||||||||||||||||
Gross profit | 460,982 | 393,554 | 391,191 | 517,524 | 460,982 | 393,554 | ||||||||||||||||||
Selling, general, and administrative | 297,117 | 271,263 | 279,182 | 333,520 | 297,117 | 271,263 | ||||||||||||||||||
Depreciation and amortization | 14,646 | 13,951 | 14,156 | 13,709 | 14,646 | 13,951 | ||||||||||||||||||
Interest and financing costs | 1,903 | 2,005 | 2,574 | 4,133 | 1,903 | 2,005 | ||||||||||||||||||
Operating expenses | 313,666 | 287,219 | 295,912 | 351,362 | 313,666 | 287,219 | ||||||||||||||||||
Operating income | 147,316 | 106,335 | 95,279 | 166,162 | 147,316 | 106,335 | ||||||||||||||||||
Other income (expense) | (432 | ) | 571 | 680 | ||||||||||||||||||||
Other income (expense), net | (3,188 | ) | (432 | ) | 571 | |||||||||||||||||||
Earnings before tax | 146,884 | 106,906 | 95,959 | 162,974 | 146,884 | 106,906 | ||||||||||||||||||
Provision for income taxes | 41,284 | 32,509 | 26,877 | 43,618 | 41,284 | 32,509 | ||||||||||||||||||
Net earnings | $ | 105,600 | $ | 74,397 | $ | 69,082 | $ | 119,356 | $ | 105,600 | $ | 74,397 | ||||||||||||
Net earnings per common share—basic | $ | 3.96 | $ | 2.79 | $ | 2.59 | $ | 4.49 | $ | 3.96 | $ | 2.79 | ||||||||||||
Net earnings per common share—diluted | $ | 3.93 | $ | 2.77 | $ | 2.57 | $ | 4.48 | $ | 3.93 | $ | 2.77 | ||||||||||||
Weighted average common shares outstanding—basic | 26,638 | 26,674 | 26,654 | 26,569 | 26,638 | 26,674 | ||||||||||||||||||
Weighted average common shares outstanding—diluted | 26,866 | 26,834 | 26,830 | 26,654 | 26,866 | 26,834 |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | 2020 | 2023 | 2022 | 2021 | |||||||||||||||||||
NET EARNINGS | $ | 105,600 | $ | 74,397 | $ | 69,082 | $ | 119,356 | $ | 105,600 | $ | 74,397 | ||||||||||||
OTHER COMPREHENSIVE INCOME, NET OF TAX: | ||||||||||||||||||||||||
Foreign currency translation adjustments | (779 | ) | 1,646 | (720 | ) | 1,692 | (779 | ) | 1,646 | |||||||||||||||
Other comprehensive income (loss) | (779 | ) | 1,646 | (720 | ) | 1,692 | (779 | ) | 1,646 | |||||||||||||||
TOTAL COMPREHENSIVE INCOME | $ | 104,821 | $ | 76,043 | $ | 68,362 | $ | 121,048 | $ | 104,821 | $ | 76,043 |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | 2020 | 2023 | 2022 | 2021 | |||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net earnings | $ | 105,600 | $ | 74,397 | $ | 69,082 | $ | 119,356 | $ | 105,600 | $ | 74,397 | ||||||||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||||||||||||||||||||
Depreciation and amortization | 24,305 | 19,991 | 19,156 | 18,589 | 24,305 | 19,991 | ||||||||||||||||||
Provision for credit losses | (102 | ) | 1,436 | 1,004 | 666 | (102 | ) | 1,436 | ||||||||||||||||
Share-based compensation expense | 7,114 | 7,169 | 7,954 | 7,825 | 7,114 | 7,169 | ||||||||||||||||||
Deferred taxes | (3,581 | ) | (4,198 | ) | (2,185 | ) | 2,083 | (3,581 | ) | (4,198 | ) | |||||||||||||
Payments from lessees directly to lenders—operating leases | (32 | ) | (34 | ) | (70 | ) | - | (32 | ) | (34 | ) | |||||||||||||
Gain on disposal of property, equipment, and operaing lease equipment | (4,136 | ) | (2,742 | ) | (814 | ) | ||||||||||||||||||
Gain on disposal of property, equipment, and operating lease equipment | (3,479 | ) | (4,136 | ) | (2,742 | ) | ||||||||||||||||||
Changes in: | ||||||||||||||||||||||||
Accounts receivable | (50,803 | ) | (5,056 | ) | (64,388 | ) | (78,679 | ) | (50,803 | ) | (5,056 | ) | ||||||||||||
Inventories-net | (85,453 | ) | (16,798 | ) | 115 | (88,097 | ) | (85,453 | ) | (16,798 | ) | |||||||||||||
Financing receivables—net | 8,832 | (42,104 | ) | (109,355 | ) | (41,015 | ) | 8,832 | (42,104 | ) | ||||||||||||||
Deferred costs and other assets | (10,560 | ) | (16,503 | ) | (20,982 | ) | (73,980 | ) | (10,560 | ) | (16,503 | ) | ||||||||||||
Accounts payable-trade | (25,187 | ) | 76,772 | (8,884 | ) | 75,270 | (25,187 | ) | 76,772 | |||||||||||||||
Salaries and commissions payable, deferred revenue, and other liabilities | 13,432 | 37,177 | 35,193 | 46,036 | 13,432 | 37,177 | ||||||||||||||||||
Net cash provided by (used in) operating activities | (20,571 | ) | 129,507 | (74,174 | ) | (15,425 | ) | (20,571 | ) | 129,507 | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Proceeds from sale of property, equipment, and operating lease equipment | 21,923 | 2,791 | 1,705 | 3,742 | 21,923 | 2,791 | ||||||||||||||||||
Purchases of property, equipment and operating lease equipment | (23,182 | ) | (11,513 | ) | (7,009 | ) | (9,380 | ) | (23,182 | ) | (11,513 | ) | ||||||||||||
Cash used in acquisitions, net of cash acquired | 0 | (27,034 | ) | (15,035 | ) | (13,288 | ) | - | (27,034 | ) | ||||||||||||||
Net cash used in investing activities | (1,259 | ) | (35,756 | ) | (20,339 | ) | (18,926 | ) | (1,259 | ) | (35,756 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Borrowings of non-recourse and recourse notes payable | 114,105 | 66,403 | 141,369 | 193,051 | 114,105 | 66,403 | ||||||||||||||||||
Repayments of non-recourse and recourse notes payable | (99,991 | ) | (74,328 | ) | (31,880 | ) | (196,069 | ) | (99,991 | ) | (74,328 | ) | ||||||||||||
Repurchase of common stock | (13,608 | ) | (6,948 | ) | (14,425 | ) | (7,224 | ) | (13,608 | ) | (6,948 | ) | ||||||||||||
Repayments of financing of acquisitions | 0 | (556 | ) | (5,763 | ) | - | - | (556 | ) | |||||||||||||||
Net borrowings (repayments) on floor plan facility | 46,670 | (34,373 | ) | 11,333 | (10,708 | ) | 46,670 | (34,373 | ) | |||||||||||||||
Net cash provided by (used in) financing activities | 47,176 | (49,802 | ) | 100,634 | (20,950 | ) | 47,176 | (49,802 | ) | |||||||||||||||
Effect of exchange rate changes on cash | 470 | (618 | ) | 294 | 3,016 | 470 | (618 | ) | ||||||||||||||||
Net increase in cash and cash equivalents | 25,816 | 43,331 | 6,415 | |||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (52,285 | ) | 25,816 | 43,331 | ||||||||||||||||||||
Cash and cash equivalents, beginning of period | 129,562 | 86,231 | 79,816 | 155,378 | 129,562 | 86,231 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 155,378 | $ | 129,562 | $ | 86,231 | $ | 103,093 | $ | 155,378 | $ | 129,562 |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | 2020 | 2023 | 2022 | 2021 | |||||||||||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||||||||||
Cash paid for interest | $ | 1,714 | $ | 1,436 | $ | 2,260 | $ | 4,065 | $ | 1,714 | $ | 1,436 | ||||||||||||
Cash paid for income taxes | $ | 47,143 | $ | 31,690 | $ | 28,356 | $ | 51,984 | $ | 47,143 | $ | 31,690 | ||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | 4,653 | $ | 5,780 | $ | 5,613 | $ | 4,610 | $ | 4,653 | $ | 5,780 | ||||||||||||
Schedule of non-cash investing and financing activities: | ||||||||||||||||||||||||
Proceeds from sale of property, equipment, and leased equipment | $ | 18 | $ | 2,045 | $ | 0 | $ | 21 | $ | 18 | $ | 2,045 | ||||||||||||
Purchases of property, equipment, and operating lease equipment | $ | (98 | ) | $ | (372 | ) | $ | (329 | ) | $ | (1,453 | ) | $ | (98 | ) | $ | (372 | ) | ||||||
Consideration for acquisitions | $ | 0 | $ | 0 | $ | (241 | ) | |||||||||||||||||
Borrowing of non-recourse and recourse notes payable | $ | 58,619 | $ | 121,826 | $ | 114,439 | $ | 39,558 | $ | 58,619 | $ | 121,826 | ||||||||||||
Repayments of non-recourse and recourse notes payable | $ | (32 | ) | $ | (34 | ) | $ | (70 | ) | $ | - | $ | (32 | ) | $ | (34 | ) | |||||||
Vesting of share-based compensation | $ | 8,481 | $ | 7,937 | $ | 8,990 | $ | 9,897 | $ | 8,481 | $ | 7,937 | ||||||||||||
Repurchase of common stock | $ | (122 | ) | $ | - | $ | - | |||||||||||||||||
New operating lease assets obtained in exchange for lease obligations | $ | 2,653 | $ | 1,146 | $ | 6,035 | $ | 11,886 | $ | 2,653 | $ | 1,146 |
Common Stock | Additional Paid-In | Treasury | Retained | Accumulated Other Comprehensive | Accumulated | |||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Par Value | Capital | Stock | Earnings | Income | Total | Additional | Other | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, April 1, 2019 | 27,222 | $ | 143 | $ | 137,243 | $ | (53,999 | ) | $ | 341,137 | $ | (271 | ) | $ | 424,253 | |||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock awards | 186 | 1 | 0 | 0 | 0 | 0 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 0 | 0 | 7,954 | 0 | 0 | 0 | 7,954 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (408 | ) | 0 | 0 | (14,425 | ) | 0 | 0 | (14,425 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | - | 0 | 0 | 0 | 69,082 | 0 | 69,082 | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | - | 0 | 0 | 0 | 0 | (720 | ) | (720 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-In | Treasury | Retained | Comprehensive | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Par Value | Capital | Stock | Earnings | Income | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2020 | 27,000 | $ | 144 | $ | 145,197 | $ | (68,424 | ) | $ | 410,219 | $ | (991 | ) | $ | 486,145 | 27,000 | $ | 144 | $ | 145,197 | $ | (68,424 | ) | $ | 410,219 | $ | (991 | ) | $ | 486,145 | ||||||||||||||||||||||||||
Issuance of restricted stock awards | 200 | 1 | 0 | 0 | 0 | 0 | 1 | 200 | 1 | - | - | - | - | 1 | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 0 | 0 | 7,169 | 0 | 0 | 0 | 7,169 | - | - | 7,169 | - | - | - | 7,169 | ||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (194 | ) | 0 | 0 | (6,948 | ) | 0 | 0 | (6,948 | ) | (194 | ) | - | - | (6,948 | ) | - | - | (6,948 | ) | ||||||||||||||||||||||||||||||||||||
Net earnings | - | 0 | 0 | 0 | 74,397 | 0 | 74,397 | - | - | - | - | 74,397 | - | 74,397 | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | - | 0 | 0 | 0 | 0 | 1,646 | 1,646 | - | - | - | - | - | 1,646 | 1,646 | ||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | 27,006 | $ | 145 | $ | 152,366 | $ | (75,372 | ) | $ | 484,616 | $ | 655 | $ | 562,410 | 27,006 | $ | 145 | $ | 152,366 | $ | (75,372 | ) | $ | 484,616 | $ | 655 | $ | 562,410 | ||||||||||||||||||||||||||||
Issuance of restricted stock awards | 163 | 1 | 0 | 0 | 0 | 0 | 1 | 163 | 1 | - | - | - | - | 1 | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 0 | 0 | 7,114 | 0 | 0 | 0 | 7,114 | - | - | 7,114 | - | - | - | 7,114 | ||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (283 | ) | 0 | 0 | (13,608 | ) | 0 | 0 | (13,608 | ) | (283 | ) | - | - | (13,608 | ) | - | - | (13,608 | ) | ||||||||||||||||||||||||||||||||||||
Stock split effected in the form of a dividend | 135 | 0 | 0 | (135 | ) | 0 | 0 | 135 | - | - | (135 | ) | - | - | ||||||||||||||||||||||||||||||||||||||||||
Retirement of treasury stock | (11 | ) | 0 | 82,246 | (82,235 | ) | 0 | 0 | (11 | ) | - | 82,246 | (82,235 | ) | - | - | ||||||||||||||||||||||||||||||||||||||||
Net earnings | - | 0 | 0 | 0 | 105,600 | 0 | 105,600 | - | - | - | - | 105,600 | - | 105,600 | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | - | 0 | 0 | 0 | 0 | (779 | ) | (779 | ) | - | - | - | - | - | (779 | ) | (779 | ) | ||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | 26,886 | $ | 270 | $ | 159,480 | $ | (6,734 | ) | $ | 507,846 | $ | (124 | ) | $ | 660,738 | 26,886 | $ | 270 | $ | 159,480 | $ | (6,734 | ) | $ | 507,846 | $ | (124 | ) | $ | 660,738 | ||||||||||||||||||||||||||
Issuance of restricted stock awards | 150 | 2 | - | - | - | - | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | - | - | 7,823 | - | - | - | 7,823 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (131 | ) | - | - | (7,346 | ) | - | - | (7,346 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 119,356 | - | 119,356 | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | 1,692 | 1,692 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | 26,905 | $ | 272 | $ | 167,303 | $ | (14,080 | ) | $ | 627,202 | $ | 1,568 | $ | 782,265 |
● | Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. |
● | Level 2 – Inputs other than quoted prices included within Level 1, such as quoted prices for similar assets or liabilities in active markets, that are observable for the asset or liability, either directly or indirectly. |
● | Level 3 – Unobservable inputs for the asset or liability. The fair values are determined based on model-based techniques such as discounted cash flow models using inputs that we could not corroborate with market data. |
March 31, | March 31, | |||||||||||||||||||||||
2022 | 2021 | 2020 | 2023 | 2022 | 2021 | |||||||||||||||||||
Current (included in deferred revenue) | $ | 85,826 | $ | 72,299 | $ | 54,486 | $ | 113,713 | $ | 85,826 | $ | 72,299 | ||||||||||||
Non-current (included in other liabilities) | $ | 30,086 | $ | 26,042 | $ | 16,395 | $ | 47,217 | $ | 30,086 | $ | 26,042 |
Year ending March 31, 2023 | $ | 45,471 | ||||||
2024 | 20,021 | |||||||
Year ending March 31, 2024 | 64,863 | |||||||
2025 | 7,064 | 28,269 | ||||||
2026 | 1,518 | 12,855 | ||||||
2027 and thereafter | 357 | |||||||
2027 | 4,132 | |||||||
2028 and thereafter | 1,442 | |||||||
Total remaining performance obligations | $ | 74,431 | $ | 111,561 |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||
Net sales | $ | 14,943 | $ | 27,196 | $ | 22,677 | $ | 14,943 | ||||||||
Cost of sales | 12,478 | 17,855 | 19,009 | 12,478 | ||||||||||||
Gross profit | $ | 2,465 | $ | 9,341 | $ | 3,668 | $ | 2,465 |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||
Interest income on sales-type leases | $ | 3,904 | $ | 7,602 | $ | 3,943 | $ | 3,904 | ||||||||
Lease income on operating leases | $ | 24,711 | $ | 15,864 | $ | 17,421 | $ | 24,711 |
March 31, 2022 | Notes Receivable | Lease Receivables | Financing Receivables | |||||||||||||||||||||
Notes | Lease | Financing | ||||||||||||||||||||||
March 31, 2023 | Receivable | Receivables | Receivables | |||||||||||||||||||||
Gross receivables | $ | 80,517 | $ | 38,788 | $ | 119,305 | $ | 117,008 | $ | 60,157 | $ | 177,165 | ||||||||||||
Unguaranteed residual value (1) | 0 | 9,141 | 9,141 | - | 8,161 | 8,161 | ||||||||||||||||||
Unearned income | (2,728 | ) | (3,604 | ) | (6,332 | ) | (5,950 | ) | (8,050 | ) | (14,000 | ) | ||||||||||||
Allowance for credit losses (2) | (708 | ) | (681 | ) | (1,389 | ) | (801 | ) | (981 | ) | (1,782 | ) | ||||||||||||
Total, net | $ | 77,081 | $ | 43,644 | $ | 120,725 | $ | 110,257 | $ | 59,287 | $ | 169,544 | ||||||||||||
Reported as: | ||||||||||||||||||||||||
Current | $ | 45,415 | $ | 16,077 | $ | 61,492 | $ | 65,738 | $ | 24,091 | $ | 89,829 | ||||||||||||
Long-term | 31,666 | 27,567 | 59,233 | 44,519 | 35,196 | 79,715 | ||||||||||||||||||
Total, net | $ | 77,081 | $ | 43,644 | $ | 120,725 | $ | 110,257 | $ | 59,287 | $ | 169,544 |
(1) | Includes unguaranteed residual values of $4,222 thousand that we retained after selling the related lease receivable. |
(2) | Refer to Note 7, “Allowance for Credit Losses” for details. |
Notes | Lease | Financing | ||||||||||
March 31, 2022 | Receivable | Receivables | Receivables | |||||||||
Gross receivables | $ | 80,517 | $ | 38,788 | $ | 119,305 | ||||||
Unguaranteed residual value (1) | - | 9,141 | 9,141 | |||||||||
Unearned income | (2,728 | ) | (3,604 | ) | (6,332 | ) | ||||||
Allowance for credit losses (2) | (708 | ) | (681 | ) | (1,389 | ) | ||||||
Total, net | $ | 77,081 | $ | 43,644 | $ | 120,725 | ||||||
Reported as: | ||||||||||||
Current | $ | 45,415 | $ | 16,077 | $ | 61,492 | ||||||
Long-term | 31,666 | 27,567 | 59,233 | |||||||||
Total, net | $ | 77,081 | $ | 43,644 | $ | 120,725 |
(1) | Includes unguaranteed residual values of $6,424 thousand that we retained after selling the related lease receivable. |
(2) | Refer to Note |
March 31, 2021 | Notes Receivable | Lease Receivables | Financing Receivables | |||||||||
Gross receivables | $ | 112,641 | $ | 68,393 | $ | 181,034 | ||||||
Unguaranteed residual value (1) | 0 | 14,876 | 14,876 | |||||||||
Initial direct costs, net of amortization | 425 | 0 | 425 | |||||||||
Unearned income | 0 | (8,393 | ) | (8,393 | ) | |||||||
Allowance for credit losses (2) | (1,212 | ) | (1,171 | ) | (2,383 | ) | ||||||
Total, net | $ | 111,854 | $ | 73,705 | $ | 185,559 | ||||||
Reported as: | ||||||||||||
Current | $ | 73,175 | $ | 33,097 | $ | 106,272 | ||||||
Long-term | 38,679 | 40,608 | 79,287 | |||||||||
Total, net | $ | 111,854 | $ | 73,705 | $ | 185,559 |
Year ending March 31, 2023 | $ | 18,444 | ||||||
2024 | 11,267 | |||||||
Year ending March 31, 2024 | $ | 28,478 | ||||||
2025 | 6,608 | 17,216 | ||||||
2026 | 1,881 | 9,662 | ||||||
2027 and thereafter | 588 | |||||||
2027 | 3,547 | |||||||
2028 and thereafter | 1,254 | |||||||
Total | $ | 38,788 | $ | 60,157 |
March 31, 2022 | March 31, 2021 | March 31, 2023 | March 31, 2022 | |||||||||||||
Cost of equipment under operating leases | $ | 13,044 | $ | 18,748 | $ | 15,301 | $ | 13,044 | ||||||||
Accumulated depreciation | (7,985 | ) | (7,870 | ) | (10,599 | ) | (7,985 | ) | ||||||||
Investment in operating lease equipment—net (1) | $ | 5,059 | $ | 10,878 | $ | 4,702 | $ | 5,059 |
(1) | Amounts include estimated unguaranteed residual values of |
Year ending March 31, 2023 | $ | 2,402 | ||||||
2024 | 976 | |||||||
Year ending March 31, 2024 | $ | 1,618 | ||||||
2025 | 173 | 829 | ||||||
2026 | 269 | |||||||
2027 | 38 | |||||||
Total | $ | 3,551 | $ | 2,754 |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||
Lease term and Discount Rate | 2022 | 2021 | 2023 | 2022 | ||||||||||||
Weighted average remaining lease term (months) | 29 | 32 | 81 | 29 | ||||||||||||
Weighted average discount rate | 3.2 | % | 3.7 | % | 4.8 | % | 3.2 | % |
Year ending March 31, 2023 | $ | 3,635 | ||||||
2024 | 1,727 | |||||||
Year ending March 31, 2024 | $ | 2,796 | ||||||
2025 | 1,301 | 3,861 | ||||||
2026 | 322 | 1,884 | ||||||
2027 and thereafter | 156 | |||||||
2027 | 1,640 | |||||||
2028 and thereafter | 7,775 | |||||||
Total lease payments | 7,141 | 17,956 | ||||||
Less: interest | (271 | ) | (3,191 | ) | ||||
Present value of lease liabilities | $ | 6,870 | $ | 14,765 |
Year ended March 31, 2022 | Year ended March 31, 2021 | Year ended March 31, 2023 | Year ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Accumulated Impairment Loss | Net Carrying Amount | Goodwill | Accumulated Impairment Loss | Net Carrying Amount | Goodwill | Accumulated Impairment Loss | Net Carrying Amount | Goodwill | Accumulated Impairment Loss | Net Carrying Amount | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 135,318 | $ | (8,673 | ) | $ | 126,645 | $ | 126,770 | $ | (8,673 | ) | $ | 118,097 | $ | 135,216 | $ | (8,673 | ) | $ | 126,543 | $ | 135,318 | $ | (8,673 | ) | $ | 126,645 | ||||||||||||||||||||
Acquisitions | 0 | - | 0 | 8,328 | - | 8,328 | 9,694 | - | 9,694 | - | - | - | ||||||||||||||||||||||||||||||||||||
Foreign currency translations | (102 | ) | - | (102 | ) | 220 | - | 220 | (132 | ) | - | (132 | ) | (102 | ) | - | (102 | ) | ||||||||||||||||||||||||||||||
Ending balance | $ | 135,216 | $ | (8,673 | ) | $ | 126,543 | $ | 135,318 | $ | (8,673 | ) | $ | 126,645 | $ | 144,778 | $ | (8,673 | ) | $ | 136,105 | $ | 135,216 | $ | (8,673 | ) | $ | 126,543 |
March 31, 2022 | March 31, 2021 | March 31, 2023 | March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||||||||||
Customer relationships & other intangibles | $ | 77,224 | $ | (52,087 | ) | $ | 25,137 | $ | 77,335 | $ | (42,115 | ) | $ | 35,220 | ||||||||||||||||||||||||||||||||||
Purchased intangibles | $ | 85,449 | $ | (61,376 | ) | $ | 24,073 | $ | 77,224 | $ | (52,087 | ) | $ | 25,137 | ||||||||||||||||||||||||||||||||||
Capitalized software development | 10,517 | (8,404 | ) | 2,113 | 10,553 | (7,159 | ) | 3,394 | 10,516 | (9,544 | ) | 972 | 10,517 | (8,404 | ) | 2,113 | ||||||||||||||||||||||||||||||||
Total | $ | 87,741 | $ | (60,491 | ) | $ | 27,250 | $ | 87,888 | $ | (49,274 | ) | $ | 38,614 | $ | 95,965 | $ | (70,920 | ) | $ | 25,045 | $ | 87,741 | $ | (60,491 | ) | $ | 27,250 |
Year ending March 31, 2023 | $ | 8,024 | ||
2024 | 6,216 | |||
2025 | 4,645 | |||
2026 | 3,156 | |||
2027 | 1,887 | |||
2028 and thereafter | 1,209 | |||
Total | $ | 25,137 |
Year ending March 31, 2024 | $ | 8,104 | ||
2025 | 6,235 | |||
2026 | 4,448 | |||
2027 | 2,882 | |||
2028 | 1,658 | |||
2029 and thereafter | 746 | |||
Total | $ | 24,073 |
Accounts Receivable | Notes Receivable | Lease Receivables | Total | Accounts Receivable | Notes Receivable | Lease Receivables | Total | |||||||||||||||||||||||||
Balance as of March 31, 2019 | $ | 1,579 | $ | 505 | $ | 530 | $ | 2,614 | ||||||||||||||||||||||||
Provision for credit losses | 627 | 293 | 84 | 1,004 | ||||||||||||||||||||||||||||
Write-offs and other | (425 | ) | 0 | (4 | ) | (429 | ) | |||||||||||||||||||||||||
Balance as of March 31, 2020 | 1,781 | 798 | 610 | 3,189 | 1,781 | 798 | 610 | 3,189 | ||||||||||||||||||||||||
Provision for credit losses | 367 | 503 | 566 | 1,436 | 367 | 503 | 566 | 1,436 | ||||||||||||||||||||||||
Write-offs and other | (84 | ) | (89 | ) | (5 | ) | (178 | ) | (84 | ) | (89 | ) | (5 | ) | (178 | ) | ||||||||||||||||
Balance as of March 31, 2021 | 2,064 | 1,212 | 1,171 | 4,447 | 2,064 | 1,212 | 1,171 | 4,447 | ||||||||||||||||||||||||
Provision for credit losses | 482 | (312 | ) | (272 | ) | (102 | ) | 482 | (312 | ) | (272 | ) | (102 | ) | ||||||||||||||||||
Write-offs and other | (135 | ) | (192 | ) | (218 | ) | (545 | ) | (135 | ) | (192 | ) | (218 | ) | (545 | ) | ||||||||||||||||
Balance as of March 31, 2022 | $ | 2,411 | $ | 708 | $ | 681 | $ | 3,800 | 2,411 | 708 | 681 | 3,800 | ||||||||||||||||||||
Provision for credit losses | 273 | 93 | 300 | 666 | ||||||||||||||||||||||||||||
Write-offs and other | (112 | ) | - | - | (112 | ) | ||||||||||||||||||||||||||
Balance as of March 31, 2023 | 2,572 | 801 | 981 | 4,354 |
Amortized cost basis by origination year ending March 31, | Amortized cost basis by origination year ending March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | Total | Transfers (2) | Net credit exposure | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 and prior | Total | Transfers (2) | Net credit exposure | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes receivable: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
High CQR | $ | 35,264 | $ | 28,005 | $ | 1,297 | $ | 345 | $ | 2 | $ | 4 | $ | 64,917 | $ | (30,274 | ) | $ | 34,643 | $ | 72,155 | $ | 11,378 | $ | 11,267 | $ | 370 | $ | 30 | $ | - | $ | 95,200 | $ | (28,115 | ) | $ | 67,085 | ||||||||||||||||||||||||||||||||||
Average CQR | 8,922 | 2,976 | 758 | 213 | 3 | 0 | 12,872 | (4,763 | ) | 8,109 | 12,793 | 2,675 | 213 | 115 | 61 | 1 | 15,858 | (1,432 | ) | 14,426 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Low CQR | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 44,186 | $ | 30,981 | $ | 2,055 | $ | 558 | $ | 5 | $ | 4 | $ | 77,789 | $ | (35,037 | ) | $ | 42,752 | $ | 84,948 | $ | 14,053 | $ | 11,480 | $ | 485 | $ | 91 | $ | 1 | $ | 111,058 | $ | (29,547 | ) | $ | 81,511 | ||||||||||||||||||||||||||||||||||
Lease receivables: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
High CQR | $ | 14,549 | $ | 5,002 | $ | 2,499 | $ | 902 | $ | 50 | $ | 11 | $ | 23,013 | $ | (3,385 | ) | $ | 19,628 | $ | 21,629 | $ | 3,842 | $ | 1,916 | $ | 565 | $ | 51 | $ | 9 | $ | 28,012 | $ | (1,437 | ) | $ | 26,575 | ||||||||||||||||||||||||||||||||||
Average CQR | 10,936 | 3,092 | 741 | 47 | 72 | 0 | 14,888 | (347 | ) | 14,541 | 23,796 | 3,430 | 770 | 35 | 3 | - | 28,034 | (1,594 | ) | 26,440 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Low CQR | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 25,485 | $ | 8,094 | $ | 3,240 | $ | 949 | $ | 122 | $ | 11 | $ | 37,901 | $ | (3,732 | ) | $ | 34,169 | $ | 45,425 | $ | 7,272 | $ | 2,686 | $ | 600 | $ | 54 | $ | 9 | $ | 56,046 | $ | (3,031 | ) | $ | 53,015 | ||||||||||||||||||||||||||||||||||
Total amortized cost (1) | $ | 69,671 | $ | 39,075 | $ | 5,295 | $ | 1,507 | $ | 127 | $ | 15 | $ | 115,690 | $ | (38,769 | ) | $ | 76,921 | $ | 130,373 | $ | 21,325 | $ | 14,166 | $ | 1,085 | $ | 145 | $ | 10 | $ | 167,104 | $ | (32,578 | ) | $ | 134,526 |
(1) | Unguaranteed residual values of |
(2) | Transfers consist of receivables that have been transferred to third-party financial institutions on a non-recourse |
Amortized cost basis by origination year ending March 31, | Amortized cost basis by origination year ending March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | Total | Transfers (2) | Net credit exposure | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | Total | Transfers (2) | Net credit exposure | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes receivable: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
High CQR | $ | 93,793 | $ | 6,250 | $ | 769 | $ | 771 | $ | 19 | $ | 101,602 | $ | (63,471 | ) | $ | 38,131 | $ | 35,264 | $ | 28,005 | $ | 1,297 | $ | 345 | $ | 2 | $ | 4 | $ | 64,917 | $ | (30,274 | ) | $ | 34,643 | ||||||||||||||||||||||||||||||||
Average CQR | 7,689 | 2,468 | 550 | 8 | 0 | 10,715 | (2,896 | ) | 7,819 | 8,922 | 2,976 | 758 | 213 | 3 | - | 12,872 | (4,763 | ) | 8,109 | |||||||||||||||||||||||||||||||||||||||||||||||||
Low CQR | 0 | 0 | 324 | 0 | 0 | 324 | 0 | 324 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 101,482 | $ | 8,718 | $ | 1,643 | $ | 779 | $ | 19 | $ | 112,641 | $ | (66,367 | ) | $ | 46,274 | $ | 44,186 | $ | 30,981 | $ | 2,055 | $ | 558 | $ | 5 | $ | 4 | $ | 77,789 | $ | (35,037 | ) | $ | 42,752 | ||||||||||||||||||||||||||||||||
Lease receivables: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
High CQR | $ | 28,898 | $ | 5,885 | $ | 1,798 | $ | 463 | $ | 125 | $ | 37,169 | $ | (7,468 | ) | $ | 29,701 | $ | 14,549 | $ | 5,002 | $ | 2,499 | $ | 902 | $ | 50 | $ | 11 | $ | 23,013 | $ | (3,385 | ) | $ | 19,628 | ||||||||||||||||||||||||||||||||
Average CQR | 23,445 | 3,482 | 1,017 | 270 | 40 | 28,254 | (4,592 | ) | 23,662 | 10,936 | 3,092 | 741 | 47 | 72 | - | 14,888 | (347 | ) | 14,541 | |||||||||||||||||||||||||||||||||||||||||||||||||
Low CQR | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 52,343 | $ | 9,367 | $ | 2,815 | $ | 733 | $ | 165 | $ | 65,423 | $ | (12,060 | ) | $ | 53,363 | $ | 25,485 | $ | 8,094 | $ | 3,240 | $ | 949 | $ | 122 | $ | 11 | $ | 37,901 | $ | (3,732 | ) | $ | 34,169 | ||||||||||||||||||||||||||||||||
Total amortized cost (1) | $ | 153,825 | $ | 18,085 | $ | 4,458 | $ | 1,512 | $ | 184 | $ | 178,064 | $ | (78,427 | ) | $ | 99,637 | $ | 69,671 | $ | 39,075 | $ | 5,295 | $ | 1,507 | $ | 127 | $ | 15 | $ | 115,690 | $ | (38,769 | ) | $ | 76,921 |
(1) | Unguaranteed residual values of |
(2) | Transfers consist of receivables that have been transferred to third-party financial institutions on a non-recourse basis and receivables that are in the process of being transferred to third-party financial institutions. |
31-60 Days Past Due | 61-90 Days Past Due | > 90 Days Past Due | Total Past Due | Current | Total Billed | Unbilled | Amortized Cost | 31-60 Days Past Due | 61-90 Days Past Due | > 90 Days Past Due | Total Past Due | Current | Total Billed | Unbilled | Amortized Cost | |||||||||||||||||||||||||||||||||||||||||||||||||
Notes receivable | $ | 187 | $ | 37 | $ | 23 | $ | 247 | $ | 5,307 | $ | 5,554 | $ | 72,235 | $ | 77,789 | $ | 1,020 | $ | 862 | $ | 473 | $ | 2,355 | $ | 7,703 | $ | 10,058 | $ | 101,000 | $ | 111,058 | ||||||||||||||||||||||||||||||||
Lease receivables | 115 | 325 | 430 | 870 | 639 | 1,509 | 36,392 | 37,901 | 1,068 | 463 | 864 | 2,395 | 5,413 | 7,808 | 48,238 | 56,046 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 302 | $ | 362 | $ | 453 | $ | 1,117 | $ | 5,946 | $ | 7,063 | $ | 108,627 | $ | 115,690 | $ | 2,088 | $ | 1,325 | $ | 1,337 | $ | 4,750 | $ | 13,116 | $ | 17,866 | $ | 149,238 | $ | 167,104 |
31-60 Days Past Due | 61-90 Days Past Due | > 90 Days Past Due | Total Past Due | Current | Total Billed | Unbilled | Amortized Cost | 31-60 Days Past Due | 61-90 Days Past Due | > 90 Days Past Due | Total Past Due | Current | Total Billed | Unbilled | Amortized Cost | |||||||||||||||||||||||||||||||||||||||||||||||||
Notes receivable | $ | 648 | $ | 910 | $ | 673 | $ | 2,231 | $ | 3,240 | $ | 5,471 | $ | 107,170 | $ | 112,641 | $ | 187 | $ | 37 | $ | 23 | $ | 247 | $ | 5,307 | $ | 5,554 | $ | 72,235 | $ | 77,789 | ||||||||||||||||||||||||||||||||
Lease receivables | 804 | 132 | 643 | 1,579 | 2,566 | 4,145 | 61,278 | 65,423 | 115 | 325 | 430 | 870 | 639 | 1,509 | 36,392 | 37,901 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,452 | $ | 1,042 | $ | 1,316 | $ | 3,810 | $ | 5,806 | $ | 9,616 | $ | 168,448 | $ | 178,064 | $ | 302 | $ | 362 | $ | 453 | $ | 1,117 | $ | 5,946 | $ | 7,063 | $ | 108,627 | $ | 115,690 |
March 31, | March 31, | |||||||||||||||
March 31, 2022 | March 31, 2021 | 2023 | 2022 | |||||||||||||
Furniture, fixtures and equipment | $ | 28,640 | $ | 26,612 | $ | 29,818 | $ | 28,640 | ||||||||
Leasehold improvements | 7,615 | 6,918 | 10,398 | 7,615 | ||||||||||||
Capitalized software | 3,822 | 4,153 | 3,235 | 3,822 | ||||||||||||
Vehicles | 476 | 546 | 445 | 476 | ||||||||||||
Total assets | 40,553 | 38,229 | 43,896 | 40,553 | ||||||||||||
Accumulated depreciation and amortization | (32,642 | ) | (30,841 | ) | (31,963 | ) | (32,642 | ) | ||||||||
Property and equipment - net | $ | 7,911 | $ | 7,388 | $ | 11,933 | $ | 7,911 |
Recourse notes payable | Non-recourse notes payable | Recourse notes | Non-recourse | |||||||||||||
Year ended March 31, 2023 | $ | 7,848 | $ | 17,315 | ||||||||||||
2024 | 6,207 | 2,696 | ||||||||||||||
payable | notes payable | |||||||||||||||
Year ended March 31, 2024 | $ | 5,997 | $ | 24,819 | ||||||||||||
2025 | 0 | 961 | - | 5,880 | ||||||||||||
2026 | 0 | 584 | - | 2,589 | ||||||||||||
2027 | - | 1,053 | ||||||||||||||
Total maturities | $ | 14,055 | $ | 21,556 | $ | 5,997 | $ | 34,341 |
2022 | 2021 | 2020 | 2023 | 2022 | 2021 | |||||||||||||||||||
Net earnings attributable to common shareholders - basic and diluted | $ | 105,600 | $ | 74,397 | $ | 69,082 | $ | 119,356 | $ | 105,600 | $ | 74,397 | ||||||||||||
Basic and diluted common shares outstanding: | ||||||||||||||||||||||||
Weighted average common shares outstanding — basic | 26,638 | 26,674 | 26,654 | 26,569 | 26,638 | 26,674 | ||||||||||||||||||
Effect of dilutive shares | 228 | 160 | 176 | 85 | 228 | 160 | ||||||||||||||||||
Weighted average shares common outstanding — diluted | 26,866 | 26,834 | 26,830 | 26,654 | 26,866 | 26,834 | ||||||||||||||||||
Earnings per common share - basic | $ | 3.96 | $ | 2.79 | $ | 2.59 | $ | 4.49 | $ | 3.96 | $ | 2.79 | ||||||||||||
Earnings per common share - diluted | $ | 3.93 | $ | 2.77 | $ | 2.57 | $ | 4.48 | $ | 3.93 | $ | 2.77 |
Number of Shares | Weighted Average Grant-date Fair Value | Number of Shares | Weighted Average Grant-date Fair Value | |||||||||||||
Nonvested April 1, 2021 | 366,756 | $ | 37.49 | |||||||||||||
Nonvested April 1, 2022 | 343,806 | $ | 41.01 | |||||||||||||
Granted | 170,038 | $ | 46.56 | 158,447 | $ | 56.50 | ||||||||||
Vested | (185,716 | ) | $ | 39.19 | (179,336 | ) | $ | 39.49 | ||||||||
Forfeited | (7,272 | ) | $ | 34.07 | (8,057 | ) | $ | 42.28 | ||||||||
Nonvested March 31, 2022 | 343,806 | $ | 41.01 | |||||||||||||
Non-vested March 31, 2023 | 314,860 | $ | 49.57 |
Year Ended March 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Equity-based compensation expense | $ | 7,825 | $ | 7,114 | $ | 7,169 | ||||||
Income tax benefit | (2,097 | ) | (1,999 | ) | (2,179 | ) |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | 2020 | 2023 | 2022 | 2021 | |||||||||||||||||||
Income tax expense computed at the U.S. statutory federal rate | $ | 30,845 | $ | 22,450 | $ | 20,182 | $ | 34,224 | $ | 30,845 | $ | 22,450 | ||||||||||||
State income tax expense—net of federal benefit | 8,937 | 6,941 | 5,659 | 8,754 | 8,937 | 6,941 | ||||||||||||||||||
Non-deductible executive compensation | 1,749 | 2,052 | 613 | 1,708 | 1,749 | 2,052 | ||||||||||||||||||
Other | (247 | ) | 1,066 | 423 | (1,068 | ) | (247 | ) | 1,066 | |||||||||||||||
Provision for income taxes | $ | 41,284 | $ | 32,509 | $ | 26,877 | $ | 43,618 | $ | 41,284 | $ | 32,509 | ||||||||||||
Effective income tax rate | 28.1 | % | 30.4 | % | 28.0 | % | 26.8 | % | 28.1 | % | 30.4 | % |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | 2020 | 2023 | 2022 | 2021 | |||||||||||||||||||
Current: | ||||||||||||||||||||||||
Federal | $ | 32,309 | $ | 26,054 | $ | 19,367 | $ | 30,928 | $ | 32,309 | $ | 26,054 | ||||||||||||
State | 11,681 | 9,882 | 9,520 | 10,110 | 11,681 | 9,882 | ||||||||||||||||||
Foreign | 894 | 770 | 200 | 499 | 894 | 770 | ||||||||||||||||||
Total current expense | 44,884 | 36,706 | 29,087 | 41,537 | 44,884 | 36,706 | ||||||||||||||||||
Deferred: | ||||||||||||||||||||||||
Federal | (3,289 | ) | (3,067 | ) | (492 | ) | 1,301 | (3,289 | ) | (3,067 | ) | |||||||||||||
State | (370 | ) | (1,096 | ) | (1,799 | ) | 970 | (370 | ) | (1,096 | ) | |||||||||||||
Foreign | 59 | (34 | ) | 81 | (190 | ) | 59 | (34 | ) | |||||||||||||||
Total deferred benefit | (3,600 | ) | (4,197 | ) | (2,210 | ) | ||||||||||||||||||
Total deferred expense (benefit) | 2,081 | (3,600 | ) | (4,197 | ) | |||||||||||||||||||
Provision for income taxes | $ | 41,284 | $ | 32,509 | $ | 26,877 | $ | 43,618 | $ | 41,284 | $ | 32,509 |
March 31, | March 31, | |||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||
Deferred tax assets: | ||||||||||||||||
Accrued vacation | $ | 2,391 | $ | 2,537 | $ | 2,251 | $ | 2,391 | ||||||||
Deferred revenue | 5,090 | 4,227 | 5,448 | 5,090 | ||||||||||||
Allowance for credit losses | 951 | 1,048 | 1,063 | 951 | ||||||||||||
Restricted stock | 616 | 772 | 654 | 616 | ||||||||||||
Other deferred tax assets | 743 | 1,552 | 1,697 | 743 | ||||||||||||
Accrued bonus | 2,532 | 2,277 | 2,323 | 2,532 | ||||||||||||
Lease liabilities | 1,857 | 2,476 | 3,939 | 1,857 | ||||||||||||
Other credits and carryforwards | 249 | 0 | 277 | 249 | ||||||||||||
Gross deferred tax assets | 14,429 | 14,889 | 17,652 | 14,429 | ||||||||||||
Less: valuation allowance | (250 | ) | 0 | (112 | ) | (250 | ) | |||||||||
Net deferred tax assets | 14,179 | 14,889 | 17,540 | 14,179 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Property and equipment | (2,295 | ) | (2,391 | ) | (2,926 | ) | (2,295 | ) | ||||||||
Operating leases | (2,759 | ) | (6,948 | ) | (3,789 | ) | (2,759 | ) | ||||||||
Prepaid expenses | (887 | ) | (912 | ) | (1,729 | ) | (887 | ) | ||||||||
Right-of-use assets | (1,869 | ) | (2,419 | ) | (3,885 | ) | (1,869 | ) | ||||||||
Tax deductible goodwill | (1,319 | ) | (751 | ) | (2,244 | ) | (1,319 | ) | ||||||||
Total deferred tax liabilities | (9,129 | ) | (13,421 | ) | (14,573 | ) | (9,129 | ) | ||||||||
Net deferred tax asset | $ | 5,050 | $ | 1,468 | $ | 2,967 | $ | 5,050 |
Fair Value Measurement Using | 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) | |||||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Money market funds | $ | 8,880 | $ | 8,880 | $ | - | $ | - | ||||||||||||||||||||||||
Recorded Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Money market funds | $ | 18,138 | $ | 18,138 | $ | 0 | $ | 0 | $ | 18,138 | $ | 18,138 | $ | - | $ | - | ||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Money market funds | $ | 45,134 | $ | 45,134 | $ | 0 | $ | 0 |
Acquisition Date Amount | Acquisition Date Amount | |||||||
Accounts receivable | $ | 14,526 | $ | 4,033 | ||||
Other assets | 3,344 | 129 | ||||||
Identified intangible assets | 14,280 | 8,360 | ||||||
Accounts payable and other current liabilities | (11,424 | ) | ||||||
Performance obligations | (2,020 | ) | ||||||
Accounts payable and other liabilities | (8,714 | ) | ||||||
Contract liabilities | (214 | ) | ||||||
Total identifiable net assets | 18,706 | 3,594 | ||||||
Goodwill | 8,328 | 9,694 | ||||||
Total purchase consideration | $ | 27,034 | $ | 13,288 |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2023 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Technology | Financing | Total | Technology | Financing | Total | Technology | Financing | Total | Technology | Financing | Total | Technology | Financing | Total | Technology | Financing | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product | $ | 1,492,411 | $ | 87,983 | $ | 1,580,394 | $ | 1,305,789 | $ | 60,369 | $ | 1,366,158 | $ | 1,337,022 | $ | 58,266 | $ | 1,395,288 | $ | 1,750,802 | $ | 52,473 | $ | 1,803,275 | $ | 1,492,411 | $ | 87,983 | $ | 1,580,394 | $ | 1,305,789 | $ | 60,369 | $ | 1,366,158 | ||||||||||||||||||||||||||||||||||||
Service | 240,625 | 0 | 240,625 | 202,165 | 0 | 202,165 | 193,116 | 0 | 193,116 | 264,443 | - | 264,443 | 240,625 | - | 240,625 | 202,165 | - | 202,165 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 1,733,036 | 87,983 | 1,821,019 | 1,507,954 | 60,369 | 1,568,323 | 1,530,138 | 58,266 | 1,588,404 | 2,015,245 | 52,473 | 2,067,718 | 1,733,036 | 87,983 | 1,821,019 | 1,507,954 | 60,369 | 1,568,323 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of Sales | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product | 1,175,789 | 35,154 | 1,210,943 | 1,036,627 | 13,050 | 1,049,677 | 1,069,110 | 7,663 | 1,076,773 | 1,370,061 | 9,439 | 1,379,500 | 1,175,789 | 35,154 | 1,210,943 | 1,036,627 | 13,050 | 1,049,677 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service | 149,094 | 0 | 149,094 | 125,092 | 0 | 125,092 | 120,440 | 0 | 120,440 | 170,694 | - | 170,694 | 149,094 | - | 149,094 | 125,092 | - | 125,092 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 1,324,883 | 35,154 | 1,360,037 | 1,161,719 | 13,050 | 1,174,769 | 1,189,550 | 7,663 | 1,197,213 | 1,540,755 | 9,439 | 1,550,194 | 1,324,883 | 35,154 | 1,360,037 | 1,161,719 | 13,050 | 1,174,769 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Profit | 408,153 | 52,829 | 460,982 | 346,235 | 47,319 | 393,554 | 340,588 | 50,603 | 391,191 | 474,490 | 43,034 | 517,524 | 408,153 | 52,829 | 460,982 | 346,235 | 47,319 | 393,554 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general, and administrative | 283,690 | 13,427 | 297,117 | 256,210 | 15,053 | 271,263 | 264,123 | 15,059 | 279,182 | 317,885 | 15,635 | 333,520 | 283,690 | 13,427 | 297,117 | 256,210 | 15,053 | 271,263 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 14,535 | 111 | 14,646 | 13,839 | 112 | 13,951 | 14,016 | 140 | 14,156 | 13,598 | 111 | 13,709 | 14,535 | 111 | 14,646 | 13,839 | 112 | 13,951 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest and financing costs | 928 | 975 | 1,903 | 521 | 1,484 | 2,005 | 294 | 2,280 | 2,574 | 2,897 | 1,236 | 4,133 | 928 | 975 | 1,903 | 521 | 1,484 | 2,005 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | 299,153 | 14,513 | 313,666 | 270,570 | 16,649 | 287,219 | 278,433 | 17,479 | 295,912 | 334,380 | 16,982 | 351,362 | 299,153 | 14,513 | 313,666 | 270,570 | 16,649 | 287,219 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | 109,000 | 38,316 | 147,316 | 75,665 | 30,670 | 106,335 | 62,155 | 33,124 | 95,279 | 140,110 | 26,052 | 166,162 | 109,000 | 38,316 | 147,316 | 75,665 | 30,670 | 106,335 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense) | (432 | ) | 571 | 680 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense), net | (3,188 | ) | (432 | ) | 571 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings before tax | $ | 146,884 | $ | 106,906 | $ | 95,959 | $ | 162,974 | $ | 146,884 | $ | 106,906 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contracts with customers | $ | 1,718,093 | $ | 34,842 | $ | 1,752,935 | $ | 1,484,104 | $ | 12,369 | $ | 1,496,473 | $ | 1,514,507 | $ | 4,589 | $ | 1,519,096 | $ | 1,992,568 | $ | 9,304 | $ | 2,001,872 | $ | 1,718,093 | $ | 34,842 | $ | 1,752,935 | $ | 1,484,104 | $ | 12,369 | $ | 1,496,473 | ||||||||||||||||||||||||||||||||||||
Financing and other | 14,943 | 53,141 | 68,084 | 23,850 | 48,000 | 71,850 | 15,631 | 53,677 | 69,308 | 22,677 | 43,169 | 65,846 | 14,943 | 53,141 | 68,084 | 23,850 | 48,000 | 71,850 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,733,036 | $ | 87,983 | $ | 1,821,019 | $ | 1,507,954 | $ | 60,369 | $ | 1,568,323 | $ | 1,530,138 | $ | 58,266 | $ | 1,588,404 | $ | 2,015,245 | $ | 52,473 | $ | 2,067,718 | $ | 1,733,036 | $ | 87,983 | $ | 1,821,019 | $ | 1,507,954 | $ | 60,369 | $ | 1,568,323 | ||||||||||||||||||||||||||||||||||||
Selected Financial Data - Statement of Cash Flow | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | $ | 15,592 | $ | 8,713 | $ | 24,305 | $ | 14,568 | $ | 5,423 | $ | 19,991 | $ | 14,516 | $ | 4,640 | $ | 19,156 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of property, equipment and operating lease equipment | $ | 4,951 | $ | 18,231 | $ | 23,182 | $ | 4,752 | $ | 6,761 | $ | 11,513 | $ | 4,842 | $ | 2,167 | $ | 7,009 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Financial Data - Balance Sheet | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 941,743 | $ | 224,460 | $ | 1,166,203 | $ | 828,576 | $ | 248,199 | $ | 1,076,775 | $ | 709,854 | $ | 199,259 | $ | 909,113 |
Selected Financial Data - Statement of Cash Flow | ||||||||||||||||||||||||||||||||||||
Depreciation and amortization | $ | 14,999 | $ | 3,590 | $ | 18,589 | $ | 15,592 | $ | 8,713 | $ | 24,305 | $ | 14,568 | $ | 5,423 | $ | 19,991 | ||||||||||||||||||
Purchases of property, equipment and operating lease equipment | $ | 7,693 | $ | 1,687 | $ | 9,380 | $ | 4,951 | $ | 18,231 | $ | 23,182 | $ | 4,752 | $ | 6,761 | $ | 11,513 | ||||||||||||||||||
Selected Financial Data - Balance Sheet | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 1,147,821 | $ | 267,005 | $ | 1,414,826 | $ | 941,743 | $ | 224,460 | $ | 1,166,203 | $ | 828,576 | $ | 248,199 | $ | 1,076,775 |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | 2020 | 2023 | 2022 | 2021 | |||||||||||||||||||
Customer end market: | ||||||||||||||||||||||||
Telecom, Media & Entertainment | $ | 502,408 | $ | 371,913 | $ | 289,958 | $ | 532,921 | $ | 502,408 | $ | 371,913 | ||||||||||||
Technology | 250,485 | 251,683 | 324,239 | 393,594 | 250,485 | 251,683 | ||||||||||||||||||
State and local government and educational institutions | 241,769 | 245,919 | 243,092 | 290,624 | 241,769 | 245,919 | ||||||||||||||||||
Healthcare | 270,481 | 200,067 | 233,894 | 274,936 | 270,481 | 200,067 | ||||||||||||||||||
Financial Services | 155,160 | 198,761 | 191,679 | 156,257 | 155,160 | 198,761 | ||||||||||||||||||
All others | 312,733 | 239,611 | 247,276 | 366,913 | 312,733 | 239,611 | ||||||||||||||||||
Net sales | 1,733,036 | 1,507,954 | 1,530,138 | 2,015,245 | 1,733,036 | 1,507,954 | ||||||||||||||||||
Less: Revenue from financing and other | (14,943 | ) | (23,850 | ) | (15,631 | ) | (22,677 | ) | (14,943 | ) | (23,850 | ) | ||||||||||||
Revenue from contracts with customers | $ | 1,718,093 | $ | 1,484,104 | $ | 1,514,507 | $ | 1,992,568 | $ | 1,718,093 | $ | 1,484,104 | ||||||||||||
Year Ended March 31, | ||||||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||||||
Vendor: | ||||||||||||||||||||||||
Cisco Systems | $ | 672,821 | $ | 537,041 | $ | 607,719 | ||||||||||||||||||
Dell EMC | 148,782 | 107,336 | 84,939 | |||||||||||||||||||||
Juniper Networks | 92,965 | 91,946 | 68,339 | |||||||||||||||||||||
HP Inc. & HPE | 56,171 | 59,838 | 71,802 | |||||||||||||||||||||
Arista Networks | 44,280 | 51,789 | 75,281 | |||||||||||||||||||||
NetApp | 91,948 | 58,020 | 59,812 | |||||||||||||||||||||
All others | 626,069 | 601,984 | 562,246 | |||||||||||||||||||||
Type: | ||||||||||||||||||||||||
Data Center / Cloud | $ | 587,097 | $ | 581,113 | $ | 516,930 | ||||||||||||||||||
Networking | 803,678 | 611,488 | 510,205 | |||||||||||||||||||||
Security | 214,459 | 158,927 | 155,186 | |||||||||||||||||||||
Collaboration | 57,472 | 57,244 | 47,504 | |||||||||||||||||||||
Other | 88,096 | 83,639 | 75,964 | |||||||||||||||||||||
ePlus services | 264,443 | 240,625 | 202,165 | |||||||||||||||||||||
Net sales | 1,733,036 | 1,507,954 | 1,530,138 | 2,015,245 | 1,733,036 | 1,507,954 | ||||||||||||||||||
Less: Revenue from financing and other | (14,943 | ) | (23,850 | ) | (15,631 | ) | (22,677 | ) | (14,943 | ) | (23,850 | ) | ||||||||||||
Revenue from contracts with customers | $ | 1,718,093 | $ | 1,484,104 | $ | 1,514,507 | $ | 1,992,568 | $ | 1,718,093 | $ | 1,484,104 | ||||||||||||
Timing and position as principal or agent: | ||||||||||||||||||||||||
Transferred at a point in time as principal | $ | 1,566,760 | $ | 1,342,799 | $ | 1,174,582 | ||||||||||||||||||
Transferred at a point in time as agent | 161,365 | 134,669 | 107,357 | |||||||||||||||||||||
Transferred over time as principal | 264,443 | 240,625 | 202,165 | |||||||||||||||||||||
Revenue from contracts with customers | $ | 1,992,568 | $ | 1,718,093 | $ | 1,484,104 |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | 2020 | 2023 | 2022 | 2021 | |||||||||||||||||||
Net sales: | ||||||||||||||||||||||||
US | $ | 1,716,525 | $ | 1,476,466 | $ | 1,508,329 | $ | 1,953,465 | $ | 1,716,525 | $ | 1,476,466 | ||||||||||||
Non US | 104,494 | 91,857 | 80,075 | 114,253 | 104,494 | 91,857 | ||||||||||||||||||
Total | $ | 1,821,019 | $ | 1,568,323 | $ | 1,588,404 | $ | 2,067,718 | $ | 1,821,019 | $ | 1,568,323 | ||||||||||||
March 31, | ||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
Long-lived tangible assets: | ||||||||||||||||||||||||
US | $ | 21,837 | $ | 33,504 | ||||||||||||||||||||
Non US | 716 | 931 | ||||||||||||||||||||||
Total | $ | 22,553 | $ | 34,435 |
March 31, | ||||||||
2023 | 2022 | |||||||
Long-lived tangible assets: | ||||||||
US | $ | 16,313 | $ | 21,837 | ||||
Non US | 1,140 | 716 | ||||||
Total | $ | 17,453 | $ | 22,553 |
Balance at Beginning of Period | Charged to Costs and Expenses | Deductions/ Write-Offs | Balance at End of Period | Balance at Beginning of Period | Charged to Costs and Expenses | Deductions/ Write-Offs | Balance at End of Period | |||||||||||||||||||||||||
Allowance for sales returns: (1) | ||||||||||||||||||||||||||||||||
Year ended March 31, 2020 | 852 | 2,678 | (2,492 | ) | 1,038 | |||||||||||||||||||||||||||
Year ended March 31, 2021 | 1,038 | 2,909 | (2,758 | ) | 1,189 | $ | 1,038 | $ | 2,909 | $ | (2,758 | ) | $ | 1,189 | ||||||||||||||||||
Year ended March 31, 2022 | 1,189 | 2,158 | (2,101 | ) | 1,246 | $ | 1,189 | $ | 2,158 | $ | (2,101 | ) | $ | 1,246 | ||||||||||||||||||
Year ended March 31, 2023 | $ | 1,246 | $ | 3,991 | $ | (3,973 | ) | $ | 1,264 | |||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||
Year ended March 31, 2020 | 2,614 | 1,004 | (429 | ) | 3,189 | |||||||||||||||||||||||||||
Year ended March 31, 2021 | 3,189 | 1,436 | (178 | ) | 4,447 | $ | 3,189 | $ | 1,436 | $ | (178 | ) | $ | 4,447 | ||||||||||||||||||
Year ended March 31, 2022 | 4,447 | (102 | ) | (545 | ) | 3,800 | $ | 4,447 | $ | (102 | ) | $ | (545 | ) | $ | 3,800 | ||||||||||||||||
Year ended March 31, 2023 | $ | 3,800 | $ | 666 | $ | (112 | ) | $ | 4,354 | |||||||||||||||||||||||
Valuation for deferred taxes: | ||||||||||||||||||||||||||||||||
Year ended March 31, 2020 | 1,065 | 320 | 0 | 1,385 | ||||||||||||||||||||||||||||
Year ended March 31, 2021 | 1,385 | 0 | (1,385 | ) | 0 | $ | 1,385 | $ | 0 | $ | (1,385 | ) | $ | 0 | ||||||||||||||||||
Year ended March 31, 2022 | 0 | 250 | 0 | 250 | $ | 0 | $ | 250 | $ | 0 | $ | 250 | ||||||||||||||||||||
Year ended March 31, 2023 | $ | 250 | $ | (138 | ) | $ | 0 | $ | 112 |
(1) | These amounts represent the gross profit effect of sales returns during the respective years. Expected merchandise returns after year-end for sales made before year-end were |