☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 54-1817218 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer ☐ | Accelerated filer ☒ | |
Non-accelerated filer ☐ (Do not check if a smaller reporting company) | Smaller reporting company ☐ |
Part I. Financial Information: | ||
Item 1. | Financial Statements | |
5 | ||
6 | ||
7 | ||
8 | ||
10 | ||
11 | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Part II. Other Information: | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
· | uncertainty and volatility in the global economy and financial |
· | significant adverse changes in, reductions in, or losses of relationships with |
· | the creditworthiness of our customers and our ability to reserve adequately for credit losses; |
· | reduction of vendor incentives provided to us; |
· | we offer a comprehensive set of solutions— integrating information technology (IT) product sales, third-party software assurance and maintenance, our advanced professional and managed services, our proprietary software, and financing, and may encounter some of the challenges, risks, difficulties and uncertainties frequently faced by similar companies, such as: |
o | managing a diverse product set of solutions in highly competitive markets with a number of key vendors; |
o | increasing the total number of customers utilizing integrated solutions by up-selling within our customer base and gaining new customers; |
o | adapting to meet changes in markets and competitive developments; |
o | maintaining and increasing advanced professional services by retaining highly skilled personnel and vendor certifications; |
o | increasing the total number of customers who utilize our managed services and professional services and continuing to enhance our managed services offerings to remain competitive in the marketplace; |
o | maintain our proprietary software and update our technology infrastructure to remain competitive in the marketplace; and |
o | reliance on third parties to perform some of our service obligations; |
· | changes in the IT industry and/or rapid changes in product offerings, including the proliferation of the cloud, infrastructure as a service and software as a service; |
· | our dependency on continued innovations in hardware, software, and services offerings by our vendors and our ability to partner with them; |
· | future growth rates in our core businesses; |
· | failure to comply with public sector contracts or applicable laws; |
· | changes to or loss of any members of our senior management team and/or failure to successfully implement succession plans; |
· | our dependence on key personnel, and our ability to hire, train, and retain sufficient qualified personnel; |
· | our ability to implement comprehensive plans for the integration of sales forces, cost containment, asset rationalization, systems integration and other key strategies; |
· | a possible decrease in the capital spending budgets of our customers or a decrease in purchases from us; |
· | our contracts may not be adequate to protect us and our professional and liability insurance policies coverage may be insufficient to cover a claim; |
· | disruptions in our IT systems and data and audio communication networks; |
· | our ability to secure our and our customers’ electronic and other confidential information, and remain secure during a cyber-security attack; |
· | our ability to raise capital, maintain or increase as needed our lines of credit with vendors or floor planning facility, or obtain debt for our financing transactions or the effect of those changes on our common stock or its holders; |
· | our ability to realize our investment in leased equipment; |
· | our ability to successfully integrate acquired businesses; |
· | the possibility of goodwill impairment charges in the future; |
· | our ability to protect our intellectual property rights and successfully defend any challenges to the validity of our patents, and, when appropriate, license required technology; |
· | exposure to changes in, interpretations of, or enforcement trends in legislation; and |
· | significant changes in accounting standards including changes to the financial reporting of leases which could impact the demand for our leasing services, or misclassification of products and services we sell resulting in the misapplication of revenue recognition policies. |
Item 1. | Financial Statements |
As of September 30, 2015 | As of March 31, 2015 | As of December 31, 2015 | As of March 31, 2015 | |||||||||||||
ASSETS | (in thousands, except per share data) | (in thousands, except per share data) | ||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 62,842 | $ | 76,175 | $ | 66,567 | $ | 76,175 | ||||||||
Accounts receivable—trade, net | 259,089 | 218,458 | 258,553 | 218,458 | ||||||||||||
Accounts receivable—other, net | 31,740 | 31,345 | 35,908 | 31,345 | ||||||||||||
Inventories—net | 18,773 | 19,835 | 24,971 | 19,835 | ||||||||||||
Financing receivables—net, current | 64,268 | 66,909 | 68,466 | 66,909 | ||||||||||||
Deferred costs | 9,087 | 20,499 | 11,170 | 20,499 | ||||||||||||
Deferred tax assets | 3,643 | 3,643 | ||||||||||||||
Other current assets | 4,718 | 7,413 | 8,198 | 7,413 | ||||||||||||
Total current assets | 454,160 | 444,277 | 473,833 | 440,634 | ||||||||||||
Financing receivables and operating leases—net | 87,847 | 76,991 | 88,443 | 76,991 | ||||||||||||
Deferred tax assets | 4,311 | 3,875 | ||||||||||||||
Property, equipment and other assets | 8,969 | 9,480 | 8,989 | 9,248 | ||||||||||||
Goodwill and other intangible assets | 39,511 | 40,798 | 54,858 | 40,798 | ||||||||||||
TOTAL ASSETS | $ | 590,487 | $ | 571,546 | $ | 630,434 | $ | 571,546 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||
LIABILITIES | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable—equipment | $ | 11,369 | $ | 20,330 | $ | 28,995 | $ | 20,330 | ||||||||
Accounts payable—trade | 46,707 | 46,090 | 47,610 | 46,090 | ||||||||||||
Accounts payable—floor plan | 127,053 | 99,418 | 127,999 | 99,418 | ||||||||||||
Salaries and commissions payable | 13,994 | 14,860 | 15,002 | 14,860 | ||||||||||||
Deferred revenue | 20,665 | 34,363 | 24,950 | 34,363 | ||||||||||||
Recourse notes payable—current | 1,204 | 889 | 2,327 | 889 | ||||||||||||
Non-recourse notes payable—current | 28,137 | 28,560 | 34,800 | 28,560 | ||||||||||||
Other current liabilities | 16,476 | 13,575 | 13,499 | 13,575 | ||||||||||||
Total current liabilities | 265,605 | 258,085 | 295,182 | 258,085 | ||||||||||||
Recourse notes payable—long term | 2,815 | 2,801 | 1,782 | 2,801 | ||||||||||||
Non-recourse notes payable—long term | 10,510 | 24,314 | 10,656 | 24,314 | ||||||||||||
Deferred tax liability—long term | 3,271 | 3,271 | ||||||||||||||
Deferred tax liability | 3,707 | 3,271 | ||||||||||||||
Other liabilities | 3,277 | 3,813 | 2,433 | 3,813 | ||||||||||||
TOTAL LIABILITIES | 285,478 | 292,284 | 313,760 | 292,284 | ||||||||||||
COMMITMENTS AND CONTINGENCIES (Note 7) | ||||||||||||||||
STOCKHOLDERS' EQUITY | ||||||||||||||||
Preferred stock, $.01 per share par value; 2,000 shares authorized; none issued or outstanding | - | - | - | - | ||||||||||||
Common stock, $.01 per share par value; 25,000 shares authorized; 13,237 issued and 7,482 outstanding at September 30, 2015 and 13,114 issued and 7,389 outstanding at March 31, 2015 | 132 | 131 | ||||||||||||||
Common stock, $.01 per share par value; 25,000 shares authorized; 13,237 issued and 7,482 outstanding at December 31, 2015 and 13,114 issued and 7,389 outstanding at March 31, 2015 | 132 | 131 | ||||||||||||||
Additional paid-in capital | 114,934 | 111,072 | 116,441 | 111,072 | ||||||||||||
Treasury stock, at cost, 5,755 and 5,725 shares at September 30, 2015 and March 31, 2015, respectively | (120,654 | ) | (118,179 | ) | ||||||||||||
Treasury stock, at cost, 5,755 and 5,725 shares at December 31, 2015 and March 31, 2015, respectively | (120,654) | (118,179 | ) | |||||||||||||
Retained earnings | 310,970 | 286,477 | 321,267 | 286,477 | ||||||||||||
Accumulated other comprehensive income—foreign currency translation adjustment | (373 | ) | (239 | ) | (512) | (239 | ) | |||||||||
Total Stockholders' Equity | 305,009 | 279,262 | 316,674 | 279,262 | ||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 590,487 | $ | 571,546 | $ | 630,434 | $ | 571,546 |
Three Months Ended September 30, | Six Months Ended September 30, | Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||
(in thousands, except per share data) | (in thousands, except per share data) | |||||||||||||||||||||||||||||||
Net sales | $ | 336,286 | $ | 297,472 | $ | 606,152 | $ | 569,776 | $ | 298,644 | $ | 306,241 | $ | 904,796 | $ | 876,017 | �� | |||||||||||||||
Cost of sales | 264,365 | 233,548 | 475,101 | 449,413 | 234,584 | 240,803 | 709,685 | 690,216 | ||||||||||||||||||||||||
Gross profit | 71,921 | 63,924 | 131,051 | 120,363 | 64,060 | 65,438 | 195,111 | 185,801 | ||||||||||||||||||||||||
Professional and other fees | 1,513 | 1,577 | 3,031 | 3,410 | 1,882 | 1,436 | 4,913 | 4,846 | ||||||||||||||||||||||||
Salaries and benefits | 35,740 | 34,252 | 70,954 | 67,199 | 37,372 | 35,632 | 108,326 | 102,831 | ||||||||||||||||||||||||
General and administrative expenses | 7,585 | 7,158 | 14,364 | 13,431 | 6,765 | 7,233 | 21,129 | 20,664 | ||||||||||||||||||||||||
Interest and financing costs | 422 | 611 | 975 | 1,255 | 396 | 575 | 1,371 | 1,830 | ||||||||||||||||||||||||
Operating expenses | 45,260 | 43,598 | 89,324 | 85,295 | 46,415 | 44,876 | 135,739 | 130,171 | ||||||||||||||||||||||||
Operating income | 26,661 | 20,326 | 41,727 | 35,068 | 17,645 | 20,562 | 59,372 | 55,630 | ||||||||||||||||||||||||
Other income | - | - | - | 1,434 | - | 6,169 | - | 7,603 | ||||||||||||||||||||||||
Earnings before tax | 26,661 | 20,326 | 41,727 | 36,502 | 17,645 | 26,731 | 59,372 | 63,233 | ||||||||||||||||||||||||
Provision for income taxes | 10,982 | 8,374 | 17,234 | 15,073 | 7,348 | 11,230 | 24,582 | 26,303 | ||||||||||||||||||||||||
Net earnings | $ | 15,679 | $ | 11,952 | $ | 24,493 | $ | 21,429 | $ | 10,297 | $ | 15,501 | $ | 34,790 | $ | 36,930 | ||||||||||||||||
Net earnings per common share—basic | $ | 2.16 | $ | 1.63 | $ | 3.38 | $ | 2.88 | $ | 1.41 | $ | 2.14 | $ | 4.79 | $ | 5.02 | ||||||||||||||||
Net earnings per common share—diluted | $ | 2.15 | $ | 1.63 | $ | 3.35 | $ | 2.86 | $ | 1.40 | $ | 2.13 | $ | 4.74 | $ | 4.97 | ||||||||||||||||
Weighted average common shares outstanding—basic | 7,274 | 7,320 | 7,249 | 7,412 | 7,280 | 7,230 | 7,260 | 7,351 | ||||||||||||||||||||||||
Weighted average common shares outstanding—diluted | 7,297 | 7,345 | 7,310 | 7,461 | 7,329 | 7,279 | 7,336 | 7,413 |
Three Months Ended September 30, | Six Months Ended September 30, | Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||
(amounts in thousands) | (amounts in thousands) | |||||||||||||||||||||||||||||||
NET EARNINGS | $ | 15,679 | $ | 11,952 | $ | 24,493 | $ | 21,429 | $ | 10,297 | $ | 15,501 | $ | 34,790 | $ | 36,930 | ||||||||||||||||
OTHER COMPREHENSIVE INCOME, NET OF TAX: | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (177 | ) | (160 | ) | (134 | ) | (44 | ) | (139 | ) | (153 | ) | (273 | ) | (197 | ) | ||||||||||||||||
Other comprehensive income (loss) | (177 | ) | (160 | ) | (134 | ) | (44 | ) | (139 | ) | (153 | ) | (273 | ) | (197 | ) | ||||||||||||||||
TOTAL COMPREHENSIVE INCOME | $ | 15,502 | $ | 11,792 | $ | 24,359 | $ | 21,385 | $ | 10,158 | $ | 15,348 | $ | 34,517 | $ | 36,733 |
Six Months Ended September 30, | Nine Months Ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||||
Net earnings | $ | 24,493 | $ | 21,429 | $ | 34,790 | $ | 36,930 | ||||||||
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 8,503 | 7,631 | 13,020 | 11,441 | ||||||||||||
Reserve for credit losses, inventory obsolescence and sales returns | (123 | ) | 245 | (91 | ) | 275 | ||||||||||
Share-based compensation expense | 2,711 | 2,247 | 4,210 | 3,428 | ||||||||||||
Excess tax benefit from share-based compensation | (1,151 | ) | (824 | ) | (1,159 | ) | (734 | ) | ||||||||
Payments from lessees directly to lenders—operating leases | (2,560 | ) | (4,445 | ) | (3,587 | ) | (6,011 | ) | ||||||||
Gain on disposal of property, equipment and operating lease equipment | (517 | ) | (2,120 | ) | (2,621 | ) | (2,438 | ) | ||||||||
Gain on sale of financing receivables | (3,991 | ) | (3,179 | ) | (5,439 | ) | (4,640 | ) | ||||||||
Gain on settlement | - | (1,434 | ) | - | (1,434 | ) | ||||||||||
Other | 6 | 50 | 224 | 46 | ||||||||||||
Changes in: | ||||||||||||||||
Accounts receivable—trade | (40,015 | ) | 13,236 | (31,692 | ) | (27,378 | ) | |||||||||
Accounts receivable—other | (2,270 | ) | (854 | ) | (1,176 | ) | 4,492 | |||||||||
Inventories | 538 | (7,006 | ) | (5,643 | ) | (314 | ) | |||||||||
Financing receivables | (1,171 | ) | (14,187 | ) | ||||||||||||
Financing receivables—net | (10,670 | ) | (14,927 | ) | ||||||||||||
Deferred costs, other intangible assets and other assets | 11,035 | 1,333 | 5,888 | (6,309 | ) | |||||||||||
Accounts payable—equipment | 258 | (162 | ) | (197 | ) | (578 | ) | |||||||||
Accounts payable—trade | (7,442 | ) | (29,315 | ) | (5,715 | ) | (15,451 | ) | ||||||||
Salaries and commissions payable, deferred revenue and other liabilities | (10,964 | ) | 6,360 | (9,018 | ) | 13,672 | ||||||||||
Net cash used in operating activities | $ | (22,660 | ) | $ | (10,995 | ) | $ | (18,876 | ) | $ | (9,930 | ) | ||||
Cash Flows From Investing Activities: | ||||||||||||||||
Maturities of supplemental benefit plan investments | $ | - | $ | 2,544 | $ | - | $ | 2,544 | ||||||||
Proceeds from sale of property, equipment and operating lease equipment | 3,199 | 5,751 | 5,349 | 7,401 | ||||||||||||
Purchases of property, equipment and operating lease equipment | (15,618 | ) | (1,919 | ) | (17,008 | ) | (7,571 | ) | ||||||||
Purchases of assets to be leased or financed | (9,363 | ) | (10,000 | ) | (10,828 | ) | (7,628 | ) | ||||||||
Issuance of financing receivables | (67,623 | ) | (51,163 | ) | (102,612 | ) | (93,205 | ) | ||||||||
Repayments of financing receivables | 35,460 | 28,082 | 49,230 | 50,577 | ||||||||||||
Proceeds from sale of financing receivables | 26,021 | 12,341 | 48,174 | 24,216 | ||||||||||||
Premiums paid on life insurance | - | (47 | ) | |||||||||||||
Cash used in acquisitions, net of cash acquired | - | (7,818 | ) | (16,649 | ) | (7,992 | ) | |||||||||
Net cash used in investing activities | $ | (27,924 | ) | $ | (22,182 | ) | $ | (44,344 | ) | $ | (31,705 | ) |
Six Months Ended September 30, | Nine Months Ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Cash Flows From Financing Activities: | ||||||||||||||||
Borrowings of non-recourse and recourse notes payable | $ | 11,239 | $ | 30,104 | $ | 27,865 | $ | 40,329 | ||||||||
Repayments of non-recourse and recourse notes payable | (186 | ) | (802 | ) | (254 | ) | (1,580 | ) | ||||||||
Repurchase of common stock | (2,475 | ) | (34,782 | ) | (2,475 | ) | (37,080 | ) | ||||||||
Dividends paid | (80 | ) | (90 | ) | (80 | ) | (90 | ) | ||||||||
Payments of contingent consideration | (1,158 | ) | - | |||||||||||||
Excess tax benefit from share-based compensation | 1,151 | 824 | 1,159 | 734 | ||||||||||||
Net borrowings (repayments) on floor plan facility | 27,635 | 20,694 | 28,581 | 10,689 | ||||||||||||
Net cash provided by financing activities | 37,284 | 15,948 | 53,638 | 13,002 | ||||||||||||
Effect of exchange rate changes on cash | (33 | ) | (9 | ) | (26 | ) | (24 | ) | ||||||||
Net Decrease in Cash and Cash Equivalents | (13,333 | ) | (17,238 | ) | (9,608 | ) | (28,657 | ) | ||||||||
Cash and Cash Equivalents, Beginning of Period | 76,175 | 80,179 | 76,175 | 80,179 | ||||||||||||
Cash and Cash Equivalents, End of Period | $ | 62,842 | $ | 62,941 | $ | 66,567 | $ | 51,522 | ||||||||
Supplemental Disclosures of Cash Flow Information: | ||||||||||||||||
Cash paid for interest | $ | 50 | $ | 128 | $ | 65 | $ | 201 | ||||||||
Cash paid for income taxes | $ | 13,901 | $ | 12,770 | $ | 26,463 | $ | 26,233 | ||||||||
Schedule of Non-Cash Investing and Financing Activities: | ||||||||||||||||
Proceeds from sales of property, equipment and operating lease equipment | $ | 6,726 | $ | 910 | $ | 7,993 | $ | 297 | ||||||||
Purchase of property, equipment, and operating leases | $ | (8,181 | ) | $ | (335 | ) | $ | (11,985 | ) | $ | (336 | ) | ||||
Purchase of assets to be leased or financed included in accounts payable | $ | (5,615 | ) | $ | (18,578 | ) | $ | (8,554 | ) | $ | (15,633 | ) | ||||
Issuance of financing receivables | $ | (76,876 | ) | $ | - | $ | (91,022 | ) | $ | - | ||||||
Repayment of financing receivables | $ | 8,671 | $ | - | $ | 12,357 | $ | - | ||||||||
Proceeds from sale of financing receivables | $ | 58,520 | $ | 47,213 | $ | 75,584 | $ | 79,663 | ||||||||
Borrowing of recourse and nonrecourse notes payable | $ | 31,715 | $ | - | $ | 42,840 | $ | - | ||||||||
Repayments of non-recourse and recourse notes payable | $ | (16,462 | ) | $ | (19,171 | ) | $ | (22,292 | ) | $ | (26,469 | ) | ||||
Vesting of share-based compensation | $ | 7,687 | $ | 6,407 | $ | 7,743 | $ | 6,439 | ||||||||
Contingent consideration | $ | - | $ | 1,960 | $ | - | $ | 1,980 |
Common Stock | Additional Paid-In | Treasury | Retained | Accumulated Other Comprehensive | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Par Value | Capital | Stock | Earnings | Income | Total | Common Stock | Additional Paid-In | Treasury | Retained | Accumulated Other Comprehensive | |||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Shares | Par Value | Capital | Stock | Earnings | Income | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, April 1, 2015 | 7,389 | $ | 131 | $ | 111,072 | $ | (118,179 | ) | $ | 286,477 | $ | (239 | ) | $ | 279,262 | 7,389 | $ | 131 | $ | 111,072 | $ | (118,179 | ) | $ | 286,477 | $ | (239 | ) | $ | 279,262 | ||||||||||||||||||||||||||
Excess tax benefit of share- based compensation | - | - | 1,151 | - | - | - | 1,151 | |||||||||||||||||||||||||||||||||||||||||||||||||
Excess tax benefit of share-based ompensation | - | - | 1,159 | - | - | - | 1,159 | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock awards | 123 | 1 | - | - | - | - | 1 | 123 | 1 | - | - | - | - | 1 | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | - | - | 2,711 | - | - | - | 2,711 | - | - | 4,210 | - | - | - | 4,210 | ||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (30 | ) | - | - | (2,475 | ) | - | - | (2,475 | ) | (30 | ) | - | - | (2,475 | ) | - | - | (2,475 | ) | ||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 24,493 | - | 24,493 | - | - | - | - | 34,790 | - | 34,790 | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | (134 | ) | (134 | ) | - | - | - | - | - | (273 | ) | (273 | ) | ||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2015 | 7,482 | $ | 132 | $ | 114,934 | $ | (120,654 | ) | $ | 310,970 | $ | (373 | ) | $ | 305,009 | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2015 | 7,482 | $ | 132 | $ | 116,441 | $ | (120,654 | ) | $ | 321,267 | $ | (512 | ) | $ | 316,674 |
1. | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
2. | FINANCING RECEIVABLES AND OPERATING LEASES |
September 30, 2015 | Notes Receivables | Lease-Related Receivables | Total Financing Receivables | |||||||||||||||||||||
December 31, 2015 | Notes Receivables | Lease-Related Receivables | Total Financing Receivables | |||||||||||||||||||||
Minimum payments | $ | 61,555 | $ | 67,238 | $ | 128,793 | $ | 56,311 | $ | 74,551 | $ | 130,862 | ||||||||||||
Estimated unguaranteed residual value (1) | - | 9,287 | 9,287 | - | 10,893 | 10,893 | ||||||||||||||||||
Initial direct costs, net of amortization (2) | 431 | 536 | 967 | 439 | 845 | 1,284 | ||||||||||||||||||
Unearned income | - | (5,403 | ) | (5,403 | ) | - | (6,405 | ) | (6,405 | ) | ||||||||||||||
Reserve for credit losses (3) | (3,584 | ) | (848 | ) | (4,432 | ) | (3,580 | ) | (831 | ) | (4,411 | ) | ||||||||||||
Total, net | $ | 58,402 | $ | 70,810 | $ | 129,212 | $ | 53,170 | $ | 79,053 | $ | 132,223 | ||||||||||||
Reported as: | ||||||||||||||||||||||||
Current | $ | 30,811 | $ | 33,457 | $ | 64,268 | $ | 29,733 | $ | 38,733 | $ | 68,466 | ||||||||||||
Long-term | 27,591 | 37,353 | 64,944 | 23,437 | 40,320 | 63,757 | ||||||||||||||||||
Total, net | $ | 58,402 | $ | 70,810 | $ | 129,212 | $ | 53,170 | $ | 79,053 | $ | 132,223 |
(1) | Includes estimated unguaranteed residual values of |
(2) | Initial direct costs are shown net of amortization of |
(3) | For details on reserve for credit losses, refer to Note 4, “Reserves for Credit Losses.” |
March 31, 2015 | Notes Receivables | Lease-Related Receivables | Total Financing Receivables | |||||||||
Minimum payments | $ | 59,943 | $ | 66,415 | $ | 126,358 | ||||||
Estimated unguaranteed residual value (1) | - | 8,376 | 8,376 | |||||||||
Initial direct costs, net of amortization (2) | 429 | 495 | 924 | |||||||||
Unearned income | - | (5,233 | ) | (5,233 | ) | |||||||
Reserve for credit losses (3) | (3,573 | ) | (881 | ) | (4,454 | ) | ||||||
Total, net | $ | 56,799 | $ | 69,172 | $ | 125,971 | ||||||
Reported as: | ||||||||||||
Current | $ | 33,484 | $ | 33,425 | $ | 66,909 | ||||||
Long-term | 23,315 | 35,747 | 59,062 | |||||||||
Total, net | $ | 56,799 | $ | 69,172 | $ | 125,971 |
(1) | Includes estimated unguaranteed residual values of $3,977 thousand for direct financing leases which have been sold and accounted for as sales under ASC Topic 860, Transfers and Servicing. |
(2) | Initial direct costs are shown net of amortization of $647 thousand. |
(3) | For details on reserve for credit losses, refer to Note 4, “Reserves for Credit Losses.” |
September 30, 2015 | March 31, 2015 | December 31, 2015 | March 31, 2015 | |||||||||||||
Cost of equipment under operating leases | $ | 41,373 | $ | 36,283 | $ | 43,240 | $ | 36,283 | ||||||||
Accumulated depreciation | (18,470 | ) | (18,354 | ) | (18,554 | ) | (18,354 | ) | ||||||||
Investment in operating lease equipment—net (1) | $ | 22,903 | $ | 17,929 | $ | 24,686 | $ | 17,929 |
(1) | These totals include estimated unguaranteed residual values of |
3. | GOODWILL AND OTHER INTANGIBLE ASSETS |
September 30, 2015 | March 31, 2015 | December 31, 2015 | March 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization / Impairment Loss | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization / Impairment Loss | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization / Impairment Loss | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization / Impairment Loss | Net Carrying Amount | |||||||||||||||||||||||||||||||||||||
Goodwill | $ | 42,785 | $ | (8,673 | ) | $ | 34,112 | $ | 42,785 | $ | (8,673 | ) | $ | 34,112 | $ | 51,026 | $ | (8,673 | ) | $ | 42,353 | $ | 42,785 | $ | (8,673 | ) | $ | 34,112 | ||||||||||||||||||||
Customer relationships & other intangibles | 11,778 | (7,389 | ) | 4,389 | 12,005 | (6,560 | ) | 5,445 | 19,680 | (8,069 | ) | 11,611 | 12,005 | (6,560 | ) | 5,445 | ||||||||||||||||||||||||||||||||
Capitalized software development | 2,693 | (1,683 | ) | 1,010 | 2,693 | (1,452 | ) | 1,241 | 2,693 | (1,799 | ) | 894 | 2,693 | (1,452 | ) | 1,241 | ||||||||||||||||||||||||||||||||
Total | $ | 57,256 | $ | (17,745 | ) | $ | 39,511 | $ | 57,483 | $ | (16,685 | ) | $ | 40,798 | $ | 73,399 | $ | (18,541 | ) | $ | 54,858 | $ | 57,483 | $ | (16,685 | ) | $ | 40,798 |
Reporting Unit | September 30, 2015 | March 31, 2015 | December 31, 2015 | March 31, 2015 | ||||||||||||
Technology | $ | 33,023 | $ | 33,023 | $ | 41,264 | $ | 33,023 | ||||||||
Software Document Management | 1,089 | 1,089 | 1,089 | 1,089 |
4. | RESERVES FOR CREDIT LOSSES |
Accounts Receivable | Notes Receivable | Lease-Related Receivables | Total | Accounts Receivable | Notes Receivable | Lease-Related Receivables | Total | |||||||||||||||||||||||||
Balance April 1, 2015 | $ | 1,169 | $ | 3,573 | $ | 881 | $ | 5,623 | $ | 1,169 | $ | 3,573 | $ | 881 | $ | 5,623 | ||||||||||||||||
Provision for credit losses | 46 | 11 | (33 | ) | 24 | 12 | 7 | (50 | ) | (31 | ) | |||||||||||||||||||||
Write-offs and other | (119 | ) | - | - | (119 | ) | (119 | ) | - | - | (119 | ) | ||||||||||||||||||||
Balance September 30, 2015 | $ | 1,096 | $ | 3,584 | $ | 848 | $ | 5,528 | ||||||||||||||||||||||||
Accounts Receivable | Notes Receivable | Lease-Related Receivables | Total | |||||||||||||||||||||||||||||
Balance April 1, 2014 | $ | 1,364 | $ | 3,364 | $ | 1,024 | $ | 5,752 | ||||||||||||||||||||||||
Provision for credit losses | (99 | ) | 309 | 11 | 221 | |||||||||||||||||||||||||||
Write-offs and other | (122 | ) | - | (31 | ) | (153 | ) | |||||||||||||||||||||||||
Balance September 30, 2014 | $ | 1,143 | $ | 3,673 | $ | 1,004 | $ | 5,820 | ||||||||||||||||||||||||
Balance December 31, 2015 | $ | 1,062 | $ | 3,580 | $ | 831 | $ | 5,473 |
Accounts Receivable | Notes Receivable | Lease-Related Receivables | Total | |||||||||||||
Balance April 1, 2014 | $ | 1,364 | $ | 3,364 | $ | 1,024 | $ | 5,752 | ||||||||
Provision for credit losses | 69 | 244 | 39 | 352 | ||||||||||||
Write-offs and other | (228 | ) | - | (31 | ) | (259 | ) | |||||||||
Balance December 31, 2014 | $ | 1,205 | $ | 3,608 | $ | 1,032 | $ | 5,845 |
September 30, 2015 | March 31, 2015 | December 31, 2015 | March 31, 2015 | |||||||||||||||||||||||||||||
Notes Receivable | Lease- Related Receivables | Notes Receivable | Lease- Related Receivables | Notes Receivable | Lease- Related Receivables | Notes Receivable | Lease- Related Receivables | |||||||||||||||||||||||||
Reserves for credit losses: | ||||||||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 384 | $ | 725 | $ | 440 | $ | 740 | $ | 427 | $ | 708 | $ | 440 | $ | 740 | ||||||||||||||||
Ending balance: individually evaluated for impairment | 3,200 | 123 | 3,133 | 141 | 3,153 | 123 | 3,133 | 141 | ||||||||||||||||||||||||
Ending balance | $ | 3,584 | $ | 848 | $ | 3,573 | $ | 881 | $ | 3,580 | $ | 831 | $ | 3,573 | $ | 881 | ||||||||||||||||
Minimum payments: | ||||||||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 58,035 | $ | 67,096 | $ | 56,525 | $ | 66,255 | $ | 53,109 | $ | 74,409 | $ | 56,525 | $ | 66,255 | ||||||||||||||||
Ending balance: individually evaluated for impairment | 3,520 | 142 | 3,418 | 160 | 3,202 | 142 | 3,418 | 160 | ||||||||||||||||||||||||
Ending balance | $ | 61,555 | $ | 67,238 | $ | 59,943 | $ | 66,415 | $ | 56,311 | $ | 74,551 | $ | 59,943 | $ | 66,415 |
31-60 Days Past Due | 61-90 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Current | Unbilled Minimum Lease Payments | Total Minimum Lease Payments | Unearned Income | Non- Recourse Notes Payable | Net Credit Exposure | 31-60 Days Past Due | 61-90 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Current | Unbilled Minimum Lease Payments | Total Minimum Lease Payments | Unearned Income | Non- Recourse Notes Payable | Net Credit Exposure | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2015 | December 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
High CQR | $ | 131 | $ | 83 | $ | 186 | $ | 400 | $ | 193 | $ | 47,143 | $ | 47,736 | $ | (2,744 | ) | $ | (10,664 | ) | $ | 34,328 | $ | 175 | $ | 78 | $ | 422 | $ | 675 | $ | 935 | $ | 54,323 | $ | 55,933 | $ | (3,664 | ) | $ | (23,362 | ) | $ | 28,907 | ||||||||||||||||||||||||||||||||||||
Average CQR | 3 | - | 102 | 105 | 64 | 19,191 | 19,360 | (1,454 | ) | (6,077 | ) | 11,829 | 50 | 13 | 66 | 129 | 79 | 18,268 | 18,476 | (1,394 | ) | (6,566 | ) | 10,516 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Low CQR | - | - | 142 | 142 | - | - | 142 | (19 | ) | - | 123 | - | - | 142 | 142 | - | - | 142 | (19 | ) | - | 123 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 134 | $ | 83 | $ | 430 | $ | 647 | $ | 257 | $ | 66,334 | $ | 67,238 | $ | (4,217 | ) | $ | (16,741 | ) | $ | 46,280 | $ | 225 | $ | 91 | $ | 630 | $ | 946 | $ | 1,014 | $ | 72,591 | $ | 74,551 | $ | (5,077 | ) | $ | (29,928 | ) | $ | 39,546 | ||||||||||||||||||||||||||||||||||||
March 31, 2015 | March 31, 2015 | March 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
High CQR | $ | 70 | $ | 185 | $ | 133 | $ | 388 | $ | 430 | $ | 41,213 | $ | 42,031 | $ | (2,340 | ) | $ | (16,561 | ) | $ | 23,130 | $ | 70 | $ | 185 | $ | 133 | $ | 388 | $ | 430 | $ | 41,213 | $ | 42,031 | $ | (2,340 | ) | $ | (16,561 | ) | $ | 23,130 | ||||||||||||||||||||||||||||||||||||
Average CQR | 15 | 68 | 19 | 102 | 75 | 24,047 | 24,224 | (1,742 | ) | (9,397 | ) | 13,085 | 15 | 68 | 19 | 102 | 75 | 24,047 | 24,224 | (1,742 | ) | (9,397 | ) | 13,085 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Low CQR | - | - | - | - | - | 160 | 160 | (19 | ) | - | 141 | - | - | - | - | - | 160 | 160 | (19 | ) | - | 141 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 85 | $ | 253 | $ | 152 | $ | 490 | $ | 505 | $ | 65,420 | $ | 66,415 | $ | (4,101 | ) | $ | (25,958 | ) | $ | 36,356 | $ | 85 | $ | 253 | $ | 152 | $ | 490 | $ | 505 | $ | 65,420 | $ | 66,415 | $ | (4,101 | ) | $ | (25,958 | ) | $ | 36,356 |
31-60 Days Past Due | 61-90 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Current | Unbilled Notes Receivable | Total Notes Receivable | Non- Recourse Notes Payable | Net Credit Exposure | 31-60 Days Past Due | 61-90 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Current | Unbilled Notes Receivable | Total Notes Receivable | Non- Recourse Notes Payable | Net Credit Exposure | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2015 | December 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
High CQR | $ | - | $ | 5 | $ | 174 | $ | 179 | $ | 34 | $ | 44,843 | $ | 45,056 | $ | (25,890 | ) | $ | 19,166 | $ | 837 | $ | 585 | $ | 2,253 | $ | 3,675 | $ | 252 | $ | 30,416 | $ | 34,343 | $ | (20,690 | ) | $ | 13,653 | ||||||||||||||||||||||||||||||||||
Average CQR | 6 | 6 | 118 | 130 | 202 | 12,647 | 12,979 | (7,763 | ) | 5,216 | 265 | - | 174 | 439 | 97 | 18,230 | 18,766 | (11,536 | ) | 7,230 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Low CQR | - | - | 3,520 | 3,520 | - | - | 3,520 | - | 3,520 | - | - | 3,102 | 3,102 | - | 100 | 3,202 | - | 3,202 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 6 | $ | 11 | $ | 3,812 | $ | 3,829 | $ | 236 | $ | 57,490 | $ | 61,555 | $ | (33,653 | ) | $ | 27,902 | $ | 1,102 | $ | 585 | $ | 5,529 | $ | 7,216 | $ | 349 | $ | 48,746 | $ | 56,311 | $ | (32,226 | ) | $ | 24,085 | ||||||||||||||||||||||||||||||||||
March 31, 2015 | March 31, 2015 | March 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
High CQR | $ | 338 | $ | 260 | $ | 161 | $ | 759 | $ | 2,455 | $ | 35,996 | $ | 39,210 | $ | (18,255 | ) | $ | 20,955 | $ | 338 | $ | 260 | $ | 161 | $ | 759 | $ | 2,455 | $ | 35,996 | $ | 39,210 | $ | (18,255 | ) | $ | 20,955 | ||||||||||||||||||||||||||||||||||
Average CQR | 57 | - | - | 57 | 376 | 16,882 | 17,315 | (11,665 | ) | 5,650 | 57 | - | - | 57 | 376 | 16,882 | 17,315 | (11,665 | ) | 5,650 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Low CQR | - | - | 656 | 656 | - | 2,762 | 3,418 | - | 3,418 | - | - | 656 | 656 | - | 2,762 | 3,418 | - | 3,418 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 395 | $ | 260 | $ | 817 | $ | 1,472 | $ | 2,831 | $ | 55,640 | $ | 59,943 | $ | (29,920 | ) | $ | 30,023 | $ | 395 | $ | 260 | $ | 817 | $ | 1,472 | $ | 2,831 | $ | 55,640 | $ | 59,943 | $ | (29,920 | ) | $ | 30,023 |
5. | PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES |
September 30, 2015 | March 31, 2015 | December 31, 2015 | March 31, 2015 | |||||||||||||
Other current assets: | ||||||||||||||||
Deposits & funds held in escrow | $ | 916 | $ | 4,281 | $ | 565 | $ | 4,281 | ||||||||
Prepaid assets | 3,120 | 2,652 | 3,165 | 2,652 | ||||||||||||
Other | 682 | 480 | 4,468 | 480 | ||||||||||||
Total other current assets | $ | 4,718 | $ | 7,413 | $ | 8,198 | $ | 7,413 | ||||||||
Other assets: | ||||||||||||||||
Deferred costs | $ | 2,302 | $ | 2,308 | $ | 2,155 | $ | 2,308 | ||||||||
Property and equipment, net | 5,957 | 6,127 | 6,160 | 6,127 | ||||||||||||
Other | 710 | 1,045 | 674 | 813 | ||||||||||||
Total other assets - long term | $ | 8,969 | $ | 9,480 | $ | 8,989 | $ | 9,248 | ||||||||
September 30, 2015 | March 31, 2015 | |||||||||||||||
Other current liabilities: | ||||||||||||||||
Accrued expenses | $ | 6,590 | $ | 5,302 | ||||||||||||
Deferred compensation | - | 222 | ||||||||||||||
Other | 9,886 | 8,051 | ||||||||||||||
Total other current liabilities | $ | 16,476 | $ | 13,575 | ||||||||||||
Other liabilities: | ||||||||||||||||
Deferred revenue | $ | 2,382 | $ | 2,923 | ||||||||||||
Other | 895 | 890 | ||||||||||||||
Total other liabilities - long term | $ | 3,277 | $ | 3,813 |
December 31, 2015 | March 31, 2015 | |||||||
Other current liabilities: | ||||||||
Accrued expenses | $ | 5,244 | $ | 5,302 | ||||
Deferred compensation | - | 222 | ||||||
Other | 8,255 | 8,051 | ||||||
Total other current liabilities | $ | 13,499 | $ | 13,575 | ||||
Other liabilities: | ||||||||
Deferred revenue | $ | 2,049 | $ | 2,923 | ||||
Other | 384 | 890 | ||||||
Total other liabilities - long term | $ | 2,433 | $ | 3,813 |
6. | NOTES PAYABLE AND CREDIT FACILITY |
September 30, 2015 | March 31, 2015 | December 31, 2015 | March 31, 2015 | |||||||||||||
Recourse notes payable with interest rates ranging from 2.24% and 4.13% at September 30, 2015 and ranging from 2.24% and 4.13% at March 31, 2015. | ||||||||||||||||
Recourse notes payable with interest rates ranging from 2.70% and 5.00% at December 31, 2015 and ranging from 2.24% and 4.13% at March 31, 2015. | ||||||||||||||||
Current | $ | 1,204 | $ | 889 | $ | 2,327 | $ | 889 | ||||||||
Long-term | 2,815 | 2,801 | 1,782 | 2,801 | ||||||||||||
Total recourse notes payable | $ | 4,019 | $ | 3,690 | $ | 4,109 | $ | 3,690 | ||||||||
Non-recourse notes payable secured by financing receivables and investments in operating leases with interest rates ranging from 1.70% to 7.50% at September 30, 2015 and ranging from 1.70% to 10.00% as of March 31, 2015. | ||||||||||||||||
Non-recourse notes payable secured by financing receivables and investments in operating leases with interest rates ranging from 1.70% to 7.50% at December 31, 2015 and ranging from 1.70% to 10.00% as of March 31, 2015. | ||||||||||||||||
Current | $ | 28,137 | $ | 28,560 | $ | 34,800 | $ | 28,560 | ||||||||
Long-term | 10,510 | 24,314 | 10,656 | 24,314 | ||||||||||||
Total non-recourse notes payable | $ | 38,647 | $ | 52,874 | $ | 45,456 | $ | 52,874 |
7. | COMMITMENTS AND CONTINGENCIES |
8. | EARNINGS PER SHARE |
Three months ended September 30, | Six months ended September 30, | Three months ended December 31, | Nine months ended December 31, | |||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||
Basic and diluted common shares outstanding: | ||||||||||||||||||||||||||||||||
Weighted average common shares outstanding — basic | 7,274 | 7,320 | 7,249 | 7,412 | 7,280 | 7,230 | 7,260 | 7,351 | ||||||||||||||||||||||||
Effect of dilutive shares | 23 | 25 | 61 | 49 | 49 | 49 | 76 | 62 | ||||||||||||||||||||||||
Weighted average shares common outstanding — diluted | 7,297 | 7,345 | 7,310 | 7,461 | 7,329 | 7,279 | 7,336 | 7,413 | ||||||||||||||||||||||||
Calculation of earnings per common share - basic: | ||||||||||||||||||||||||||||||||
Net earnings | $ | 15,679 | $ | 11,952 | $ | 24,493 | $ | 21,429 | $ | 10,297 | $ | 15,501 | $ | 34,790 | $ | 36,930 | ||||||||||||||||
Net earnings attributable to participating securities | - | - | - | 55 | - | - | - | 63 | ||||||||||||||||||||||||
Net earnings attributable to common shareholders | $ | 15,679 | $ | 11,952 | $ | 24,493 | $ | 21,374 | $ | 10,297 | $ | 15,501 | $ | 34,790 | $ | 36,867 | ||||||||||||||||
Earnings per common share - basic | $ | 2.16 | $ | 1.63 | $ | 3.38 | $ | 2.88 | $ | 1.41 | $ | 2.14 | $ | 4.79 | $ | 5.02 | ||||||||||||||||
Calculation of earnings per common share - diluted: | ||||||||||||||||||||||||||||||||
Net earnings attributable to common shareholders— basic | $ | 15,679 | $ | 11,952 | $ | 24,493 | $ | 21,374 | $ | 10,297 | $ | 15,501 | $ | 34,790 | $ | 36,867 | ||||||||||||||||
Add: undistributed earnings attributable to participating securities | - | - | - | 1 | - | - | - | 1 | ||||||||||||||||||||||||
Net earnings attributable to common shareholders— diluted | $ | 15,679 | $ | 11,952 | $ | 24,493 | $ | 21,375 | $ | 10,297 | $ | 15,501 | $ | 34,790 | $ | 36,868 | ||||||||||||||||
Earnings per common share - diluted | $ | 2.15 | $ | 1.63 | $ | 3.35 | $ | 2.86 | $ | 1.40 | $ | 2.13 | $ | 4.74 | $ | 4.97 |
9. | STOCKHOLDERS’ EQUITY |
10. | SHARE-BASED COMPENSATION |
Number of Shares | Weighted Average Grant- date Fair Value | Number of Shares | Weighted Average Grant- date Fair Value | |||||||||||||
Nonvested April 1, 2015 | 176,514 | $ | 52.75 | 176,514 | $ | 52.75 | ||||||||||
Granted | 125,125 | $ | 81.76 | 125,357 | $ | 81.76 | ||||||||||
Vested | (94,625 | ) | $ | 48.75 | (95,321 | ) | $ | 48.79 | ||||||||
Forfeited | (2,321 | ) | $ | 64.06 | (2,321 | ) | $ | 64.06 | ||||||||
Nonvested September 30, 2015 | 204,693 | $ | 72.21 | |||||||||||||
Nonvested December 31, 2015 | 204,229 | $ | 72.28 |
11. | INCOME TAXES |
12. | FAIR VALUE OF FINANCIAL INSTRUMENTS |
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) | Recorded Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
September 30, 2015: | ||||||||||||||||||||||||||||||||
December 31, 2015: | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Money market funds | $ | 39,504 | $ | 39,504 | $ | - | $ | - | $ | 9,505 | $ | 9,505 | $ | - | $ | - | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Contingent consideration | $ | 2,145 | $ | - | $ | - | $ | 2,145 | $ | 990 | $ | - | $ | - | $ | 990 |
Fair Value Measurement Using | Fair Value Measurement Using | |||||||||||||||||||||||||||||||
Recorded Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable I nputs (Level 2) | Significant Unobservable Inputs (Level 3) | 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, 2015: | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Money market funds | $ | 25,004 | $ | 25,004 | $ | - | $ | - | $ | 25,004 | $ | 25,004 | $ | - | $ | - | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Contingent consideration | $ | 1,830 | $ | - | $ | - | $ | 1,830 | $ | 1,830 | $ | - | $ | - | $ | 1,830 |
13. | SEGMENT REPORTING |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2015 | September 30, 2014 | December 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Technology | Financing | Total | Technology | Financing | Total | Technology | Financing | Total | Technology | Financing | Total | |||||||||||||||||||||||||||||||||||||
Sales of product and services | $ | 324,259 | $ | - | $ | 324,259 | $ | 286,584 | $ | - | $ | 286,584 | $ | 287,859 | $ | - | $ | 287,859 | $ | 295,679 | $ | - | $ | 295,679 | ||||||||||||||||||||||||
Financing revenue | - | 10,279 | 10,279 | - | 9,059 | 9,059 | - | 9,289 | 9,289 | - | 8,406 | 8,406 | ||||||||||||||||||||||||||||||||||||
Fee and other income | 1,721 | 27 | 1,748 | 1,782 | 47 | 1,829 | 1,506 | (10 | ) | 1,496 | 2,140 | 16 | 2,156 | |||||||||||||||||||||||||||||||||||
Net sales | 325,980 | 10,306 | 336,286 | 288,366 | 9,106 | 297,472 | 289,365 | 9,279 | 298,644 | 297,819 | 8,422 | 306,241 | ||||||||||||||||||||||||||||||||||||
Cost of sales, product and services | 261,208 | - | 261,208 | 230,742 | - | 230,742 | 231,503 | - | 231,503 | 238,202 | - | 238,202 | ||||||||||||||||||||||||||||||||||||
Direct lease costs | - | 3,157 | 3,157 | - | 2,806 | 2,806 | - | 3,081 | 3,081 | - | 2,601 | 2,601 | ||||||||||||||||||||||||||||||||||||
Cost of sales | 261,208 | 3,157 | 264,365 | 230,742 | 2,806 | 233,548 | 231,503 | 3,081 | 234,584 | 238,202 | 2,601 | 240,803 | ||||||||||||||||||||||||||||||||||||
Professional and other fees | 1,305 | 208 | 1,513 | 1,321 | 256 | 1,577 | 1,608 | 274 | 1,882 | 1,158 | 278 | 1,436 | ||||||||||||||||||||||||||||||||||||
Salaries and benefits | 33,476 | 2,264 | 35,740 | 31,963 | 2,289 | 34,252 | 35,043 | 2,329 | 37,372 | 33,507 | 2,125 | 35,632 | ||||||||||||||||||||||||||||||||||||
General and administrative expenses | 7,322 | 263 | 7,585 | 6,703 | 455 | 7,158 | 6,530 | 235 | 6,765 | 6,918 | 315 | 7,233 | ||||||||||||||||||||||||||||||||||||
Interest and financing costs | 22 | 400 | 422 | 19 | 592 | 611 | 10 | 386 | 396 | 19 | 556 | 575 | ||||||||||||||||||||||||||||||||||||
Operating expenses | 42,125 | 3,135 | 45,260 | 40,006 | 3,592 | 43,598 | 43,191 | 3,224 | 46,415 | 41,602 | 3,274 | 44,876 | ||||||||||||||||||||||||||||||||||||
Operating income | 14,671 | 2,974 | 17,645 | 18,015 | 2,547 | 20,562 | ||||||||||||||||||||||||||||||||||||||||||
Other income | - | - | - | - | 6,169 | 6,169 | ||||||||||||||||||||||||||||||||||||||||||
Earnings before provision for income taxes | $ | 22,647 | $ | 4,014 | $ | 26,661 | $ | 17,618 | $ | 2,708 | $ | 20,326 | $ | 14,671 | $ | 2,974 | $ | 17,645 | $ | 18,015 | $ | 8,716 | $ | 26,731 | ||||||||||||||||||||||||
Depreciation and amortization | $ | 1,229 | $ | 3,039 | $ | 4,268 | $ | 1,081 | $ | 2,709 | $ | 3,790 | $ | 1,327 | $ | 3,078 | $ | 4,405 | $ | 1,244 | $ | 2,566 | $ | 3,810 | ||||||||||||||||||||||||
Purchases of property, equipment and operating lease equipment | $ | 576 | $ | 8,118 | $ | 8,694 | $ | 744 | $ | 706 | $ | 1,450 | $ | 506 | $ | 884 | $ | 1,390 | $ | 1,846 | $ | 3,774 | $ | 5,620 | ||||||||||||||||||||||||
Total assets | $ | 379,378 | $ | 211,109 | $ | 590,487 | $ | 341,893 | $ | 222,553 | $ | 564,446 | $ | 401,422 | $ | 229,012 | $ | 630,434 | $ | 366,740 | $ | 224,625 | $ | 591,365 |
Six Months Ended | ||||||||||||||||||||||||
September 30, 2015 | September 30, 2014 | |||||||||||||||||||||||
Technology | Financing | Total | Technology | Financing | Total | |||||||||||||||||||
Sales of product and services | $ | 583,955 | $ | - | $ | 583,955 | $ | 547,940 | $ | - | $ | 547,940 | ||||||||||||
Financing revenue | - | 18,625 | 18,625 | - | 17,933 | 17,933 | ||||||||||||||||||
Fee and other income | 3,532 | 40 | 3,572 | 3,829 | 74 | 3,903 | ||||||||||||||||||
Net sales | 587,487 | 18,665 | 606,152 | 551,769 | 18,007 | 569,776 | ||||||||||||||||||
Cost of sales, product and services | 468,926 | - | 468,926 | 443,650 | - | 443,650 | ||||||||||||||||||
Direct lease costs | - | 6,175 | 6,175 | - | 5,763 | 5,763 | ||||||||||||||||||
Cost of sales | 468,926 | 6,175 | 475,101 | 443,650 | 5,763 | 449,413 | ||||||||||||||||||
Professional and other fees | 2,567 | 464 | 3,031 | 2,907 | 503 | 3,410 | ||||||||||||||||||
Salaries and benefits | 66,428 | 4,526 | 70,954 | 62,633 | 4,566 | 67,199 | ||||||||||||||||||
General and administrative expenses | 13,851 | 513 | 14,364 | 12,461 | 970 | 13,431 | ||||||||||||||||||
Interest and financing costs | 41 | 934 | 975 | 58 | 1,197 | 1,255 | ||||||||||||||||||
Operating expenses | 82,887 | 6,437 | 89,324 | 78,059 | 7,236 | 85,295 | ||||||||||||||||||
Operating income | 35,674 | 6,053 | 41,727 | 30,060 | 5,008 | 35,068 | ||||||||||||||||||
Other income | - | - | - | - | 1,434 | 1,434 | ||||||||||||||||||
Earnings before provision for income taxes | $ | 35,674 | $ | 6,053 | $ | 41,727 | $ | 30,060 | $ | 6,442 | $ | 36,502 | ||||||||||||
Depreciation and amortization | $ | 2,466 | $ | 6,037 | $ | 8,503 | $ | 1,975 | $ | 5,656 | $ | 7,631 | ||||||||||||
Purchases of property, equipment and operating lease equipment | $ | 1,194 | $ | 14,424 | $ | 15,618 | $ | 1,086 | $ | 833 | $ | 1,919 | ||||||||||||
Total assets | $ | 379,378 | $ | 211,109 | $ | 590,487 | $ | 341,893 | $ | 222,553 | $ | 564,446 |
Nine Months Ended | ||||||||||||||||||||||||
December 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Technology | Financing | Total | Technology | Financing | Total | |||||||||||||||||||
Sales of product and services | $ | 871,814 | $ | - | $ | 871,814 | $ | 843,619 | $ | - | $ | 843,619 | ||||||||||||
Financing revenue | - | 27,914 | 27,914 | - | 26,339 | 26,339 | ||||||||||||||||||
Fee and other income | 5,038 | 30 | 5,068 | 5,969 | 90 | 6,059 | ||||||||||||||||||
Net sales | 876,852 | 27,944 | 904,796 | 849,588 | 26,429 | 876,017 | ||||||||||||||||||
Cost of sales, product and services | 700,429 | - | 700,429 | 681,852 | - | 681,852 | ||||||||||||||||||
Direct lease costs | - | 9,256 | 9,256 | - | 8,364 | 8,364 | ||||||||||||||||||
Cost of sales | 700,429 | 9,256 | 709,685 | 681,852 | 8,364 | 690,216 | ||||||||||||||||||
Professional and other fees | 4,175 | 738 | 4,913 | 4,065 | 781 | 4,846 | ||||||||||||||||||
Salaries and benefits | 101,471 | 6,855 | 108,326 | 96,140 | 6,691 | 102,831 | ||||||||||||||||||
General and administrative expenses | 20,381 | 748 | 21,129 | 19,379 | 1,285 | 20,664 | ||||||||||||||||||
Interest and financing costs | 51 | 1,320 | 1,371 | 77 | 1,753 | 1,830 | ||||||||||||||||||
Operating expenses | 126,078 | 9,661 | 135,739 | 119,661 | 10,510 | 130,171 | ||||||||||||||||||
Operating income | 50,345 | 9,027 | 59,372 | 48,075 | 7,555 | 55,630 | ||||||||||||||||||
Other income | - | - | - | - | 7,603 | 7,603 | ||||||||||||||||||
Earnings before provision for income taxes | $ | 50,345 | $ | 9,027 | $ | 59,372 | $ | 48,075 | $ | 15,158 | $ | 63,233 | ||||||||||||
Depreciation and amortization | $ | 3,728 | $ | 9,243 | $ | 12,971 | $ | 3,219 | $ | 8,222 | $ | 11,441 | ||||||||||||
Purchases of property, equipment and operating lease equipment | $ | 1,700 | $ | 15,308 | $ | 17,008 | $ | 2,932 | $ | 4,639 | $ | 7,571 | ||||||||||||
Total assets | $ | 401,422 | $ | 229,012 | $ | 630,434 | $ | 366,740 | $ | 224,625 | $ | 591,365 |
14. | BUSINESS COMBINATIONS |
Three Months Ended September 30, | Six Months Ended September 30, | Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | Change | 2015 | 2014 | Change | 2015 | 2014 | Change | 2015 | 2014 | Change | |||||||||||||||||||||||||||||||||||||
Gross margin | 21.4 | % | 21.5 | % | (10 bps) | 21.6 | % | 21.1 | % | 50 bps | 21.5 | % | 21.4 | % | 10 bps | 21.6 | % | 21.2 | % | 40 bps | ||||||||||||||||||||||||||||
Gross margin, product and services | 19.4 | % | 19.5 | % | (10 bps) | 19.7 | % | 19.0 | % | 70 bps | 19.6 | % | 19.4 | % | 20 bps | 19.7 | % | 19.2 | % | 50 bps | ||||||||||||||||||||||||||||
Operating income margin | 7.9 | % | 6.8 | % | 110 bps | 6.9 | % | 6.2 | % | 70 bps | 5.9 | % | 6.7 | % | (80 bps) | 6.6 | % | 6.4 | % | 20 bps | ||||||||||||||||||||||||||||
Non-GAAP gross sales of product and services (1) | $ | 431,096 | $ | 392,238 | 9.9 | % | $ | 763,404 | $ | 717,696 | 6.4 | % | $ | 393,922 | $ | 377,262 | 4.4 | % | $ | 1,157,327 | $ | 1,094,958 | 5.7 | % | ||||||||||||||||||||||||
Non-GAAP gross cost of sales, product and services (1) | $ | 368,045 | $ | 336,396 | 9.4 | % | $ | 648,375 | $ | 613,406 | 5.7 | % | $ | 337,566 | $ | 319,785 | 5.6 | % | $ | 985,942 | $ | 933,191 | 5.7 | % | ||||||||||||||||||||||||
Adjusted EBITDA (2) | $ | 27,861 | $ | 21,376 | 30.3 | % | $ | 44,135 | $ | 36,989 | 19.3 | % | $ | 18,976 | $ | 21,779 | (12.9 | %) | $ | 63,111 | $ | 58,768 | 7.4 | % | ||||||||||||||||||||||||
Adjusted EBITDA margin (2) | 8.3 | % | 7.2 | % | 110 bps | 7.3 | % | 6.5 | % | 80 bps | 6.4 | % | 7.1 | % | (70 bps) | 7.0 | % | 6.7 | % | 30 bps | ||||||||||||||||||||||||||||
Purchases of property and equipment used internally | $ | 576 | $ | 744 | $ | (168 | ) | $ | 1,194 | $ | 1,086 | $ | 108 | $ | 504 | $ | 1,846 | $ | (1,342 | ) | $ | 1,698 | $ | 2,932 | $ | (1,234 | ) | |||||||||||||||||||||
Purchases of equipment under operating leases | 8,118 | 706 | 7,412 | 14,424 | 833 | 13,591 | 5,328 | 3,774 | 1,554 | 19,752 | 4,639 | 15,113 | ||||||||||||||||||||||||||||||||||||
Total capital expenditures | $ | 8,694 | $ | 1,450 | $ | 7,244 | $ | 15,618 | $ | 1,919 | $ | 13,699 | $ | 5,832 | $ | 5,620 | $ | 212 | $ | 21,450 | $ | 7,571 | $ | 13,879 |
(1) | We define non-GAAP gross sales of product and services as our sales of product and services calculated in accordance with GAAP, adjusted to exclude the costs incurred related to sales of third party software assurance, maintenance and services. We define non-GAAP gross cost of sales, product and services as our cost of sales, product and services calculated in accordance with GAAP, adjusted to include the costs incurred related to sales of third party software assurance, maintenance and services. We provide below a reconciliation of non-GAAP gross sales of product and services to sales of product and services, which is the most |
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Sales of products and services | $ | 287,859 | $ | 295,679 | $ | 871,814 | $ | 843,619 | ||||||||
Costs incurred related to sales of third party software assurance, maintenance and services | �� | 106,063 | $ | 81,583 | 285,513 | $ | 251,339 | |||||||||
Non-GAAP gross sales of products and services | $ | 393,922 | $ | 377,262 | $ | 1,157,327 | $ | 1,094,958 | ||||||||
Cost of sales, product and services | $ | 231,503 | $ | 238,202 | $ | 700,429 | $ | 681,852 | ||||||||
Costs incurred related to sales of third party software assurance, maintenance and services | 106,063 | 81,583 | 285,513 | 251,339 | ||||||||||||
Non-GAAP gross cost of sales, product and services | $ | 337,566 | $ | 319,785 | $ | 985,942 | $ | 933,191 |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Sales of products and services | $ | 324,259 | $ | 286,584 | $ | 583,955 | $ | 547,940 | ||||||||
Costs incurred related to sales of third party software assurance, maintenance and services | 106,837 | 105,654 | 179,449 | 169,756 | ||||||||||||
Non-GAAP gross sales of products and services | $ | 431,096 | $ | 392,238 | $ | 763,404 | $ | 717,696 | ||||||||
Cost of sales, product and services | $ | 261,208 | $ | 230,742 | $ | 468,926 | $ | 443,650 | ||||||||
Costs incurred related to sales of third party software assurance, maintenance and services | 106,837 | 105,654 | 179,449 | 169,756 | ||||||||||||
Non-GAAP gross cost of sales, product and services | $ | 368,045 | $ | 336,396 | $ | 648,375 | $ | 613,406 |
(2) | We define Adjusted EBITDA as net earnings calculated in accordance with GAAP, adjusted for the following: interest expense, depreciation and amortization, provision for income taxes, and other income. We consider the interest on notes payable from our financing segment and depreciation expense presented within cost of sales, which includes depreciation on assets financed as operating leases, to be operating expenses. As such, they are not included in the amounts added back to net earnings in the Adjusted EBITDA calculation. We provide below a reconciliation of Adjusted EBITDA to net earnings, which is the most |
Three Months Ended September 30, | Six Months Ended September 30, | Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||
Net earnings | $ | 15,679 | $ | 11,952 | $ | 24,493 | $ | 21,429 | $ | 10,297 | $ | 15,501 | $ | 34,790 | $ | 36,930 | ||||||||||||||||
Provision for income taxes | 10,982 | 8,374 | 17,234 | 15,073 | 7,348 | 11,230 | 24,582 | 26,303 | ||||||||||||||||||||||||
Depreciation and amortization | 1,200 | 1,050 | 2,408 | 1,921 | 1,331 | 1,217 | 3,739 | 3,138 | ||||||||||||||||||||||||
Less: Other income | - | - | - | 1,434 | - | 6,169 | - | 7,603 | ||||||||||||||||||||||||
Adjusted EBITDA | $ | 27,861 | $ | 21,376 | $ | 44,135 | $ | 36,989 | $ | 18,976 | $ | 21,779 | $ | 63,111 | $ | 58,768 |
· | Portfolio income: Interest income from financing receivables and rents due under operating leases; |
· | Transactional gains: Net gains or losses on the sale of financial assets; and |
· | Post-contract earnings: Month-to-month rents; early termination, prepayment, make-whole, or buyout fees; and net gains on the sale of off-lease (used) equipment. |
Three Months Ended September 30, | Six Months Ended September 30, | Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | Change | 2015 | 2014 | Change | 2015 | 2014 | Change | 2015 | 2014 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales of product and services | $ | 324,259 | $ | 286,584 | $ | 37,675 | 13.1 | % | $ | 583,955 | $ | 547,940 | $ | 36,015 | 6.6 | % | $ | 287,859 | $ | 295,679 | $ | (7,820 | ) | (2.6 | %) | $ | 871,814 | $ | 843,619 | $ | 28,195 | 3.3 | % | |||||||||||||||||||||||||||||||
Fee and other income | 1,721 | 1,782 | (61 | ) | (3.4 | %) | 3,532 | 3,829 | (297 | ) | (7.8 | %) | 1,506 | 2,140 | (634 | ) | (29.6 | %) | 5,038 | 5,969 | (931 | ) | (15.6 | %) | ||||||||||||||||||||||||||||||||||||||||
Net sales | 325,980 | 288,366 | 37,614 | 13.0 | % | 587,487 | 551,769 | 35,718 | 6.5 | % | 289,365 | 297,819 | (8,454 | ) | (2.8 | %) | 876,852 | 849,588 | 27,264 | 3.2 | % | |||||||||||||||||||||||||||||||||||||||||||
Cost of sales, product and services | 261,208 | 230,742 | 30,466 | 13.2 | % | 468,926 | 443,650 | 25,276 | 5.7 | % | 231,503 | 238,202 | (6,699 | ) | (2.8 | %) | 700,429 | 681,852 | 18,577 | 2.7 | % | |||||||||||||||||||||||||||||||||||||||||||
Gross profit | 64,772 | 57,624 | 7,148 | 12.4 | % | 118,561 | 108,119 | 10,442 | 9.7 | % | 57,862 | 59,617 | (1,755 | ) | (2.9 | %) | 176,423 | 167,736 | 8,687 | 5.2 | % | |||||||||||||||||||||||||||||||||||||||||||
Professional and other fees | 1,305 | 1,321 | (16 | ) | (1.2 | %) | 2,567 | 2,907 | (340 | ) | (11.7 | %) | 1,608 | 1,158 | 450 | 38.9 | % | 4,175 | 4,065 | 110 | 2.7 | % | ||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | 33,476 | 31,963 | 1,513 | 4.7 | % | 66,428 | 62,633 | 3,795 | 6.1 | % | 35,043 | 33,507 | 1,536 | 4.6 | % | 101,471 | 96,140 | 5,331 | 5.5 | % | ||||||||||||||||||||||||||||||||||||||||||||
General and administrative | 7,322 | 6,703 | 619 | 9.2 | % | 13,851 | 12,461 | 1,390 | 11.2 | % | 6,530 | 6,918 | (388 | ) | (5.6 | %) | 20,381 | 19,379 | 1,002 | 5.2 | % | |||||||||||||||||||||||||||||||||||||||||||
Interest and financing costs | 22 | 19 | 3 | 15.8 | % | 41 | 58 | (17 | ) | (29.3 | %) | 10 | 19 | (9 | ) | (47.4 | %) | 51 | 77 | (26 | ) | (33.8 | %) | |||||||||||||||||||||||||||||||||||||||||
Operating expenses | 42,125 | 40,006 | 2,119 | 5.3 | % | 82,887 | 78,059 | 4,828 | 6.2 | % | 43,191 | 41,602 | 1,589 | 3.8 | % | 126,078 | 119,661 | 6,417 | 5.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
Segment earnings | $ | 22,647 | $ | 17,618 | $ | 5,029 | 28.5 | % | $ | 35,674 | $ | 30,060 | $ | 5,614 | 18.7 | % | $ | 14,671 | $ | 18,015 | $ | (3,344 | ) | (18.6 | %) | $ | 50,345 | $ | 48,075 | $ | 2,270 | 4.7 | % |
Quarter Ended | Sequential | Year over Year | ||||||
September 30, 2015 | 24.9 | % | 13.1 | % | ||||
June 30,2015 | 0.9 | % | (0.6 | %) | ||||
March 31, 2015 | (13.0 | %) | 3.2 | % | ||||
December 31, 2014 | 3.2 | % | 15.6 | % | ||||
September 30, 2014 | 9.7 | % | 9.7 | % |
Quarter Ended | Sequential | Year over Year | ||||||
December 31, 2015 | (2.6 | %) | (11.2 | %) | ||||
September 30, 2015 | 24.9 | % | 13.1 | % | ||||
June 30,2015 | 0.9 | % | (0.6 | %) | ||||
March 31, 2015 | (13.0 | %) | 3.2 | % | ||||
December 31, 2014 | 3.2 | % | 15.6 | % |
Three Months Ended September 30, | Six Months Ended September 30, | Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | Change | 2015 | 2014 | Change | 2015 | 2014 | Change | 2015 | 2014 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing revenue | $ | 10,279 | $ | 9,059 | $ | 1,220 | 13.5 | % | $ | 18,625 | $ | 17,933 | $ | 692 | 3.9 | % | $ | 9,289 | $ | 8,406 | $ | 883 | 10.5 | % | $ | 27,914 | $ | 26,339 | $ | 1,575 | 6.0 | % | ||||||||||||||||||||||||||||||||
Fee and other income | 27 | 47 | (20 | ) | (42.6 | %) | 40 | 74 | (34 | ) | (45.9 | %) | (10 | ) | 16 | (26 | ) | (162.5 | %) | 30 | 90 | (60 | ) | (66.7 | %) | |||||||||||||||||||||||||||||||||||||||
Net sales | 10,306 | 9,106 | 1,200 | 13.2 | % | 18,665 | 18,007 | 658 | 3.7 | % | 9,279 | 8,422 | 857 | 10.2 | % | 27,944 | 26,429 | 1,515 | 5.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
Direct lease costs | 3,157 | 2,806 | 351 | 12.5 | % | 6,175 | 5,763 | 412 | 7.1 | % | 3,081 | 2,601 | 480 | 18.5 | % | 9,256 | 8,364 | 892 | 10.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 7,149 | 6,300 | 849 | 13.5 | % | 12,490 | 12,244 | 246 | 2.0 | % | 6,198 | 5,821 | 377 | 6.5 | % | 18,688 | 18,065 | 623 | 3.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
Professional and other fees | 208 | 256 | (48 | ) | (18.8 | %) | 464 | 503 | (39 | ) | (7.8 | %) | 274 | 278 | (4 | ) | (1.4 | %) | 738 | 781 | (43 | ) | (5.5 | %) | ||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | 2,264 | 2,289 | (25 | ) | (1.1 | %) | 4,526 | 4,566 | (40 | ) | (0.9 | %) | 2,329 | 2,125 | 204 | 9.6 | % | 6,855 | 6,691 | 164 | 2.5 | % | ||||||||||||||||||||||||||||||||||||||||||
General and administrative | 263 | 455 | (192 | ) | (42.2 | %) | 513 | 970 | (457 | ) | (47.1 | %) | 235 | 315 | (80 | ) | (25.4 | %) | 748 | 1,285 | (537 | ) | (41.8 | %) | ||||||||||||||||||||||||||||||||||||||||
Interest and financing costs | 400 | 592 | (192 | ) | (32.4 | %) | 934 | 1,197 | (263 | ) | (22.0 | %) | 386 | 556 | (170 | ) | (30.6 | %) | 1,320 | 1,753 | (433 | ) | (24.7 | %) | ||||||||||||||||||||||||||||||||||||||||
Operating expenses | 3,135 | 3,592 | (457 | ) | (12.7 | %) | 6,437 | 7,236 | (799 | ) | (11.0 | %) | 3,224 | 3,274 | (50 | ) | (1.5 | %) | 9,661 | 10,510 | (849 | ) | (8.1 | %) | ||||||||||||||||||||||||||||||||||||||||
Operating income | 4,014 | 2,708 | 1,306 | 48.2 | % | 6,053 | 5,008 | 1,045 | 20.9 | % | 2,974 | 2,547 | 427 | 16.8 | % | 9,027 | 7,555 | 1,472 | 19.5 | % | ||||||||||||||||||||||||||||||||||||||||||||
Other income | - | - | - | n/a | - | 1,434 | (1,434 | ) | n/a | - | 6,169 | (6,169 | ) | n/a | - | 7,603 | (7,603 | ) | n/a | |||||||||||||||||||||||||||||||||||||||||||||
Segment earnings | $ | 4,014 | $ | 2,708 | $ | 1,306 | 48.2 | % | $ | 6,053 | $ | 6,442 | $ | (389 | ) | (6.0 | %) | $ | 2,974 | $ | 8,716 | $ | (5,742 | ) | (65.9 | %) | $ | 9,027 | $ | 15,158 | $ | (6,131 | ) | (40.4 | %) |
Six Months Ended September 30, | Nine Months Ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net cash used in operating activities | $ | (22,660 | ) | $ | (10,995 | ) | $ | (18,876 | ) | $ | (9,930 | ) | ||||
Net cash used in investing activities | (27,924 | ) | (22,182 | ) | (44,344 | ) | (31,705 | ) | ||||||||
Net cash provided by financing activities | 37,284 | 15,948 | 53,638 | 13,002 | ||||||||||||
Effect of exchange rate changes on cash | (33 | ) | (9 | ) | (26 | ) | (24 | ) | ||||||||
Net Decrease in Cash and Cash Equivalents | $ | (13,333 | ) | $ | (17,238 | ) | $ | (9,608 | ) | $ | (28,657 | ) |
As of September 30, | As of December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Days sales outstanding (1) | 47 | 48 | 56 | 51 | ||||||||||||
Days inventory outstanding (2) | 6 | 8 | 6 | 7 | ||||||||||||
Days payable outstanding (3) | (41 | ) | (44 | ) | (42 | ) | (40 | ) | ||||||||
Cash conversion cycle | 12 | 12 | 20 | 18 |
(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 non-GAAP gross sales of product and services 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 non-GAAP gross cost of sales, product and services 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 non-GAAP gross cost of sales, product and services for the same three-month period. |
Maximum Credit Limit at December 31, 2015 | Balance as of December 31, 2015 | Maximum Credit Limit at March 31,2015 | Balance as of March 31, 2015 | |||||||||||
$ | 250,000 | $ | 127,999 | $ | 225,000 | $ | 99,418 |
Maximum Credit Limit at September 30, 2015 | Balance as of September 30, 2015 | Maximum Credit Limit at March 31,2015 | Balance as of March 31, 2015 | |||
$250,000 | $127,053 | $225,000 | $99,418 |
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 | 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, 2015 through April 30, 2015 | - | - | 351,960 | (2) | - | - | 351,960 | (2 | ) | |||||||||||||||||||||||||
May 1, 2015 through May 31, 2015 | - | - | 351,960 | (3) | - | - | 351,960 | (3 | ) | |||||||||||||||||||||||||
June 1, 2015 through June 15, 2015 | 18,284 | $ | 82.63 | - | 351,960 | (4) | 18,284 | $ | 82.63 | - | 351,960 | (4 | ) | |||||||||||||||||||||
June 16, 2015 through August 16, 2015 | 12,163 | $ | 79.32 | - | - | (5) | 12,163 | $ | 79.32 | - | - | (5 | ) | |||||||||||||||||||||
August 17, 2015 through August 31, 2015 | - | n/a | - | 500,000 | (6) | - | n/a | - | 500,000 | (6 | ) | |||||||||||||||||||||||
September 1, 2015 through September 30, 2015 | - | n/a | - | 500,000 | (7) | - | n/a | - | 500,000 | (7 | ) | |||||||||||||||||||||||
October 1, 2015 through October 31, 2015 | - | n/a | - | 500,000 | (8 | ) | ||||||||||||||||||||||||||||
November 1, 2015 through November 30, 2015 | - | n/a | - | 500,000 | (9 | ) | ||||||||||||||||||||||||||||
December 1, 2015 through December 31, 2015 | - | n/a | - | 500,000 | (10 | ) |
(1) | All shares |
(2) | The share purchase authorization in place for the month ended April 30, 2015 had purchase limitations on the number of shares of up to 500,000 shares. As of April 30, 2015, the remaining authorized shares to be purchased were 351,960. |
(3) | The share purchase authorization in place for the month ended May 31, 2015 had purchase limitations on the number of shares of up to 500,000 shares. As of May 31, 2015, the remaining authorized shares to be purchased were 351,960. |
(4) | The share purchase authorization expired June 15, 2015 and had purchase limitations on the number of shares of up to 500,000 shares. As of June 15, 2015, the remaining number of authorized shares that could have been purchased was 351,960. |
(5) | There was no share purchase authorization plan in place from June 16, 2015 to August 16, 2015. The previous plan expired on June 15, 2015. |
(6) | On August 13, 2015, the board of directors authorized the company to repurchase up to 500,000 shares of its outstanding common stock commencing on August 17, 2015 through August 16, 2016. As of August 31, 2015, no stock purchases |
(7) | The share purchase authorization in place for the month ended September 30, 2015 had purchase limitations on the number of shares of up to 500,000 shares. As of September 30, 2015, no stock purchases |
(8) | The share purchase authorization in place for the month ended October 31, 2015 had purchase limitations on the number of shares of up to 500,000 shares. As of October 31, 2015, no stock purchases were made under this authorization. |
(9) | The share purchase authorization in place for the month ended November 30, 2015 had purchase limitations on the number of shares of up to 500,000 shares. As of November 30, 2015, no stock purchases were made under this authorization. |
(10) | The share purchase authorization in place for the month ended December 31, 2015 had purchase limitations on the number of shares of up to 500,000 shares. As of December 31, 2015, no stock purchases were made under this authorization. |
Certification of the Chief Executive Officer of ePlus inc. pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a). | |
Certification of the Chief Financial Officer of ePlus inc. pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a). | |
Certification of the Chief Executive Officer and Chief Financial Officer of ePlus inc. pursuant to 18 U.S.C. § 1350. | |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
ePlus inc. | |||
Date: | /s/ PHILLIP G. NORTON | ||
By: Phillip G. Norton, Chairman of the Board, | |||
President and Chief Executive Officer | |||
(Principal Executive Officer) | |||
Date: | /s/ ELAINE D. MARION | ||
By: Elaine D. Marion | |||
Chief Financial Officer | |||
(Principal Financial Officer) |