Exhibit 99.1
Contact:
Steve Mencarini, SVP
Chief Financial Officer
Tel: 703-810-2596
smencarini@eplus.com
For Release on 6/25/2003
ePLUS REPORTS RECORD ANNUAL
NET EARNINGS OF $9.7 MILLION
Record Annual and Quarterly EPS of $0.96 and $0.27 Reported
Conference Call Scheduled for Friday, June 27th at 11:00 A.M. EST
HERNDON, VA - June 25, 2003 - ePlus inc. (Nasdaq NM: PLUS - news), a leading
provider of Enterprise Cost Management (ECM) solutions, announced today record
net earnings of $9.7 million for its fiscal year ending March 31, 2003, a 9%
increase as compared to $8.9 million recorded the prior fiscal year. Fully
diluted earnings per share for the twelve-month period increased 12.9% to $0.96
as compared to $0.85 the prior period. Revenues increased 46.2% to $300 million
from $205 million the prior year. On March 31, 2003, weighted average diluted
shares outstanding were 10.1 million shares as compared to 10.5 million shares
the prior year. Actual shares issued and outstanding on March 31, 2003 were
9.5 million shares.
For the quarter ending March 31, 2003 net earnings increased 6.8% to $2.6
million from $2.4 million the prior year, and fully diluted earnings per share
increased 17.4% to $0.27 from $0.23. Revenues for the quarter increased 48.8% to
$72.5 million from $48.7 million for the fourth quarter of 2002.
"2003 was yet another year of record earnings, and our growth continues to
accelerate because we continue to anticipate the market and provide useful
solutions to our customers at the right cost. We believe we are well-positioned
to become a leading provider of business solutions for our customers and
targeted markets." said Phillip G. Norton, chairman, president and chief
executive officer.
The Company announced that Thomas L. Hewitt, a member of the board of directors,
has resigned due to a new obligation he has undertaken.
Investors are encouraged to read the company's Form 10-K for a complete
financial statement. Copies will be available at www.eplus.com, www.sec.gov, or
by contacting the company at info@eplus.com or (888) 482-1122.
Conference Call Scheduled for Friday, June 27th at 11:00 A.M. EST
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The Company will host a conference call at 11 a.m. EST on Friday, June 27, 2003.
To listen, please call (973) 339-3086 or toll-free (800) 683-1535. Ask to be
connected to the ePlus conference call. A live and archived webcast will also be
available. Link information can be found at www.eplus.com or in the company
press release dated June 24, 2003. A telephone replay of the conference call
will be available by calling (877) 519-4471 or (973) 341-3080, and entering the
passcode 4018702 beginning at about 2:00 P.M. on June 27th through July 11th.
About ePlus inc.
A leading provider of Enterprise Cost Management, ePlus provides a comprehensive
solution to reduce the costs of purchasing, owning, and financing goods and
services. ePlus Enterprise Cost Management (eECM) packages business process
outsourcing, eProcurement, asset management, supplier enablement, strategic
sourcing, and financial services into a single integrated solution, all based on
ePlus' leading business application software. Profitable since inception in
1990, the company is headquartered in Herndon, VA and has more than 30 locations
in the U.S. For more information, visit our website at www.eplus.com, call (888)
482-1122 or email to info@eplus.com.
ePlus (TM), ePlus Enterprise Cost Management, and eECM are trademarks or
trademarks applied for of ePlus inc.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release, which are not historical facts, may be
deemed to be "forward-looking statements". Actual and anticipated future results
may vary due to certain risks and uncertainties, including, without limitation,
the existence of demand for, and acceptance of, our services; our ability to
adapt our services to meet changes in market developments; the impact of
competition in our markets; the possibility of defects in our products or
catalog content data; our ability to hire and retain sufficient personnel; our
ability to protect our intellectual property; the creditworthiness of our
customers; our ability to raise capital and obtain non-recourse financing for
our transactions; our ability to realize our investment in leased equipment; our
ability to reserve adequately for credit losses; fluctuations in our operating
results; our reliance on our management team; and other risks or uncertainties
detailed in our Securities and Exchange Commission filings.
ePlus inc. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Year Ended March 31,
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2001 2002 2003
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REVENUES
Sales of equipment $ 216,183,181 $ 127,753,315 $ 219,208,998
Sales of leased equipment 34,031,381 9,353,088 6,095,830
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250,214,562 137,106,403 225,304,828
Lease revenues 42,693,839 48,850,017 50,520,293
Fee and other income 13,677,495 19,028,926 23,821,025
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56,371,334 67,878,943 74,341,318
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TOTAL REVENUES 306,585,896 204,985,346 299,646,146
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COSTS AND EXPENSES
Cost of sales, equipment 182,473,685 111,598,231 197,787,657
Cost of sales, leased equipment 33,329,403 9,043,932 5,891,789
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215,803,088 120,642,163 203,679,446
Direct lease costs 16,534,992 9,578,631 6,582,409
Professional and other fees 3,363,324 2,717,618 3,188,046
Salaries and benefits 30,610,437 32,797,303 46,181,745
General and administrative expenses 10,766,333 12,517,696 15,233,858
Interest and financing costs 15,522,897 11,810,414 8,308,382
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76,797,983 69,421,662 79,494,440
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TOTAL COSTS AND EXPENSES 292,601,071 190,063,825 283,173,886
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Earnings before provision for income taxes 13,984,825 14,921,521 16,472,260
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Provision for income taxes 5,666,625 6,009,798 6,759,551
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NET EARNINGS $ 8,318,200 $ 8,911,723 $ 9,712,709
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NET EARNINGS PER COMMON SHARE - BASIC $ 0.86 $ 0.87 $ 0.97
===============================================
NET EARNINGS PER COMMON SHARE - DILUTED $ 0.80 $ 0.85 $ 0.96
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WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 9,625,891 10,235,129 10,061,088
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 10,383,467 10,458,235 10,109,809
ePlus inc. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited) As of March 31, 2002 As of March 31, 2003
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ASSETS
Cash and cash equivalents $ 28,223,503 $ 27,784,090
Accounts receivable, net of allowance for doubtful
accounts of $3,719,207 and $3,346,055 as of
March 31, 2002 and 2003, respectively 41,466,362 38,384,841
Notes receivable 227,914 53,098
Inventories 871,857 1,373,168
Investment in leases and leased equipment - net 169,087,078 182,169,324
Property and equipment - net 6,144,061 5,249,087
Deferred tax asset 5,471,658 -
Other assets 5,419,813 4,779,946
Goodwill 22,083,308 19,147,132
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TOTAL ASSETS $ 278,995,554 $ 278,940,686
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LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Acounts payable - equipment $ 3,898,999 $ 5,635,776
Accounts payable - trade 15,104,985 25,914,385
Salaries and commissions payable 491,716 619,860
Accrued expenses and other liabilities 19,091,729 13,978,942
Income taxes payable 364,183 -
Recourse notes payable 4,659,982 2,736,298
Nonrecourse notes payable 129,095,051 115,678,353
Deferred tax liability - 4,760,029
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Total Liabilities 172,706,645 169,323,643
COMMITMENTS AND CONTINGENCIES (Note 8) - -
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value; 2,000,000 shares
authorized; none issued or outstanding - -
Common stock, $.01 par value; 50,000,000 authorized;
10,461,970 issued and 10,395,870 outstanding at March 31,
2002 and 10,540,135 issued and 9,451,651 outstanding at
March 31, 2003 $ 104,619 $ 105,400
Additional paid-in capital 62,414,067 62,905,727
Treasury stock, at cost, 66,100 and 1,088,484 shares,
respectively (574,800) (7,511,124)
Retained earnings 44,345,023 54,057,732
Accumulated other comprehensive income -
Foreign currency translation adjustment - 59,308
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Total Stockholders' Equity 106,288,909 109,617,043
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 278,995,554 $ 278,940,686
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