Exhibit 99.1
Investor Relations:
Kley Parkhurst, SVP
ePlus inc.
Tel: (703) 709-1924
kparkhurst@eplus.com
For Release on 11/15/2004
ePLUS REPORTS RECORD REVENUES FOR THE
QUARTER ENDED SEPTEMBER 30, 2004
Revenues Increase 80% to $154 Million
HERNDON, VA - November 15, 2004- ePlus inc. (Nasdaq NM: PLUS - news), a leading
provider of Enterprise Cost Management (ECM), today announced financial results
for its second quarter ended September 30, 2004. ePlus recorded net earnings of
$2.5 million, an 8% decrease as compared to $2.7 million during the same period
in the prior fiscal year. Total revenues increased 80% to $154 million from
$85.6 million, and fully diluted earnings per share was $0.27, the same as in
the prior year. For the six months ended September 30, 2004, ePlus reported
record revenues of $261 million, net earnings of $4.7 million, and fully diluted
earnings per share of $0.50.
The increase in revenues was attributable to organic growth within the Company's
existing customer base, new customers, and the acquisition of the IT
fulfillment, professional services, and software development and consulting
service businesses of Manchester Technologies, Inc. on May 28, 2004.
"The September quarter was a period of substantial operational change and
investment at ePlus" commented Phillip G. Norton, chairman, president and CEO of
ePlus. "We completed the integration of the Manchester acquisition and converted
the acquired customers and new employees within the ePlus infrastructure. By the
end of the quarter, we've further reduced the administrative run rate
attributable to the business, and we expect more reductions in the future when
we relocate to replacement facilities. The acquisition and subsequent
integration of Manchester has been very successful."
The increase in total revenues this quarter as compared to the same period in
2003 was driven by a 96% increase in sales of product to $138 million from $70
million and a 37% increase in fee and other income from $2.3 million to $3.2
million, and offset by a 2% decrease in lease revenues. Total costs and expenses
increased 85% to $150 million from $81 million, driven in part by a 98% increase
in the cost of sales, product to $123 million from $62 million, and a 49%
increase in salaries and benefits to $15 million from $10 million. The Company
also experienced higher costs during the quarter as a result of the acquisition,
legal fees attributable to its ongoing patent infringement lawsuit, and costs
related to Sarbanes-Oxley compliance. Professional and other fees increased 243%
to $2.8 million from $800 thousand. The Company incurred a 21% increase in
general and administrative expenses. Interest and financing costs decreased 29%
to $1.3 million from $1.8 million.
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During the quarter, ePlus announced several new statewide IT services and supply
contracts in Pennsylvania, and rolled out an improved website for its technology
fulfillment and services business, www.eplustechnology.com. The PEPPM contract
included Manage+ for the first time, and the Company increased its floorplanning
financing capacity with GE Capital Distribution Finance two times to handle its
increased sales volume, by advancing its funding availability from $33 million
to a seasonally-adjusted availability of $75 million.
Conference Call Scheduled for Tuesday, November 16th at 11:00 A.M.
The Company will host a conference call at 11 a.m. on Tuesday, November 16,
2004. To listen, please call (973) 935-2107 or toll-free (800) 370-0923. Ask to
be connected to the ePlus conference call. Live and archived webcasts can be
accessed from http://www.eplus.com/investor. A telephone replay of the
conference call will be available by calling (877) 519-4471 or (973) 341-3080,
and entering the passcode 5358792 beginning at about 2:00 P.M. on November 16th
through November 30th..
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, product and catalog content
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 www.eplus.com, call 888-482-1122 or email info@eplus.com.
ePlus(TM) is a trademark of ePlus inc. ePlus Enterprise Cost Management, and
eECM, are 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.
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All information set forth in this release and its attachments is as of November
15, 2004. ePlus inc. undertakes no duty to update this information. More
information about potential factors that could affect ePlus inc.'s business and
financial results is included in the Company's Annual Report on Form 10-K for
the fiscal year ended March 31, 2004, and the Quarterly Report on Form 10-Q for
the quarter ended June 30, 2004 including (without limitation) under the
captions "Risk Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations," which are on file with the SEC and
available at the SEC's website at www.sec.gov. Additional information will also
be set forth in those sections in ePlus inc.'s Quarterly Report on Form 10-Q for
the quarter ended September 30, 2004, which will be filed with the SEC on or
about November 15, 2004.
ePlus inc. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
Three Months Ended
September 30,
2003 2004
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REVENUES
Sales of product $ 70,380,144 $ 138,065,002
Lease revenues 12,910,616 12,654,485
Fee and other income 2,345,971 3,209,606
TOTAL REVENUES ----------------------------------------------
85,636,731 153,929,093
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COSTS AND EXPENSES
Cost of sales, product 62,364,436 123,342,547
Direct lease costs 2,396,770 2,930,271
Professional and other fees 820,813 2,815,485
Salaries and benefits 9,999,685 14,877,568
General and administrative expenses 3,662,850 4,435,573
Interest and financing costs 1,826,595 1,300,648
TOTAL COSTS AND EXPENSES ----------------------------------------------
81,071,149 149,702,092
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EARNINGS BEFORE PROVISION FOR INCOME TAXES 4,565,582 4,227,001
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PROVISION FOR INCOME TAXES 1,860,705 1,733,070
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NET EARNINGS $ 2,704,877 $ 2,493,931
==============================================
NET EARNINGS PER COMMON SHARE - BASIC $0.29 $0.28
==============================================
NET EARNINGS PER COMMON SHARE - DILUTED $0.27 $0.27
==============================================
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 9,466,651 8,922,104
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 10,179,738 9,252,196
Please refer to the Form 10-Q to be filed on or about November 15, 2004.
Results presented are unaudited.