Delaware | 54-1817218 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
13595 Dulles Technology Drive, Herndon, VA20171-3413 |
(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 | ||
12 | |||
Item 1A. | 13 | ||
Item 1B. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Part II | |||
Item 5. | |||
Item 6. | |||
Item 7. | 27 | ||
Item 7A. | 45 | ||
Item 8. | 45 | ||
Item 9. | 45 | ||
Item | 45 | ||
Item 9B. | 46 | ||
Part III | |||
Item 10. | 47 | ||
Item 11. | 47 | ||
Item 12. | 47 | ||
Item 13. | 47 | ||
Item 14. | 47 | ||
Part IV | |||
Item 15. | 48 | ||
Item 16. | 51 | ||
52 |
our ability to raise capital, maintain or increase as needed our lines of credit with vendors or floor planning facility, |
ITEM 1. | BUSINESS |
Multi-Cloud Strategy. Over the past several years, public, private and hybrid cloud architectures and cloud-enabled frameworks have become a core foundation of modern IT. Our strategy is to assist our customers in aligning cloud strategy with business objective, creating an enterprise cloud foundation, enabling multi-cloud capabilities, accelerating cloud migrations, modernizing the datacenter and extending to the cloud, and optimizing cloud deployments along with their associated costs. We focus on being a guide to customers on their Journey to Modernization of applications, data, and platforms. This strategy leverages our strength in deploying private clouds, extending them to public cloud and incorporating the necessary elements of networking and security. By understanding our customers’ environment, applications, and business requirements, we deploy solutions that leverage the most appropriate technology on the most appropriate platform with the most appropriate consumption model. For example, we may build a private cloud solution to host mission critical applications, while utilizing a public cloud solution for development, collaboration, or disaster recovery. As the market matures, we will continue to build and acquire skills that align with agile development (DevOps), application refactoring, and analytics. Our cloud strategy is tightly aligned with all our key strategic initiatives, including data center, security, networking, collaboration, and emerging technology. |
• | Increasing sophistication and incidences of IT security breaches and cyber-attacks. Over the last decade, cyber-attacks have become more sophisticated, |
Disruptive technologies are creating complexity and challenges for customers and vendors. |
Customer IT |
Lack of sufficient internal IT resources at mid-sized and large enterprises, and scarcity of IT personnel in certain high-demand disciplines. We believe that IT departments at mid-sized and large enterprises are facing pressure to deliver emerging technologies and business outcomes |
Reduction in the number of IT solutions providers. We believe that customers are seeking to reduce the number of |
Increasing need for third-party services. We believe that customers are relying on third-party service providers, such as ePlus, to manage significant aspects of their IT environment, from design, implementation, pre- and post-sales support, to maintenance, engineering, cloud management, security operations, and other services. |
• | IT Sales: Our offerings consist of hardware, perpetual and subscription software, maintenance, software assurance, and internally provided and outsourced services. We believe that our customers view technology purchases as integrated solutions, rather than discrete product and service categories, and the majority of our sales are derived from integrated solutions involving our customers’ data center, network, security, and collaboration infrastructure. We hold various technical and sales-related certifications from leading manufacturers and software publishers, which authorizes us to market their products and enables us to provide advanced professional services. We actively engage with emerging vendors to offer their technologies to our customers. Our flexible platform and customizable catalogs facilitate the addition of new vendors’ products with minimal incremental effort. |
• | Advanced Professional and Managed Services: We provide a range of advanced professional and managed services to help our customers improve productivity, profitability, and revenue growth while reducing operating costs. Our solutions and services include the following: |
• | ePlus managed services proactively monitors and manages a broad range of technologies on premises and in the cloud such as service desk, Infrastructure, Cloud Managed Backup and Recovery, Cloud Hosted Infrastructure & Managed Power Protection. a flexible subscription model to monitor, manage, and maximize business critical technologies—including cloud, security, data center, mobility, and collaboration based on a an ITIL Framework with SOC 1/2 and HIPAA accreditation; |
• | 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; |
• | Security solutions help safeguard our customers’ business and information assets through the appropriate application of governance, technology and supporting services: |
ePlus Cloud Consulting Services (ECCS) is a |
• | Staff augmentation services provide customers with flexible headcount options, which may range from service desk to infrastructure to software |
• | Service desk providesoutsourced functions including but not limited to server and desktop supportto respond to our customers’ business demands while minimizing overhead. |
• | Project management services enhance productivity and collaboration management and enable successful implementations and adoption of |
March 31, | ||||||||
2016 | 2015 | |||||||
Sales and Marketing | 457 | 404 | ||||||
Professional Services | 342 | 308 | ||||||
Administration | 195 | 188 | ||||||
Software Development and Internal IT | 73 | 78 | ||||||
Executive Management | 7 | 8 | ||||||
1,074 | 986 |
Year Ended March 31, | ||||||||||||
2021 | 2020 | Change | ||||||||||
Sales and marketing | 589 | 605 | (16 | ) | ||||||||
Professional services | 662 | 666 | (4 | ) | ||||||||
Administration | 217 | 212 | 5 | |||||||||
Software development and internal IT | 85 | 89 | (4 | ) | ||||||||
Management | 7 | 7 | - | |||||||||
1,560 | 1,579 | (19 | ) |
Age | Position | ||
Chief Executive Officer, President, and | |||
Elaine D. Marion | Chief Financial Officer | ||
Chief Operating Officer and ePlus Technology, inc. President |
ITEM 1A. | RISK FACTORS |
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 |
Quarter Ended | High | Low | ||||||
Fiscal Year 2016 | ||||||||
March 31, 2016 | $ | 96.20 | $ | 61.78 | ||||
December 31, 2015 | $ | 109.33 | $ | 77.71 | ||||
September 30, 2015 | $ | 81.80 | $ | 71.40 | ||||
June 30, 2015 | $ | 89.28 | $ | 74.17 | ||||
Fiscal Year 2015 | ||||||||
March 31, 2015 | $ | 91.38 | $ | 64.58 | ||||
December 31, 2014 | $ | 75.94 | $ | 54.05 | ||||
September 30, 2014 | $ | 60.80 | $ | 50.17 | ||||
June 30, 2014 | $ | 61.76 | $ | 49.23 |
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, 2015 through April 30, 2015 | - | - | 351,960 | (2 | ) | |||||||||||||||
May 1, 2015 through May 31, 2015 | - | - | 351,960 | (3 | ) | |||||||||||||||
June 1, 2015 through June 15, 2015 | 18,284 | $ | 82.63 | - | 351,960 | (4 | ) | |||||||||||||
June 16, 2015 through August 16, 2015 | 12,163 | $ | 79.32 | - | - | (5 | ) | |||||||||||||
August 17, 2015 through August 31, 2015 | - | - | - | 500,000 | (6 | ) | ||||||||||||||
September 1, 2015 through September 30, 2015 | - | - | - | 500,000 | (7 | ) | ||||||||||||||
October 1, 2015 through October 31, 2015 | - | - | - | 500,000 | (8 | ) | ||||||||||||||
November 1, 2015 through November 30, 2015 | - | - | - | 500,000 | (9 | ) | ||||||||||||||
December 1, 2015 through December 31, 2015 | - | - | - | 500,000 | (10 | ) | ||||||||||||||
January 1, 2016 through January 31, 2016 | - | - | - | 500,000 | (11 | ) | ||||||||||||||
February 1, 2016 through February 28, 2016 | 51,165 | $ | 74.27 | 51,165 | 448,835 | (12 | ) | |||||||||||||
March 1, 2016 through March 31, 2016 | 65,137 | $ | 77.73 | 65,137 | 383,698 | (13 | ) |
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, 2020 through April 30, 2020 | - | $ | - | - | 339,324 | (2 | ) | |||||||||||||
May 1, 2020 through May 27, 2020 | 996 | $ | 66.75 | - | 339,324 | (3 | ) | |||||||||||||
May 28, 2020 through May 31, 2020 | - | $ | - | - | 500,000 | (4 | ) | |||||||||||||
June 1, 2020 through June 30, 2020 | 36,644 | $ | 71.94 | - | 500,000 | (5 | ) | |||||||||||||
July 1, 2020 through July 31, 2020 | - | $ | - | - | 500,000 | (6 | ) | |||||||||||||
August 1, 2020 through August 31, 2020 | - | $ | - | - | 500,000 | (7 | ) | |||||||||||||
September 1, 2020 through September 30, 2020 | 24,318 | $ | 73.37 | 24,318 | 475,682 | (8 | ) | |||||||||||||
October 1, 2020 through October 31, 2020 | 25,455 | $ | 70.67 | 25,455 | 450,227 | (9 | ) | |||||||||||||
November 1, 2020 through November 30, 2020 | 9,328 | $ | 70.99 | 9,328 | 440,899 | (10 | ) | |||||||||||||
December 1, 2020 through December 31, 2020 | - | $ | - | - | 440,899 | (11 | ) | |||||||||||||
January 1, 2021 through January 31, 2021 | - | $ | - | - | 440,899 | (12 | ) | |||||||||||||
February 1, 2021 through February 29, 2021 | - | $ | - | - | 440,899 | (13 | ) | |||||||||||||
March 1, 2021 through March 31, 2021 | - | $ | - | - | 440,899 | (14 | ) |
(1) |
(2) | The share purchase authorization in place for the month ended April 30, |
(3) | As of May 27, 2020, the authorization under the then existing share repurchase plan expired. |
(4) | On May 20, 2020, the board of directors authorized the company to repurchase up to 500,000 shares of our outstanding common stock commencing on May 28, 2020 and continuing to May 27, 2021. As of May 31, 2020, the remaining authorized shares to be purchased were 500,000. |
(5) | The share purchase authorization in place for the month ended |
The share purchase authorization |
(7) | The share purchase authorization in place for the month ended August 31, 2020, had purchase limitations on the number of shares of |
(8) | The share purchase authorization in place for the month ended September 30, |
(9) | The share purchase authorization in place for the month ended October 31, |
(10) | The share purchase authorization in place for the month ended November 30, |
(11) | The share purchase authorization in place for the month ended December 31, |
(12) | The share purchase authorization in place for the month ended January 31, |
(13) | The share purchase authorization in place for the month ended February 28, |
(14) | The share purchase authorization in place for the month ended March 31, |
ITEM 6. | SELECTED FINANCIAL DATA |
For the years ended March 31, | ||||||||||||||||||||
Statement of Operations Data: | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||
Net sales | $ | 1,204,199 | $ | 1,143,282 | $ | 1,057,536 | $ | 983,112 | $ | 825,581 | ||||||||||
Cost of sales | 942,142 | 898,735 | 840,623 | 778,339 | 654,066 | |||||||||||||||
Gross profit | 262,057 | 244,547 | 216,913 | 204,773 | 171,515 | |||||||||||||||
Operating expense | 186,306 | 173,837 | 156,815 | 146,028 | 131,941 | |||||||||||||||
Operating income | 75,751 | 70,710 | 60,098 | 58,745 | 39,574 | |||||||||||||||
Other income | - | 7,603 | - | - | - | |||||||||||||||
Earnings before provision for income taxes | 75,751 | 78,313 | 60,098 | 58,745 | 39,574 | |||||||||||||||
Provision for income taxes | 31,004 | 32,473 | 24,825 | 23,915 | 16,207 | |||||||||||||||
Net earnings | $ | 44,747 | $ | 45,840 | $ | 35,273 | $ | 34,830 | $ | 23,367 | ||||||||||
Net earnings per common share - basic | $ | 6.17 | $ | 6.26 | $ | 4.41 | $ | 4.37 | $ | 2.82 | ||||||||||
Net earnings per common share - diluted | $ | 6.09 | $ | 6.19 | $ | 4.37 | $ | 4.32 | $ | 2.79 | ||||||||||
Dividend per common share | $ | - | $ | - | $ | - | $ | 2.50 | $ | - |
As of March 31, | ||||||||||||||||||||
Balance Sheet Data: | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 94,766 | $ | 76,175 | $ | 80,179 | $ | 52,720 | $ | 33,778 | ||||||||||
Accounts receivable—net | $ | 276,399 | $ | 249,803 | $ | 243,216 | $ | 192,254 | $ | 174,599 | ||||||||||
Total financing receivables and operating leases—net | $ | 132,354 | $ | 143,900 | $ | 143,739 | $ | 122,603 | $ | 140,311 | ||||||||||
Total assets | $ | 616,680 | $ | 568,275 | $ | 550,103 | $ | 437,872 | $ | 433,688 | ||||||||||
Total non-recourse and recourse notes payable | $ | 47,422 | $ | 56,564 | $ | 68,888 | $ | 41,739 | $ | 28,055 | ||||||||||
Total liabilities | $ | 297,802 | $ | 289,013 | $ | 283,720 | $ | 199,640 | $ | 214,061 | ||||||||||
Total stockholders' equity | $ | 318,878 | $ | 279,262 | $ | 266,383 | $ | 238,232 | $ | 219,627 |
For the years ended March 31, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Gross margin | 21.8 | % | 21.4 | % | 20.5 | % | 20.8 | % | 20.8 | % | ||||||||||
Gross margin, product and services | 19.9 | % | 19.4 | % | 18.3 | % | 18.0 | % | 17.9 | % | ||||||||||
Operating income margin | 6.3 | % | 6.2 | % | 5.7 | % | 6.0 | % | 4.8 | % | ||||||||||
Adjusted gross billings of product and services (1) | $ | 1,556,463 | $ | 1,435,039 | $ | 1,276,133 | $ | 1,163,577 | $ | 978,180 | ||||||||||
Non-GAAP: Net earnings (2) | $ | 46,480 | $ | 42,529 | $ | 35,925 | $ | 35,423 | $ | 23,568 | ||||||||||
Non-GAAP: Net earnings per common share - diluted (2) | $ | 6.33 | 5.75 | 4.45 | 4.40 | 2.82 | ||||||||||||||
Adjusted EBITDA (3) | $ | 81,299 | $ | 75,043 | $ | 62,890 | $ | 61,134 | $ | 41,239 | ||||||||||
Adjusted EBITDA margin (3) | 6.8 | % | 6.6 | % | 5.9 | % | 6.2 | % | 5.0 | % | ||||||||||
Purchases of property and equipment used internally | $ | 2,442 | $ | 3,610 | $ | 4,238 | $ | 1,436 | $ | 1,594 | ||||||||||
Purchases of equipment under operating leases | 12,026 | 8,163 | 5,714 | 14,148 | 6,061 | |||||||||||||||
Total capital expenditures | $ | 14,468 | $ | 11,773 | $ | 9,952 | $ | 15,584 | $ | 7,655 |
For the years ended March 31, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Sales of products and services | $ | 1,163,337 | $ | 1,100,884 | $ | 1,013,374 | $ | 936,228 | $ | 784,951 | ||||||||||
Costs incurred related to sales of third party services | 393,126 | 334,155 | 262,759 | 227,349 | 193,229 | |||||||||||||||
Adjusted gross billings of product and services | $ | 1,556,463 | $ | 1,435,039 | $ | 1,276,133 | $ | 1,163,577 | $ | 978,180 |
For the years ended March 31, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
GAAP: Earnings before provision for income taxes | $ | 75,751 | $ | 78,313 | $ | 60,098 | $ | 58,745 | $ | 39,574 | ||||||||||
Plus: Acquisition related amortization expense | 2,917 | 1,888 | 1,110 | 1,000 | 340 | |||||||||||||||
Less: Other income | - | (7,603 | ) | - | - | - | ||||||||||||||
Non-GAAP: Earnings before provision for income taxes | 78,668 | 72,598 | 61,208 | 59,745 | 39,914 | |||||||||||||||
Non-GAAP: Provision for income taxes | 32,188 | 30,069 | 25,283 | 24,322 | 16,346 | |||||||||||||||
Non-GAAP: Net Earnings | $ | 46,480 | $ | 42,529 | $ | 35,925 | $ | 35,423 | $ | 23,568 | ||||||||||
GAAP: Net earnings per common share - diluted | $ | 6.09 | $ | 6.19 | $ | 4.37 | $ | 4.32 | $ | 2.79 | ||||||||||
Non-GAAP: Net earnings per common share - diluted | $ | 6.33 | $ | 5.75 | $ | 4.45 | $ | 4.40 | $ | 2.82 |
For the years ended March 31, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Net earnings | $ | 44,747 | $ | 45,840 | $ | 35,273 | $ | 34,830 | $ | 23,367 | ||||||||||
Provision for income taxes | 31,004 | 32,473 | 24,825 | 23,915 | 16,207 | |||||||||||||||
Depreciation and amortization | 5,548 | 4,333 | 2,792 | 2,389 | 1,665 | |||||||||||||||
Less: Other income | - | (7,603 | ) | - | - | - | ||||||||||||||
Adjusted EBITDA | $ | 81,299 | $ | 75,043 | $ | 62,890 | $ | 61,134 | $ | 41,239 |
Year Ended March 31, | ||||||||||||
Consolidated | 2021 | 2020 | 2019 | |||||||||
Net sales | $ | 1,568,323 | $ | 1,588,404 | $ | 1,372,673 | ||||||
Gross profit | $ | 393,554 | $ | 391,191 | $ | 330,388 | ||||||
Gross margin | 25.1 | % | 24.6 | % | 24.1 | % | ||||||
Operating income margin | 6.8 | % | 6.0 | % | 5.8 | % | ||||||
Net earnings | $ | 74,397 | $ | 69,082 | $ | 63,192 | ||||||
Net earnings margin | 4.7 | % | 4.3 | % | 4.6 | % | ||||||
Net earnings per common share - diluted | $ | 5.54 | $ | 5.15 | $ | 4.65 | ||||||
Non-GAAP: Net earnings (1) | $ | 85,567 | $ | 82,167 | $ | 69,580 | ||||||
Non-GAAP: Net earnings per common share - diluted (1) | $ | 6.38 | $ | 6.13 | $ | 5.12 | ||||||
Adjusted EBITDA (2) | $ | 128,245 | $ | 119,359 | $ | 100,415 | ||||||
Adjusted EBITDA margin | 8.2 | % | 7.5 | % | 7.3 | % | ||||||
Technology Segment | ||||||||||||
Net sales | $ | 1,507,954 | $ | 1,530,138 | $ | 1,329,520 | ||||||
Adjusted gross billings (3) | $ | 2,263,865 | $ | 2,227,885 | $ | 1,918,995 | ||||||
Gross profit | $ | 346,235 | $ | 340,588 | $ | 294,662 | ||||||
Gross margin | 23.0 | % | 22.3 | % | 22.2 | % | ||||||
Operating income | $ | 75,665 | $ | 62,155 | $ | 56,738 | ||||||
Adjusted EBITDA (2) | $ | 97,219 | $ | 85,840 | $ | 77,202 | ||||||
Financing Segment | ||||||||||||
Net sales | $ | 60,369 | $ | 58,266 | $ | 43,153 | ||||||
Gross profit | $ | 47,319 | $ | 50,603 | $ | 35,726 | ||||||
Operating income | $ | 30,670 | $ | 33,124 | $ | 22,796 | ||||||
Adjusted EBITDA (2) | $ | 31,026 | $ | 33,519 | $ | 23,213 |
(1) | Non-GAAP Net earnings and Non-GAAP Net earnings per common share – diluted is based on net earnings calculated in accordance with GAAP, adjusted to exclude other income (expense), share-based compensation, and acquisition and integration expenses, and the related tax effects. |
Year Ended March 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
GAAP: Earnings before tax | $ | 106,906 | $ | 95,959 | $ | 86,230 | ||||||
Share based compensation | 7,167 | 7,954 | 7,244 | |||||||||
Acquisition and integration expense | 271 | 1,676 | 1,813 | |||||||||
Acquisition related amortization expense | 9,116 | 9,217 | 7,423 | |||||||||
Other income | (571 | ) | (680 | ) | (6,696 | ) | ||||||
Non-GAAP: Earnings before provision for income taxes | 122,889 | 114,126 | 96,014 | |||||||||
GAAP: Provision for income taxes | 32,509 | 26,877 | 23,038 | |||||||||
Share based compensation | 2,188 | 2,218 | 1,988 | |||||||||
Acquisition and integration expense | 78 | 490 | 522 | |||||||||
Acquisition related amortization expense | 2,730 | 2,487 | 1,916 | |||||||||
Other income | (143 | ) | (200 | ) | (1,702 | ) | ||||||
Tax benefit on restricted stock | (40 | ) | 87 | 672 | ||||||||
Non-GAAP: Provision for income taxes | 37,322 | 31,959 | 26,434 | |||||||||
Non-GAAP: Net earnings | $ | 85,567 | $ | 82,167 | $ | 69,580 |
Year Ended March 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
GAAP: Net earnings per common share - diluted | $ | 5.54 | $ | 5.15 | $ | 4.65 | ||||||
Share based compensation | 0.38 | 0.43 | 0.38 | |||||||||
Acquisition and integration expense | 0.01 | 0.09 | 0.09 | |||||||||
Acquisition related amortization expense | 0.48 | 0.51 | 0.40 | |||||||||
Other income | (0.03 | ) | (0.04 | ) | (0.35 | ) | ||||||
Tax benefit on restricted stock | - | (0.01 | ) | (0.05 | ) | |||||||
Total non-GAAP adjustments - net of tax | $ | 0.84 | $ | 0.98 | $ | 0.47 | ||||||
Non-GAAP: Net earnings per common share - diluted | $ | 6.38 | $ | 6.13 | $ | 5.12 |
(2) | We define Adjusted EBITDA as net earnings calculated in accordance with 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 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. We provide below 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. The presentation of Adjusted EBITDA has been changed from prior period presentations to include adjustments for expenses related to acquisitions such as legal, accounting, tax, and adjustments to the fair value of contingent purchase price consideration as well as stock compensation. |
Year Ended March 31, | ||||||||||||
Consolidated | 2021 | 2020 | 2019 | |||||||||
Net earnings | $ | 74,397 | $ | 69,082 | $ | 63,192 | ||||||
Provision for income taxes | 32,509 | 26,877 | 23,038 | |||||||||
Share based compensation | 7,167 | 7,954 | 7,244 | |||||||||
Interest and financing costs | 521 | 294 | - | |||||||||
Acquisition and integration expense | 271 | 1,676 | 1,813 | |||||||||
Depreciation and amortization | 13,951 | 14,156 | 11,824 | |||||||||
Other income | (571 | ) | (680 | ) | (6,696 | ) | ||||||
Adjusted EBITDA | $ | 128,245 | $ | 119,359 | $ | 100,415 | ||||||
Technology Segment | ||||||||||||
Operating income | $ | 75,665 | $ | 62,155 | $ | 56,738 | ||||||
Depreciation and amortization | 13,839 | 14,016 | 11,812 | |||||||||
Share based compensation | 6,923 | 7,699 | 6,839 | |||||||||
Interest and financing costs | 521 | 294 | - | |||||||||
Acquisition and integration expense | 271 | 1,676 | 1,813 | |||||||||
Adjusted EBITDA | $ | 97,219 | $ | 85,840 | $ | 77,202 | ||||||
Financing Segment | ||||||||||||
Operating income | $ | 30,670 | $ | 33,124 | $ | 22,796 | ||||||
Depreciation and amortization | 112 | 140 | 12 | |||||||||
Share based compensation | 244 | 255 | 405 | |||||||||
Adjusted EBITDA | $ | 31,026 | $ | 33,519 | $ | 23,213 |
(3) | We define Adjusted gross billings as our technology segment net sales calculated in accordance with US GAAP, adjusted to exclude the costs incurred related to sales of third-party maintenance, software assurance, subscription/SaaS licenses, and services. We have provided below a reconciliation of Adjusted gross billings to technology segment net sales, which is the most directly comparable financial measure to this Non-GAAP financial measure. |
Year Ended March 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Technology segment net sales | $ | 1,507,954 | $ | 1,530,138 | $ | 1,329,520 | ||||||
Costs incurred related to sales of third party maintenance, software assurance and subscription/Saas licenses, and services | 755,911 | 697,747 | 589,475 | |||||||||
Adjusted gross billings | $ | 2,263,865 | $ | 2,227,885 | $ | 1,918,995 |
Portfolio income: Interest income from financing receivables and rents due under operating leases; |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||||||||||||||||||
2016 | 2015 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||
Sales of product and services | $ | 1,163,337 | $ | 1,100,884 | $ | 62,453 | 5.7 | % | ||||||||||||||||||||||||
Fee and other income | 5,728 | 7,565 | (1,837 | ) | (24.3 | %) | ||||||||||||||||||||||||||
Net sales | 1,169,065 | 1,108,449 | 60,616 | 5.5 | % | |||||||||||||||||||||||||||
Cost of sales, product and services | 931,782 | 887,673 | 44,109 | 5.0 | % | |||||||||||||||||||||||||||
Product | $ | 1,305,789 | $ | 1,337,022 | $ | (31,233 | ) | (2.3 | %) | |||||||||||||||||||||||
Services | 202,165 | 193,116 | 9,049 | 4.7 | % | |||||||||||||||||||||||||||
Total | 1,507,954 | 1,530,138 | (22,184 | ) | (1.4 | %) | ||||||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||||||||
Product | 1,036,627 | 1,069,110 | (32,483 | ) | (3.0 | %) | ||||||||||||||||||||||||||
Services | 125,092 | 120,440 | 4,652 | 3.9 | % | |||||||||||||||||||||||||||
Total | 1,161,719 | 1,189,550 | (27,831 | ) | (2.3 | %) | ||||||||||||||||||||||||||
Gross profit | 237,283 | 220,776 | 16,507 | 7.5 | % | 346,235 | 340,588 | 5,647 | 1.7 | % | ||||||||||||||||||||||
Professional and other fees | 5,505 | 5,340 | 165 | 3.1 | % | |||||||||||||||||||||||||||
Salaries and benefits | 140,086 | 128,945 | 11,141 | 8.6 | % | |||||||||||||||||||||||||||
General and administrative | 22,401 | 21,127 | 1,274 | 6.0 | % | |||||||||||||||||||||||||||
Selling, general, and administrative | 256,210 | 264,123 | (7,913 | ) | (3.0 | %) | ||||||||||||||||||||||||||
Depreciation and amortization | 5,532 | 4,310 | 1,222 | 28.4 | % | 13,839 | 14,016 | (177 | ) | (1.3 | %) | |||||||||||||||||||||
Interest and financing costs | 70 | 96 | (26 | ) | (27.1 | %) | 521 | 294 | 227 | 77.2 | % | |||||||||||||||||||||
Operating expenses | 173,594 | 159,818 | 13,776 | 8.6 | % | 270,570 | 278,433 | (7,863 | ) | (2.8 | %) | |||||||||||||||||||||
Operating income | $ | 63,689 | $ | 60,958 | $ | 2,731 | 4.5 | % | $ | 75,665 | $ | 62,155 | $ | 13,510 | 21.7 | % | ||||||||||||||||
Adjusted gross billings | $ | 2,263,865 | $ | 2,227,885 | $ | 35,980 | 1.6 | % | ||||||||||||||||||||||||
Adjusted EBITDA | $ | 69,221 | $ | 65,268 | $ | 3,953 | 6.1 | % | $ | 97,219 | $ | 85,840 | $ | 11,379 | 13.3 | % |
Quarter Ended | Sequential | Year over Year | ||||||
March 31, 2016 | 1.3 | % | 13.3 | % | ||||
December 31, 2015 | (11.2 | %) | (2.6 | %) | ||||
September 30, 2015 | 24.9 | % | 13.1 | % | ||||
June 30,2015 | 0.9 | % | (0.6 | %) | ||||
March 31, 2015 | (13.0 | %) | 3.2 | % |
FY16 | FY15 | Change | |||||||||
Revenue by customer end market: | |||||||||||
Technology | 23 | % | 19 | % | 4 | % | |||||
Telecom, Media & Entertainment | 14 | % | 18 | % | (4 | %) | |||||
Financial Services | 12 | % | 10 | % | 2 | % | |||||
SLED | 22 | % | 22 | % | - | ||||||
Health Care | 10 | % | 10 | % | - | ||||||
Other | 19 | % | 21 | % | (2 | %) | |||||
Total | 100 | % | 100 | % | |||||||
Revenue by vendor: | |||||||||||
Cisco Systems | 49 | % | 49 | % | - | ||||||
Hewlett Packard | 7 | % | 8 | % | (1 | %) | |||||
NetApp | 5 | % | 7 | % | (2 | %) | |||||
Sub-total | 61 | % | 64 | % | (3 | %) | |||||
Other | 39 | % | 36 | % | 3 | % | |||||
Total | 100 | % | 100 | % |
Twelve Months Ended March 31, | ||||||||||||
2021 | 2020 | Change | ||||||||||
Revenue by customer end market: | ||||||||||||
Technology | 17 | % | 21 | % | (4 | %) | ||||||
Telecom, Media & Entertainment | 25 | % | 19 | % | 6 | % | ||||||
SLED | 16 | % | 16 | % | 0 | % | ||||||
Healthcare | 13 | % | 15 | % | (2 | %) | ||||||
Financial Services | 13 | % | 13 | % | 0 | % | ||||||
All others | 16 | % | 16 | % | 0 | % | ||||||
Total | 100 | % | 100 | % |
Twelve Months Ended March 31, | ||||||||||||
2021 | 2020 | Change | ||||||||||
Revenue by vendor: | ||||||||||||
Cisco Systems | 36 | % | 40 | % | (4 | %) | ||||||
NetApp | 4 | % | 4 | % | 0 | % | ||||||
HP Inc. & HPE | 4 | % | 5 | % | (1 | %) | ||||||
Dell/EMC | 7 | % | 6 | % | 1 | % | ||||||
Juniper Networks | 6 | % | 4 | % | 2 | % | ||||||
Arista Networks | 3 | % | 5 | % | (2 | %) | ||||||
All others | 40 | % | 36 | % | 4 | % | ||||||
Total | 100 | % | 100 | % |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||||||||||||||||||
2016 | 2015 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||
Financing revenue | $ | 35,091 | $ | 34,728 | $ | 363 | 1.0 | % | ||||||||||||||||||||||||
Fee and other income | 43 | 105 | (62 | ) | (59.0 | %) | ||||||||||||||||||||||||||
Net sales | 35,134 | 34,833 | 301 | 0.9 | % | $ | 60,369 | $ | 58,266 | $ | 2,103 | 3.6 | % | |||||||||||||||||||
Direct lease costs | 10,360 | 11,062 | (702 | ) | (6.3 | %) | ||||||||||||||||||||||||||
Cost of sales | 13,050 | 7,663 | 5,387 | 70.3 | % | |||||||||||||||||||||||||||
Gross profit | 24,774 | 23,771 | 1,003 | 4.2 | % | 47,319 | 50,603 | (3,284 | ) | (6.5 | %) | |||||||||||||||||||||
Professional and other fees | 1,041 | 1,168 | (127 | ) | (10.9 | %) | ||||||||||||||||||||||||||
Salaries and benefits | 9,218 | 9,141 | 77 | 0.8 | % | |||||||||||||||||||||||||||
General and administrative | 729 | 1,404 | (675 | ) | (48.1 | %) | ||||||||||||||||||||||||||
Selling, general, and administrative | 15,053 | 15,059 | (6 | ) | (0.0 | %) | ||||||||||||||||||||||||||
Depreciation and amortization | 16 | 23 | (7 | ) | (30.4 | %) | 112 | 140 | (28 | ) | (20.0 | %) | ||||||||||||||||||||
Interest and financing costs | 1,708 | 2,283 | (575 | ) | (25.2 | %) | 1,484 | 2,280 | (796 | ) | (34.9 | %) | ||||||||||||||||||||
Operating expenses | 12,712 | 14,019 | (1,307 | ) | (9.3 | %) | 16,649 | 17,479 | (830 | ) | (4.7 | %) | ||||||||||||||||||||
Operating income | $ | 12,062 | $ | 9,752 | $ | 2,310 | 23.7 | % | $ | 30,670 | $ | 33,124 | $ | (2,454 | ) | (7.4 | %) | |||||||||||||||
Adjusted EBITDA | $ | 12,078 | $ | 9,775 | $ | 2,303 | 23.6 | % | $ | 31,026 | $ | 33,519 | $ | (2,493 | ) | (7.4 | %) |
Year Ended March 31, | ||||||||||||||||
2015 | 2014 | Change | ||||||||||||||
Sales of product and services | $ | 1,100,884 | $ | 1,013,374 | $ | 87,510 | 8.6 | % | ||||||||
Fee and other income | 7,565 | 8,037 | (472 | ) | (5.9 | %) | ||||||||||
Net sales | 1,108,449 | 1,021,411 | 87,038 | 8.5 | % | |||||||||||
Cost of sales, product and services | 887,673 | 827,875 | 59,798 | 7.2 | % | |||||||||||
Gross profit | 220,776 | 193,536 | 27,240 | 14.1 | % | |||||||||||
Professional and other fees | 5,340 | 7,557 | (2,217 | ) | (29.3 | %) | ||||||||||
Salaries and benefits | 128,945 | 113,481 | 15,464 | 13.6 | % | |||||||||||
General and administrative | 21,127 | 18,334 | 2,793 | 15.2 | % | |||||||||||
Depreciation and amortization | 4,310 | 2,769 | 1,541 | 55.7 | % | |||||||||||
Interest and financing costs | 96 | 84 | 12 | 14.3 | % | |||||||||||
Operating expenses | 159,818 | 142,225 | 17,593 | 12.4 | % | |||||||||||
Operating income | $ | 60,958 | $ | 51,311 | $ | 9,647 | 18.8 | % | ||||||||
Adjusted EBITDA | $ | 65,268 | $ | 54,080 | $ | 11,188 | 20.7 | % |
Quarter Ended | Sequential | Year over Year | ||||||
March 31, 2015 | (13.0 | %) | 3.2 | % | ||||
December 31, 2014 | 3.2 | % | 15.6 | % | ||||
September 30, 2014 | 9.7 | % | 9.7 | % | ||||
June 30, 2014 | 4.8 | % | 5.8 | % | ||||
March 31, 2014 | (2.5 | %) | 11.4 | % |
FY15 | FY14 | Change | |||||||||
Revenue by customer end market: | |||||||||||
Technology | 19 | % | 21 | % | (2 | %) | |||||
Telecom, Media & Entertainment | 18 | % | 18 | % | - | ||||||
Financial Services | 10 | % | 11 | % | (1 | %) | |||||
SLED | 22 | % | 20 | % | 2 | % | |||||
Health Care | 10 | % | 11 | % | (1 | %) | |||||
Other | 21 | % | 19 | % | 2 | % | |||||
Total | 100 | % | 100 | % | |||||||
Revenue by vendor : | |||||||||||
Cisco Systems | 49 | % | 48 | % | 1 | % | |||||
Hewlett Packard | 8 | % | 10 | % | (2 | %) | |||||
NetApp | 7 | % | 8 | % | (1 | %) | |||||
Sub-total | 64 | % | 66 | % | (2 | %) | |||||
Other | 36 | % | 34 | % | 2 | % | |||||
Total | 100 | % | 100 | % |
Year Ended March 31, | ||||||||||||||||
2015 | 2014 | Change | ||||||||||||||
Financing revenue | $ | 34,728 | $ | 35,896 | $ | (1,168 | ) | (3.3 | %) | |||||||
Fee and other income | 105 | 229 | (124 | ) | (54.1 | %) | ||||||||||
Net sales | 34,833 | 36,125 | (1,292 | ) | (3.6 | %) | ||||||||||
Direct lease costs | 11,062 | 12,748 | (1,686 | ) | (13.2 | %) | ||||||||||
Gross profit | 23,771 | 23,377 | 394 | 1.7 | % | |||||||||||
Professional and other fees | 1,168 | 1,484 | (316 | ) | (21.3 | %) | ||||||||||
Salaries and benefits | 9,141 | 9,670 | (529 | ) | (5.5 | %) | ||||||||||
General and administrative | 1,404 | 1,549 | (145 | ) | (9.4 | %) | ||||||||||
Depreciation and amortization | 23 | 23 | - | 0.0 | % | |||||||||||
Interest and financing costs | 2,283 | 1,864 | 419 | 22.5 | % | |||||||||||
Operating expenses | 14,019 | 14,590 | (571 | ) | (3.9 | %) | ||||||||||
Operating income | $ | 9,752 | $ | 8,787 | $ | 965 | 11.0 | % | ||||||||
Adjusted EBITDA | $ | 9,775 | $ | 8,810 | $ | 965 | 11.0 | % |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||||||
2016 | 2015 | 2014 | 2021 | 2020 | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | 13,382 | $ | 13,847 | $ | (8,223 | ) | $ | 129,507 | $ | (74,174 | ) | ||||||||
Net cash used in investing activities | (50,179 | ) | (30,592 | ) | (28,797 | ) | (35,756 | ) | (20,339 | ) | ||||||||||
Net cash provided by financing activities | 55,176 | 12,820 | 64,459 | |||||||||||||||||
Net cash provided by (used in) financing activities | (49,802 | ) | 100,634 | |||||||||||||||||
Effect of exchange rate changes on cash | 212 | (79 | ) | 20 | (617 | ) | 294 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 18,591 | $ | (4,004 | ) | $ | 27,459 | |||||||||||||
Net increase in cash and cash equivalents | $ | 43,332 | $ | 6,415 |
Year Ended March 31, | ||||||||
2021 | 2020 | |||||||
Technology segment | $ | 153,332 | $ | (15,812 | ) | |||
Financing segment | (23,825 | ) | (58,362 | ) | ||||
Net cash provided by (used in) operating activities | $ | 129,507 | $ | (74,174 | ) |
As of March 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Days sales outstanding (1) | 56 | �� | 60 | 53 | ||||||||
Days inventory outstanding (2) | 7 | 8 | 7 | |||||||||
Days payable outstanding (3) | (45 | ) | (45 | ) | (41 | ) | ||||||
Cash conversion cycle | 18 | 23 | 19 |
As of March 31, | ||||||||
2021 | 2020 | |||||||
(DSO) Days sales outstanding (1) | 69 | 71 | ||||||
(DIO) Days inventory outstanding (2) | 15 | 11 | ||||||
(DPO) Days payable outstanding (3) | (47 | ) | (45 | ) | ||||
Cash conversion cycle | 37 | 37 |
(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 Adjusted gross billings |
(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 |
(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 |
Maximum Credit Limit at March 31, 2016 | Balance as of March 31, 2016 | Maximum Credit Limit at March 31,2015 | Balance as of March 31, 2015 | |||||||||||||||||||||||||
Maximum Credit Limit at March 31, 2021 | Maximum Credit Limit at March 31, 2021 | Balance as of March 31, 2021 | Maximum Credit Limit at March 31, 2020 | Balance as of March 31, 2020 | ||||||||||||||||||||||||
$ | 250,000 | $ | 121,893 | $ | 225,000 | $ | 99,418 | 275,000 | $ | 98,653 | $ | 300,000 | $ | 127,416 |
Payments Due by Period | Payments Due by Period | |||||||||||||||||||||||||||||||||||||||
Total | 1 year | Years 2 & 3 | Years 4 & 5 | More than 5 years | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||||||||||||||||||
Recourse & non-recourse notes payable (1) | $ | 47,422 | $ | 28,330 | $ | 17,555 | $ | 1,537 | $ | - | ||||||||||||||||||||||||||||||
Interest payments on recourse and non-recourse notes payable | 1,724 | 1,148 | 525 | 51 | - | |||||||||||||||||||||||||||||||||||
Non-recourse notes payable (1) | $ | 56,520 | $ | 50,709 | $ | 5,169 | $ | 642 | $ | - | ||||||||||||||||||||||||||||||
Recourse notes payable | 19,158 | 5,577 | 13,581 | - | - | |||||||||||||||||||||||||||||||||||
Operating lease obligations | 10,808 | 4,207 | 5,268 | 1,333 | - | 9,413 | 4,006 | 4,489 | 918 | - | ||||||||||||||||||||||||||||||
Hosted software | 8,054 | 2,840 | 3,765 | 1,449 | - | |||||||||||||||||||||||||||||||||||
Total | $ | 59,954 | $ | 33,685 | $ | 23,348 | $ | 2,921 | $ | - | $ | 93,145 | $ | 63,132 | $ | 27,004 | $ | 3,009 | $ | - |
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 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, FINANCIAL STATEMENT SCHEDULES |
Exhibit No. | Exhibit Description |
Amended and Restated Bylaws of | |
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 (Incorporated herein by reference to Exhibit 4.2 to our Annual Report on Form 10-K for the year ended March 31, 2019). | |
Form of Indemnification Agreement entered into by and between | |
Amended and Restated Employment Agreement effective | |
Amendment | |
Amendment #2, effective November 14, 2019, to Amended and Restated Employment Agreement effective | |
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). | |
2017 Non-Employee Director Long-Term Incentive Plan (Incorporated herein by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on | |
Form of Award Agreement – Restricted Stock Agreement (for awards granted under and subject to the provisions of the |
Form of Award Agreement – Restricted Stock Unit Award Agreement (for awards granted under and subject to the provisions of the ePlus inc. 2012 Employee Long-Term Incentive Plan) (Incorporated herein by reference to Exhibit 10.25 to our Annual Report on Form 10-K for the fiscal year ended March 31, | |
Limited Guaranty dated June 24, 2004 by and between GE Commercial Distribution Finance Corporation and ePlus inc. (Incorporated herein by reference to Exhibit 10.10 to our Current Report on Form 8-K filed on November 17, 2005). | |
Collateralized Guaranty, dated March 30, 2004, by and between GE Commercial Distribution Finance Corporation and ePlus Group, inc. (Incorporated herein by reference to Exhibit 10.11 to our Current Report on Form 8-K filed on November 17, 2005). | |
Amendment to Collateralized Guaranty, dated November 14, 2005, by and between GE Commercial Distribution Finance Corporation and ePlus Group, inc. (Incorporated herein by reference to Exhibit 10.12 to our Current Report on Form 8-K filed on November 17, 2005). | |
Amended and Restated Business Financing Agreement, dated July 23, 2012, by and between General Electric Commercial Distribution Finance and ePlus Technology, inc. (Incorporated by reference to Exhibit | |
Amendment No. 1, dated July 31, 2014, to Amended and Restated Business Financing Agreement by and between General Electric Commercial Distribution Finance and ePlus Technology, inc. (Incorporated by reference to Exhibit 10.2 to our Quarterly Report on Form 10-Q for the period ended September 30, 2014). | |
Amendment No. 2, dated July 24, 2015, to Amended and Restated Business Financing Agreement by and between General Electric Commercial Distribution Finance and ePlus Technology, inc. (Incorporated herein by reference to Exhibit 10.2 to our Current Report on Form 8-K filed on July 30, 2015). | |
Amendment No. 3, dated October 20, 2015, to Amended and Restated Business Financing Agreement by and among | |
Amendment No. 4, dated July 28, 2016, to Amended and Restated Business Financing Agreement by and among ePlus Technology, inc. and its subsidiary ePlus Technology Services, inc. and Wells Fargo Commercial Distribution Finance, LLC (f/k/a GE Commercial Distribution Finance Corporation) (Incorporated herein by reference to Exhibit 10.2 to our Current Report on Form 8-K filed on August 1, 2016). | |
Amendment No. 5, dated July 27, 2017, to Amended and Restated Business Financing Agreement by and between ePlus Technology, inc. and Wells Fargo Commercial Distribution Finance, LLC (f/k/a GE Commercial Distribution Finance Corporation) (Incorporated herein by reference to Exhibit 10.2 to our Current Report on Form 8-K filed on August 3, 2017). | |
Amendment No. 6, dated February 15, 2018, to Amended and Restated Business Financing Agreement by and between ePlus Technology, inc. and Wells Fargo Commercial Distribution Finance, LLC (f/k/a GE Commercial Distribution Finance Corporation) (Incorporated herein by reference to Exhibit 10.27 to our Annual Report on Form 10-K for the fiscal year ended March 31, 2018). | |
Amendment No. 7, dated January 15, 2019, to Amended and Restated Business Financing Agreement between ePlus Technology, inc. and Wells Fargo Commercial Distribution Finance, LLC (Incorporated herein by reference to Exhibit 10.2 to our Current Report on Form 8-K filed on January 18, 2019). | |
Amendment No. 8, dated November 12, 2019, to Amended and Restated Business Financing Agreement between ePlus Technology, inc. and Wells Fargo Commercial Distribution Finance, LLC. (Incorporated herein by reference to Exhibit 10.4 to our Quarterly Report on Form 10-Q for the period ended December 31, 2019). | |
Amendment No. 9, dated March 31, 2020, to Amended and Restated Business Financing Agreement between ePlus Technology, inc. and Wells Fargo Commercial Distribution Finance, LLC. (Incorporated herein by reference to Exhibit 10.2 to our Current Report on Form 8-K filed on April 3, 2020). |
Amendment No. 10, dated May 18, 2020, to Amended and Restated Business Financing Agreement between ePlus Technology, inc. and Wells Fargo Commercial Distribution Finance, LLC. (Incorporated herein by reference to Exhibit 10.2 to our Current Report on Form 8-K filed on May 21, 2020). | |
Amended and Restated Agreement for Wholesale Financing, dated July 23, 2012, by and between General Electric Commercial Distribution Finance and ePlus Technology, inc. (Incorporated by reference to Exhibit |
Amendment No. 1, dated July 31, 2014, to Amended and Restated Agreement for Wholesale Financing by and between General Electric Commercial Distribution Finance and ePlus Technology, inc. (Incorporated by reference to Exhibit 10.1 to our Quarterly Report on Form 10-Q for the period ended September 30, 2014). | |
Amendment No. 2, dated July 24, 2015, to Amended and Restated Agreement for Wholesale Financing by and between General Electric Commercial Distribution Finance and ePlus Technology, inc. (Incorporated herein by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on July 30, 2015). | |
Amendment No. 3, dated October 20, 2015, to Amended and Restated Agreement for Wholesale Financing by and among | |
Amendment | |
Amendment | |
Amendment | |
Amendment No. 9, dated March 31, 2020, to Amended and Restated Agreement for Wholesale Financing between ePlus Technology, inc. and Wells Fargo Commercial Distribution Finance, LLC. (Incorporated herein by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on April 3, 2020). | |
Amendment No. 10, dated May 18, 2020, to Amended and Restated Agreement for Wholesale Financing between ePlus Technology, inc. and Wells Fargo Commercial Distribution Finance, LLC. (Incorporated herein by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on May 21, 2020). | |
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. 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). | |
Subsidiaries of ePlus inc. | |
Consent of Independent Registered Public Accounting Firm. | |
Certification of the Chief Executive Officer of | |
Certification of the Chief Financial Officer of | |
Certification of the Chief Executive Officer and Chief Financial Officer of |
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 |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
ITEM 16. | FORM 10-K SUMMARY |
ePlus inc. | |
/s/ MARK P. MARRON | |
By: | |
Date: May |
/s/ MARK P. MARRON | |
By: | |
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/ 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, | |
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: | |
Date: May 20, 2021 | |
/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 assignee |
◾ | 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. |
As of March 31, 2016 | As of March 31, 2015 | |||||||
ASSETS | (in thousands, except per share data) | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 94,766 | $ | 76,175 | ||||
Accounts receivable—trade, net | 234,628 | 218,458 | ||||||
Accounts receivable—other, net | 41,771 | 31,345 | ||||||
Inventories—net | 33,343 | 19,835 | ||||||
Financing receivables—net, current | 56,448 | 66,909 | ||||||
Deferred costs | 6,371 | 20,499 | ||||||
Other current assets | 10,649 | 7,413 | ||||||
Total current assets | 477,976 | 440,634 | ||||||
Financing receivables and operating leases—net | 75,906 | 76,991 | ||||||
Deferred tax assets—net | - | 604 | ||||||
Property, equipment and other assets | 8,644 | 9,248 | ||||||
Goodwill and other intangible assets—net | 54,154 | 40,798 | ||||||
TOTAL ASSETS | $ | 616,680 | $ | 568,275 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 76,780 | $ | 66,420 | ||||
Accounts payable—floor plan | 121,893 | 99,418 | ||||||
Salaries and commissions payable | 14,981 | 14,860 | ||||||
Deferred revenue | 18,344 | 34,363 | ||||||
Recourse notes payable—current | 2,288 | 889 | ||||||
Non-recourse notes payable—current | 26,042 | 28,560 | ||||||
Other current liabilities | 13,118 | 13,575 | ||||||
Total current liabilities | 273,446 | 258,085 | ||||||
Recourse notes payable—long term | 1,054 | 2,801 | ||||||
Non-recourse notes payable—long term | 18,038 | 24,314 | ||||||
Deferred tax liability—net | 3,001 | - | ||||||
Other liabilities | 2,263 | 3,813 | ||||||
TOTAL LIABILITIES | 297,802 | 289,013 | ||||||
COMMITMENTS AND CONTINGENCIES (Note 8) | ||||||||
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 7,365 outstanding at March 31, 2016 and 13,114 issued and 7,389 outstanding at March 31, 2015 | 132 | 131 | ||||||
Additional paid-in capital | 117,511 | 111,072 | ||||||
Treasury stock, at cost, 5,872 and 5,725 shares at March 31, 2016 and March 31, 2015, respectively | (129,518 | ) | (118,179 | ) | ||||
Retained earnings | 331,224 | 286,477 | ||||||
Accumulated other comprehensive income—foreign currency translation adjustment | (471 | ) | (239 | ) | ||||
Total Stockholders' Equity | 318,878 | 279,262 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 616,680 | $ | 568,275 |
March 31, 2021 | March 31, 2020 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 129,562 | $ | 86,231 | ||||
Accounts receivable—trade, net | 391,567 | 374,998 | ||||||
Accounts receivable—other, net | 41,053 | 36,570 | ||||||
Inventories | 69,963 | 50,268 | ||||||
Financing receivables—net, current | 106,272 | 70,169 | ||||||
Deferred costs | 28,201 | 22,306 | ||||||
Other current assets | 10,976 | 9,256 | ||||||
Total current assets | 777,594 | 649,798 | ||||||
Financing receivables and operating leases—net | 90,165 | 74,158 | ||||||
Deferred tax asset—net | 1,468 | 0 | ||||||
Property, equipment and other assets | 42,289 | 32,596 | ||||||
Goodwill | 126,645 | 118,097 | ||||||
Other intangible assets—net | 38,614 | 34,464 | ||||||
TOTAL ASSETS | $ | 1,076,775 | $ | 909,113 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 165,162 | $ | 82,919 | ||||
Accounts payable—floor plan | 98,653 | 127,416 | ||||||
Salaries and commissions payable | 36,839 | 30,952 | ||||||
Deferred revenue | 72,802 | 55,480 | ||||||
Recourse notes payable—current | 5,450 | 37,256 | ||||||
Non-recourse notes payable—current | 50,397 | 29,630 | ||||||
Other current liabilities | 30,061 | 22,986 | ||||||
Total current liabilities | 459,364 | 386,639 | ||||||
Recourse notes payable - long-term | 12,658 | 0 | ||||||
Non-recourse notes payable - long-term | 5,664 | 5,872 | ||||||
Deferred tax liability—net | 0 | 2,730 | ||||||
Other liabilities | 36,679 | 27,727 | ||||||
TOTAL LIABILITIES | 514,365 | 422,968 | ||||||
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; 25,000 shares authorized; 13,503 outstanding at March 31, 2021 and 13,500 outstanding at March 31, 2020 | 145 | 144 | ||||||
Additional paid-in capital | 152,366 | 145,197 | ||||||
Treasury stock, at cost, 993 shares at March 31, 2021 and 896 shares at March 31, 2020 | (75,372 | ) | (68,424 | ) | ||||
Retained earnings | 484,616 | 410,219 | ||||||
Accumulated other comprehensive income—foreign currency translation adjustment | 655 | (991 | ) | |||||
Total Stockholders' Equity | 562,410 | 486,145 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,076,775 | $ | 909,113 |
Year Ended March 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
(amounts in thousands, except per share data) | ||||||||||||
Net sales | $ | 1,204,199 | $ | 1,143,282 | $ | 1,057,536 | ||||||
Cost of sales | 942,142 | 898,735 | 840,623 | |||||||||
Gross profit | 262,057 | 244,547 | 216,913 | |||||||||
Professional and other fees | 6,546 | 6,508 | 9,041 | |||||||||
Salaries and benefits | 149,304 | 138,086 | 123,151 | |||||||||
General and administrative expenses | 23,130 | 22,531 | 19,883 | |||||||||
Depreciation and amortization | 5,548 | 4,333 | 2,792 | |||||||||
Interest and financing costs | 1,778 | 2,379 | 1,948 | |||||||||
Operating expenses | 186,306 | 173,837 | 156,815 | |||||||||
Operating income | 75,751 | 70,710 | 60,098 | |||||||||
Other income | - | 7,603 | - | |||||||||
Earnings before tax | 75,751 | 78,313 | 60,098 | |||||||||
Provision for income taxes | 31,004 | 32,473 | 24,825 | |||||||||
Net earnings | $ | 44,747 | $ | 45,840 | $ | 35,273 | ||||||
Net earnings per common share—basic | $ | 6.17 | $ | 6.26 | $ | 4.41 | ||||||
Net earnings per common share—diluted | $ | 6.09 | $ | 6.19 | $ | 4.37 | ||||||
Weighted average common shares outstanding—basic | 7,256 | 7,318 | 7,927 | |||||||||
Weighted average common shares outstanding—diluted | 7,344 | 7,393 | 7,999 |
Year Ended March 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Net sales | ||||||||||||
Product | $ | 1,366,158 | $ | 1,395,288 | $ | 1,223,195 | ||||||
Services | 202,165 | 193,116 | 149,478 | |||||||||
Total | 1,568,323 | 1,588,404 | 1,372,673 | |||||||||
Cost of sales | ||||||||||||
Product | 1,049,677 | 1,076,773 | 952,464 | |||||||||
Services | 125,092 | 120,440 | 89,821 | |||||||||
Total | 1,174,769 | 1,197,213 | 1,042,285 | |||||||||
Gross profit | 393,554 | 391,191 | 330,388 | |||||||||
Selling, general, and administrative | 271,263 | 279,182 | 237,082 | |||||||||
Depreciation and amortization | 13,951 | 14,156 | 11,824 | |||||||||
Interest and financing costs | 2,005 | 2,574 | 1,948 | |||||||||
Operating expenses | 287,219 | 295,912 | 250,854 | |||||||||
Operating income | 106,335 | 95,279 | 79,534 | |||||||||
Other income (expense) | 571 | 680 | 6,696 | |||||||||
Earnings before tax | 106,906 | 95,959 | 86,230 | |||||||||
Provision for income taxes | 32,509 | 26,877 | 23,038 | |||||||||
Net earnings | $ | 74,397 | $ | 69,082 | $ | 63,192 | ||||||
Net earnings per common share—basic | $ | 5.58 | $ | 5.18 | $ | 4.70 | ||||||
Net earnings per common share—diluted | $ | 5.54 | $ | 5.15 | $ | 4.65 | ||||||
Weighted average common shares outstanding—basic | 13,337 | 13,327 | 13,448 | |||||||||
Weighted average common shares outstanding—diluted | 13,417 | 13,415 | 13,578 |
Year Ended March 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
NET EARNINGS | $ | 44,747 | $ | 45,840 | $ | 35,273 | ||||||
OTHER COMPREHENSIVE INCOME, NET OF TAX: | ||||||||||||
Foreign currency translation adjustments (net of tax effect of $40, $10, $21, respectively) | (232 | ) | (425 | ) | (224 | ) | ||||||
Other comprehensive income (loss) | (232 | ) | (425 | ) | (224 | ) | ||||||
TOTAL COMPREHENSIVE INCOME | $ | 44,515 | $ | 45,415 | $ | 35,049 |
Year Ended March 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
NET EARNINGS | $ | 74,397 | $ | 69,082 | $ | 63,192 | ||||||
OTHER COMPREHENSIVE INCOME, NET OF TAX: | ||||||||||||
Foreign currency translation adjustments | 1,646 | (720 | ) | (803 | ) | |||||||
Other comprehensive income (loss) | 1,646 | (720 | ) | (803 | ) | |||||||
TOTAL COMPREHENSIVE INCOME | $ | 76,043 | $ | 68,362 | $ | 62,389 |
Year Ended March 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
(in thousands) | ||||||||||||
Cash Flows From Operating Activities: | ||||||||||||
Net earnings | $ | 44,747 | $ | 45,840 | $ | 35,273 | ||||||
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: | ||||||||||||
Depreciation and amortization | 15,980 | 15,575 | 14,755 | |||||||||
Reserve for credit losses, inventory obsolescence and sales returns | (216 | ) | 125 | 853 | ||||||||
Share-based compensation expense | 5,711 | 4,585 | 3,968 | |||||||||
Excess tax benefit from share-based compensation | (728 | ) | (564 | ) | (1,762 | ) | ||||||
Deferred taxes | 3,515 | (1,863 | ) | (3,536 | ) | |||||||
Payments from lessees directly to lenders—operating leases | (4,646 | ) | (7,685 | ) | (7,539 | ) | ||||||
Gain on disposal of property, equipment and operating lease equipment | (3,104 | ) | (3,112 | ) | (2,473 | ) | ||||||
Gain on sale of financing receivables | (7,103 | ) | (5,884 | ) | (5,843 | ) | ||||||
Excess increase in cash value of life insurance | - | - | (103 | ) | ||||||||
Gain on settlement | - | (1,434 | ) | - | ||||||||
Other | 185 | (127 | ) | 109 | ||||||||
Changes in: | ||||||||||||
Accounts receivable—trade | (8,564 | ) | 1,372 | (36,751 | ) | |||||||
Accounts receivable—other | (2,498 | ) | (2,407 | ) | (2,621 | ) | ||||||
Inventories | (13,405 | ) | 3,161 | (7,724 | ) | |||||||
Financing receivables—net | (9,310 | ) | (19,560 | ) | (30,792 | ) | ||||||
Deferred costs, other intangible assets and other assets | 11,189 | (10,060 | ) | (1,179 | ) | |||||||
Accounts payable—trade | (738 | ) | (16,810 | ) | 33,090 | |||||||
Salaries and commissions payable, deferred revenue and other liabilities | (17,633 | ) | 12,695 | 4,052 | ||||||||
Net cash provided by (used in) operating activities | $ | 13,382 | $ | 13,847 | $ | (8,223 | ) | |||||
Cash Flows From Investing Activities: | ||||||||||||
Maturities of short-term investments | $ | - | $ | - | $ | 982 | ||||||
Maturities of supplemental benefit plan investments | - | 2,544 | - | |||||||||
Proceeds from sale of property, equipment and operating lease equipment | 6,931 | 8,562 | 4,138 | |||||||||
Purchases of property, equipment and operating lease equipment | (14,468 | ) | (11,773 | ) | (9,952 | ) | ||||||
Purchases of assets to be leased or financed | (11,403 | ) | (143 | ) | (5,445 | ) | ||||||
Issuance of financing receivables | (137,008 | ) | (128,125 | ) | (104,298 | ) | ||||||
Repayments of financing receivables | 58,067 | 60,619 | 42,514 | |||||||||
Proceeds from sale of financing receivables | 64,351 | 45,828 | 46,249 | |||||||||
Premiums paid on life insurance | - | (47 | ) | (140 | ) | |||||||
Cash used in acquisitions, net of cash acquired | (16,649 | ) | (8,057 | ) | (2,845 | ) | ||||||
Net cash used in investing activities | $ | (50,179 | ) | $ | (30,592 | ) | $ | (28,797 | ) |
Year Ended March 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net earnings | $ | 74,397 | $ | 69,082 | $ | 63,192 | ||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 19,991 | 19,156 | 18,639 | |||||||||
Reserve for credit losses | 1,436 | 1,004 | 170 | |||||||||
Share-based compensation expense | 7,169 | 7,954 | 7,243 | |||||||||
Deferred taxes | (4,198 | ) | (2,185 | ) | 3,280 | |||||||
Payments from lessees directly to lenders—operating leases | (34 | ) | (70 | ) | (156 | ) | ||||||
Gain on disposal of property, equipment, and operating lease equipment | (2,742 | ) | (814 | ) | (2,027 | ) | ||||||
Gain on sale of financial receivables | 0 | 0 | (9,077 | ) | ||||||||
Changes in: | ||||||||||||
Accounts receivable | (5,056 | ) | (64,388 | ) | (34,306 | ) | ||||||
Inventories-net | (16,798 | ) | 115 | (10,929 | ) | |||||||
Financing receivables—net | (42,104 | ) | (109,355 | ) | (7,883 | ) | ||||||
Deferred costs and other assets | (16,503 | ) | (20,982 | ) | 5,412 | |||||||
Accounts payable-trade | 76,772 | (8,884 | ) | 12,456 | ||||||||
Salaries and commissions payable, deferred revenue, and other liabilities | 37,177 | 35,193 | (6,603 | ) | ||||||||
Net cash provided by (used in) operating activities | 129,507 | (74,174 | ) | 39,411 | ||||||||
Cash flows from investing activities: | ||||||||||||
Proceeds from sale of property, equipment, and operating lease equipment | 2,791 | 1,705 | 3,619 | |||||||||
Purchases of property, equipment, and operating lease equipment | (11,513 | ) | (7,009 | ) | (11,629 | ) | ||||||
Cash used in acquisitions, net of cash acquired | (27,034 | ) | (15,035 | ) | (49,764 | ) | ||||||
Purchases of assets to be leased or financed | 0 | 0 | (10,368 | ) | ||||||||
Issuance of financing receivables | 0 | 0 | (175,410 | ) | ||||||||
Repayments of financing receivables | 0 | 0 | 73,942 | |||||||||
Proceeds from sale of financing receivables | 0 | 0 | 73,405 | |||||||||
Net cash used in investing activities | (35,756 | ) | (20,339 | ) | (96,205 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Borrowings of non-recourse and recourse notes payable | 66,403 | 141,369 | 83,924 | |||||||||
Repayments of non-recourse and recourse notes payable | (74,328 | ) | (31,880 | ) | (43,054 | ) | ||||||
Repurchase of common stock | (6,948 | ) | (14,425 | ) | (18,754 | ) | ||||||
Repayments of financing of acquisitions | (556 | ) | (5,763 | ) | (7,634 | ) | ||||||
Net borrowings (repayments) on floor plan facility | (34,373 | ) | 11,333 | 3,974 | ||||||||
Net cash provided by (used in) financing activities | (49,802 | ) | 100,634 | 18,456 | ||||||||
Effect of exchange rate changes on cash | (617 | ) | 294 | (44 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 43,332 | 6,415 | (38,382 | ) | ||||||||
Cash and cash equivalents, beginning of period | 86,231 | 79,816 | 118,198 | |||||||||
Cash and cash equivalents, end of period | $ | 129,563 | $ | 86,231 | $ | 79,816 |
Year Ended March 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
(in thousands) | ||||||||||||
Cash Flows From Financing Activities: | ||||||||||||
Borrowings of non-recourse and recourse notes payable | $ | 44,807 | $ | 52,237 | $ | 51,547 | ||||||
Repayments of non-recourse and recourse notes payable | (257 | ) | (1,688 | ) | (2,252 | ) | ||||||
Repurchase of common stock | (11,339 | ) | (37,685 | ) | (13,188 | ) | ||||||
Dividends paid | (80 | ) | (90 | ) | (108 | ) | ||||||
Proceeds from issuance of capital stock through option exercise | - | - | 560 | |||||||||
Payments of contingent consideration | (1,158 | ) | - | (1,027 | ) | |||||||
Excess tax benefit from share-based compensation | 728 | 564 | 1,762 | |||||||||
Net borrowings (repayments) on floor plan facility | 22,475 | (518 | ) | 27,165 | ||||||||
Net cash provided by financing activities | 55,176 | 12,820 | 64,459 | |||||||||
Effect of exchange rate changes on cash | 212 | (79 | ) | 20 | ||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 18,591 | (4,004 | ) | 27,459 | ||||||||
Cash and Cash Equivalents, Beginning of Period | 76,175 | 80,179 | 52,720 | |||||||||
Cash and Cash Equivalents, End of Period | $ | 94,766 | $ | 76,175 | $ | 80,179 | ||||||
Supplemental Disclosures of Cash Flow Information: | ||||||||||||
Cash paid for interest | $ | 84 | $ | 239 | $ | 105 | ||||||
Cash paid for income taxes | $ | 29,789 | $ | 35,436 | $ | 25,517 | ||||||
Schedule of Non-Cash Investing and Financing Activities: | ||||||||||||
Proceeds from sales of operating lease equipment included in accounts receivable | $ | 7,650 | $ | 443 | $ | 861 | ||||||
Purchase of property, equipment, and operating leases included in accounts payable | $ | (10,562 | ) | $ | (432 | ) | $ | (123 | ) | |||
Purchase of assets to be leased or financed included in accounts payable | $ | (9,827 | ) | $ | (20,022 | ) | $ | (1,140 | ) | |||
Issuance of financing receivables | $ | (101,718 | ) | $ | (73,881 | ) | $ | (98,616 | ) | |||
Repayment of financing receivables | $ | 16,873 | $ | - | $ | - | ||||||
Proceeds from sale of financing receivables | $ | 98,753 | $ | 73,881 | $ | 98,616 | ||||||
Borrowing of recourse and nonrecourse notes payable | $ | 42,840 | $ | - | $ | - | ||||||
Repayments of non-recourse and recourse notes payable | $ | (29,059 | ) | $ | (34,584 | ) | $ | (22,146 | ) | |||
Vesting of share-based compensation | $ | 7,799 | $ | 6,474 | $ | 7,838 | ||||||
Contingent consideration | $ | - | $ | (1,980 | ) | $ | - |
Year Ended March 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid for interest | $ | 1,436 | $ | 2,260 | $ | 1,862 | ||||||
Cash paid for income taxes | $ | 31,690 | $ | 28,356 | $ | 19,938 | ||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | 5,780 | $ | 5,613 | $ | 0 | ||||||
Schedule of non-cash investing and financing activities: | ||||||||||||
Proceeds from sale of property, equipment, and leased equipment | $ | 2,045 | $ | 0 | $ | 520 | ||||||
Purchases of property, equipment, and operating lease equipment | $ | (372 | ) | $ | (329 | ) | $ | (1,874 | ) | |||
Purchases of assets to be leased or financed | $ | 0 | $ | 0 | $ | (13,663 | ) | |||||
Issuance of financing receivables | $ | 0 | $ | 0 | $ | (119,024 | ) | |||||
Proceeds from sale of financing receivables | $ | 0 | $ | 0 | $ | 142,418 | ||||||
Consideration for acquisitions | $ | 0 | $ | (241 | ) | $ | (257 | ) | ||||
Borrowing of non-recourse and recourse notes payable | $ | 121,826 | $ | 114,439 | $ | 75,164 | ||||||
Repayments of non-recourse and recourse notes payable | $ | (34 | ) | $ | (70 | ) | $ | (156 | ) | |||
Vesting of share-based compensation | $ | 7,937 | $ | 8,990 | $ | 12,816 | ||||||
New operating lease assets obtained in exchange for lease obligations | $ | 1,146 | $ | 6,035 | $ | 0 |
Common Stock | Additional Paid-In | Treasury | Retained | Accumulated Other Comprehensive | Common Stock | Additional Paid-In | Treasury | Retained | Accumulated Other Comprehensive | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Par Value | Capital | Stock | Earnings | Income | Total | Shares | Par Value | Capital | Stock | Earnings | Income | Total | |||||||||||||||||||||||||||||||||||||||||||
Balance, April 1, 2013 | 8,150 | $ | 129 | $ | 99,641 | $ | (67,306 | ) | $ | 205,358 | $ | 410 | $ | 238,232 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of shares for option exercises | 40 | - | 559 | - | - | - | 559 | |||||||||||||||||||||||||||||||||||||||||||||||||
Excess tax benefit of share- based compensation | - | - | 1,762 | - | - | - | 1,762 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance, April 1, 2018 | 13,761 | $ | 142 | $ | 130,000 | $ | (36,016 | ) | $ | 277,945 | $ | 532 | $ | 372,603 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock awards | 87 | 1 | - | - | - | - | 1 | 75 | 1 | 0 | 0 | 0 | 0 | 1 | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 3,962 | - | 6 | - | 3,968 | 0 | 0 | 7,243 | 0 | 0 | 0 | 7,243 | ||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (241 | ) | - | - | (13,188 | ) | - | - | (13,188 | ) | (225 | ) | 0 | 0 | (17,983 | ) | 0 | 0 | (17,983 | ) | ||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 35,273 | - | 35,273 | - | 0 | 0 | 0 | 63,192 | 0 | 63,192 | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | (224 | ) | (224 | ) | - | 0 | 0 | 0 | 0 | (803 | ) | (803 | ) | ||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2014 | 8,036 | $ | 130 | $ | 105,924 | $ | (80,494 | ) | $ | 240,637 | $ | 186 | $ | 266,383 | ||||||||||||||||||||||||||||||||||||||||||
Excess tax benefit of share- based compensation | - | - | 564 | - | - | - | 564 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2019 | 13,611 | $ | 143 | $ | 137,243 | $ | (53,999 | ) | $ | 341,137 | $ | (271 | ) | $ | 424,253 | |||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock awards | 88 | 1 | - | - | - | - | 1 | 93 | 1 | 0 | 0 | 0 | 0 | 1 | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | - | - | 4,584 | - | - | - | 4,584 | 0 | 0 | 7,954 | 0 | 0 | 0 | 7,954 | ||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (735 | ) | - | - | (37,685 | ) | - | - | (37,685 | ) | (204 | ) | 0 | 0 | (14,425 | ) | 0 | 0 | (14,425 | ) | ||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 45,840 | - | 45,840 | - | 0 | 0 | 0 | 69,082 | 0 | 69,082 | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | (425 | ) | (425 | ) | - | 0 | 0 | 0 | 0 | (720 | ) | (720 | ) | ||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2015 | 7,389 | $ | 131 | $ | 111,072 | $ | (118,179 | ) | $ | 286,477 | $ | (239 | ) | $ | 279,262 | |||||||||||||||||||||||||||||||||||||||||
Excess tax benefit of share- based compensation | - | - | 728 | - | - | - | 728 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2020 | 13,500 | $ | 144 | $ | 145,197 | $ | (68,424 | ) | $ | 410,219 | $ | (991 | ) | $ | 486,145 | |||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock awards | 123 | 1 | - | - | - | - | 1 | 100 | 1 | 0 | 0 | 0 | 0 | 1 | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | - | - | 5,711 | - | - | - | 5,711 | 0 | 0 | 7,169 | 0 | 0 | 0 | 7,169 | ||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (147 | ) | - | - | (11,339 | ) | - | - | (11,339 | ) | (97 | ) | 0 | 0 | (6,948 | ) | 0 | 0 | (6,948 | ) | ||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 44,747 | - | 44,747 | - | 0 | 0 | 0 | 74,397 | 0 | 74,397 | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | (232 | ) | (232 | ) | �� | - | 0 | 0 | 0 | 0 | 1,646 | 1,646 | |||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2016 | 7,365 | $ | 132 | $ | 117,511 | $ | (129,518 | ) | $ | 331,224 | $ | (471 | ) | $ | 318,878 | |||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | 13,503 | $ | 145 | $ | 152,366 | $ | (75,372 | ) | $ | 484,616 | $ | 655 | $ | 562,410 |
● | 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, 2016 | Notes Receivables | Lease-Related Receivables | Total Financing Receivables | |||||||||
Minimum payments | $ | 44,442 | $ | 66,303 | $ | 110,745 | ||||||
Estimated unguaranteed residual value (1) | - | 12,693 | 12,693 | |||||||||
Initial direct costs, net of amortization (2) | 312 | 475 | 787 | |||||||||
Unearned income | - | (5,543 | ) | (5,543 | ) | |||||||
Reserve for credit losses (3) | (3,381 | ) | (685 | ) | (4,066 | ) | ||||||
Total, net | $ | 41,373 | $ | 73,243 | $ | 114,616 | ||||||
Reported as: | ||||||||||||
Current | $ | 24,962 | $ | 31,486 | $ | 56,448 | ||||||
Long-term | 16,411 | 41,757 | 58,168 | |||||||||
Total, net | $ | 41,373 | $ | 73,243 | $ | 114,616 |
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 |
Year ending March 31, 2017 | $ | 34,566 | ||
2018 | 19,247 | |||
2019 | 10,673 | |||
2020 | 1,582 | |||
2021 and thereafter | 235 | |||
Total | $ | 66,303 |
March 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Current (included in deferred revenue) | $ | 72,299 | $ | 54,486 | $ | 46,356 | ||||||
Non-current (included in other liabilities) | $ | 26,042 | $ | 16,395 | $ | 13,593 |
Year ending March 31, 2022 | $ | 38,097 | ||
2023 | 16,560 | |||
2024 | 7,784 | |||
2025 | 794 | |||
2026 and thereafter | 246 | |||
Total remaining performance obligations | $ | 63,481 |
4. | FINANCING RECEIVABLES AND OPERATING LEASES |
Year Ended March 31, | ||||||||
2021 | 2020 | |||||||
Net sales | $ | 27,196 | $ | 15,631 | ||||
Cost of sales | 17,855 | 13,039 | ||||||
Gross profit | $ | 9,341 | $ | 2,592 |
Year Ended March 31, | ||||||||
2021 | 2020 | |||||||
Interest income on sales-type leases | $ | 7,602 | $ | 6,623 | ||||
Lease income on operating leases | $ | 15,864 | $ | 18,534 |
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 |
(1) | Includes unguaranteed residual values of $9,453 thousand that we retained after selling the related lease receivable. |
(2) |
March 31, 2020 | Notes Receivable | Lease Receivables | Financing Receivables | |||||||||
Minimum payments | $ | 55,417 | $ | 69,492 | $ | 124,909 | ||||||
Estimated unguaranteed residual value (1) | 0 | 21,862 | 21,862 | |||||||||
Initial direct costs, net of amortization | 212 | 247 | 459 | |||||||||
Unearned income | 0 | (11,612 | ) | (11,612 | ) | |||||||
Allowance for credit losses (2) | (798 | ) | (610 | ) | (1,408 | ) | ||||||
Total, net | $ | 54,831 | $ | 79,379 | $ | 134,210 | ||||||
Reported as: | ||||||||||||
Current | $ | 31,181 | $ | 38,988 | $ | 70,169 | ||||||
Long-term | 23,650 | 40,391 | 64,041 | |||||||||
Total, net | $ | 54,831 | $ | 79,379 | $ | 134,210 |
(1) | Includes unguaranteed residual values of $14,972 thousand for sales type leases, which have been sold and accounted for as sales. |
(2) |
Year ending March 31, 2022 | $ | 36,900 | ||
2023 | 16,358 | |||
2024 | 9,628 | |||
2025 | 3,356 | |||
2026 and thereafter | 2,151 | |||
Total | $ | 68,393 |
March 31, 2016 | March 31, 2015 | March 31, 2021 | March 31, 2020 | |||||||||||||
Cost of equipment under operating leases | $ | 36,635 | $ | 36,283 | $ | 18,748 | $ | 21,276 | ||||||||
Accumulated depreciation | (18,897 | ) | (18,354 | ) | (7,870 | ) | (11,159 | ) | ||||||||
Investment in operating lease equipment—net (1) | $ | 17,738 | $ | 17,929 | $ | 10,878 | $ | 10,117 |
(1) | Amounts include estimated unguaranteed residual values of |
Year ending March 31, 2017 | $ | 8,293 | ||
2018 | 5,935 | |||
2019 | 2,501 | |||
2020 | 1,025 | |||
2021 and thereafter | 755 | |||
Total | $ | 18,509 |
Year ending March 31, 2022 | $ | 4,744 | ||
2023 | 3,756 | |||
2024 | 1,034 | |||
2025 | 37 | |||
Total | $ | 9,571 |
5. | LESSEE ACCOUNTING |
Year Ended March 31, | ||||||||
Lease term and Discount Rate | 2021 | 2020 | ||||||
Weighted average remaining lease term (months) | 32 | 38 | ||||||
Weighted average discount rate | 3.7 | % | 3.9 | % |
Year ending March 31, 2022 | $ | 4,006 | ||
2023 | 3,166 | |||
2024 | 1,323 | |||
2025 | 884 | |||
2026 | 34 | |||
Total lease payments | 9,413 | |||
Less: interest | (439 | ) | ||
Present value of lease liabilities | $ | 8,974 |
6. | GOODWILL AND OTHER INTANGIBLE ASSETS |
March 31, 2016 | March 31, 2015 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization / Impairment Loss | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization / Impairment Loss | Net Carrying Amount | |||||||||||||||||||
Goodwill | $ | 50,824 | $ | (8,673 | ) | $ | 42,151 | $ | 42,785 | $ | (8,673 | ) | $ | 34,112 | ||||||||||
Customer relationships & other intangibles | 20,401 | (9,193 | ) | 11,208 | 12,005 | (6,560 | ) | 5,445 | ||||||||||||||||
Capitalized software development | 2,709 | (1,914 | ) | 795 | 2,693 | (1,452 | ) | 1,241 | ||||||||||||||||
Total | $ | 73,934 | $ | (19,780 | ) | $ | 54,154 | $ | 57,483 | $ | (16,685 | ) | $ | 40,798 |
March 31, 2021 | March 31, 2020 | |||||||||||||||||||||||
Goodwill | Accumulated Impairment Loss | Net Carrying Amount | Goodwill | Accumulated Impairment Loss | Net Carrying Amount | |||||||||||||||||||
Beginning balance | $ | 126,770 | $ | (8,673 | ) | $ | 118,097 | $ | 119,480 | $ | (8,673 | ) | $ | 110,807 | ||||||||||
Acquisitions | 8,328 | - | 8,328 | 7,410 | - | 7,410 | ||||||||||||||||||
Foreign currency translations | 220 | - | 220 | (120 | ) | - | (120 | ) | ||||||||||||||||
Ending balance | $ | 135,318 | $ | (8,673 | ) | $ | 126,645 | $ | 126,770 | $ | (8,673 | ) | $ | 118,097 |
March 31, 2021 | March 31, 2020 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
Customer relationships & other intangibles | $ | 77,335 | $ | (42,115 | ) | $ | 35,220 | $ | 63,006 | $ | (33,000 | ) | $ | 30,006 | ||||||||||
Capitalized software development | 10,553 | (7,159 | ) | 3,394 | 10,385 | (5,927 | ) | 4,458 | ||||||||||||||||
Total | $ | 87,888 | $ | (49,274 | ) | $ | 38,614 | $ | 73,391 | $ | (38,927 | ) | $ | 34,464 |
Year ending March 31, 2022 | $ | 10,073 | ||
2023 | 8,028 | |||
2024 | 6,218 | |||
2025 | 4,647 | |||
2026 and thereafter | 6,254 | |||
Total | $ | 35,220 |
7. | ALLOWANCE FOR CREDIT LOSSES |
Accounts Receivable | Notes Receivable | Lease-Related Receivables | Total | Accounts Receivable | Notes Receivable | Lease Receivables | Total | |||||||||||||||||||||||||
Balance April 1, 2015 | $ | 1,169 | $ | 3,573 | $ | 881 | $ | 5,623 | ||||||||||||||||||||||||
Balance as of March 31, 2018 | $ | 1,538 | $ | 486 | $ | 640 | $ | 2,664 | ||||||||||||||||||||||||
Provision for credit losses | 126 | (172 | ) | (196 | ) | (242 | ) | 195 | 250 | (110 | ) | 335 | ||||||||||||||||||||
Write-offs and other | (168 | ) | (20 | ) | - | (188 | ) | (154 | ) | (231 | ) | 0 | (385 | ) | ||||||||||||||||||
Balance March 31, 2016 | $ | 1,127 | $ | 3,381 | $ | 685 | $ | 5,193 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Provision for credit losses | 367 | 503 | 566 | 1,436 | ||||||||||||||||||||||||||||
Write-offs and other | (84 | ) | (89 | ) | (5 | ) | (178 | ) | ||||||||||||||||||||||||
Balance as of March 31, 2021 | $ | 2,064 | $ | 1,212 | $ | 1,171 | $ | 4,447 |
Accounts Receivable | Notes Receivable | Lease-Related Receivables | Total | |||||||||||||
Balance April 1, 2014 | $ | 1,364 | $ | 3,364 | $ | 1,024 | $ | 5,752 | ||||||||
Provision for credit losses | 28 | 209 | (112 | ) | 125 | |||||||||||
Write-offs and other | (223 | ) | - | (31 | ) | (254 | ) | |||||||||
Balance March 31, 2015 | $ | 1,169 | $ | 3,573 | $ | 881 | $ | 5,623 |
Accounts Receivable | Notes Receivable | Lease-Related Receivables | Total | |||||||||||||
Balance April 1, 2013 | $ | 1,147 | $ | 3,137 | $ | 845 | $ | 5,129 | ||||||||
Provision for credit losses | 344 | 227 | 179 | 750 | ||||||||||||
Write-offs and other | (127 | ) | - | - | (127 | ) | ||||||||||
Balance March 31, 2014 | $ | 1,364 | $ | 3,364 | $ | 1,024 | $ | 5,752 |
March 31, 2020 | ||||||||
Notes Receivable | Lease- Receivables | |||||||
Allowance for credit losses: | ||||||||
Ending balance: collectively evaluated for impairment | $ | 736 | $ | 610 | ||||
Ending balance: individually evaluated for impairment | 62 | 0 | ||||||
Ending balance | $ | 798 | $ | 610 | ||||
Minimum payments: | ||||||||
Ending balance: collectively evaluated for impairment | $ | 55,005 | $ | 69,492 | ||||
Ending balance: individually evaluated for impairment | 412 | 0 | ||||||
Ending balance | $ | 55,417 | $ | 69,492 |
March 31, 2016 | March 31, 2015 | |||||||||||||||
Notes Receivable | Lease- Related Receivables | Notes Receivable | Lease- Related Receivables | |||||||||||||
Reserves for credit losses: | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 279 | $ | 562 | $ | 440 | $ | 740 | ||||||||
Ending balance: individually evaluated for impairment | 3,102 | 123 | 3,133 | 141 | ||||||||||||
Ending balance | $ | 3,381 | $ | 685 | $ | 3,573 | $ | 881 | ||||||||
Minimum payments: | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 41,340 | $ | 66,161 | $ | 56,525 | $ | 66,255 | ||||||||
Ending balance: individually evaluated for impairment | 3,102 | 142 | 3,418 | 160 | ||||||||||||
Ending balance | $ | 44,442 | $ | 66,303 | $ | 59,943 | $ | 66,415 |
Amortized cost basis by origination year ending March 31, | ||||||||||||||||||||||||||||||||
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 | |||||||||||||||
Average CQR | 7,689 | 2,468 | 550 | 8 | 0 | 10,715 | (2,896 | ) | 7,819 | |||||||||||||||||||||||
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 | |||||||||||||||
Lease receivables: | ||||||||||||||||||||||||||||||||
High CQR | $ | 28,898 | $ | 5,885 | $ | 1,798 | $ | 463 | $ | 125 | $ | 37,169 | $ | (7,468 | ) | $ | 29,701 | |||||||||||||||
Average CQR | 23,445 | 3,482 | 1,017 | 270 | 40 | 28,254 | (4,592 | ) | 23,662 | |||||||||||||||||||||||
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 | |||||||||||||||
Total amortized cost (1) | $ | 153,825 | $ | 18,085 | $ | 4,458 | $ | 1,512 | $ | 184 | $ | 178,064 | $ | (78,427 | ) | $ | 99,637 |
(1) | Unguaranteed residual values of $9,453 thousand that we retained after selling the related lease receivable and initial direct costs of notes receivable of $425 thousand are excluded from amortized cost. |
(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 | 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 | |||||||||||||||||||||||||||||||
March 31, 2016 | ||||||||||||||||||||||||||||||||||||||||
High CQR | $ | 575 | $ | 52 | $ | 94 | $ | 721 | $ | 984 | $ | 46,157 | $ | 47,862 | $ | (2,705 | ) | $ | (22,914 | ) | $ | 22,243 | ||||||||||||||||||
Average CQR | 15 | 17 | 78 | 110 | 159 | 18,030 | 18,299 | (1,387 | ) | (8,714 | ) | 8,198 | ||||||||||||||||||||||||||||
Low CQR | - | - | 142 | 142 | - | - | 142 | (19 | ) | - | 123 | |||||||||||||||||||||||||||||
Total | $ | 590 | $ | 69 | $ | 314 | $ | 973 | $ | 1,143 | $ | 64,187 | $ | 66,303 | $ | (4,111 | ) | $ | (31,628 | ) | $ | 30,564 | ||||||||||||||||||
March 31, 2015 | �� | |||||||||||||||||||||||||||||||||||||||
High CQR | $ | 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 | ||||||||||||||||||||||||||||
Low CQR | - | - | - | - | - | 160 | 160 | (19 | ) | - | 141 | |||||||||||||||||||||||||||||
Total | $ | 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 | > 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 | ||||||||||||||||
Lease receivables | 804 | 132 | 643 | 1,579 | 2,566 | 4,145 | 61,278 | 65,423 | ||||||||||||||||||||||||
Total | $ | 1,452 | $ | 1,042 | $ | 1,316 | $ | 3,810 | $ | 5,806 | $ | 9,616 | $ | 168,448 | $ | 178,064 |
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 | |||||||||||||||||||||||||||||||
High CQR | $ | 951 | $ | 105 | $ | 922 | $ | 1,978 | $ | 1,181 | $ | 33,581 | $ | 36,740 | $ | (4,766 | ) | $ | (19,823 | ) | $ | 12,151 | ||||||||||||||||||
Average CQR | 46 | 107 | 112 | 265 | 1,106 | 31,381 | 32,752 | (3,646 | ) | (18,693 | ) | 10,413 | ||||||||||||||||||||||||||||
Low CQR | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
Total | $ | 997 | $ | 212 | $ | 1,034 | $ | 2,243 | $ | 2,287 | $ | 64,962 | $ | 69,492 | $ | (8,412 | ) | $ | (38,516 | ) | $ | 22,564 |
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 | ||||||||||||||||||||||||||||
High CQR | $ | 1,332 | $ | 2 | $ | 280 | $ | 1,614 | $ | 2,878 | $ | 29,057 | $ | 33,549 | $ | (18,341 | ) | $ | 15,208 | |||||||||||||||||
Average CQR | 140 | 44 | 142 | 326 | 1,135 | 19,995 | 21,456 | (16,636 | ) | 4,820 | ||||||||||||||||||||||||||
Low CQR | 63 | 0 | 152 | 215 | 0 | 197 | 412 | 0 | 412 | |||||||||||||||||||||||||||
Total | $ | 1,535 | $ | 46 | $ | 574 | $ | 2,155 | $ | 4,013 | $ | 49,249 | $ | 55,417 | $ | (34,977 | ) | $ | 20,440 |
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 | ||||||||||||||||||||||||||||
March 31, 2016 | ||||||||||||||||||||||||||||||||||||
High CQR | $ | 399 | $ | 305 | $ | 2,168 | $ | 2,872 | $ | 301 | $ | 24,092 | $ | 27,265 | $ | (11,644 | ) | $ | 15,621 | |||||||||||||||||
Average CQR | - | - | - | - | 202 | 13,873 | 14,075 | (9,942 | ) | 4,133 | ||||||||||||||||||||||||||
Low CQR | - | - | 3,102 | 3,102 | - | - | 3,102 | - | 3,102 | |||||||||||||||||||||||||||
Total | $ | 399 | $ | 305 | $ | 5,270 | $ | 5,974 | $ | 503 | $ | 37,965 | $ | 44,442 | $ | (21,586 | ) | $ | 22,856 | |||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||||||||
High CQR | $ | 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 | ||||||||||||||||||||||||||
Low CQR | - | - | 656 | 656 | - | 2,762 | 3,418 | - | 3,418 | |||||||||||||||||||||||||||
Total | $ | 395 | $ | 260 | $ | 817 | $ | 1,472 | $ | 2,831 | $ | 55,640 | $ | 59,943 | $ | (29,920 | ) | $ | 30,023 |
8. | PROPERTY, EQUIPMENT, AND OTHER ASSETS AND LIABILITIES |
March 31, 2016 | March 31, 2015 | March 31, 2021 | March 31, 2020 | |||||||||||||
Furniture, fixtures and equipment | $ | 15,033 | $ | 13,781 | $ | 26,612 | $ | 24,657 | ||||||||
Leasehold improvements | 6,918 | 6,964 | ||||||||||||||
Capitalized software | 4,153 | 3,513 | ||||||||||||||
Vehicles | 370 | 370 | 546 | 315 | ||||||||||||
Capitalized software | 4,018 | 4,007 | ||||||||||||||
Leasehold improvements | 3,978 | 3,497 | ||||||||||||||
Total assets | 23,399 | 21,655 | 38,229 | 35,449 | ||||||||||||
Accumulated depreciation and amortization | (17,133 | ) | (15,528 | ) | (30,841 | ) | (28,296 | ) | ||||||||
Property and equipment - net | $ | 6,266 | $ | 6,127 | $ | 7,388 | $ | 7,153 |
March 31, 2021 | March 31, 2020 | |||||||
Other current assets: | ||||||||
Deposits & funds held in escrow | $ | 759 | $ | 926 | ||||
Prepaid assets | 9,939 | 7,946 | ||||||
Other | 278 | 384 | ||||||
Total | $ | 10,976 | $ | 9,256 | ||||
Property, equipment and other assets: | ||||||||
Property and equipment, net | $ | 7,388 | $ | 7,153 | ||||
Deferred costs - non-current | 19,063 | 10,957 | ||||||
Right-of-use assets | 8,763 | 13,066 | ||||||
Other | 7,075 | 1,420 | ||||||
Total | $ | 42,289 | $ | 32,596 | ||||
Other current liabilities: | ||||||||
Accrued expenses | $ | 13,598 | $ | 10,024 | ||||
Accrued income taxes payable | 4,439 | 406 | ||||||
Contingent consideration - current | 0 | 220 | ||||||
Short-term lease liability | 3,934 | 4,815 | ||||||
Other | 8,090 | 7,521 | ||||||
Total | $ | 30,061 | $ | 22,986 | ||||
Other liabilities: | ||||||||
Deferred revenue - non-current | $ | 26,309 | $ | 16,693 | ||||
Long-term lease liability | 5,040 | 8,326 | ||||||
Other | 5,330 | 2,708 | ||||||
Total | $ | 36,679 | $ | 27,727 |
9. | NOTES PAYABLE AND CREDIT FACILITY |
March 31, 2016 | March 31, 2015 | |||||||
Other current assets: | ||||||||
Deposits & funds held in escrow | $ | 3,116 | $ | 4,281 | ||||
Prepaid assets | 6,683 | 2,652 | ||||||
Other | 850 | 480 | ||||||
Total other current assets | $ | 10,649 | $ | 7,413 | ||||
Other assets: | ||||||||
Deferred costs | $ | 1,831 | $ | 2,308 | ||||
Property and equipment, net | 6,266 | 6,127 | ||||||
Other | 547 | 813 | ||||||
Total other assets - long term | $ | 8,644 | $ | 9,248 |
March 31, 2016 | March 31, 2015 | |||||||
Other current liabilities: | ||||||||
Accrued expenses | $ | 7,109 | $ | 5,302 | ||||
Deferred compensation | - | 222 | ||||||
Other | 6,009 | 8,051 | ||||||
Total other current liabilities | $ | 13,118 | $ | 13,575 | ||||
Other liabilities: | ||||||||
Deferred revenue | $ | 1,866 | $ | 2,923 | ||||
Other | 397 | 890 | ||||||
Total other liabilities - long term | $ | 2,263 | $ | 3,813 |
March 31, 2016 | March 31, 2015 | |||||||
Recourse notes payable with interest rates ranging from 2.70% and 4.13% at March 31, 2016 and ranging from 2.24% and 4.13% at March 31, 2015. | ||||||||
Current | $ | 2,288 | $ | 889 | ||||
Long-term | 1,054 | 2,801 | ||||||
Total recourse notes payable | $ | 3,342 | $ | 3,690 | ||||
Non-recourse notes payable secured by financing receivables and investments in operating leases with interest rates ranging from 1.70% to 8.50% at March 31, 2016 and ranging from 1.70% to 10.00% as of March 31, 2015. | ||||||||
Current | $ | 26,042 | $ | 28,560 | ||||
Long-term | 18,038 | 24,314 | ||||||
Total non-recourse notes payable | $ | 44,080 | $ | 52,874 |
Recourse Notes Payable | Non-Recourse Notes Payable | |||||||
Year ending March 31, 2017 | $ | 2,288 | $ | 26,042 | ||||
2018 | 1,054 | 12,513 | ||||||
2019 | - | 3,988 | ||||||
2020 | - | 1,055 | ||||||
2021 and thereafter | - | 482 | ||||||
$ | 3,342 | $ | 44,080 |
Contractual Obligations | ||||
Year ending March 31, 2017 | $ | 4,207 | ||
2018 | 3,393 | |||
2019 | 1,875 | |||
2020 | 951 | |||
2021 and thereafter | 382 | |||
Operating lease obligations (1) | $ | 10,808 |
10. |
11. | EARNINGS PER SHARE |
Year Ended March 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Basic and diluted common shares outstanding: | ||||||||||||
Weighted average common shares outstanding — basic | 7,256 | 7,318 | 7,927 | |||||||||
Effect of dilutive shares | 88 | 75 | 72 | |||||||||
Weighted average shares common outstanding — diluted | 7,344 | 7,393 | 7,999 | |||||||||
Calculation of earnings per common share - basic: | ||||||||||||
Net earnings | $ | 44,747 | $ | 45,840 | $ | 35,273 | ||||||
Net earnings attributable to participating securities | - | 59 | 307 | |||||||||
Net earnings attributable to common shareholders | $ | 44,747 | $ | 45,781 | $ | 34,966 | ||||||
Earnings per common share - basic | $ | 6.17 | $ | 6.26 | $ | 4.41 | ||||||
Calculation of earnings per common share - diluted: | ||||||||||||
Net earnings attributable to common shareholders— basic | $ | 44,747 | $ | 45,781 | $ | 34,966 | ||||||
Add: undistributed earnings attributable to participating securities | - | 1 | 3 | |||||||||
Net earnings attributable to common shareholders— diluted | $ | 44,747 | $ | 45,782 | $ | 34,969 | ||||||
Earnings per common share - diluted | $ | 6.09 | $ | 6.19 | $ | 4.37 |
2021 | 2020 | 2019 | ||||||||||
Net earnings attributable to common shareholders - basic and diluted | $ | 74,397 | $ | 69,082 | $ | 63,192 | ||||||
Basic and diluted common shares outstanding: | ||||||||||||
Weighted average common shares outstanding — basic | 13,337 | 13,327 | 13,448 | |||||||||
Effect of dilutive shares | 80 | 88 | 130 | |||||||||
Weighted average shares common outstanding — diluted | 13,417 | 13,415 | 13,578 | |||||||||
Earnings per common share - basic | $ | 5.58 | $ | 5.18 | $ | 4.70 | ||||||
Earnings per common share - diluted | $ | 5.54 | $ | 5.15 | $ | 4.65 |
12. | STOCKHOLDERS’ EQUITY |
13. | SHARE-BASED COMPENSATION |
Number of Shares | Weighted Average Grant-date Fair Value | |||||||
Nonvested April 1, 2020 | 193,580 | $ | 73.74 | |||||
Granted | 100,210 | $ | 71.89 | |||||
Vested | (110,412 | ) | $ | 70.03 | ||||
Forfeited | 0 | $ | 0 | |||||
Nonvested March 31, 2021 | 183,378 | $ | 74.97 |
Number of Shares | Weighted Average Grant- date Fair Value | |||||||
Non-vested April 1, 2015 | 176,514 | $ | 52.75 | |||||
Granted | 125,562 | $ | 81.78 | |||||
Vested | (95,927 | ) | $ | 48.87 | ||||
Forfeited | (2,321 | ) | $ | 64.06 | ||||
Non-vested March 31, 2016 | 203,828 | $ | 72.33 |
14. | INCOME TAXES |
Year Ended March 31, | ||||||||
2016 | 2015 | |||||||
Beginning balance | $ | 72 | $ | 149 | ||||
Reductions to uncertain tax positions | - | (77 | ) | |||||
Ending balance | $ | 72 | $ | 72 |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2021 | 2020 | 2019 | |||||||||||||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||||||
Income tax expense computed at the U.S. statutory federal rate | $ | 26,513 | $ | 27,410 | $ | 21,040 | $ | 22,450 | $ | 20,182 | $ | 18,139 | ||||||||||||
Effect of federal reduction of statutory rate | 0 | 0 | 0 | |||||||||||||||||||||
State income tax expense—net of federal benefit | 3,544 | 4,193 | 3,080 | 6,941 | 5,659 | 4,795 | ||||||||||||||||||
Non-deductible executive compensation | 331 | 222 | 248 | 2,052 | 613 | 630 | ||||||||||||||||||
Other | 616 | 648 | 457 | 1,066 | 423 | (526 | ) | |||||||||||||||||
Provision for income taxes | $ | 31,004 | $ | 32,473 | $ | 24,825 | $ | 32,509 | $ | 26,877 | $ | 23,038 | ||||||||||||
Effective income tax rate | 40.9 | % | 41.5 | % | 41.3 | % | 30.4 | % | 28.0 | % | 26.7 | % |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2021 | 2020 | 2019 | |||||||||||||||||||
Current: | ||||||||||||||||||||||||
Federal | $ | 21,361 | $ | 27,665 | $ | 23,313 | $ | 26,054 | $ | 19,367 | $ | 12,709 | ||||||||||||
State | 6,114 | 6,667 | 5,033 | 9,882 | 9,520 | 6,591 | ||||||||||||||||||
Foreign | 13 | 3 | 15 | 770 | 200 | 454 | ||||||||||||||||||
Total current expense | 27,488 | 34,335 | 28,361 | 36,706 | 29,087 | 19,754 | ||||||||||||||||||
Deferred: | ||||||||||||||||||||||||
Federal | 3,727 | (1,591 | ) | (3,274 | ) | (3,067 | ) | (492 | ) | 3,826 | ||||||||||||||
State | (211 | ) | (271 | ) | (262 | ) | (1,096 | ) | (1,799 | ) | (249 | ) | ||||||||||||
Foreign | (34 | ) | 81 | (293 | ) | |||||||||||||||||||
Total deferred expense (benefit) | 3,516 | (1,862 | ) | (3,536 | ) | (4,197 | ) | (2,210 | ) | 3,284 | ||||||||||||||
Provision for income taxes | $ | 31,004 | $ | 32,473 | $ | 24,825 | $ | 32,509 | $ | 26,877 | $ | 23,038 |
March 31, | ||||||||
2016 | 2015 | |||||||
Deferred Tax Assets: | ||||||||
Accrued vacation | $ | 2,116 | $ | 1,955 | ||||
Deferred compensation | - | 89 | ||||||
Deferred revenue | 1,046 | 369 | ||||||
Foreign net operating loss carryforward | 461 | - | ||||||
Reserve for credit losses | 1,929 | 2,066 | ||||||
Restricted stock | 1,778 | 1,431 | ||||||
Other credits and carryforwards | 1,275 | 1,235 | ||||||
Other accruals and reserves | 1,556 | 687 | ||||||
Gross deferred tax assets | 10,161 | 7,832 | ||||||
Less: valuation allowance | (1,270 | ) | (1,223 | ) | ||||
Net deferred tax assets | 8,891 | 6,609 | ||||||
Deferred Tax Liabilities: | ||||||||
Basis difference in fixed assets | (1,170 | ) | (1,238 | ) | ||||
Basis difference in operating leases | (7,749 | ) | (2,356 | ) | ||||
Basis difference in tax deductible goodwill | (2,973 | ) | (2,411 | ) | ||||
Total deferred tax liabilities | (11,892 | ) | (6,005 | ) | ||||
Net deferred tax (liabilities) assets | $ | (3,001 | ) | $ | 604 |
March 31, | ||||||||
2021 | 2020 | |||||||
Deferred tax assets: | ||||||||
Accrued vacation | $ | 2,537 | $ | 1,966 | ||||
Deferred revenue | 4,227 | 3,175 | ||||||
Allowance for credit losses | 1,048 | 792 | ||||||
Restricted stock | 772 | 1,575 | ||||||
Other deferred tax assets | 1,552 | 608 | ||||||
Accrued bonus | 2,277 | 2,426 | ||||||
Lease liabilities | 2,476 | 2,550 | ||||||
Other credits and carryforwards | 0 | 1,385 | ||||||
Gross deferred tax assets | 14,889 | 14,477 | ||||||
Less: valuation allowance | 0 | (1,385 | ) | |||||
Net deferred tax assets | 14,889 | 13,092 | ||||||
Deferred tax liabilities: | ||||||||
Property and equipment | (2,391 | ) | (2,102 | ) | ||||
Operating leases | (6,948 | ) | (10,098 | ) | ||||
Prepaid expenses | (912 | ) | (817 | ) | ||||
Right-of-use assets | (2,419 | ) | (2,535 | ) | ||||
Tax deductible goodwill | (751 | ) | (270 | ) | ||||
Total deferred tax liabilities | (13,421 | ) | (15,822 | ) | ||||
Net deferred tax asset (liability) | $ | 1,468 | $ | (2,730 | ) |
15. | FAIR VALUE MEASUREMENTS |
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, 2021 | ||||||||||||||||
Assets: | ||||||||||||||||
Money market funds | $ | 45,134 | $ | 45,134 | $ | 0 | $ | 0 | ||||||||
March 31, 2020 | ||||||||||||||||
Assets: | ||||||||||||||||
Money market funds | $ | 128 | $ | 128 | $ | 0 | $ | 0 | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 220 | $ | 0 | $ | 0 | $ | 220 |
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, 2016 | ||||||||||||||||
Assets: | ||||||||||||||||
Money market funds | $ | 39,509 | $ | 39,509 | $ | - | $ | - | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 1,041 | $ | - | $ | - | $ | 1,041 | ||||||||
March 31, 2015 | ||||||||||||||||
Assets: | ||||||||||||||||
Money market funds | $ | 25,004 | $ | 25,004 | $ | - | $ | - | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 1,830 | $ | - | $ | - | $ | 1,830 |
Acquisition Date Amount | ||||
Accounts receivable—trade, net | $ | 8,457 | ||
Property and equipment | 81 | |||
Identified intangible assets | 8,710 | |||
Accounts payable and other current liabilities | (8,641 | ) | ||
Deferred tax liability | (89 | ) | ||
Total identifiable net assets | 8,518 | |||
Goodwill | 8,131 | |||
Total purchase consideration | $ | 16,649 |
Acquisition Date Amount | ||||
Accounts receivable | $ | 14,526 | ||
Other assets | 3,344 | |||
Identified intangible assets | 14,280 | |||
Accounts payable and other current liabilities | (11,424 | ) | ||
Performance obligations | (2,020 | ) | ||
Total identifiable net assets | 18,706 | |||
Goodwill | 8,328 | |||
Total purchase consideration | $ | 27,034 |
Estimated Useful Lives (in years) | Acquisition Date Amount | |||||||
Intangible assets—customer relationships | 7 | $ | 7,680 | |||||
Intangible assets—trade names | 10 | 520 | ||||||
Intangible assets—backlog | 1 | 510 | ||||||
Total identified intangible assets | $ | 8,710 |
Acquisition Date Amount | ||||
Accounts receivable | $ | 9,208 | ||
Other assets | 743 | |||
Identified intangible assets | 5,720 | |||
Accounts payable and other current liabilities | (6,715 | ) | ||
Performance obligation | (1,140 | ) | ||
Total identifiable net assets | 7,816 | |||
Goodwill | 7,461 | |||
Total purchase consideration | $ | 15,277 |
Acquisition Date Amount | ||||
Accounts receivable | $ | 10,209 | ||
Other assets | 1,050 | |||
Identified intangible assets | 18,190 | |||
Accounts payable and other current liabilities | (8,611 | ) | ||
Performance obligation | (5,110 | ) | ||
Total identifiable net assets | 15,728 | |||
Goodwill | 34,301 | |||
Total purchase consideration | $ | 50,029 |
17. | SEGMENT REPORTING |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statement of Operations | Technology | Financing | Total | Technology | Financing | Total | Technology | Financing | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Technology | Financing | Total | Technology | Financing | Total | Technology | Financing | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales of product and services | $ | 1,163,337 | $ | - | $ | 1,163,337 | $ | 1,100,884 | $ | - | $ | 1,100,884 | $ | 1,013,374 | $ | - | $ | 1,013,374 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing revenue | - | 35,091 | 35,091 | - | 34,728 | 34,728 | - | 35,896 | 35,896 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fee and other income | 5,728 | 43 | 5,771 | 7,565 | 105 | 7,670 | 8,037 | 229 | 8,266 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product | $ | 1,305,789 | $ | 60,369 | $ | 1,366,158 | $ | 1,337,022 | $ | 58,266 | $ | 1,395,288 | $ | 1,180,042 | $ | 43,153 | $ | 1,223,195 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service | 202,165 | 0 | 202,165 | 193,116 | 0 | 193,116 | 149,478 | 0 | 149,478 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | 1,169,065 | 35,134 | 1,204,199 | 1,108,449 | 34,833 | 1,143,282 | 1,021,411 | 36,125 | 1,057,536 | 1,507,954 | 60,369 | 1,568,323 | 1,530,138 | 58,266 | 1,588,404 | 1,329,520 | 43,153 | 1,372,673 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales, product and services | 931,782 | - | 931,782 | 887,673 | - | 887,673 | 827,875 | - | 827,875 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct lease costs | - | 10,360 | 10,360 | - | 11,062 | 11,062 | - | 12,748 | 12,748 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 931,782 | 10,360 | 942,142 | 887,673 | 11,062 | 898,735 | 827,875 | 12,748 | 840,623 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of Sales | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product | 1,036,627 | 13,050 | 1,049,677 | 1,069,110 | 7,663 | 1,076,773 | 945,037 | 7,427 | 952,464 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service | 125,092 | 0 | 125,092 | 120,440 | 0 | 120,440 | 89,821 | 0 | 89,821 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of sales | 1,161,719 | 13,050 | 1,174,769 | 1,189,550 | 7,663 | 1,197,213 | 1,034,858 | 7,427 | 1,042,285 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Profit | 346,235 | 47,319 | 393,554 | 340,588 | 50,603 | 391,191 | 294,662 | 35,726 | 330,388 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Professional and other fees | 5,505 | 1,041 | 6,546 | 5,340 | 1,168 | 6,508 | 7,557 | 1,484 | 9,041 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | 140,086 | 9,218 | 149,304 | 128,945 | 9,141 | 138,086 | 113,481 | 9,670 | 123,151 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 22,401 | 729 | 23,130 | 21,127 | 1,404 | 22,531 | 18,334 | 1,549 | 19,883 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general, and administrative | 256,210 | 15,053 | 271,263 | 264,123 | 15,059 | 279,182 | 226,112 | 10,970 | 237,082 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 5,532 | 16 | 5,548 | 4,310 | 23 | 4,333 | 2,769 | 23 | 2,792 | 13,839 | 112 | 13,951 | 14,016 | 140 | 14,156 | 11,812 | 12 | 11,824 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest and financing costs | 70 | 1,708 | 1,778 | 96 | 2,283 | 2,379 | 84 | 1,864 | 1,948 | 521 | 1,484 | 2,005 | 294 | 2,280 | 2,574 | 0 | 1,948 | 1,948 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | 173,594 | 12,712 | 186,306 | 159,818 | 14,019 | 173,837 | 142,225 | 14,590 | 156,815 | 270,570 | 16,649 | 287,219 | 278,433 | 17,479 | 295,912 | 237,924 | 12,930 | 250,854 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 63,689 | $ | 12,062 | $ | 75,751 | $ | 60,958 | $ | 9,752 | $ | 70,710 | $ | 51,311 | $ | 8,787 | $ | 60,098 | 75,665 | 30,670 | 106,335 | 62,155 | 33,124 | 95,279 | 56,738 | 22,796 | 79,534 | |||||||||||||||||||||||||||||||||||||||||||||
Other income | 571 | 680 | 6,696 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings before tax | $ | 106,906 | $ | 95,959 | $ | 86,230 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contracts with customers | $ | 1,484,104 | $ | 12,369 | $ | 1,496,473 | $ | 1,514,507 | $ | 4,589 | $ | 1,519,096 | $ | 1,308,405 | $ | 3,577 | $ | 1,311,982 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing and other | 23,850 | 48,000 | 71,850 | 15,631 | 53,677 | 69,308 | 21,115 | 39,576 | 60,691 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | $ | 1,507,954 | $ | 60,369 | $ | 1,568,323 | $ | 1,530,138 | $ | 58,266 | $ | 1,588,404 | $ | 1,329,520 | $ | 43,153 | $ | 1,372,673 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Financial Data - Statement of Cash Flow | Selected Financial Data - Statement of Cash Flow | Selected Financial Data - Statement of Cash Flow | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | $ | 5,641 | $ | 10,339 | $ | 15,980 | $ | 4,450 | $ | 11,125 | $ | 15,575 | $ | 2,838 | $ | 11,917 | $ | 14,755 | $ | 14,568 | $ | 5,423 | $ | 19,991 | $ | 14,516 | $ | 4,640 | $ | 19,156 | $ | 12,661 | $ | 5,978 | $ | 18,639 | ||||||||||||||||||||||||||||||||||||
Purchases of property, equipment and operating lease equipment | $ | 2,442 | $ | 12,026 | $ | 14,468 | $ | 3,610 | $ | 8,306 | $ | 11,916 | $ | 4,238 | $ | 5,714 | $ | 9,952 | $ | 4,752 | $ | 6,761 | $ | 11,513 | $ | 4,842 | $ | 2,167 | $ | 7,009 | $ | 6,042 | $ | 5,587 | $ | 11,629 | ||||||||||||||||||||||||||||||||||||
Selected Financial Data - Balance Sheet | Selected Financial Data - Balance Sheet | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Financial Data - Balance Sheet | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 427,580 | $ | 189,100 | $ | 616,680 | $ | 368,971 | $ | 199,304 | $ | 568,275 | $ | 335,879 | $ | 217,966 | $ | 553,845 | $ | 828,576 | $ | 248,199 | $ | 1,076,775 | $ | 709,854 | $ | 199,259 | $ | 909,113 | $ | 607,998 | $ | 178,200 | $ | 786,198 |
Year Ended March 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Customer end market: | ||||||||||||
Technology | $ | 251,683 | $ | 324,239 | $ | 293,362 | ||||||
Telecom, Media & Entertainment | 371,913 | 289,958 | 175,260 | |||||||||
Financial Services | 198,761 | 191,679 | 202,074 | |||||||||
State and local government and educational institutions | 245,919 | 243,092 | 223,330 | |||||||||
Healthcare | 200,067 | 233,894 | 193,754 | |||||||||
All others | 239,611 | 247,276 | 241,740 | |||||||||
Net sales | 1,507,954 | 1,530,138 | 1,329,520 | |||||||||
Less: Revenue from financing and other | (23,850 | ) | (15,631 | ) | (21,115 | ) | ||||||
Revenue from contracts with customers | $ | 1,484,104 | $ | 1,514,507 | $ | 1,308,405 |
Year Ended March 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Vendor | ||||||||||||
Cisco Systems | $ | 537,041 | $ | 607,719 | $ | 556,182 | ||||||
NetApp | 58,020 | 59,812 | 48,858 | |||||||||
HP Inc. & HPE | 59,838 | 71,802 | 74,348 | |||||||||
Dell / EMC | 107,336 | 84,939 | 61,284 | |||||||||
Arista Networks | 51,789 | 75,281 | 57,850 | |||||||||
Juniper Networks | 91,946 | 68,339 | 48,943 | |||||||||
All others | 601,984 | 562,246 | 482,055 | |||||||||
Net sales | 1,507,954 | 1,530,138 | 1,329,520 | |||||||||
Less: Revenue from financing and other | (23,850 | ) | (15,631 | ) | (21,115 | ) | ||||||
Revenue from contracts with customers | $ | 1,484,104 | $ | 1,514,507 | $ | 1,308,405 |
Year Ended March 31, | Year Ended March 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2021 | 2020 | 2019 | |||||||||||||||||||
Net sales: | ||||||||||||||||||||||||
U.S. | $ | 1,186,904 | $ | 1,124,371 | $ | 1,042,446 | ||||||||||||||||||
Non U.S. | 17,295 | 18,911 | 15,090 | |||||||||||||||||||||
US | $ | 1,476,466 | $ | 1,508,329 | $ | 1,284,482 | ||||||||||||||||||
Non US | 91,857 | 80,075 | 88,191 | |||||||||||||||||||||
Total | $ | 1,204,199 | $ | 1,143,282 | $ | 1,057,536 | $ | 1,568,323 | $ | 1,588,404 | $ | 1,372,673 |
As of March 31, | March 31, | |||||||||||||||
2016 | 2015 | 2021 | 2020 | |||||||||||||
Long-lived tangible assets: | ||||||||||||||||
U.S. | $ | 22,632 | $ | 22,550 | ||||||||||||
Non U.S. | 1,427 | 1,608 | ||||||||||||||
US | $ | 33,504 | $ | 38,297 | ||||||||||||
Non US | 931 | 1,233 | ||||||||||||||
Total | $ | 24,059 | $ | 24,158 | $ | 34,435 | $ | 39,530 |
Year Ended March 31, 2016 | ||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Annual Amount | ||||||||||||||||
Net sales | $ | 269,866 | $ | 336,286 | $ | 298,644 | $ | 299,403 | $ | 1,204,199 | ||||||||||
Cost of sales | 210,736 | 264,365 | 234,584 | 232,457 | 942,142 | |||||||||||||||
Gross profit | 59,130 | 71,921 | 64,060 | 66,946 | 262,057 | |||||||||||||||
Operating expenses | 44,064 | 45,260 | 46,415 | 50,567 | 186,306 | |||||||||||||||
Operating income | 15,066 | 26,661 | 17,645 | 16,379 | 75,751 | |||||||||||||||
Earnings before provision for income taxes | 15,066 | 26,661 | 17,645 | 16,379 | 75,751 | |||||||||||||||
Provision for income taxes | 6,252 | 10,982 | 7,348 | 6,422 | 31,004 | |||||||||||||||
Net earnings | $ | 8,814 | $ | 15,679 | $ | 10,297 | $ | 9,957 | $ | 44,747 | ||||||||||
Net earnings per common share—Basic (1) | $ | 1.22 | $ | 2.16 | $ | 1.41 | $ | 1.37 | $ | 6.17 | ||||||||||
Net earnings per common share—Diluted (1) | $ | 1.21 | $ | 2.15 | $ | 1.40 | $ | 1.36 | $ | 6.09 |
Year Ended March 31, 2015 | ||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Annual Amount | ||||||||||||||||
Net sales | $ | 272,304 | $ | 297,472 | $ | 306,241 | $ | 267,265 | $ | 1,143,282 | ||||||||||
Cost of sales | 215,865 | 233,548 | 240,803 | 208,519 | 898,735 | |||||||||||||||
Gross profit | 56,439 | 63,924 | 65,438 | 58,746 | 244,547 | |||||||||||||||
Operating expenses | 41,697 | 43,598 | 44,876 | 43,666 | 173,837 | |||||||||||||||
Operating income | 14,742 | 20,326 | 20,562 | 15,080 | 70,710 | |||||||||||||||
Other income | 1,434 | - | 6,169 | - | 7,603 | |||||||||||||||
Earnings before provision for income taxes | 16,176 | 20,326 | 26,731 | 15,080 | 78,313 | |||||||||||||||
Provision for income taxes | 6,699 | 8,374 | 11,230 | 6,170 | 32,473 | |||||||||||||||
Net earnings | $ | 9,477 | $ | 11,952 | $ | 15,501 | $ | 8,910 | $ | 45,840 | ||||||||||
Net earnings per common share—Basic (1) | $ | 1.26 | $ | 1.63 | $ | 2.14 | $ | 1.23 | $ | 6.26 | ||||||||||
Net earnings per common share—Diluted (1) | $ | 1.25 | $ | 1.63 | $ | 2.13 | $ | 1.22 | $ | 6.19 |
Balance at Beginning of | Charged to Costs and | Deductions/ Write-Offs | Balance at End of Period | |||||||||||||
Allowance for Sales Returns: (1) | ||||||||||||||||
Year Ended March 31, 2014 | 543 | 1,079 | (1,030 | ) | 592 | |||||||||||
Year Ended March 31, 2015 | 592 | 1,009 | (988 | ) | 613 | |||||||||||
Year Ended March 31, 2016 | 613 | 1,500 | (1,460 | ) | 653 | |||||||||||
Reserve for Credit Losses: | ||||||||||||||||
Year Ended March 31, 2014 | 5,129 | 750 | (127 | ) | 5,752 | |||||||||||
Year Ended March 31, 2015 | 5,752 | 125 | (254 | ) | 5,623 | |||||||||||
Year Ended March 31, 2016 | 5,623 | (242 | ) | (188 | ) | 5,193 | ||||||||||
Valuation for Deferred Taxes: | ||||||||||||||||
Year Ended March 31, 2014 | 1,505 | (218 | ) | - | 1,287 | |||||||||||
Year Ended March 31, 2015 | 1,287 | (64 | ) | - | 1,223 | |||||||||||
Year Ended March 31, 2016 | 1,223 | 47 | - | 1,270 |
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, 2019 | 899 | 1,305 | (1,352 | ) | 852 | |||||||||||
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 | |||||||||||
Allowance for credit losses: | ||||||||||||||||
Year ended March 31, 2019 | 2,664 | 335 | (385 | ) | 2,614 | |||||||||||
Year ended March 31, 2020 | 2,614 | 1,004 | (429 | ) | 3,189 | |||||||||||
Year ended March 31, 2021 | 3,189 | 1,436 | (178 | ) | 4,447 | |||||||||||
Valuation for deferred taxes: | ||||||||||||||||
Year ended March 31, 2019 | 1,335 | (270 | ) | 0 | 1,065 | |||||||||||
Year ended March 31, 2020 | 1,065 | 320 | 0 | 1,385 | ||||||||||||
Year ended March 31, 2021 | 1,385 | 0 | (1,385 | ) | 0 |
(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 |