ePlus
Inc. (PLUS, Financial) filed Quarterly Report for the period ended 2009-06-30.
ePlus Inc. serves as the parent holding company for ePlus Group Inc. ePlus Technology of NC Inc. ePlus Technology of PA Inc. ePlus Technology Inc. ePlus Government Inc. ePlus Capital Inc. ePlus Systems Inc. ePlus Content Services Inc and MLC Leasing S.A. de C.V. ePlus
Inc. has a market cap of $133.25 million; its shares were traded at around $16.32 with a P/E ratio of 8.97 and P/S ratio of 0.19. ePlus
Inc. had an annual average earning growth of 10.2% over the past 10 years.
Total Revenues. We generated total revenues during the three months ended June 30, 2009 of $152.4 million compared to total revenues of $182.3 million during the three months June 30, 2008, a decrease of 16.4%.
Sales of product and services. Sales of product and services decreased 15.3% to $140.5 million during the three months ended June 30, 2009 as compared to $165.8 million during the three months June 30, 2008. The decrease in sales is primarily attributed to the economic downturn, which generally resulted in our customers tendency to postpone or cancel technology equipment investments, particularly in the beginning of the quarter ended June 30, 2009. Sales of product and services represented 92.1% and 90.9% of total revenue during the three months ended June 30, 2009 and 2008, respectively. Sales of product and services as a percentage of total revenue increased as a result of proportionately larger decreases in lease revenue as compared to the same period in the prior fiscal year.
Lease revenues. Lease revenues decreased 30.5% to $8.1 million for the three months ended June 30, 2009, as compared to $11.6 million during the three months June 30, 2008. This decrease is primarily due to fewer leases to generate lease revenues in our operating and direct financing lease portfolio and decreases in sales of leased assets to lessees. From time to time, our lessees purchase leased assets from us before and at the end of the lease term. These purchases by lessees fluctuate primarily based upon portfolio maturity dates and amounts. During the three months ended June 30, 2009, sales of leased assets to lessees decreased 61.1% to $0.9 million, compared to $2.3 million during the three months June 30, 2008.
Sales of leased equipment. We also recognize revenue from the sale of leased equipment to non-lessee third parties. Sales of leased equipment fluctuate from quarter to quarter, and are a component of our risk-mitigation process, which we conduct to diversify our portfolio by customer, equipment type, and residual value investments. During the three months ended June 30, 2009, sales of leased equipment increased 17.6% to $1.5 million, compared to $1.3 million during the three months June 30, 2008. Gross margin on the sales of leased equipment is 5.3% and 3.1%, for the three months ended June 30, 2009 and 2008, respectively. The revenue and gross margin recognized on sales of leased equipment can vary significantly depending on the nature and timing of the sale, as well as the timing of any debt funding recognized in accordance with SFAS No. 125, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities,” as amended by SFAS No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities - a replacement of FASB Statement No. 125.”
Fee and other income. For three months ended June 30, 2009, fee and other income decreased 33.8% to $2.4 million, compared to $3.6 million during the three months June
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Inc. (PLUS, Financial) filed Quarterly Report for the period ended 2009-06-30.
ePlus Inc. serves as the parent holding company for ePlus Group Inc. ePlus Technology of NC Inc. ePlus Technology of PA Inc. ePlus Technology Inc. ePlus Government Inc. ePlus Capital Inc. ePlus Systems Inc. ePlus Content Services Inc and MLC Leasing S.A. de C.V. ePlus
Inc. has a market cap of $133.25 million; its shares were traded at around $16.32 with a P/E ratio of 8.97 and P/S ratio of 0.19. ePlus
Inc. had an annual average earning growth of 10.2% over the past 10 years.
Highlight of Business Operations:
During the three months ended June 30, 2009, total revenue decreased 16.4% to $152.4 million compared to the three months ended June 30, 2008, as a result of an overall softening in the economy, which delayed our customers investment in capital equipment. Total costs and expenses decreased 15.3% to $149.1 million as compared to the three months ended June 30, 2008. During the three months ended June 30, 2009, net earnings decreased 48.5% to $1.9 million as compared to the same period in 2008. Gross margin for product and services improved from 13.3% to 14.2% during the three months ended June 30, 2009. Our gross margin on sales of product and services was affected by our customers investment in technology equipment, the mix and volume of products sold and changes in incentives provided to us by manufacturers. Cash decreased $4.5 million or 4.1% to $103.3 million at June 30, 2009 compared to March 31, 2009.Total Revenues. We generated total revenues during the three months ended June 30, 2009 of $152.4 million compared to total revenues of $182.3 million during the three months June 30, 2008, a decrease of 16.4%.
Sales of product and services. Sales of product and services decreased 15.3% to $140.5 million during the three months ended June 30, 2009 as compared to $165.8 million during the three months June 30, 2008. The decrease in sales is primarily attributed to the economic downturn, which generally resulted in our customers tendency to postpone or cancel technology equipment investments, particularly in the beginning of the quarter ended June 30, 2009. Sales of product and services represented 92.1% and 90.9% of total revenue during the three months ended June 30, 2009 and 2008, respectively. Sales of product and services as a percentage of total revenue increased as a result of proportionately larger decreases in lease revenue as compared to the same period in the prior fiscal year.
Lease revenues. Lease revenues decreased 30.5% to $8.1 million for the three months ended June 30, 2009, as compared to $11.6 million during the three months June 30, 2008. This decrease is primarily due to fewer leases to generate lease revenues in our operating and direct financing lease portfolio and decreases in sales of leased assets to lessees. From time to time, our lessees purchase leased assets from us before and at the end of the lease term. These purchases by lessees fluctuate primarily based upon portfolio maturity dates and amounts. During the three months ended June 30, 2009, sales of leased assets to lessees decreased 61.1% to $0.9 million, compared to $2.3 million during the three months June 30, 2008.
Sales of leased equipment. We also recognize revenue from the sale of leased equipment to non-lessee third parties. Sales of leased equipment fluctuate from quarter to quarter, and are a component of our risk-mitigation process, which we conduct to diversify our portfolio by customer, equipment type, and residual value investments. During the three months ended June 30, 2009, sales of leased equipment increased 17.6% to $1.5 million, compared to $1.3 million during the three months June 30, 2008. Gross margin on the sales of leased equipment is 5.3% and 3.1%, for the three months ended June 30, 2009 and 2008, respectively. The revenue and gross margin recognized on sales of leased equipment can vary significantly depending on the nature and timing of the sale, as well as the timing of any debt funding recognized in accordance with SFAS No. 125, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities,” as amended by SFAS No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities - a replacement of FASB Statement No. 125.”
Fee and other income. For three months ended June 30, 2009, fee and other income decreased 33.8% to $2.4 million, compared to $3.6 million during the three months June
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