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Sep 30, 2020

ePlus Q2 2021 Earnings Report

Revenue increased due to higher product sales and managed services, but gross profit and earnings decreased.

Key Takeaways

ePlus inc. reported a 5.2% increase in net sales to $433.1 million for the second quarter of fiscal year 2021. Technology segment net sales increased 5.4% to $419.4 million, while service revenues increased 2.8% to $49.4 million. Net earnings decreased 1.3% to $19.8 million, and diluted earnings per share decreased 2.0% to $1.48. Non-GAAP diluted earnings per share decreased 7.2% to $1.68.

Net sales increased by 5.2% to $433.1 million.

Technology segment net sales increased by 5.4% to $419.4 million.

Service revenues increased by 2.8% to $49.4 million.

Net earnings decreased by 1.3% to $19.8 million.

Total Revenue
$433M
Previous year: $412M
+5.2%
EPS
$0.84
Previous year: $0.91
-7.7%
Adjusted EBITDA
$33.6M
Previous year: $35.4M
-5.1%
Consolidated Gross Margin
22.9%
Previous year: 25%
-8.4%
Gross Profit
$99M
Previous year: $103M
-3.9%
Cash and Equivalents
$161M
Previous year: $55.8M
+188.5%
Total Assets
$1.04B
Previous year: $914M
+13.6%

ePlus

ePlus

ePlus Revenue by Segment

Forward Guidance

ePlus believes it is well positioned to continue to effectively and efficiently serve its diversified customer base. The portfolio of Technology and Financing businesses represents a competitive advantage for ePlus.

Positive Outlook

  • Broad portfolio of products and services directed to high growth areas.
  • More streamlined operation.
  • Technology and Financing businesses represent a competitive advantage.
  • Increase in demand for financing from several customers.
  • Strong balance sheet provides capital to invest in organic and inorganic growth opportunities.

Challenges Ahead

  • Challenging and uncertain economic periods.
  • Customers managing through budgetary constraints.
  • Monitoring the landscape for attractive opportunities.
  • Difficult business conditions.
  • The duration and impact of the COVID-19 pandemic

Revenue & Expenses

Visualization of income flow from segment revenue to net income