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ePlus(PLUS) - 2020 Q1 - Earnings Call Transcript
2019-08-10 23:53
Financial Data and Key Metrics Changes - Adjusted gross billings increased by 13.7% year-over-year, while gross profit grew by 14.8% [7][20] - Consolidated gross margin expanded by 170 basis points to 24.3%, supported by both technology and financing segments [7][23] - Net sales reached $381.4 million, up 7% from the prior year, with net sales in the technology segment increasing by 6.2% [20][25] - Consolidated net earnings amounted to $16.2 million or $1.20 per diluted share, reflecting a 6% increase [25][26] Business Line Data and Key Metrics Changes - Technology segment net sales increased by 6.2%, driven by higher product sales and a 35.8% increase in services sales [20] - Adjusted gross billings in the technology segment amounted to $548.4 million, a 13.7% increase compared to the previous year [22] - Services revenue was up 35.8% year-over-year, indicating strong demand for professional, managed, and staffing services [14] Market Data and Key Metrics Changes - Technology and SLED markets accounted for 21% and 17% of technology segment net sales, respectively [21] - Security products and services grew by 54.9% year-over-year, now representing over 21% of total adjusted gross billings [10][11] Company Strategy and Development Direction - The company focuses on high-growth areas such as security, cloud, and digital infrastructure, aiming to provide end-to-end solutions [10][18] - The company is committed to building scalable, leverageable business lines like managed services to improve operating leverage [16] - Strategic acquisitions are being evaluated to enhance product and service offerings [18][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand environment, noting strong customer interest in security and cloud solutions [35][45] - The company anticipates continued growth in recurring revenues and a strong services backlog [30] - Management indicated that tariffs have not affected business operations, maintaining a stable outlook [45] Other Important Information - The company ended the quarter with cash and cash equivalents of $35.6 million, with inventory levels increasing by 15.3% [27] - The effective tax rate increased to 28.7% compared to 25.7% in the previous year [26] Q&A Session Summary Question: Subscription and annuity revenue consistency - Management noted that software subscriptions were up about 112% year-over-year, indicating a positive trend [33] Question: Demand environment compared to expectations - Management confirmed that the demand environment remains strong and consistent with expectations [35] Question: Large project pipeline - No large projects were reported this quarter, but management continues to pursue opportunities with enterprise customers [36] Question: SLAIT acquisition contribution - Organic growth accounted for about two-thirds, while SLAIT contributed one-third to the growth for the quarter [37] Question: Hardware demand and priorities - Demand for security products remains strong, with a noted increase in networking and services [41] Question: SG&A spending forecast - Management indicated that the current quarter's SG&A is a good run rate moving forward [64] Question: Services growth expectations - Services growth may not be sequentially consistent, but annuity services are expected to grow over time [65]
ePlus(PLUS) - 2019 Q4 - Earnings Call Transcript
2019-05-23 02:24
ePlus inc. (NASDAQ:PLUS) Q4 2019 Results Earnings Conference Call May 22, 2019 4:30 PM ET Company Participants Kley Parkhurst - SVP Mark Marron - CEO and President Elaine Marion - CFO Conference Call Participants Maggie Nolan - William Blair Greg Burns - Sidoti Matt Sheerin - Stifel Brett Knoblauch - Berenberg Capital Markets Operator Good day ladies and gentlemen. Welcome to the ePlus Earnings Results Conference Call. As a reminder, this conference call is being recorded. I would like to introduce your hos ...
ePlus(PLUS) - 2019 Q3 - Earnings Call Transcript
2019-02-07 00:36
ePlus, Inc. (NASDAQ:PLUS) Q3 2019 Earnings Conference Call February 6, 2019 4:30 PM ET Company Participants Kley Parkhurst - Senior Vice President Mark Marron - President & Chief Executive Officer Elaine Marion - Chief Financial Officer Erica Stoecker - General Counsel Conference Call Participants Maggie Nolan - William Blair Brett Knoblauch - Berenberg Operator Good day, ladies and gentlemen. Welcome to the ePlus Earnings Results Conference Call. As a reminder, this conference call is being recorded. I wou ...