Part I [Business](index=6&type=section&id=Item%201.%20Business) ePlus operates technology and financing segments, providing integrated IT solutions and equipment financing, with the technology segment dominating sales and operating income in FY2022 - ePlus operates through two primary business segments: Technology and Financing[17](index=17&type=chunk) FY 2022 Segment Contribution | Segment | Net Sales Contribution | Operating Income Contribution | | :--- | :--- | :--- | | Technology | 95% | 74% | | Financing | 5% | 26% | - Sales to Verizon Communications Inc. represented **24% of net sales** for the fiscal year ended March 31, 2022[21](index=21&type=chunk) FY 2022 Revenue by Customer End Market (Technology Segment) | End Market | Percentage of Revenue | | :--- | :--- | | Telecommunications, Media & Entertainment | 29% | | Healthcare | 16% | | Technology Industry | 14% | | SLED (State, Local Gov & Education) | 14% | | Financial Services | 9% | [Industry Background and Market Opportunity](index=7&type=section&id=Our%20Industry%20Background%20and%20Market%20Opportunity) Key market opportunities are driven by multi-cloud adoption, advanced cybersecurity threats, disruptive technology complexity, shifting IT decision-making, and resource constraints - Key market opportunities are driven by several industry trends[22](index=22&type=chunk) - **Multi-Cloud Strategy:** Assisting customers in aligning cloud strategy with business objectives across public, private, and hybrid environments[22](index=22&type=chunk) - **Cybersecurity:** Addressing sophisticated cyber-attacks and data privacy concerns with advanced security solutions and services[23](index=23&type=chunk) - **Disruptive Technologies:** Helping customers manage complexity arising from rapid technological evolution and fragmented vendor landscapes[24](index=24&type=chunk) - **Shifting IT Decision-Making:** Adapting to procurement decisions moving from IT departments to lines-of-business personnel, favoring 'as-a-service' models[25](index=25&type=chunk) [Competition](index=8&type=section&id=Competition) Both IT solutions and financing markets are highly competitive, with rivals ranging from local firms to international resellers, banks, and vendor captive finance companies, some with superior resources - The IT solutions market is highly competitive, with competition from local, regional, national, and international firms, including vendors, consulting firms, and other resellers[29](index=29&type=chunk) - The leasing and financing markets are also competitive, with rivals including banks, specialty finance companies, and vendors' captive finance companies, some of whom have access to more capital[30](index=30&type=chunk) [Our Solutions](index=9&type=section&id=Our%20Solutions) ePlus delivers integrated IT solutions through its Technology segment and offers diverse financing options, including leases and consumption-based models, via its Financing segment - **Technology Segment:** Offers integrated IT solutions including hardware, software, and services in areas like data center, cloud, security, and collaboration[34](index=34&type=chunk) - **Financing Segment:** Provides sales-type and operating leases, loans, and consumption-based financing for IT and other equipment, along with asset management and disposal services[35](index=35&type=chunk)[41](index=41&type=chunk) [Human Capital](index=14&type=section&id=Human%20Capital) As of March 31, 2022, ePlus employed 1,577 individuals, primarily in the US, fostering a culture of development, social responsibility, and flexible work arrangements Employee Headcount by Function | Functional Area | As of March 31, 2022 | As of March 31, 2021 | | :--- | :--- | :--- | | Sales and marketing | 588 | 589 | | Professional services | 666 | 662 | | Administration | 229 | 217 | | Internal IT | 88 | 85 | | Management | 6 | 7 | | **Total** | **1,577** | **1,560** | - The company's employees collectively hold nearly 5,000 certifications or accreditations, with approximately 375 technical employees holding nearly 3,000 certifications[80](index=80&type=chunk) [Executive Officers](index=16&type=section&id=Executive%20Officers) As of March 31, 2022, ePlus inc.'s executive officers included Mark P. Marron (CEO), Elaine D. Marion (CFO), and Darren Raiguel (COO and President of ePlus Technology, inc.) Executive Officers (as of March 31, 2022) | Name | Age | Position | | :--- | :--- | :--- | | Mark P. Marron | 60 | Chief Executive Officer, President, and Director | | Elaine D. Marion | 54 | Chief Financial Officer | | Darren Raiguel | 51 | Chief Operating Officer and ePlus Technology, inc. President | [Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors) ePlus faces significant risks including customer dependence, supply chain disruptions, talent retention, cybersecurity threats, economic downturns, industry shifts to cloud, regulatory compliance, and intellectual property protection - **Business Risks:** Dependence on large customers (Verizon accounted for **14% of accounts receivable**), supply chain shortages, competition for talent, and the impact of pandemics like COVID-19[89](index=89&type=chunk)[90](index=90&type=chunk)[93](index=93&type=chunk)[95](index=95&type=chunk) - **Cybersecurity Risks:** Potential for breaches of data security, which could lead to liability, reputational damage, and business disruption, with increased risk from remote work[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) - **Vendor Risks:** Reliance on a small number of key vendors, with Cisco Systems representing approximately **39% of technology segment net sales** in FY2022[107](index=107&type=chunk)[108](index=108&type=chunk) - **Economic & Industry Risks:** Vulnerability to general economic weakness, rising interest rates, and rapid changes in the IT industry, such as the shift to cloud services (IaaS, SaaS, PaaS)[145](index=145&type=chunk)[147](index=147&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk) - **Regulatory & Legal Risks:** Failure to comply with a wide range of laws (data privacy, public-sector contracts), potential for intellectual property infringement claims, and costs to protect its own IP[157](index=157&type=chunk)[159](index=159&type=chunk)[162](index=162&type=chunk)[164](index=164&type=chunk) [Unresolved Staff Comments](index=28&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - The company reports no unresolved staff comments[169](index=169&type=chunk) [Properties](index=28&type=section&id=Item%202.%20Properties) As of March 31, 2022, ePlus leased approximately 252,000 square feet across 33 properties in the US, UK, and India, deemed adequate for current operations - As of March 31, 2022, the company leased approximately **252 thousand square feet** of space across 33 properties in the US, UK, and India[170](index=170&type=chunk) [Legal Proceedings](index=28&type=section&id=Item%203.%20Legal%20Proceedings) Material pending legal proceedings are detailed in Note 9, "Commitments and Contingencies," within the Notes to Consolidated Financial Statements - Information on material pending legal proceedings is available in Note 9, "Commitments and Contingencies" of the financial statements[171](index=171&type=chunk) [Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is not applicable to the company[172](index=172&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=29&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) ePlus common stock trades on NASDAQ under "PLUS"; no cash dividends were paid in FY2022 or FY2021, with 283,420 shares repurchased in FY2022 - The company's common stock trades on the NASDAQ Global Select Market under the symbol "PLUS"[173](index=173&type=chunk) - No cash dividends were paid on common stock during the fiscal years ended March 31, 2022, and 2021, as earnings are retained for business operations and growth[174](index=174&type=chunk) FY 2022 Share Repurchases | Metric | Value | | :--- | :--- | | Total shares purchased | 283,420 | | Shares purchased under public plan | 227,990 | | Shares remaining for purchase (as of 3/31/22) | 772,010 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) FY2022 saw net sales rise 16.1% to $1.82 billion and net earnings increase 41.9% to $105.6 million, driven by strong demand despite supply chain and inflationary pressures FY 2022 vs. FY 2021 Financial Highlights | Metric | FY 2022 | FY 2021 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,821.0M | $1,568.3M | 16.1% | | Gross Profit | $461.0M | $393.6M | 17.1% | | Operating Income | $147.3M | $106.3M | 38.5% | | Net Earnings | $105.6M | $74.4M | 41.9% | | Diluted EPS | $3.93 | $2.77 | 41.9% | - Adjusted gross billings, a non-GAAP measure, increased **15.8% to $2.62 billion**, indicating strong business volume, particularly in services and software recognized on a net basis[204](index=204&type=chunk) - The business continues to be impacted by the COVID-19 pandemic, ongoing IT product supply constraints, and inflationary pressures on costs and wages[187](index=187&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk) [Results of Operations](index=40&type=section&id=Results%20of%20Operations) In FY2022, the Technology segment's net sales grew 14.9% to $1.73 billion, while the Financing segment's net sales increased 45.7% to $88.0 million, contributing to a 41.9% rise in consolidated net earnings - Technology segment net sales increased **14.9% to $1.73 billion**, with operating income increasing **44.1% to $109.0 million**[243](index=243&type=chunk)[254](index=254&type=chunk) - Financing segment net sales increased **45.7% to $88.0 million**, with operating income increasing **24.9% to $38.3 million**[256](index=256&type=chunk)[260](index=260&type=chunk) - The consolidated effective income tax rate decreased to **28.1% in FY2022** from 30.4% in the prior year[262](index=262&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2022, cash and cash equivalents increased to $155.4 million, despite operating activities using $20.6 million due to higher working capital needs, supported by an expanded $375 million credit facility Cash Flow Summary (in millions) | Cash Flow Activity | FY 2022 | FY 2021 | | :--- | :--- | :--- | | Net cash from operating activities | $(20.6) | $129.5 | | Net cash used in investing activities | $(1.3) | $(35.8) | | Net cash from (used in) financing activities | $47.2 | $(49.8) | | **Net increase in cash** | **$25.8** | **$43.3** | - The cash conversion cycle for the Technology segment increased from **37 days to 48 days**, driven by a **10-day increase in days inventory outstanding (DIO)** due to supply chain issues[274](index=274&type=chunk)[276](index=276&type=chunk) - In October 2021, the company's credit facility with WFCDF was increased from **$275 million to $375 million**[453](index=453&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) ePlus faces market risks from interest rate fluctuations on variable-rate borrowings and foreign currency exchange rates, though foreign currency impact is deemed immaterial - The company's primary market risks are interest rate risk and foreign currency risk[300](index=300&type=chunk) - Interest rate risk stems from variable-rate borrowings under the WFCDF credit facility and from financing transactions funded with company cash[301](index=301&type=chunk) - Foreign currency risk is primarily from transactions in British Pounds, Euros, and Indian Rupees, but is not considered material[302](index=302&type=chunk) [Financial Statements and Supplementary Data](index=48&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section directs readers to the consolidated financial statements and schedules detailed in the "Index to Financial Statements and Schedules" - This section directs the reader to the full consolidated financial statements and schedules included later in the report[304](index=304&type=chunk) [Controls and Procedures](index=48&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, affirmed the effectiveness of disclosure controls and internal control over financial reporting as of March 31, 2022, with no material changes reported - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2022[306](index=306&type=chunk) - Management's assessment concluded that the company maintained effective internal control over financial reporting as of March 31, 2022[310](index=310&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended March 31, 2022, that materially affected, or are reasonably likely to materially affect, internal controls[312](index=312&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=49&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2022 Proxy Statement and Item 1 of this Form 10-K - Required information is incorporated by reference from the company's 2022 Proxy Statement[317](index=317&type=chunk) [Executive Compensation](index=49&type=section&id=Item%2011.%20Executive%20Compensation) Information on director and executive compensation, including the Compensation Discussion and Analysis, is incorporated by reference from the 2022 Proxy Statement - Required information is incorporated by reference from the company's 2022 Proxy Statement[320](index=320&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=50&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership and equity compensation plans is incorporated by reference from the 2022 Proxy Statement - Required information is incorporated by reference from the company's 2022 Proxy Statement[321](index=321&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=50&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related person transactions and director independence is incorporated by reference from the 2022 Proxy Statement - Required information is incorporated by reference from the company's 2022 Proxy Statement[322](index=322&type=chunk) [Principal Accounting Fees and Services](index=50&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on principal accounting fees and services is incorporated by reference from the 2022 Proxy Statement - Required information is incorporated by reference from the company's 2022 Proxy Statement[323](index=323&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=50&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section enumerates the financial statements, schedules, and exhibits, including auditor consent and executive certifications, filed with the Form 10-K report - The consolidated financial statements are filed as part of this report[325](index=325&type=chunk) - Financial Statement Schedule II - Valuation and Qualifying Accounts is included[326](index=326&type=chunk) - A list of exhibits, including management contracts and compensatory plans, is provided[327](index=327&type=chunk)[328](index=328&type=chunk)

e * Where Technology Means More® ePlus inc. Investor Presentation February 2022 © 2022 ePlus inc. Confidential and Proprietary. Safe Harbor Statement Statements in this presentation that are not historical facts may be deemed to be "forward-looking statements." Actual and anticipated future results may vary materially due to certain risks and uncertainties, including, without limitation, possible adverse effects resulting from national and international political instability fostering uncertainty and volati ...

Financial Data and Key Metrics Changes - Adjusted gross billings increased 16.5% year-over-year to $685 million in Q3, with year-to-date growth exceeding 14% to nearly $2 billion [7][19] - Net sales grew by 15.7% year-over-year to $495 million, with year-to-date sales increasing 12.6% to $1.37 billion [8][24] - Diluted earnings per share rose 21% year-over-year, while non-GAAP earnings per share improved nearly 24% [8][24] - Consolidated gross profit increased 19.3% to $117.1 million, with gross margin widening 70 basis points to 23.7% [20][21] Business Line Data and Key Metrics Changes - Technology segment net sales increased 14.8% to $477 million, with product and service revenues rising by 14% and 20% respectively [19] - Services revenue was up 20% for both the quarter and year-to-date, contributing to higher gross margins of 39.4% in Q3 [9][21] - Financing segment revenue surged 48.4% to $17.9 million, reflecting higher post-contract sales [20] Market Data and Key Metrics Changes - Telecom media and entertainment remains the largest end market, accounting for 29% of net sales, followed by healthcare, SLED, technology, and financial services [26] - The company reported strong demand across all customer segments, indicating broad-based growth [6][19] Company Strategy and Development Direction - The company is focused on capturing market share in mid-market, enterprise, and public sector segments, with a strategy emphasizing consultant, advisory, and management services [6][7] - Continued investment in technology, partnerships, and strategic hires is planned to support future growth [15] - The company aims to leverage its financing capabilities to provide customers with flexible solutions amid tightening budgets [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing supply chain challenges but expressed confidence in the company's ability to navigate these issues [16] - The outlook remains positive with strong open orders and a growing services backlog, indicating robust demand [14][35] - Management noted that while labor availability is competitive, the company has managed to maintain staffing levels effectively [43] Other Important Information - The company ended the quarter with $105.6 million in cash and cash equivalents, down from $129.6 million due to share repurchases and increased working capital needs [27] - Inventory levels more than doubled to $147.7 million, attributed to ongoing customer projects and supply chain constraints [28][29] Q&A Session Summary Question: Can you provide details on the backlog and its current status? - Management reported that open orders are up about 106% year-over-year, with a significant increase in services backlog and a strong pipeline for Q4 [35] Question: What is the trend regarding services gross margin? - The increase in project-related services has contributed to higher margins, with service revenue growing as a percentage of total net sales [36][37] Question: What is the outlook for working capital and inventory? - Management expects supply chain issues to persist through the end of the calendar year, impacting inventory levels [42] Question: Are there challenges in labor availability and costs? - The labor market is competitive, with increased costs for new hires and replacements noted [43] Question: How does management view operating leverage in the current environment? - Management plans to continue investing in headcount while maintaining operating income growth, indicating room for operating leverage [46] Question: Were there any constraints on meeting demand in the quarter? - Management acknowledged some constraints due to supply chain issues but indicated that they have managed expectations effectively [50] Question: Is inflation impacting revenue growth? - While inflation has not yet significantly impacted revenue, management noted that price increases could be passed on in the future [51] Question: What are the expectations for the March quarter? - Seasonality is expected to affect demand, with a tough comparison for Q4 due to previous year sales [52]

Part I. Financial Information [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) ePlus inc.'s unaudited consolidated financial statements as of December 31, 2021, show total assets of **$1.26 billion** and nine-month net earnings of **$81.4 million** Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2021 (in thousands) | Mar 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $960,551 | $777,594 | | **Total Assets** | **$1,255,146** | **$1,076,775** | | **Total Current Liabilities** | $567,413 | $459,364 | | **Total Liabilities** | $615,850 | $514,365 | | **Total Stockholders' Equity** | $639,296 | $562,410 | Consolidated Statement of Operations Highlights (in thousands, except per share data) | Metric | Nine Months Ended Dec 31, 2021 (in thousands) | Nine Months Ended Dec 31, 2020 (in thousands) | | :--- | :--- | :--- | | **Total Net Sales** | **$1,369,500** | **$1,215,716** | | Gross Profit | $345,631 | $295,670 | | Operating Income | $112,840 | $82,745 | | **Net Earnings** | **$81,355** | **$58,844** | | Diluted EPS | $3.03 | $2.20 | Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Nine Months Ended Dec 31, 2021 (in thousands) | Nine Months Ended Dec 31, 2020 (in thousands) | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($121,542) | $5,244 | | Net cash used in investing activities | ($18,448) | ($30,659) | | Net cash provided by financing activities | $115,996 | $26,382 | | **Net (decrease) increase in cash** | **($23,996)** | **$232** | | Cash and cash equivalents, end of period | $105,566 | $86,463 | - On December 13, 2021, the company completed a two-for-one stock split, with all share and per-share amounts in the financial statements retroactively adjusted to reflect this split[35](index=35&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management highlights **12.6% net sales growth to $1.37 billion** for the nine months ended December 31, 2021, driven by strong demand, confirming sufficient liquidity for the next year [Executive Overview and Business Trends](index=30&type=section&id=Executive%20Overview%20and%20Business%20Trends) ePlus provides integrated IT solutions, with its technology segment generating **96% of net sales**, facing ongoing IT product shortages and rising inflation - The technology segment accounts for **96% of net sales** and **73% of operating income**, while the financing segment accounts for **4% of net sales** and **27% of operating income** for the nine months ended December 31, 2021[109](index=109&type=chunk) - The company is experiencing ongoing supply constraints affecting product lead times and costs, which are expected to persist for at least the next few quarters[115](index=115&type=chunk) - Inflation has led to price increases from suppliers and rising wages, but the company has generally been able to pass these costs to customers, though future material impact is not assured[116](index=116&type=chunk) [Consolidated Results of Operations](index=32&type=section&id=Consolidated%20Results%20of%20Operations) Consolidated net sales grew **12.6% to $1.37 billion** and net earnings increased **38.3% to $81.4 million** for the nine months ended December 31, 2021 Consolidated Performance (Nine Months Ended Dec 31) | Metric | 2021 (in millions) | 2020 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,369.5M | $1,215.7M | +12.6% | | Gross Profit | $345.6M | $295.7M | +16.9% | | Operating Income | $112.8M | $82.7M | +36.4% | | Net Earnings | $81.4M | $58.8M | +38.3% | | Diluted EPS | $3.03 | $2.20 | +37.7% | Consolidated Performance (Q3 Ended Dec 31) | Metric | 2021 (in millions) | 2020 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $494.8M | $427.6M | +15.7% | | Gross Profit | $117.1M | $98.2M | +19.3% | | Net Earnings | $26.4M | $21.6M | +22.1% | | Diluted EPS | $0.98 | $0.81 | +21.0% | - Adjusted gross billings, a non-GAAP measure, increased **14.2% to $1.982 billion** for the nine-month period, driven by the SMP acquisition and higher demand from customers in telecom, media, entertainment, and healthcare[128](index=128&type=chunk) [Segment Results of Operations](index=37&type=section&id=Segment%20Results%20of%20Operations) Technology segment net sales grew **11.7% to $1.31 billion** and operating income rose **34.0%**, while Financing segment net sales increased **41.2%** with operating income up **43.2%** Technology Segment Performance (Nine Months Ended Dec 31) | Metric | 2021 (in millions) | 2020 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,313.6M | $1,176.2M | +11.7% | | Gross Profit | $305.0M | $262.4M | +16.2% | | Operating Income | $82.6M | $61.7M | +34.0% | | Adjusted Gross Billings | $1,982.2M | $1,735.3M | +14.2% | Financing Segment Performance (Nine Months Ended Dec 31) | Metric | 2021 (in millions) | 2020 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $55.9M | $39.6M | +41.2% | | Gross Profit | $40.6M | $33.3M | +22.0% | | Operating Income | $30.2M | $21.1M | +43.2% | - In the Technology segment, open orders increased to **$852.9 million** as of Dec 31, 2021, from **$413.9 million** a year prior, indicating strong future demand but also reflecting supply chain delays[153](index=153&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents decreased by **$24.0 million** to **$105.6 million** due to operating activities, largely offset by financing, with management confirming sufficient liquidity Cash Flow Summary (Nine Months Ended Dec 31, in thousands) | Cash Flow Activity | 2021 (in thousands) | 2020 (in thousands) | | :--- | :--- | :--- | | Net cash from operating activities | ($121,542) | $5,244 | | Net cash from investing activities | ($18,448) | ($30,659) | | Net cash from financing activities | $115,996 | $26,382 | - The cash conversion cycle for the technology segment increased to **47 days** from **24 days** year-over-year, driven by higher Days Sales Outstanding (DSO) and Days Inventory Outstanding (DIO)[187](index=187&type=chunk)[189](index=189&type=chunk) - On October 13, 2021, the company amended its credit facility, increasing the senior secured floorplan facility from **$275 million to $375 million** and maintaining a revolving credit sublimit of **$100 million**[69](index=69&type=chunk)[197](index=197&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate fluctuations on its variable-rate credit facility and foreign currency exchange rates, with foreign operations not expected to have a material impact - The company's primary market risks are related to interest rate fluctuations on its variable-rate credit facility and foreign currency exchange risk from international operations[213](index=213&type=chunk)[214](index=214&type=chunk) - Foreign operations in the UK, Europe, and Canada are considered insignificant in relation to total consolidated operations, and currency fluctuations are not expected to have a material impact[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded disclosure controls and procedures were effective as of December 31, 2021, with no material changes in internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2021[217](index=217&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[218](index=218&type=chunk) Part II. Other Information [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the normal course of business, with no currently expected material adverse effects - The company is involved in various legal proceedings in the normal course of business and expenses legal costs as incurred, with outcomes not expected to have a material adverse effect[76](index=76&type=chunk)[220](index=220&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) No material changes have been reported in the company's risk factors since the last Annual Report on Form 10-K and subsequent quarterly report - No material changes have been reported in the company's risk factors since the last Annual Report on Form 10-K and subsequent quarterly report[221](index=221&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the nine months ended December 31, 2021, the company repurchased **203,429 shares**, with **852,001 shares** remaining authorized under the plan expiring May 27, 2022 Share Repurchase Activity (Nine Months Ended Dec 31, 2021) | Description | Shares | | :--- | :--- | | Total shares purchased | 203,429 | | Shares purchased as part of public plan | 147,999 | | Shares repurchased to satisfy tax withholding | 55,430 | | Remaining authorization as of Dec 31, 2021 | 852,001 | - On March 18, 2021, the board authorized the repurchase of up to **1,000,000 shares** of common stock, effective from May 28, 2021, to May 27, 2022[82](index=82&type=chunk)[225](index=225&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) Key exhibits filed with the Form 10-Q include credit agreements and CEO/CFO certifications - Key exhibits filed include the First Amended and Restated Credit Agreement dated October 13, 2021, and certifications by the CEO and CFO pursuant to SEC rules[233](index=233&type=chunk)

Financial Data and Key Metrics Changes - Adjusted gross billings increased by 10.5% year-over-year to $664.1 million, with consolidated net sales rising 5.8% to $458 million [5][14][15] - Operating income grew more than 55% year-over-year, with earnings climbing over 58% from the prior quarter to $2.34 per diluted share [5][18] - Consolidated gross profit increased by 24.3% to $123 million, and gross margin improved by 400 basis points to 26.9% [17] Business Line Data and Key Metrics Changes - Technology net sales increased by 4% year-over-year, driven by a 23.1% increase in service revenue [6][16] - Financing segment net sales surged approximately 58% year-over-year to $21.7 million, with adjusted EBITDA increasing nearly 94% [11][16] Market Data and Key Metrics Changes - Telecom media and entertainment remains the largest end market, accounting for 28% of net sales, followed by SLED, healthcare, technology, and financial services at 15%, 15%, 14%, and 11% respectively [19] Company Strategy and Development Direction - The company is focused on high-growth areas such as cloud, security, and digital infrastructure, aiming to enhance capabilities and expand its solutions portfolio [4][8] - Continued investment in cloud and networking capabilities, including achieving AWS network competency status and launching an AI bundle for healthcare organizations [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth strategy, citing solid demand for services and solutions across various end markets [13][24] - The company is actively monitoring supply chain bottlenecks but has managed to minimize their impact through strong channel partner relationships [13] Other Important Information - The company announced a 2-for-1 stock split for shareholders of record on November 29, 2021 [14][23] - Total headcount increased by 3.8% year-over-year, reflecting ongoing investments in talent [18] Q&A Session Summary Question: How did the results compare to expectations and the impact of supply chain challenges? - Management indicated that the quarter was in line with expectations, with strong demand outpacing supply and open orders up 25% sequentially [28][29] Question: How is the supply chain impacting demand for financing services? - Management noted that supply chain issues have not significantly affected financing services, but inflation and potential interest rate increases could pose risks [30] Question: Can you explain the difference between open orders and backlog? - Management clarified that open orders are at record levels, with customers placing orders early due to extended lead times [33][35] Question: Are customers moving workloads off-prem due to product constraints? - Management observed some movement to the cloud but emphasized that many customers are still focused on modernizing existing data centers first [36][37] Question: What areas are experiencing product shortages? - Management identified networking and storage as areas with some delays, but noted that these issues are not significant [39] Question: How is the company managing cost inputs and talent acquisition? - Management acknowledged challenges in recruiting talent and rising OEM pricing but confirmed that they have successfully passed on price increases to customers [41] Question: Is the AI bundle for healthcare a growth area? - Management confirmed strong growth in healthcare and indicated potential for expansion into other verticals [43]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from____ to ____. Commission file number: 1-34167 ePlus inc. (Exact name of registrant as specified in its charter) Delaware 54-1817218 (State or other jurisdiction of inc ...

ePlus, Inc. (NASDAQ:PLUS) Q1 2022 Earnings Conference Call August 4, 2021 4:30 PM ET Company Participants Kley Parkhurst - Senior Vice President of Corporate Development & Assistant Secretary Mark Marron - Chief Executive Officer, President & Director Elaine Marion - Chief Financial Officer Conference Call Participants Maggie Nolan - William Blair & Company Matt Sheerin - Stifel, Nicolaus & Company Greg Burns - Sidoti & Company Operator Good day, ladies and gentlemen. Welcome to the ePlus Earnings Results C ...

e * Where Technology Means More® ePlus inc. Investor Presentation August 2021 © 2021 ePlus inc. Confidential and Proprietary. Safe Harbor Statement Statements in this presentation that are not historical facts may be deemed to be "forward-looking statements." Actual and anticipated future results may vary materially due to certain risks and uncertainties, including, without limitation, possible adverse effects resulting from national and international political instability fostering uncertainty and volatili ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from____ to ____. Commission file number: 1-34167 Registrant's telephone number, including area code: (703) 984-8400 Securities registered pursuant to Section 12(b) of the Act: ...

Financial Data and Key Metrics Changes - Consolidated net sales for Q4 2021 declined 3.8% to $352.6 million compared to $366.5 million in Q4 2020 [25] - Gross profit increased 6.6% to $97.9 million, with gross margin expanding by 270 basis points to 27.8%, the highest in company history [9][29] - Operating income for Q4 increased 31.9% to $23.6 million, while adjusted EBITDA rose 25.7% to $29.6 million [10][32] Business Line Data and Key Metrics Changes - Technology segment net sales decreased 6.1% to $331.8 million, with product revenue down 8.4% [25] - Services revenue increased 8.2% to $52.9 million, contributing to the overall financial performance [12][26] - Financing segment revenue grew 57.4% to $20.8 million, driven by off-lease equipment sales [28] Market Data and Key Metrics Changes - Telecom, media, and entertainment, along with technology, were the largest markets, representing 25% and 17% of segment net sales, respectively [34] - SLED, healthcare, and financial services accounted for 16%, 13%, and 13% of net sales, respectively [34] Company Strategy and Development Direction - The company is focusing on expanding capabilities in security solutions, which accounted for 20.8% of adjusted gross billings, up from 19.3% [15] - Continued investment in managed services and remote services is expected to drive long-term growth [16] - The company plans to pursue strategic acquisitions to enhance growth and technology offerings [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate challenges posed by component shortages and anticipated a recovery in IT spending as the economy normalizes [24][23] - The order backlog is up approximately 70% year-over-year, indicating strong demand for technology solutions [64] - Management noted that the focus is shifting from COVID-related spending to IT modernization and infrastructure improvements [61] Other Important Information - The company ended the fiscal year with cash and cash equivalents of $129.6 million, a 50.2% increase [37] - Inventory levels increased 39.2% to $70 million year-over-year, reflecting ongoing customer projects [38] Q&A Session Summary Question: Update on access to customer sites - Management noted limited access to customer sites due to varying state regulations, but remote service provision is increasing [48] Question: Impact of inflation and component shortages - Management indicated that while inflation has not yet significantly impacted pricing, it may become a factor in the future [50] Question: Performance of the services business - Services revenue grew 8.2% year-over-year, with positive momentum in managed services and staffing [52] Question: Quantifying impact of component shortages on revenue - Management stated that open orders are significantly up year-over-year, but the duration of shortages remains uncertain [58] Question: Insights on gross margin and future expectations - Management acknowledged that the current gross margin is an outlier and suggested looking at annualized metrics for future expectations [66] Question: Performance in specific end markets - Management reported mixed results across end markets, with healthcare down and SLED showing growth [78]