Eplus Inc. · NASDAQ:PLUS
Eplus — Sidoti Investor Presentation March 2014
21 slides from Eplus's conference presentation, March 2014
Slide 1: Sidoti Investor Presentation March 2014
ePlus Sidoti Investor EXCELLENCE THROUGH EXPERIENCE Presentation March 2014 © ePlus inc. E XCELLENCE THROUGH E XPERIENCE
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation, which are not historical facts, may be deemed to be "forward‐looking statements.” Actual and anticipated future results may vary due to certain risks and uncertainties, including, without limitation; possible adverse effects resulting from the r
Slide 3: Why Invest in ePlus
Why Invest in ePlus Phil Norton, CEO 3 © ePlus inc. E XCELLENCE THROUGH E XPERIENCE
Slide 4: ePlus at a Glance
ePlus at a Glance + Leading provider of technology solutions and IT products, advanced technology engineering services, proprietary software and financing + Focused on cloud, data center, security, networking and collaboration solutions + Technology partners include Cisco, EMC, HP, NetApp and VMware
Slide 5: ePlus is Well Positioned in the Market
ePlus is Well Positioned in the Market + Broad product/service offering Increasing customer value and vendor margins + Deep technical expertise Growing Growing Solution Orientation + Meaningful vendor relationships Solution and Few Scale Orientation + Top vendor certifications platforms of + Nationa
Slide 6: Investment Highlights
Investment Highlights + Large addressable market with substantial growth opportunities driven by increasing IT complexity + Broad and diverse customer base across a wide range of end markets + Differentiated business model serving entire IT lifecycle – solutions, services, software, financing + Deep
Slide 7: Business Overview
Business Overview Mark Marron, COO 7 © ePlus inc. E XCELLENCE THROUGH E XPERIENCE
Slide 8: National Footprint with Opportunity to Expand
National Footprint with Opportunity to Expand + 350+ sales resources + 260+ engineering professionals + Serving middle‐market clients to large multinational enterprises + Customer‐centric project management + Regional Offices ★Sales Offices ★Managed Service Center Targeted M&A Strategy with Track Re
Slide 9: The Problem
The Problem + Increasing complexity (security, big data, cloud, BYOD, VXI) + Need to save costs through: + Virtualization + Cloud computing + Improving spend management practices + Proliferation of mobile devices + Increased security concerns + Multi vendor solutions + Optimizing spend & asset manag
Slide 10: End-to-End Suite of Customized Solutions
End‐to‐End Suite of Customized Solutions + Cloud Computing + Flexible Payment Solutions + Virtual Desktop Infrastructure / VXI + Operating Leases + Server Consolidation / Virtualization + Capital Leases + Storage & Backup + Entire Asset Acquisition Process + Data Security + Trade‐In Programs + Unifi
Slide 11: Growth Strategy
Growth Strategy + Continue to consolidate fragmented industry Pursue + Focus on expanding customer base, geographic Strategic coverage and vendor relationships Acquisitions + Build out national footprint + Continue to hire and retain engineering talent Expand Professional + Continue to grow Managed
Slide 12: Critical Partner to Vendors and Customers
Critical Partner to Vendors and Customers Vendors Customers + Extension of internal + Best‐of‐breed solutions sales force + Trusted IT advisor + Incremental technical + Vendor agnostic + Data Center/Cloud resources + Collaboration + Top‐level certifications + Established customer + Infrastructure ba
Slide 13: Financial Overview
Financial Overview Elaine Marion, CFO 13 © ePlus inc. E XCELLENCE THROUGH E XPERIENCE
Slide 14: Financial Highlights
Financial Highlights +Track record of revenue and profitability growth +Two operating segments: technology and financing +Investing in headcount to drive continued growth +Strong balance sheet 14 © ePlus inc. E XCELLENCE THROUGH E XPERIENCE
Slide 15: Financial Results for the Year Ended March 31, 2013
Financial Results for the Year Ended March 31, 2013 + Revenues totaled $983.1 million, up 19.1% to year‐over‐year + Sales of product & services totaled $936.2 million, up 19.3% year‐over‐year + Gross margin on product & services was 18.0%, as compared to 17.8% in FY12 + Net earnings totaled $34.8 mi
Slide 16: Financial Results for the Quarter Ended 12/31/2013 (3Q14)
Financial Results for the Quarter Ended 12/31/2013 (3Q14) + Revenues totaled $267.2 million, up 10.4% year‐over‐year + Sales of product & services totaled $255.7 million, up 12.1% year‐over‐year + Gross margin on product & services was 18.9%, as compared to 17.5% in 3Q13 + Net earnings totaled $10.6
Slide 17: Strong Balance Sheet
Strong Balance Sheet + Cash and cash equivalents: $40.5 million as of 12/31/2013 + Cash used to date in FY2014 included $7.8 million in stock repurchases, the acquisition of AdviStor, Inc, and purchases of equipment and software that we finance for our customers. + Financing segment portfolio of $14
Slide 18: Segment Results
Segment Results + Technology Segment + Financing Segment Sales Operating and direct finance leases For the year ended March 31, 2013 (FYE13), Cisco Ability to hold leases on balance sheet or syndicate sales generated 48% of revenue; HP sales generated debt and equity 11% of revenue Quarter End
Slide 19: Investing in Future Growth
Investing in Future Growth +Increasing headcount to drive future growth +Grew headcount by 10.6% over prior year 12/31/2012 +Investments primarily in sales and engineering +Expanding geographic footprint and solution offerings 19 © ePlus inc. E XCELLENCE THROUGH E XPERIENCE
Slide 20: Investment Summary
Investment Summary + Large fragmented market + History of consistent growth and profitability + Differentiated business model serving entire IT lifecycle + Key industry partnerships + Deep expertise in advanced technology and commitment to operational excellence + Multiple growth drivers + Strong ba
Slide 21: Contact Information
Contact Information Kley Parkhurst, SVP ePlus inc. (703) 984‐8150 investors@eplus.com ePlus inc. 13595 Dulles Technology Drive Herndon, VA 20171‐3413 (703) 984‐8400 www.eplus.com 21 © ePlus inc. E XCELLENCE THROUGH E XPERIENCE