Eplus Inc. · NASDAQ:PLUS
Eplus — Investor Presentation (March 2009)
18 slides from Eplus's investor presentation, March 2009
Slide 1: ePlus
ePlus March, 2009 1
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
Slide 3: Company Overview
Company Overview Pl provides ePlus id technology t h l solutions l ti and d IT products, d t specializing i li i in i advanced d d technology engineering services, leasing and proprietary software to automate the supply chain including spend analysis, procurement and asset management + Headquartered
Slide 4: History
History Sales more than doubled with only a 28% expansion of the workforce 2008 Achieved FY08 sales of $777mn 2006 Received HP Performance 2007-2008 2004 Excellence Achieves Cisco Master Achieved FY04 sales Award Certifications of $331mn Acquired q Manchester Technologies assets 2008 Accomplishments
Slide 5: Investment Highlights
Investment Highlights + Large addressable market $491 billion market for IT spending in North America (IDC 1) Decline of 8% in FY 09 (Goldman 2); Increase 0.5% (IDC 1) Highly g y fragmented: g 70,000 , p potential middle market to larger g companies p with annual revenues between $25 million a
Slide 6: Solid Balance Sheet
Solid Balance Sheet Priorities for Use of Cash 1) Retain on balance sheet + Liquidity: $86.6 million in cash as of 12/31/08 as defense until economy + Working Capital Facilities: recovers + $35 million revolver available 2) Strategic & prudent Undrawn as of 12/31/08 acquisitions + $125 million inv
Slide 7: Strong Historical Growth
Strong Historical Growth Revenue ($ millions) $900 $849.3 $791.6 + History of strong revenue growth $647.3 23% CAGR from 2003-2008 $600 $575.8 $299.6 $330.6 + Solid earnings improvement $300 16% CAGR from 2003-2008 $0 FY03 FY04 FY05 FY06 FY07 FY08 Diluted Earnings Per Share $2.90 $2.73 $2.40 $2.
Slide 8: Recent Results
Recent Results + Fiscal 3Q09 Results (9 mos. ended 12/31/08): Revenues decreased 6.9% to $185 million Sales S l off product d t & services i iincreased d11.9% 9% tto $172 million illi Gross margins on products & services improved by 310bp Total costs and expenses declined 7.7% Non-GAAP N G
Slide 9: Differentiated Go To Market
Differentiated Go To Market ePlus enables organizations to optimize Complete Solution their infrastructure and supply chain processes by helping companies with the Volume entire IT lifecycle: + Direct sales of world-class products from top Value manufacturers Life Cycle + Network design, maint
Slide 10: Diversified Customer Base
Diversified Customer Base + More than 1,500 customers in a variety of industries and geographies No single customer represents more than 5% of revenue Public P bli sector t + Majority of commercial customers are middle market in size + Significant opportunity to expand current client base 70,0
Slide 11: Multiple Sources of Revenue and Earnings
Multiple Sources of Revenue Revenues by BU and Earnings 9 mos. 12/08 + Technology Technolog Sales 93% Cisco (FY08: 38% of revenue) HP (FY08: 22% of revenue) Plus most major mfgs: (VMWare, NetApp, 7% Sun, Microsoft, EMC, IBM, etc.) Tiered mfg. incentive programs and rebates Category Diversi
Slide 12: ePlus Technology Growth Strategy
ePlus Technology Growth + HP Enterprise & Platinum Elite Partner Strategy Highest Level of Authorization + Cisco Gold Certified Partner + Capture C t more opportunities t iti iin llocall + Master Unified Communications and Security Specialized VMware Premier Partner & VAC Gold markets by increas
Slide 13: Leasing
Leasing + Maintain credit quality and risk profile + Use balance sheet to provide financing to credit worthy customers + Increase focus on federal government & public sector + Focus on ePlus Technology customers to increase both leasing volume and technology sales + Hire new sales personnel Financin
Slide 14: Software Solutions
Software Solutions + eProcurement P t – Procure P + SAAS Outsource order processing, reduce d i invoicing, i i vendor d consolidation, service to reduce costs. + OneSourceIT+ Specialized for the IT supply chain + Product P d t Information I f ti Management Content Management Supplier Enabl
Slide 15: Growth (& Defense) Strategy
Growth (& Defense) Strategy + Retain balance sheet strength through economic downturn + Capture more spend and broaden reach within our customer base Add-on sales and services Drive repeat business + Profitably expand market share Expand customer base TeleSales for new customers New salesp
Slide 16: Appendix
THROUGH EXPERIENCE Appendix 16
Slide 17: Reconciliation of Non-GAAP Information
RECONCILIATION OF NON-GAAP INFORMATION (UNAUDITED) Three Months Ended Nine Months Ended December 31, December 31, 2008 2007 [2] 2008 2007 [2] (amounts in thousands, except for per share) GAAP earnings before provision for income taxes as reported $3,408 $6,743 $20,504 $24,286 Plus: Impairment of goo
Slide 18: For More Information
For More Information Kley Parkhurst, SVP ePlus inc. inc (703) 984-8150 investors@eplus com investors@eplus.com ePlus inc. inc 13595 Dulles Technology Drive Herndon VA 20171 Herndon, 20171-3413 3413 (703) 984-8400 www eplus com www.eplus.com 18