Eplus Inc. · NASDAQ:PLUS
Eplus — Sidoti investor presentation March 2015
26 slides from Eplus's conference presentation, March 2015
Slide 1: Investor Presentation March 2015
™ Investor Presentation March 2015 ePlus. Where Technology Means More.™
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: Kley Parkhurst, Senior Vice President
™ Kley Parkhurst Senior Vice President ePlus. Where Technology Means More.™
Slide 4: ePlus at a Glance
ePlus at a Glance + Leading provider of technology solutions focused on cloud, data center, security, infrastructure, and collaboration solutions + Technology partners include Cisco, EMC, HP, NetApp and VMware + FY14 revenue: $1.1 billion 18% CAGR FY10‐FY14 + FY 14 earnings per share: $4.37 31%
Slide 5: Experienced Leadership Team, Strong Alignment of Interest
Experienced Leadership Team, Strong Alignment of Interest + Stable senior management team; compensation aligned with growth objectives Phil Norton Mark Marron Elaine Marion Dan Farrell Chairman, Chief Executive Officer Chief Operating Officer and Chief Financial Officer Senior Vice President of Nati
Slide 6: Multiple Vectors of Growth: Investment Considerations
Multiple Vectors of Growth: Investment Considerations + Continue to consolidate fragmented industry Pursue + Focus on expanding customer base, geographic Strategic coverage and vendor relationships Acquisitions + Build out national footprint + Continue to hire and retain engineering talent Expand Pr
Slide 7: Well Positioned within the IT Ecosystem
Well Positioned within the IT Ecosystem + ePlus’ range of complex solutions and services place it at the high end of the IT market Vendors Gross Distributors VARs IT Solutions Services / Integrators Margin 1 20 – 65% GM 5 – 13% GM 13 – 16% GM 20 – 23% GM 30 – 32% GM • 1 Based on LTM GAAP gross margi
Slide 8: IT Market Needs Have Become Increasingly Complex
IT Market Needs Have Become Increasingly Complex 2000s Today Cloud Datacenter Security Software & Hardware Resale Collaboration Mobility BYOD Managed Services Networking 2013 Top 10 IT Budget Priorities 1 30% 27% 26% 25% 19% 20% 17% 17% 16% 15% 15% 14% 10% 0% Cloud Virtualization IT Mobile Software
Slide 9: Large TAM with Solid Fundamentals
Large TAM with Solid Fundamentals Expectations for U.S. IT Spending 1 Expected Growth for Complex IT Solutions in the U.S. 2 ($ in billions) ($ in billions) Market 2012 2017E CAGR Mobility $2.4 $11.7 37% Cloud $19.1 $49.3 21% Security $24.6 $36.0 8% Managed $40.8 $53.7 6% Services Virtualization $2.
Slide 10: Expanding Footprint and Capabilities
Expanding Footprint and Capabilities + 408 sales resources + 303 engineering professionals + Serving middle‐market clients to large multinational enterprises + Customer‐centric project management + Ability to deploy complex solutions globally + = Regional Offices ★= Sales Offices = Managed Services
Slide 11: End-to-End Suite of Customized Solutions
End‐to‐End Suite of Customized Solutions Cloud Data Center + Private +Automation and + Hybrid Orchestration + Public + Virtualization + Cloud Networking + Compute + Disaster Recovery + Storage as a Service Collaboration Security + Unified Communications + Perimeter + Premise & Cloud Based Video + Da
Slide 12: Expanding Professional and Managed Services
Expanding Professional and Managed Services + Hired Dan Farrell as Senior Vice President of National Professional Services in 2010 Expansion Highlights (since 2010) + Expanded services headcount by 93% + Grew managed service center locations from 1 to 3 + Consistent growth in services revenue Key Se
Slide 13: Independent Provider with Deep Strategic Relationships
Independent Provider with Deep Strategic Relationships Selected Strategic Partners Complemented by Additional Relationships + Top vendor for ePlus, representing 48% of technology sales 1 + Networking, security, converged infrastructure + ePlus engineers are trained in 26 different Cisco product line
Slide 14: Deep Expertise and Experience with Emerging Vendors
Deep Expertise and Experience with Emerging Vendors Selected Emerging Vendors Featured Vendors ($ in thousands, FYE 3/31) Storage $5,085 Vendor A $285 Security FY2012 FY2014 $16,003 Big Data Vendor B $1,004 FY2012 FY2014 Network $2,160 Vendor C $146 Servers FY2012 FY2014 Well‐positioned for continue
Slide 15: Broad and Diverse Customer Base
Broad and Diverse Customer Base + Focused on enterprise and middle‐market customers + > 2,800 existing customers* + Only one 10% (of revenues) customer in FY2014 + Broad‐based services capabilities and multi‐ vendor relationships driving customer acquisition + Trusted IT advisor with vendor agnostic
Slide 16: Select Clients
Select Clients State & Local Government Telecom, Media & Technology and Education Entertainment Financial Services Healthcare Other © 2015 ePlus inc. Confidential and Proprietary. ePlus. Where Technology Means More.™ 16
Slide 17: Elaine Marion, Chief Financial Officer
™ Elaine Marion Chief Financial Officer ePlus. Where Technology Means More.™
Slide 18: Impressive Financial Results
Impressive Financial Results ($ in millions, except per share data, FYE 3/31) Revenue Gross Profit $250 $217 50% $1,057 $205 $983 $200 40% $1,000 $172 $157 $826 $800 $719 $150 $129 30% $600 $551 $100 20% 17.9% 17.8% 18.0% 18.3% $400 $50 17.7% 10% $200 $0 0% FY2010 FY2011 FY2012 FY2013 FY2014 $0 FY20
Slide 19: Financial Contribution, by Segment
Financial Contribution, by Segment ($ in millions, FYE 3/31) Revenue by Segment Operating Income by Segment 100% 4.0% 4.1% 3.4% 7.0% 5.3% 100% 14.6% 20.3% 20.8% 80% 31.1% 33.9% 80% 60% 60% 93.0% 94.7% 96.0% 95.9% 96.6% 40% 40% 85.4% 79.7% 79.2% 68.9% 66.1% 20% 20% 0% 0% FY2010 FY2011 FY2012 FY2013 F
Slide 20: Positive Comparisons in 3Q15
Positive Comparisons in 3Q15 Revenue Gross Profit $310.0 $306.2 $65.4 $70.0 50.0% $300.0 $8.4 $56.7 $5.8 $60.0 $290.0 $6.2 40.0% $50.0 $280.0 $50.5 $59.6 30.0% $267.2 $40.0 $270.0 Financing $9.2 $297.8 $30.0 20.0% $260.0 Technology $20.0 18.9% 19.4% $250.0 10.0% $258.0 $10.0 $240.0 $- 0.0% $230.0 3Q
Slide 21: Positive Comparisons YTD FY15
Positive Comparisons YTD FY15 Revenue Gross Profit $900.0 $210.0 50.0% $876.0 $185.8 $190.0 $870.0 $18.1 40.0% $26.4 $170.0 $162.3 $840.0 $150.0 $18.3 30.0% $167.7 $130.0 $144.0 $810.0 $797.6 Financing $110.0 20.0% $780.0 $28.1 $849.6 $90.0 19.2% Technology 18.1% 10.0% $70.0 $750.0 $769.5 $50.0 0.0%
Slide 22: Growing Productivity While Strategically Expanding Workforce
Growing Productivity While Strategically Expanding Workforce ($ in millions, FYE 3/31) Revenue per Sales & Marketing Employee Employee Headcount Growth by Function Revenue per Employee Note: Excludes part time employees © 2015 ePlus inc. Confidential and Proprietary. ePlus. Where Technology Means Mo
Slide 23: Strong Balance Sheet
Strong Balance Sheet ($ in millions) Assets 12/31/2014 3/31/2014 + $52 million in cash and equivalents Cash and equivalents $52 $80 + $225 million financing facility with Accounts receivable 273 243 GE Commercial Distribution Inventory 24 23 Finance Financing investments 165 144 + Financing portfoli
Slide 24: Appendix
™ Appendix ePlus. Where Technology Means More.™
Slide 25: Reconciliation of Non-GAAP Information
ePlus inc. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP INFORMATION Three Months Ended Nine Months Ended December 31, December 31, 2014 2013 [4] 2014 2013 [4] (in thousands, except per share amount) GAAP earnings before provision for income taxes as reported $26,731 $18,053 $63,233 $46,101 Less: Othe
Slide 26: Investor Relations Contact Information
Investor Relations 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 © 2015 ePlus inc. Confidential and Proprietary. ePlus. Where Technology Means More.™ 26