Eplus Inc. · NASDAQ:PLUS
Eplus — Investor Presentation (June 2009)
17 slides from Eplus's investor presentation, June 2009
Slide 1: ePlus inc. Investor Presentation
ePlus inc. inc Investor Presentation June, 2009 © ePlus inc. Confidential and Proprietary.
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: Company Overview
Company Overview ePlus provides technology solutions and IT products, specializing in advanced technology engineering services, leasing and proprietary software to automate the supply chain including spend analysis, procurement and asset management + Headquartered in Herndon, VA 656 employees as o
Slide 4: History of Accomplishments
History of Accomplishments Sales more than doubled with only a 28% expansion of the workforce 2009 Achieved sales of $698mm 2006 Received HP Performance 2007-2008 2004 Excellence Achieves Cisco Master Achieved FY04 sales Award Certifications of $331mm Acquired Manchester Technologies assets Recent A
Slide 5: Investment Thesis
Investment Thesis + Large addressable market $491 billion market for IT spending in North America1 Decline of 8% in FY 092; Increase 0.5%1 Highly fragmented: 50,000 potential middle market to larger companies with annual revenues between $25 million and $2.5 billion + Diversified Di ifi d cust
Slide 6: Solid Balance Sheet
Solid Balance Sheet + Liquidity: $107.8 million of cash and cash Priorities for Use of Cash equivalents as of 03/31/09 1) Retain on balance sheet + Working Capital Facilities: until economy recovers + $125 million inventory y & A/R line 2) Strategic & prudent acquisitions i iti $45.1 million balan
Slide 7: Annual Results
Annual Results + Revenues declined 17.8% Revenue ($ millions) Higher Sales of Leased $900 $791.6 $849 3 $849.3 Equipment in Prior Year $647.3 $698.0 $575.8 General Economic Conditions $600 + Net earnings declined 21.6% 21 6% $330 6 $330.6 $300 Results include a pre‐tax goodwill impairment char
Slide 8: Quarterly Results
Quarterly Results + Fiscal 4Q09 Results (ended 03/31/09): Revenues decreased 28 28.3% 3% to $134 $134.2 2 million Sales of product & services decreased 28.6% to $119.3 million Gross margins on products & services improved 5 basis points to 13.1% Selling, Selling general and administrative ex
Slide 9: Differentiated 'Go To Market' Strategy
Differentiated ‘Go To Market’ Strategy ePlus enables organizations to optimize their infrastructure and supply chain processes by helping companies with the entire IT lifecycle: A Complete Solution + Direct sales of world-class products from + Volume top manufacturers + Value + Network design, maint
Slide 10: Diversified Customer Base
Diversified Customer Base + More than 1,500 customers in a variety of industries and geographies No N single i l customer t represents t more th than 5% off revenue Public sector + Majority of commercial customers are middle market in size + Significant opportunity to expand current client base
Slide 11: Multiple Sources of Revenue and Earnings
Multiple Sources of Revenue and Earnings Revenues by BU + Technology Sales FYE09 Cisco (FY09: 36% of revenue) 92% HP (FY09: 18% of revenue) Plus major mfgs: (VMWare, NetApp, Sun, Microsoft,, EMC,, IBM,, etc.)) Tiered mfg. incentive programs and rebates 8% Category Diversity Customer/Geog
Slide 12: Technology Growth Strategy
Technology Growth Strategy HP Enterprise & Platinum Elite Partner • Highest Level of Authorization + Capture more opportunities in local Cisco Gold Certified Partner markets by increasing visibility with • Master Unified Communications and Security Specialized VMware Premier Partner & VAC Gold impor
Slide 13: Leasing
Leasing + Maintain credit quality and risk profile + Use U b balance l sheet h t tto provide id fifinancing i tto credit dit worthy th customers t + Increase focus on federal government & public sector + Focus on ePlus Technology customers to increase both leasing volume and technology sales + Hire
Slide 14: Software Solutions
Software Solutions + eProcurement – Procure+ SAAS Outsource order processing, reduce invoicing, vendor consolidation, service to reduce costs. t + OneSourceIT+ Specialized for the IT supply chain + Product Information Management g Content Management Supplier Enablement Catalog Management
Slide 15: Conclusion
Conclusion + 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 salespeople + Acquisiti
Slide 16: Appendix: Non-GAAP Financial Results
Appendix: Non-GAAP Financial Results RECONCILIATION OF NON-GAAP INFORMATION Year Ended March 31, 2009 2008 [2] (i thousands, (in th d exceptt per share h amounts) GAAP earnings before provision for income taxes as reported $22,048 $29,942 Plus: Impairment of goodwill 4,644 - Non-GAAP Earnings before
Slide 17: Contact Information
Contact Information Kley Parkhurst Parkhurst, SVP ePlus inc. (703) 984 984-8150 8150 investors@eplus.com ePlus inc. 13595 Dulles Technology Drive Herndon, VA 20171-3413 (703) 984 984-8400 8400 www.eplus.com 17 © ePlus inc. Confidential and Proprietary.