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Earnings Highlights and Review: ePlus' Quarterly Sales Jumped 11%; EPS Grew 10%

Research Desk Line-up: Cloudera Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 15, 2017 / Pro-Trader Daily publishes post-earnings coverage on ePlus inc. (NASDAQ: PLUS) following the Company's posting of its fourth quarter and fiscal 2017 earnings results on May 24, 2017. The provider of technology solutions met earnings expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Application Software industry. Pro-TD has currently selected Cloudera, Inc. (NYSE: CLDR) for due-diligence and potential coverage as the Company reported on June 08, 2017, its financial results for Q1 FY18 which ended on April 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Cloudera when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on PLUS; also brushing on CLDR. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=PLUS

http://protraderdaily.com/optin/?symbol=CLDR

Earnings Reviewed

For the quarter ended March 31, 2017, ePlus' consolidated net sales increased 11.1% to $332.8 million compared to $299.4 million in Q4 FY16. For FY17, the Company's consolidated net sales rose 10.4% to $1.33 billion from $1.20 billion.

For Q4 FY17, ePlus' adjusted gross billings of product and services increased 14.9% on a y-o-y basis to $458.5 million. In FY17, the Company's adjusted gross billings of product and services grew 14.1% to $1.78 billion.

During Q4 FY17, the Company's consolidated gross profit rose 14.1% to $76.4 million from $66.9 million in the prior quarter, while consolidated gross margin expanded 60 basis points to 23.0%. ePlus attributed the upside to an increase in sales of financing transactions in the Company's financing segment and stable margin trends in its technology segment.

During Q4 FY17, ePlus consolidated operating income advanced 14.4% to $18.7 million from $16.4 million. The higher gross profit from both the technology and financing segment contributed to the upside. The Company's adjusted EBITDA rose 13.2% to $20.6 million from $18.2 million.

ePlus posted net earnings of $10.5 million for Q4 FY17, up 5.4% compared to earnings of $9.96 million in Q4 FY16. The Company's diluted earnings per share increased 10.3% to $0.75 compared with $0.68 in the prior year's same quarter. ePlus' non-GAAP diluted earnings per share grew 8.2% to $0.79 compared with $0.73 in Q4 FY16. The Company's earnings numbers met Wall Street's forecasts of $0.79 per share.

For FY17, ePlus' net earnings rose 13.0% to $50.6 million, inclusive of non-operating income of $0.4 million relating to the Company's claim in the class action lawsuit. ePlus' diluted earnings per share were $3.60 compared with $3.05 in FY16. Non-GAAP diluted earnings per share were $3.74 compared with $3.16 in the year ago corresponding period.

Segment Results

During Q4 FY17, ePlus' technology segment's net sales rose 10.4% to $322.5 million from $292.2 million in Q4 FY16. The business unit's adjusted gross billings of products and services advanced 14.9% to $458.5 million from $399.1 million in the prior year's same quarter. The increase in net sales and adjusted gross billings of products and services was attributed to an increase in demand for products and services from the Company's large corporate customers, and the acquisition of Consolidated Communication's IT services and equipment integration business in December 2016.

For Q4 FY17, Technology segment's gross margin on sales of product and services was 20.5% compared with 20.6% in Q4 FY16. The division's operating expenses rose 13.9% to $54.1 million from $47.5 million in the year earlier same quarter, primarily attributable to an increase of $5.6 million, or 14.6%, in salaries and benefits due to an increase in variable compensation and an increase of 106, or 10.4%, in personnel to 1,126 from 1,020.

During Q4 FY17, ePlus' Financing segment's net sales surged 43.4% to $10.3 million in Q4 FY17 from $7.2 million in Q4 FY16, as a result of higher transactional gains. The segment's direct lease costs decreased $0.1 million, or 11.0%, due to a lower depreciation expense from operating leases.

In the reported quarter, the Financing segment's operating expenses increased 14.6% on a y-o-y basis, mainly due to an increase in variable compensation associated with higher gross profit. The division's operating income and adjusted EBITDA both increased to $5.8 million from $3.0 million in Q4 FY16.

Balance Sheet Highlights

As of March 31, 2017, ePlus had cash and cash equivalents of $109.8 million compared with $94.8 million as of March 31, 2016. The Company's cash conversion cycle increased to 38 days at the end of FY17, up from 18 days at the end of FY16. The increase was due to a large step-up in inventory. During FY17, the Company repurchased $26.8 million of its outstanding common stock and permanently retired all 6.2 million shares of treasury stock on March 31, 2017.

Stock Performance

At the closing bell, on Wednesday, June 14, 2017, ePlus' stock dropped 1.17%, ending the trading session at $75.85. A total volume of 58.82 thousand shares have exchanged hands. The Company's stock price skyrocketed 15.45% in the last three months, 32.55% in the past six months, and 73.05% in the previous twelve months. Moreover, the stock soared 31.68% since the start of the year. The stock is trading at a PE ratio of 20.99 and currently has a market cap of $1.06 billion.

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