Eplus Inc. · NASDAQ:PLUS
Eplus — Investor Presentation (November 2017)
30 slides from Eplus's investor presentation, November 2017
Slide 1: Investor Presentation
Investor Presentation November 2017 © 2017 ePlus inc.
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation that are not historical facts may be deemed to be "forward-looking statements." Actual and anticipated future results may vary materially due to certain risks and uncertainties, including, without limitation, possible adverse effects resulting fr
Slide 3: Mark Marron, Chief Executive Officer
Mark Marron Chief Executive Officer © 2017 ePlus inc. I 3
Slide 4: ePlus at a Glance
ePlus at a Glance + Leading provider of technology solutions focused on cloud, security, and digital infrastructure + Technology partners include Cisco, Dell/EMC, HPE, Juniper, NetApp and VMware + FY17 net sales: $1.3 billion 8% CAGR FY13-FY17 + FY17 non-GAAP earnings per share: $3.74 * 14% CAGR
Slide 5: Experienced Leadership Team
Experienced Phil Norton Elaine Marion Darren Raiguel Leadership Executive Chairman Joined ePlus in 1994 Chief Financial Officer Joined ePlus in 1998 Executive Vice President, Technology Sales Team 45+ Years of Experience 25+ Years of Experience Joined ePlus in 1997 25+ Years of Experience Dan Mark K
Slide 6: Well Positioned within the IT Ecosystem
Well Positioned within the IT Ecosystem Our range of complex solutions and services places us in high end of the IT market Vendors Distributors VARs IT Solutions Services/Integrators 25 – 65% GM 5 – 13% GM 13 – 16% GM 17 – 23% GM 29 – 32% GM GROSS MARGIN 1 INCREASING CUSTOMER VALUE AND VENDOR MARGIN
Slide 7: International footprint
International footprint REGIONAL OFFICES SALES OFFICES MANAGED SERVICES CENTERS 40+ locations serving the U.S., Europe, and Asia-Pac 5 Managed Services Centers / 6 Integration Centers throughout the U.S. 460+ technical and support resources certified by the top IT manufacturers in the world © 2017 e
Slide 8: Targeted M&A Strategy with Track Record of Success
Targeted M&A Strategy with Track Record of Success + September 2017 ($38.4 million) + May 2017 ($10.0 million) + December 2016 ($13.1 million) + December 2015 ($16.6 million) division of CCI + Chicago and Indianapolis data + Cloud-based services, solutions + Expand security offerings centers and Dev
Slide 9: Customized Solutions…
Customized Solutions… Positioned squarely at the forefront of today’s most transformative technologies Cloud Security Digital Infrastructure Creating a customized Delivering tailored cybersecurity Supporting the next phase of roadmap, then designing, programs built upon strong digitization with solu
Slide 10: Customized Solutions…
Customized Solutions… Positioned squarely at the forefront of today’s most transformative technologies Cloud Security Digital Infrastructure Enterprise Defined Data Center Strategy and Risk IoT and Analytics Agile Infrastructure Management SD-WAN Architecture and Design Software-Defined Public Cloud
Slide 11: And Measurable Results
And Measurable Results Our services and financing expertise helps organizations imagine, implement, and achieve more from technology. Services Financing and Applying a lifecycle approach that Consumption Models includes consulting, designing, Enabling technology acquisitions architecting, and implem
Slide 12: And Measurable Results
And Measurable Results Our services and financing expertise helps organizations imagine, implement, and achieve more from technology. Services Financing and Enhanced Maintenance Support Monitoring Services Consumption Models Managed Services As-a-Service Opex Payment Models Staffing OEM Solutions Ex
Slide 13: Independent Provider with Deep Strategic Relationships
Independent Provider with Deep Strategic Relationships SELECTED STRATEGIC PARTNERS + COMPLEMENTED BY ADDITIONAL EMERGING RELATIONSHIPS VENDORS SECURITY + Excellent channel partner for ePlus, representing 47% of technology sales 1 + Networking, security, converged infrastructure + ePlus engineers are
Slide 14: Broad and Diverse Customer Base
Broad and Diverse Customer Base 1 1 Trailing twelve months ended 9/30/2017 24% 18% 15% 14% 12% 17% GOVERNMENT TELECOM, FINANCIAL TECHNOLOGY ENTERTAINMENT, HEALTHCARE OTHER & EDUCATION SERVICES & MEDIA © 2017 ePlus inc. I 14
Slide 15: Sampling of Our Customers
Sampling of Our Customers GOVERNMENT TELECOM, FINANCIAL TECHNOLOGY ENTERTAINMENT, HEALTHCARE OTHER © 2017 ePlus inc. I 15 & EDUCATION SERVICES & MEDIA
Slide 16: Why ePlus
Why ePlus In today’s constantly changing, complex tech landscape, organizations need a partner that can solve short-term challenges with sustainable solutions that ensure long-term success. “Do what it takes” Industry-leading Comprehensive Proven processes Highly-accessible, dedication consultative
Slide 17: Elaine Marion, Chief Financial Officer
Elaine Marion Chief Financial Officer © 2017 ePlus inc. I 17
Slide 18: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended September 30, unaudited Net Sales and Adjusted Gross Billings * ($mm) + Operations are conducted through two segments. The technology segment sells $2,000 information technology products, software and $1,776 $1,876 services, while
Slide 19: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended September 30, unaudited Gross Profit and Gross Margin, Product and Services ($mm) + Consolidated gross profit increased at a compounded annual rate of 10% from FY13 to $400 25.0% FY17, driven by our technology segment, which repres
Slide 20: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended September 30, unaudited Net Earnings ($mm) + From FY13 to FY17, net earnings increased at a $60 compounded annual rate of 10% as a result of $50 focusing on revenue growth and controlling overhead expenses. $40 $54 $51 $48 $46 + FY
Slide 21: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended September 30, unaudited Adjusted EBITDA * ($mm) + Adjusted EBITDA represents net earnings before interest expense, depreciation and amortization, provision for income taxes, and other income. $100 $97 7.5% $93 Interest on notes pay
Slide 22: Results for Q2 FY18
Results for Q2 FY18 Net Sales and Adjusted Gross Billings * ($mm) Gross Profit and Gross Margin, Product and Services ($mm) $100 28.0% $600 $87.6 $81.9 $503.6 $80 24.0% $500 $487.3 $60 20.0% $371.5 $370.8 21.2% $400 20.2% $40 16.0% $300 $20 12.0% 2Q17 2Q18 $200 Gross Profit, Technology Gross Profit,
Slide 23: Results for Q2 FY18 YTD
Results for Q2 FY18 YTD Net Sales and Adjusted Gross Billings * ($mm) Gross Profit and Gross Margin, Product and Services ($mm) $200 22.0% $1,200 $165.2 $149.6 $985.3 $150 21.0% $950 $884.8 $738.0 $100 20.5% 20.0% $670.0 20.2% $700 $50 19.0% $450 $0 18.0% 2Q17 YTD 2Q18 YTD $200 Gross Profit, Technol
Slide 24: Growing Productivity While Strategically Expanding Workforce
Growing Productivity While Strategically Expanding Workforce Employee Headcount Growth by Function Adj. Gross Billings Per Sales & Marketing Employee ($mm) 1,400 $4.0 1,173 $3.6 7 $3.5 $3.3 1,200 73 890 $3.0 1,000 200 9 $2.5 77 800 184 400 $2.0 FY13 FY17 600 264 Adj. Gross Billings Per Employee ($mm
Slide 25: Strong Balance Sheet
Strong Balance Sheet $ in millions + $60 million in cash and equivalents Assets September 30, 2017 March 31, 2017 Ca s h a nd equi va l ents $ 60 $ 110 + $325 million financing facility with Wells Accounts recei va bl e 323 291 Inventory 51 93 Fargo Commercial Distribution Finance, LLC Fi na nci ng
Slide 26: Appendix
Appendix © 2017 ePlus inc. I 26
Slide 27: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands, except per share information Year Ended March 31, TTM Ended September 30, 2017 2016 2015 2014 2013 2017 2016 Sa l es of product a nd s ervi ces , a s reported $ 1,290,228 $ 1,163,337 $ 1,100,884 $ 1,013,374 $ 936,228 $ 1,353,659 $ 1,230,790 Cos ts i ncu
Slide 28: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands, except per share information Three Months Ended September 30, Six Months Ended September 30, 2017 2016 2017 2016 Sa l es of product a nd s ervi ces , a s reported $ 357,759 $ 361,227 $ 714,839 $ 651,408 Cos ts i ncurred rel a ted to s a l es of thi rd p
Slide 29: Return on Invested Capital
Return on Invested Capital $ in thousands Year Ended March 31, TTM Ended September 30, 2017 2016 2015 2014 2013 2017 2016 Numerator Opera ti ng i ncome $ 85,732 $ 75,751 $ 70,710 $ 60,098 $ 58,745 $ 89,378 $ 79,713 Les s : Ta xes [1] (34,293) (30,300) (28,284) (24,039) (23,498) (35,751) (31,885) Net
Slide 30: Investor Relations
Investor Relations ePlus inc. Kley Parkhurst, SVP 13595 Dulles Technology Drive, Herndon, VA (703) 984-8150 20171-3413 (703) 984-8400 / [email protected] eplus.com ©2017 ePlus inc. All rights reserved. ePlus, the ePlus logo, and all referenced product names are trademarks or registered trademarks