Thu, May 23, 10:02 AM (151 days ago)
ePlus inc.'s Form 10-K for the fiscal year ended March 31, 2024, highlights several key financial metrics and business trends. The company's net sales increased by 7.6% to $2.23 billion, driven by higher revenues from its technology business segments, particularly in product, professional services, and managed services. Gross profit rose by 6.4% to $550.8 million, though gross margins slightly decreased by 20 basis points to 24.8%. Operating income fell by 4.8% to $158.3 million, with an operating margin of 7.1%, down 90 basis points from the previous year due to increased operating expenses. The technology business segments saw an 8.0% increase in net sales to $2.18 billion, with gross profit rising by 7.2% to $508.5 million. The financing business segment experienced a 5.8% decline in net sales to $49.4 million, primarily due to lower post-contract earnings. Adjusted EBITDA for the consolidated entity was stable at $190.4 million, with a margin of 8.6%. Key business trends include general economic concerns like inflation and rising interest rates, which could impact customer spending. The company continues to focus on areas such as AI, security, cloud solutions, and digital transformation. ePlus's liquidity remains strong, with $149.9 million in net cash provided by operating activities, and it maintains a credit facility with a maximum limit of $500 million.