--Achieved Double-digit Gross Profit Growth and Year-on-Year Gross Margin Expansion--

 

  Second Quarter Fiscal Year 2020

 

  • Net sales increased 19.3% to $411.6 million; technology segment net sales increased 18.8% to $397.7 million; service revenues increased 35.1% to $48.1 million; financing segment net sales increased 34.8% to $13.8 million.
  • Adjusted gross billings increased 19.2% to $579.1 million.
  • Consolidated gross profit increased 20.5% to $103.0 million.
  • Consolidated gross margin was 25.0%, an increase of 20 basis points.
  • Net earnings increased 11.6% to $20.1 million.
  • Adjusted EBITDA increased 18.5% to $35.4 million.
  • Diluted earnings per share increased 13.5% to $1.51. Non-GAAP diluted earnings per share increased 18.3% to $1.81.

First Half Fiscal Year 2020

  • Net sales increased 13.0% to $792.9 million; technology segment net sales increased 12.4% to $766.3 million; service revenues increased 35.4% to $93.8 million; financing segment net sales increased 33.8% to $26.7 million.
  • Adjusted gross billings increased 16.5% to $1,127.4 million.
  • Consolidated gross profit increased 17.7% to $195.7 million.
  • Consolidated gross margin was 24.7%, an increase of 100 basis points.
  • Net earnings increased 9.0% to $36.3 million.
  • Adjusted EBITDA increased 15.8% to $64.0 million.
  • Diluted earnings per share increased 10.6% to $2.71. Non-GAAP diluted earnings per share increased 16.0% to $3.26.
 

HERNDON, Va.--(BUSINESS WIRE)-- ePlus inc. (NASDAQ:PLUS), a leading provider of technology and financing solutions, today announced financial results for the three and six months ended September 30, 2019.

Management Comment

“Second quarter results demonstrated the continuing benefits of our strategic focus on high growth areas of IT spending and the investments we have made to deliver complex solutions. Revenue growth of 19.3% for the quarter resulted primarily from capturing market share within our middle-market, enterprise, and international customer base, and new logo acquisition. Services revenue increased 35.1% and accounted for 11.7% of net sales. Sales of security products and services accounted for 20.1% of trailing twelve months adjusted gross billings, up 110 basis points year-on-year, and continue to represent a critical need for our entire customer base,” said Mark Marron, CEO and President of ePlus.

“Higher sales and a 20 basis point increase in gross margin helped drive a 20.5% increase in gross profit, and an 18.3% increase in non-GAAP diluted EPS.”

Second Quarter Fiscal 2020 Results

For the second quarter ended September 30, 2019 as compared to the second quarter of the prior fiscal year ended September 30, 2018:

Consolidated net sales increased 19.3% to $411.6 million, from $345.0 million.

Technology segment net sales increased 18.8% to $397.7 million, from $334.8 million primarily from an increase in sales to customers in the telecom, media and entertainment industry. Service revenues increased 35.1% to $48.1 million, from $35.6 million due to increases across all our services offerings including professional and managed and staff augmentation.

Adjusted gross billings increased 19.2% to $579.1 million due, in part, to organic growth and the acquisitions of SLAIT Consulting, LLC in January 2019 and ABS Technology in August 2019.

Financing segment net sales increased 34.8% to $13.8 million, from $10.3 million, primarily due to an increase in transactional gains.

Consolidated gross profit increased 20.5% to $103.0 million, from $85.5 million. Consolidated gross margin increased to 25.0% from 24.8% last year, due to higher service revenues.

Operating expenses increased 22.5% to $74.7 million, from $60.9 million, primarily due to an increase in variable compensation and additional costs associated with the acquisitions and operations of SLAIT Consulting, LLC and ABS Technology.

Consolidated operating income increased 15.5% to $28.4 million.

Our effective tax rate for the current quarter was 29.1%, compared with 27.7% in the prior year quarter, due primarily to an increase in estimated permanent items.

Net earnings increased 11.6% to $20.1 million.

Adjusted EBITDA increased 18.5% to $35.4 million, from $29.9 million.

Diluted earnings per share was $1.51, compared with $1.33 in the prior year quarter. Non-GAAP diluted earnings per share was $1.81, compared with $1.53 last year.

First Half Fiscal 2020 Results

For the six months ended September 30, 2019 as compared to the six months of the prior fiscal year ended September 30, 2018:

Consolidated net sales increased 13.0% to $792.9 million, from $701.6 million.

Technology segment net sales increased 12.4% to $766.3 million, from $681.6 million. Service revenues increased 35.4% to $93.8 million, from $69.3 million.

Adjusted gross billings increased 16.5% to $1,127.4 million due, in part, to organic growth as well as the acquisitions of SLAIT Consulting, LLC in January 2019 and ABS Technology in August 2019.

Financing segment net sales increased 33.8% to $26.7 million, from $19.9 million, primarily due to an increase in transactional gains.

Consolidated gross profit increased 17.7% to $195.7 million, from $166.2 million. Consolidated gross margin improved 100 basis points to 24.7%, compared with 23.7% last year, due to a shift in mix towards third-party maintenance, software assurance, subscription/SaaS licenses, and services as well as higher service revenues.

Operating expenses increased 19.3% to $144.5 million, from $121.2 million, primarily due to an increase in variable compensation and additional costs associated with the acquisitions and operations of SLAIT Consulting, LLC and ABS Technology.

Consolidated operating income increased 13.5% to $51.1 million.

Our effective tax rate for the current period was 28.9%, compared with 26.8% in the prior year. The increase in the rate was primarily due to a decrease in the tax benefit on the vesting of restricted stock and an increase in estimated permanent items.

Net earnings increased 9.0% to $36.3 million.

Adjusted EBITDA increased 15.8% to $64.0 million, from $55.3 million.

Diluted earnings per share was $2.71, compared with $2.45 in the prior year period. Non-GAAP diluted earnings per share was $3.26, compared with $2.81 last year.

 

Balance Sheet Highlights

 

As of September 30, 2019, ePlus had cash and cash equivalents of $55.8 million, compared with $79.8 million as of March 31, 2019. The decrease in cash and cash equivalents was primarily due to investments in our financing portfolio, and share repurchases totaling $13.7 million. Total stockholders' equity was $450.3 million, compared with $424.3 million as of March 31, 2019. Total shares outstanding were 13.5 million and 13.6 million on September 30, 2019 and March 31, 2019, respectively.

Summary and Outlook

“Strong first half results affirm ePlus’ strategy of investing in solution areas most in-demand by our customers, and providing industry-leading consultative, advisory, and managed services. Our ability to provide transformative solutions such as cloud migration strategies, integrated cyber security programs and digital business transformation initiatives, along with our core cloud, security and digital infrastructure offerings, is resonating with our middle market, enterprise, and multi-national customers and allowing us to capture market-share.

“We continue to expand our footprint and service offerings by seeking acquisitions to complement our organic growth. In August we acquired ABS Technology, which expanded our position in the mid-Atlantic region, especially in the state, local, and education (SLED) market. With a strong balance sheet and proven track record, we expect to continue to invest organically and through acquisitions to support our future growth,” Mr. Marron concluded.

Recent Corporate Developments/Recognitions

  • In the month of November:
    • ePlus was awarded Cisco’s Global Transformation & Innovation Partner of the Year and was named as its U.S. Partner of the Year, as well as four regional and vertical awards: Public Sector: SLED Software and Service Partner of the Year, Architectural Excellence Partner of the Year: Enterprise Networks East, Customer Experience Partner of the Year (Central), and Architectural Excellence Partner of the Year: Collaboration (West)
  • In the month of October:
    • ePlus announced that it has extended its Managed Services capabilities to include proactive monitoring and management of switching and wireless solutions from Aruba.
    • ePlus announced it has been awarded a new, five-year contract to provide Cisco technology products and services to the state of Connecticut.
  • In the month of September:
    • ePlus announced the launch of ePlus CyberSmart, an educational campaign spanning the month of October to provide best practices and thought leadership around organizational cyber security considerations.
    • ePlus announced that it has received the Cisco Gold Master Networking Certification, placing it among an elite group of fewer than 30 partners globally.
    • ePlus announced the successful completed its annual SOC 2 Type 2 examination reporting on controls at a service organization relevant to security, availability, and confidentiality for its Cloud Hosted Services.
  • In the month of August:
    • ePlus announced the acquisition of certain assets and liabilities of Innovative Technology Systems & Solutions, Inc. (dba “ABS Technology”).
    • ePlus announced the exclusive presenting sponsorship of a new Golf Digest Schools series entitled: My Game: Tiger Woods.

Conference Call Information

ePlus will hold a conference call and webcast at 4:30 p.m. ET on November 6, 2019:

Date:

 

November 6, 2019

Time:

 

4:30 p.m. ET

Live Call:

 

(844) 603-5099, domestic, (825) 312-2246, international

Replay:

 

(800) 585-8367, domestic, (416) 621-4642, international

Passcode:

 

2376784  (live and replay)

Webcast:

 

http://www.eplus.com/investors (live and replay)

The replay of this webcast will be available approximately two hours after the call and be available through November 13, 2019.

About ePlus inc.

ePlus is a leading consultative technology solutions provider that helps customers imagine, implement, and achieve more from their technology. With the highest certifications from top technology partners and expertise in key technologies from data center to security, cloud, and collaboration, ePlus transforms IT from a cost center to a business enabler. Founded in 1990, ePlus has more than 1,500 associates serving a diverse set of customers in the U.S., Europe, and Asia-Pac. The Company is headquartered at 13595 Dulles Technology Drive, Herndon, VA, 20171. For more information, visit www.eplus.com, call 888-482-1122, or email info@eplus.com. Connect with ePlus on Facebook at www.facebook.com/ePlusinc and on Twitter at www.twitter.com/ePlus.

ePlus. Where Technology Means More®.

ePlus® and ePlus products referenced herein are either registered trademarks or trademarks of ePlus inc. in the United States and/or other countries. OneCloud is a trademark of OneCloud Consulting, Inc. in the United States and/or other countries. The names of other companies and products mentioned herein may be the trademarks of their respective owners.

Forward-looking statements

Statements in this press release 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, national and international political instability fostering uncertainty and volatility in the global economy including exposure to fluctuation in foreign currency rates, interest rates and downward pressure on prices; reduction of vendor incentive programs; and restrictions on our access to capital necessary to fund our operations; our ability to successfully perform due diligence and integrate acquired businesses; disruptions or a security breach in our or our vendor’s IT systems and data and audio communication networks; the possibility of goodwill impairment charges in the future; significant adverse changes in, reductions in, or losses of relationships with one or more of our largest volume customers or vendors; the demand for and acceptance of, our products and services; our ability to adapt our services to meet changes in market developments; our ability to implement comprehensive plans for the integration of sales forces, cost containment, asset rationalization, systems integration and other key strategies; our ability to reserve adequately for credit losses; our ability to secure our own and our customers’ electronic and other confidential information and remain secure during a cyber-security attack; future growth rates in our core businesses; the impact of competition in our markets; our reliance on third parties to perform some of our service obligations to our customers; the possibility of defects in our products or catalog content data; our ability to adapt to changes in the IT industry and/or rapid changes in product offerings, including the proliferation of the cloud, infrastructure as a service and software as a service; our ability to realize our investment in leased equipment; maintaining and increasing advanced professional services by recruiting and retaining highly skilled, competent personnel and vendor certifications; and other risks or uncertainties detailed in our reports filed with the Securities and Exchange Commission. All information set forth in this press release is current as of the date of this release and ePlus undertakes no duty or obligation to update this information.

ePlus inc. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

   

 

 

September 30, 2019

 

March 31, 2019

ASSETS

 

 

   

 

 

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

 

$55,832

 

$79,816

Accounts receivable—trade, net

 

355,178

 

299,899

Accounts receivable—other, net

 

38,613

 

41,328

Inventories

 

57,198

 

50,493

Financing receivables—net, current

 

108,646

 

63,767

Deferred costs

 

19,225

 

17,301

Other current assets

 

6,867

 

7,499

Total current assets

 

641,559

 

560,103

 

   

 

Financing receivables and operating leases—net

 

79,512

 

59,032

Property, equipment and other assets

 

35,304

 

17,328

Goodwill

 

118,097

 

110,807

Other intangible assets—net

 

39,794

 

38,928

TOTAL ASSETS

 

$914,266

 

$786,198

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$107,336

 

$86,801

Accounts payable—floor plan

 

129,668

 

116,083

Salaries and commissions payable

 

23,679

 

21,286

Deferred revenue

 

50,284

 

47,251

Recourse notes payable—current

 

-

 

28

Non-recourse notes payable—current

 

77,608

 

38,117

Other current liabilities

 

32,924

 

19,285

Total current liabilities

 

421,499

 

328,851

 

   

 

Non-recourse notes payable—long term

 

8,404

 

10,502

Deferred tax liability—net

 

4,927

 

4,915

Other liabilities

 

29,147

 

17,677

TOTAL LIABILITIES

 

463,977

 

361,945

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

Preferred stock, $.01 per share par value; 2,000 shares authorized; none outstanding

 

-

 

-

Common stock, $.01 per share par value; 25,000 shares authorized; 13,513 outstanding at September 30, 2019 and 13,611 outstanding at March 31, 2019

 

144

 

143

Additional paid-in capital

 

141,297

 

137,243

Treasury stock, at cost, 884 shares at September 30, 2019 and 693 shares at March 31, 2019

 

(67,691)

 

(53,999)

Retained earnings

 

377,423

 

341,137

Accumulated other comprehensive income—foreign currency translation adjustment

 

(884)

 

(271)

Total Stockholders' Equity

 

450,289

 

424,253

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$914,266

 

$786,198

   

ePlus inc. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 

             

 

 

Three Months Ended September 30,

 

Six Months Ended September 30,

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

   

 

 

 

 

 

Product

 

$363,497

 

$309,475

 

$699,098

 

$632,292

Services

 

48,068

 

35,568

 

93,839

 

69,283

Total

 

411,565

 

345,043

 

792,937

 

701,575

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

 

 

 

 

Product

 

278,863

 

238,134

 

538,926

 

493,946

Services

 

29,671

 

21,409

 

58,341

 

41,426

Total

 

308,534

 

259,543

 

597,267

 

535,372

 

 

 

 

 

 

 

 

 

Gross profit

 

103,031

 

85,500

 

195,670

 

166,203

 

 

 

 

 

 

 

 

Selling, general, and administrative

 

70,523

 

57,705

 

136,310

 

114,671

Depreciation and amortization

 

3,557

 

2,741

 

7,020

 

5,531

Interest and financing costs

 

576

 

484

 

1,204

 

960

Operating expenses

 

74,656

 

60,930

 

144,534

 

121,162

   

 

 

 

 

 

Operating income

 

28,375

 

24,570

 

51,136

 

45,041

 

 

 

 

   

Other income (expense)

 

(40)

 

322

 

(85)

 

419

   

 

   

Earnings before taxes

 

28,335

 

24,892

 

51,051

 

45,460

   

 

   

 

Provision for income taxes

 

8,237

 

6,889

 

14,765

 

12,184

   

 

   

 

Net earnings

 

$20,098

 

$18,003

 

$36,286

 

$33,276

 

 

 

 

 

 

 

 

Net earnings per common share—basic

 

$1.51

 

$1.33

 

$2.72

 

$2.47

Net earnings per common share—diluted

 

$1.51

 

$1.33

 

$2.71

 

$2.45

 

 

 

 

 

 

 

 

Weighted average common shares outstanding—basic

 

13,312

 

13,494

 

13,334

 

13,464

Weighted average common shares outstanding—diluted

 

13,350

 

13,586

 

13,408

 

13,597

       

Technology Segment

                     
 

Three Months Ended September 30,

     

Six Months Ended September 30,

   
 

2019

 

2018

 

% Change

 

2019

 

2018

 

% Change

 

 

(in thousands)

 

 

 

(in thousands)

 

 

           

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

$349,650

 

$299,200

 

16.9%

 

$672,414

 

$612,349

 

9.8%

Services

 

48,068

 

35,568

 

35.1%

 

93,839

 

69,283

 

35.4%

Total

 

397,718

 

334,768

 

18.8%

 

766,253

 

681,632

 

12.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

276,475

 

236,404

 

17.0%

 

534,529

 

490,468

 

9.0%

Services

 

29,671

 

21,409

 

38.6%

 

58,341

 

41,426

 

40.8%

Total

 

306,146

 

257,813

 

18.7%

 

592,870

 

531,894

 

11.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

91,572

 

76,955

 

19.0%

 

173,383

 

149,738

 

15.8%

           

Selling, general, and administrative

 

67,189

 

55,138

 

21.9%

 

129,856

 

109,592

 

18.5%

Depreciation and amortization

 

3,529

 

2,740

 

28.8%

 

6,936

 

5,529

 

25.4%

Operating expenses

 

70,718

 

57,878

 

22.2%

 

136,792

 

115,121

 

18.8%

           

Operating income

 

$20,854

 

$19,077

 

9.3%

 

$36,591

 

$34,617

 

5.7%

Adjusted gross billings

 

$579,084

 

$485,856

 

19.2%

 

$1,127,447

 

$968,157

 

16.5%

Adjusted EBITDA

 

$27,789

 

$24,284

 

14.4%

 

$49,208

 

$44,625

 

10.3%

           

Technology Segment Net Sales by Customer End Market

   

 

 

Twelve Months Ended September 30,

   

 

 

2019

 

2018

 

% Change

 

 

 

 

 

 

 

Technology  

22%

 

23%

 

(1%)

SLED

 

17%

 

17%

 

-

Telecom, Media, & Entertainment

 

16%

 

13%

 

3%

Healthcare

 

15%

 

15%

 

-

Financial Services

 

14%

 

15%

 

(1%)

All others

 

16%

 

17%

 

(1%)

Total

 

100%

 

100%

 

 

     

Financing Segment

   
 

Three Months Ended September 30,

     

Six Months Ended September 30,

   
 

2019

 

2018

 

% Change

 

2019

 

2018

 

% Change

 

 

(in thousands)

 

 

 

(in thousands)

 

 

             

Net sales

 

$13,847

 

$10,275

 

34.8%

 

$26,684

 

$19,943

 

33.8%

Cost of sales

 

2,388

 

1,730

 

38.0%

 

4,397

 

3,478

 

26.4%

Gross profit

 

11,459

 

8,545

 

34.1%

 

22,287

 

16,465

 

35.4%

             

Selling, general, and administrative

 

3,334

 

2,567

 

29.9%

 

6,454

 

5,079

 

27.1%

Depreciation and amortization

 

28

 

1

 

2,700.0%

 

84

 

2

 

4,100.0%

Interest and financing costs

 

576

 

484

 

19.0%

 

1,204

 

960

 

25.4%

Operating expenses

 

3,938

 

3,052

 

29.0%

 

7,742

 

6,041

 

28.2%

             

Operating income

 

$7,521

 

$5,493

 

36.9%

 

$14,545

 

$10,424

 

39.5%

Adjusted EBITDA

 

$7,616

 

$5,596

 

36.1%

 

$14,764

 

$10,625

 

39.0%

           

ePlus inc. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP INFORMATION

We included reconciliations below for the following non-GAAP information: (i) Adjusted Gross Billings, (ii) Adjusted EBITDA, (iii) Segment Adjusted EBITDA, (iv) non-GAAP Net Earnings and (v) non-GAAP Net Earnings per Common Share - Diluted.

We define adjusted gross billings as our technology segment net sales calculated in accordance with GAAP, adjusted to exclude the costs incurred related to sales of third-party maintenance, software assurance and subscription/SaaS licenses, and services.

We define adjusted EBITDA as net earnings calculated in accordance with GAAP, adjusted for the following: interest expense, depreciation and amortization, share based compensation, acquisition and integration expense, provision for income taxes, and other income (expense). Segment adjusted EBITDA is defined as operating income calculated in accordance with GAAP, adjusted for interest expense, share based compensation, acquisition and integration expenses, and depreciation and amortization. We consider the interest on notes payable from our financing segment and depreciation expense presented within cost of sales, which includes depreciation on assets financed as operating leases, to be operating expenses.

Non-GAAP net earnings and non-GAAP net earnings per common share – diluted are based on net earnings calculated in accordance with GAAP, adjusted to exclude other income (expense), share based compensation, and acquisition related amortization expense, and the related tax effects.

Our use of non-GAAP information as analytical tools has limitations, and you should not consider them in isolation or as substitutes for analysis of our financial results as reported under GAAP. In addition, other companies, including companies in our industry, might calculate non-GAAP adjusted gross billings, adjusted EBITDA, non-GAAP net earnings and non-GAAP net earnings per common share or similarly titled measures differently, which may reduce their usefulness as comparative measures. 

 

 

Three Months Ended September 30,

 

Six Months Ended September 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

(in thousands)

 

 

 

 

 

   

 

Technology segment net sales

 

 $397,718

 

 $334,768

 

$766,253

 

$681,632

Costs incurred related to sales of third-party maintenance, software assurance and subscription / SaaS licenses, and services

 

181,366

 

151,088

 

361,194

 

286,525

Adjusted gross billings

 

$579,084

 

$485,856

 

$1,127,447

 

$968,157

     
     
 

Three Months Ended September 30,

 

Six Months Ended September 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

(in thousands)

Consolidated

 

 

 

 

 

 

 

 

Net earnings

 

$20,098

 

$18,003

 

$36,286

 

$33,276

Provision for income taxes

 

8,237

 

6,889

 

14,765

 

12,184

Depreciation and amortization [1]

 

3,557

 

2,741

 

7,020

 

5,531

Share based compensation

 

 2,135

 

1,868

 

4,077

 

3,561

Acquisition and integration expense

 

 1,338

 

701

 

1,739

 

1,117

Other (income) expense [2]

 

 40

 

(322)

 

85

 

(419)

Adjusted EBITDA

 

$35,405

 

$29,880

 

$63,972

 

$55,250

 

 

 

 

 

 

 

 

 

 

 

 

     

 

 

 

 

Three Months Ended September 30,

 

Six Months Ended September 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

(in thousands)

Technology Segment

 

 

 

 

 

 

 

 

Operating income

 

 $20,854

 

$19,077

 

$36,591

 

$34,617

Depreciation and amortization [1]

 

 3,529

 

2,740

 

6,936

 

5,529

Share based compensation

 

 2,068

 

1,766

 

3,942

 

3,362

Acquisition and integration expense

 

 1,338

 

701

 

1,739

 

1,117

Adjusted EBITDA

 

$27,789

 

$24,284

 

$49,208

 

$44,625

 

 

 

 

 

 

 

 

 

Financing Segment

 

 

 

 

 

 

 

 

Operating income

 

 $7,521

 

$5,493

 

$14,545

 

$10,424

Depreciation and amortization [1]

 

 28

 

1

 

84

 

2

Share based compensation

 

 67

 

102

 

135

 

199

Adjusted EBITDA

 

$7,616

 

$5,596

 

$14,764

 

$10,625

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Six Months Ended September 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

(in thousands)

GAAP: Earnings before taxes

 

$28,335

 

$24,892

 

$51,051

 

$45,460

Share based compensation

 

2,135

 

1,868

 

4,077

 

3,561

Acquisition and integration expense

 

1,338

 

701

 

1,739

 

1,117

Acquisition related amortization expense [3]

 

2,345

 

1,719

 

4,532

 

3,483

Other (income) expense [2]

 

40

 

(322)

 

85

 

(419)

Non-GAAP: Earnings before taxes

 

34,193

 

28,858

 

61,484

 

53,202

 

 

 

 

 

 

 

 

 

GAAP: Provision for income taxes

 

8,237

 

6,889

 

14,765

 

12,184

Share based compensation

 

624

 

525

 

1,183

 

1,008

Acquisition and integration expense

 

391

 

197

 

506

 

316

Acquisition related amortization expense [3]

 

663

 

455

 

1,270

 

929

Other (income) expense [2]

 

12

 

(90)

 

25

 

(118)

Tax benefit on restricted stock

 

38

 

103

 

48

 

672

Non-GAAP: Provision for income taxes

 

9,965

 

8,079

 

17,797

 

14,991

 

 

 

 

 

 

 

 

 

Non-GAAP: Net earnings

 

$24,228

 

$20,779

 

$43,687

 

$38,211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Six Months Ended September 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

 

GAAP: Net earnings per common share – diluted

 

$1.51

 

$1.33

 

$2.71

 

$2.45

 

 

 

 

 

 

 

 

 

Share based compensation

 

0.11

 

0.10

 

0.22

 

0.19

Acquisition and integration expense

 

0.07

 

0.04

 

0.09

 

0.06

Acquisition related amortization expense [3]

 

0.12

 

0.09

 

0.24

 

0.19

Other (income) expense [2]

 

-

 

(0.02)

 

-

 

(0.03)

Tax benefit on restricted stock

 

-

 

(0.01)

 

-

 

(0.05)

Total non-GAAP adjustments – net of tax

 

$0.30

 

$0.20

 

 $0.55

 

$0.36

 

 

 

 

 

 

 

 

 

Non-GAAP: Net earnings per common share – diluted

 

$1.81

 

$1.53

 

$3.26

 

$2.81

[1] Amount consists of depreciation and amortization for assets used internally.

[2] Interest income and foreign currency transaction gains and losses.

[3] Amount consists of amortization of intangible assets from acquired businesses.