EPLUS INC - 10-Q filing on 2016-11-04

SEGMENT REPORTING

6 Months Ended

Sep. 30, 2016

14.	SEGMENT REPORTING

Our operations are conducted through two segments. Our technology segment includes sales of information technology products, third-party software, third-party maintenance, advanced professional and managed services and our proprietary software to commercial enterprises, state and local governments, and government contractors. Our financing segment consists of the financing of IT equipment, software and related services to commercial enterprises, state and local governments, and government contractors. We measure the performance of the segments based on operating income. Our reportable segment information was as follows (in thousands):

	Three Months Ended
	September 30, 2016						September 30, 2015
	Technology		Financing		Total		Technology		Financing		Total

Sales of product and services	$	361,227	$	-	$	361,227	$	324,259	$	-	$	324,259
Financing revenue		-		8,722		8,722		-		10,279		10,279
Fee and other income		1,488		25		1,513		1,721		27		1,748
Net sales		362,715		8,747		371,462		325,980		10,306		336,286

Cost of sales, product and services		288,204		-		288,204		261,208		-		261,208
Direct lease costs		-		1,325		1,325		-		3,157		3,157
Cost of sales		288,204		1,325		289,529		261,208		3,157		264,365

Professional and other fees		1,425		310		1,735		1,305		208		1,513
Salaries and benefits		40,182		2,114		42,296		33,476		2,264		35,740
General and administrative expenses		6,695		881		7,576		6,126		259		6,385
Depreciation and amortization		1,721		2		1,723		1,196		4		1,200
Interest and financing costs		-		400		400		22		400		422
Operating expenses		50,023		3,707		53,730		42,125		3,135		45,260

Operating income	$	24,488	$	3,715	$	28,203	$	22,647	$	4,014	$	26,661

Selected Financial Data - Statement of Cash Flow
Depreciation and amortization	$	1,765	$	1,292	$	3,057	$	1,229	$	3,039	$	4,268
Purchases of property, equipment and operating lease equipment	$	912	$	1,367	$	2,279	$	576	$	8,118	$	8,694

Selected Financial Data - Balance Sheet
Total assets	$	484,178	$	196,716	$	680,894	$	379,378	$	211,109	$	590,487

	Six Months Ended
	September 30, 2016						September 30, 2015
Statement of Operations	Technology		Financing		Total		Technology		Financing		Total

Sales of product and services	$	651,408	$	-	$	651,408	$	583,955	$	-	$	583,955
Financing revenue		-		15,709		15,709		-		18,625		18,625
Fee and other income		2,764		84		2,848		3,532		40		3,572
Net sales		654,172		15,793		669,965		587,487		18,665		606,152

Cost of sales, product and services		518,051		-		518,051		468,926		-		468,926
Direct lease costs		-		2,317		2,317		-		6,175		6,175
Cost of sales		518,051		2,317		520,368		468,926		6,175		475,101

Professional and other fees		2,922		599		3,521		2,567		464		3,031
Salaries and benefits		77,667		4,427		82,094		66,428		4,526		70,954
General and administrative expenses		12,926		1,120		14,046		11,451		505		11,956
Depreciation and amortization		3,492		6		3,498		2,400		8		2,408
Interest and financing costs		-		749		749		41		934		975
Operating expenses		97,007		6,901		103,908		82,887		6,437		89,324

Operating income	$	39,114	$	6,575	$	45,689	$	35,674	$	6,053	$	41,727

Selected Financial Data - Statement of Cash Flow
Depreciation and amortization	$	3,553	$	2,279	$	5,832	$	2,466	$	6,037	$	8,503
Purchases of property, equipment and operating lease equipment	$	1,564	$	1,605	$	3,169	$	1,194	$	14,424	$	15,618

Selected Financial Data - Balance Sheet
Total assets	$	484,178	$	196,716	$	680,894	$	379,378	$	211,109	$	590,487

The total of the reportable segments' measure of profit or loss excludes other income of $380 thousand for the three and six months ended September 30, 2016, which is included in the consolidated earnings before tax but is not allocated to the segments.