8-K

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 5, 2020

ePlus inc.

EPLUS INC

(Exact name of registrant as specified in its charter)

Delaware	001-34167	54-1817218
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

13595 Dulles Technology Drive, Herndon, Virginia 20171-3413

(Address, including zip code, of principal executive offices)

(703) 984-8400

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	PLUS	NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company      ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     ☐

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Item 2.02 Results of Operations and Financial Condition

On February 5, 2020, ePlus inc. announced by press release its results of operations for its three and nine months ended December 31, 2019. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (the "Exchange Act"), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits

(d) The following exhibits are filed as part of this report:

Exhibit No.	Description
99.1	Press release dated February 5, 2020, issued by ePlus inc.

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

ePlus inc.
By: /s/ Elaine D. Marion
Elaine D. Marion
Chief Financial Officer

Date: February 10, 2020

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EXHIBIT 99.1

ePlus Reports Third Quarter and First Nine Months Financial Results

--Double-digit Growth Across Key Metrics--

Third Quarter Fiscal Year 2020

•	Net sales increased 24.1% to $429.0 million; technology segment net sales increased 22.7% to $410.6 million; service revenues increased 43.2% to $50.4<br> million; financing segment net sales increased 67.7% to $18.4 million.
•	Adjusted gross billings increased 22.5% to $586.3 million.
•	Consolidated gross profit increased 25.1% to $103.7 million.
•	Consolidated gross margin was 24.2%, an increase of 20 basis points.
•	Net earnings increased 31.5% to $19.6 million.
•	Adjusted EBITDA increased 24.7% to $31.9 million.
•	Diluted earnings per share increased 32.7% to $1.46. Non-GAAP diluted earnings per share increased 27.1% to $1.64.

First Nine Months Fiscal Year 2020

•	Net sales increased 16.7% to $1,222 million; technology segment net sales increased 15.8% to $1,177 million; service revenues increased 38.0% to $144.3<br> million; financing segment net sales increased 45.8% to $45.0 million.
•	Adjusted gross billings increased 18.5% to $1,714 million.
•	Consolidated gross profit increased 20.2% to $299.4 million.
•	Consolidated gross margin was 24.5%, an increase of 70 basis points.
•	Net earnings increased 16.0% to $55.8 million.
•	Adjusted EBITDA increased 18.6% to $95.8 million.
•	Diluted earnings per share increased 17.5% to $4.16. Non-GAAP diluted earnings per share increased 19.3% to $4.89.

HERNDON, VA – February 5, 2020 – ePlus inc. (NASDAQ:PLUS), a leading provider of technology and financing solutions, today announced financial results for the three and nine months ended December 31, 2019.

Management Comment

“ePlus achieved strong double-digit growth across key financial metrics in both the third quarter and first nine months of fiscal 2020, demonstrating the competitive advantages of our portfolio of technology products and services, complemented by our financing capabilities. We continued to gain market share in the third quarter, underscored by 20.3% growth in technology product sales and 43.2% growth in technology services revenue, which combined with strong performance from our financing segment, drove a 31.5% increase in net earnings,” commented Mark Marron, CEO and President of ePlus.

“Growth in gross profit and earnings per share outpaced revenue growth in the third quarter, and consolidated gross margin expanded by 20 basis points to 24.2%.  Our continuing investment in customer-facing professionals supports growth in the high demand areas of cloud, security and digital infrastructure.”

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Third Quarter Fiscal 2020 Results

For the third quarter ended December 31, 2019 as compared to the third quarter of the prior fiscal year ended December 31, 2018:

Consolidated net sales increased 24.1% to $429.0 million, from $345.7 million.

Technology segment net sales increased 22.7% to $410.6 million, from $334.7 million primarily from an increase in sales to customers in the telecom, media and entertainment industry as well as technology, healthcare, and state and local government and educational institutions. Service revenues increased 43.2% to $50.4 million, from $35.2 million due to increases across all our services offerings including professional and managed services, and staff augmentation.

Adjusted gross billings increased 22.5% to $586.3 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 67.7% to $18.4 million, from $11.0 million, primarily due to an increase in transactional gains.

Consolidated gross profit increased 25.1% to $103.7 million, from $82.9 million. Consolidated gross margin increased to 24.2% from 24.0% last year, due to higher gross profit in our financing segment.

Operating expenses increased 23.1% to $77.4 million, from $62.9 million, primarily due to an increase in salaries and variable compensation and additional costs associated with the acquisitions and operations of SLAIT Consulting, LLC and ABS Technology.  Our headcount increased 337 employees primarily from the acquisitions.

Consolidated operating income increased 31.2% to $26.3 million.

Our effective tax rate for the current quarter was 28.3%, consistent with the prior year quarter.

Net earnings increased 31.5% to $19.6 million.

Adjusted EBITDA increased 24.7% to $31.9 million, from $25.6 million.

Diluted earnings per share was $1.46, compared with $1.10 in the prior year quarter. Non-GAAP diluted earnings per share was $1.64, compared with $1.29 last year.

First Nine Months Fiscal 2020 Results

For the nine months ended December 31, 2019 as compared to the nine months of the prior fiscal year ended December 31, 2018:

Consolidated net sales increased 16.7% to $1,221.9 million, from $1,047.2 million.

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Technology segment net sales increased 15.8% to $1,176.9 million, from $1,016.3 million. Service revenues increased 38.0% to $144.3 million, from $104.5 million.

Adjusted gross billings increased 18.5% to $1,713.8 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 45.8% to $45.0 million, from $30.9 million, primarily due to an increase in transactional gains from several large government related transactions.

Consolidated gross profit increased 20.2% to $299.4 million, from $249.1 million. Consolidated gross margin improved 70 basis points to 24.5%, compared with 23.8% last year, due to higher service revenues and higher transaction gains from the financing segment.

Operating expenses increased 20.6% to $222.0 million, from $184.1 million, primarily due to an increase in salaries and variable compensation and additional costs associated with the acquisitions and operations of SLAIT Consulting, LLC and ABS Technology.

Consolidated operating income increased 19.0% to $77.4 million.

Our effective tax rate for the current period was 28.7%, compared with 27.3% in the prior year.  The increase in the rate was primarily due to a decrease in the tax benefit from the vesting of restricted stock.

Net earnings increased 16.0% to $55.8 million.

Adjusted EBITDA increased 18.6% to $95.8 million, from $80.8 million.

Diluted earnings per share was $4.16, compared with $3.54 in the prior year period. Non-GAAP diluted earnings per share was $4.89, compared with $4.10 last year.

Balance Sheet Highlights

As of December 31, 2019, ePlus had cash and cash equivalents of $59.6 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, acquisition funding, and share repurchases totaling $13.7 million.  Total stockholders' equity was $472.5 million, compared with $424.3 million as of March 31, 2019. Total shares outstanding were 13.5 million and 13.6 million on December 31, 2019 and March 31, 2019, respectively.

Summary and Outlook

“Year-to-date results set the stage for fiscal 2020 to be a year of significant growth for ePlus, driven by our ability to capture demand from our growing base of mid-market and enterprise customers for complex solutions that optimize and protect their IT initiatives.  In addition to our organic growth, we have successfully integrated the August, 2019 ABS Technology acquisition, and we continue to evaluate additional acquisition opportunities that would expand our technology capabilities and our geographic reach,” Mr. Marron concluded.

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Conference Call Information

ePlus will hold a conference call and webcast at 4:30 p.m. ET on February 5, 2020:

Date:	February 5, 2020
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:	9387537 (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 February 12, 2020.

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 1,600 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.  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.

Contact:

Kleyton L. Parkhurst, SVP

ePlus inc.

kparkhurst@eplus.com

703-984-8150

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ePlus inc. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

			March 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	59,555		$	79,816
Accounts receivable—trade, net	413,741			299,899
Accounts receivable—other, net	37,187			41,328
Inventories	61,065			50,493
Financing receivables—net, current	89,229			63,767
Deferred costs	20,421			17,301
Other current assets	8,809			7,499
Total current assets	690,007			560,103
Financing receivables and operating leases—net	73,506			59,032
Property, equipment and other assets	34,000			17,328
Goodwill	118,225			110,807
Other intangible assets—net	36,870			38,928
TOTAL ASSETS	952,608		$	786,198
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Current liabilities:
Accounts payable	126,154		$	86,801
Accounts payable—floor plan	144,483			116,083
Salaries and commissions payable	27,476			21,286
Deferred revenue	55,128			47,251
Recourse notes payable—current	2,239			28
Non-recourse notes payable—current	59,015			38,117
Other current liabilities	24,995			19,285
Total current liabilities	439,490			328,851
Non-recourse notes payable—long term	7,120			10,502
Deferred tax liability—net	4,924			4,915
Other liabilities	28,588			17,677
TOTAL LIABILITIES	480,122			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 <br>         authorized; 13,513<br> outstanding at December 31, 2019 and <br>         13,611 outstanding at March 31, 2019	144			143
Additional paid-in capital	143,262			137,243
Treasury stock, at cost, 884 shares at December 31, 2019 and<br>         693 shares at March 31, 2019	(67,691	)		(53,999	)
Retained earnings	396,973			341,137
Accumulated other comprehensive income—foreign currency<br>         translation adjustment	(202	)		(271	)
Total Stockholders' Equity	472,486			424,253
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	952,608		$	786,198

All values are in US Dollars.

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ePlus inc. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

	Three Months Ended December 31,				Nine Months Ended December 31,
	2019		2018		2019		2018
Net sales
Product	$	378,569	$	310,443	$	1,077,667	$	942,735
Services		50,422		35,221		144,261		104,504
Total		428,991		345,664		1,221,928		1,047,239
Cost of sales
Product		293,209		241,856		832,135		735,802
Services		32,086		20,895		90,427		62,321
Total		325,295		262,751		922,562		798,123
Gross profit		103,696		82,913		299,366		249,116
Selling, general, and administrative		73,090		59,728		209,400		174,399
Depreciation and amortization		3,647		2,719		10,667		8,250
Interest and financing costs		694		443		1,898		1,403
Operating expenses		77,431		62,890		221,965		184,052
Operating income		26,265		20,023		77,401		65,064
Other income (expense)		997		721		912		1,140
Earnings before taxes		27,262		20,744		78,313		66,204
Provision for income taxes		7,712		5,880		22,477		18,064
Net earnings	$	19,550	$	14,864	$	55,836	$	48,140
Net earnings per common share—basic	$	1.47	$	1.10	$	4.19	$	3.57
Net earnings per common share—diluted	$	1.46	$	1.10	$	4.16	$	3.54
Weighted average common shares outstanding—basic		13,320		13,471		13,329		13,467
Weighted average common shares outstanding—diluted		13,378		13,544		13,410		13,592

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Technology Segment

	Three Months Ended December 31,							Nine Months Ended December 31,
	2019		2018		% Change			2019		2018		% Change
	(in thousands)							(in thousands)
Net sales
Product	$	360,206	$	299,490		20.3	%	$	1,032,620	$	911,839		13.2	%
Services		50,422		35,221		43.2	%		144,261		104,504		38.0	%
Total		410,628		334,711		22.7	%		1,176,881		1,016,343		15.8	%
Cost of sales
Product		290,980		239,843		21.3	%		825,509		730,311		13.0	%
Services		32,086		20,895		53.6	%		90,427		62,321		45.1	%
Total		323,066		260,738		23.9	%		915,936		792,632		15.6	%
Gross profit		87,562		73,973		18.4	%		260,945		223,711		16.6	%
Selling, general, and administrative		67,759		56,607		19.7	%		197,615		166,199		18.9	%
Depreciation and amortization		3,619		2,714		33.3	%		10,555		8,243		28.0	%
Operating expenses		71,378		59,321		20.3	%		208,170		174,442		19.3	%
Operating income	$	16,184	$	14,652		10.5	%	$	52,775	$	49,269		7.1	%
Adjusted gross billings	$	586,308	$	478,447		22.5	%	$	1,713,755	$	1,446,603		18.5	%
Adjusted EBITDA	$	21,687	$	20,074		8.0	%	$	70,895	$	64,699		9.6	%

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Technology Segment Net Sales by Customer End Market

	Twelve Months Ended December 31,
	2019	2018	% Change
Technology	22%	22%	-
SLED	17%	17%	-
Telecom, Media, & Entertainment	17%	14%	3%
Healthcare	15%	14%	1%
​Financial Services	14%	15%	(1%)
​All others	15%	18%	(3%)
Total	100%	100%

Financing Segment

	Three Months Ended December 31,							Nine Months Ended December 31,
	2019		2018		% Change			2019		2018		% Change
	(in thousands)							(in thousands)
Net sales	$	18,363	$	10,953		67.7	%	$	45,047	$	30,896		45.8	%
Cost of sales		2,229		2,013		10.7	%		6,626		5,491		20.7	%
Gross profit		16,134		8,940		80.5	%		38,421		25,405		51.2	%
Selling, general, and administrative		5,331		3,121		70.8	%		11,785		8,200		43.7	%
Depreciation and amortization		28		5		460.0	%		112		7		1,500.0	%
Interest and financing costs		694		443		56.7	%		1,898		1,403		35.3	%
Operating expenses		6,053		3,569		69.6	%		13,795		9,610		43.5	%
Operating income	$	10,081	$	5,371		87.7	%	$	24,626	$	15,795		55.9	%
Adjusted EBITDA	$	10,169	$	5,480		85.6	%	$	24,933	$	16,105		54.8	%

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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.

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	Three Months Ended December 31,				Nine Months Ended December 31,
	2019		2018		2019		2018
	(in thousands)
Technology segment net sales	$	410,628	$	334,711	$	1,176,881	$	1,016,343
Costs incurred related to sales of third-party maintenance, software assurance and subscription / SaaS licenses, and services		175,680		143,736		536,874		430,260
Adjusted gross billings	$	586,308	$	478,447	$	1,713,755	$	1,446,603
	Three Months Ended December 31,						Nine Months Ended December 31,
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	2019			2018			2019			2018
	(in thousands)
Consolidated
Net earnings	$	19,550		$	14,864			55,836		$	48,140
Provision for income taxes		7,712			5,880			22,477			18,064
Depreciation and amortization [1]		3,647			2,719			10,667			8,250
Share based compensation		1,944			1,857			6,021			5,418
Acquisition and integration expense		-			955			1,739			2,072
Other (income) expense [2]		(997	)		(721	)		(912	)		(1,140	)
Adjusted EBITDA	$	31,856		$	25,554		$	95,828		$	80,804
	Three Months Ended December 31,				Nine Months Ended December 31,
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	2019		2018		2019		2018
	(in thousands)
Technology Segment
Operating income	$	16,184	$	14,652	$	52,775	$	49,269
Depreciation and amortization [1]		3,619		2,714		10,555		8,243
Share based compensation		1,884		1,753		5,826		5,115
Acquisition and integration expense		-		955		1,739		2,072
Adjusted EBITDA	$	21,687	$	20,074	$	70,895	$	64,699
Financing Segment
Operating income	$	10,081	$	5,371	$	24,626	$	15,795
Depreciation and amortization [1]		28		5		112		7
Share based compensation		60		104		195		303
Adjusted EBITDA	$	10,169	$	5,480	$	24,933	$	16,105

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	Three Months Ended December 31,						Nine Months Ended December 31,
	2019			2018			2019			2018
	(in thousands)
GAAP: Earnings before taxes	$	27,262		$	20,744		$	78,313		$	66,204
Share based compensation		1,944			1,857			6,021			5,418
Acquisition and integration expense		-			955			1,739			2,072
Acquisition related amortization expense [3]		2,421			1,552			6,953			5,035
Other (income) expense [2]		(997	)		(721	)		(912	)		(1,140	)
Non-GAAP: Earnings before taxes		30,630			24,387			92,114			77,589
GAAP: Provision for income taxes		7,712			5,880			22,477			18,064
Share based compensation		553			526			1,736			1,534
Acquisition and integration expense		-			270			506			586
Acquisition related amortization expense [3]		668			414			1,938			1,343
Other (income) expense [2]		(283	)		(204	)		(258	)		(322	)
Tax benefit on restricted stock		39			-			87			672
Non-GAAP: Provision for income taxes		8,689			6,886			26,486			21,877
Non-GAAP: Net earnings	$	21,941		$	17,501		$	65,628		$	55,712
	Three Months Ended December 31,						Nine Months Ended December 31,
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	2019			2018			2019			2018
GAAP: Net earnings per common share – diluted	$	1.46		$	1.10		$	4.16		$	3.54
Share based compensation		0.10			0.10			0.32			0.30
Acquisition and integration expense		-			0.05			0.09			0.10
Acquisition related amortization expense [3]		0.14			0.08			0.38			0.27
Other (income) expense [2]		(0.05	)		(0.04	)		(0.05	)		(0.07	)
Tax benefit on restricted stock		(0.01	)		-			(0.01	)		(0.04	)
Total non-GAAP adjustments – net of tax	$	0.18		$	0.19		$	0.73		$	0.56
Non-GAAP: Net earnings per common share – diluted	$	1.64		$	1.29		$	4.89		$	4.10

[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.

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