8-K
EPLUS INC (PLUS)
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): August 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. ☐
Item 2.02 Results of Operations and Financial Condition
On August 5, 2020, ePlus inc. announced by press release its results of operations for its first quarter ended June 30, 2020. 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 August 5, 2020, issued by ePlus inc. |
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: August 11, 2020
EXHIBIT 99.1
ePlus Reports First Quarter Financial Results
--Favorable Business Mix Drove Strong Profitability Growth--
Quarterly Highlights:
| • | Net sales decreased 6.9% to $355.0 million; technology segment net sales decreased 7.4% to $341.2 million; service revenues increased 4.4% to $47.8<br> million; financing segment net sales increased 7.6% to $13.8 million. |
|---|---|
| • | Adjusted gross billings decreased 0.4% to $546.4 million. |
| • | Consolidated gross profit increased 6.4% to $98.6 million. |
| • | Consolidated gross margin was 27.8%, an increase of 350 basis points. |
| • | Net earnings increased 7.2% to $17.4 million. |
| • | Adjusted EBITDA increased 7.5% to $30.7 million. |
| • | Diluted earnings per share increased 8.3% to $1.30. Non-GAAP diluted earnings per share increased 4.9% to $1.51. |
HERNDON, VA – August 5, 2020 – ePlus inc. (NASDAQ: PLUS), a leading provider of technology and financing solutions, today announced financial results for the three months ended June 30, 2020.
Management Comment
“Our business performed well across key profitability metrics in the first quarter of fiscal 2020 as we worked closely with customers to support their evolving IT product and service needs during these challenging times. Adjusted gross billings held steady, and gross profit increased 6.4% as consolidated gross margin increased to 27.8%. Diluted earnings per share grew 8.3%. Our performance reflected a favorable mix as higher margin services revenue grew 4.4%, in-line with our strategy of increasing managed and recurring services which mitigated the impact of lower product sales,” said Mark Marron, president and chief executive officer.
“Our focus on critical IT solutions most relevant to customers in this difficult pandemic environment has enabled ePlus to report strong earnings comparisons. During the quarter, we saw a marked increase in third-party maintenance, software assurance, and subscriptions, as customers invested to support remote workforce initiatives.”
First Quarter Fiscal 2021 Results
For the first quarter ended June 30, 2020 as compared to the first quarter of the prior fiscal year ended June 30, 2019:
Consolidated net sales decreased 6.9% to $355.0 million, from $381.4 million.
Technology segment net sales decreased 7.4% to $341.2 million, from $368.5 million primarily due to a larger portion of our sales that were recognized on a net basis. Service revenues increased 4.4% to $47.8 million, from $45.8 million primarily due to an increase in managed services. Adjusted gross billings was $546.4 million, a slight decrease of 0.4% from $548.4 million.
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Financing segment net sales increased 7.6% to $13.8 million, from $12.8 million, primarily due to an increase in post-contract earnings.
Consolidated gross profit increased 6.4% to $98.6 million, from $92.6 million. Consolidated gross margin increased to 27.8% from 24.3% last year, due to higher product margins.
Operating expenses increased 5.3% to $73.6 million, from $69.9 million, primarily due to an increase in variable compensation and replacement costs for turnover. Our headcount at the end of the quarter was 1,536, compared with 1,538 a year ago.
Consolidated operating income increased 9.8% to $25.0 million.
Our effective tax rate for the current quarter was 30.8%, higher than the prior year quarter of 28.7%, due to an adjustment to the federal benefit from state taxes.
Net earnings increased 7.2% to $17.4 million.
Adjusted EBITDA increased 7.5% to $30.7 million, from $28.6 million.
Diluted earnings per share was $1.30, compared with $1.20 in the prior year quarter. Non-GAAP diluted earnings per share was $1.51, compared with $1.44 last year.
Balance Sheet Highlights
As of June 30, 2020, ePlus had cash and cash equivalents of $144.4 million, compared with $86.2 million as of March 31, 2020. The increase is primarily the result of a decrease in working capital in the technology segment and an increase in non-recourse debt. Inventory, which represents equipment ordered by customers but not yet delivered, increased 85.7% due to ongoing projects and some delivery delays due to temporary closures at our customer sites related to COVID-19. Total shareholder’s equity was $502.7 million, compared with $486.1 million as of March 31, 2020. Total shares outstanding were 13.6 million and 13.5 million on June 30, 2020 and March 31, 2020, respectively.
Summary and Outlook
“ePlus is effectively managing through difficult business conditions with a strong balance sheet, a favorable mix of products and services and a dedicated team of IT professionals, who have proven their commitment to customer service.
“Our focus on the high demand areas of Cloud, Security and Digital Infrastructure are all the more relevant in today’s business environment. Our diversified customer base, which we believe represents minimal exposure to those industries hardest hit by the economic downturn, depends on ePlus to continue to deliver critical IT solutions that enable them to effectively navigate the current marketplace challenges.
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“We appreciate the excellent execution demonstrated by the ePlus team during these unprecedented times, and as a company, we have taken precautions to protect the health and safety of our employees. Our strong financial position provides the resources to continue to make strategic investments opportunistically. In summary, we believe we are well positioned to manage through near-term pandemic-related disruptions to our business and to achieve growth over the long term,” Mr. Marron concluded.
Recent Corporate Developments/Recognitions
| • | In the month of June: | |
|---|---|---|
| o | ePlus announced that CRN® a brand of The Channel Company, has named ePlus to its 2020 Solution Provider 500 list for the 10th consecutive year. | |
| o | ePlus announced that it has been recognized with four new awards, including three Partner of the Year designations, from its<br> partners Equinix, Juniper Networks, and NetApp. | |
| • | In the month of May: | |
| --- | --- | --- |
| o | ePlus announced that its board of directors authorized the Company to repurchase up to 500,000 shares of ePlus’ outstanding common<br> stock over a 12-month period which commenced on May 28, 2020. | |
| o | ePlus announced that it has launched ePlus Public Cloud Managed Services, a portfolio of offerings that enables customers to deliver<br> services cost-effectively and securely in public cloud platforms, including AWS and Azure. |
Conference Call Information
ePlus will hold a conference call and webcast at 4:30 p.m. ET on August 5, 2020:
| Date: | August 5, 2020 |
|---|---|
| Time: | 4:30 p.m. ET |
| Live Call: | (833) 714-0957, domestic; (778) 560-2893, international |
| Replay: | (800) 585-8367, domestic; (416) 621-4642, international |
| Passcode: | 6879148 (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 August 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 lifecycle services expertise across key areas including security, cloud, data center, collaboration, networking, and emerging technologies, 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, LinkedIn, Twitter and Instagram.
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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, the duration and impact of the COVID-19 pandemic, which could materially adversely affect our financial condition and results of operations and has resulted worldwide in governmental authorities imposing numerous unprecedented measures to try to contain the virus that has impacted and may further impact our workforce and operations, the operations of our customers, and those of our respective vendors, suppliers, and partners; 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 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, 2020 | |||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | 144,382 | $ | 86,231 | ||
| Accounts receivable—trade, net | 393,044 | 374,998 | |||
| Accounts receivable—other, net | 33,076 | 36,570 | |||
| Inventories | 93,323 | 50,268 | |||
| Financing receivables—net, current | 116,120 | 70,169 | |||
| Deferred costs | 20,785 | 22,306 | |||
| Other current assets | 6,102 | 9,256 | |||
| Total current assets | 806,832 | 649,798 | |||
| Financing receivables and operating leases—net | 68,862 | 74,158 | |||
| Property, equipment and other assets | 33,025 | 32,596 | |||
| Goodwill | 118,097 | 118,097 | |||
| Other intangible assets—net | 32,046 | 34,464 | |||
| TOTAL ASSETS | 1,058,862 | $ | 909,113 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| LIABILITIES | |||||
| Current liabilities: | |||||
| Accounts payable | 136,507 | $ | 82,919 | ||
| Accounts payable—floor plan | 175,701 | 127,416 | |||
| Salaries and commissions payable | 26,460 | 30,952 | |||
| Deferred revenue | 57,271 | 55,480 | |||
| Recourse notes payable—current | 37,271 | 37,256 | |||
| Non-recourse notes payable—current | 55,667 | 29,630 | |||
| Other current liabilities | 30,683 | 22,986 | |||
| Total current liabilities | 519,560 | 386,639 | |||
| Non-recourse notes payable—long term | 5,500 | 5,872 | |||
| Deferred tax liability—net | 2,731 | 2,730 | |||
| Other liabilities | 28,346 | 27,727 | |||
| TOTAL LIABILITIES | 556,137 | 422,968 | |||
| COMMITMENTS AND CONTINGENCIES | |||||
| STOCKHOLDERS' EQUITY | |||||
| Preferred stock, .01 per share par value; 2,000 shares authorized; <br> none outstanding | - | - | |||
| Common stock, .01 per share par value; 25,000 shares <br> authorized; 13,553 outstanding at June 30, 2020 and <br> 13,500<br> outstanding at March 31, 2020 | 145 | 144 | |||
| Additional paid-in capital | 147,082 | 145,197 | |||
| Treasury stock, at cost, 934 shares at June 30, 2020 and<br> 896 shares at March 31, 2020 | (71,127 | ) | (68,424 | ) | |
| Retained earnings | 427,579 | 410,219 | |||
| Accumulated other comprehensive income—foreign currency<br> translation adjustment | (954 | ) | (991 | ) | |
| Total Stockholders' Equity | 502,725 | 486,145 | |||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,058,862 | $ | 909,113 |
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 June 30, | |||||
| 2020 | 2019 | ||||
| Net sales | |||||
| Product | $ | 307,240 | $ | 335,601 | |
| Services | 47,791 | 45,771 | |||
| Total | 355,031 | 381,372 | |||
| Cost of sales | |||||
| Product | 226,634 | 260,063 | |||
| Services | 29,840 | 28,670 | |||
| Total | 256,474 | 288,733 | |||
| Gross profit | 98,557 | 92,639 | |||
| Selling, general, and administrative | 69,467 | 65,787 | |||
| Depreciation and amortization | 3,516 | 3,463 | |||
| Interest and financing costs | 577 | 628 | |||
| Operating expenses | 73,560 | 69,878 | |||
| Operating income | 24,997 | 22,761 | |||
| Other income (expense) | 98 | (45 | ) | ||
| Earnings before taxes | 25,095 | 22,716 | |||
| Provision for income taxes | 7,735 | 6,528 | |||
| Net earnings | $ | 17,360 | $ | 16,188 | |
| Net earnings per common share—basic | $ | 1.30 | $ | 1.21 | |
| Net earnings per common share—diluted | $ | 1.30 | $ | 1.20 | |
| Weighted average common shares outstanding—basic | 13,322 | 13,356 | |||
| Weighted average common shares outstanding—diluted | 13,388 | 13,457 |
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| Technology Segment | |||||||
|---|---|---|---|---|---|---|---|
| Three Months Ended June 30, | |||||||
| 2020 | 2019 | % Change | |||||
| (in thousands) | |||||||
| Net sales | |||||||
| Product | $ | 293,433 | $ | 322,764 | (9.1 | %) | |
| Services | 47,791 | 45,771 | 4.4 | % | |||
| Total | 341,224 | 368,535 | (7.4 | %) | |||
| Cost of sales | |||||||
| Product | 224,543 | 258,054 | (13.0 | %) | |||
| Services | 29,840 | 28,670 | 4.1 | % | |||
| Total | 254,383 | 286,724 | (11.3 | %) | |||
| Gross profit | 86,841 | 81,811 | 6.1 | % | |||
| Selling, general, and administrative | 65,556 | 62,667 | 4.6 | % | |||
| Depreciation and amortization | 3,488 | 3,407 | 2.4 | % | |||
| Interest and financing costs | 265 | - | nm | ||||
| Operating expenses | 69,309 | 66,074 | 4.9 | % | |||
| Operating income | $ | 17,532 | $ | 15,737 | 11.4 | % | |
| Adjusted gross billings | $ | 546,394 | $ | 548,363 | (0.4 | %) | |
| Adjusted EBITDA | $ | 23,161 | $ | 21,419 | 8.1 | % | |
| Technology Segment Net Sales by Customer End Market | |||||||
| --- | --- | --- | --- | ||||
| Twelve Months Ended June 30, | |||||||
| 2020 | 2019 | % Change | |||||
| Technology | 21% | 21% | - | ||||
| Telecom, Media, & Entertainment | 19% | 14% | 5% | ||||
| SLED | 16% | 17% | (1%) | ||||
| Healthcare | 15% | 15% | - | ||||
| Financial Services | 13% | 15% | (2%) | ||||
| All Others | 16% | 18% | (2%) | ||||
| Total | 100% | 100% |
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| Financing Segment | |||||||
|---|---|---|---|---|---|---|---|
| Three Months Ended June 30, | |||||||
| 2020 | 2019 | % Change | |||||
| (in thousands) | |||||||
| Net sales | $ | 13,807 | $ | 12,837 | 7.6 | % | |
| Cost of sales | 2,091 | 2,009 | 4.1 | % | |||
| Gross profit | 11,716 | 10,828 | 8.2 | % | |||
| Selling, general, and administrative | 3,911 | 3,120 | 25.4 | % | |||
| Depreciation and amortization | 28 | 56 | (50.0 | %) | |||
| Interest and financing costs | 312 | 628 | (50.3 | %) | |||
| Operating expenses | 4,251 | 3,804 | 11.8 | % | |||
| Operating income | $ | 7,465 | $ | 7,024 | 6.3 | % | |
| Adjusted EBITDA | $ | 7,553 | $ | 7,148 | 5.7 | % |
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 June 30, | |||||
|---|---|---|---|---|---|
| 2020 | 2019 | ||||
| (in thousands) | |||||
| Technology segment net sales | $ | 341,224 | $ | 368,535 | |
| Costs incurred related to sales of third-party maintenance, software assurance and subscription / SaaS licenses, and services | 205,170 | 179,828 | |||
| Adjusted gross billings | $ | 546,394 | $ | 548,363 | |
| Three Months Ended June 30, | |||||
| --- | --- | --- | --- | --- | --- |
| 2020 | 2019 | ||||
| (in thousands) | |||||
| Consolidated | |||||
| Net earnings | $ | 17,360 | $ | 16,188 | |
| Provision for income taxes | 7,735 | 6,528 | |||
| Depreciation and amortization [1] | 3,516 | 3,463 | |||
| Share based compensation | 1,907 | 1,942 | |||
| Acquisition and integration expense | 29 | 401 | |||
| Interest and financing costs | 265 | - | |||
| Other (income) expense [2] | (98 | ) | 45 | ||
| Adjusted EBITDA | $ | 30,714 | $ | 28,567 | |
| Three Months Ended June 30, | |||||
| --- | --- | --- | --- | --- | |
| 2020 | 2019 | ||||
| (in thousands) | |||||
| Technology Segment | |||||
| Operating income | $ | 17,532 | $ | 15,737 | |
| Depreciation and amortization [1] | 3,488 | 3,407 | |||
| Share based compensation | 1,847 | 1,874 | |||
| Acquisition and integration expense | 29 | 401 | |||
| Interest and financing costs | 265 | - | |||
| Adjusted EBITDA | $ | 23,161 | $ | 21,419 | |
| Financing Segment | |||||
| Operating income | $ | 7,465 | $ | 7,024 | |
| Depreciation and amortization [1] | 28 | 56 | |||
| Share based compensation | 60 | 68 | |||
| Adjusted EBITDA | $ | 7,553 | $ | 7,148 |
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| Three Months Ended June 30, | |||||
|---|---|---|---|---|---|
| 2020 | 2019 | ||||
| (in thousands) | |||||
| GAAP: Earnings before taxes | $ | 25,095 | $ | 22,716 | |
| Share based compensation | 1,907 | 1,942 | |||
| Acquisition and integration expense | 29 | 401 | |||
| Acquisition related amortization expense [3] | 2,228 | 2,187 | |||
| Other (income) expense [2] | (98 | ) | 45 | ||
| Non-GAAP: Earnings before taxes | 29,161 | 27,291 | |||
| GAAP: Provision for income taxes | 7,735 | 6,528 | |||
| Share based compensation | 587 | 559 | |||
| Acquisition and integration expense | 9 | 115 | |||
| Acquisition related amortization expense [3] | 667 | 607 | |||
| Other (income) expense [2] | (30 | ) | 13 | ||
| Tax benefit on restricted stock | (14 | ) | 10 | ||
| Non-GAAP: Provision for income taxes | 8,954 | 7,832 | |||
| Non-GAAP: Net earnings | $ | 20,207 | $ | 19,459 | |
| Three Months Ended June 30, | |||||
| 2020 | 2019 | ||||
| GAAP: Net earnings per common share – diluted | $ | 1.30 | $ | 1.20 | |
| Share based compensation | 0.10 | 0.10 | |||
| Acquisition and integration expense | - | 0.02 | |||
| Acquisition related amortization expense [3] | 0.12 | 0.12 | |||
| Other (income) expense [2] | (0.01 | ) | - | ||
| Total non-GAAP adjustments – net of tax | 0.21 | 0.24 | |||
| Non-GAAP: Net earnings per common share – diluted | $ | 1.51 | $ | 1.44 | |
| [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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