EPlus Inc. (NASDAQ: PLUS) has reported its financial results for the fourth quarter and fiscal year 2024, along with the announcement of a new share repurchase program. The company experienced a return to double-digit net sales growth in the fourth quarter, with net sales increasing 12.7% to $554.5 million compared to the previous year's fourth quarter. The technology business net sales increased 12.6% to $544.1 million, and services revenues saw a 14.8% increase to $78.9 million.
However, the consolidated gross profit decreased by 1.5% to $130.3 million, contributing to a lower consolidated gross margin of 23.5% compared to 26.9% in the previous year. Net earnings decreased by 33.1% to $22.0 million, and adjusted EBITDA decreased by 24.4% to $36.8 million, with diluted net earnings per common share decreasing by 33.3% to $0.82.
For the fiscal year 2024, net sales increased by 7.6% to $2,225.3 million, with technology business net sales increasing by 8.0% to $2,175.9 million. Services revenues also saw a 10.4% increase to $292.1 million. The technology business gross billings increased by 5.8% to $3,329.8 million. However, the consolidated gross margin was reported at 24.8%, a decline from the previous year's 25.0%. Net earnings decreased by 3.0% to $115.8 million, and adjusted EBITDA remained relatively flat at $190.4 million. Diluted net earnings per common share decreased by 3.3% to $4.33.
The company's cash and cash equivalents as of March 31, 2024, stood at $253.0 million, up from $103.1 million in the previous year. Furthermore, EPlus is initiating fiscal year 2025 guidance for net sales growth over the prior fiscal year of between 3% and 6%, and an adjusted EBITDA range of $200.0 million to $215.0 million.
Additionally, EPlus announced a new share repurchase program, authorizing the repurchase of up to 1,250,000 shares of its outstanding common stock over a 12-month period commencing May 28, 2024.
EPlus remains focused on disciplined, consistent execution to meet the needs and demands of its customers in this dynamic marketplace. The performance in fiscal 2024 sets the stage for a successful year in fiscal 2025, and the company is well-positioned to meet its customers' evolving needs in areas including AI, cloud, security, and consultative, professional, and managed services. Today the company's shares have moved -0.4% to a price of $79.26. Check out the company's full 8-K submission here.
