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ePlus Inc (NASDAQ:PLUS)
Q1 2020 Earnings Call
Aug 7, 2019, 4:30 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good day, ladies and gentlemen. Welcome to the ePlus Earnings Results Conference Call. As a reminder, this conference call is being recorded.

I would like to introduce your host for today's conference call, Mr. Kley Parkhurst, SVP. Sir, you may begin.

Kley Parkhurst -- Senior Vice President

Thank you for joining us today. On the call is Mark Marron, CEO and President; Elaine Marion, Chief Financial Officer and Erica Stoecker, General Counsel. I want to take a moment to remind you that the statements we make this afternoon that are not historical facts may be deemed to be forward-looking statements and are based on management's current plans, estimates and projections. Actual and anticipated future results may vary materially due to certain risks and uncertainties detailed in the earnings release we issued this afternoon and our periodic filings with the Securities and Exchange Commission, including our Form 10-K for the year ended March 31st, 2019 and our Form 10-Q for the quarter ended June 30th, 2019 when filed.

The Company undertakes no responsibility to update any of these forward looking statements in light of new information or future events. In addition, during the call we may make reference to non-GAAP financial measures and we've included a GAAP financial reconciliation in our earnings release, which is posted on the investor information section of our website at www.eplus.com.

I'd now like to turn the call over to Mark Marron. MarK?

Mark Marron -- President and Chief Executive Officer

Thank you, Kley and thank you everyone for participating in today's call to discuss our first quarter results. Our first quarter results demonstrate strong demand for our technology products, solutions and services and we're off to a strong start in our fiscal 2020. In the quarter, adjusted gross billings were up 13.7% year-over-year and gross profit grew an impressive 14.8%. Consolidated gross margin was up 170 basis points to 24.3% remaining at an industry leading level supported by both our technology and financing segments. We continue to view gross profit growth as an important measurement of our performance and we think this is a good indicator for investors to benchmark our progress.

The percentage of our sales that we recognized on a net basis increased again this quarter, reflective of our success in selling third party maintenance services and software subscriptions. As I have mentioned in previous calls, although the evolving business model toward subscription and ratable services initially pressures top line comparisons and operating expense ratios, it is additive to gross profit and it should enhance the quality and predictability of our earnings over time.

As the industry continues to evolve toward a model where revenues are being recognized over time or on a net basis, we are well-positioned to capture these annuity type revenues with specialized go to market and operational teams. Also, we have built data analytics capabilities to ensure that we are both capturing new opportunities, as well as meeting customer needs.

What is not changing is our focus on high growth areas of security, cloud and digital infrastructure. Within these broad focus areas, our end-to-end solutions lead with consultative and advisory work and continue with optimized services such as managed services, enabling us to be a full service provider to our customers and grow with them from evaluation and analysis to implementation and support. We continued to see strong demand for our security solutions in the first quarter, as adjusted gross billings for security products and services grew 54.9% year-over-year. Security accounted for over 21% of our total adjusted gross billings on a trailing 12-month basis, which is a new high for us, up significantly from 18.4% in the same period a year ago.

Given the critical need for protecting IT infrastructure against cyber threats, we expect security to be a growing contributor for us and we continue to be a thought leader and evolve our solutions set in this area. In security, we continue to see opportunities to help our customers in the CASB or cloud access security broker space by helping them deal with the challenges of visibility and controlling their SaaS environments. Also, we continue to assist customers recover from ransomware outbreaks by providing business recovery services to help them mitigate malware along with providing high touch services with our security consultants.

This gives us the opportunity for remediation technology and consulting to bring businesses back online and help bolster defenses to prevent future attacks. Also, we recently launched vulnerability management as a service to identify, prioritize and remediate cybersecurity weaknesses in real time. This solution was like most of our evolving solutions in response to customer needs and demands and we will continue to develop solutions to support customers and help them stay ahead of threats.

Our services revenue was up 35.8% year-over-year. Customers look for us for expertise in providing professional, manage and staffing services and we continue to look at service lines and acquisitions that can add to our portfolio of offerings for our customers, while enhancing our overall margin profile. Each of these services keeps us close to our customers, providing substantial opportunities to provide further consultative services and to cross-sell and up sell additional services and products.

Our operating income was up 11.2% during the quarter, even as we continue to be highly focused on making the right investments to remain a leader to our customers, while optimizing our cost infrastructure. Also we are developing annuity services in a transaction portfolio that will have significant benefits over the long-term. We are especially committed to building scalable, leverageable business lines like managed services that can add incremental revenue with low marginal cost, thereby improving our operating leverage.

While our headcount is up at 23% year-to-year, the bulk of the additional headcount came from the SLAIT acquisition, where a significant number of new employees were in their staffing services. On a sequential basis, our headcount was flat. What is less obvious from looking at our total headcount is that our customer facing headcount was up 29% year-to-year. The additional sales and technical personnel is an important differentiator for ePlus in the marketplace.

In closing, our first quarter results demonstrate strong demand for our technology products, solutions and services from our diversified set of middle market enterprise, state, local and education customers. Customers are continuing to digitize their businesses, create and utilize multi-cloud infrastructure, upgrade their collaboration platforms and network and invest in IT security. We believe we are very well positioned with the right mix of professional and managed services and the right product mix to meet customer demand and anticipate market trends. Additionally, we will continue to evaluate strategic acquisitions with more than adequate resources and a great integration platform and experienced team.

With that, I will turn the call over to our CFO, Elaine Marion, who will review our first quarter results. Elaine?

Elaine Marion -- Chief Financial Officer

Thank you, Mark and thank you everyone for joining us today. Starting with our overall financial performance in the first quarter of fiscal 2020, net sales were $381.4 million, up 7% from the prior year. Net sales in the technology segment increased 6.2% year-over-year, driven by higher product sales and a 35.8% increase in sales of services. Also contributing to the top line growth was our financing segment, where net sales increased 32.8% to $12.8 million.

Looking at our end markets in our technology segment on a trailing 12 month basis, technology and SLED continue to be our largest customer end markets, accounting for 21% and 17% of technology segment net sales respectively. Financial services and healthcare each accounted for 15%, telecom, media and entertainment represent approximately 14% of net sales and the remaining 18% from several other client types. Adjusted gross billings in the technology segment amounted to $548.4 million, a 13.7% increase compared to $482.3 million in the same period a year ago, reflecting strong demand, as well as a higher gross to net adjustment between billings and sales.

Additionally, security grew 54.9%, supporting this strong performance. The adjustment from adjusted gross billings to net sales represented 32.8% in the first quarter of fiscal 2020, a 470 basis point increase from the year ago quarter, reflecting a higher proportion of sales of third-party subscription based software and maintenance.

Consolidated gross profit increased 14.8% to $92.6 million from $80.7 million. Our consolidated gross margin expanded 170 basis points to 24.3% for the quarter. Gross profit for the technology segment increased 12.4% to $81.8 million, while gross margin expanded by 120 basis points to 22.2% due to a favorable mix of products and services. Service gross margin declined to 37.4%.

The decline was related to a larger proportion of staffing services and enhancement maintenance support, which yield lower margins than professional services. These services are accretive to our overall margin and offer more consistent revenue stream. In the financing segment, gross profit increased 36.7% to $10.8 million, primarily due to an increase in transactional gains.

Operating expenses increased 16% to $69.9 million, mainly due to an increase in salaries, variable compensation, healthcare costs and additional costs associated with the acquisition and operation of SLAIT. This acquisition was the primary contributor to the 23.1% or 289 year-over-year increase in headcount to 1,538 employees, as it added 246 employees. Consolidated operating income increased 11.2% to $22.8 million, adjusted EBITDA increased 12.6% year-over-year to $28.6 million and our adjusted EBITDA margin of 7.5% expanded by 40 basis points from the same period last year.

Our consolidated net earnings amounted to $16.2 million or a $1.20 per diluted share compared to $15.3 million or a $1.12 per diluted share, a 6% and 7.1% increase respectively. In the first quarter of fiscal 2020, we had a higher effective tax rate of 28.7% compared to 25.7% in the year ago quarter due to a tax benefit related to stock vesting in the previous year's quarter. Non-GAAP diluted EPS were $1.44 up 12.5% year-to-year. Our diluted shares outstanding totalled $13.5 million for the quarter compared to $13.6 million at the end of the first quarter of fiscal 2019, as we repurchased approximately 188,000 shares.

Moving to the balance sheet, we ended the quarter with cash and cash equivalents of $35.6 million. The decrease in cash and cash equivalents from the end of last quarter was due to increases in working capital in the technology segment, investments in the financing portfolio and share repurchases. Inventory levels increased 15.3% to $58.2 million from the year ago quarter. As we've said before, our inventory levels vary depending on specific customer projects under way. We are pleased with the progress in our cash conversion cycle, which stood at 24 days at the end of the first quarter. Although, this was up from 22 days in the year ago quarter, we were on the right path sequentially down from 27 days for the fourth quarter of fiscal 2019.

On April 1st, 2019, we adopted the lease accounting standard, as a lessee we recorded an increase to assets and liabilities of $12.3 million, which related to our real estate leases. As a lessee among other changes, we are now classifying cash flows related to our financing receivables within operating activities, the majority of which were previously presented as investing activities. More information regarding the impact of adopting this standard will be included in our Form 10-Q. Going forward, our capital allocation strategy remains the same to make acquisitions, repurchase shares and continue to invest in our business to support growth. We'll also focus on balancing investments in future growth initiatives in managing our costs.

Thank you for your time today. I will now turn the call back over to Mark.

Mark Marron -- President and Chief Executive Officer

Thanks, Elaine. We were pleased with our first quarter performance. Our business outlook remains positive with strong customer demand. In addition to the growth in recurring revenues, our services backlog remained strong which should benefit our gross profit profile. ePlus is serving a roster of over 3,400 enterprise and middle market customers giving us tremendous opportunities to cross-sell our increasingly broad suite of products and services. Our strong balance sheet provides us the resources to maintain a balanced capital allocation strategy that includes investment in inorganic initiatives, share repurchases and acquisitions. And we continue to evaluate acquisition candidates with the right geographic profile that can enhance our product and service offerings.

Operator, I would now like to open the call for questions.

Questions and Answers:

Operator

[Operator Instructions] Our first question comes from Maggie Nolan of William Blair.

Ted Starck-King -- William Blair -- Analyst

Hey, Mark. Hi, Elaine. This is Ted on for Maggie. How are you guys doing?

Elaine Marion -- Chief Financial Officer

Good.

Mark Marron -- President and Chief Executive Officer

Hey, Ted. How are you?

Ted Starck-King -- William Blair -- Analyst

Doing well. So I wanted to ask about the -- some of the subscription and annuity revenue that you've seen this quarter. Do you feel like that's reached a point where it's become less of a headwind? And I know, Mark, you mentioned that it provides some consistency in revenue stream, so is this the type of quarter that you feel -- that you expect to be able to deliver more consistently going forward?

Mark Marron -- President and Chief Executive Officer

As it relates to software subscriptions, one thing, Ted, so for the quarter, our software subscriptions -- third-party software subscriptions were actually up about 112% year-over-year. So we've actually built a software practice that actually works with our customers around enterprise agreements and things like that. So I would expect that to continue at least for the near future. And then over time, we'll evaluate to see if it'll level off.

Ted Starck-King -- William Blair -- Analyst

Got you. And so then based on some of your conversations with customers, what's your sense for how the demand environment today compares to your expectations going into your -- has your outlook changed offer products and services?

Mark Marron -- President and Chief Executive Officer

No, it hasn't changed, Ted, still feel good about both our pipeline, our backlog, what we're hearing from our customers, the things that they're looking to purchase to protect themselves both from a security, moving to the cloud, digitizing their business. So demand and what we're seeing from an IT spend still hasn't changed.

Ted Starck-King -- William Blair -- Analyst

Very good. And then couple more questions here, if I can, real quick. So wanted to ask about the large projects, what are you seeing in terms of large project pipeline?

Mark Marron -- President and Chief Executive Officer

Well, we didn't see any large projects as it relates to this quarter. So if you're talking about our land and expand, didn't have any big land and expand projects this quarter that affected our numbers, if you will. As we talked about, Ted, on previous calls, we're always looking for opportunities with some of the bigger enterprise customers that were now based on our size and scale and relationships with other customers would be in brought into more and more enterprise like accounts. So we'll continue to pursue those and leverage our land and expand and then over time try to sell more within that customer base.

Ted Starck-King -- William Blair -- Analyst

Definitely. And last question here, if I can. So wanted to dig in a little bit on the SLAIT acquisition, how much growth did they contribute to services revenue this quarter and how much did they provide to products revenue this quarter? Thanks.

Mark Marron -- President and Chief Executive Officer

Overall, the organic growth was about two-thirds and SLAIT was about a third, Ted, for growth for the quarter.

Elaine Marion -- Chief Financial Officer

In adjusted gross billings.

Mark Marron -- President and Chief Executive Officer

In adjusted gross billings. Thank you.

Ted Starck-King -- William Blair -- Analyst

All right. Thank you.

Mark Marron -- President and Chief Executive Officer

All right, Ted. Hey, we'll see you soon. Okay?

Ted Starck-King -- William Blair -- Analyst

Yep, see you.

Operator

Our next question comes from Matt Sheerin with Stifel.

Matthew Sheerin -- Stifel -- Analyst

Yes. Thank you. Good morning, everyone -- good afternoon, sorry. So question -- yeah, just a question regarding the hardware growth that you're seeing. Mark, we're in an environment where we're hearing from certain OEMs seeing enterprise push outs, particularly weakness in storage and servers. I know you sell a lot of those products in addition to networking products. Could you talk about where the demand is right now and what priorities are in the hardware side you're seeing from customers?

Mark Marron -- President and Chief Executive Officer

Okay. So on the storage and servers, it's kind of up and down. But I think the demand is still up a little bit that we're seeing on our end. if I look at the uptick, Matt, security is a big uptick. I think it was noted earlier our security was up almost 55%, I think it was 54.9% year-over-year, which is now about 21% of our adjusted gross billings for the trailing 12 months. We're seeing some networking or netcom spend if you will overall. So those would be the areas we're seeing any upticks along with some of the services that we're providing to our customers. So as we've noted in our prior calls, we made a lot of investment in our cloud, our security or services practices and we're starting to see that some of the fruition of that come through.

Matthew Sheerin -- Stifel -- Analyst

Yeah and you talked to a previous question about the fact that you're not seeing any like these very big enterprise deals, is that a timing issue? Are you also seeing large deals get pushed out for whatever reason customer is being more cautious?

Mark Marron -- President and Chief Executive Officer

Yes, sorry, Matt. Just some clarity on that one. We didn't have any land and expand large projects. If you remember, we had talked about a large project over the last year or two that kind of had a little bit of a hangover for us on a compare. We're seeing many enterprise deals both from a hardware as well as from a software perspective, but none were the land and expand portion that we had talked about. We are seeing some nice growth in our enterprise space though and I think that's part as we build out our solutions that enterprise and mid-market customers look for in the cloud and security and digital space, I think hopefully that will continue for us as we go forward.

Matthew Sheerin -- Stifel -- Analyst

I guess my question was whether you're seeing any hesitancy from customers in terms of pulling the trigger on projects because of the macro environment, tariffs et cetera?

Mark Marron -- President and Chief Executive Officer

Yeah, no, we haven't seen anything, Matt. In fact tariffs haven't affected our business either positively or negatively. So we haven't had any deals pull forward or be pushed out. So I'd say that the at a macro level, it hasn't changed for us, with some of the announcements over the last few days I mean, we'll have to see how that kind of plays out over coming weeks, but haven't heard anything so far from customers in Q1 or so far from our teams as it relates to Q2 as we move through our second quarter here.

Matthew Sheerin -- Stifel -- Analyst

Okay. And just back to the numbers you gave around security and solutions, I think 21% and of billings and then also the services number. Could you give that services number again and break that down to the various components of the services that you do?

Mark Marron -- President and Chief Executive Officer

Yeah, well, Matt, as you know, we don't break it down. But if you look at our services, a couple of different things. At the end of March, at the end of our Q4, we had talked about our services. We had a CAGR of 24% over the prior three years. This quarter what we had talked about was our growth was almost 35% year-over-year for our services. So we feel really good, a lot of things that we've talked about in terms of investing in building out our consultative capability, service capabilities, building out our managed or annuity services capabilities or enhance maintenance services capabilities is actually working as well as building out our staffing capabilities. So in fact, we were -- I'll say, pleasantly surprised. Our staffing numbers were up nicely, which actually affected our services margins a little because it's a little bit lower margins than our professional services and consulting services, but it was a positive year-on-year in terms of our service revenues and our service GP overall.

Matthew Sheerin -- Stifel -- Analyst

Okay. Fair enough. Just trying to figure out what percentage of your services are selling third-party services and warranties versus your own feet on street -- feet on the street where you're actually working with customers directly as opposed to selling third-party warranties and services and annuities?

Mark Marron -- President and Chief Executive Officer

Yeah. hey, Matt, when we're talking about our revenues in terms of our services revenues, I think we said it was 12% of our net sales for this quarter, that's all our services. So that's not third-party maintenance. When you get into the third-party maintenance, let's say, Cisco smart net and stuff like that is when we talk to gross to net, which our gross to net was up roughly 470 basis points, so that's the third-party maintenance along with subscription sales that falls in that gross to net bucket.

Matthew Sheerin -- Stifel -- Analyst

Does that fall in the software bucket then? What -- if it's not in services, where is it?

Elaine Marion -- Chief Financial Officer

Matt, that's in our products -- sales of products line on our income statement.

Matthew Sheerin -- Stifel -- Analyst

Oh it's in the products?.

Elaine Marion -- Chief Financial Officer

Services line on the income statement, it's fully services that we provide directly to our clients.

Matthew Sheerin -- Stifel -- Analyst

Okay. Fair enough. Clarifying on that. Thank you.

Mark Marron -- President and Chief Executive Officer

No problem. See you Matt.

Operator

Our next question comes from Greg Burns with Sidoti.

Gregory Burns -- Sidoti -- Analyst

Yes, I mean, when we look at the expansion, the gross margin year-over-year, what percent of that was driven by the change in gross to net versus maybe the growth in services?

Elaine Marion -- Chief Financial Officer

Yeah, the majority of the increase in the gross margin is from the gross to net, but also contributing to was the increase in gross profit from our services. It's obviously smaller component in the entire net sales line. So if the majority of it was the net sales component yes, also contributing with our financing segment. So they had a large increasing gross profit as well from a year-over-year basis.

Gregory Burns -- Sidoti -- Analyst

Okay, thanks. And when we look at some of the growth areas you've been investing in, certainly securities showing nice growth, but you also talk about cloud and digital infrastructure. Your practices, your cloud and digital infrastructure practices, how do they compare in relation to your security practice, maybe from a maturity perspective? I'm just trying to get a feel for whether there's room for improvement in other areas of growth where you can invest more and kind of maybe see the type of growth you're seeing in security in some other areas of the market?

Mark Marron -- President and Chief Executive Officer

Yeah. So, hey, we just break -- right now we just, Greg, just breaking out the security. But when you think about cloud, it's effectively a data center business, which is what we grew up on as ePlus. So we're a data center company providing all your compute, your storage or networking and it's just a continued play on that. So all the things that are coming out around the digitization of networks and software defined and mobility and everything that goes with it fits within our sweet spot. So that's all -- all things that we've kind of grown up with and we continue to enhance and expand as we move forward.

Gregory Burns -- Sidoti -- Analyst

Okay, so I guess in terms of the more growth areas of the market, I mean do you still perceive security kind of leading in terms of growth, in terms of the services you're selling or are there other areas that you see maybe potentially being comparable to or additive in a similar fashion, that's securities have been?

Mark Marron -- President and Chief Executive Officer

Well, the reason we always break out security, Greg, is one thing no matter if you think about it, even if you put applications out in the cloud and you have some of that around prem, you still need security from a both from a visibility standpoint or from a protection standpoint. So when we say we're building out our cloud security and digital infrastructures, those three are really tied together in many different ways in terms of what we sell, both from a product, integrated product, as well as the services that we provide. So it's really cloud security and digital infrastructure is where we're seeing where we're focusing our sales and services teams, where we're making investments in training and headcount and where we're building out solutions and services that our customers need in those space.

Gregory Burns -- Sidoti -- Analyst

Okay. And then just lastly, in terms of services and what's included in that line item, I just want to understand is some of the consultative services, they're not necessarily recurring I would say, so is there -- is building off of this first quarter, kind of growing from here how to look at it or was there anything in this quarter that was particularly strong where maybe you might not repeat next quarter?

Mark Marron -- President and Chief Executive Officer

No, I don't think there is anything in terms of that might not repeat. So it's a lot of. So if I were to step through it, the consultative is where we're working with the customers, helping them for example cloud usage and risk workshops where we'll sit with the customer and we'll actually help them understand where their applications reside, what's the security that they have to put in place and then help them build a roadmap of what they have to do, both internally and externally to protect their data, which is a combination of products and services. So those types of things I would expect to continue not only in the cloud, but also in the security space, in digital space. As it relates to the PS, that's just the function of the products that we sell from an installation and implementation and I would expect that to continue. And then as it relates to annuity services, what we've kind of talked about over time, what's great about annuity services were both good and bad as -- you book a deal of annuity services. You then have that ratable revenue in GP for 36 months or 60 months depending on how long the term is. So, as you build up that backlog in billings, that revenue in GP should grow over time. The headcount, the piece that we have is you have the little bit of a headwind upfront as you got to put all the expense in upfront in terms of headcount and tools and processes and things along those lines that affect your number short term.

Gregory Burns -- Sidoti -- Analyst

Okay. Thank you.

Mark Marron -- President and Chief Executive Officer

All right, Greg, we'll see you soon.

Gregory Burns -- Sidoti -- Analyst

All right. Bye.

Operator

Our next question comes from Brett Knoblauch with Berenberg Capital.

Brett Knoblauch -- Berenberg Capital Markets -- Analyst

Hi, guys. Thanks for taking my question. Just a couple of ones for me, the first of which is on SLAIT. How is that performing relative to your expectations now there were a few months in?

Mark Marron -- President and Chief Executive Officer

Yeah. Hey, so sorry, Brett, we didn't hear the beginning, but I think the question was around SLAIT and how they are performing. So what -- we feel really good about the SLAIT acquisition. A good group of people, that's a real cultural fit, strong management team, really perform up to expectation so far for us. And we're starting to see some real nice synergies across what we bring to the table as ePlus, even though they're now ePlus and what SLAIT brings to the table, whether with their helpdesk services, governance risk and compliance type services in the security space, staffing and a few other things. So right now, very, very pleased with the SLAIT acquisition.

Brett Knoblauch -- Berenberg Capital Markets -- Analyst

Okay. Then speaking of synergies, how should we be looking at SG&A going forward? I think this is the sixth or seventh quarter where we saw year-over-year increase in just your SG&A spend, that's something we should kind of forecast going forward?

Mark Marron -- President and Chief Executive Officer

Yeah, look, if I look at it now, I would think this quarter is a good run rate for SG&A for us and that precludes if anything exceptional happens or anything along those lines. The other thing that I just can't predict at this point if, GP gross profit is up significantly then the variable comp would be up, but I think this quarter is a good run rate to go off of from an SG&A perspective.

Brett Knoblauch -- Berenberg Capital Markets -- Analyst

Okay. Thank you. And then just one more on services. How should we think about that sequentially? Should that see this as sequential increases or incremental increases sequentially?

Mark Marron -- President and Chief Executive Officer

No, I don't think so. Services -- I'd have to look at the numbers, so I don't want to just make it up, but I don't think you'll see sequential growth each quarter. Now, we would expect with annuity over time, we'll start to see consistent growth there. But we've seen our services kind of go up and down based on the quarter, meaning whether it's the end of year, we get a bump from an acquisition like SLAIT or things along those lines that could affect that.

Brett Knoblauch -- Berenberg Capital Markets -- Analyst

And then how much of that 35% securities growth was driven by SLAIT included?

Mark Marron -- President and Chief Executive Officer

How much of the -- well, now the 35 the third that I talked about, so two thirds was organic growth and a third was SLAIT for adjusted gross billings. And then...

Brett Knoblauch -- Berenberg Capital Markets -- Analyst

But, yeah, they are down to the actual services segment, how much of that service's growth year-over-year growth was contributed little or actually [Speech Overlap].

Mark Marron -- President and Chief Executive Officer

I would say a nice portion in terms of their staffing and a few other businesses that they built up was a nice portion of the services.

Brett Knoblauch -- Berenberg Capital Markets -- Analyst

Okay Thank you.

Mark Marron -- President and Chief Executive Officer

All right. Hey, we'll see you soon. Okay?

Brett Knoblauch -- Berenberg Capital Markets -- Analyst

Yeah. Great.

Mark Marron -- President and Chief Executive Officer

All right. Take care.

Operator

And I'm not showing any further questions. I'd like to turn the call back over to our host.

Mark Marron -- President and Chief Executive Officer

All right. Thank you. Thank you, everyone for joining us today. We were pleased with our performance for the quarter and look forward to seeing you or hearing from you at next quarter's call. Take care. Have a good day.

Operator

[Operator Closing Remarks]

Duration: 32 minutes

Call participants:

Kley Parkhurst -- Senior Vice President

Mark Marron -- President and Chief Executive Officer

Elaine Marion -- Chief Financial Officer

Ted Starck-King -- William Blair -- Analyst

Matthew Sheerin -- Stifel -- Analyst

Gregory Burns -- Sidoti -- Analyst

Brett Knoblauch -- Berenberg Capital Markets -- Analyst

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