– Reaffirms Financial Target for Adjusted EBITDA
Profitability during First-Half of 2018 –
AMERI Holdings, Inc. (NASDAQ:AMRH) (“Ameri100” or the “Company”), a
specialized SAP® cloud, digital and enterprise services company,
today reported its fourth-quarter and full-year 2017 financial
results.
Full Year 2017 vs. Full Year 2016
- Revenue was $48.6 million compared to $36.1 million, an
increase of 34%;
- Gross profit was $10.2 million compared to $6.9 million, an
increase of 48%;
- Gross margin was 21.1% compared to 19.2%, an increase of 190
basis points;
- GAAP net loss was $(11.2) million compared to $(2.8)
million;
- Loss per share was $(0.75) compared to $(0.21) per diluted
share; and
- Adjusted EBITDA was $(0.8) million compared to $(1.0)
million.
Fourth Quarter 2017 vs. Fourth Quarter 2016
- Revenue of $11.5 million compared to $12.4 million, a decrease
of 8%;
- Gross profit of $2.0 million compared to $2.1 million;
- Gross margin was 17.8% compared to 16.7%, an increase of 112
basis points;
- GAAP net (loss)/net income of $(1.5) million compared to $1.3
million;
- Earnings/(Loss) per share of $(0.09) compared to $0.09;
and
- Adjusted EBITDA was $(0.7) million compared to $(1.1)
million.
“2017 was a year in which we established Ameri100 as a premier
solutions and services provider to the fast-growing and large SAP
services market through the integration of acquired businesses,”
said Brent Kelton, Chief Executive Officer of Ameri100. “We now
have an efficient platform to enable organizations’ cloud and
digital business transformation initiatives at a time when they are
accelerating their use of next-generation IT infrastructure to gain
a competitive advantage. We also started to integrate sales and
solutions-delivery functions to further penetrate our installed
base of clients and secure new ones with a broadened solutions
portfolio. Finally, we completed our first public offering to raise
capital, uplisted to the Nasdaq Capital Market and assembled a
management team to deliver long-term growth for the Company.”
“In 2018, we plan to drive top-line growth year-over-year
through a greater focus on solutions sales. Our recent client
successes are elevating our profile in the marketplace, and we are
increasingly playing a strategic role in advancing clients’ cloud
roadmaps that, together with our business development initiatives,
is yielding a robust sales pipeline that will propel our growth.
M&A remains a component of our growth strategy, which we
believe will enable us to more quickly enter new business verticals
and expand our capabilities and client base,” concluded Mr. Kelton.
“With a proven track record of operational excellence, deep and
compelling cloud and digital expertise and a management team
committed to capturing the opportunities ahead of us, we are
purpose-built for long-term success.”
2018 Financial Targets:For 2018, Ameri100 is
reaffirming its financial target of achieving adjusted EBITDA
profitability during the first-half of 2018. In addition, the
Company anticipates year-over-year revenue growth of 15% and
adjusted EBITDA profitability for the full year 2018.
Conference Call Management will host a
conference call today at 10:00 a.m. ET (New York) to discuss the
Company’s results as well as recent corporate developments. After
opening remarks, there will be a question and answer period.
Interested parties may participate in the call by dialing
1-877-270-2148 or 1-412-902-6510. Please call in 10 minutes before
the conference call is scheduled to begin. The conference call will
also be broadcast live over the Internet. To listen to the live
webcast of the call, please go to the Events section of the
Ameri100 corporate website. If you are unable to listen live, the
call will be archived and can be accessed for a period of one year
through the ‘Events’ link provided above.
About Ameri100Ameri100 is a fast-growing
specialized SAP® cloud, digital and enterprise services company
which provides SAP® services to customers worldwide. Headquartered
in Princeton, New Jersey, Ameri100 has offices in the U.S. and
Canada. Ameri100 also has global delivery centers in India. With
its bespoke engagement model, Ameri100 delivers transformational
value to its clients across industry verticals. For further
information, visit www.ameri100.com.
Forward-Looking StatementsThis press release
includes forward-looking statements that relate to the business and
expected future events or future performance of Ameri100 and
involve known and unknown risks, uncertainties and other factors
that may cause its actual results, levels of activity, performance
or achievements to differ materially from any future results,
levels of activity, performance or achievements expressed or
implied by these forward-looking statements. Words such as, but not
limited to, "believe," "expect," "anticipate," "estimate,"
"intend," "plan," "targets," "likely," "will," "would," "could,"
and similar expressions or phrases identify forward-looking
statements. Forward-looking statements include, but are not limited
to, statements about Ameri100's financial and growth projections as
well as statements concerning our plans, predictions, estimates,
strategies, intentions, beliefs and other information concerning
our business and the markets in which we operate. The future
performance of Ameri100 may be adversely affected by the following
risks and uncertainties: the level of market demand for our
services, the highly-competitive market for the types of services
that we offer, market conditions that could cause our customers to
reduce their spending for our services, our ability to create,
acquire and build new businesses and to grow our existing
businesses, our ability to attract and retain qualified personnel,
currency fluctuations and market conditions around the world, and
other risks not specifically mentioned herein but those that are
common to industry. For a more detailed discussion of these factors
and risks, investors should review Ameri100's reports on Form 10-K
and other reports filed with the Securities and Exchange Commission
(the “SEC”), which can be accessed through the SEC's website.
Forward-looking statements in this press release are based on
management's beliefs and opinions at the time the statements are
made. All forward-looking statements are qualified in their
entirety by this cautionary statement, and Ameri100 undertakes no
duty to update this information to reflect future events,
information or circumstances.
Use of Non-GAAP Financial MeasuresIn addition
to financial results calculated in accordance with U.S. generally
accepted accounting principles ("GAAP"), information containing
non-GAAP financial measures for the Company are disclosed in this
press release announcing results for the fourth quarter and fiscal
year ended December 31, 2017. The non-GAAP financial measures
disclosed by the Company should not be considered a substitute for,
or superior to, financial measures calculated in accordance with
GAAP, and the financial results calculated in accordance with GAAP
and reconciliations to those financial statements should be
carefully evaluated. The non-GAAP financial measures used by the
Company may be calculated differently from, and therefore may not
be comparable to, similarly titled measures used by other
companies. The Company has provided reconciliations of the non-GAAP
financial measures to the most directly comparable GAAP financial
measures. Management encourages readers to rely upon the GAAP
numbers, but includes the non-GAAP financial measures as
supplemental metrics to assist readers.
In this press release, the Company presents the non-GAAP
financial measure "adjusted EBITDA". Company management uses this
non-GAAP financial measures to evaluate the Company's performance.
As the Company's core business is providing information technology
services and products, Company management finds it useful to use
"adjusted EBITDA", which does not include interest, taxes,
depreciation, amortization, preferred stock dividends, stock-based
compensation expenses, acquisition related expenses and
restructuring expenses. While we may have these types of items and
charges in the future, Company management believes that they are
not reflective of the day- to-day offering of its products and
services and relate more to strategic, multi-year corporate
actions, without predictable trends, and that may obscure the
trends and financial performance of the Company's core business.
Company management believes the exclusion of the items described
above from "adjusted EBITDA" is a very common measure utilized in
the investment community and it helps Company management benchmark
its operations and results with the industry.
The limitation associated with using these non-GAAP financial
measures is that these measures exclude items that impact the
Company's current period operating results. This limitation is best
addressed by using these non-GAAP financial measures in combination
with "net income (loss)", and "net income (loss) per diluted share"
(the most comparable GAAP measures) because these non-GAAP
financial measures do not reflect items that impact current period
operating results and may be higher or lower than the most
comparable GAAP measure.
Corporate Contact:Viraj Patel, Chief Financial
OfficerIR@ameri100.com
Investor Relations Contact:Jody
Burfening/Sanjay M. HurryLHA Investor Relations(212)
838-3777IR@ameri100.com
– Financial Tables to Follow –
|
AMERI Holdings, Inc. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
Assets |
December 31, 2017 |
December 31, 2016 |
Current assets: |
|
|
Cash and
cash equivalents |
$4,882,084 |
$1,379,887 |
Accounts
receivable |
|
8,838,453 |
|
8,059,910 |
Other
current assets |
|
924,266 |
|
625,145 |
Total current assets |
|
14,644,803 |
|
10,064,942 |
Other assets: |
|
|
Intangible assets, net |
|
9,469,703 |
|
8,764,704 |
Goodwill |
|
21,898,323 |
|
17,089,076 |
Other
assets |
|
6,183,799 |
|
3,589,201 |
Total other assets |
|
37,551,825 |
|
29,442,981 |
Total assets |
$52,196,628 |
$39,507,923 |
|
|
|
Current liabilities: |
|
|
Line of
credit |
$4,053,318 |
$3,088,890 |
Accounts
payable & accrued expenses |
|
7,907,533 |
|
7,295,905 |
Bank term
loan |
|
749,551 |
|
405,376 |
Consideration payable – cash |
|
5,509,427 |
|
1,854,397 |
Consideration payable – equity |
|
12,148,053 |
|
64,384 |
Total current liabilities |
|
30,367,882 |
|
12,708,952 |
Long- term Liabilities: |
|
|
Convertible notes |
|
1,250,000 |
|
- |
Bank term
loan |
|
1,130,563 |
|
1,536,191 |
Consideration payable – cash |
|
- |
|
2,711,717 |
Consideration payable – equity |
|
- |
|
10,887,360 |
Total long-term liabilities |
|
2,380,563 |
|
15,135,268 |
Total liabilities |
|
32,748,445 |
|
27,844,220 |
|
|
|
Stockholders' equity: |
|
|
Stockholders’ equity |
|
19,448,183 |
|
11,663,703 |
Total liabilities and stockholders' equity |
$52,196,628 |
$39,507,923 |
|
|
|
|
|
|
AMERI Holdings, Inc. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
|
(unaudited) |
|
|
|
|
|
Three months endedDecember 31, |
Year ended December 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Revenue |
$11,454,598 |
|
$12,387,129 |
|
$48,593,712 |
|
$36,145,589 |
|
Cost of revenue |
9,414,432 |
|
10,320,127 |
|
38,355,967 |
|
29,217,186 |
|
Gross
profit |
$2,040,166 |
|
$2,067,002 |
|
$10,237,745 |
|
$6,928,403 |
|
|
18% |
|
17% |
|
21% |
|
19% |
|
Operating
expenses |
|
|
|
|
Selling, general and
administration |
$4,950,488 |
|
$3,644,084 |
|
$18,510,120 |
|
$9,361,961 |
|
Depreciation and
amortization |
885,150 |
|
638,779 |
|
3,217,191 |
|
1,361,169 |
|
Acquisition related
expenses |
90,949 |
|
(45,642) |
|
481,123 |
|
1,585,136 |
|
Operating
expenses |
5,926,587 |
|
4,237,221 |
|
22,208,434 |
|
12,308,266 |
|
Operating
(loss) |
(3,886,421) |
|
(2,170,219) |
|
(11,970,689) |
|
(5,379,863) |
|
Interest expenses |
(186,917) |
|
(76,391) |
|
(575,039) |
|
(751,074) |
|
Changes in
estimates |
674,158 |
|
(410,817) |
|
1,074,158 |
|
(410,817) |
|
Others, net |
(16,926) |
|
214,283 |
|
4,995 |
|
16,604 |
|
(Loss) before
income taxes |
(3,416,106) |
|
(2,443,144) |
|
(11,466,575) |
|
(6,525,150) |
|
Tax benefit |
2,391,762 |
|
3,747,846 |
|
2,391,762 |
|
3,747,846 |
|
Net income
(loss) after income taxes |
(1,024,344) |
|
1,304,702 |
|
(9,074,813) |
|
(2,777,304) |
|
Net income attributable
to non-controlling interest |
18,504 |
|
(3,382) |
|
- |
|
(3,382) |
|
Net income
(loss) attributable to the Company |
(1,005,840) |
|
1,301,320 |
|
(9,074,813) |
|
(2,780,686) |
|
Dividend on preferred
stock |
(542,496) |
|
- |
|
(2,089,151) |
|
- |
|
Net income
(loss) attributable to common stock holders |
(1,548,336) |
|
1,301,320 |
|
(11,163,964) |
|
(2,780,686) |
|
Other
comprehensive income (loss), net of tax |
|
|
|
|
Foreign exchange
translation |
55,385 |
|
(807) |
|
44,301 |
|
(7,426) |
|
Comprehensive
income (loss) |
$(1,492,951) |
|
$1,300,513 |
|
$(11,119,663) |
|
$(2,788,112) |
|
Basic earnings (loss) per share |
$(0.09) |
$0.09 |
$(0.75) |
$(0.21) |
Diluted earnings (loss) per share |
$(0.09) |
$0.09 |
$(0.75) |
$(0.21) |
|
|
|
|
|
Basic weighted average number of shares |
16,339,856 |
13,885,972 |
14,982,791 |
13,068,597 |
Diluted weighted average number of shares |
16,339,856 |
13,885,972 |
14,982,791 |
13,068,597 |
|
|
|
|
|
|
AMERI Holdings, Inc. |
UNAUDITED RECONCILIATION OF NET INCOME/(LOSS)
ATTRIBUTABLE TO COMMON STOCK HOLDERS TO EBITDA & ADJUSTED
EBITDA |
|
EBITDA and
Adjusted EBITDA Calculation |
Three months endedDecember 31, |
|
Year ended December 31, |
|
2017 |
|
2016 |
|
|
2017 |
|
2016 |
|
Net income
(loss) attributable to the common stockholders: |
$(1,548,336) |
|
$1,301,320 |
|
|
$(11,163,964) |
|
$(2,780,686) |
|
Dividend on preferred
stock |
542,496 |
|
- |
|
|
2,089,151 |
|
- |
|
Interest expense and
other, net |
203,843 |
|
(137,892) |
|
|
570,044 |
|
734,470 |
|
Taxes |
(2,391,762) |
|
(3,747,846) |
|
|
(2,391,762) |
|
(3,747,846) |
|
Depreciation and
amortization |
885,150 |
|
638,779 |
|
|
3,217,191 |
|
1,361,169 |
|
Earnings before
interest, tax, depreciation and amortization (EBITDA) |
(2,308,609) |
|
(1,945,639) |
|
|
(7,679,340) |
|
(4,432,893) |
|
Stock based
compensation expense |
1,910,876 |
|
511,688 |
|
|
7,078,230 |
|
1,457,647 |
|
Acquisition related
expenses |
90,949 |
|
(45,642) |
|
|
481,123 |
|
1,585,136 |
|
Changes in
estimates |
(674,158) |
|
410,817 |
|
|
(1,074,158) |
|
410,817 |
|
Restructuring
expenses |
306,695 |
|
- |
|
|
393,067 |
|
- |
|
Non-controlling
interest |
(18,504) |
|
3,382 |
|
|
- |
|
3,382 |
|
Adjusted
(EBITDA) |
$(692,751) |
|
$(1,065,394) |
|
|
$(801,078) |
|
$(975,911) |
|
|
|
|
|
|
|
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