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 2018 financial
results.
Full Year 2018 vs. Full Year 2017
- Revenue of $43.0 million compared to $48.6 million;
- Gross profit of $9.0 million compared to $10.2 million;
- Gross margin of 20.9% compared to 21.1%;
- Operating loss of $(7.1) million compared to an operating loss
of $(10.9) million. Included in the 2018 operating loss is a $9.0
million impairment on goodwill with respect to certain reporting
units and intangible asset with respect to certain customer lists
and a one-time non-cash gain of $6.9 million as a result of the
Company’s change in estimate of its consideration payable related
to a prior acquisition;
- GAAP net loss of $(19.4) million compared to $(11.1) million.
Included in the 2018 net loss is a negative $2.8 million in changes
in fair value of warrants issued in connection with a previously
disclosed placement transaction;
- Loss per share of $(0.82) compared to $(0.75). Loss per share
for 2018 includes the issuance of 22.6 million shares of common
stock and exercise of warrants related to the private
placement;
- Adjusted EBITDA loss of $(432,729) compared to $(801,078);
and
- Cash and cash equivalents were $1.4 million at December 31,
2018.
Fourth Quarter 2018 vs. Fourth Quarter 2017
- Revenue of $10.3 million compared to $11.5 million;
- Gross profit of $1.9 million compared to $2.0 million;
- Gross margin of 18.5% compared to 17.8%;
- Operating loss of $(10.8) million compared to an operating loss
of $(3.2) million. Included is a $9.0 million impairment on
goodwill with respect to certain reporting units and intangible
assets with respect to certain customer lists;
- GAAP net loss of $(19.8) million compared to $(1.5) million.
Included in the fourth quarter 2018 net loss is a negative $2.5
million in changes in fair value of warrants issued in connection
with a previously disclosed placement transaction;
- Loss per share of $(0.55) compared to $(0.09). Loss per share
for the fourth quarter of 2018 includes the issuance 19.3 million
additional shares by exercise of warrants related to the
private placement; and
- Adjusted EBITDA loss was $(468,355) compared to
$(692,751).
Note: As part of and pursuant to its private
placement, the Company issued 22,544,139 Series ‘A’ warrants for
the purchase of an equal number of shares of common stock and
19,508,621 pre-funded Series ‘B’ warrants for the purchase of an
equal number of shares of common stock.
Subsequent to the end of fiscal 2018 to March 26, 2019, Ameri100
has received gross proceeds of $1.5 million from the exercise of
4,699,312 Series ‘A’ warrants. All pre-funded Series ‘B’ warrants
were exercised during 2018. Series ‘A’ warrants have an exercise
price of $0.3123 per share.
Update on Google Cloud Premier Partner
CertificationAs previously disclosed, Ameri100 is
upgrading its status to Premier Partner in Google’s Cloud Partner
Program to support the migration of mutual clients’ SAP computing
environments to the cloud. As of today, the Company has completed
the requirements for sales accreditation and partially completed
the requirements for technical accreditation for Premier Partner
status. The Company now expects to join the Premier level of the
Program by the end of May 2019 as the only pure-play SAP service
provider in the Program.
Conference CallThe Company will not host a
conference call to discuss its fourth-quarter and full-year
2018 financial results.
About Ameri100Ameri100 is a
specialized SAP® cloud, digital and enterprise services company
which provides SAP® services to customers worldwide. Headquartered
in Atlanta, Georgia, Ameri100 has offices in the U.S. and Canada.
The Company also has global delivery centers in India. With its
bespoke engagement model, the Company 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. 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, restructuring expenses, changes in estimates related to
acquisitions and impairment charge on goodwill and intangible
assets. 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:Barry Kostiner, Chief
Financial OfficerIR@ameri100.com
Investor Relations Contact:Sanjay M. HurryLHA
Investor Relations(212) 838-3777IR@ameri100.com
– Financial Tables Follow –
AMERI HOLDINGS,
INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS
Assets |
|
December
31,2018 |
|
December
31, 2017 |
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
1,371,331 |
$ |
4,882,084 |
Accounts receivable |
|
7,871,422 |
|
8,838,453 |
Other current assets |
|
818,600 |
|
924,266 |
Total current assets |
|
10,061,353 |
|
14,644,803 |
Other assets: |
|
|
|
|
Intangible assets, net |
|
5,778,036 |
|
9,469,703 |
Goodwill |
|
13,729,770 |
|
21,898,323 |
Other assets |
|
68,291 |
|
6,183,799 |
Total other assets |
|
19,576,097 |
|
37,551,825 |
Total assets |
$ |
29,637,450 |
$ |
52,196,628 |
|
|
|
|
|
Current liabilities: |
|
|
|
|
Line of credit |
$ |
3,950,681 |
$ |
4,053,318 |
Accounts payable & accrued expenses |
|
6,075,430 |
|
7,907,533 |
Bank term loan |
|
6,450 |
|
749,551 |
Dividend payable |
|
105,181 |
|
- |
Convertible notes |
|
1,250,000 |
|
- |
Consideration payable – cash |
|
2,696,000 |
|
5,509,427 |
Consideration payable – equity |
|
605,223 |
|
12,148,053 |
Total current liabilities |
|
14,688,965 |
|
30,367,882 |
Long-term Liabilities: |
|
|
|
|
Convertible notes |
|
- |
|
1,250,000 |
Bank term loan |
|
- |
|
1,130,563 |
Warrant liability |
|
4,189,388 |
|
- |
Total long-term liabilities |
|
4,189,388 |
|
2,380,563 |
Total liabilities |
$ |
18,878,353 |
$ |
32,748,445 |
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
Stockholders’ equity |
|
10,759,097 |
|
19,448,183 |
Total liabilities and stockholders' equity |
$ |
29,637,450 |
$ |
52,196,628 |
AMERI HOLDINGS,
INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
Three Months EndedDecember 31,
2018 |
|
Three Months Ended December
31, 2017 |
|
Twelve Months EndedDecember
31,2018 |
|
Twelve Months EndedDecember
31,2017 |
|
|
|
|
|
|
|
|
|
Revenue |
$ |
10,283,176 |
|
$ |
11,454,598 |
|
$ |
42,998,280 |
|
$ |
48,593,712 |
|
Cost of revenue |
|
8,377,354 |
|
|
9,414,432 |
|
|
34,017,776 |
|
|
38,355,967 |
|
Gross
profit |
|
1,905,822 |
|
|
2,040,166 |
|
|
8,983,504 |
|
|
10,237,745 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administration |
|
2,735,390 |
|
|
4,950,488 |
|
|
10,794,822 |
|
|
18,510,120 |
|
Depreciation and
amortization |
|
637,149 |
|
|
885,150 |
|
|
2,903,662 |
|
|
3,217,191 |
|
Impairment on
goodwill |
|
9,038,553 |
|
|
- |
|
|
9,038,553 |
|
|
- |
|
Acquisition related
expenses |
|
95,285 |
|
|
90,949 |
|
|
333,237 |
|
|
481,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in
estimates |
|
200,000 |
|
|
(674,158 |
) |
|
(6,940,310 |
) |
|
(1,074,158 |
) |
Operating
expenses |
|
12,706,377 |
|
|
5,252,429 |
|
|
16,129,964 |
|
|
21,134,276 |
|
Operating
income (loss) |
|
(10,800,555 |
) |
|
(3,212,263 |
) |
|
(7,146,460 |
) |
|
(10,896,531 |
) |
Interest expenses |
|
(145,822 |
) |
|
(186,917 |
) |
|
(729,896 |
) |
|
(575,039 |
) |
Changes in fair value
of warrant liability |
|
(2,499,489 |
) |
|
- |
|
|
(2,760,819 |
) |
|
- |
|
Others, net |
|
4,425 |
|
|
(16,926 |
) |
|
88,161 |
|
|
4,995 |
|
Income (loss)
before income taxes |
|
(13,441,441 |
) |
|
(3,416,106 |
) |
|
(10,549,014 |
) |
|
(11,466,575 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit |
|
(6,323,568 |
) |
|
2,391,762 |
|
|
(6,348,502 |
) |
|
2,391,762 |
|
Income (loss)
after income taxes |
|
(19,765,009 |
) |
|
(1,024,344 |
) |
|
(16,897,516 |
) |
|
(9,074,813 |
) |
Net income attributable
to non-controlling interest |
|
- |
|
|
18,504 |
|
|
- |
|
|
- |
|
Net income
(loss) attributable to the Company |
|
(19,765,009 |
) |
|
(1,005,840 |
) |
|
(16,897,516 |
) |
|
(9,074,813 |
) |
Dividend on preferred
stock |
|
(105,180 |
) |
|
(542,496 |
) |
|
(2,583,185 |
) |
|
(2,089,151 |
) |
Net income
(loss) attributable to common stock holders |
$ |
(19,870,189 |
) |
$ |
(1,548,336 |
) |
$ |
(19,480,701 |
) |
$ |
(11,163,964 |
) |
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss), net of tax |
|
|
|
|
|
|
|
|
Foreign exchange
translation |
|
50,922 |
|
|
55,385 |
|
|
50,122 |
|
|
44,301 |
|
Total
comprehensive income (loss) |
$ |
(19,819,267 |
) |
|
(1,492,951 |
) |
|
(19,430,579 |
) |
|
(11,119,663 |
) |
|
|
|
|
|
|
|
|
|
Basic loss per
share |
$ |
(0.55 |
) |
$ |
(0.09 |
) |
$ |
(0.82 |
) |
$ |
(0.75 |
) |
Diluted loss per
share |
$ |
(0.55 |
) |
$ |
(0.09 |
) |
$ |
(0.82 |
) |
$ |
(0.75 |
) |
|
|
|
|
|
|
|
|
|
Basic weighted average
number of common shares outstanding |
|
35,975,386 |
|
|
16,339,856 |
|
|
23,790,030 |
|
|
14,982,791 |
|
Diluted weighted
average number of common shares outstanding |
|
35,975,386 |
|
|
16,339,856 |
|
|
23,790,030 |
|
|
14,982,791 |
|
AMERI HOLDINGS,
INC.UNAUDITED RECONCILIATION OF NET (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS TO EBITDA & ADJUSTED
EBITDA
EBITDA and
Adjusted EBITDA Calculation |
|
|
|
|
|
|
Three Months EndedDecember
31,2018 |
|
Three Months EndedDecember 31,
2017 |
|
Twelve Months EndedDecember
31, 2018 |
|
Twelve Months EndedDecember
31, 2017 |
Net income
(loss) attributable to the Company’s common stockholders
: |
$ |
(19,870,189 |
) |
$ |
(1,548,336 |
) |
$ |
(19,480,701 |
) |
$ |
(11,163,964 |
) |
Dividend on preferred
shares |
|
105,180 |
|
|
542,496 |
|
|
2,583,185 |
|
|
2,089,151 |
|
Interest expense and
other, net |
|
141,397 |
|
|
203,843 |
|
|
641,735 |
|
|
570,044 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes |
|
6,323,568 |
|
|
(2,391,762 |
) |
|
6,348,502 |
|
|
(2,391,762 |
) |
Changes in fair value
of warrants |
|
2,499,489 |
|
|
- |
|
|
2,760,819 |
|
|
- |
|
Depreciation and
amortization |
|
637,149 |
|
|
- |
|
|
2,903,662 |
|
|
- |
|
Impairment on goodwill
and intangible assets |
|
9,038,553 |
|
|
- |
|
|
9,038,553 |
|
|
- |
|
Earnings before
interest, tax, depreciation and amortization (EBITDA) |
$ |
(1,124,853 |
) |
$ |
(2,308,609 |
) |
$ |
4,795,755 |
|
$ |
3,217,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense |
|
361,213 |
|
|
1,910,876 |
|
|
1,251,489 |
|
|
(7,679,340 |
) |
Acquisition related
expenses |
|
95,285 |
|
|
90,949 |
|
|
333,237 |
|
|
7,078,230 |
|
Changes in
estimates |
|
200,000 |
|
|
(674,158 |
) |
|
(6,940,310 |
) |
|
481,123 |
|
Restructuring
expenses |
|
- |
|
|
306,695 |
|
|
127,100 |
|
|
(1,074,158 |
) |
Non-controlling
interest |
|
- |
|
|
(18,504 |
) |
|
- |
|
|
393,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
(468,355 |
) |
$ |
(692,751 |
) |
$ |
(432,729 |
) |
$ |
(801,078 |
) |
Ameri (NASDAQ:AMRH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Ameri (NASDAQ:AMRH)
Historical Stock Chart
From Jul 2023 to Jul 2024