Full Press Release Details
announces fourth quarter and full year
2017 financial results
- Reaffirms Financial
Target for Adjusted EBITDA Profitability during First-Half of 2018 -
- Anticipates Adjusted
EBITDA Profitability for 2018 -
Host Conference Call Today at 10:00 a.m. ET (New York) -
PRINCETON, N.J., April 2, 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
vs. Fourth Quarter 2016
"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.
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.
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.
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.
of Non-GAAP Financial Measures
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.
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.
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.
Viraj Patel, Chief Financial Officer
Investor Relations Contact:
Jody Burfening/Sanjay M. Hurry
LHA Investor Relations
- 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
| (unaudited) | ||||||||||||||||
| Three months ended December 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 ended December 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 | ) |