Full Press Release Details
Holdings, Inc. Reports Financial Results for the Third
Quarter and Nine Months ended September 30, 2016
N.J., Nov. 14, 2016 /PRNewswire/ -- AMERI Holdings, Inc. ("Ameri100" or the "Company")
(OTCQB: AMRH), today reported its financial results for the third quarter and nine months ended September 30, 2016.
revenues for the third quarter of 2016 were $10.1 million, an increase of 125 percent compared to revenues of $4.5 million
in the third quarter of 2015.
revenues for the nine months ended September 30, 2016 were $23.8 million, an increase of 87 percent compared to
revenues of $12.7 million for the first nine months of 2015.
loss for the third quarter of 2016 was $1.7 million, or $0.13 of net loss per diluted share, compared to net loss
of $0.16 million, or $0.02 per diluted share, in the third quarter of 2015.
loss for the nine months ended September 30, 2016 was $4.08 million, or $0.32 per diluted share, compared
to net income of $1.0 million, or $0.10 per diluted share, in the same period in the prior year.
EBITDA for the 2016 third quarter was $735,501, compared to $(57,479) for the third quarter of 2015.
EBITDA for the nine months ended September 30, 2016 was $89,483, compared to $1.5 million in the same
period in 2015. A reconciliation of adjusted net income and adjusted EBITDA is provided later in this press release.
for the third quarter of 2016 was $(782,311), compared to $(306,390) in the prior year third quarter.
for the nine months ended September 30, 2016 was $(2.5) million, compared to $966,580 in the same period
and CEO, Giri Devanur, said, "We are pleased with our results this quarter, and the performance of all our businesses.
With the acquisition of DC&M Partners, LLC, Ameri100 Virtuoso Inc. (formerly Virtuoso Consulting Services) and BigTech Software
Private Ltd., the depth of our SAP skills is greatly enhanced. DC&M and Virtuoso are leaders in high end SAP consulting with
marquee customers across the United States. BigTech is an India-based offshore services delivery company which is adding significant
value to our customer offerings. We are also excited that we have a healthy acquisition pipeline which will help us to add accretive
acquisitions in the coming year."
Devanur continued, "We have started the post-merger integration process across all these acquired companies. We are confident
that in the next two to three quarters they will be fully integrated and enhance our delivery capability to our customers. With
these acquisitions, we now have over 70 active global customers with enough room to grow organically. Additionally, with these
acquisitions we also have access to more than 200 customers who have been served by these acquired companies, and thus creating
a pipeline for future revenue growth."
Chief Financial Officer, Edward O'Donnell, stated, "We are also pleased with our revenue growth and our move into
positive adjusted EBITDA on a quarterly and year-to-date basis. We are excited about our new banking relationship with Sterling
National Bank. We believe Sterling is a valuable partner that can work with us as we grow our business in the future."
Company reaffirms its previously announced fiscal year 2016 financial guidance of revenues between $35 million and $40
million. Through both organic growth and strategic acquisitions, the Company expects to achieve a revenue run-rate of $100 million
of Non-GAAP Financial Measures by Ameri100 Corporation
release presents the non-GAAP financial measures "EBITDA" and "adjusted EBITDA". The most directly comparable
measure for these non-GAAP financial measures are net income and income/loss from operations. The Company has included below unaudited
adjusted financial information, which presents the Company's results of operations after excluding acquired intangible asset amortization,
acquisition related contingent consideration adjustments, investment impairment loss, transaction and integration costs and non-recurring
related income tax adjustments. Further excluded in the measure of adjusted EBITDA are interest, taxes, depreciation, amortization
and stock-based compensation.
discussion of the reasons why management believes that the presentation of non-GAAP financial measures provides useful information
to investors regarding Ameri100's financial condition and results of operations is included as Exhibit 99.2 to Ameri100's report
on Form 8-K filed with the Securities and Exchange Commission on November 14, 2016.
AMERI Holdings, Inc.
Holdings, Inc. is a SAP-based strategy consulting firm that brings synergies of classic consulting and product-based consulting
services to its customer base. Headquartered in Princeton, New Jersey with offices in New York, Atlanta, Dallas,
Phoenix, Kansas and Toronto, as well as offshore centres in Bangalore, Mumbai and Chennai India, the Company
is a global leader in consulting and technology solutions. Ameri100 is a Lean Enterprise Architecture Partner (LEAP), enabling
clients to outperform the competition and stay ahead of the innovation curve. The Company leverages a global partner ecosystem
that has deep knowledge and skills to build and implement great ideas that drive progress for clients and enhance their businesses
through innovative solutions. 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.
100 Canal Pointe Blvd, Suite 108
Phone: (732) 243-9250
100 Canal Pointe Blvd, Suite 108
Phone: (732) 243-9250
Email: ted@ameri100.com
AMERI HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE
| September 30, 2016 | December 31, 2015 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 2,913,834 | $ | 1,878,034 | ||||
| Accounts receivable | 7,724,860 | 4,872,082 | ||||||
| Investments | - | 82,908 | ||||||
| Other current assets | 629,640 | 343,809 | ||||||
| Total current assets | 11,268,334 | 7,176,833 | ||||||
| Other assets | ||||||||
| Property and equipment, net | 115,355 | 73,066 | ||||||
| Intangible assets, net | 9,359,571 | 3,114,513 | ||||||
| Acquired goodwill | 17,379,031 | 3,470,522 | ||||||
| Total other assets | 26,853,957 | 6,658,101 | ||||||
| Total assets | $ | 38,122,291 | $ | 13,834,934 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 4,906,959 | $ | 2,597,385 | ||||
| Other accrued expenses | 1,345,561 | 1,093,814 | ||||||
| Consideration payable | 3,225,093 | 3,649,267 | ||||||
| Short-term notes | 4,137,143 | 1,235,935 | ||||||
| Total current liabilities | 13,614,756 | 8,576,401 | ||||||
| Long-term liabilities | ||||||||
| Convertible notes | 5,000,000 | 5,000,000 | ||||||
| Long-term notes | 1,566,671 | - | ||||||
| Long-term consideration payable | 13,188,260 | - | ||||||
| Total long-term liabilities | 19,754,931 | 5,000,000 | ||||||
| Total liabilities | 33,369,687 | 13,576,401 | ||||||
| Stockholders' equity | ||||||||
| Preferred stock, $0.01 par value; 1,000,000 authorized, none issued and outstanding | - | - | ||||||
| Common stock, $0.01 par value; 100,000,000 shares authorized, 13,885,972 and 11,639,066 issued and outstanding as of September 30, 2016 and December 31, 2015, respectively | 138,861 | 118,743 | ||||||
| Additional paid-in capital | 10,042,992 | 1,192,692 | ||||||
| Accumulated other comprehensive income (loss) | (287,722 | ) | - | |||||
| Accumulated deficit | (5,141,527 | ) | (1,052,902 | ) | ||||
| Total stockholders' equity | 4,752,604 | 258,533 | ||||||
| Total liabilities and stockholders' equity | $ | 38,122,291 | $ | 13,834,934 |
AMERI HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
| Three Months Ended September 30, 2016 | Three Months Ended September 30, 2015 | Nine Months Ended September 30, 2016 | Nine Months Ended September 30, 2015 | |||||||||||||
| Net revenue | $ | 10,058,558 | $ | 4,463,125 | $ | 23,758,460 | $ | 12,678,813 | ||||||||
| Cost of services | 8,361,960 | 3,023,208 | 19,288,805 | 9,137,563 | ||||||||||||
| Gross profit | 1,696,598 | 1,439,917 | 4,469,655 | 3,541,250 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling and marketing | 137,024 | - | 401,487 | - | ||||||||||||
| General and administration | 1,326,327 | 1,497,396 | 4,924,644 | 2,020,835 | ||||||||||||
| Nonrecurring expenditures | 1,015,558 | 248,911 | 1,630,778 | 553,835 | ||||||||||||
| Depreciation and amortization | 509,376 | 9,375 | 722,390 | 25,690 | ||||||||||||
| Operating expenses | 2,988,285 | 1,755,682 | 7,679,299 | 2,600,360 | ||||||||||||
| Operating income (loss) | (1,291,687 | ) | (315,765 | ) | (3,209,644 | ) | 940,890 | |||||||||
| Interest expense | (290,423 | ) | (62,113 | ) | (674,683 | ) | (87,655 | ) | ||||||||
| Interest income/other income | 2,205 | 54 | 44 | 82 | ||||||||||||
| Other expense/loss | (197,723 | ) | - | (197,723 | ) | - | ||||||||||
| Income before income taxes | (1,777,628 | ) | (377,824 | ) | (4,082,006 | ) | 853,317 | |||||||||
| Tax benefit / (provision) | - | 128,460 | - | 84,971 | ||||||||||||
| Foreign exchange translation | 59,079 | 89,818 | (6,619 | ) | 89,818 | |||||||||||
| Net income (loss) | $ | (1,718,549 | ) | $ | (159,546 | ) | $ | (4,088,625 | ) | $ | 1,028,106 | |||||
| Net and comprehensive income (loss) for the period | $ | (1,718,549 | ) | $ | (159,546 | ) | $ | (4,088,625 | ) | $ | 1,028,106 | |||||
| Basic income (loss) per share | $ | (0.13 | ) | $ | (0.02 | ) | $ | (0.32 | ) | $ | 0.10 | |||||
| Diluted income (loss) per share | $ | (0.13 | ) | $ | (0.02 | ) | $ | (0.32 | ) | $ | 0.10 | |||||
| Basic weighted average number of shares | 13,653,586 | 9,992,828 | 12,794,149 | 9,992,828 | ||||||||||||
| Diluted weighted average number of shares | 13,653,586 | 9,992,828 | 12,794,149 | 9,992,828 |
OF NET INCOME/(LOSS) TO EBITDA & ADJUSTED EBITDA
| 9 months ended September 30, 2016 | 3 months ended September 30, 2016 | |||||||
| Net Income (Loss) | $ | (4,088,625 | ) | $ | (1,718,549 | ) | ||
| Tax benefit/(provision) | ||||||||
| Foreign currency translation adjustment | (6,619 | ) | 59,079 | |||||
| Other Expense/loss | (197,723 | ) | (197,723 | ) | ||||
| Other Income | - | 2,414 | ||||||
| Interest income | 44 | (209 | ) | |||||
| Interest expense | (674,683 | ) | (290,423 | ) | ||||
| Income from operations | (3,209,644 | ) | (1,291,687 | ) | ||||
| Depreciation and amortization | 722,390 | 509,376 | ||||||
| EBITDA | (2,487,254 | ) | (782,311 | ) | ||||
| Nonrecurring expenditures | 1,630,778 | 1,015,558 | ||||||
| Stock based expense | 945,959 | 502,254 | ||||||
| Adjusted EBITDA | $ | 89,483 | $ | 735,501 |