- Total Net Revenues Increased 24% Year-over-Year for the Fourth
Quarter and 26% for the Full Fiscal Year 2016
- GAAP Diluted EPS of $0.19 for the Fourth Quarter and $0.32 for
the Full Fiscal Year 2016
- Adjusted EBITDA of $4.1 Million for the Fourth Quarter and
$10.1 Million for the Full Fiscal Year 2016
- Company Provides Fiscal Year 2017 Guidance
- Conference Call Scheduled for
Today at 9 a.m. ET (6 a.m. PT) -
NetSol Technologies, Inc. (Nasdaq:NTWK), a global business services
and enterprise application solutions provider to the Asset Finance
and Leasing industry, today announced financial results for the
fourth quarter and fiscal year ended June 30, 2016.
Fiscal 2016 Fourth Quarter Financial
Results
Total net revenues for the fourth quarter of fiscal
2016 were $19.1 million, an increase of 24% from the prior year
period.
- Total license fees were $4.2 million, compared with $1.4
million in the prior year period.
- Total maintenance fees were $3.8 million, compared with $3.4
million in the prior year period.
- Total services revenues were $11.0 million, compared with $10.6
million in the prior year period.
Gross profit for the fourth quarter of fiscal 2016
more than doubled to $10.3 million, or 53.9% of net revenues, from
$5.0 million, or 32.2% of net revenues, in the fourth quarter of
fiscal 2015.
GAAP net income attributable to NetSol for the
fourth quarter of fiscal 2016 improved to $2.1 million, or $0.19
per diluted share, compared with a net loss of $0.7 million, or
$(0.07) per diluted share, in the fourth quarter of fiscal
2015.
Adjusted EBITDA1 for the fourth quarter of
fiscal 2016 was $4.1 million, representing Adjusted EBITDA per
diluted share of $0.38, compared with Adjusted EBITDA of $1.9
million, or Adjusted EBITDA per diluted share of $0.18, in the
fourth quarter of fiscal 2015. Beginning with the fourth quarter of
fiscal 2016, NetSol has revised its calculation of Adjusted EBITDA
to exclude the portion of Adjusted EBITDA that is attributable to
its subsidiaries that have a minority interest. The company
believes this supplemental disclosure provides additional insights
to measure the operational performance of its business.
Fiscal 2016 Full Year Financial
Results
Total net revenues for the fiscal year ended June
30, 2016 were a record $64.6 million, representing an increase of
26% from fiscal year 2015.
- Total license fees were $8.0 million, compared with $6.3
million in the prior fiscal year.
- Total maintenance fees were $13.7 million, compared with $12.6
million in the prior fiscal year.
- Total services revenues were $42.9 million, compared with $32.1
million in the prior fiscal year.
Gross profit for fiscal year 2016 increased to
$30.8 million, or 47.7% of net revenues, from $17.5 million, or
34.2% of net revenues, for fiscal year 2015.
GAAP net income attributable to NetSol for the
fiscal year ended June 30, 2016 improved to $3.4 million, or $0.32
per diluted share, compared with a net loss of $5.5 million, or
$(0.57) per diluted share, for fiscal year 2015.
Adjusted EBITDA for the fiscal year ended June 30,
2016 more than tripled to $10.1 million, representing Adjusted
EBITDA per diluted share of $0.96, from $3.3 million, or Adjusted
EBITDA per diluted share of $0.34, for fiscal year 2015.
At June 30, 2016, cash and cash equivalents were
$11.6 million, compared with $14.2 million at June 30, 2015.
The company purchased 1,374,000 shares of NetSol PK
common stock for $767,397 during the fiscal year ended June 30,
2016, resulting in an increase in ownership to 67%.
Management Commentary
“We ended fiscal year 2016 on a high note,
generating record revenue for the fourth quarter and full-year and
exceeding our guidance for both revenue and Adjusted EBITDA. Our
results demonstrate solid demand for our solutions and the
continued execution of our growth strategy,” said Najeeb Ghauri,
CEO of NetSol. “Looking to fiscal 2017, we see meaningful
opportunity to continue to grow and scale our client base, and will
continue to make additional investments across our business to
expand our share in all our markets.”
Naeem Ghauri, President and Head of Global Sales,
said, “Continued strong demand in the market, and the investments
we have made in our solutions, our services capabilities and in our
global team, have contributed to solid growth in our pipeline of
new business opportunities compared to the prior year. The momentum
we are seeing in our pipeline across all our markets, combined with
our current backlog of business including the $100 million-plus NFS
Ascent implementation, gives us confidence in our growth prospects
for fiscal 2017.”
Fiscal 2017 Financial Outlook
The Company’s financial outlook for the fiscal year
ending June 30, 2017 is as follows:
- Total net revenues of $73 to $75 million for fiscal
2017.
- Non-GAAP Adjusted EBITDA, net, of $13 to $14 million for fiscal
2017.
Fiscal 2016 Fourth Quarter Conference
Call
|
|
|
|
|
When: |
|
|
|
Thursday September 15,
2016 |
Time: |
|
|
|
9:00 a.m.
Eastern Time |
Phone: |
|
|
|
1-844-868-9327
(domestic) |
|
|
|
|
1-412-317-6595
(international) |
Note: |
|
|
|
Once connected, please ask to be
joined into the NetSol Technologies call. |
|
|
|
|
|
A replay will be available one hour after the end
of the conference call and can be accessed by dialing
1-877-344-7529 (domestic) or 1-412-317-0088 (international); the
replay access code is 10091540. The replay will be available
through Thursday, September 22, 2016.
A live webcast will be available online within the
investor relations section of NetSol’s website at
http://www.netsoltech.com. A replay of the webcast will be
available one hour following conclusion of the live call, and will
be archived for one year.
1 The reconciliation of Adjusted EBITDA to net
income, the most comparable financial measure based upon GAAP, as
well as a further explanation of adjusted EBITDA, is included in
the financial tables in Schedule 4 of this press release.
About NetSol Technologies
NetSol Technologies, Inc. (Nasdaq:NTWK) is a
worldwide provider of IT and enterprise software solutions
primarily serving the global leasing and financing industry. The
Company’s suite of applications are backed by 40 years of domain
expertise and supported by a committed team of 1,500+ professionals
placed in eight strategically located support and delivery centers
throughout the world. NFSTM, LeasePakTM, LeaseSoft or NFS AscentTM
– help companies transform their Finance and Leasing operations,
providing a fully automated asset-based finance solution covering
the complete leasing and finance lifecycle.
Investors can receive news releases and invitations
to special events by accessing our online signup form at
http://ir.netsoltech.com/email-alerts.
Forward-Looking Statements
Certain statements in this press release are
forward-looking in nature, including, but not limited to, expected
net revenue and adjusted EPS amounts for the full fiscal year and
the growing market need for NFS Ascent, and accordingly, are
subject to certain risks and uncertainties that could cause actual
results to differ materially from those projected. The words
“expects,” “anticipates,” variations of such words, and similar
expressions, identify forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, but their
absence does not mean that the statement is not forward-looking.
These statements are not guarantees of future performance and are
subject to certain risks, uncertainties, and assumptions that are
difficult to predict. Factors that could affect the Company's
actual results include the progress and costs of the development of
products and services and the timing of the market acceptance. The
subject Companies expressly disclaim any obligation or undertaking
to update or revise any forward-looking statement contained herein
to reflect any change in the company's expectations with regard
thereto or any change in events, conditions or circumstances upon
which any statement is based.
Investor Contact
ICRWilliam Maina(646)
277-1236investors@netsoltech.com
NetSol Technologies, Inc. and
Subsidiaries |
Schedule 1: Consolidated Balance
Sheets |
|
|
|
|
As of June 30, |
|
As of June 30, |
|
ASSETS |
|
2016 |
|
|
|
2015 |
|
Current assets: |
|
|
|
|
Cash and cash
equivalents |
$ |
11,557,527 |
|
|
$ |
14,168,957 |
|
|
Accounts receivable,
net of allowance of $492,498 and $524,565 |
|
9,691,229 |
|
|
|
6,480,344 |
|
|
Accounts receivable,
net - related party |
|
5,691,178 |
|
|
|
3,491,899 |
|
|
Revenues in excess of
billings |
|
10,493,096 |
|
|
|
5,251,005 |
|
|
Revenues in excess of
billings - related party |
|
804,168 |
|
|
|
16,270 |
|
|
Other current
assets |
|
2,214,628 |
|
|
|
1,871,040 |
|
|
|
Total current assets |
|
40,451,826 |
|
|
|
31,279,515 |
|
Long term investment |
|
|
|
|
|
Restricted
cash |
|
90,000 |
|
|
|
90,000 |
|
Property
and equipment, net |
|
22,774,435 |
|
|
|
25,119,634 |
|
Other
assets |
|
842,553 |
|
|
|
141,150 |
|
Intangible
assets, net |
|
19,674,033 |
|
|
|
22,815,467 |
|
Goodwill |
|
9,516,568 |
|
|
|
9,516,568 |
|
|
|
Total assets |
$ |
93,349,415 |
|
|
$ |
88,962,334 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable and
accrued expenses |
$ |
5,962,770 |
|
|
$ |
5,952,561 |
|
|
Current portion of
loans and obligations under capitalized leases |
|
4,440,084 |
|
|
|
3,896,353 |
|
|
Unearned revenues |
|
4,739,214 |
|
|
|
4,897,327 |
|
|
Common stock to be
issued |
|
88,324 |
|
|
|
88,324 |
|
|
|
Total current liabilities |
|
15,230,392 |
|
|
|
14,834,565 |
|
Long term loans and obligations under capitalized
leases; less current maturities |
|
477,692 |
|
|
|
487,492 |
|
|
|
Total
liabilities |
|
15,708,084 |
|
|
|
15,322,057 |
|
Commitments and contingencies |
|
|
|
Stockholders' equity: |
|
|
|
|
Preferred stock, $.01
par value; 500,000 shares authorized; |
|
- |
|
|
|
- |
|
|
Common stock, $.01 par
value; 14,500,000 shares authorized; |
|
|
|
|
|
10,713,372 shares issued and
10,686,093 outstanding as of June 30, 2016 and |
|
|
|
|
|
10,307,826 shares issued and
10,280,547 outstanding as of June 30, 2015 |
|
107,134 |
|
|
|
103,078 |
|
|
Additional
paid-in-capital |
|
121,448,946 |
|
|
|
119,209,807 |
|
|
Treasury stock (27,279
shares) |
|
(415,425 |
) |
|
|
(415,425 |
) |
|
Accumulated
deficit |
|
(37,323,360 |
) |
|
|
(40,726,121 |
) |
|
Stock subscription
receivable |
|
(783,172 |
) |
|
|
(1,204,603 |
) |
|
Other comprehensive
loss |
|
(18,730,494 |
) |
|
|
(17,167,100 |
) |
|
|
Total NetSol stockholders'
equity |
|
64,303,629 |
|
|
|
59,799,636 |
|
|
Non-controlling
interest |
|
13,337,702 |
|
|
|
13,840,641 |
|
|
|
Total stockholders'
equity |
|
77,641,331 |
|
|
|
73,640,277 |
|
|
|
Total liabilities and
stockholders' equity |
$ |
93,349,415 |
|
|
$ |
88,962,334 |
|
|
|
|
|
|
|
NetSol Technologies, Inc. and
Subsidiaries |
Schedule 2: Consolidated Statement of
Operations |
|
|
|
|
For the Three Months |
For the Year |
|
|
|
Ended June 30, |
|
Ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Net
Revenues: |
|
|
|
|
|
|
|
|
|
|
License
fees |
$ |
3,090,927 |
|
|
$ |
1,428,520 |
|
|
$ |
6,352,441 |
|
|
$ |
6,328,989 |
|
|
Maintenance
fees |
|
3,669,355 |
|
|
|
3,232,833 |
|
|
|
13,310,591 |
|
|
|
12,196,073 |
|
|
Services |
|
7,800,762 |
|
|
|
8,177,176 |
|
|
|
32,288,229 |
|
|
|
24,827,822 |
|
|
License
fees - related party |
|
1,131,494 |
|
|
|
- |
|
|
|
1,616,138 |
|
|
|
- |
|
|
Maintenance
fees - related party |
|
147,363 |
|
|
|
158,428 |
|
|
|
365,772 |
|
|
|
395,951 |
|
|
Services -
related party |
|
3,239,592 |
|
|
|
2,397,951 |
|
|
|
10,617,022 |
|
|
|
7,299,743 |
|
|
|
Total net revenues |
|
19,079,493 |
|
|
|
15,394,908 |
|
|
|
64,550,193 |
|
|
|
51,048,578 |
|
|
|
|
|
|
|
|
|
|
Cost of revenues: |
|
|
|
|
|
|
|
Salaries
and consultants |
|
5,853,138 |
|
|
|
6,117,504 |
|
|
|
21,789,329 |
|
|
|
19,859,684 |
|
|
Travel |
|
554,885 |
|
|
|
602,575 |
|
|
|
2,334,019 |
|
|
|
2,374,864 |
|
|
Depreciation and amortization |
|
1,507,573 |
|
|
|
2,822,045 |
|
|
|
5,926,969 |
|
|
|
8,336,857 |
|
|
Other |
|
875,943 |
|
|
|
890,461 |
|
|
|
3,698,290 |
|
|
|
3,020,107 |
|
|
|
Total cost of
revenues |
|
8,791,539 |
|
|
|
10,432,585 |
|
|
|
33,748,607 |
|
|
|
33,591,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
10,287,954 |
|
|
|
4,962,323 |
|
|
|
30,801,586 |
|
|
|
17,457,066 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Selling and
marketing |
|
2,226,227 |
|
|
|
1,673,064 |
|
|
|
7,823,916 |
|
|
|
6,092,530 |
|
|
Depreciation and amortization |
|
327,152 |
|
|
|
437,054 |
|
|
|
1,225,170 |
|
|
|
2,006,957 |
|
|
General and
administrative |
|
4,573,172 |
|
|
|
3,055,345 |
|
|
|
14,965,016 |
|
|
|
14,208,493 |
|
|
Research
and development cost |
|
123,666 |
|
|
|
84,152 |
|
|
|
485,783 |
|
|
|
314,892 |
|
|
|
Total operating
expenses |
|
7,250,217 |
|
|
|
5,249,615 |
|
|
|
24,499,885 |
|
|
|
22,622,872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
3,037,737 |
|
|
|
(287,292 |
) |
|
|
6,301,701 |
|
|
|
(5,165,806 |
) |
|
|
|
|
|
|
|
|
|
Other income and (expenses) |
|
|
|
|
|
|
|
Gain (loss)
on sale of assets |
|
23,288 |
|
|
|
9,501 |
|
|
|
23,930 |
|
|
|
(64,598 |
) |
|
Interest
expense |
|
(68,112 |
) |
|
|
(1,370 |
) |
|
|
(264,511 |
) |
|
|
(166,962 |
) |
|
Interest
income |
|
44,710 |
|
|
|
70,341 |
|
|
|
161,794 |
|
|
|
331,432 |
|
|
Loss on
foreign currency exchange transactions |
|
(502,867 |
) |
|
|
135,937 |
|
|
|
(738,158 |
) |
|
|
(453,770 |
) |
|
Other
income |
|
24,675 |
|
|
|
58,380 |
|
|
|
224,931 |
|
|
|
684,030 |
|
|
|
Total other income
(expenses) |
|
(478,306 |
) |
|
|
272,789 |
|
|
|
(592,014 |
) |
|
|
330,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) before income
taxes |
|
2,559,431 |
|
|
|
(14,503 |
) |
|
|
5,709,687 |
|
|
|
(4,835,674 |
) |
Income tax provision |
|
(197,839 |
) |
|
|
(178,341 |
) |
|
|
(652,546 |
) |
|
|
(413,498 |
) |
Net
income (loss) |
|
2,361,592 |
|
|
|
(192,844 |
) |
|
|
5,057,141 |
|
|
|
(5,249,172 |
) |
|
Non-controlling interest |
|
(272,347 |
) |
|
|
(514,534 |
) |
|
|
(1,654,380 |
) |
|
|
(299,646 |
) |
Net
income (loss) attributable to NetSol |
$ |
2,089,245 |
|
|
$ |
(707,378 |
) |
|
$ |
3,402,761 |
|
|
$ |
(5,548,818 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss per share: |
|
|
|
|
|
|
|
Net income
(loss) per common share |
|
|
|
|
|
|
|
|
Basic |
$ |
0.20 |
|
|
$ |
(0.07 |
) |
|
$ |
0.33 |
|
|
$ |
(0.57 |
) |
|
|
Diluted |
$ |
0.19 |
|
|
$ |
(0.07 |
) |
|
$ |
0.32 |
|
|
$ |
(0.57 |
) |
|
|
|
|
|
|
|
|
|
Weighted
average number of shares outstanding |
|
|
|
|
|
|
|
Basic |
|
10,549,563 |
|
|
|
10,194,180 |
|
|
|
10,391,157 |
|
|
|
9,728,122 |
|
|
Diluted |
|
10,743,241 |
|
|
|
10,194,180 |
|
|
|
10,584,835 |
|
|
|
9,728,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NetSol Technologies, Inc. and
Subsidiaries |
Schedule 3: Consolidated Statement of Cash
Flows |
|
|
|
|
|
For the Year |
|
|
|
|
Ended June 30, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
Cash flows from operating
activities: |
|
|
|
|
Net income (loss) |
$ |
5,057,141 |
|
|
$ |
(5,249,172 |
) |
|
Adjustments to
reconcile net income (loss) |
|
|
|
|
to net cash provided by
operating activities: |
|
|
|
|
Depreciation and
amortization |
|
7,152,139 |
|
|
|
10,343,814 |
|
|
Provision for bad
debts |
|
237,703 |
|
|
|
(434,928 |
) |
|
(Gain) loss on sale of
assets |
|
(23,930 |
) |
|
|
64,598 |
|
|
Stock issued for
services |
|
1,264,618 |
|
|
|
1,375,149 |
|
|
Fair market value of
warrants and stock options granted |
|
268,591 |
|
|
|
622,488 |
|
|
Changes in
operating assets and
liabilities: |
|
|
|
|
Accounts
receivable |
|
(3,758,422 |
) |
|
|
(871,959 |
) |
|
Accounts receivable -
related party |
|
(2,564,819 |
) |
|
|
(1,179,931 |
) |
|
Revenues in excess of
billing |
|
(4,987,772 |
) |
|
|
(2,997,449 |
) |
|
Revenues in excess of
billing - related party |
|
(884,738 |
) |
|
|
(16,281 |
) |
|
Other current
assets |
|
(729,359 |
) |
|
|
580,618 |
|
|
Accounts payable and
accrued expenses |
|
558,033 |
|
|
|
726,700 |
|
|
Unearned revenue |
|
69,851 |
|
|
|
2,114,635 |
|
|
Net cash
provided by operating
activities |
|
1,659,036 |
|
|
|
5,078,282 |
|
|
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
Purchases of property
and equipment |
|
(3,335,921 |
) |
|
|
(3,558,712 |
) |
|
Sales of property and
equipment |
|
986,433 |
|
|
|
1,102,615 |
|
|
Investment |
|
(555,556 |
) |
|
|
- |
|
|
Purchase of subsidiary
shares from open market |
|
(767,397 |
) |
|
|
(577,222 |
) |
|
Net cash used
in investing activities |
|
(3,672,441 |
) |
|
|
(3,033,319 |
) |
|
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
Proceeds from sale of
common stock |
|
64,931 |
|
|
|
2,294,599 |
|
|
Proceeds from the
exercise of stock options and warrants |
|
1,137,480 |
|
|
|
191,400 |
|
|
Proceeds from exercise of
subsidiary options |
|
|
|
16,744 |
|
|
|
12,185 |
|
|
Restricted cash |
|
- |
|
|
|
2,438,844 |
|
|
Dividend paid by
subsidiary to Non controlling interest |
|
(1,003,853 |
) |
|
|
(806,937 |
) |
|
Proceeds from bank
loans |
|
1,333,406 |
|
|
|
1,410,313 |
|
|
Payments on capital
lease obligations and loans - net |
|
(950,529 |
) |
|
|
(4,079,174 |
) |
|
Net cash
provided by financing
activities |
|
598,179 |
|
|
|
1,461,230 |
|
Effect of exchange rate
changes |
|
(1,196,204 |
) |
|
|
(799,931 |
) |
Net
increase (decrease) in cash and cash
equivalents |
|
(2,611,430 |
) |
|
|
2,706,262 |
|
Cash and
cash equivalents, beginning of the period |
|
14,168,957 |
|
|
|
11,462,695 |
|
Cash and cash equivalents, end of
period |
$ |
11,557,527 |
|
|
$ |
14,168,957 |
|
|
|
|
|
|
|
|
NetSol Technologies, Inc. and
Subsidiaries |
Schedule 4: Reconciliation to
GAAP |
|
|
Three Months |
|
Three Months |
|
Year |
|
Year |
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
|
|
|
|
|
|
|
|
Net Income (loss)
before preferred dividend, per GAAP |
$ |
2,089,245 |
|
|
$ |
(707,378 |
) |
|
$ |
3,402,761 |
|
|
$ |
(5,548,818 |
) |
Non-controlling interest |
|
272,347 |
|
|
|
514,534 |
|
|
|
1,654,380 |
|
|
|
299,646 |
|
Income taxes |
|
197,839 |
|
|
|
178,341 |
|
|
|
652,546 |
|
|
|
413,498 |
|
Depreciation and amortization |
|
1,834,725 |
|
|
|
3,259,099 |
|
|
|
7,152,139 |
|
|
|
10,343,814 |
|
Interest expense |
|
68,112 |
|
|
|
1,370 |
|
|
|
264,511 |
|
|
|
166,962 |
|
Interest (income) |
|
(44,710 |
) |
|
|
(70,341 |
) |
|
|
(161,794 |
) |
|
|
(331,432 |
) |
EBITDA |
$ |
4,417,558 |
|
|
$ |
3,175,625 |
|
|
$ |
12,964,543 |
|
|
$ |
5,343,670 |
|
Add back: |
|
|
|
|
|
|
|
Non-cash stock-based
compensation |
|
692,800 |
|
|
|
411,050 |
|
|
|
1,533,209 |
|
|
|
1,997,637 |
|
Adjusted EBITDA,
gross |
$ |
5,110,358 |
|
|
$ |
3,586,675 |
|
|
$ |
14,497,752 |
|
|
$ |
7,341,307 |
|
Less non-controlling
interest (a) |
|
(1,007,875 |
) |
|
|
(1,721,389 |
) |
|
|
(4,356,858 |
) |
|
|
(4,008,592 |
) |
Adjusted EBITDA,
net |
$ |
4,102,483 |
|
|
$ |
1,865,286 |
|
|
$ |
10,140,894 |
|
|
$ |
3,332,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average number
of shares outstanding |
|
|
|
|
|
|
|
Basic |
|
10,549,563 |
|
|
|
10,194,180 |
|
|
|
10,391,157 |
|
|
|
9,728,122 |
|
Diluted |
|
10,743,241 |
|
|
|
10,233,625 |
|
|
|
10,584,835 |
|
|
|
9,767,657 |
|
|
|
|
|
|
|
|
|
Basic adjusted
EBITDA |
$ |
0.39 |
|
|
$ |
0.18 |
|
|
$ |
0.98 |
|
|
$ |
0.34 |
|
Diluted adjusted
EBITDA |
$ |
0.38 |
|
|
$ |
0.18 |
|
|
$ |
0.96 |
|
|
$ |
0.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)The reconciliation
of adjusted EBITDA of non-controlling interest |
|
|
|
|
|
|
|
to net income
attributable to non-controlling interest is as follows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (loss)
applicable to non-controlling interest |
$ |
272,347 |
|
|
$ |
514,534 |
|
|
$ |
1,654,380 |
|
|
$ |
299,646 |
|
Income Taxes |
|
69,751 |
|
|
|
104,339 |
|
|
|
146,450 |
|
|
|
178,689 |
|
Depreciation and amortization |
|
600,763 |
|
|
|
1,095,632 |
|
|
|
2,388,098 |
|
|
|
3,442,235 |
|
Interest expense |
|
21,732 |
|
|
|
10,274 |
|
|
|
81,189 |
|
|
|
51,023 |
|
Interest (income) |
|
(7,901 |
) |
|
|
(15,526 |
) |
|
|
(41,565 |
) |
|
|
(98,638 |
) |
EBITDA |
$ |
956,692 |
|
|
$ |
1,709,253 |
|
|
$ |
4,228,552 |
|
|
$ |
3,872,955 |
|
Add back: |
|
|
|
|
|
|
|
Non-cash stock-based
compensation |
|
51,183 |
|
|
|
12,136 |
|
|
|
128,306 |
|
|
|
135,637 |
|
Adjusted EBITDA of
non-controlling interest |
$ |
1,007,875 |
|
|
$ |
1,721,389 |
|
|
$ |
4,356,858 |
|
|
$ |
4,008,592 |
|
|
|
|
|
|
|
|
|
From time to time, NetSol may refer to Adjusted
EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization
and Stock-based Compensation) and “non-GAAP adjusted EBITDA per
diluted share or Adjusted EBITDA per diluted share” in its
conference calls and discussions with investors and analysts in
connection with the company’s reported historical financial
results. Adjusted EBITDA does not represent cash flows from
operations as defined by generally accepted accounting principles
(“GAAP”), is not derived in accordance with GAAP and should not be
considered by the reader as an alternative to net income (the most
comparable GAAP financial measure to Adjusted EBITDA).
Non-GAAP adjusted EBITDA per diluted share or Adjusted EBITDA per
diluted share is not derived in accordance with GAAP and should not
be considered by the reader as an alternative to reported GAAP
diluted EPS. The reconciliation of GAAP and non-GAAP
financial measures for the three and twelve month periods ended
June 30, 2016 and 2015 are included in the above table.
NetSol’s management believes that Adjusted EBITDA and Adjusted
EBITDA per diluted share are helpful as an indicator of the current
financial performance of the company. NetSol also adjusts for
non-cash items, such as stock-based compensation as we believe
excluding these costs provide a useful metric by which to compare
performance from period to period. Management strongly encourages
investors to review the company’s consolidated financial statements
in their entirety and to not rely on any single financial measure
in evaluating the company.
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