– Management to Host Conference Call Today at
8:30 a.m. ET (New York) –
AMERI Holdings, Inc. (NASDAQ:AMRH) (“Ameri100” or the “Company”), a
specialized SAP® cloud, digital and enterprise services company,
today reported its first quarter 2018 financial results.
First Quarter 2018 vs. First Quarter 2017
- Revenue of $11.1 million compared to $12.3 million;
- Gross profit of $2.3 million compared to $3.3 million;
- Gross margin of 21.2% compared to 26.8%;
- GAAP net (loss) of $(2.1) million compared to $(1.2)
million;
- (Loss) per share of $(0.11) compared to $(0.09); and
- Adjusted EBITDA was $(0.1) million compared to $ 0.8
million.
“We made considerable progress in the first quarter towards
returning to adjusted EBITDA profitability in the first-half of
2018 as cost reductions and productivity improvements narrowed
Adjusted EBITDA loss by approximately $600,000 from fourth quarter
2017 to first quarter 2018,” stated Brent Kelton, Chief Executive
Officer of Ameri100. “As expected, revenue and profitability
declined for the quarter as compared to the year-ago period, which
included a large project that was completed last year and
overshadowed new projects brought in during the first quarter of
this year. These new projects demonstrate execution on our strategy
to drive higher-margin solution sales and our ability to deepen the
penetration of our clients’ IT budgets and gain new clients for our
cloud services. Overall, we are seeing strong market receptivity to
our service offerings portfolio which spans the steady-growth
enterprise market and high-growth, high-margin digital and cloud
markets.
“With an improving cost structure and the full
effect of our costs rationalization initiatives supporting our goal
of restoring Adjusted EBITDA profitability in the second quarter,
we are turning our attention to driving top-line growth from an SAP
services market that is in the early stages of a required migration
to SAP S/4HAHA. As one of the few SAP-dedicated consultancies in
the marketplace, we are proactively positioning ourselves with
enterprises just starting down or are already on their migration
paths and building our collaboration with SAP to drive incremental
sales. To further embed Ameri100 with SAP, we are planning to
exhibit at Sapphire Now, SAP’s annual user conference in June where
we will also launch our unified Ameri100 brand. With a broad
solutions offering and a focus on high-growth, high demand segments
– cloud and digital – coupled with initiatives to broaden awareness
of our capabilities and closer alignment with SAP, we are well
positioned to secure our long-term success.”
Financial OutlookAmeri100
reaffirms its prior financial targets for fiscal 2018 of:
- Adjusted EBITDA profitability during the first-half of the
year;
- Year-over-year revenue growth target of 15% and adjusted EBITDA
profitability target for the full year.
Conference CallManagement will
host a conference call today, Tuesday, May 15, 2018, at 8:30 a.m.
ET (New York time) 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 Ameri100 Ameri100 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 Statements This
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 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 Follow –
AMERI HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS
| |
|
|
|
Assets |
Mar 31, 2018 |
Dec 31, 2017 |
|
Current assets: |
|
|
| Cash and
cash equivalents |
$ |
1,763,448 |
$ |
4,882,084 |
| Accounts
receivable |
|
8,457,627 |
|
8,838,453 |
| Other
current assets |
|
955,400 |
|
924,266 |
|
Total current assets |
|
11,176,475 |
|
14,644,803 |
|
Other assets: |
|
|
|
Intangible assets, net |
|
8,675,793 |
|
9,469,703 |
|
Goodwill |
|
21,898,323 |
|
21,898,323 |
| Other
assets |
|
6,172,629 |
|
6,183,799 |
|
Total other assets |
|
36,746,745 |
|
37,551,825 |
|
Total assets |
$ |
47,923,220 |
$ |
52,196,628 |
|
Liabilities |
|
|
|
Current liabilities: |
|
|
| Line of
credit |
$ |
3,264,809 |
$ |
4,053,318 |
| Accounts
payable & accrued expenses |
|
7,537,344 |
|
7,907,533 |
| Bank term
loan |
|
406,376 |
|
749,551 |
| Dividend
Payable |
|
557,417 |
|
- |
|
Consideration payable – cash |
|
3,430,659 |
|
5,509,427 |
|
Consideration payable – equity |
|
11,271,000 |
|
12,148,053 |
|
Total current liabilities |
|
26,467,605 |
|
30,367,882 |
|
Long-term Liabilities: |
|
|
|
Convertible notes |
|
1,250,000 |
|
1,250,000 |
| Bank term
loan |
|
1,028,840 |
|
1,130,563 |
|
Total long-term liabilities |
|
2,278,840 |
|
2,380,563 |
|
Total liabilities |
|
28,746,445 |
|
32,748,445 |
| |
|
|
|
Stockholders' equity: |
|
|
|
Stockholders’ equity |
|
19,176,775 |
|
19,448,183 |
|
Total liabilities and stockholders' equity |
$ |
47,923,220 |
$ |
52,196,628 |
|
|
|
|
|
|
AMERI HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
|
Three Months Ended March 31,
2018 |
|
|
Three Months Ended March 31,
2017 |
|
|
|
|
|
|
| Revenue |
$ |
11,063,010 |
|
|
|
$ |
|
12,340,927 |
|
| Cost of revenue |
|
8,720,125 |
|
|
|
|
|
9,039,577 |
|
| Gross
profit |
|
2,342,885 |
|
|
|
|
|
3,301,350 |
|
|
|
|
|
|
|
|
|
| Operating
expenses |
|
|
|
|
|
|
| Selling, general and
administration |
|
2,878,942 |
|
|
|
|
|
3,033,455 |
|
| Acquisition related
expenses |
|
10,000 |
|
|
|
|
|
209,344 |
|
| Depreciation and
amortization |
|
820,736 |
|
|
|
|
|
689,100 |
|
| Operating
expenses |
|
3,709,678 |
|
|
|
|
|
3,931,899 |
|
| Operating
(loss) |
|
(1,366,793 |
) |
|
|
|
|
(630,549 |
) |
| Interest expenses |
|
(211,159 |
) |
|
|
|
|
(90,806 |
) |
| Others, net |
|
6,199 |
|
|
|
|
|
(4,149 |
) |
| Total other
income (expenses) |
|
(204,960 |
) |
|
|
|
|
(94,955 |
) |
| (Loss) before
income taxes |
|
(1,571,753 |
) |
|
|
|
|
(725,504 |
) |
| Tax benefit /
(provision) |
|
- |
|
|
|
|
|
- |
|
| (Loss) after
income taxes |
|
(1,571,753 |
) |
|
|
|
|
(725,504 |
) |
| Net income attributable
to non-controlling interest |
|
- |
|
|
|
|
|
3,516 |
|
| Net (loss)
attributable to the Company |
|
(1,571,353 |
) |
|
|
|
|
(721,988 |
) |
| Dividend on preferred
stock |
|
(557,417 |
) |
|
|
|
|
(499,965 |
) |
| Net (loss)
attributable to common stock holders |
$ |
(2,129,170 |
) |
|
|
|
$ |
(1,221,953 |
) |
|
|
|
|
|
|
|
|
| Basic (loss) per
share |
$ |
(0.11 |
) |
|
|
$ |
|
(0.09 |
) |
| Diluted (loss) per
share |
$ |
(0.11 |
) |
|
|
$ |
|
(0.09 |
) |
|
|
|
|
|
|
|
|
| Basic weighted average
number of common shares outstanding |
|
18,654,197 |
|
|
|
|
|
14,094,536 |
|
| Diluted weighted
average number of common shares outstanding |
|
18,654,197 |
|
|
|
|
|
14,094,536 |
|
| |
|
|
|
|
|
|
|
|
|
AMERI HOLDINGS, INC.
UNAUDITED RECONCILIATION OF NET (LOSS)
ATTRIBUTABLE TO COMMON STOCK HOLDERS TO EBITDA & ADJUSTED
EBITDA
| EBITDA and
Adjusted EBITDA Calculation |
|
Three Months Ended March 31,
2018 |
|
|
Three Months Ended March 31,
2017 |
|
| |
|
|
|
|
|
|
| Net (loss)
attributable to the common stockholders: |
$ |
(2,129,170 |
) |
$ |
(1,221,953 |
) |
| Dividend on preferred
stock |
|
557,417 |
|
|
499,965 |
|
| Interest expense and
other, net |
|
204,960 |
|
|
94,955 |
|
| Depreciation and
amortization |
|
820,736 |
|
|
689,100 |
|
| Earnings before
interest, tax, depreciation and amortization (EBITDA) |
|
(546,057 |
) |
|
62,067 |
|
| Stock based
compensation expense |
|
297,814 |
|
|
566,427 |
|
| Acquisition related
expenses |
|
10,000 |
|
|
209,344 |
|
| Restructuring
expenses |
|
127,100 |
|
|
- |
|
| Non-controlling
interest |
|
- |
|
|
(3,516 |
) |
| Adjusted
(EBITDA) |
$ |
(111,143 |
) |
$ |
834,322 |
|
| |
|
|
|
|
|
|
Ameri (NASDAQ:AMRH)
Historical Stock Chart
From Oct 2024 to Nov 2024
Ameri (NASDAQ:AMRH)
Historical Stock Chart
From Nov 2023 to Nov 2024
