AMERI Holdings Announces Financial Results for Q2 2017

AMERI Holdings Announces Financial Results for Q2 2017

Ameri Holdings continues to streamline and integrate acquired businesses to align with its cloud, digital and

enterprise SAP services, specifically focusing on SAP’s futuristic technology investments

PRINCETON, N.J., August 18TH, 2017 /PRNewswire/ -- AMERI Holdings, Inc. ("Ameri100" or the "Company") (OTCQB: AMRH), a leading integrated SAP solutions provider, reported financial results for the first quarter ended June 30, 2017.

Ameri100’s Financial Results - Second Quarter 2017 vs. Second Quarter 2016:

  • Total revenue was $12.3 million in the second quarter of 2017 (“Q2 2017”), compared to $6.7 million in the second quarter of 2016 (“Q2 2016”);
  • Gross profit was $2.3 million, or 19% of total revenue, in Q2 2017, compared to $1.5 million, or 23% of total revenue, in Q2 2016;
  • Comprehensive loss was $3.8 million, or ($0.26) per diluted share, in Q2 2017, compared to a net loss of $1.2 million, or ($0.09) per diluted share, in Q2 2016;
  • Adjusted EBITDA (a non-GAAP financial measure) was $(602,929) or (4.9%) of total revenue, in Q2 2017, compared to Adjusted EBITDA of ($253,412) or (3.8%) of total revenue, in Q2 2016.

Ameri100’s Financial Results – Six Months Ended June 30, 2017 vs. Six Months Ended June 30, 2016:

  • Total revenue was $24.6 million for the six months ended June 30, 2017 (the “Six months of 2017”), compared to $13.7 million for the six months ended June 30, 2016 (the “Six months of 2016”);
  • Gross profit was $5.6 million, or 23% of total revenue, in the Six months of 2017, compared to $2.8 million, or 20% of total revenue, in the Six months of 2016;
  • Comprehensive loss was $5.0 million, or ($0.35) per diluted share, in the Six months of 2017, compared to a comprehensive loss of $2.4 million, or ($0.19) per diluted share, in the Six months of 2016;
  • Adjusted EBITDA (a non-GAAP financial measure) was $231,393 or 0.9% of total revenue, in the Six months of 2017, compared to Adjusted EBITDA of ($646,018) or (4.7%) of total revenue, in the Six months of 2016.

Ameri100 focused on streamlining and aligning its business to the fast-changing constructs of the SAP services market in Q2 2017. The Company is now a comprehensive SAP services company, and the alignments were largely centered around cloud, digital and enterprise SAP services, with a clear focus on SAP’s strategic opportunities for the future – S4/HANA and Leonardo. “The Company will continue to focus on building capabilities in cloud, digital and enterprise SAP services both organically and through acquisitions,” said Giri Devanur, the Company’s President and Chief Executive Officer.

Ernst & Young named Giri Devanur as the Entrepreneur Of The Year® 2017 in the technology category in New Jersey. The award recognizes entrepreneurs who excel in areas such as innovation, financial performance and personal commitment to their businesses and communities. Mr. Devanur was selected by an independent panel of judges.

About Ameri100

AMERI Holdings, Inc. is a fast-growing technology services company which provides cloud, digital and enterprise SAP services to clients worldwide. Headquartered in Princeton, New Jersey Ameri100 has offices in the U.S. and Canada. The Company 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.

Investor and Media Contact:
Viraj Patel
100 Canal Pointe Blvd, Suite 108
Princeton, NJ 08540
Phone: (732) 243-9250
Email:investorrelation@ameri100.com

AMERI HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS




June 30,

2017


December 31,

2016

Assets

Current assets:





Cash and cash equivalents


$

1,041,133


$

1,379,887

Accounts receivable



8,720,203



8,059,910

Investments and other current assets



990,409



625,145

Total current assets



12,352,459



10,064,942








Other assets:







Goodwill and intangible assets, net



32,944,602



25,853,780

Other Assets



3,596,493



3,589,201

Total other assets



36,541,095



29,442,981

Total assets


$

47,292,840


$

39,507,923








Current liabilities:







Line of credit



4,105,454



3,088,890

Accounts payable and accrued expenses



6,758,595



7,295,905

Bank Term Loan



406,031



405,376

Consideration payable – Cash/Equity



3,822,989



1,918,781

Dividend Payable



499,965



-

Total current liabilities



15,593,034



12,708,952








Long term liabilities: 







Convertible notes



1,250,000



-

Bank Term Loan



1,333,718



1,536,191

Consideration payable – Cash/Equity



15,496,222



13,599,077

Total Long-term Liabilities



18,079,940



15,135,268

Total liabilities



33,672,974



27,844,220

Total stockholders' equity



13,619,866



11,663,703

Total liabilities and stockholders' equity


$

47,292,840


$

39,507,923

 

AMERI HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)



Three Months

Ended

June 30, 2017

Three Months

Ended

June 30, 2016

Six Months

Ended

June 30, 2017

Six Months

Ended

June 30, 2016











Revenue


$

12,268,259

$

7,012,964

$

24,609,186

$

24,609,186

Cost of revenue



9,935,468


5,169,538


18,975,045


10,926,845

Gross profit



2,332,791


1,517,400


5,634,141


2,773,057








Operating expenses:







Selling and marketing



434,895


135,329


767,205


166,679

General and administration



4,405,377


1,977,510


7,106,522


3,696,100

Acquisition related expenses



175,136


239,815


384,480


615,220

Depreciation and amortization



825,657


101,385


1,514,757


213,013

Operating expenses



5,841,065


2,454,039


9,772,964


4,691,012

Operating income (loss):



(3,508,274)


(936,639)


(4,138,823)


(1,917,955)








Interest expense



(164,343)


(270,514)


(255,149)


(384,260)

Changes in estimates



400,000


-


400,000


-

Other expense - net



8,624


(1,862)


4,475


(2,161)

Income (loss) before income taxes



(3,263,993)


(1,209,015)


(3,989,497)


(2,304,376)

Tax benefit / (provision)



-


-


-


-

Income after income taxes



(3,263,993)


(1,209,015)


(3,989,497)


(2,304,376)

Net income attributable to non-controlling interest



(15,388)


-


(11,872)


-

Net income (loss) attributable to the Company



(3,279,381)


(1,209,015)


(4,001,369)


(2,304,376)

Dividend on preferred stock



(504,826)


-


(1,004,791)


-

Net loss attributable to common stock holders



(3,784,207)


(1,209,015)


(5,006,160)


(2,304,376)

Other comprehensive income (loss), net of tax







Foreign exchange translation



(2,185)


(2,808)


3,150


(65,698)

Comprehensive income/(loss)


$

(3,786,392)

$

(1,211,823)

$

(5,003,010)

$

(2,370,074)








Comprehensive income/(loss) attributable to the Company



(3,771,004)


(1,211,823)


(4,991,138)


(2,370,074)

Comprehensive income/(loss) attributable to the non-controlling interest



(15,388)


-


(11,872)


-



(3,786,392)


(1,211,823)


(5,003,010)


(2,370,074)








Basic income (loss) per share


$

(0.26)

$

(0.09)

$

(0.35)

$

(0.19)

Diluted weighted average number of common shares outstanding


$

(0.26)

$

(0.09)

$

(0.35)

$

(0.19)








Basic weighted average number of common shares outstanding



14,610,609


12,845,057


14,352,573


12,359,709

Diluted weighted average number of common shares outstanding



14,610,609


12,845,057


14,352,573


12,359,709

 

AMERI HOLDINGS, INC.

UNAUDITED RECONCILIATION OF NET INCOME/(LOSS) ATTRRIBUTABLE TO COMPANY TO EBITDA & ADJUSTED EBITDA



Three Months

Ended

June 30,


Six Months

Ended

June 30,


2017

2016


2017

2016

Net income (loss) attributable to the Company:

$

(3,279,381)

$

(1,209,015)

$

(4,001,369)

$

(2,304,376)

Changes in estimate

(400,000)


-


(400,000)


-

Depreciation and amortization

825,657


101,385


1,514,757


213,013

Non-Controlling Interest

15,388


-


11,872


-

Interest expense and other, net

155,719


272,376


250,674


386,421

Earnings before interest, tax, depreciation and amortization (EBITDA)

(2,682,617)


(835,254)


(2,624,066)


(1,704,942)

Stock based compensation expense

1,904,552


342,027


2,470,979


443,704

Acquisition related expenses

175,136


239,815


384,480


615,220

Adjusted (EBITDA)

$

(602,929)

$

(253,412)

$

(231,393)

$

(646,018)

 

SOURCE AMERI Holdings, Inc.