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AMERI Holdings Announces Financial Results for Q4 2016 and FY2016

Annual revenue in 2016 of over $36 million, up 78% over 2015

PRINCETON, N.J., April 6, 2017 /PRNewswire/ -- AMERI Holdings, Inc. ("Ameri100" or the "Company") (OTCQB: AMRH), a leading integrated SAP solutions provider, reported financial results for the fourth quarter and fiscal year ended December 31, 2016.

Ameri100's Financial Results - Fourth Quarter 2016 vs. Fourth Quarter 2015:

  • Total revenue was over $12.3 million in the fourth quarter of 2016 ("2016Q4"), compared to over $7.5 million in the fourth quarter of 2015 ("2015Q4");
  • Gross profit was over $2.0 million, or 17% of total revenue, in 2016Q4, compared to over $3.3 million, or 44% of total revenue, in 2015Q4;
  • Net loss was over $2.4 million, or ($0.18) per diluted share, in 2016Q4, compared to a net loss of over $1.8 million, or ($0.17) per diluted share, in 2015Q4;
  • Adjusted EBITDA (a non-GAAP financial measure) was ($89,041), or (1%) of total revenue, in 2016Q4, compared to Adjusted EBITDA of ($492,063), or (6%) of total revenue, in 2015Q4.

Ameri100's Financial Results - Fiscal Year 2016 vs. Fiscal Year 2015:

  • Total revenue was over $36 million in 2016 compared to over $20 million in 2015;
  • Gross profit was over $6.5 million, or 18% of total revenue, in 2016, compared to over $6.8 million, or 34% of total revenue, in 2015;
  • Net loss was $2.78 million, or ($0.21) per diluted share, in 2016, compared to a net loss of $0.81 million, or ($0.07) per diluted share, in 2015;
  • Cash used in operating activities was over ($2.7) million in 2016, compared to over $3.9 million in 2015;
  • Adjusted EBITDA (a non-GAAP financial measure) was $442, or 0% of total revenue, in 2016, compared to Adjusted EBITDA of $1,170,098, or 6% of total revenue, in 2015.

"We exceeded our expectations for growth in fiscal year 2016 by a significant amount with year-on-year revenue growth of 78%. Our team has successfully completed eight acquisitions since 2013, which has consolidated Ameri100's position as a leading system integrator in the SAP cloud and digital enterprise services industry. We believe our current financial position and focus on SAP cloud services, along with our hybrid U.S./offshore business model, will further advance Ameri100 in the industry. Ameri100 expects to continue to grow revenues through both organic growth as well as additional acquisitions, which makes us confident that we will achieve a $100 million annualized revenue run rate in the near future," said Giri Devanur, the Company's Chief Executive Officer.  "In addition, we have invested a significant amount to grow the business, which has suppressed margins in the short term.  We believe our U.S./offshore business model will yield Adjusted EBITDA margins of 10-15% once scale has been achieved."

In November 2016, Ameri100 was ranked 5th in New Jersey and 182nd in North America on the Deloitte Technology Fast 500. This ranking was in recognition of Ameri100's outstanding growth track record.

Ameri100 successfully completed three acquisitions of SAP services companies in 2016, bringing total acquisitions to eight since 2013:

  • DC&M Partners, L.L.C. provides its clients with a wide range of information technology development, consultancy, and management services with an emphasis on the design, build, and rollout of SAP implementations and related products. Headquartered in Chandler, Arizona, DC&M is also a SAP-certified software partner, having launched its SAP reporting, extraction, and distribution tool called "IRIS".
  • Ameri100 Virtuouso Inc., a Kansas based SAP consulting firm, has strong capabilities in the SAP Finance space with its founders having authored books on SAP finance. This acquisition bolsters Ameri100's ability to deliver on its SAP HANA migration capabilities.
  • Bigtech Software Pvt Ltd, an SAP solutions company based in Bangalore, India strengthens our presence in the Middle East and enhances our SAP offshore capabilities.

As part of the Company's business strategy, Ameri100 also signed a strategic partnership agreement with NEC Corporation of America to deliver SAP HANA migration services in February 2017.

In March 2017, Ameri100 acquired ATCG Technology Solutions Inc., a system integration firm specializing in providing end-to-end SAP enterprise cloud services. ATCG brings deep expertise in the areas of SAP HANA, Hybris, SuccessFactors, and Business Intelligence. This acquisition reinforces Ameri100's position as a leading global systems integrator and service provider across the SAP product portfolio.

On March 10, 2017, Ameri100 also made a merger proposal to CIBER, Inc. (NYSE: CBR) valuing CIBER at a price of $0.75 per share, which is a substantial premium to CBR's closing price of $0.28 on the same date. Ameri100 formed a stockholder group with Lone Star Value Management, LLC to nominate two highly-qualified candidates to CIBER's Board of Directors at its upcoming annual meeting of stockholders. The stockholder group owns approximately 4.5 million shares of CIBER, representing 5.5% of CIBER's total shares outstanding.

About Ameri100

AMERI Holdings, Inc. is a fast-growing company that, through the operations of its twelve subsidiaries, provides SAP cloud and digital enterprise services to clients worldwide. Headquartered in Princeton, New Jersey with offices in New York, Atlanta, Dallas, Chandler, Kansas City, Folsom, and Toronto. The company has offshore centers in Bangalore, Chennai, Mumbai, and Noida, India. Ameri100 is a Lean Enterprise Architecture Partner (LEAP), which provides a global partner ecosystem with deep knowledge and capabilities to build and implement complex solutions for clients and thereby building long term sustainable value. 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:
Carlos Fernandez
100 Canal Pointe Blvd, Suite 108
Princeton, NJ 08540
Phone: (732) 243-9250
Email: [email protected]


 

 

AMERI HOLDINGS, INC.

AUDITED CONDENSED CONSOLIDATED BALANCE SHEETS




December 31,

2016


December 31,

2015

Assets

Current assets:





Cash and cash equivalents


$

1,379,887


$

1,878,034

Accounts receivable



8,059,910



4,872,082

Investments



82,908



82,908

Other current assets



542,237



343,809

Total current assets



10,064,942



7,176,833








Other assets:







Property and equipment, net



100,241



73,066

Intangible assets, net



8,764,704



3,114,513

Acquired goodwill



17,089,076



3,470,522

Deferred income tax assets, net



3,488,960



-

Total other assets



29,442,981



6,658,101

Total assets


$

39,507,923


$

13,834,934








Liabilities and Stockholders' Equity

Current liabilities:







Line of credit



3,088,890



1,235,935

Accounts payable



5,130,817



2,597,385

Other accrued expenses



2,165,088



1,093,814

Long-term notes - current portion



405,376




Consideration payable - cash



1,854,397



3,649,267

Consideration payable - equity



64,384



-

Total current liabilities



12,708,952



8,576,401








Long term liabilities: 







Convertible notes



-



5,000,000

Long-term notes – net of current portion



1,536,191



-

Long-term consideration payable - cash



2,711,717



-

Long-term consideration payable - equity



10,887,360



-

Total Long-term Liabilities



15,135,268



5,000,000

Total liabilities



27,844,220



13,576,401








Stockholders' equity:







Preferred stock, $0.01 par value; 1,000,000 authorized, 363,611 issued and outstanding as of
December 31, 2016, and none outstanding as of December 31, 2015



3,636



-

Common stock, $0.01 par value; 100,000,000 shares authorized, 13,885,972 and 11,874,361
issued and outstanding as of December 31, 2016, and December 31, 2015, respectively



138,860



118,743

Additional paid-in capital



15,358,839



1,192,692

Accumulated deficit



(3,833,588)



(1,052,902)

Accumulated other comprehensive income (loss) 



(7,426)



-

Non-Controlling Interest



3,382



-

Total stockholders' equity



11,663,703



258,533

Total liabilities and stockholders' equity


$

39,507,923


$

13,834,934

 

 

AMERI HOLDINGS, INC.

AUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)




Twelve Months
Ended
December 31,


Three Months
Ended
December 31, 



2016



2015


2016



2015












Net revenue


$

36,145,589


$

20,261,172

$

12,387,129


$

7,582,359

Cost of revenue



29,608,932



13,391,504


10,320,127



4,253,941

Gross profit



6,536,657



6,869,668


2,067,003



3,328,418













Operating expenses:












Selling and marketing



417,249



119,847


15,762



-

General and administration



8,552,966



5,721,633


3,628,322



4,922,772

Nonrecurring expenditures



1,585,136



1,655,962


(45,642)



-

Depreciation and amortization



1,361,169



166,208


638,779



140,518

Operating expenses



11,916,520



7,663,650


4,237,221



5,063,290

Operating income (loss):



(5,379,863)



(793,982)


(2,170,219)



(1,734,872)













Interest expense



(751,074)



(238,471)


(76,391)



(150,816)

Interest income/other income



-



89,918


(44)



82

Other income



16,604



-


16,604



-

Change due to estimate correction of consideration payable



(410,817)



-


(410,817)



-

Total other income (expenses)



(1,145,287)



(148,553)


(668,372)



(150,734)

Net income (loss) before income taxes



(6,525,150)



(942,535)


(2,443,144)



(1,885,606)

Income tax benefit (provision)



3,747,846



128,460


-




Net income (loss)



(2,777,304)



(814,075)


(2,443,144)



(1,885,606)

    Non-controlling interest



(3,382)



-


(3,382)




Net income (loss) attributable to the Company



(2,780,686)



(814,075)


(2,446,526)



(1,885,606)













Foreign exchange translation adjustment



(7,426)



-


(807)



-













Comprehensive income (loss)


$

(2,788,112)


$

(814,075)

$

(2,447,333)


$

(1,885,606)

























Basic income (loss) per share


$

(0.21)


$

(0.07)

$

(0.18)


$

(0.17)

Diluted income (loss) per share


$

(0.21)


$

(0.07)

$

(0.18)


$

(0.17)













Basic weighted average number of shares



13,068,597



11,101,198


13,885,972



11,101,198

Diluted weighted average number of shares



13,068,597



11,101,198


13,885,972



11,101,198

 

 

AMERI HOLDINGS, INC.

AUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS




Twelve Months
Ended
December 31,


Three Months
Ended
December 31,



2016


2015


2016


2015

Cash flow from operating activities









Net income/(loss)

$

(2,780,686)


$   (814,075)


$

(2,446,526)


$

(1,885,606)

Adjustment to reconcile income/(loss) to net cash used in operating activities











Depreciation and amortization


1,361,169


166,284



638,779



140,594

Provision for doubtful debts/ (written back), net


-


410,712



-



410,712

Accrued interest on convertible notes


125,000


-



125,000



-

Change due to estimate correction of consideration payable


410,817


-



410,817



-

Stock, option, restricted stock unit and warrant expense


1,457,647


141,910



511,688



141,910

Deferred income taxes, net


(3,488,960)


-



258,886



-

Foreign exchange translation adjustment


(7,426)


-



(807)



-

Changes in assets and liabilities:











Increase (decrease) in:











Accounts receivable


(3,187,828)


(3,548,324)



(335,050)



3,716,175

Other current assets


(198,428)


(169,549)



87,403



108,963

Security deposit


-


-



-



16,837

Accounts payable and accrued expenses


3,604,706


(89,586)



1,043,385



(645,368)

Other current liabilities


-


-






(1,670,333)

Taxes payable


-


-






84,971

Net cash used in operating activities


(2,703,989)


(3,902,628)



293,575



418,855

Cash flow from investing activities











Purchase of intangible and fixed assets


(3,688,996)


(70,782)



(6,950,613)



3,061,190

Acquisition consideration payable


(2,903,066)


(1,765,549)



5,875,974



3,470,522

Investments


-


-



(82,908)



(10,965,549)

Net cash used in investing activities


(6,592,062)


(1,836,331)



(1,157,547)



(4,433,837)

Cash flow from financing activities











Proceeds from loan funds


3,794,522


6,235,935



(673,357)



985,935

Non-Controlling Interests Net Income


3,382


-



3,382



-

Additional stock issued


5,000,000


-



-



(159,521)

Net cash provided by financing activities


8,797,904


6,235,935



(669,975)



826,414

Net increase (decrease) in cash and cash equivalents


(498,147)


496,976



(1,533,947)



(3,188,568)

Cash and cash equivalents as at beginning of the year


1,878,034


1,381,058



2,913,834



5,066,602

Cash at the end of the year

$

1,379,887


$   1,878,034


$

1,379,887



$  1,878,034

SUPPLEMENTAL DISCLOSURES:











Cash paid during the period for:











Interest

$

362,792


$    238,471







Taxes











 

 

AMERI HOLDINGS, INC.

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




Twelve Months
Ended
December 31,


Three Months
Ended
December 31, 



2016



2015



2016



2015















Operating income (loss):


$

(5,379,863)


$

(793,982)


$

(2,170,219)


$

(1,734,872)


Depreciation and amortization



1,361,169



166,208



638,779



140,518


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



(4,018,694)



(627,774)



(1,531,440)



(1,594,354)


EBITDA %



(11.12 %)



(3.10 %)



(12.36%)



(21.03 %)


Stock based compensation expense



1,457,647



141,910



511,688



-


Nonrecurring expenditures



1,585,136



1,655,962



(45,642)



1,102,291


Other Acquisition, Learning & Development Expenses



976,353



-



976,353



-


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


$

442


$

1,170,098


$

(89,041)


$

(492,063)


Adjusted EBITDA %



(0.00 %)



(5.78 %)



(0.72 %)



(6.00 %)


 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ameri-holdings-announces-financial-results-for-q4-2016-and-fy2016-300436325.html

SOURCE AMERI Holdings, Inc.

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