Ameri100 announces fourth quarter and full year 2017 financial results
By AMERI100, April 2, 2018
PRINCETON, N.J., April 2, 2018 — AMERI Holdings, Inc. (NASDAQ: AMRH) (“Ameri100” or the “Company”), a specialized SAP® cloud, digital and enterprise services company, today reported its fourth-quarter and full-year 2017 financial results.
Full Year 2017 vs. Full Year 2016
- Revenue was $48.6 million compared to $36.1 million, an increase of 34%;
- Gross profit was $10.2 million compared to $6.9 million, an increase of 48%;
- Gross margin was 21.1% compared to 19.2%, an increase of 190 basis points;
- GAAP net loss was $(11.2) million compared to $(2.8) million;
- Loss per share was $(0.75) compared to $(0.21) per diluted share; and
- Adjusted EBITDA was $(0.8) million compared to $(1.0) million.
Fourth Quarter 2017 vs. Fourth Quarter 2016
- Revenue of $11.5 million compared to $12.4 million, a decrease of 8%;
- Gross profit of $2.0 million compared to $2.1 million;
- Gross margin was 17.8% compared to 16.7%, an increase of 112 basis points;
- GAAP net (loss)/net income of $(1.5) million compared to $1.3 million;
- Earnings/(Loss) per share of $(0.09) compared to $0.09; and
- Adjusted EBITDA was $(0.7) million compared to $(1.1) million.
“2017 was a year in which we established Ameri100 as a premier solutions and services provider to the fast-growing and large SAP services market through the integration of acquired businesses,” said Brent Kelton, Chief Executive Officer of Ameri100. “We now have an efficient platform to enable organizations’ cloud and digital business transformation initiatives at a time when they are accelerating their use of next-generation IT infrastructure to gain a competitive advantage. We also started to integrate sales and solutions-delivery functions to further penetrate our installed base of clients and secure new ones with a broadened solutions portfolio. Finally, we completed our first public offering to raise capital, uplisted to the Nasdaq Capital Market and assembled a management team to deliver long-term growth for the Company.”
“In 2018, we plan to drive top-line growth year-over-year through a greater focus on solutions sales. Our recent client successes are elevating our profile in the marketplace, and we are increasingly playing a strategic role in advancing clients’ cloud roadmaps that, together with our business development initiatives, is yielding a robust sales pipeline that will propel our growth. M&A remains a component of our growth strategy, which we believe will enable us to more quickly enter new business verticals and expand our capabilities and client base,” concluded Mr. Kelton. “With a proven track record of operational excellence, deep and compelling cloud and digital expertise and a management team committed to capturing the opportunities ahead of us, we are purpose-built for long-term success.”
2018 Financial Targets:
For 2018, Ameri100 is reaffirming its financial target of achieving adjusted EBITDA profitability during the first-half of 2018. In addition, the Company anticipates year-over-year revenue growth of 15% and adjusted EBITDA profitability for the full year 2018.
Management will host a conference call today at 10:00 a.m. ET (New York) 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.
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 Measures
In 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 announcing results for the fourth quarter and fiscal year ended December 31, 2017. 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.
Viraj Patel, Chief Financial Officer
Investor Relations Contact:
Jody Burfening/Sanjay M. Hurry
LHA Investor Relations
SOURCE AMERI Holdings, Inc.