AMERI Holdings Reports Financial Results for the Quarter Ended September 30, 2015

Issues 2016 Guidance and Provides Operational and Product Updates

23 Nov, 2015, 16:46 ET from AMERI Holdings, Inc.

PRINCETON, N.J., Nov. 23, 2015 /PRNewswire/ -- AMERI HOLDINGS, Inc. ("Ameri100" or the "Company") (OTCQB: AMRH), a strategy consulting firm that brings synergies of classic technology consulting and product-based technology consulting services to its customer base, today reported results for the quarter ended September 30, 2015 (the "September 2015 Quarter").

Financial Highlights

For the September 2015 quarter:

  • Revenue of $4.46 million with gross profit of $1.44 million
  • Acquired BellSoft Inc., a Lawrenceville, GA-based consulting company
  • Ameri100 continues to analyze acquisition targets and plans to grow revenues to $100 million or more through organic growth and acquisitions

Revenue in the September 2015 Quarter increased by 15.9% compared to the same period in 2014. The cost of revenue decreased by 15.5% and gross profit increased to $1.44 million from $0.27 million attributable to project revenues. SG&A expenses increased due to consulting charges paid and integration costs associated with the acquisition of BellSoft, Inc. ("Bellsoft"). In addition, during the September 2015 Quarter, the Company invested in the expansion of its sales and marketing teams, which resulted in additional increases in SG&A expenses.

2016 Guidance

The Company initiates 2016 guidance of $40 million in revenue with an adjusted EBITDA margin in the range of 10-15%. Adjusted EBITDA margin at the beginning of the year is expected to be at the lower end of the range due to the Bellsoft acquisition and at the higher end of the range at the end of the year as the operations of Bellsoft and Ameri100 become fully integrated and merger synergies are realized.

Operational Highlights

Ameri100 acquired Bellsoft, a Lawrenceville, Georgia-based global systems integrator specializing in providing Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), business intelligence (BI), and other web-based solutions.  The acquisition will significantly expand Ameri100's service lines and geographic presence in the southeast U.S. market.

"The acquisition of Bellsoft is a landmark achievement for Ameri100's customers, partners, and employees across the globe," commented Giri Devanur, Chief Executive Officer of Ameri100.  Mr. Devanur further commented that, "Bellsoft is a well-established firm with 20 years of strategic consulting services to Fortune 100 clients."  The Company believes that with this acquisition, it is even better positioned to provide additional services in digital transformation and ERP solutions to all of its clients.  In the September 2015 Quarter, Ameri100 added two Fortune 1000 companies to its clients list.  With the acquisition of Bellsoft, the total number of clients increased to 32.

With the acquisition of Bellsoft, Ameri100 further demonstrates its commitment to strengthening its capabilities in delivering IT services and products around the world and affirms its client acquisition and growth strategy to reach its goal of $100 million or more in revenues.  Ameri100 will integrate its offshore business model with Bellsoft's U.S.-based operations to create significant synergies. With this acquisition, the total workforce for the merged entity rises to 255, which combines with Ameri100's extensive Lean Enterprise Architecture Partner ("LEAP") network of over 4,500 technology associates worldwide.

Ameri100 has created an extensive database of potential acquisition targets and is currently exploring multiple accretive acquisitions that will create further value for Ameri100's shareholders.  These targets bring strategic technical and managerial capabilities to expand the Company's footprint with current and potential customers globally, in addition to adding new products and services to the Company's offering to clients.

"Our increased focus on technological initiatives through digital transformation and business intelligence is bearing fruit with several important projects secured during the September quarter," said President and CEO Giri Devanur.  He also added that the Company continues to sharpen its project management processes and increase internal efficiency to expand its product and service offerings to its customer base.

About AMERI HOLDINGS, Inc.

AMERI HOLDINGS, Inc. is a strategy consulting firm that brings synergies of classic consulting and product-based consulting services to its customer base. Headquartered in Princeton, New Jersey, with offices in New York, Atlanta, Dallas, and Toronto as well as offshore centers in Bangalore, Mumbai, Chennai, and Pune India, the Company is a global leader in consulting and technology solutions. The Company is a Lean Enterprise Architecture Partner (LEAP), enabling clients to outperform the competition and stay ahead of the innovation curve. Ameri100 leverages a global partner ecosystem that has deep knowledge and skills to build and implement great ideas that drive progress for clients and enhance their businesses through innovative solutions.

Use of Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures, including but not limited to adjusted EBITDA. These measures are not in accordance with, or an alternative to, generally accepted accounting principles, or GAAP, and may be different from non-GAAP financial measures used by other companies. The Company believes the presentation of non-GAAP financial measures provides useful information to management and investors regarding various financial and business trends relating to our financial condition and results of operations. When GAAP financial measures are viewed in conjunction with non-GAAP financial measures, investors are provided with a more meaningful understanding of our ongoing operating performance. In addition, these non-GAAP financial measures are among those indicators the Company uses as a basis for evaluating operational performance, allocating resources and planning and forecasting future periods. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for GAAP financial measures.

Adjusted EBITDA is a commonly used non-GAAP financial measure and is defined as "earnings before interest, taxes, depreciation, and amortization." We define Adjusted EBITDA as net income or loss plus net interest expense, income taxes, depreciation and amortization plus stock-based compensation and certain other non-recurring income or expenses such as acquisition related costs.

Safe Harbor

Some of the statements on this press release that are neither reported financial results nor historical facts are forward-looking statements. These forward-looking statements include our 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. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, 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. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events.

For more information contact:

Carlos Fernandez
EVP- Strategic Initiatives
(732) 243-9250

 

AMERI HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS












9/30/2015


3/31/2015

Assets

Current assets:






Cash and cash equivalents

$

5,066,683


$         825,621


Accounts receivable


8,955,544


2,981,574


Other current assets


458,329


180,622



Total current assets


14,480,556


3,987,817








Investments


-


340,000








Fixed assets – net


76,699


29,906








Intangible assets – net


3,158,321


100,000








Goodwill


3,470,522


-








Security deposit


20,587


3,750










Total assets


 

$  21,206,685


$      4,461,473








Liabilities and Stockholders' Equity








Current liabilities:






Line of credit


250,000


-


Accounts payable


3,560,513


2,936,608


Consideration payable


8,900,000


-


Other current liabilities


1,817,124


146,791


Taxes payable


320,247


405,218



Total current liabilities


14,847,884


3,488,617








Long-term liabilities:






Contingent consideration payable


400,000


-


Convertible notes


5,000,000


-



Total current and long-term liabilities


20,247,884


3,488,617








Stockholders' equity:






Preferred stock, $0.01 par value; 1,000,000 authorized, none issued and outstanding






Common stock, $0.01 par value; 100,000,000 shares authorized,







11,639,066 and 9,992,828 issued and outstanding as of September 30, 2015







and March 31, 2015, respectively


116,390


992


Additional paid-in capital


53,131


134,008


Retained earnings


699,462


837,856


Cumulative translation adjustment


89,818


-



Total stockholders' equity


958,801


972,856










Total liabilities and stockholders' equity


$    21,206,685


$      4,461,473

 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)








Three-Month Period ended Sept 30,


Six-Month Period ended Sept 30,



2015


2014


2015


2014










Net revenue

$         4,463,125


$      3,851,647


$      8,394,063


$      7,844,974










Cost of revenue

3,023,208


3,579,629


5,971,478


6,492,977










Gross profit

1,439,917


272,018


2,422,585


1,351,997










Operating expenses:


















Selling, general and administration expenses

1,497,396


431,981


1,987,115


936,786


One time legal and consulting fee

248,911


11,024


553,835


11,024










Operating income (loss) before other income / (expenses):

(306,390)


(170,987)


(118,365)


404,187











Interest expense

(62,113)


-


(87,655)


-











Depreciation and amortization

(9,375)


(8,267)


(17,423)


(16,839)











Interest income

54


-


82


-










Income before income taxes

(377,824)


(179,254)


(223,361)


387,348


Tax benefit/(provision)

128,460


62,444


84,971


(95,792)










Net income

(249,364)


(116,810)


(138,390)


291,556











Unrealized foreign currency translation income

89,818


-


89,818


-










Net and comprehensive income for the period

$           (159,546)


$       (116,810)


$         (48,572)


$         291,556










Basic income (loss) per share

$                 (0.01)


$             (0.01)


$             (0.00)


$               0.03

Diluted income (loss) per share

$                 (0.01)


$             (0.01)


$             (0.00)


$               0.03










Basic weighted average number of shares

11,639,066


9,992,828


11,347,127


9,992,828

Diluted weighted average number of shares

11,639,066


9,992,828


11,347,127


9,992,828

 

SOURCE AMERI Holdings, Inc.