Ameri Holdings Inc.

08/14/2019 | Press release | Distributed by Public on 08/14/2019 07:00

AMERI100 ANNOUNCES SECOND QUARTER OF 2019 FINANCIAL RESULTS

ATLANTA, GA., August 14, 2019- AMERI Holdings, Inc. (NASDAQ: AMRH) ("Ameri100" or the "Company"), a specialized SAP® cloud, digital and enterprise solutions company, today reported its unaudited financial results for the three months and six months ended June 30, 2019.

Second Quarter 2019 vs. First Quarter 2019

  • Revenue of $11.0 million compared to $10.7 million;
  • Gross profit of $2.4 million compared to $2.1 million;
  • Gross margin of 21.6% compared to 20.0%;
  • Net loss of $(1.4) million compared to $(1.9) million;
  • Loss per share of $(0.03) compared to $(0.04). For the three months ended June 30, 2019 and March 31, 2019, the basic weighted average of common shares outstanding was 50.7 million and 45.2 million, respectively;
  • Adjusted EBITDA was $(0.7) million compared to $(0.5) million; and
  • Cash and cash equivalent were $1.6 million at June 30, 2019 compared to $1.7 million at March 31, 2019.

Recent Operational Highlights:

  • Initiated its first Proof of Concept for client migration to Google's Cloud Platform;
  • Awarded a multi-year managed services contract for SAP application support and management by global technology leader;
  • Entered into Master Services Agreement with new automotive industry client;
  • Won a multi-year Managed Services contract with Fortune 500 global consumer products company; and
  • Delivered on a greenfield S/4HANA implementation for global commodities trading company.

Note: As of August 1, 2019, Ameri100 has received gross proceeds of $2.1 million from the exercise of 6,799,312 from a total of 22,544,139 Series 'A' warrants issued. Series 'A' warrants have an exercise price of $0.3123 per share. All pre-funded Series 'B' warrants totaling 19,508,621 warrants were exercised during 2018.

Update on Google Cloud Premier Partner Certification

On July 23, 2019, Ameri100 announced that it continues to pursue Premier Partner status with Google Cloud. The company reported that Google Cloud introduced a completely new partner management program that increased the requirements to achieve Premier status. Concurrently, as an established Google Cloud Partner, the company is actively engaged with Google Cloud to facilitate SAP on-prem customers' migration to Google Cloud. Please click here for the full text of the July 23, 2019 update: https://ameri100.com/ameri100-advances-google-partnership/

Conference Call
The Company will not host a conference call to discuss its second-quarter 2019 financial results.

About Ameri100
Ameri100 is a fast-growing specialized SAP® cloud, digital and enterprise solutions company which provides SAP® services to customers worldwide. Headquartered in Suwanee, Georgia, Ameri100 has offices in the U.S. and Canada. The Company also has global delivery centers in India. With its bespoke engagement model, the Company 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 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. 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, restructuring expenses and changes in estimates related to acquisitions. 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:
Barry Kostiner, Chief Financial Officer
[email protected]

Investor Relations Contact:
Sanjay M. Hurry
LHA Investor Relations
(212) 838-3777
[email protected]

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