AMERI Holdings, Inc. ("Ameri100" or the "Company"), an 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.
- 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., 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.
