Ameri100 Reports Second Consecutive Quarter of Year-Over-Year Adjusted EBITDA Profitability

AMERI Holdings (NASDAQ:AMRH) announced its unaudited financial results for the three months period ended September 30, 2018 with the company reporting second consecutive quarter of adjusted EBITDA profitability.

The company engaged in specialized SAP Cloud, digital and enterprise services reported adjusted EBITDA of US$5,403 as compared to adjusted EBITDA loss of US$426,092 in Q3 2017.

As quoted in the press release:

Third Quarter 2018 vs. Third Quarter 2017

• Revenue of $10.6 million compared to $12.5 million;
• Gross profit of $2.3 million compared to $2.6 million;
• Gross margin of 22.2% compared to 20.5%;
• GAAP net income (loss) of $3.9 million compared to $(4.6) million. GAAP net income includes a one-time non-cash gain of $7.3 million as a result of the Company’s change in estimate of its consideration payable related to a prior acquisition;
• Diluted earnings (loss) per share of $0.16 compared to $(0.31). Earnings per share for the third quarter of 2018 includes the issuance of 2.6 million shares of common stock related to the Company’s previously disclosed private placement;

First Nine Months of 2018 vs. First Nine Months of 2017

• Revenue of $32.7 million compared to $37.1 million;
• Gross profit of $7.1 million compared to $8.2 million;
• Gross margin of 21.6% compared to 22.1%;
• GAAP net income (loss) of $0.4 million compared to $(9.6) million. GAAP net income includes a one-time non-cash gain of $7.3 million in the third quarter of 2018;
• Diluted earnings (loss) per share of $0.02 compared to $(0.66). Earnings per share for the first nine months of 2018 includes the issuance of additional shares of common stock related to the Company’s previously disclosed private placement; and
• Adjusted EBITDA was $35,626 compared to Adjusted EBITDA loss of $(194,699).

“Our 2018 third quarter results attest to a purposeful focus on both quality of revenue and Adjusted EBITDA profitability. Continued execution of our high margin solutions sales strategy yielded a 172-basis point improvement in gross margin and a second consecutive quarter of year-over-year positive Adjusted EBITDA. We are winning digital transformation projects because of our deep SAP domain expertise, broadened solutions offerings and an elevated profile within the SAP ecosystem following recent marquee wins and deployments. During the quarter we added to our client base, including our first healthcare market project and a leading golf lifestyle apparel brand. We also closed on a private placement that gives us the financial flexibility to pursue our organic growth strategy,” stated Brent Kelton, Chief Executive Officer at Ameri100.

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