- Total Net Revenues Increased 24% Year-over-Year for the
Fourth Quarter and 26% for the Full Fiscal Year 2016
- GAAP Diluted EPS of $0.19 for the Fourth Quarter and $0.32
for the Full Fiscal Year 2016
- Adjusted EBITDA of $4.1 Million for the Fourth Quarter and
$10.1 Million for the Full Fiscal Year 2016
- Company Provides Fiscal Year 2017
Guidance
- Conference Call Scheduled for Today at 9 a.m. ET (6 a.m. PT) -
CALABASAS, Calif., Sept. 15, 2016 (GLOBE NEWSWIRE) -- NetSol Technologies, Inc. (Nasdaq:NTWK), a global business
services and enterprise application solutions provider to the Asset Finance and Leasing industry, today announced financial results
for the fourth quarter and fiscal year ended June 30, 2016.
Fiscal 2016 Fourth Quarter Financial
Results
Total net revenues for the fourth quarter of fiscal 2016 were $19.1 million, an increase of 24% from the prior year
period.
- Total license fees were $4.2 million, compared with $1.4 million in the prior year period.
- Total maintenance fees were $3.8 million, compared with $3.4 million in the prior year period.
- Total services revenues were $11.0 million, compared with $10.6 million in the prior year period.
Gross profit for the fourth quarter of fiscal 2016 more than doubled to $10.3 million, or 53.9% of net revenues,
from $5.0 million, or 32.2% of net revenues, in the fourth quarter of fiscal 2015.
GAAP net income attributable to NetSol for the fourth quarter of fiscal 2016 improved to $2.1 million, or $0.19 per
diluted share, compared with a net loss of $0.7 million, or $(0.07) per diluted share, in the fourth quarter of fiscal 2015.
Adjusted EBITDA1 for the fourth quarter of fiscal 2016 was $4.1 million, representing Adjusted
EBITDA per diluted share of $0.38, compared with Adjusted EBITDA of $1.9 million, or Adjusted EBITDA per diluted share of $0.18, in
the fourth quarter of fiscal 2015. Beginning with the fourth quarter of fiscal 2016, NetSol has revised its calculation of Adjusted
EBITDA to exclude the portion of Adjusted EBITDA that is attributable to its subsidiaries that have a minority interest. The
company believes this supplemental disclosure provides additional insights to measure the operational performance of its
business.
Fiscal 2016 Full Year Financial
Results
Total net revenues for the fiscal year ended June 30, 2016 were a record $64.6 million, representing an increase of
26% from fiscal year 2015.
- Total license fees were $8.0 million, compared with $6.3 million in the prior fiscal year.
- Total maintenance fees were $13.7 million, compared with $12.6 million in the prior fiscal year.
- Total services revenues were $42.9 million, compared with $32.1 million in the prior fiscal year.
Gross profit for fiscal year 2016 increased to $30.8 million, or 47.7% of net revenues, from $17.5 million, or
34.2% of net revenues, for fiscal year 2015.
GAAP net income attributable to NetSol for the fiscal year ended June 30, 2016 improved to $3.4 million, or $0.32
per diluted share, compared with a net loss of $5.5 million, or $(0.57) per diluted share, for fiscal year 2015.
Adjusted EBITDA for the fiscal year ended June 30, 2016 more than tripled to $10.1 million, representing Adjusted
EBITDA per diluted share of $0.96, from $3.3 million, or Adjusted EBITDA per diluted share of $0.34, for fiscal year 2015.
At June 30, 2016, cash and cash equivalents were $11.6 million, compared with $14.2 million at June 30, 2015.
The company purchased 1,374,000 shares of NetSol PK common stock for $767,397 during the fiscal year ended June 30,
2016, resulting in an increase in ownership to 67%.
Management Commentary
“We ended fiscal year 2016 on a high note, generating record revenue for the fourth quarter and full-year and
exceeding our guidance for both revenue and Adjusted EBITDA. Our results demonstrate solid demand for our solutions and the
continued execution of our growth strategy,” said Najeeb Ghauri, CEO of NetSol. “Looking to fiscal 2017, we see meaningful
opportunity to continue to grow and scale our client base, and will continue to make additional investments across our business to
expand our share in all our markets.”
Naeem Ghauri, President and Head of Global Sales, said, “Continued strong demand in the market, and the investments
we have made in our solutions, our services capabilities and in our global team, have contributed to solid growth in our pipeline
of new business opportunities compared to the prior year. The momentum we are seeing in our pipeline across all our markets,
combined with our current backlog of business including the $100 million-plus NFS Ascent implementation, gives us confidence in our
growth prospects for fiscal 2017.”
Fiscal 2017 Financial
Outlook
The Company’s financial outlook for the fiscal year ending June 30, 2017 is as follows:
- Total net revenues of $73 to $75 million for fiscal 2017.
- Non-GAAP Adjusted EBITDA, net, of $13 to $14 million for fiscal 2017.
Fiscal 2016 Fourth Quarter Conference
Call
|
|
|
|
|
When: |
|
|
|
Thursday September 15, 2016 |
Time: |
|
|
|
9:00 a.m. Eastern Time |
Phone: |
|
|
|
1-844-868-9327 (domestic) |
|
|
|
|
1-412-317-6595 (international) |
Note: |
|
|
|
Once connected, please ask to be joined into the NetSol Technologies call. |
|
|
|
|
|
A replay will be available one hour after the end of the conference call and can be accessed by dialing
1-877-344-7529 (domestic) or 1-412-317-0088 (international); the replay access code is 10091540. The replay will be available
through Thursday, September 22, 2016.
A live webcast will be available online within the investor relations section of NetSol’s website at http://www.netsoltech.com. A replay of the webcast will be available one hour following
conclusion of the live call, and will be archived for one year.
1 The reconciliation of Adjusted EBITDA to net income, the most comparable financial measure
based upon GAAP, as well as a further explanation of adjusted EBITDA, is included in the financial tables in Schedule 4 of this
press release.
About NetSol Technologies
NetSol Technologies, Inc. (Nasdaq:NTWK) is a worldwide provider of IT and enterprise software solutions primarily
serving the global leasing and financing industry. The Company’s suite of applications are backed by 40 years of domain expertise
and supported by a committed team of 1,500+ professionals placed in eight strategically located support and delivery centers
throughout the world. NFSTM, LeasePakTM, LeaseSoft or NFS AscentTM – help companies transform
their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and
finance lifecycle.
Investors can receive news releases and invitations to special events by accessing our online signup form at
http://ir.netsoltech.com/email-alerts.
Forward-Looking Statements
Certain statements in this press release are forward-looking in nature, including, but not limited to, expected
net revenue and adjusted EPS amounts for the full fiscal year and the growing market need for NFS Ascent, and accordingly, are
subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The
words “expects,” “anticipates,” variations of such words, and
similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of
1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future
performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could
affect the Company's actual results include the progress and costs of the development of products and services and the timing of
the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any
forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in
events, conditions or circumstances upon which any statement is based.
Investor Contact
ICR
William Maina
(646) 277-1236
investors@netsoltech.com
NetSol Technologies, Inc. and
Subsidiaries |
Schedule 1: Consolidated Balance
Sheets |
|
|
|
|
As of June 30, |
|
As of June 30, |
|
ASSETS |
|
2016 |
|
|
|
2015 |
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
11,557,527 |
|
|
$ |
14,168,957 |
|
|
Accounts receivable, net of allowance of $492,498 and $524,565 |
|
9,691,229 |
|
|
|
6,480,344 |
|
|
Accounts receivable, net - related party |
|
5,691,178 |
|
|
|
3,491,899 |
|
|
Revenues in excess of billings |
|
10,493,096 |
|
|
|
5,251,005 |
|
|
Revenues in excess of billings - related party |
|
804,168 |
|
|
|
16,270 |
|
|
Other current assets |
|
2,214,628 |
|
|
|
1,871,040 |
|
|
|
Total current assets |
|
40,451,826 |
|
|
|
31,279,515 |
|
Long term investment |
|
|
|
|
|
Restricted cash |
|
90,000 |
|
|
|
90,000 |
|
Property and equipment, net |
|
22,774,435 |
|
|
|
25,119,634 |
|
Other assets |
|
842,553 |
|
|
|
141,150 |
|
Intangible assets, net |
|
19,674,033 |
|
|
|
22,815,467 |
|
Goodwill |
|
9,516,568 |
|
|
|
9,516,568 |
|
|
|
Total assets |
$ |
93,349,415 |
|
|
$ |
88,962,334 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable and accrued expenses |
$ |
5,962,770 |
|
|
$ |
5,952,561 |
|
|
Current portion of loans and obligations under capitalized leases |
|
4,440,084 |
|
|
|
3,896,353 |
|
|
Unearned revenues |
|
4,739,214 |
|
|
|
4,897,327 |
|
|
Common stock to be issued |
|
88,324 |
|
|
|
88,324 |
|
|
|
Total current liabilities |
|
15,230,392 |
|
|
|
14,834,565 |
|
Long term loans and obligations under capitalized
leases; less current maturities |
|
477,692 |
|
|
|
487,492 |
|
|
|
Total liabilities |
|
15,708,084 |
|
|
|
15,322,057 |
|
Commitments and contingencies |
|
|
|
Stockholders' equity: |
|
|
|
|
Preferred stock, $.01 par value; 500,000 shares authorized; |
|
- |
|
|
|
- |
|
|
Common stock, $.01 par value; 14,500,000 shares authorized; |
|
|
|
|
|
10,713,372 shares issued and 10,686,093 outstanding as of June 30, 2016
and |
|
|
|
|
|
10,307,826 shares issued and 10,280,547 outstanding as of June 30, 2015 |
|
107,134 |
|
|
|
103,078 |
|
|
Additional paid-in-capital |
|
121,448,946 |
|
|
|
119,209,807 |
|
|
Treasury stock (27,279 shares) |
|
(415,425 |
) |
|
|
(415,425 |
) |
|
Accumulated deficit |
|
(37,323,360 |
) |
|
|
(40,726,121 |
) |
|
Stock subscription receivable |
|
(783,172 |
) |
|
|
(1,204,603 |
) |
|
Other comprehensive loss |
|
(18,730,494 |
) |
|
|
(17,167,100 |
) |
|
|
Total NetSol stockholders' equity |
|
64,303,629 |
|
|
|
59,799,636 |
|
|
Non-controlling interest |
|
13,337,702 |
|
|
|
13,840,641 |
|
|
|
Total stockholders' equity |
|
77,641,331 |
|
|
|
73,640,277 |
|
|
|
Total liabilities and stockholders' equity |
$ |
93,349,415 |
|
|
$ |
88,962,334 |
|
|
|
|
|
|
|
NetSol Technologies, Inc. and
Subsidiaries |
Schedule 2: Consolidated Statement of
Operations |
|
|
|
|
For the Three Months |
For the Year |
|
|
|
Ended June 30, |
|
Ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Net Revenues: |
|
|
|
|
|
|
|
|
|
|
License fees |
$ |
3,090,927 |
|
|
$ |
1,428,520 |
|
|
$ |
6,352,441 |
|
|
$ |
6,328,989 |
|
|
Maintenance fees |
|
3,669,355 |
|
|
|
3,232,833 |
|
|
|
13,310,591 |
|
|
|
12,196,073 |
|
|
Services |
|
7,800,762 |
|
|
|
8,177,176 |
|
|
|
32,288,229 |
|
|
|
24,827,822 |
|
|
License fees - related party |
|
1,131,494 |
|
|
|
- |
|
|
|
1,616,138 |
|
|
|
- |
|
|
Maintenance fees - related party |
|
147,363 |
|
|
|
158,428 |
|
|
|
365,772 |
|
|
|
395,951 |
|
|
Services - related party |
|
3,239,592 |
|
|
|
2,397,951 |
|
|
|
10,617,022 |
|
|
|
7,299,743 |
|
|
|
Total net revenues |
|
19,079,493 |
|
|
|
15,394,908 |
|
|
|
64,550,193 |
|
|
|
51,048,578 |
|
|
|
|
|
|
|
|
|
|
Cost of revenues: |
|
|
|
|
|
|
|
Salaries and consultants |
|
5,853,138 |
|
|
|
6,117,504 |
|
|
|
21,789,329 |
|
|
|
19,859,684 |
|
|
Travel |
|
554,885 |
|
|
|
602,575 |
|
|
|
2,334,019 |
|
|
|
2,374,864 |
|
|
Depreciation and amortization |
|
1,507,573 |
|
|
|
2,822,045 |
|
|
|
5,926,969 |
|
|
|
8,336,857 |
|
|
Other |
|
875,943 |
|
|
|
890,461 |
|
|
|
3,698,290 |
|
|
|
3,020,107 |
|
|
|
Total cost of revenues |
|
8,791,539 |
|
|
|
10,432,585 |
|
|
|
33,748,607 |
|
|
|
33,591,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
10,287,954 |
|
|
|
4,962,323 |
|
|
|
30,801,586 |
|
|
|
17,457,066 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Selling and marketing |
|
2,226,227 |
|
|
|
1,673,064 |
|
|
|
7,823,916 |
|
|
|
6,092,530 |
|
|
Depreciation and amortization |
|
327,152 |
|
|
|
437,054 |
|
|
|
1,225,170 |
|
|
|
2,006,957 |
|
|
General and administrative |
|
4,573,172 |
|
|
|
3,055,345 |
|
|
|
14,965,016 |
|
|
|
14,208,493 |
|
|
Research and development cost |
|
123,666 |
|
|
|
84,152 |
|
|
|
485,783 |
|
|
|
314,892 |
|
|
|
Total operating expenses |
|
7,250,217 |
|
|
|
5,249,615 |
|
|
|
24,499,885 |
|
|
|
22,622,872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
3,037,737 |
|
|
|
(287,292 |
) |
|
|
6,301,701 |
|
|
|
(5,165,806 |
) |
|
|
|
|
|
|
|
|
|
Other income and (expenses) |
|
|
|
|
|
|
|
Gain (loss) on sale of assets |
|
23,288 |
|
|
|
9,501 |
|
|
|
23,930 |
|
|
|
(64,598 |
) |
|
Interest expense |
|
(68,112 |
) |
|
|
(1,370 |
) |
|
|
(264,511 |
) |
|
|
(166,962 |
) |
|
Interest income |
|
44,710 |
|
|
|
70,341 |
|
|
|
161,794 |
|
|
|
331,432 |
|
|
Loss on foreign currency exchange transactions |
|
(502,867 |
) |
|
|
135,937 |
|
|
|
(738,158 |
) |
|
|
(453,770 |
) |
|
Other income |
|
24,675 |
|
|
|
58,380 |
|
|
|
224,931 |
|
|
|
684,030 |
|
|
|
Total other income (expenses) |
|
(478,306 |
) |
|
|
272,789 |
|
|
|
(592,014 |
) |
|
|
330,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) before
income taxes |
|
2,559,431 |
|
|
|
(14,503 |
) |
|
|
5,709,687 |
|
|
|
(4,835,674 |
) |
Income tax provision |
|
(197,839 |
) |
|
|
(178,341 |
) |
|
|
(652,546 |
) |
|
|
(413,498 |
) |
Net income (loss) |
|
2,361,592 |
|
|
|
(192,844 |
) |
|
|
5,057,141 |
|
|
|
(5,249,172 |
) |
|
Non-controlling interest |
|
(272,347 |
) |
|
|
(514,534 |
) |
|
|
(1,654,380 |
) |
|
|
(299,646 |
) |
Net income (loss) attributable to NetSol |
$ |
2,089,245 |
|
|
$ |
(707,378 |
) |
|
$ |
3,402,761 |
|
|
$ |
(5,548,818 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share: |
|
|
|
|
|
|
|
Net income (loss) per common share |
|
|
|
|
|
|
|
|
Basic |
$ |
0.20 |
|
|
$ |
(0.07 |
) |
|
$ |
0.33 |
|
|
$ |
(0.57 |
) |
|
|
Diluted |
$ |
0.19 |
|
|
$ |
(0.07 |
) |
|
$ |
0.32 |
|
|
$ |
(0.57 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding |
|
|
|
|
|
|
|
Basic |
|
10,549,563 |
|
|
|
10,194,180 |
|
|
|
10,391,157 |
|
|
|
9,728,122 |
|
|
Diluted |
|
10,743,241 |
|
|
|
10,194,180 |
|
|
|
10,584,835 |
|
|
|
9,728,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NetSol Technologies, Inc. and
Subsidiaries |
Schedule 3: Consolidated Statement of Cash
Flows |
|
|
|
|
|
For the Year |
|
|
|
|
Ended June 30, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
Cash flows from operating
activities: |
|
|
|
|
Net income (loss) |
$ |
5,057,141 |
|
|
$ |
(5,249,172 |
) |
|
Adjustments to reconcile net income (loss) |
|
|
|
|
to net cash provided by operating activities: |
|
|
|
|
Depreciation and amortization |
|
7,152,139 |
|
|
|
10,343,814 |
|
|
Provision for bad debts |
|
237,703 |
|
|
|
(434,928 |
) |
|
(Gain) loss on sale of assets |
|
(23,930 |
) |
|
|
64,598 |
|
|
Stock issued for services |
|
1,264,618 |
|
|
|
1,375,149 |
|
|
Fair market value of warrants and stock options granted |
|
268,591 |
|
|
|
622,488 |
|
|
Changes in operating assets and
liabilities: |
|
|
|
|
Accounts receivable |
|
(3,758,422 |
) |
|
|
(871,959 |
) |
|
Accounts receivable - related party |
|
(2,564,819 |
) |
|
|
(1,179,931 |
) |
|
Revenues in excess of billing |
|
(4,987,772 |
) |
|
|
(2,997,449 |
) |
|
Revenues in excess of billing - related party |
|
(884,738 |
) |
|
|
(16,281 |
) |
|
Other current assets |
|
(729,359 |
) |
|
|
580,618 |
|
|
Accounts payable and accrued expenses |
|
558,033 |
|
|
|
726,700 |
|
|
Unearned revenue |
|
69,851 |
|
|
|
2,114,635 |
|
|
Net cash provided by operating
activities |
|
1,659,036 |
|
|
|
5,078,282 |
|
|
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
Purchases of property and equipment |
|
(3,335,921 |
) |
|
|
(3,558,712 |
) |
|
Sales of property and equipment |
|
986,433 |
|
|
|
1,102,615 |
|
|
Investment |
|
(555,556 |
) |
|
|
- |
|
|
Purchase of subsidiary shares from open market |
|
(767,397 |
) |
|
|
(577,222 |
) |
|
Net cash used in investing activities |
|
(3,672,441 |
) |
|
|
(3,033,319 |
) |
|
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
Proceeds from sale of common stock |
|
64,931 |
|
|
|
2,294,599 |
|
|
Proceeds from the exercise of stock options and warrants |
|
1,137,480 |
|
|
|
191,400 |
|
|
Proceeds from exercise of subsidiary options |
|
|
|
16,744 |
|
|
|
12,185 |
|
|
Restricted cash |
|
- |
|
|
|
2,438,844 |
|
|
Dividend paid by subsidiary to Non controlling interest |
|
(1,003,853 |
) |
|
|
(806,937 |
) |
|
Proceeds from bank loans |
|
1,333,406 |
|
|
|
1,410,313 |
|
|
Payments on capital lease obligations and loans - net |
|
(950,529 |
) |
|
|
(4,079,174 |
) |
|
Net cash provided by financing
activities |
|
598,179 |
|
|
|
1,461,230 |
|
Effect of exchange rate
changes |
|
(1,196,204 |
) |
|
|
(799,931 |
) |
Net increase (decrease) in cash and cash
equivalents |
|
(2,611,430 |
) |
|
|
2,706,262 |
|
Cash and cash equivalents, beginning of the period |
|
14,168,957 |
|
|
|
11,462,695 |
|
Cash and cash equivalents, end of
period |
$ |
11,557,527 |
|
|
$ |
14,168,957 |
|
|
|
|
|
|
|
|
NetSol Technologies, Inc. and
Subsidiaries |
Schedule 4: Reconciliation to
GAAP |
|
|
Three Months |
|
Three Months |
|
Year |
|
Year |
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
|
|
|
|
|
|
|
|
Net Income (loss) before preferred dividend, per GAAP |
$ |
2,089,245 |
|
|
$ |
(707,378 |
) |
|
$ |
3,402,761 |
|
|
$ |
(5,548,818 |
) |
Non-controlling interest |
|
272,347 |
|
|
|
514,534 |
|
|
|
1,654,380 |
|
|
|
299,646 |
|
Income taxes |
|
197,839 |
|
|
|
178,341 |
|
|
|
652,546 |
|
|
|
413,498 |
|
Depreciation and amortization |
|
1,834,725 |
|
|
|
3,259,099 |
|
|
|
7,152,139 |
|
|
|
10,343,814 |
|
Interest expense |
|
68,112 |
|
|
|
1,370 |
|
|
|
264,511 |
|
|
|
166,962 |
|
Interest (income) |
|
(44,710 |
) |
|
|
(70,341 |
) |
|
|
(161,794 |
) |
|
|
(331,432 |
) |
EBITDA |
$ |
4,417,558 |
|
|
$ |
3,175,625 |
|
|
$ |
12,964,543 |
|
|
$ |
5,343,670 |
|
Add back: |
|
|
|
|
|
|
|
Non-cash stock-based compensation |
|
692,800 |
|
|
|
411,050 |
|
|
|
1,533,209 |
|
|
|
1,997,637 |
|
Adjusted EBITDA, gross |
$ |
5,110,358 |
|
|
$ |
3,586,675 |
|
|
$ |
14,497,752 |
|
|
$ |
7,341,307 |
|
Less non-controlling interest (a) |
|
(1,007,875 |
) |
|
|
(1,721,389 |
) |
|
|
(4,356,858 |
) |
|
|
(4,008,592 |
) |
Adjusted EBITDA, net |
$ |
4,102,483 |
|
|
$ |
1,865,286 |
|
|
$ |
10,140,894 |
|
|
$ |
3,332,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average number of shares outstanding |
|
|
|
|
|
|
|
Basic |
|
10,549,563 |
|
|
|
10,194,180 |
|
|
|
10,391,157 |
|
|
|
9,728,122 |
|
Diluted |
|
10,743,241 |
|
|
|
10,233,625 |
|
|
|
10,584,835 |
|
|
|
9,767,657 |
|
|
|
|
|
|
|
|
|
Basic adjusted EBITDA |
$ |
0.39 |
|
|
$ |
0.18 |
|
|
$ |
0.98 |
|
|
$ |
0.34 |
|
Diluted adjusted EBITDA |
$ |
0.38 |
|
|
$ |
0.18 |
|
|
$ |
0.96 |
|
|
$ |
0.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)The reconciliation of adjusted EBITDA of non-controlling interest |
|
|
|
|
|
|
|
to net income attributable to non-controlling interest is as follows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (loss) applicable to non-controlling interest |
$ |
272,347 |
|
|
$ |
514,534 |
|
|
$ |
1,654,380 |
|
|
$ |
299,646 |
|
Income Taxes |
|
69,751 |
|
|
|
104,339 |
|
|
|
146,450 |
|
|
|
178,689 |
|
Depreciation and amortization |
|
600,763 |
|
|
|
1,095,632 |
|
|
|
2,388,098 |
|
|
|
3,442,235 |
|
Interest expense |
|
21,732 |
|
|
|
10,274 |
|
|
|
81,189 |
|
|
|
51,023 |
|
Interest (income) |
|
(7,901 |
) |
|
|
(15,526 |
) |
|
|
(41,565 |
) |
|
|
(98,638 |
) |
EBITDA |
$ |
956,692 |
|
|
$ |
1,709,253 |
|
|
$ |
4,228,552 |
|
|
$ |
3,872,955 |
|
Add back: |
|
|
|
|
|
|
|
Non-cash stock-based compensation |
|
51,183 |
|
|
|
12,136 |
|
|
|
128,306 |
|
|
|
135,637 |
|
Adjusted EBITDA of non-controlling interest |
$ |
1,007,875 |
|
|
$ |
1,721,389 |
|
|
$ |
4,356,858 |
|
|
$ |
4,008,592 |
|
|
|
|
|
|
|
|
|
From time to time, NetSol may refer to Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization
and Stock-based Compensation) and “non-GAAP adjusted EBITDA per diluted share or Adjusted EBITDA per diluted share” in its
conference calls and discussions with investors and analysts in connection with the company’s reported historical financial
results. Adjusted EBITDA does not represent cash flows from operations as defined by generally accepted accounting principles
(“GAAP”), is not derived in accordance with GAAP and should not be considered by the reader as an alternative to net income (the
most comparable GAAP financial measure to Adjusted EBITDA). Non-GAAP adjusted EBITDA per diluted share or Adjusted EBITDA per
diluted share is not derived in accordance with GAAP and should not be considered by the reader as an alternative to reported GAAP
diluted EPS. The reconciliation of GAAP and non-GAAP financial measures for the three and twelve month periods ended June 30,
2016 and 2015 are included in the above table. NetSol’s management believes that Adjusted EBITDA and Adjusted EBITDA per
diluted share are helpful as an indicator of the current financial performance of the company. NetSol also adjusts for non-cash
items, such as stock-based compensation as we believe excluding these costs provide a useful metric by which to compare performance
from period to period. Management strongly encourages investors to review the company’s consolidated financial statements in their
entirety and to not rely on any single financial measure in evaluating the company.