AmpliTech's Momentum Continues with 3Q 2019 Results

BOHEMIA, N.Y., Nov. 12, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – AmpliTech Group, Inc. (OTCQB: AMPG)

Revenue for the nine months to September 30, 2019 reaches $3.06 million on a Pro Forma basis ($2.01 million actual).

Cash on Hand reaches $982 thousand.

Order Book stands at $1,590,000.

AmpliTech Group Inc. (AMPG), a leading high performance RF Microwave components producer, today announced financial results for its third quarter ended September 30, 2019.

“We are delighted with the progress we have made to date in 2019, including the continued organic growth of our core business, the closing of the SMW asset acquisition on September 12, 2019, the creation of our “ipStory” and product roadmap, the hiring of new leadership in the areas of Sales and Engineering and the appointment of advisers to assist us with our next phase of growth,” said Fawad Maqbool, CEO of AMPG.

Key Highlights for the period are noted below:

• Sales for the most recent quarter grew 33.7% to $708.9 thousand vs. $530.1 thousand in 2018;
• Sales for the nine-month period to September 30, 2019 grew 27.9% to $2.02 million vs. $1.58 million in 2018;
• The result in the most recent quarter included sales from the recent acquisition of Specialty Microwave for the period from September 12- 30th of $125.6 thousand;
• Gross profit for the most recent quarter grew 25.0% to $350.4 thousand vs. $280.3 thousand in 2018;
• Gross profit for the nine-month period to September 30, 2019 grew 15.6% to $1.04 million vs. $899.8 thousand in 2018;
• Gross profit margin in the most recent nine-month period was 51.3% vs. 57.0% in 2018 due to the increase in mix of business shifting from in-house to outsourced production, where gross margins are less, but operating efficiencies are greater;
• Net Income for the most recent quarter was a loss of $138.4 thousand vs. a profit of $6.7 thousand in 2018;
• Net Income for the nine-month period to September 30, 2019 was a loss of $11.2 thousand vs. a profit of $121.0 thousand in 2018;
• The decrease in net profit in 2019 to date vs. 2018 was a result of costs associated with the SMW asset acquisition of $76.7 thousand as well as the cost of consultants and other non-cash costs as outlined in the attached Non-GAAP EBITDA Worksheet;
• Non-GAAP Adjusted EBITDA, which excludes non-cash costs and costs associated with the SMW asset acquisition, as defined in the attached EBITDA Worksheet, for the most recent quarter grew 89.3% to $64.0 thousand vs. $33.8 thousand in 2018; and
• Non-GAAP Adjusted EBITDA for the nine-month period to September 30, 2019 grew 82.6% to $330.9 thousand vs. $181.2 thousand in 2018.
• The 10-Q also contains the details for SMW acquisition, which closed on September 12, 2019, including a Pro Forma analysis of the financials assuming that SMW had been acquired on January 1, 2018:
• For the most recent quarter, the Pro Forma sales for the Company (including SMW) grew 21.1% to $1.09 million vs $900.1 thousand in 2018; and
• Pro Forma Sales for the nine months to September 30, 2019 grew 15.9% to $3.06 million vs $2.64 million in 2018.

A more detailed analysis of the Pro Forma analysis of the SMW acquisition will be contained in the Super 8-K which will be filed by November 27, 2019.

In addition to the successful completion of the SMW assets acquisition during the most recent quarter, the Company has taken a number of other initiatives to further the Company’s growth, including the completion of the “ipStory”, which was recently shared with shareholders, the appointment of Maxim Group LLC to assist the Company with its growth strategy and to help articulate that strategy to the investment community and the hiring of a Director of Sales and a Director of Engineering, bringing significant experience and leverage to the Company’s leadership team.

“We are beginning to see the synergies from the SMW assets acquisition taking hold, with a number of new opportunities on the horizon for 4Q and 2020,” said Mr. Maqbool.  “In addition, John Pastore joined our team as Director of Sales in August. John has over 37 years’ experience in senior sales roles in our industry and is responsible for overseeing our global sales/marketing efforts across the AMPG/SMW platform.  In addition, Brandon Worster recently joined our team as Director of Engineering.  Brandon has over 14 years’ experience in our industry and specializes in low noise amplifiers and filters, two of our core areas of focus.” The addition of John and Brandon to our leadership team will allow me to leverage myself into a more strategic leadership role for our company as we embark on our next phase of growth, which includes the design of new products, the execution of our “ipStory”, and the promotion of our Company among the investment community with the help of Maxim Group LLC as we work towards our ultimate objective of listing on Nasdaq.”

About AmpliTech Group, Inc.

AmpliTech Group, Inc. designs, develops, and manufactures custom and standard state-of-the-art RF components for the Domestic and International, SATCOM, Space, Defense and Military markets. These designs cover the frequency range from 50 kHz to 40 GHz - eventually, offering designs up to 100 GHz. AmpliTech also provides consulting services to help with any microwave components or systems design problems. Our steady growth over the past 13+ years has come about because we can provide complex, custom solutions for nearly ANY custom requirements that are presented us. In addition, we have the best assemblers, wires, and technicians in the industry and can provide contract assembly of customers' own designs. Click here to view AmpliTech video. Website: http://www.AmpliTechinc.com

Use of Non-GAAP Financial Information

EBITDA and Adjusted EBITDA is a financial measure that is not calculated in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Management believes that because Adjusted EBITDA excludes (i) certain non-cash expenses (such as depreciation, amortization and stock-based compensation) and (ii) expenses that are not reflective of the Company's core operating results over time (such as restructuring costs, litigation or dispute settlement charges or gains, and transaction-related costs), this measure provides investors with additional useful information to measure the Company's financial performance, particularly with respect to changes in performance from period to period. Edison Nation management uses EBITDA and Adjusted EBITDA (a) as a measure of operating performance; (b) for planning and forecasting in future periods; and (c) in communications with the Company's Board of Directors concerning Edison Nation's financial performance. The Company's presentation of EBITDA and Adjusted EBITDA are not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation and should not be used by investors as a substitute or alternative to net income or any measure of financial performance calculated and presented in accordance with U.S. GAAP. Instead, management believes EBITDA and Adjusted EBITDA should be used to supplement the Company's financial measures derived in accordance with U.S. GAAP to provide a more complete understanding of the trends affecting the business.

Forward-looking Statements

This release contains statements that constitute forward-looking statements. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.

CONTACT: Fawad Maqbool, CEO, AmpliTech Group, Inc. (631) 521-7831

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