Asure Software, Inc. ( ASUR)

Q3 2011 Earnings Call

November 08, 2011 11:00 AM ET


Cheryl Trbula – IR

Pat Goepel – CEO

Dave Scoglio – VP and CFO


Mike Chadwick – Private Investor


Good day, ladies and gentlemen, and welcome to the Second Quarter 2010 Asure Software Corporate Conference Call. My name is Mary, and I’ll be your operator for today. At this time, all participants are in a listen-only mode. We will conduct a question-and-answer session towards the end of today’s presentation.

I would now like to turn the conference over to Cheryl Trbula of Asure Software. Please proceed.

Cheryl Trbula

Thank you, Mary and welcome, everyone, to Asure Software’s conference call. Before we start, I’d like to mention that some of the statements made by management during this call might include projections, estimates, and other forward-looking information. This will include any discussion of the company’s business outlook. These particular forward-looking statements and all of the statements that may be made on this call that are not historical are subject to a number of risks and uncertainties that could affect their outcomes.

You are urged to consider the risk factors relating to the company’s business contained in our latest periodic reports on file with the Security and Exchange Commission. These risk factors are important, and they could cause actual results to differ materially.

This call is also being recorded on behalf of Asure Software and is copyrighted material. It cannot be recorded or rebroadcast without the company’s expressed permission and your participation implies consent to the call’s recording. After we’ve completed our review of the quarter, we’ll open up the call for questions for the financial analyst community.

I would now like to turn the call over to Pat Goepel, CEO of Asure Software. Pat?

Pat Goepel

Thanks Cheryl and I’d like Operator: welcome investors, partners, clients, employees and interested parties of Asure software. We hope that you’re pleased with third quarter results in our press released we announced that we have third quarter results of $0.06 per share excluding one-time items, $0.01 all in, if you will, and our EBITDA was 462 including one-time items. So we were very pleased with the financial results and Dave Scoglio will talk about that in greater detail.

But we’re also excited about the progress we made this quarter. Asure is becoming a very predictable business, a very strong business and a business that is starting to get its growth legs underneath it and we’re excited about that. Some activities in the quarter that we’re excited about is, first of all we’d like to welcome the good folks of ADI (inaudible) out of Warwick, Rhode Island.

We made an acquisition on October 1 st. A lot of the activity or the due diligence of that acquisition happened in the third quarter and we are very excited to close on October 1 st the ADI acquisition. We think this strategic acquisition will help us in the time and attendance marketplace a great deal. We had products and services that we’re addressing the small and middle markets in the white collar environment and now we have products and services that will enable us to serve all marketplaces.

ADI was very strong in the blue and grey collar and they were very strong in the area of clocks and biometric clocks and so we’re excited about offering that complete solution to our clients and our prospects in the marketplace. So that was the significant milestone in the future of Asure and we’d like to welcome all the employees.

Also from a marketplace, we developed a new website, it’s just been launched now and many of the development happened in the third quarter was launched on Monday. You’d be able to see that new website on We’re also been very active in mobile products and mobile product development and our clients have been asking and we think this will solidify many multi-year partnerships with them.

Speaking of clients, we won many clients this quarter and we’re excited about that. First of all, public broadcasting services or PBS was a new client of NetSimplicity this quarter, US Army Reserves, John Hopkins Hospital, California State College as well, Notre Dame High School and Max Properties join iEmployee family and we’re part of those client relationship. Bookings were very strong and iEmployee where we had another quarter of double digit revenue growth, or booking growth especially in the cloud based offerings.

NetSimplicity was the little bit of a tougher compare. We anticipate returning to double digit books in the fourth quarter. Our partnerships with Oasis and Novara yielded results in the third quarter and we’re proud of those partnerships. We also see continued growth in the fourth quarter with both of those partnerships and I’d like to remind investors that we have about 15 partners with the ADI transaction and now we have more products and services to offer them and we’re very excited about those conversations going into the fourth quarter. One of the clients early on that added more business with us was Sun-Maid Raisin and we’re very excited about that client engagement.

Our repetitive revenue transformation is continuing with about 80% topline revenue now on a repetitive revenue basis and our deferred revenue is up very strongly and we’re very proud of that metric and that transformation of the business. So that's going to bode well as we have a discussion about next quarter and next year and we’ll do that after Dave Scoglio talks more specifically about this quarter. Our cash and collection metrics were very strong and Dave will expand on that as well.

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