Asure Software's CEO Discusses Q1 2012 Results - Earnings Call Transcript

Asure Software, Inc.(ASUR)

Q1 2012 Earnings Call

May 15, 2012 11:00 am ET


Cheryl Trbula – Investor Relations

Patrick Goepel – Chief Executive Officer

David Scoglio – Vice President and Chief Financial Officer


Thomas Pfister – RedChip Companies



Good day, ladies and gentlemen, and welcome to the Asure Software’s Corporate Conference Call. My name is [Juanita], and I’ll be your coordinator for today. At this time, all participants are in a listen-only mode. We will facilitate a question-and-answer session towards the end of today’s presentation. (Operator Instructions)

I would now like to turn the call over to Cheryl Trbula, Asure Software. Please proceed.

Cheryl Trbula

Thank you, [Juanita] and welcome everyone to Asure Software’s conference call. Before we start, I would 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 maybe made on this call that are not historical are subject to a number of risks and uncertainties that could affect their outcomes.

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

This call is being recorded on behalf of Asure Software and is copyrighted material. It cannot be re-recorded or re-broadcast without the company’s expressed permission and your participation implies consent to the calls reporting. After we completed our review of the quarter, we will 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?

Patrick Goepel

Thanks, Sheryl, and then on behave of Asure, I’d like to personally welcome all investors, analysts, clients, employees and other interested parties to our first quarter conference call. The first quarter was phenomenal start and (inaudible) activity to the year.

We are reaffirming guidance right upfront of $18 million in revenue and $4 million EBITDA less from one-time items. We are especially pleased with our multiple activities that we accomplish this quarter. First of all, we have new branding and new the branding of Asure is AsureForce and AsureSpace.

AsureForce formerly time and attendance. AsureSpace is meeting for manager and we are especially pleased with the way to look and feel of the branding and the roll out has gone. This will allow us to have an umbrella product as we layer in acquisitions and new clients. We feel AsureForce and Space have the right names for the market and the market recognizes these names in order to get growth. And 2012 is all about growth. As I mentioned last quarter, we’ve gone from a turnaround to a growth company.

Secondly, we’ve realized new products this quarter. First of all, we had a rollout of our mobile applications, which we’re very pleased with. Our market adoption and client adoption is starting to gain momentum and the mobile apps is obviously the way of the future and the future is happening right now of Asure. Also we’ve realized our new product offering Ocean, which is being released to our partners now and as well as our direct clients and the market excitement for our new products in Asure for us it was been exciting to happen and it’s taken us about a year to get there. So we’re very please and we think Ocean will do very, very well.

Operationally, we closed India and Canada and this was the long time coming, when I first started we are very spread out, we are consolidating around Warwick, Rhode Island and Austin, Texas. And this plan has been singled for quite sometime and we completed the operation consolidation in the first quarter.

Finally on the financial side, the first quarter we finalized our convertible bond offering and took away the mark-to-market accounting, which really going for will add predictability to the business. So we took a charge this quarter it will be our last charge the non-cash charge and going forward will have much predictability.

Finally, we also did a 3-for-2 stock split. And as I’ve been doing towards on our stock and going to the market, it became apparent that institutions wanted more ability to buy our shares and they were concerned about our flow. So we did a bold move and we went to a 3-for-2 split and when the stock was in a $7 to $8 range. I think it signals for management they were bullish going forward. We now have close to 5 million shares outstanding and what that I will do for is Asure will allow not only the retail investors to invest in Asure, but it will also allow institutions to now invest in Asure and we think it will be good for all shareholders going forward.

Finally, I would be – I didn’t talk about our call booking, in fact I invited Mike Kinney on the conference call today and cloud bookings were up 80% year-over-year or – excuse me, sequentially quarter-over-quarter, 40% year-over-year. The big names that we had in the quarter were GE and we had a couple of divisions of G.E. Kaiser, KPMG or Harley-Davidson, Data Financial, J&J, maintenance and moppet.

And what was exciting about the client names were we really had clients sign up for our services all over the world. G.E. was in Japan. In Europe we had KPMG, in United States Harley-Davidson dealer services really covered all of the United States and then we had regional players as well.

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