Asure Software Reports Second Quarter Results

  • Q2 EBITDA of $838,000, excluding one-time items; vs. guidance range of $740,000 to $840,000  
  • Q2 Revenue of $4.2 million vs. guidance range of $4.10 to $4.20 million  
  • Q2 Earnings of $0.03 per share, excluding one-time items

AUSTIN, Texas, Aug. 14, 2012 (GLOBE NEWSWIRE) -- Asure Software, Inc. (Nasdaq:ASUR), a leading provider of workplace management software, announced results for the second quarter ended June 30 th, 2012.

Second quarter results, excluding one-time items, included earnings of $0.03 per share and EBITDA of $838,000. One-time acquisition-related legal and professional services, site consolidation and other one-time expenses related to Asure's acquisitions of PeopleCube, ADI Time and Legiant amounted to $487,000, or ($0.10) per share.

Asure recently split the company's common stock on a 3-for-2 basis, in the form of a 50% stock dividend.  This split went into effect on May 1, 2012.

KEY FACTS FOR Q2:

Second quarter revenue was $4.2M, a 0.5% increase over the prior quarter, and a 73% increase over the second quarter of 2011. The year over year increase was largely driven by the full quarter effect of the acquisitions of ADI Time and Legiant, which occurred in the fourth quarter of 2011. Asure's recurring revenue as a percentage of overall revenue remained strong at 76%.  Gross margins improved sequentially by one point, to 76%.  Total bookings increased 8% sequentially, while cloud bookings were down 30% sequentially, largely due to successful seasonal promotions for our AsureForce offerings in the first quarter.

"The second quarter of 2012 recognized continued strong growth in organic cloud bookings," commented Pat Goepel, Asure Software's Chief Executive Officer. "The increase of 10% year over year with first year contract comparisons confirms the results of our strategy, as well as the acceptance of our products in the market. We expect this trend to continue as we execute organic and inorganic growth in the workplace management space."

David Scoglio, Asure's Chief Financial Officer added, "Asure posted a strong second quarter financially as EBITDA and revenue were at the upper end of published guidance.  Free cash flow for the quarter, at $223K, fell below earlier guidance due to effects of the acquisition of PeopleCube, lower bookings and slightly higher capital expenditures."  See tables below for details around Asure's financial results and guidance.            
2012 / 2013 Guidance      
$000s      
       
  Q3 '12 Q4 '12 FY '13
Revenue 6,900-7,100 7,800-8,100 31,000
EBITDA Gain, excl. 1-time items 1,100-1,300 1,900-2,200 9,000
Free Cash Flow     7,000

Conference Call Details

Asure Software will follow this announcement with a conference call for the investment community on Tuesday August 14, at 11:00 a.m. EDT, (10:00 a.m. CDT) to further discuss the quarter and outlook.  Participating in the call will be Pat Goepel, Chief Executive Officer and David Scoglio, Chief Financial Officer.  To participate, dial (877) 853-5636 ten minutes before the call begins. International callers should dial (631) 291-4544.  The conference ID for all callers is 15153489.

Investors, analysts, media and the general public will also have the opportunity to listen to the conference call in listen-only mode via the Internet by visiting the investor relations page of Asure's web site at www.asuresoftware.com. To monitor the live call, please visit the web site at least ten minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, an archived replay will be available shortly after the call at http://investor.asuresoftware.com/

About Asure Software

Asure Software, Inc. (Nasdaq:ASUR), is headquartered in Austin, Texas. Asure Software's intuitive and innovative technologies enable companies of all sizes and complexities to operate more efficiently. Simply put, we turbocharge your workplace by stimulating your workforce and maximizing your company's resources while eliminating waste out of employee's workflow.

Asure Software is an industry leader in providing cloud-based workplace management solutions. Over 11,000 clients deploy our workplace management software products, hardware products, services and support to improve their workforce and workplace processes. For more information, please visit Asure's Web site at www.asuresoftware.com

The Asure Software, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11986

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

Statements in this press release regarding Asure's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. Such risks and uncertainties could cause actual results to differ from those contained in the forward-looking statements.

*Non-GAAP Financial Measures

This press release includes the following financial measures defined as a non-GAAP financial measure by the Securities and Exchange Commission: EBITDA and GAAP Net Income/(Loss) excluding one-time items. These supplemental financial measures are not required by GAAP, nor are the presentation of this financial information intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management recognizes that non-GAAP financial measures have limitations in that they do not reflect all of the items associated with Asure's earnings results as determined in accordance with GAAP. However, for the reasons described below, management uses these non-GAAP measures to evaluate the performance of Asure's business. Asure's management believes that it is important to provide investors with these same tools, together with reconciliation to GAAP, for evaluating the performance of Asure's business, as it may provide additional insight into Asure's financial results. See the "Reconciliation of GAAP Net Income/(Loss) to Earnings Before Interest, Taxes, Depreciation, Amortization and Stock Compensation Expense (EBITDA)" and the "Reconciliation of GAAP Net Income/(Loss) to Net Earnings Excluding One-Time Items" tables included in this press release for further information regarding these non-GAAP financial measures. In addition, these measures are presented because management believes they are frequently used by securities analysts, investors and others in the evaluation of companies.

EBITDA is calculated by adding income taxes, interest expense, depreciation and amortization and stock compensation expense to net earnings, EBITDA is not defined under GAAP and should not be considered in isolation or as a substitute for net earnings and other consolidated earnings data prepared in accordance with GAAP or as a measure of Asure's profitability.

Net Earnings Excluding One-Time Items is calculated by combining the company's GAAP Net Earnings, or earnings per share, with items that are one time in nature and are not expected to recur on a dollar or per share basis.

Free Cash Flow is computed by subtracting capital expenditures from cash flow from operations, each as determined in accordance with GAAP and as reflected in the statement of cash flows.
Reconciliation of GAAP Net Earnings to Earnings Before Interest, Taxes, Depreciation, Amortization and Stock
Compensation Expense (EBITDA) and EBITDA Gain Excluding 1 Time Costs.
       
FOR THE THREE MONTHS ENDING
$000s June 30, 2012 June 30, 2011 Inc/Dec
Net Gain/(Loss)  (323) 27  (350)
Interest 174 12 162
Interest - Mark to Market 0 0 0
Tax 120 12 108
Depreciation 58 38 20
Amortization 357 195 162
Stock Compensation 25 14 11
EBITDA Gain 411 298 113
1 Time Costs 427 60 367
EBITDA Gain excl. 1 Time Costs 838 358 480
       
Reconciliation of GAAP Net Earnings to Earnings Before Interest, Taxes, Depreciation, Amortization and Stock
Compensation Expense (EBITDA) and EBITDA Gain Excluding 1 Time Costs.
       
FOR THE SIX MONTHS ENDING
$000s June 30, 2012 June 30, 2011 Inc/Dec
Net Gain/(Loss)  (1,170)  (33)  (1,137)
Interest 364 22 342
Interest - Mark to Market (MTM) 465 0 465
Tax 165 21 144
Depreciation 105 81 24
Amortization 714 390 324
Stock Compensation 35 28 7
EBITDA Gain 678 509 169
1 Time Costs Exc. MTM & Taxes 936 116 820
EBITDA Gain excl. 1 Time Costs 1,614 625 989
 
Reconciliation of GAAP Net Earnings to Net Earnings Excluding 1-Time Items 
     
  FOR THE THREE MONTHS ENDED
$000s  JUNE 30
  2012 2011
Net Gain/(Loss)  (323) 27
Legal & Professional Services 298 0
Severance & Recruitment 60 23
Site Consolidation 50 0
3:2 Stock Split 19 0
Provision for Taxes - Site Shut down 60 0
Other 1-Time Items (net) 0 37
sub-total ex Taxes 427 60
Sub-total 1-Time Costs 487 60
Net Gain Excl. 1-Time Costs 164 87
     
Reconciliation of GAAP Net Earnings to Net Earnings Excluding 1-Time Items 
     
  FOR THE SIX MONTHS ENDED 
$000s  JUNE 30
  2012 2011
Net Gain/(Loss)  (1,170)  (33)
Legal & Professional Services 543 0
Severance & Recruitment 97 79
Site Consolidation 50 0
Interest - Mark to Market 465 0
Loss on Conversion of Debt 199 0
3:2 Stock Split 19 0
Provision for Taxes - Site Shut down 60 0
Other 1-Time Items (net) 28 37
sub-total excl. MTM & Taxes 936 116
Sub-total 1-Time Costs 1,461 116
Net Gain Excl. 1-Time Costs 291 83
 
 
ASURE SOFTWARE, INC.
 CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share data)
(Unaudited)
     
  June 30, December 31,
  2012 2011
ASSETS    
Current Assets:    
Cash and equivalents  $ 1,493  $ 1,067
Accounts receivable, net of allowance for doubtful accounts of $56 and $19 at June 30, 2012 and December 31, 2011, respectively 1,603 1,483
Notes receivable 24 96
Inventory 156 116
Prepaid expenses and other current assets 263 338
Total Current Assets 3,539 3,100
     
Property and equipment, net 424 414
Intangible assets, net 5,593 6,307
Goodwill 6,259 6,264
Other 18 --
Total Assets  $ 15,833  $ 16,085
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current Liabilities:    
Line of credit  $ 555  $ 500
Current portion of notes payable 109 349
Accounts payable 1,497  1,097
Accrued compensation and benefits 243 141
Other accrued liabilities 641 536
Deferred revenue 4,697 4,792
Total Current Liabilities 7,742 7,415
     
Long-term liabilities:    
Deferred revenue 170 169
Subordinated notes payable 4,375 4,323
Subordinated convertible notes payable 301 1,247
Derivative liability --  835 
Other long-term obligations 28 32
Total Long-Term Liabilities 4,874 6,606
     
Stockholders' Equity:    
Preferred stock, $.01 par value; 1,500 shares authorized; none issued or outstanding -- --
Common stock, $.01 par value; 11,000 shares authorized; 5,366 and 5,014 shares issued; 4,982 and 4,630 shares outstanding at June 30, 2012 and December 31, 2011, respectively 337 334
Treasury stock at cost, 384 shares at June 30, 2012 and December 31, 2011  (5,017)  (5,017)
Additional paid-in capital  273,361  271,065
Accumulated deficit  (265,362)  (264,190)
Accumulated other comprehensive loss  (102)  (128)
Total Stockholders' Equity 3,217 2,064
Total Liabilities and Stockholders' Equity  $ 15,833  $ 16,085
     
The notes in the Company's forthcoming 10-Q are an integral part of these condensed consolidated financial statements.
 
 
ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)
         
  FOR THE FOR THE
  THREE MONTHS ENDED SIX MONTHS ENDED
  JUNE 30 JUNE 30
  2012 2011 2012 2011
Revenues  $ 4,205  $ 2,434  $ 8,357  $ 4,791
Cost of Sales  (991)  (437)  (2,037)  (877)
Gross Margin 3,214 1,997 6,320 3,914
         
Operating Expenses:        
Selling, general and administrative 2,334 1,413 4,467 2,815
Research and development 591 393 1,181 784
Amortization of intangible assets 292 150 586 298
Total Operating Expenses 3,217 1,956 6,234 3,897
         
Income/(Loss) From Operations  (3) 41 86 17
         
Other Income (Expenses):        
Interest income 1 4 2 6
Foreign currency translation (loss)/gain  (1) 1  (29)  (20)
(Loss) on disposal of assets  (26) --  (36) --
(Loss) on debt conversion -- --  (198) --
Interest expense- amortization of OID and derivative mark-to market  (56) --  (591) --
Interest expense and other  (118)  (7)  (238)  (15)
Total Other Income (Expense)  (200)  (2)  (1,090)  (29)
         
(Loss)/Income From Operations Before Income Taxes  (203) 39  (1,004)  (12)
Income Tax Expense   (120)  (12)  (166)  (21)
Net (Loss)/Income  $ (323)  $ 27  $ (1,170)  $ (33)
         
Basic (Loss)/Income Per Share  $ (0.06)  $ 0.01  $ (0.24)  $ (0.01)
Diluted (Loss)/Income Per Share  $ (0.06)  $ 0.01  $ (0.24)  $ (0.01)
         
Shares Used In Computing Basic (Loss)/Income Per Share 4,982 4,627 4,841 4,627
Shares Used In Computing Diluted (Loss)/Income Per Share 4,982 4,632 4,841 4,627
         
The notes in the Company's forthcoming 10-Q are an integral part of these condensed consolidated financial statements.
 
 
ASURE SOFTWARE, INC.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(In thousands)
(Unaudited)
         
  FOR THE FOR THE
  THREE MONTHS ENDED SIX MONTHS ENDED
  JUNE 30 JUNE 30
  2012 2011 2012 2011
Net (Loss)/Income  $ (323)  $ 27  $ (1,170)  $ (33)
Other comprehensive (Loss)/Income:        
Foreign currency translation (Loss)/Gain  (2)  (4)  26 9
Comprehensive Income / (Loss)  (325) 23  (1,144)  (24)
         
The notes in the Company's forthcoming 10-Q are an integral part of these condensed consolidated financial statements.
 
 
ASURE SOFTWARE, INC.
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands, except per share data)
(Unaudited)
     
  FOR THE SIX MONTHS 
  ENDED 
  JUNE 30
  2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss  $ (1,170)  $ (33)
Adjustments to reconcile net loss to net cash provided by operations:    
Depreciation and amortization 819 471
Provision for doubtful accounts 37  (32)
Share-based compensation 35 28
Interest expense – amortization of OID and derivative mark-to-market 591 --
Loss on sale/disposal of assets 36 --
Loss on debt conversion 198 --
     
Changes in operating assets and liabilities:    
Notes receivable --  (3)
Accounts receivable  (157) 297
Inventory  (40) 15
Prepaid expenses and other current assets 62 26
Accounts payable 400  (9)
Accrued expenses and other long-term obligations 221  (34)
Deferred revenue  (94) 290
Net cash provided by operating activities 938 1,016
     
CASH FLOWS FROM INVESTING ACTIVITIES:    
     
Net purchases of property and equipment  (151)  (45)
(Issuance) or collection of note receivable 72 --
Net cash used in investing activities  (79)  (45)
     
CASH FLOWS FROM FINANCING ACTIVITIES:    
Payments on notes payable and capital leases  (308)  (24)
Payments on notes payable conversion  (222) --
Proceeds from Line of credit 55 --
Net proceeds from exercise of options 16 --
Net cash used in financing activities  (459)  (24)
     
Effect of translation exchange rates 26 9
     
Net increase in cash and equivalents 426 956
Cash and equivalents at beginning of period 1,067 1,070
Cash and equivalents at end of period  $ 1,493  $ 2,026
     
     
SUPPLEMENTAL INFORMATION:    
Interest Paid  $ 189 --
Payments of accelerated interest on subordinated convertible notes payable on conversion 211 --
Non-Cash Financing Activity – conversion of subordinated convertible notes payable to equity 969 --
     
The notes in the Company's forthcoming 10-Q are an integral part of these condensed consolidated financial statements.
CONTACT: For more information contact:                  David Scoglio, CFO         Asure Software, Inc.         512-437-2732         dscoglio@asuresoftware.com                  Jon Cunningham         RedChip Companies, Inc.         Tel: +1-800-733-2447, Ext. 107         info@redchip.com         http://www.redchip.com

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