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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