ASURE SOFTWARE INC - FORM 8-K - EX-99.1 - May 15, 2012

Attached files

file filename
8-K - ASURE SOFTWARE INCasuresoftware8k051512.htm
 
Exhibit 99.1
 
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
 
Asure Software Reports First Quarter Results

·  
Q1 Revenue of $4.15 million vs. guidance range of $4.10 to $4.20 million
 
·  
Q1 EBITDA of $776,000, excluding one-time items and mark to market; vs. guidance range of $700,000 to $800,000
 
·  
Q1 Earnings of $0.03 per share, excluding one-time items and mark to market
 
·  
Organic Cloud Bookings growth of 80% and Organic Total Bookings growth of 31% sequentially; and year over year growth of 40% and 2% respectively
 
·  
Free Cash Flow of $564,000 vs. guidance range of $500,000 to $650,000 
 
AUSTIN, Texas, May 15, 2012 (GLOBE NEWSWIRE) -- Asure Software, Inc. (Nasdaq:ASUR), a leading provider of workplace management software, announced results for the first quarter ended March 31, 2012.
 
First quarter results, excluding one-time items and mark to market, included earnings of $0.03 per share and EBITDA of $776,000.
 
One-time items contributed ($0.21) per share.  Acquisition-related legal and professional services, site consolidation and other one-time expenses related to Asure’s acquisitions of ADI Time and Legiant amounted to $310,000, or ($0.07) per share. Mark to market charges related to the conversion of $1.15 million of convertible debt during the first quarter contributed $664,000, or ($0.14) 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 Q1:
 
First quarter revenue was $4.15M, a 14% increase over the prior quarter, and a 76% increase over the first quarter of 2011. The $0.5 million sequential increase was largely driven by the full quarter effect of the acquisition of Legiant, which occurred late in the fourth quarter of 2011. Asure’s recurring revenue as a percentage of overall revenue increased one point to 76%, including acquisitions. Gross margins held steady at 75% sequentially.  
 
 “We are pleased with our financial results for the first quarter of 2012 as we continued to execute our strategy of growth through cloud based solutions.” commented Pat Goepel , Asure Software’s Chief Executive Officer. “Our strong cloud bookings growth of 80% sequentially confirms the continued adoption of the Asure Software workplace management solutions. These solutions put us in a unique position as corporations take advantage of cloud-based applications for their business infrastructure.”

David Scoglio, Asure’s Chief Financial Officer added, “Asure posted a strong first quarter financially as EBITDA, cash growth and revenue fell within published guidance. Deferred revenue grew marginally over last quarter as well. Additionally, we are happy to report that $1.15 million in convertible debt was converted to equity in the first quarter. Not only does this relieve us of future cash interest and principal, but we were able to modify the remaining $.35 million of convertible debt to avoid the necessity of a separate accounting requirement in the future. In the first quarter, we took a one time P&L charge of $664,000 related to this conversion and modification. The conversion also substantially boosted our owner’s equity which ended the quarter at $3.5M.” Quarterly guidance for the year is listed below.
 
 
 
 
 
2012 Guidance

$000s, except for EPS

   
Actual
    
Guidance
  
   
Q1 '12
    
Q2 '12
    
Q3 '12
    
Q4 '12
    
FY '12
  
Revenue
     4,153       4,100 - 4,200       4,490 - 4,590       5,060 - 5,260       17,800 - 18,200  
EBITDA Gain, excl. 1 time items
     776       740 - 840       880 - 980       1,410 - 1,610       3,800 - 4,200  
EPS, excl. 1 time items
   $ 0.03     $ 0.01 - $0.03     $ 0.04 - $0.06     $ 0.16 - $0.20     $ 0.24 - $0.32  
Free Cash Flow
     564       500 - 600       650 - 750       1,100 - 1,300       2,800 - 3,200  

Conference Call Details
Asure will follow this announcement with a conference call for the investment community on Tuesday May 15, 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 78407380.
 
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’s number one priority is to delight our clients and support their change initiatives. We ensure a high-performing work environment by integrating our "keep it simple" solutions and expertise to over 3,500 plus clients worldwide. Asure Software’s suite of solutions range from time and attendance workforce management solutions to asset optimization and meeting room management.  For more information, please visit 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 Net Earnings Excluding 1-Time Items and GAAP Net Earnings excluding Mark to Market
  
             
 
  
FOR THE THREE MONTHS ENDED MARCH 31
  
$000s  
2012
    
2011
  
Net Gain/(Loss)
     (847 )     (60 )
Legal & Professional Services
     245       0  
Severance & Recruitment
     37       0  
Interest - Mark to Market
     465       0  
Loss on Conversion of Debt
     199       0  
Other 1-Time Items (net)
     28       56  
sub-total excl. Mark to Market
     509       56  
Total 1 Time Costs
     974       56  
Net Gain Excl. 1 Time Items
     127       (4 )
 
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  
March 31, 2012
    
March 31, 2011
    
Inc/Dec
  
Net Gain/(Loss)
     (847 )     (60 )     (787 )
Interest
     190       10       180  
Interest - Mark to Market
     465       0       465  
Tax
     45       9       36  
Depreciation
     47       43       4  
Amortization
     357       194       163  
Stock Compensation
     10       15       (5 )
EBITDA Gain
     267       211       56  
1 Time Costs excl. MTM & 1 Time Taxes
     509       56       453  
EBITDA Gain excl. 1 Time Items
     776       267       509  

 
 
 

 ASURE SOFTWARE, INC.
CONDEN SED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share data)
(Unaudited)
 
  
  
March 31,
2012
    
December 31,
2011
  
ASSETS
            
 Current Assets:
            
  Cash and equivalents
  
$
1,189
    
$
1,067
  
  Accounts receivable, net of allowance for doubtful accounts of $56 and $19 at
      March 31, 2012 and December 31, 2011, respectively
    
1,491
      
1,483
  
  Notes receivable
    
73
      
96
  
  Inventory
    
113
      
116
  
  Prepaid expenses and other current assets
    
285
      
338
  
Total Current Assets
    
3,151
      
3,100
  
                 
 Property and equipment, net
    
397
      
414
  
 Intangible assets, net
    
5,950
      
6,307
  
 Goodwill
    
6,259
      
6,264
  
 Other
    
6
      
-
  
 Total Assets
  
$
15,763
    
$
16,085
  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
 Current Liabilities:
                
      Line of credit
  
$
500
    
$
500
  
  Current portion of notes payable
    
100
      
349
  
  Accounts payable
    
1,234
      
  1,097
  
  Accrued compensation and benefits
    
160
      
141
  
  Other accrued liabilities
    
551
      
536
  
  Deferred revenue
    
4,860
      
4,792
  
Total Current Liabilities
    
7,405
      
7,415
  
                 
 Long-term liabilities:
                
      Deferred revenue
    
166
      
169
  
      Subordinated notes payable
    
4,350
      
4,323
  
      Subordinated convertible notes payable
    
296
      
1,247
  
      Derivative liability
    
- 
      
835 
  
      Other long-term obligations
    
30
      
32
  
Total Long-Term Liabilities
    
4,842
      
6,606
  
                 
  Stockholders’ Equity:
                
  Preferred stock, $.01 par value; 1,500 shares authorized; none issued or outstanding
    
—
      
—
  
  Common stock, $.01 par value; 6,500 shares authorized; 5,365 and 5,014 shares
  issued; 4,981 and 4,630 shares outstanding at March 31, 2012 and December 31, 2011,  respectively
    
336
      
334
  
  Treasury stock at cost, 384 shares at March 31, 2012 and December 31, 2011
    
(5,017
) 
    
(5,017
)
  Additional paid-in capital
    
273,334
      
271,065
  
  Accumulated deficit
    
(265,037
) 
    
(264,190
)
  Accumulated other comprehensive loss
    
(100
) 
    
(128
)
Total Stockholders’ Equity
    
3,516
      
2,064
  
Total Liabilities and Stockholders’ Equity
  
$
15,763
    
$
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
THREE MONTHS ENDED
MARCH 31,
  
   
2012
    
2011
  
Revenues
  
$
4,153
    
$
2,357
  
Cost of Sales
    
(1,046
) 
    
(440
) 
Gross Margin
    
3,107
      
1,917
  
                 
Operating Expenses:
                
Selling, general and administrative
    
2,135
      
1,401
  
Research and development
    
591
      
391
  
Amortization of intangible assets
    
292
      
149
  
Total Operating Expenses
    
3,018
      
1,941
  
                 
Income/(Loss) From Operations
    
89
      
(24
)
                 
Other Income (Expenses):
                
Interest income
    
1
      
2
  
(Loss) on disposal of assets
    
(10
) 
    
-
  
(Loss) on Debt Conversion
    
(199
) 
    
-
  
Foreign currency translation loss
    
(28
) 
    
(21
) 
Interest expense – amortization of OID and derivative of mark-to-market
    
(535
) 
    
-
  
Interest expense and other
    
(120
) 
    
(8
) 
Total Other Expense
    
(891
) 
    
(27
)
                 
Loss From Operations Before Income Taxes
    
(802
) 
    
(51
) 
Income Tax Expense
    
(45
) 
    
(9
) 
Net Loss
  
$
(847
) 
  
$
(60
)
                 
Basic And Diluted Loss Per Share
  
$
(0.18
) 
  
$
(0.01
)
                 
Shares Used In Computing Basic And Diluted Loss Per Share
    
4,699
      
4,627
  

The notes in the Company’s forthcoming 10-Q are an integral part of these condensed consolidated financial statements.

ASURE SOFTWARE INC Reports