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8-K - 8-K - ASURE SOFTWARE INCasuresoftware8k081117.htm
Exhibit 99.1
 

Asure Software Reports Record Second Quarter 2017 Revenue and Increases Revenue and EBITDA Guidance for Full Year

AUSTIN, TX – August 14, 2017  Asure Software, Inc. (NASDAQ: ASUR), a leading provider of Human Capital Management (HCM) and workplace management software, reported results for the second quarter ended June 30, 2017.

Second Quarter 2017 Financial Summary
 
Actual Results
 
   
For the three months ended
       
(in millions except per share data and percentages)
 
June 30, 2017
   
June 30, 2016
   
Change (%)
 
Revenue
 
$
12.9
   
$
9.7
     
33
%
                         
Gross Margin
 
$
10.1
   
$
7.5
     
34
%
Gross Margin (as a % of revenue)
   
78.1
%
   
77.5
%
   
1
%
                         
EBITDA
 
$
0.9
   
$
1.8
     
-48
%
EBITDA, excluding one-time expenses
 
$
2.2
   
$
2.6
     
-18
%
                         
Net Income (Loss)
 
$
(1.8
)
 
$
0.1
     
-1451
%
                         
Net Income (Loss) per  Share
 
$
(0.18
)
 
$
0.02
     
-1000
%
Net Income (Loss) per  Share, excluding one-time expenses
 
$
(0.06
)
 
$
0.15
     
-140
%
Non-GAAP Net Income (Loss) per Share
 
$
0.07
   
$
0.27
     
-74
%
                         
Six Months Ended 2017 Financial Summary
 
Actual Results
 
   
For the six months ended
         
(in millions except per share data and percentages)
 
June 30, 2017
   
June 30, 2016
   
Change (%)
 
Revenue
 
$
23.6
   
$
16.4
     
44
%
                         
Gross Margin
 
$
18.3
   
$
12.5
     
47
%
Gross Margin (as a % of revenue)
   
77.7
%
   
76.2
%
   
2
%
                         
EBITDA
 
$
1.9
   
$
1.3
     
40
%
EBITDA, excluding one-time expenses
 
$
4.0
   
$
3.0
     
31
%
                         
Net Income (Loss)
 
$
(2.9
)
 
$
(1.4
)
   
104
%
                         
Net Income (Loss) per  Share
 
$
(0.31
)
 
$
(0.23
)
   
35
%
Net Income (Loss) per  Share, excluding one-time expenses
 
$
(0.09
)
 
$
0.04
     
-325
%
Non-GAAP Net Income (Loss) per Share
 
$
0.16
   
$
0.25
     
-36
%

Second Quarter 2017 Operational Highlights
·
Cloud bookings increased 174% from the second quarter of 2016.
·
Overall pipeline of deals increased approximately 73% from the prior quarter, reflecting the additions of the company's strategic acquisitions, increased cross-sell opportunities as well as the effectiveness of the expanded sales force.


·
Backlog totaled $18.1 million, a 48% increase compared to the prior quarter and a 34% increase from the year-ago quarter. The company continues to expect many enterprise clients will move through the implementation process in 2017, which will result in conversion of this backlog to reported revenue growth during the year.
·
Secured several new wins across a range of industry verticals, including Procter & Gamble and Fannie Mae. HCM wins included B Green Services, Messerli & Kramer, and Zander's Sporting Goods.
·
Completed a $27.5 million public offering of common stock with high-quality institutional investors.
·
Partnered with Wells Fargo and Goldman Sachs for a new $35 million term loan, thereby increasing the total commitment capacity under its restated credit facility to $75 million.
·
Strengthened leadership team with the appointments of Web Hill as Vice President and General Manager, Evolution, and Robert Dietz as Vice President and General Manager, HR Consulting.
·
Appointed Silver Oak Services Partners Founder and Co-Managing Partner Daniel Gill to Asure's board of directors.
·
Awarded a place on the G-Cloud 9 Framework, enabling Asure to offer cloud services to UK government departments, local authorities and the broader public sector without requiring a full tender process.
·
Acquired Compass HRM, a regional HR and payroll service bureau in the Southeast and an existing reseller of Asure's HCM offering.
·
Acquired iSystems, a leading national provider of HCM solutions to more than 100 payroll and HR service bureaus, providing Asure with significant cross-sell revenue opportunities and cost synergies.

Second Quarter 2017 Financial Results
·
Revenue increased 33% to a record $12.9 million from $9.7 million in the same year-ago quarter.
·
Recurring revenue for the quarter as a percent of total revenue was 79.3%, an improvement from 72.1% in the second quarter of 2016.
·
Cloud revenue increased 64% and hardware revenue increased 22% from the second quarter of 2016.
·
Gross margin for the quarter was $10.1 million (78.1% of total revenue), a 34% increase from $7.5 million (77.5% of total revenue) in the second quarter of 2016.
·
EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) *excluding one-time items* for the quarter was approximately $2.2 million, compared to $2.6 million in the second quarter of 2016.
·
Net loss per share (excluding one-time items*) totaled $(0.06) (based on 10.0 million shares), compared to net income per share (excluding one-time items*) of $0.15 (based on 6.4 million shares) in the second quarter of 2016.
·
Non-GAAP net income per share totaled $0.07, compared to non-GAAP net income per share of $0.27 in the second quarter of 2016.
·
Deferred revenue increased 14% to $12.4 million.

Fiscal 2017 Financial Guidance
Asure management revised its financial guidance for fiscal 2017 ending December 31, 2017:

2017 Financial Guidance
Fiscal 2017
Revenue
$54.25 million to $56.25 million (increased from $53.0 million to $56.0 million)
EBITDA, excluding one-time items
$12.2 million to $13.5 million (increased from $11.9 million to $13.2)
Net Income (Loss) per Share, excluding one-time items
$(0.06) to $(0.02) (revised from $(0.02) to $0.02)
Non-GAAP Net Income per Share
$0.50 to $0.56 (revised from $0.50 to $0.59)

2


For fiscal 2017, Asure expects to achieve between $54.25 million and $56.25 million in revenue, with EBITDA, excluding one-time items, of between $12.2 million and $13.5 million, net loss per share, excluding one-time items, of between $(0.06) and $(0.02), and non-GAAP net income per share of between $0.50 and $0.56.

For fiscal 2018, Asure's objectives are to reach double-digit organic revenue growth with multiple "tuck-in" acquisitions each of approximately $2.0 million of revenue and a purchase price of about two times revenue. In addition, Asure seeks to reach between $70.0 million and $80.0 million of revenue in 2018, with EBITDA, excluding one-time items, of between $16.0 million and $20.0 million. The company plans to issue more formal financial guidance for fiscal 2018 when it reports Q3 2017 results.

Management Commentary
"Q2 represented a continuation of the same strong growth and operational momentum Asure has achieved over the last several quarters and years," said company CEO Pat Goepel. "This continued strength was demonstrated in the double-digit topline growth we realized this quarter resulting in a record $12.9 million of revenue, along with the continued expansion of our gross margins to more than 78%. These encouraging results were driven by solid contributions across our business, particularly from cloud revenue, which was up 64% year-over-year, as well as a 174% increase in cloud bookings, both metrics validating our success in scaling our cloud business. And despite higher non-recurring and non-cash expenses related to the two acquisitions we completed in the period, we were still able to generate another quarter of profitability on a non-GAAP basis. Our overall performance reflects the increasing demand for our solutions as well as the continued realization of synergies from the strategic acquisitions we have completed this year.

"Following the one-year anniversary of our acquisition of Mangrove Software, which enabled us to more rapidly enter the multi-billion-dollar HCM market, we completed two more strategic acquisitions during the quarter: iSystems and Compass HRM. Like Mangrove, our acquisition of iSystems is consistent with our strategy of purchasing businesses with a proven technology and robust service bureau customer base, presenting us with significant opportunities to upsell and cross-sell our solution suite. In less than three months, we have made significant strides toward integrating the business and selling into its base of more than 100 service bureaus. Concurrently, we have already integrated Compass HRM, a regional service bureau and longstanding reseller of our HCM solutions, and begun to realize revenue and EBITDA improvements similar to what we achieved with the PSNW and CPI 'tuck in' acquisitions earlier this year. In fact, we have begun to implement cost optimization measures for our recent acquisitions that will take out approximately $4 million in costs annually. We expect to complete most of these measures in Q3 with the reminder by year end.

"As a result of our continued success, we entered the second half of 2017 with strong financial and operational momentum, a bolstered balance sheet, and industry-leading solutions. These dynamics have favorably positioned Asure for success in 2017, and have also put us well on track to achieve our mid-term goal of surpassing $100 million in revenue with double-digit EBITDA margins excluding one-time items. We remain focused on the key strategic initiatives that will continue to drive us forward, including accelerating the velocity of our cross-selling opportunities and the scaling of our business, both organically and through strategic acquisitions."

Conference Call Details
Asure management will host a conference call today at 11:00 a.m. Eastern time (10:00 a.m. Central time) to discuss these financial results and outlook. Asure CEO Pat Goepel will host the presentation, followed by a question and answer period.

Date: Monday, August 14, 2017
Time: 11:00 a.m. Eastern time (10:00 a.m. Central time)
U.S. dial-in: (877) 853-5636
International dial-in: (631) 291-4544
Conference ID: 53032843

3


Please call the conference telephone number ten minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 949-574-3860.

The conference call will be broadcasted live and available for replay via the investor section of the company's website.

About Asure Software
Asure Software, Inc., (NASDAQ: ASUR), headquartered in Austin, Texas, offers intuitive and innovative technologies that enable companies of all sizes and complexities to operate more efficiently. We help build companies of the future. Our cloud platform has helped more than 7,500 clients worldwide to better manage their people and space for a mobile, digital, multi-generational, and global organization. Asure Software's suite of solutions range from HCM workforce management solutions, time and attendance to workspace asset optimization and meeting room management solutions. For more information, please visit www.asuresoftware.com.
 
"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. In particular, there is no assurance that Asure will achieve any particular level of revenues or income, consummate any additional acquisitions or successfully integrate any future acquired businesses.

Company Contact:
Pat Goepel, CEO
Asure Software, Inc.
888-323-8835
pgoepel@asuresoftware.com

Investor Relations Contact:
Matt Glover and Najim Mostamand
Liolios Group, Inc.
949-574-3860
ASUR@liolios.com


4


ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
 
  
 
June 30,
2017
(Unaudited)
   
December 31,
2016
 
Assets
           
Current assets:
           
Cash and cash equivalents
 
$
30,419
   
$
12,767
 
Accounts and note receivable, net of allowance for doubtful accounts of $495 and $338
at June 30, 2017 and December 31, 2016, respectively
   
13,050
     
8,108
 
Inventory
   
491
     
487
 
Prepaid expenses and other current assets
   
2,273
     
1,256
 
Total current assets before funds held for clients
   
46,233
     
22,618
 
Funds held for clients
   
28,427
     
22,981
 
Total current assets
   
74,660
     
45,599
 
Restricted cash
   
200
     
-
 
Property and equipment, net
   
3,065
     
1,878
 
Goodwill
   
75,510
     
26,259
 
Intangible assets, net
   
34,576
     
12,048
 
Other assets
   
477
     
39
 
Total assets
 
$
188,488
   
$
85,823
 
Liabilities and stockholders' equity
               
Current liabilities:
               
Current portion of notes payable, net of debt issuance cost and debt discount
 
$
8,094
   
$
5,455
 
Accounts payable
   
1,892
     
1,576
 
Accrued compensation and benefits
   
1,929
     
1,192
 
Other accrued liabilities
   
2,051
     
936
 
Deferred revenue
   
11,029
     
9,252
 
  Total current liabilities before client fund obligations
   
24,995
     
18,411
 
Client fund obligations
   
28,427
     
22,981
 
Total current liabilities
   
53,422
     
41,392
 
Long-term liabilities:
               
Deferred revenue
   
1,408
     
769
 
Notes payable, net of current portion of debt issuance cost and debt discount
   
68,239
     
24,581
 
Other liabilities
   
161
     
835
 
Total long-term liabilities
   
69,808
     
26,185
 
Total liabilities
   
123,230
     
67,577
 
Stockholders' equity:
               
Preferred stock, $.01 par value; 1,500 shares authorized; none issued or outstanding
   
-
     
-
 
Common stock, $.01 par value; 22,000 shares authorized; 12,754 and 8,901 shares issued, 12,370 and 8,517 shares outstanding at June 30, 2017 and December 31, 2016, respectively
   
128
     
89
 
Treasury stock at cost, 384 shares at June 30, 2017 and December 31, 2016
   
(5,017
)
   
(5,017
)
Additional paid-in capital
   
344,970
     
295,044
 
Accumulated deficit
   
(274,771
)
   
(271,875
)
Accumulated other comprehensive income (loss)
   
(52
)
   
5
 
Total stockholders' equity
   
65,258
     
18,246
 
Total liabilities and stockholders' equity
 
$
188,488
   
$
85,823
 
 

5


ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Amounts in thousands, except share and per share data)
(Unaudited)
 
 
 
FOR THE
THREE MONTHS ENDED
June 30,
   
FOR THE
SIX MONTHS ENDED
June 30,
 
 
 
2017
   
2016
   
2017
   
2016
 
Revenues:
                       
Cloud revenue
 
$
8,826
   
$
5,389
   
$
16,662
   
$
9,251
 
Hardware revenue
   
1,560
     
1,275
     
2,648
     
1,968
 
Maintenance and support revenue
   
1,165
     
1,192
     
2,098
     
2,431
 
On premise software license revenue
   
281
     
458
     
450
     
598
 
Professional services revenue
   
1,048
     
1,350
     
1,749
     
2,138
 
Total revenues
   
12,880
     
9,664
     
23,607
     
16,386
 
Cost of sales
   
2,826
     
2,176
     
5,264
     
3,906
 
Gross margin
   
10,054
     
7,488
     
18,343
     
12,480
 
 
                               
Operating expenses
                               
Selling, general and administrative
   
8,784
     
5,480
     
15,827
     
10,513
 
Research and development
   
836
     
645
     
1,605
     
1,456
 
Amortization of intangible assets
   
1,042
     
626
     
1,889
     
1,003
 
Total operating expenses
   
10,662
     
6,751
     
19,321
     
12,972
 
 
                               
Income (loss) from operations
   
(608
)
   
737
     
(978
)
   
(492
)
 
                               
Other income (loss)
                               
Interest expense and other
   
(1,088
)
   
(559
)
   
(1,635
)
   
(840
)
Total other loss
   
(1,088
)
   
(559
)
   
(1,635
)
   
(840
)
 
                               
Income (loss) from operations before income taxes
   
(1,696
)
   
178
     
(2,613
)
   
(1,332
)
Income tax provision
   
(141
)
   
(42
)
   
(283
)
   
(86
)
Net income (loss)
 
$
(1,837
)
 
$
136
   
$
(2,896
)
 
$
(1,418
)
Other comprehensive income (loss)
                               
Foreign currency gain (loss)
   
(23
)
   
81
     
(57
)
   
116
 
Other comprehensive income (loss)
 
$
(1,860
)
   
217
   
$
(2,953
)
 
$
(1,302
)
 
                               
Basic and diluted net income (loss) per share
                               
Basic
 
$
(0.18
)
 
$
0.02
   
$
(0.31
)
 
$
(0.23
)
Diluted
 
$
(0.18
)
 
$
0.02
   
$
(0.31
)
 
$
(0.23
)
Weighted average basic and diluted shares
                               
Basic
   
9,980,000
     
6,294,000
     
9,307,000
     
6,292,000
 
Diluted
   
9,980,000
     
6,429,000
     
9,307,000
     
6,292,000
 
 

6


ASURE SOFTWARE, INC.
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)

 
 
FOR THE
SIX MONTHS ENDED
JUNE 30,
 
 
 
2017
   
2016
 
CASH FLOWS FROM OPERATING ACTIVITIES:
           
Net loss
 
$
(2,896
)
 
$
(1,418
)
Adjustments to reconcile net loss to net cash used in operations:
               
Depreciation and amortization
   
2,553
     
1,706
 
Provision for doubtful accounts
   
150
     
10
 
Share-based compensation
   
225
     
106
 
Changes in operating assets and liabilities:
               
Accounts receivable
   
(3,486
)
   
(1,059
)
Inventory
   
(2
)
   
268
 
Prepaid expenses and other assets
   
(891
)
   
86
 
Accounts payable
   
(244
)
   
(316
)
Accrued expenses and other long-term obligations
   
9
     
397
 
Deferred revenue
   
973
     
(864
)
         Net cash used in operating activities
   
(3,609
)
   
(1,084
)
 
               
CASH FLOWS FROM INVESTING ACTIVITIES:
               
Acquisitions net of cash acquired
   
(43,698
)
   
(12,000
)
Purchases of property and equipment
   
(782
)
   
(24
)
Collection of note receivable
   
-
     
64
 
Net change in funds held for clients
   
3,657
     
(8,106
)
         Net cash used in investing activities
   
(40,823
)
   
(20,066
)
 
               
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Proceeds from notes payable
   
45,777
     
15,335
 
Payments on notes payable
   
(6,391
)
   
(3,274
)
Debt financing fees
   
(1,433
)
   
(438
)
Payments on capital leases
   
(91
)
   
(106
)
Net proceeds from issuance of common stock
   
27,916
     
528
 
Net change in client fund obligations
   
(3,602
)
   
8,106
 
        Net cash provided by financing activities
   
62,176
     
20,151
 
 
               
Effect of foreign exchange rates
   
(92
)
   
124
 
 
               
Net increase (decrease) in cash and cash equivalents
   
17,652
     
(875
)
Cash and cash equivalents at beginning of period
   
12,767
     
1,158
 
Cash and cash equivalents at end of period
 
$
30,419
   
$
283
 
 
               
SUPPLEMENTAL INFORMATION:
               
Cash paid for:
               
Interest
 
$
889
   
$
456
 
 
               
Non-cash Investing and Financing Activities:
               
Subordinated notes payable –acquisitions
   
8,725
     
6,000
 
Equity issued in connection with acquisitions
   
18,000
     
-
 
 

7


*Non-GAAP Financial Measures
This press release includes the following financial measures defined as non-GAAP financial measures by the Securities and Exchange Commission: EBITDA and GAAP Net Income (Loss) excluding one-time expenses. These supplemental financial measures are not required by GAAP, nor is 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 expenses 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 Net Income (Loss) Before Interest, Taxes, Depreciation, Amortization and Stock Compensation Expense (EBITDA)" and the "Reconciliation of GAAP Net Income/(Loss) to Net Income (Loss) Excluding One-Time Expenses" 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 Income (Loss) Excluding One-Time Expenses is calculated by combining the company's GAAP Net Income (Loss), or earnings per share, with expenses that management believes are one time in nature and are not expected to recur on a dollar or per share basis.

Non-GAAP Net Income (Loss) is calculated by combining the company's GAAP Net Income (Loss), or earnings per share, with items that management believes are one time in nature and are not expected to recur on a dollar or per share basis. It excludes the impact of purchase accounting adjustments, amortization expense on acquisition-related intangible assets, stock-based compensation expense, and acquisition-related expenses. We have revised our non-GAAP Net Income (Loss) to include acquisition-related amortization, as we believe this will more accurately reflect how we analyze our operations and provide information needed by investors to gain additional insight into our financial results. These expenses have been included in the non-GAAP Net Income (Loss) for all periods presented.








8


Guidance
Reconciliation of GAAP Net Income (Loss) to EBITDA Excluding One-time Expenses:
$000s
             
   
Fiscal 2017
 
Net Income (Loss)
   
(3,600
)
 to
   
(3,750
)
Interest
   
4,800
 
 to
   
5,000
 
Tax
   
300
 
 to
   
400
 
Depreciation
   
1,500
 
 to
   
1,700
 
Amortization
   
5,800
 
 to
   
6,100
 
Stock Compensation
   
500
 
 to
   
550
 
EBITDA
   
9,300
 
 to
   
10,000
 
One-time expenses
   
2,900
 
 to
   
3,500
 
EBITDA excluding one-time expenses
   
12,200
 
 to
   
13,500
 
 
Reconciliation of GAAP Net Income (Loss) to Net Income (Loss) Excluding One-Time Expenses and non-GAAP Net Income per share

   
Fiscal 2017
 
Net loss per share
 
$
(0.31
)
 to
 
$
(0.33
)
One time items per share
 
$
0.25
 
 to
 
$
0.31
 
Net Income (loss) per share, excluding one time items
 
$
(0.06
)
 to
 
$
(0.02
)
Stock based compensation per share
 
$
0.05
 
 to
 
$
0.05
 
Amortization expense on acquisition-related intangible assets per share
 
$
0.51
 
 to
 
$
0.53
 
Non GAAP Net Income per share
 
$
0.50
 
 to
 
$
0.56
 

 


9


Reconciliation of GAAP Net Income (Loss) to Net Income (Loss) Before Interest, Taxes, Depreciation,
Amortization and Stock Compensation Expense (EBITDA) and EBITDA Excluding One-time Expenses.

 FOR THE THREE MONTHS ENDED
$000s
 
June 30,
2017
   
June 30,
2016
 
Net Income (Loss)
   
(1,837
)
   
136
 
Interest
   
1,079
     
560
 
Tax
   
141
     
42
 
Depreciation
   
224
     
259
 
Amortization
   
1,149
     
732
 
Stock Compensation
   
171
     
67
 
EBITDA
   
927
     
1,796
 
One-time expenses
   
1,234
     
831
 
EBITDA excluding one-time expenses
   
2,161
     
2,627
 

 FOR THE SIX MONTHS ENDED
$000s
 
June 30,
2016
   
June 30,
2015
 
Net Loss
   
(2,896
)
   
(1,418
)
Interest
   
1,704
     
852
 
Tax
   
283
     
86
 
Depreciation
   
451
     
490
 
Amortization
   
2,102
     
1,216
 
Stock Compensation
   
225
     
106
 
EBITDA
   
1,869
     
1,332
 
One-time expenses
   
2,084
     
1,683
 
EBITDA excluding one-time expenses
   
3,953
     
3,015
 


10


Reconciliation of GAAP Net Income (Loss) to Net Income (Loss) Excluding One-time Expenses
 
FOR THE THREE MONTHS ENDED
$000s
 
June 30,
2017
   
June 30,
2016
 
Net Income (Loss)
   
(1,837
)
   
136
 
Legal & Professional Services
   
861
     
175
 
Severance, Recruitment & Relocation
   
174
     
584
 
Other one-time items (net)
   
199
     
72
 
Sub-total excluding Taxes
   
1,234
     
831
 
Sub-total one-time expenses
   
1,234
     
831
 
Net Income (Loss) excluding one-time expenses
   
(603
)
   
967
 

FOR THE SIX MONTHS ENDED

$000s
 
June 30,
2017
    June 30,
2016
 
Net Income (Loss)
   
(2,896
)
   
(1,418
)
Legal & Professional Services
   
1,578
     
857
 
Severance, Recruitment & Relocation
   
292
     
722
 
Other one-time items (net)
   
214
     
104
 
Sub-total excluding Taxes
   
2,084
     
1,683
 
Sub-total one-time expenses
   
2,084
     
1,683
 
Net Income (Loss) excluding one-time expenses
   
(812
)
   
265
 


11


Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)
 
FOR THE THREE MONTHS ENDED
 
 
$000s
 
June 30,
2017
    June 30,
2016
 
Net Income (Loss)
   
(1,837
)
   
136
 
Amortization expense on acquisition-related intangible assets
   
1,149
     
732
 
One-time expenses
   
1,234
     
831
 
Stock compensation
   
171
     
67
 
Sub-total Non-GAAP Items
   
2,554
     
1,630
 
Non-GAAP Net Income (Loss)
   
717
     
1,766
 
Weighted-average shares of common stock outstanding
   
10,212
     
6,429
 
Non-GAAP Net Income (Loss) per Share
 
$
0.07
   
$
0.27
 
 
FOR THE SIX MONTHS ENDED

$000s
 
June 30,
2017
    June 30,
2016
 
Net Income (Loss)
   
(2,896
)
   
(1,418
)
Amortization expense on acquisition-related intangible assets
   
2,102
     
1,215
 
One-time expenses
   
2,084
     
1,683
 
Stock compensation
   
225
     
106
 
Sub-total Non-GAAP Items
   
4,411
     
3,004
 
Non-GAAP Net Income (Loss)
   
1,515
     
1,586
 
Weighted-average shares of common stock outstanding
   
9,511
     
6,292
 
Non-GAAP Net Income (Loss) per Share
 
$
0.16
   
$
0.25
 
 
 

 

12