ASURE SOFTWARE INC - FORM 8-K - EX-99.1 - November 8, 2011

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8-K - ASURE SOFTWARE INCasuresoftware8k110711.htm
EX-99.2 - ASURE SOFTWARE INCex99-2.htm
Exhibit 99.1
Asure Software Reports Second Consecutive Profitable Quarter; Raises EBITDA guidance for Fourth Quarter
 
 
·
Q3 Earnings of $0.06 per share excluding one-time items*, exceeding pre-announcement
 
·
Q3 EBITDA of $462,000, excluding one-time items*, exceeding pre-announcement
 
·
Cash and Equivalents, excluding acquisition funding, grew $700,000 sequentially.
 
·
Raising Fourth quarter EBITDA guidance range to $540,000 to 630,000 excluding one-time items*
 
AUSTIN, Texas, November 8, 2011 (GLOBE NEWSWIRE) -- Asure Software, Inc. (Nasdaq:ASUR), a leading provider of workforce management software, announced results for the third quarter ended September 30, 2011.
 
Third quarter results, excluding one-time items related to Asure’s acquisition of ADI Time, included earnings of $0.06 per share and EBITDA of $462,000.  GAAP Net Income per share was $0.01. One-time items contributed ($0.05) per share, and consisted of acquisition related legal and professional services, travel and other one-time expenses.  Third quarter revenue was $2.5 million, a 3% increase over the prior quarter. The revenue increase of $70,000 was largely driven by an increase in recurring revenue, of which the majority was related to growth in our Cloud-based revenue stream. Asure's recurring revenue as a percentage of overall revenue was flat at 80% quarter over quarter and up 8% versus the comparable period in 2010; from 72% to 80%. Hardware revenue increased by 94% compared to the last quarter, driving gross margin down one percentage point to 81% this quarter.
 
"We had a solid quarter as the business continues to perform well and grow.  We're extremely excited about the opportunities the ADI acquisition brings us," commented Pat Goepel, CEO of Asure Software.  "First, ADI's customer base extends our ability to serve organizations with unique industry-specific needs, and with ADI's expertise we can expand our reach and our capabilities.  Second, we are excited to introduce our new hardware technology to current and prospective clients.  Lastly, we've already seen synergies within the combined organizations that allow us to streamline operations, reduce operating costs and gain significant efficiencies.  I'm very optimistic about our team and what we have accomplished as we continue to execute our growth strategy."
 
David Scoglio, Asure's Chief Financial Officer, added, "Asure posted a strong quarter financially, as EBITDA and earnings exceeded our estimates and cash continued to grow.  Deferred revenue grew 13% over the last quarter, and 36% over the comparable period in 2010, and cash continued to grow faster than earnings, giving us confidence in our ability to meet all lending commitments related to the ADI acquisition.  While Netsimplicity’s cloud-based bookings were down sequentially, they were up against a difficult comparison and we are confident that we can return to double digit performance in the fourth quarter.  iEmployee’s cloud-based bookings showed improvement at 24% growth sequentially.
 
David Scoglio continued,” For Q4, we expect GAAP net earnings per share to be positive and drive full year results to overall profitability.  One-time costs related to acquisition and integration are expected to roughly equal those of Q3.  Due to the ADI acquisition and continued organic performance, we are increasing our EBITDA guidance range to $540,000 to $630,000, excluding the aforementioned one-time costs.  An updated table of public guidance is offered below.”

 
   
Guidance
  
   
Q4 '11
    
FY '12
  
 Revenue ($000s)
   $ 3,530 - $3,630      15,500  
 EBITDA Gain ($000s)
    n/a      2,800  
 Net Earnings Per Share
  
Positive for Q4 & '11
    
tba
  
 EBITDA Gain ($000s) excl. 1Time
    540 -- 630      n/a  
 
 
Conference Call Details
Asure will follow this announcement with a conference call for the investment community on Tuesday, November 8, 2011, at 11:00 am EST, (10 a.m. CST) 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 pass code for all callers is 21226915.
 
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 10 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
 
Asure Software, Inc. (NasdaqCM:  ASUR ), 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 turbo-charge your workplace by stimulating your workforce and maximizing your company’s resources while eliminating waste out of employee's work-flow.
 
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 world-wide; 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=8565
 
"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.
 
 
 
 

 
Reconciliation of GAAP Net Earnings to Earnings Before Interest, Taxes, Depreciation, Amortization and Stock Compensation Expense (EBITDA)  and EBITDA excluding One-Time Costs
  
 
  
FOR THE THREE MONTHS ENDING
  
$000s    
September 30, 2011
    
September 30, 2010
    
Inc/Dec
  
Net Gain/(Loss)
       29       0       29  
Interest
       9       12       (3 )
Tax
       9       (42 )     51  
Depreciation
       33       59       (26 )
Amortization
       195       195       0  
Stock Compensation
       27       13       14  
EBITDA Gain
       302       237       65  
One-Time Costs
       160       14       146  
EBITDA Gain excl. One-Time Costs
       462       251       211  
   
   
   
FOR THE NINE MONTHS ENDING
  
$000s    
September 30, 2011
    
September 30, 2010
    
Inc/Dec
  
Net Gain/(Loss)
       (4 )     (1,203 )     1,199  
Interest
       31       53       (22 )
Tax
       30       (14 )     44  
Depreciation
       114       192       (78 )
Amortization
       585       584       1  
Stock Compensation
       55       28       27  
EBITDA Gain/(Loss)
       811       (360 )     1,171  
One-Time Costs
       276       1,261       (985 )
EBITDA Gain excl. One-Time Costs
       1,087       901       186  
 
 
Reconciliation of GAAP Net Earnings to Net Earnings Excluding 1-Time Items
  
   
$000s    
FOR THE THREE MONTHS ENDED SEPTEMBER 30
    
FOR THE NINE MONTHS ENDED SEPTEMBER 30
  
          2011       2010       2011       2010  
Net Gain/(Loss)
       29       0       (4 )     (1,203 )
Legal & Professional Services
       84       0       84       0  
Travel
       41       0       41       0  
Severance, Recruitment & Relocation
       26       0       105       0  
Sales & Marketing Infrastructure
       0       0       35       0  
Loss on Lease Amendment
       0       0       0       1,203  
Other 1-Time Items (net)
       9       14       11       58  
Net Gain Excl. 1-Time Items
       189       14       272       58  
 
 
 
 

ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share data)
(Unaudited)
 
   
September 30, 2011
    
December 31, 2010
  
ASSETS
            
  Current Assets:
            
  Cash and cash equivalents
  
$
6,082
    
$
1,070
  
  Accounts receivable, net of allowance for doubtful accounts of $17 and $46 at
  September 30, 2011 and December 31, 2010, respectively
    
979
      
1,239
  
  Notes receivable
    
120
      
62
  
  Inventory
    
6
      
25
  
  Prepaid expenses and other current assets
    
227
      
255
  
    Total Current Assets
    
7,414
      
2,651
  
  Notes receivable
    
-
      
60
  
  Property and equipment, net
    
221
      
281
  
  Intangible assets, net
    
2,258
      
2,844
  
  Total Assets
  
$
9,893
    
$
5,836
  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
  Current Liabilities:
                
  Accounts payable
  
$
686
    
$
560
  
  Notes payable
    
500
      
-
  
  Accrued compensation and benefits
    
72
      
95
  
  Other accrued liabilities
    
399
      
361
  
  Deferred revenue
    
2,522
      
1,955
  
    Total Current Liabilities
    
4,179
      
2,971
  
  Long-term deferred revenue
    
150
      
116
  
  Notes payable
    
2,850
      
-
  
  Other long-term obligations
    
4
      
25
  
    Total Liabilities
    
7,183
      
3,112
  
                 
  Stockholders’ Equity:
                
  Preferred stock, $.01 par value; 1,500 shares authorized; none issued or outstanding
    
—
      
—
  
  Common stock, $.01 par value; 6,500 shares authorized; 3,341 and 3,341 shares
  issued; 3,085 and 3,085 shares outstanding at September 30, 2011 and December 31, 2010, respectively
    
334
      
334
  
  Treasury stock at cost, 256 shares at September 30, 2011 and December 31, 2010, respectively
    
(5,017
)
    
(5,017
)
  Additional paid-in capital
    
271,033
      
270,978
  
  Accumulated deficit
    
(263,545
)
    
(263,541
)
  Accumulated other comprehensive loss
    
(95
)
    
(30
)
    Total Stockholders’ Equity
    
2,710
      
2,724
  
Total Liabilities and Stockholders’ Equity
  
$
9,893
    
$
5,836
  
 
The accompanying notes from the Company's upcoming 10Q 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
SEPTEMBER 30,
    
FOR THE
NINE MONTHS ENDED
SEPTEMBER 30,
  
   
2011
    
2010
    
2011
    
2010
  
Revenues
  
$
2,502
    
$
2,542
    
$
7,293
    
$
7,627
  
Cost of Sales
    
(486
)
    
(601
)
    
(1,363
)
    
(1,741
)
Gross Margin
    
2,016
      
1,941
      
5,930
      
5,886
  
                                 
Operating Expenses:
                                
    Selling, general and administrative
    
1,526
      
1,507
      
4,340
      
4,391
  
    Research and development
    
366
      
394
      
1,150
      
1,100
  
    Amortization of intangible assets
    
150
      
150
      
449
      
448
  
    Loss on lease amendment
    
-
      
-
      
-
      
1,203
  
Total Operating Expenses
    
2,042
      
2,051
      
5,939
      
7,142
  
                                 
Loss From Operations
    
(26
) 
    
(110
)
    
(9
)
    
(1,256
)
                                 
Other Income (Expenses):
                                
    Interest income
    
2
      
-
      
8
      
2
  
    Foreign currency translation gain (loss)
    
67
      
(24
)
    
47
      
(41
)
    Loss (gain) on sale of assets
    
-
      
(18
)
    
-
      
5
  
    Interest expense and other
    
(5
)
    
(20
)
    
(20
)
    
(57
)
    Gain on sale of investment
    
-
      
130
      
-
      
130
  
Total Other Income (Expense)
    
64
      
68
      
35
      
39
  
                                 
Income (Loss) Before Income Taxes
    
38
      
(42
)
    
26
      
(1,217
)
Provision For Income Taxes
    
(9
)
    
42
      
(30
)
    
14
  
Net Income (Loss)
  
$
29
    
$
0
    
$
(4
)
  
$
(1,203
)
                                 
Basic  Income (Loss) Per Share
  
$
0.01
    
$
0
    
$
(0.00
)
  
$
(0.39
)
Diluted Income (Loss) Per Share
  
$
0.01
    
$
0
    
$
(0.00
)
  
$
(0.39
)
                                 
Shares Used In Computing Basic Income (Loss) Per Share
    
3,085
      
3,085
      
3,085
      
3,088
  
Shares Used In Computing Diluted Income (Loss) Per Share
    
3,094
      
3,085
      
3,085
      
3,088
  

The accompanying notes from the Company's upcoming 10Q are an integral part of these condensed consolidated financial statements 
 

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