Asure Software, Inc. Announces Dissolution of Unfavorable Austin, TX Headquarters Lease Arrangement and Provides Revised 2010 Earnings Outlook
AUSTIN, TX, Apr 29, 2010 (MARKETWIRE via COMTEX) --Asure Software, Inc. (NASDAQ: ASUR), a leading provider of workplace management software, today announced that it has come to an agreement with its landlord, WB One & Two, Ltd., to dissolve its current lease arrangement for its 137,530 sq. ft. headquarters in Austin, TX. The key terms of the agreement, effective April 1, 2010 are:
- Asure Software will pay a termination fee of $1.5M.
- Asure Software will enter into a 3 year lease arrangement at a gross
rent of $20K per month vs. approximately $137K per month (net of
sub-tenant income) previously being paid.
As a result of this termination, Asure Software will alleviate the risk of any future unmitigated lease expense over the course of the original lease term ending in March of 2013. Additionally, Asure Software will forfeit any rights to Net Profit Interests in the lease.
In its fiscal Q2, Asure will recognize a related one-time charge of ($1.2M), or ($0.41) per share. This one-time charge will consist of the termination fee and the reversal of existing leasehold impairment balances and lease-hold improvements on the balance sheet. Additional charges in Q3 of ($0.01) per share are expected as we move Asure's offices to an alternative location within the Wild Basin campus.
Going forward, quarterly rent, less subtenant income, will drop from approximately $412K, on a cash basis, to $60K. The expected payback of this transaction is 13 months and 14 months, on a cash and P&L basis respectively. The following table sets forth our expected future earnings.
"Since taking the reins in late 2009, we have reduced Asure's cost structure, re-focused the Company on growth, retained our NASDAQ listing, and protected potentially valuable tax loss assets," stated CEO Pat Goepel. "Additionally, as discussed in recent earnings calls, this effort will also facilitate Asure's desire to strip away non-core businesses that dilute both our P&L and our management's ability to focus on profitably growing our core software business. As per our outlook in the above table, we expect this profitability to increase as we move forward in 2010 and beyond."
About Asure Software
Headquartered in Austin, Texas, Asure Software, Inc. (ASUR), empowers small to mid-size organizations and divisions of large enterprises to operate more efficiently, increase worker productivity and reduce costs through a comprehensive suite of on-demand workforce management software and services. Asure's market-leading suite includes products that optimize workforce time and attendance tracking, benefits enrollment and tracking, pay stubs and W2 documentation, and meeting and event management. With additional offices in Warwick, Rhode Island, Vancouver, British Columbia, and Mumbai, India, Asure serves 3,500 customers around the world. 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, which include those associated with continued listing of the Company's securities on the NASDAQ Capital Market, could cause actual results to differ from those contained in the forward-looking statements.
SOURCE: Asure Software