Asure Software Reports 2013 First Quarter Financial Results Exceeding Expectations
- First quarter EBITDA*, excluding one-times*, was $727,000 vs. guidance range of $400,000 to $600,000
- First quarter revenue of $6.0 million vs. guidance range of $5.7 to $6.0 million
- First quarter net loss per share, excluding one-times* was $(0.15)
AUSTIN, Texas, May 15, 2013 (GLOBE NEWSWIRE) --Asure Software, Inc. (Nasdaq:ASUR), a leading provider of workplace management software, announced results for the first quarter ended March 31, 2013.
Q1 Strategic Highlights
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Expanded the AsureSpace solution with long-time global customer Proctor & Gamble; the client purchased additional Resource Scheduler software licenses for their global offices that do not currently use the AsureSpace solution. This sale, in addition to recent contract expansions with clients such as Merck (for professional services and videoconferencing integration), demonstrates success with Asure's "Land & Expand" strategy to increase customer profitability and retention with innovative, trusted solutions. Within the AsureForce product line, success with SaaS-based sales in the mid-market continues with the addition of Health Concepts, Hiscox, Inc., and Multiquip, Inc. to the AsureForce customer family.
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Launched new version of the Web site, www.asuresoftware.com to better support Asure Software's growth objectives. The new site improves the user experience and demonstrates a more elevated thought leadership position in the workplace management industry. It also features social media integration, a company blog, integrated access to customer tools and resources, and a much deeper level of industry and product-related information for the AsureForce TLM offerings and AsureSpace workplace management solutions.
- Deployed an integrated enterprise-wide Client Service Portal, which allows complete integration of customers from prior acquisitions, better client access to information, and the ability to cross-sell multiple offerings based on a client's objectives. The portal will help improve client retention and satisfaction through better access to information and resources.
Q1 Results
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Revenue for the quarter was $6.0 million compared to $5.9 million in the previous quarter and $4.2 million in the first quarter 2012.
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Non-GAAP revenue* for the quarter was $6.2 million compared to $6.3 million in the previous quarter and $4.2 in the first quarter 2012.
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Gross margin for the quarter was $4.2 compared to $4.3 in the previous quarter and $3.1 in the same quarter 2012.
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EBITDA* excluding one-time items* for the quarter was approximately $727,000 compared to $948,000 in the previous quarter and $777,000 in the first quarter of 2012. One-time items* in the quarter were approximately $320,000 up from $175,000 in the previous quarter and down from $509,000 in the first quarter of 2012, and were related to legal and professional fees, site consolidation related to the acquisition of Meeting Maker and other one-time expenses*.
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Recurring revenue remained steady at 79% as compared to the previous quarter and increased from 74% over the first quarter of 2012.
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Cloud (SaaS-based) revenue for the quarter increased to $3.1 million up 1.41% over the previous quarter and up $75,000, or 3.48% over the first quarter of 2012, excluding PeopleCube.
- Cloud (SaaS-based) bookings for the quarter decreased slightly by 4% from the previous quarter and increased by 16% from the first quarter of 2012, excluding PeopleCube.
Management Commentary
Pat Goepel, Chief Executive Officer of Asure Software commented, "We are pleased with our performance in the first quarter. The initiatives we kicked off in prior quarters are gaining momentum and are now showing in the financial results. We completed our hosting cost synergies and are now on track to save $1.2 million annually. The transition to a SaaS-based recurring revenue model is continuing to take hold and now represents 51% of all revenue in the quarter. Our "Land & Expand" sales strategy is being executed and can be seen in several strategic add-on purchases by key customers, including Proctor & Gamble and Merck. We look forward to seeing these strategies drive increased revenue and EBITDA in the quarters to come."
Jennifer Crow, Asure's Chief Financial Officer added, "Our continued cost discipline enabled us to achieve guidance while on boarding the strategic additions to our direct sales team. We are on track to deliver on our 2013 goals and achieve EBITDA positive growth over the long term."
Please see below for details around Asure's financial results.
| Company Outlook | |||
| Q2 13 | FY 13 | ||
| Revenue | $6,200 - $6,500 | $25,000 - $27,000 | |
| EBITDA, excluding one-time items | $900 - $1,100 | $6,000 | |
Conference Call Details
Asure will follow this announcement with a conference call for the investment community on Wednesday, May 15, 2013 at 11:00 a.m. ET, (10:00 a.m. CT) to further discuss the quarter and outlook. Participating in the call will be Pat Goepel, Chief Executive Officer and Jennifer Crow, 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 48238837.
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) headquartered in Austin, Texas, offers cloud-based time and labor management and workspace management solutions that enable businesses to control their biggest costs -- labor, real estate and technology -- and prepare for the workforce of the future in a highly mobile, geographically disparate and technically wired work environment. Asure serves approximately 6,000 clients worldwide and currently offers two main product lines: AsureSpace™ workplace management solutions enable organizations to maximize the ROI of their real estate, and AsureForce® time and labor management solutions deliver efficient management of human resource and payroll processes. 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.
Non-GAAP Revenue is computed added back the deferred revenue fair market valuation to GAAP revenue.
| Reconciliation of GAAP Net Earnings to Earnings Before Interest, Taxes, Depreciation, Amortization and Stock | |||
| Compensation Expense (EBITDA) and EBITDA Gain Excluding One-time items. | |||
| FOR THE THREE MONTHS ENDING | |||
| $000s | March 31, 2013 | March 31, 2012 | Inc/Dec |
| Net Loss | (1,100) | (847) | (253) |
| Interest and amortization of OID | 680 | 190 | 490 |
| Derivative mark -to-market | -- | 465 | (465) |
| Tax | 39 | 45 | (6) |
| Depreciation | 112 | 47 | 65 |
| Amortization | 652 | 357 | 295 |
| Stock Compensation | 24 | 11 | 13 |
| EBITDA Gain | 407 | 268 | 139 |
| One-time items | 320 | 509 | (189) |
| EBITDA Gain excluding one-time items | 727 | 777 | (50) |
| Reconciliation of GAAP Net Earnings to Net Earnings Excluding One-time items | ||
| $000s | FOR THE THREE MONTHS ENDED March 31 | |
| 2013 | 2012 | |
| Net Loss | (1,100) | (847) |
| Legal & Professional Services | 214 | 245 |
| Severance, Recruitment & Relocation | 91 | 37 |
| Derivative mark-to-market | -- | 465 |
| Loss on Debt Conversion | -- | 199 |
| Other one-time items (net) | 15 | 28 |
| Sub-total one-time items | 320 | 974 |
| Net Gain/(Loss) excluding one-time items | (780) | 127 |
| Reconciliation of GAAP Revenue to Non-GAAP revenue | ||
| $000s | FOR PERIOD ENDED MARCH 31 | |
| Three months ended 2013 | Three months ended 2012 | |
| Revenue | 5,975 | 4,153 |
| Adjustment | 216 | 65 |
| Non- GAAP revenue | 6,191 | 4,218 |
Note — Adjustment relates to the fair market valuation for assumed deferred revenue contracts that were not recognized in the period due to business combination accounting rules.
| ASURE SOFTWARE, INC. | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (Amounts in thousands) | ||
| (Unaudited) | ||
| March 31, | December 31, | |
| 2013 | 2012 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $1,588 | $2,177 |
| Restricted cash | 250 | 250 |
| Accounts receivable, net of allowance for doubtful accounts of $184 and $182 at March 31, 2013 and December 31, 2012, respectively | 3,222 | 3,040 |
| Inventory | 348 | 266 |
| Notes receivable | 19 | 19 |
| Prepaid expenses and other current assets | 1,845 | 1,497 |
| Total current assets | 7,272 | 7,249 |
| Property and equipment, net | 1,180 | 1,154 |
| Goodwill | 15,520 | 15,525 |
| Intangible assets, net | 11,527 | 12,179 |
| Other assets | 53 | 41 |
| Total assets | $35,552 | $36,148 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Line of credit | $-- | $-- |
| Current portion of notes payable | 3,450 | 3,450 |
| Accounts payable | 2,562 | 2,713 |
| Accrued compensation and benefits | 338 | 78 |
| Other accrued liabilities | 859 | 1,013 |
| Deferred revenue | 10,289 | 9,684 |
| Total current liabilities | 17,498 | 16,938 |
| Long-term liabilities: | ||
| Deferred revenue | 14 | 199 |
| Notes payable- related party | 800 | 800 |
| Notes payable | 15,674 | 15,887 |
| Other liabilities | 439 | 164 |
| Total long-term liabilities | 16,927 | 17,050 |
| Stockholders' equity: | ||
| Preferred stock, $.01 par value; 1,500 shares authorized; none issued or outstanding | -- | -- |
|
Common stock, $.01 par value; 11,000 shares authorized; 5,647 and 5,644 shares issued, 5,263 and 5,260 shares outstanding at March 31, 2013 and December 31, 2012, respectively | 56 | 56 |
| Treasury stock at cost, 384 shares at March 31, 2013 and December 31, 2012 | (5,017) | (5,017) |
| Additional paid-in capital | 274,474 | 274,445 |
| Accumulated deficit | (268,322) | (267,222) |
| Accumulated other comprehensive loss | (64) | (102) |
| Total stockholders' equity | 1,127 | 2,160 |
| $35,552 | $36,148 | |
| 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 LOSS | ||
| (Amounts in thousands, except share and per share data) | ||
| (Unaudited) | ||
| FOR THE | ||
| THREE MONTHS ENDED | ||
| MARCH 31, | ||
| 2013 | 2012 | |
| Revenues | $5,975 | $4,153 |
| Cost of sales | 1,777 | 1,046 |
| Gross Margin | 4,198 | 3,107 |
| Operating Expenses | ||
| Selling, general and administrative | 3,276 | 2,135 |
| Research and development | 700 | 591 |
| Amortization of intangible assets | 582 | 292 |
| Total Operating Expenses | 4,558 | 3,018 |
| Income (Loss) From Operations | (360) | 89 |
| Other Income (Loss) | ||
| Interest income | -- | 1 |
| Loss on disposal of assets | -- | (10) |
| Loss on debt conversion | -- | (199) |
| Foreign currency translation loss | (21) | (28) |
| Interest expense and other | (530) | (120) |
| Interest expense — amortization of OID and derivative mark-to-market | (150) | (535) |
| Total other income (loss) | (701) | (891) |
| Loss From Operations before Income Taxes | (1,061) | (802) |
| Provision for income taxes | (39) | (45) |
| Net Loss | $(1,100) | $(847) |
| Other Comprehensive Loss: | ||
| Foreign currency gain | 38 | 28 |
| Other Comprehensive loss | $(1,062) | $(819) |
| Basic and Diluted Net Loss Per Share | ||
| Basic | $(0.21) | $(0.18) |
| Diluted | $(0.21) | $(0.18) |
| Weighted Average Basic and Diluted Shares | ||
| Basic | 5,261,000 | 4,699,000 |
| Diluted | 5,261,000 | 4,699,000 |
| 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 THREE | ||
| MONTHS | ||
| ENDED | ||
| MARCH 31, | ||
| 2013 | 2012 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net loss | $(1,100) | $(847) |
| Adjustments to reconcile net loss to net cash provided by operations: | ||
| Depreciation and amortization | 764 | 404 |
| Provision for doubtful accounts | 2 | (24) |
| Share-based compensation | 24 | 11 |
| Amortization of original issue discount (OID) | 150 | 70 |
| Loss on sale/disposal of assets | -- | 15 |
| Derivative mark-to-market | -- | 465 |
| Loss on debt conversion | -- | 199 |
| Changes in operating assets and liabilities: | ||
| Notes receivable | -- | (1) |
| Accounts receivable | (184) | 16 |
| Inventory | (82) | 3 |
| Prepaid expenses and other assets | (172) | 52 |
| Accounts payable | (151) | 137 |
| Accrued expenses and other long-term obligations | 405 | 44 |
| Deferred revenue | 420 | 65 |
| Net cash provided by operating activities | 76 | 609 |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Net purchases of property and equipment | (140) | (45) |
| Collection of note receivable | -- | 24 |
| Net cash used in investing activities | (140) | (21) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||
| Payments on notes payable | (363) | (274) |
| Payments on amendment of senior notes payable | (188) | |
| Payments on conversion of subordinated notes payable | -- | (222) |
| Payments on capital leases | (24) | (12) |
| Net proceeds from exercise of options | 5 | 14 |
| Net cash used in financing activities | (570) | (494) |
| Effect of translation exchange rates | 45 | 28 |
| Net increase (decrease) in cash and cash equivalents | (589) | 122 |
| Cash and equivalents at beginning of period | 2,177 | 1,067 |
| Cash and equivalents at end of period | $1,588 | $1,189 |
| SUPPLEMENTAL INFORMATION: | ||
| Cash paid for: | ||
| Interest | $399 | $104 |
| Non-cash Investing and Financing Activities: | ||
| Conversion of subordinated convertible notes payable to equity | -- | 2,247 |
|
The notes in the Company's forthcoming 10-Q are an integral part of these condensed consolidated financial statements. | ||
CONTACT: Jennifer Crow, CFO
Asure Software, Inc.
512-437-2732
jcrow@asuresoftware.com