Asure Software Reports Solid Financial Results for Fourth Quarter and Fiscal Year 2014
Company Announces Guidance and Projected Growth for 2015
| In thousands, except per share data | Q4 2014 | Q4 2013 | % Change | YTD Q4 2014 | YTD Q4 2013 | % Change |
| Revenue | $7,101 | $6,732 | up 6% | $27,206 | $25,474 | up 7% |
| Gross Margin | $5,313 | $5,108 | up 4% | $20,892 | $19,049 | up 10% |
| Net income (loss) | $92 | ($102) | up 190% | ($262) | ($1,662) | up 84% |
| EBITDA, excluding one-times* | $1,345 | $1,482 | down 9% | $5,052 | $4,823 | up 5% |
| Diluted net income (loss) per share, excluding one-times* | $0.04 | $0.02 | $0.08 | ($0.14) |
AUSTIN, Texas, March 25, 2015 (GLOBE NEWSWIRE) -- Asure Software, Inc. (Nasdaq:ASUR), a leading provider of workplace management software, announced results for the fourth quarter ended December 31, 2014.
Strategic Highlights
- Continued cloud bookings and revenue growth with US and UK key sales and upgrades that included a combination of Cloud-based solutions, professional services and integrated hardware: AsureSpace™ hoteling and workspace management to American Water Works, Deutsche Bank, Kaiser Permanente, King Saud University and Methodist Hospital, and AsureForce® time and attendance solutions to Clear Creek Plumbing, Dynamex, Henriquez, Croes and Co., Rhodes College, Pollard Brook and Vision Ease.
- Total bookings for 2014 increased 23% over 2013. Cloud bookings for 2014 increased 1% over 2013.
- Released an enhanced space scheduling touch panel, integrated NowSpace with leading technology provider Mobile Iron, and launched bi-directional integration of Asure hoteling and space management solutions with Cisco TMS; expanded AsureForce time & attendance solutions with enhanced support for global and high volume implementations, including numerous usability and performance requirements.
- Expanded the Company's global presence with Tokyo-based DOUMA, Japan's only firm dedicated solely to workplace management, which will offer Asure's solutions to its clients.
- Refinanced our senior debt under a new facility with Wells Fargo Bank, N.A. in the first quarter of 2014, reducing our interest expense by $0.6 million and cash principal payments by $0.8 million in 2014.
- Net income was $0.01 per share in the fourth quarter of 2014 as compared to net loss of $(0.02) per share in the fourth quarter of 2013. This was the third quarter in a row of positive net income.
Results
- Cloud SaaS-based revenue for the quarter was $3.5 million, up $72,000 or 2% over the fourth quarter of 2013.
- Revenue for the quarter of $7.1 million increased 6% over the $6.7 million in the fourth quarter of 2013.
- Recurring revenue as a percent of total revenue was 73% for the quarter as compared to 75% in the fourth quarter of 2013.
- Gross margin for the quarter was $5.3 million compared to $5.1 million in the fourth quarter 2013, an increase of 4%.
- EBITDA* excluding one-time items* for the quarter was approximately $1.3 million compared to $1.5 million in the fourth quarter of 2013. This decline was driven by an increase in sales, marketing, and operating expenses aimed towards accelerating 2015 growth.
- Fourth quarter net income per share, excluding one-times*, was $0.04 compared to $0.02 in the fourth quarter of 2013.
Management Commentary
Pat Goepel, Chief Executive Officer of Asure Software commented, "2014 and the fourth quarter were successful for Asure Software. We transitioned to a profitable company with growth for three consecutive quarters and 7% annual organic revenue growth. Our success was driven by maintaining a constant focus on sales and upgrades of SaaS-based solutions, expanding the company's national and global presence, and delivering first-to-market technology features that offer clients differentiated solutions to manage hoteling and mobile workforce initiatives.
We increased investments in sales, marketing and operating expenses, which have resulted in stronger market awareness and higher sales, particularly with large multinational companies. With over 5,000 clients in over 80 countries, our global presence is sound, and our investments set the stage for continued sales growth in the global enterprise market.
In addition to global sales expansion, we expect consistent growth through client upgrades to Cloud solutions, new sales in the mid-markets, and expanded global partnerships. Additionally, we've put a sound technology platform in place, which firmly sets Asure's focus as a leader in SaaS-based mobile workforce solutions. Cumulatively, these successes and strategic investments put us in an ideal situation for significant future growth."
Brad Wolfe, Asure's Chief Financial Officer added, "2014 was an important year for Asure as the company has transitioned to a profitable company that is poised for growth. For 2015, we are announcing guidance of $30.0 million for revenue, $5.6 million for EBITDA excluding one-time items, and $0.25 for net income per share excluding one-time items. This reflects our confidence in continued market demand, the stability of our products, and the company's ability to deliver differentiated offerings on a global, scalable basis."
Please see below for details around Asure's financial results.
| Company Outlook | |
| $000s | FY 15 |
| Revenue | $30,000 |
| EBITDA, excluding one-time items | $5,600 |
| Net income per share, excluding one-time items | $0.25 |
Conference Call Details
Asure will follow this announcement with a conference call for the investment community on Wednesday, March 25, 2015 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 Brad Wolfe, 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 1497865.
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, a replay will be available shortly after the call on the investor relations page of our Web site at http://investor.asuresoftware.com/
About Asure Software
Asure Software, Inc., (Nasdaq:ASUR) is headquartered in Austin, Texas with regional headquarters in London, England. Asure helps companies better manage their global, mobile workforces with SaaS-based solutions that bring people, time, space and assets together in a meaningful way. The company serves approximately 6,000 clients worldwide with workplace and workforce management solutions that offer innovative ways to help meet the needs of an agile workforce. 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.
| ASURE SOFTWARE, INC. CONSOLIDATED BALANCE SHEETS (Amounts in thousands) | ||
| December 31, 2014 | December 31, 2013 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 320 | $ 3,938 |
| Restricted cash | -- | 400 |
| Accounts receivable, net of allowance for doubtful accounts of $120 and $168 at December 31, 2014 and December 31, 2013, respectively | 5,295 | 3,902 |
| Inventory | 170 | 77 |
| Notes receivable | -- | 9 |
| Prepaid expenses and other current assets | 1,303 | 1,334 |
| Total current assets | 7,088 | 9,660 |
| Property and equipment, net | 1,539 | 1,233 |
| Goodwill | 17,500 | 15,005 |
| Intangible assets, net | 8,322 | 9,679 |
| Other assets | 19 | 38 |
| Total assets | $ 34,468 | $ 35,615 |
| Liabilities and stockholders' equity | ||
| Current liabilities: | ||
| Current portion of notes payable | $ 750 | $ 4,308 |
| Accounts payable | 1,533 | 1,669 |
| Accrued compensation and benefits | 350 | 473 |
| Other accrued liabilities | 1,128 | 988 |
| Deferred revenue | 10,641 | 10,059 |
| Total current liabilities | 14,402 | 17,497 |
| Long-term liabilities: | ||
| Deferred revenue | 475 | 759 |
| Notes payable | 14,381 | 12,698 |
| Other liabilities | 739 | 444 |
| Total long-term liabilities | 15,595 | 13,901 |
| Stockholders' equity: | ||
| Preferred stock, $.01 par value; 1,500 shares authorized; none issued or outstanding | -- | -- |
| Common stock, $.01 par value; 11,000 shares authorized; 6,434 and 6,353 shares issued, 6,050 and 5,969 shares outstanding at December 31, 2014 and December 31, 2013, respectively | 64 | 63 |
| Treasury stock at cost, 384 shares at December 31, 2014 and December 31, 2013 | (5,017) | (5,017) |
| Additional paid-in capital | 278,656 | 278,159 |
| Accumulated deficit | (269,146) | (268,884) |
| Accumulated other comprehensive loss | (86) | (104) |
| Total stockholders' equity | 4,471 | 4,217 |
| Total liabilities and stockholders' equity | $ 34,468 | $ 35,615 |
| ASURE SOFTWARE, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Amounts in thousands, except share and per share data) | ||
| FOR THE TWELVE MONTHS ENDED DECEMBER 31, | ||
| 2014 | 2013 | |
| Revenues | $ 27,206 | $ 25,474 |
| Cost of Sales | 6,314 | 6,425 |
| Gross margin | 20,892 | 19,049 |
| Operating expenses | ||
| Selling, general and administrative | 13,999 | 13,252 |
| Research and development | 3,310 | 2,835 |
| Amortization of intangible assets | 1,999 | 2,180 |
| Total operating expenses | 19,308 | 18,267 |
| Income from operations | 1,584 | 782 |
| Other income (loss) | ||
| Gain on settlement of note payable and litigation | 1,034 | -- |
| Interest income | (1) | 49 |
| Gain on sale/disposal of assets | -- | 72 |
| Loss on debt refinancing | (1,402) | -- |
| Foreign currency translation loss | (14) | (24) |
| Interest expense and other | (1,274) | (1,943) |
| Interest expense- amortization of original issue discount (OID) | (72) | (481) |
| Total other loss, net | (1,729) | (2,327) |
| Loss from operations before income taxes | (145) | (1,545) |
| Income tax provision | (117) | (117) |
| Net loss | $ (262) | $ (1,662) |
| Other comprehensive loss: | ||
| Foreign currency translation gain (loss) | 18 | (2) |
| Other comprehensive loss | $ (244) | $ (1,664) |
| Basic and diluted net loss per share | ||
| Basic | $ (0.04) | $ (0.29) |
| Diluted | $ (0.04) | $ (0.29) |
| Weighted average basic and diluted shares | ||
| Basic | 6,002,000 | 5,661,000 |
| Diluted | 6,002,000 | 5,661,000 |
| ASURE SOFTWARE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) | ||
| FOR THE YEAR ENDED DECEMBER 31, | ||
| 2014 | 2013 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net loss | $ (262) | $ (1,662) |
| Adjustments to reconcile net loss to net cash provided by operations: | ||
| Depreciation and amortization | 2,821 | 2,947 |
| Provision for doubtful accounts | 48 | 37 |
| Share-based compensation | 226 | 160 |
| Interest income on settlement | -- | (48) |
| Gain on sale/disposal of assets | -- | (72) |
| Amortization of original issue discount (OID) | 72 | 481 |
| Gain on debt payoff | -- | (98) |
| Gain on settlement of note payable and litigation | (1,034) | -- |
| Loss on debt refinancing | 1,402 | -- |
| Changes in operating assets and liabilities: | ||
| Restricted cash | 400 | (150) |
| Accounts receivable | (1,419) | (899) |
| Inventory | (93) | 177 |
| Prepaid expenses and other assets | (82) | 495 |
| Accounts payable | (136) | (1,008) |
| Accrued expenses and other long-term obligations | 550 | 737 |
| Deferred revenue | 213 | 928 |
| Net cash provided by operating activities | 2,706 | 2,025 |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Acquisitions, net of cash acquired | (3,440) | -- |
| Purchases of property and equipment | (807) | (383) |
| Disposals of property and equipment | 38 | -- |
| Collection of note receivable | 9 | 10 |
| Purchases of intangible assets | -- | (62) |
| Net cash used in investing activities | (4,200) | (435) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||
| Proceeds from notes payable | 18,181 | 4,000 |
| Payments on notes payable | (19,311) | (6,880) |
| Payments on amendment of senior notes payable | (704) | (330) |
| Debt financing fees | (565) | -- |
| Payments on capital leases | (144) | (88) |
| Insurance proceeds for settlement of notes payable dispute, net of expenses | 372 | -- |
| Net proceeds from issuance of common stock | -- | 3,433 |
| Net proceeds from exercise of stock options | 24 | 35 |
| Net cash provided by (used in) financing activities | (2,147) | 170 |
| Effect of foreign exchange rates | 23 | 1 |
| Net increase (decrease) in cash and cash equivalents | (3,618) | 1,761 |
| Cash and cash equivalents at beginning of period | 3,938 | 2,177 |
| Cash and cash equivalents at end of period | $ 320 | $ 3,938 |
| SUPPLEMENTAL INFORMATION: | ||
| Cash paid for: | ||
| Interest | $ 941 | $ 1,461 |
| Non-cash Investing and Financing Activities: | ||
| Conversion of subordinated convertible notes payable to equity | 248 | 93 |
| Accrued contingent consideration upon acquisition | 327 | -- |
*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 items. 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 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 by adding 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 Excluding One-time items.
| FOR THE THREE MONTHS ENDED | ||
| December 31, | December 31, | |
| $000s | 2014 | 2013 |
| Net Income (Loss) | 92 | (102) |
| Interest and amortization of OID | 275 | 613 |
| Tax | (23) | (4) |
| Depreciation | 126 | 121 |
| Amortization | 635 | 592 |
| Stock Compensation | 95 | 47 |
| EBITDA | 1,200 | 1,267 |
| One-time items | 145 | 215 |
| EBITDA excluding one-time items | 1,345 | 1,482 |
| FOR THE TWELVE MONTHS ENDED | ||
| December 31, | December 31, | |
| $000s | 2014 | 2013 |
| Net Income (Loss) | (262) | (1,662) |
| Interest and amortization of OID | 1,354 | 2,394 |
| Tax | 117 | 117 |
| Depreciation | 462 | 452 |
| Amortization | 2,359 | 2,495 |
| Stock Compensation | 226 | 160 |
| EBITDA | 4,256 | 3,956 |
| One-time items | 796 | 867 |
| EBITDA excluding one-time items | 5,052 | 4,823 |
| Reconciliation of GAAP Net Earnings to Net Earnings Excluding One-time items | ||
| FOR THE THREE MONTHS ENDED | ||
| $000s | December 31 | |
| 2014 | 2013 | |
| Net Income (Loss) | 92 | (102) |
| Legal & Professional Services | 21 | 163 |
| Severance, Recruitment & Relocation | 111 | 52 |
| Other one-time items (net) | 13 | -- |
| Sub-total excluding Taxes | 145 | 215 |
| Sub-total one-time items | 145 | 215 |
| Net Income (Loss) excluding one-time items | 237 | 113 |
| FOR THE TWELVE MONTHS ENDED | ||
| $000s | December 31 | |
| 2014 | 2013 | |
| Net Income (Loss) | (262) | (1,662) |
| Legal & Professional Services | 208 | 697 |
| Loss on Debt Refinancing | 1,402 | -- |
| Gain on Settlement of Note Payable and litigation | (1,034) | -- |
| Severance, Recruitment & Relocation | 195 | 212 |
| Gain on sale of assets | -- | (72) |
| Interest income from settlement | -- | (48) |
| Other one-time items (net) | 25 | 78 |
| Sub-total excluding Taxes | 796 | 867 |
| Sub-total one-time items | 796 | 867 |
| Net Income (Loss) excluding one-time items | 534 | (795) |
| Reconciliation of GAAP Revenue to Non-GAAP revenue | ||
| FOR THE THREE MONTHS ENDED | ||
| $000s | December 31 | |
| 2014 | 2013 | |
| Revenue | 7,101 | 6,732 |
| Adjustment | -- | 13 |
| Non- GAAP revenue | 7,101 | 6,745 |
| FOR THE TWELVE MONTHS ENDED | ||
| $000s | December 31 | |
| 2014 | 2013 | |
| Revenue | 27,206 | 25,474 |
| Adjustment | -- | 416 |
| Non- GAAP revenue | 27,206 | 25,890 |
| 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. | ||
CONTACT: For more information contact:
Brad Wolfe, CFO
Asure Software, Inc.
888-323-8835
bwolfe@asuresoftware.com