Asure Software Inc.
Nov 8, 2011

Asure Software Reports Second Consecutive Profitable Quarter; Raises EBITDA Guidance for Fourth Quarter

AUSTIN, Texas, Nov. 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 '11FY '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. (Nasdaq: 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
$000sSeptember 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 Costs462251211
       
       
FOR THE NINE MONTHS ENDING
$000sSeptember 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 Costs1,087901186
         
Reconciliation of GAAP Net Earnings to Net Earnings Excluding 1-Time Items
 
$000sFOR THE THREE MONTHS ENDED
SEPTEMBER 30
FOR THE NINE MONTHS ENDED
SEPTEMBER 30
 2011201020112010
Net Gain/(Loss)290(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 Items1891427258
     
ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share data)
(Unaudited)
     
  September 30, 2011December 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    
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    
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 THEFOR THE
 THREE MONTHS ENDEDNINE MONTHS ENDED
 SEPTEMBER 30,SEPTEMBER 30,
  2011201020112010
Revenues $ 2,502 $ 2,542 $ 7,293 $ 7,627
Cost of Sales(486)(601)(1,363)(1,741)
Gross Margin2,0161,9415,9305,886
              
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 Expenses2,0422,0515,9397,142
              
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)64683539
              
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 
CONTACT:  David Scoglio

          512-437-2732