Asure Software Inc.
May 15, 2013

Asure Software Reports 2013 First Quarter Financial Results Exceeding Expectations

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

Q1 Results

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 13FY 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
$000sMarch 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 Gain407268 139
One-time items320509 (189)
EBITDA Gain excluding one-time items727777(50)
 
Reconciliation of GAAP Net Earnings to Net Earnings Excluding One-time items
 
$000sFOR THE THREE MONTHS ENDED
March 31
 20132012
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 items320974
Net Gain/(Loss) excluding one-time items(780)127
 
Reconciliation of GAAP Revenue to Non-GAAP revenue
 
$000sFOR PERIOD ENDED MARCH 31
 Three months
ended 2013
Three months
ended 2012
Revenue 5,9754,153
Adjustment 216 65
Non- GAAP revenue6,191 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,
 20132012
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 assets7,2727,249
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 liabilities17,49816,938
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 liabilities16,92717,050
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' equity1,1272,160
 $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,
 20132012
Revenues $5,975 $4,153
Cost of sales 1,777 1,046
Gross Margin 4,1983,107
     
Operating Expenses    
Selling, general and administrative 3,276 2,135
Research and development 700 591
Amortization of intangible assets 582 292
Total Operating Expenses4,5583,018
     
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,
 20132012
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 period2,1771,067
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