Asure Software Inc.
Mar 26, 2014

Asure Software Meets Expectations With Solid Financial Results for Fourth Quarter and Fiscal Year 2013

AUSTIN, Texas, March 26, 2014 (GLOBE NEWSWIRE) -- Asure Software, Inc. (Nasdaq:ASUR), a leading provider of workplace management software, announced results for the fourth quarter ended December 31, 2013.

Strategic Highlights & Recent Events

Results

Management Commentary

Pat Goepel, Chief Executive Officer of Asure Software commented, "We're extremely pleased with our record-sales fourth quarter performance, which was driven by our ability to bring differentiated product offerings to the market to meet growing customer demand for SaaS-based solutions. In addition to strong sales, we've seen tremendous advancements in the product development and customer support areas of our businesses; these improvements have resulted in stronger sales and higher customer satisfaction. In fact, 87% of AsureSpace customers are willing to recommend Asure to a friend or colleague. We exited the year in a strong position, posting solid financial results and meeting expectations. With the recent announcement of the Wells Fargo refinancing, the settlement of the PeopleCube litigation, and our increasing global expansion, we are excited to enter the new year and are very optimistic about 2014 business goals."

Jennifer Crow, Asure's Chief Financial Officer added, "We are pleased with our new debt structure with Wells Fargo Bank. This new facility provides a lower cost of debt and provides greater financial flexibility. We are excited about growing our relationship with Wells Fargo and look forward to working with them to execute our continued growth strategy."

Please see below for details around Asure's financial results.

Company Outlook  
$000s FY 14
Revenue $29,000 - $30,000
EBITDA, excluding one-time items $5,500 - $6,500
Net income per share, excluding one-time items $0.08 - $0.24

Conference Call Details

Asure will follow this announcement with a conference call for the investment community on Wednesday, March 26, 2014 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 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 15536683.

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 5,000 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 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
$000sDecember 31,
2013
December 31,
2012

Inc/Dec
Net Income (Loss)(102)(633)531
Interest and amortization of OID 613 575 38
Tax (4) 89 (93)
Depreciation 121 92 29
Amortization 592 629 (37)
Stock Compensation 47 21 26
EBITDA1,267773 494
One-time items21517540
EBITDA excluding one-time items1,482948534
 
FOR THE TWELVE MONTHS ENDED
$000sDecember 31,
2013
December 31,
2012

Inc/Dec
Net Loss(1,662)(3,032)1,370
Interest and amortization of OID 2,394 1,519 875
Derivative mark -to-market - 465 (465)
Tax 117 285 (168)
Depreciation 452 253 199
Amortization 2,495 2,042 453
Stock Compensation 160 88 72
EBITDA3,9561,6202,336
 One-time items8671,675(808)
EBITDA excluding one-time items4,8233,2951,528
 
Reconciliation of GAAP Net Earnings to Net Earnings Excluding One-time items
 
$000sFOR THE THREE MONTHS ENDED
December 31
 20132012
Net Income (Loss)(102)(633)
Legal & Professional Services 163 146
Severance, Recruitment & Relocation 52 26
Other one-time items (net) - 3
Sub-total excluding Taxes215175
Sub-total one-time items215175
Net Gain/(Loss) excluding one-time items113(458)
   
$000sFOR THE TWELVE MONTHS ENDED 
December 31
 20132012
Net Loss(1,662)(3,032)
Legal & Professional Services 697 1,128
Severance, Recruitment & Relocation 212 395
Gain on sale of assets (72) -
Interest income from settlement (48) -
Site Consolidation - 55
Derivative mark-to-market - 465
Loss on Debt Conversion - 198
3:2 Stock Split - 19
Provision for Taxes - Site Shut Down - 60
Other one-time items (net) 78 54
Sub-total excluding Taxes and MTM8671,849
Sub-total one-time items8672,374
Net Gain/(Loss) excluding one-time items(795)(658)
 
 
Reconciliation of GAAP Revenue to Non-GAAP revenue
 
$000sFOR THE THREE MONTHS ENDED
December 31
 20132012
Revenue 6,7325,948
Adjustment 13 317
Non- GAAP revenue6,7456,265
$000sFOR THE TWELVE MONTHS ENDED 
December 31
 20132012
Revenue 25,47419,965
Adjustment  416 978
Non- GAAP revenue25,890 20,943

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.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
 
 December 31,
2013
December 31,
2012
Assets    
Current assets:    
Cash and cash equivalents $ 3,938 $ 2,177
Restricted cash 400 250
Accounts receivable, net of allowance for doubtful accounts of $168 and $182 at December 31, 2013 and December 31, 2012, respectively 3,902 3,040
Inventory 77 266
Notes receivable 9 19
Prepaid expenses and other current assets 1,334  1,497
Total current assets9,6607,249
Property and equipment, net 1,233 1,154
Goodwill 15,005 15,525
Intangible assets, net 9,679 12,179
Other assets 38 41
Total assets $ 35,615$ 36,148
Liabilities and stockholders' equity    
Current liabilities:    
Current portion of notes payable $ 4,308 $ 3,450
Accounts payable 1,669 2,713
Accrued compensation and benefits 473 78
Other accrued liabilities 988 706
Deferred revenue 10,059 9,684
Total current liabilities17,49716,631
Long-term liabilities:    
Deferred revenue 759 199
Notes payable- related party - 800
Notes payable 12,698 15,887
Other liabilities 444 471
Total long-term liabilities13,90117,357
Stockholders' equity:    
Preferred stock, $.01 par value; 1,500 shares authorized; none issued or outstanding - -
Common stock, $.01 par value; 11,000 shares authorized; 6,353 and 5,644 shares issued,
 5,969 and 5,260 shares outstanding at December 31, 2013 and December 31, 2012, respectively
63 56
Treasury stock at cost, 384 shares at December 31, 2013 and December 31, 2012 (5,017) (5,017)
Additional paid-in capital 278,159 274,445
Accumulated deficit (268,884) (267,222)
Accumulated other comprehensive loss (104) (102)
Total stockholders' equity4,2172,160
 $ 35,615$ 36,148
 
ASURE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Amounts in thousands, except share and per share data)
 
 FOR THE
TWELVE MONTHS ENDED
DECEMBER 31,
 20132012
Revenues $ 25,474 $ 19,965
Cost of sales 6,425 4,573
Gross Margin19,04915,392
     
Operating Expenses    
Selling, general and administrative 13,252 11,803
Research and development 2,835 2,376
Amortization of intangible assets 2,180 1,726
Total Operating Expenses18,26715,905
     
Income (Loss) From Operations782(513)
     
Other Income (Loss)    
Interest income 49 3
Gain (loss) on sale/disposal of assets 72 (28)
Loss on debt conversion - (198)
Foreign currency translation gain (loss) (24) (27)
Interest expense and other (1,943) (1,169)
Interest expense - amortization of OID and derivative mark-to-market (481) (815)
Total other income (loss), net(2,327)(2,234)
     
Loss From Operations before Income Taxes(1,545)(2,747)
Income tax provision (117) (285)
Net Loss$(1,662)$(3,032)
Other Comprehensive Income (Loss):    
Foreign currency gain (loss) (2)  26
Other Comprehensive Income (Loss)$ (1,664)$ (3,006)
     
Basic and Diluted Net Loss Per Share    
Basic $ (0.29) $ (0.60)
Diluted $ (0.29) $ (0.60)
Weighted Average Basic and Diluted Shares    
Basic 5,661,000 5,048,000
Diluted 5,661,000 5,048,000
 
 
ASURE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
 
 FOR THE
YEAR
DECEMBER 31,
 20132012
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (1,662) $ (3,032)
Adjustments to reconcile net loss to net cash provided by operations:    
Depreciation and amortization 2,947 2,295
Provision for doubtful accounts 37 179
Share-based compensation 160 88
Interest income on settlement (48) -
(Gain) loss on sale/disposal of assets (72) 28
Amortization of OID and derivative mark-to-market 481 815
Gain on debt payoff (98) -
Loss on debt conversion  - 198
Changes in operating assets and liabilities:    
Restricted cash (150) (250)
Accounts receivable (899) 1,095
Inventory 177 (150)
Prepaid expenses and other assets 495 (229)
Accounts payable  (1,008) 692
Accrued expenses and other long-term obligations 737 140
Deferred revenue  928 940
Net cash provided by operating activities2,0252,809
     
CASH FLOWS FROM INVESTING ACTIVITIES:    
Net purchases of property and equipment (383) (904)
Purchases of intangible assets (62)  (351)
Collection of note receivable 10 77
Acquisitions net of cash acquired - (9,800)
 Net cash used in investing activities(435)(10,978)
     
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from notes payable 4,000 14,500
Payments on notes payable  (6,880)  (3,833)
Payments on conversion of subordinated notes payable - (222)
Payments on line of credit - (500)
Payments on capital leases  (88) (33)
Debt financing fees (330) (680)
Net proceeds from issuance of common stock 3,433 -
Net proceeds from exercise of stock options 35 20
Net cash provided by (used in) financing activities 1709,252
     
Effect of foreign exchange rates127
     
Net increase (decrease) in cash and cash equivalents1,7611,110
Cash and equivalents at beginning of period2,1771,067
Cash and equivalents at end of period$ 3,938$ 2,177
     
SUPPLEMENTAL INFORMATION:    
Cash paid for:    
Interest $ 1,461 $ 797
     
Non-cash Investing and Financing Activities:    
Conversion of subordinated convertible notes payable to equity  93 2,247
Issuance of common stock upon acquisition  - 747 
CONTACT: Jennifer Crow, CFO

         Asure Software, Inc.

         512-437-2732

         jcrow@asuresoftware.com