Asure Software Inc.
May 14, 2014

Asure Software Meets Expectations With Solid Financial Results for 2014 First Quarter

 
In thousands, except per share dataQ1 2014Q1 2013% Change
Revenue $6,527 $5,975 up 9%
Gross margin $4,969 $4,198 up 18%
Net income (loss) $(530) $(1,100) up 52%
EBITDA, excluding one-times* $1,140 $727 up 57%
Net loss per share $(0.09) $(0.21)  
Net loss per share, excluding one-times* $(0.02) $(0.15)  

AUSTIN, Texas, May 14, 2014 (GLOBE NEWSWIRE) -- Asure Software, Inc. (Nasdaq:ASUR), a leading provider of workplace management software, announced results for the first quarter ended March 31, 2014.

Strategic Highlights

Results

Management Commentary

Pat Goepel, Chief Executive Officer of Asure Software commented, "We remain focused on continued sustainable, annual growth of repetitive Cloud and SaaS bookings and revenue across both product lines, in the U.S. and globally. Marketplace demand for Cloud, SaaS-based offerings that are supported by integrated hardware continues. This positive trend, along with a demonstrated ability to execute on product development initiatives and customer support positions us positively for a strong overall performance in 2014."

Jennifer Crow, Asure's Chief Financial Officer added, "We are pleased with our first quarter performance and our continued progress in building our financial strength. In the past year, we have grown top line revenue while decreasing our cost of sales. Although our revenue was down this quarter due to seasonality as compared to the fourth quarter of 2013, we closed the quarter with nine percent revenue growth over the same quarter a year ago. We also grew our EBITDA, excluding one-times*, by 57% over the first quarter in 2013. With the lower cost of debt under our new facility with Wells Fargo and our projected revenue growth in 2014, the company expects to improve free cash flow generation allowing us to pay down our debt or help fund future acquisitions. We look forward to continuing to execute our growth strategy."  

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

Company Outlook  
$000sFY 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, May, 14, 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 43406595.

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. 

$000sMarch 31,
2014
March 31,
2013
Net Income (Loss)(530)(1,100)
Interest and amortization of OID 507 680
Tax 42 39
Depreciation 113 112
Amortization 573 652
Stock Compensation 39 24
EBITDA744407
One-time items396320
EBITDA excluding one-time items1,140727
 
Reconciliation of GAAP Net Earnings to Net Earnings Excluding One-time items
$000sFOR THE THREE MONTHS ENDED
March 31
 20142013
Net Income (Loss)(530)(1,100)
Loss on Debt Refinancing 1,402 --
Gain on Settlement of Note Payable and litigation (1,034) --
Legal & Professional Services 28 214
Severance, Recruitment & Relocation -- 91
Other one-time items (net) -- 15
 Sub-total excluding Taxes396320
Sub-total one-time items396320
Net Gain/(Loss) excluding one-time items(134)(780)
     
     
Reconciliation of GAAP Revenue to Non-GAAP revenue
$000sFOR THE THREE MONTHS ENDED 
March 31
 20142013
Revenue 6,5275,975
Adjustment -- 216
Non- GAAP revenue6,5276,191
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, 2014December 31, 2013
Assets    
Current assets:    
Cash and cash equivalents $1,672 $3,938
Restricted cash 400 400
Accounts receivable, net of allowance for doubtful accounts of $146 and $168 at March 31, 2014 and December 31, 2013, respectively 4,213 3,902
Inventory 79 77
Notes receivable 4 9
Prepaid expenses and other current assets 1,234 1,334
Total current assets7,6029,660
Property and equipment, net 1,287 1,233
Goodwill 15,006 15,005
Intangible assets, net 9,106 9,679
Other assets 33 38
Total assets $33,034 $35,615
Liabilities and stockholders' equity    
Current liabilities:    
Current portion of notes payable $992 $4,308
Accounts payable 1,850 1,669
Accrued compensation and benefits 219 473
Other accrued liabilities 825 988
Deferred revenue 10,042 10,059
Total current liabilities13,92817,497
Long-term liabilities:    
Deferred revenue 669 759
Notes payable 14,250 12,698
Other liabilities 448 444
Total long-term liabilities15,36713,901
Stockholders' equity:    
Preferred stock, $.01 par value; 1,500 shares authorized; none issued or outstanding -- --
Common stock, $.01 par value; 11,000 shares authorized; 6,363 and 6,353 shares issued, 5,979 and 5,969 shares outstanding at March 31, 2014 and December 31, 2013, respectively  63  63
Treasury stock at cost, 384 shares at March 31, 2014 and December 31, 2013 (5,017) (5,017)
Additional paid-in capital 278,219 278,159
Accumulated deficit (269,414) (268,884)
Accumulated other comprehensive loss (112) (104)
Total stockholders' equity3,7394,217
 $33,034$35,615
 
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,
 20142013
Revenues $6,527 $5,975
Cost of sales 1,558 1,777
Gross margin4,9694,198
     
Operating expenses    
Selling, general and administrative 3,362 3,276
Research and development 721 700
Amortization of intangible assets 497 582
Total operating expenses4,5804,558
     
Income (loss) from operations389(360)
     
Other income (loss)    
Gain on settlement of note payable and litigation 1,034 --
Loss on debt refinancing (1,402) --
Foreign currency translation gain (loss) (2) (21)
Interest expense and other (457) (530)
Interest expense - amortization of original issue discount (OID) (50) (150)
Total other income (loss), net(877)(701)
     
Loss from operations before income taxes(488)(1,061)
Income tax provision (42) (39)
Net loss$(530)$(1,100)
Other comprehensive income (loss):    
Foreign currency gain (loss)  (8)  38
Other comprehensive income (loss)$(538) $(1,062)
     
Basic and diluted net loss per share    
Basic $(0.09) $(0.21)
Diluted $(0.09) $(0.21)
Weighted average basic and diluted shares    
Basic 5,970,870 5,261,000
Diluted 5,970,870 5,261,000
 
 ASURE SOFTWARE, INC.
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
     
 FOR THE
 THREE MONTHS ENDED
 MARCH 31,
 20142013
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $(530) $(1,100)
Adjustments to reconcile net loss to net cash provided by operations:    
Depreciation and amortization 686 764
Provision for doubtful accounts  --  2
Share-based compensation 39 24
Amortization of original issue discount (OID) 50 150
Gain on settlement of note payable and litigation (1,034) --
Loss on debt refinancing 1,402 --
Changes in operating assets and liabilities:    
Accounts receivable (311) (184)
Inventory  (2)  (82)
Prepaid expenses and other assets (17) (172)
Accounts payable  181  (151)
Accrued expenses and other long-term obligations (286) 405
Deferred revenue (107) 420
Net cash provided by operating activities  71  76
CASH FLOWS FROM INVESTING ACTIVITIES:    
Net purchases of property and equipment (168) (140)
Collection of note receivable  5  --
Net cash used in investing activities (163) (140)
     
CASH FLOWS FROM FINANCING ACTIVITIES:    
Payments on notes payable  (16,248)  (363)
Proceeds from notes payable 15,000 --
Payments on amendment of senior notes payable (704)  (188)
Debt financing fees (575) --
Insurance proceeds for settlement of notes payable dispute, net of expenses  373  --
Payments on capital leases (32) (24)
Net proceeds from exercise of options 21 5
Net cash used in financing activities (2,165) (570)
     
Effect of translation exchange rates (9) 45
     
Net increase (decrease) in cash and cash equivalents (2,266) (589)
Cash and equivalents at beginning of period3,9382,177
Cash and equivalents at end of period$1,672$1,588
     
SUPPLEMENTAL INFORMATION:    
Cash paid for:      
Interest $484 $399
CONTACT: For more information contact:

         Jennifer Crow, CFO

         Asure Software, Inc.

         512-437-2732

         jcrow@asuresoftware.com