Asure Software Inc.
Aug 12, 2015

Asure Software Reports Record Revenue and Solid Financial Results for 2015 Second Quarter

 
In thousands, except per share data Q2 2015Q2 2014% ChangeYTD Q2 2015YTD Q2 2014% Change
Revenue $7,159 $6,548 up 9% $13,491 $13,075 up 3%
Gross Margin $5,280 $5,175 up 2% $9,960 $10,144 down 2%
Net income (loss) $95 $15 up 533% ($388) ($515) up 25%
EBIDTA, excluding one-times* $1,385 $1,179 up 18% $2,357 $2,319 up 2%
Diluted net income (loss) per share, excluding one-times* $0.04 $0.02   $0.00 $0.00  
 

AUSTIN, Texas, Aug. 12, 2015 (GLOBE NEWSWIRE) -- Asure Software, Inc. (Nasdaq:ASUR), a leading provider of workplace management software, announced results for the second quarter ended June 30, 2015.

Strategic Highlights

Results

Pat Goepel, Chief Executive Officer of Asure Software commented, "We are continuing to see the growth of the hoteling, hotdesking, and mobile workforce around the world. With recent wins across numerous Fortune 1000 companies over the last four months, we are well positioned to build on this momentum going into the last half of the year. As we anticipated, we solved our hardware inventory delay challenges. We're really starting to hit our stride and are excited to see the continuation of the progress we've made this quarter as we work to sign additional technology partners, continue to innovate our products, work through our partner channels and as more of the market understands the scope of the products and services we provide in supporting the digital workplace. "

Brad Wolfe, Asure's Chief Financial Officer added, "The Company is well-positioned to drive bookings growth, revenue and EBITDA moving forward. We expect to continue our Q2 performance throughout the remainder of year and forward. Accordingly, we reaffirm our 2015 guidance as stated in our fourth quarter 2014 earnings release."  

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

Company Outlook

$000sFY 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, August 12, 2015 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 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 98756427.

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) is headquartered in Austin, Texas with regional headquarters in London, England. Asure helps companies better manage their global, mobile workforces with cloud-based and mobile 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.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
 
 June 30,
2015
December 31,
2014
Assets    
Current assets:    
Cash and cash equivalents $ 213 $ 320
Accounts receivable, net of allowance for doubtful accounts of $128 and $120 at June 30, 2015 and December 31, 2014, respectively 5,159 5,295
Inventory 313 170
Prepaid expenses and other current assets 1,516 1,303
Total current assets7,2017,088
Property and equipment, net 2,188 1,539
Goodwill 17,441 17,500
Intangible assets, net 7,096 8,322
Other assets 803 19
Total assets$ 34,729$ 34,468
Liabilities and stockholders' equity    
Current liabilities:    
Current portion of notes payable $ 844 $ 750
Accounts payable 2,124 1,533
Accrued compensation and benefits 239 350
Other accrued liabilities 989 1,128
Deferred revenue 10,409 10,641
Total current liabilities14,60514,402
Long-term liabilities:    
Deferred revenue 833 475
Notes payable 13,928 14,381
Other liabilities 631 739
Total long-term liabilities15,39215,595
Stockholders' equity:    
Preferred stock, $.01 par value; 1,500 shares authorized; none issued or outstanding -- --
Common stock, $.01 par value; 11,000 shares authorized; 6,674 and 6,434 shares issued, 6,290 and 6,050 shares outstanding at June 30, 2015 and December 31, 2014, respectively 67 64
Treasury stock at cost, 384 shares at June 30, 2015 and December 31, 2014 (5,017) (5,017)
Additional paid-in capital 279,337 278,656
Accumulated deficit (269,534) (269,146)
Accumulated other comprehensive loss (121) (86)
Total stockholders' equity4,7324,471
Total liabilities and stockholders' equity$ 34,729$ 34,468
 
ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Amounts in thousands, except share and per share data)
(Unaudited)
 
 FOR THE
THREE MONTHS
ENDED
June 30,
FOR THE
SIX MONTHS
ENDED
June 30,
 2015201420152014
Revenues$ 7,159$ 6,548$ 13,491$ 13,075
Cost of sales1,8791,3733,5312,931
Gross margin5,2805,1759,96010,144
         
Operating expenses        
Selling, general and administrative 3,612 3,495 7,061 6,857
Research and development 743 855 1,481 1,576
Amortization of intangible assets 504 497 1,009 994
Total operating expenses4,8594,8479,5519,427
         
Income from operations421328409717
         
Other income (loss)        
Loss on lease termination -- -- (110) --
Gain on settlement of note payable and litigation -- -- -- 1,034
Loss on debt refinancing -- -- -- (1,402)
Foreign currency translation gain (loss) 3 (10) (8) (12)
Interest expense and other (279) (264) (561) (721)
Interest expense- amortization of original issue discount (OID) (8) (4) (16) (54)
Total other loss, net(284)(278)(695)(1,155)
         
Income (loss) from operations before income taxes13750(286)(438)
Income tax provision (42) (35) (102) (77)
Net income (loss)$ 95$ 15$ (388)$ (515)
Other comprehensive income (loss):        
Foreign currency loss (41) (10) (35) (18)
Other comprehensive income (loss)$ 54$ 5$ (423)$ (533)
         
Basic and diluted net income (loss) per share        
Basic $ 0.02 $ 0.00 $ (0.06) $ (0.09)
Diluted $ 0.02 $ 0.00 $ (0.06) $ (0.09)
Weighted average basic and diluted shares        
Basic  6,066,000 5,979,000 6,061,000 5,975,000
Diluted  6,231,000  6,364,000 6,061,000 5,975,000
 
ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
 
 FOR THE
SIX MONTHS ENDED
JUNE 30,
 20152014
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (388) $ (515)
Adjustments to reconcile net loss to net cash provided by operations:    
Depreciation and amortization 1,553 1,367
Provision for doubtful accounts 40 --
Share-based compensation 98 81
Gain on settlement of note payable and litigation -- (1,034)
Loss on debt refinancing -- 1,402
Other 26 54
Changes in operating assets and liabilities:    
Restricted cash -- 250
Accounts receivable 96 474
Inventory (143) (183)
Prepaid expenses and other assets (922) (15)
Accounts payable 572 (264)
Accrued expenses and other long-term obligations (196) (10)
Deferred revenue 126 (860)
Net cash provided by operating activities862747
     
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property and equipment (989) (290)
Disposals of property and equipment 18  
Collection/(Issuance) of note receivable -- 9
Net cash used in investing activities(971)(281)
     
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from notes payable 2,500 15,000
Payments on notes payable (2,875) (16,436)
Payments on amendment of senior notes payable (75) (704)
Debt financing fees -- (565)
Payments on capital leases (97) (67)
Insurance proceeds for settlement of notes payable dispute, net of expenses -- 373
Net proceeds from exercise of stock options 585 21
Net cash provided by (used in) financing activities38(2,378)
     
Effect of foreign exchange rates(36)(21)
     
Net decrease in cash and cash equivalents(107)(1,933)
Cash and cash equivalents at beginning of period3203,938
Cash and cash equivalents at end of period$ 213$ 2,005
     
SUPPLEMENTAL INFORMATION:    
Cash paid for:    
Interest $ 586 $ 697
     
Non-cash Investing and Financing Activities:    
Note receivable from customer 601  --


*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.

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

$000sJune 30,
2015
June 30,
2014
Net Income9515
Interest and amortization of OID 287 268
Tax  42 35
Depreciation 158 109
Amortization 610 572
Stock Compensation  12 42
EBITDA1,2531,041
One-time items132138
EBITDA excluding one-time items1,3851,179



FOR THE SIX MONTHS ENDED

$000sJune 30,
2015
June 30,
2014
Net Loss(388)(515)
Interest and amortization of OID 577 775
Tax 102 77
Depreciation 332 222
Amortization 1,221 1,145
Stock Compensation 98 81
EBITDA1,9421,785
One-time items 415534
EBITDA excluding one-time items2,3572,319
 
Reconciliation of GAAP Net Earnings to Net Earnings Excluding One-time items
 
$000sFOR THE THREE MONTHS ENDED
June 30
 20152014
Net Income9515
Legal & Professional Services1052
Severance, Recruitment & Relocation--73
Other one-time items (net)12213
Sub-total excluding Taxes132138
Sub-total one-time items132138
Net Income excluding one-time items227153
     
$000sFOR THE SIX MONTHS ENDED
 June 30
 20152014
Net Loss(388)(515)
Loss on Debt Refinancing--1,402
Gain on Settlement of Note Payable and litigation--(1,034)
Legal & Professional Services1880
Severance, Recruitment & Relocation5573
Other one-time items (net)342 13
Sub-total excluding Taxes415534
Sub-total one-time items415534
Net Income excluding one-time items2719
CONTACT: For more information contact:

         

         Brad Wolfe, CFO

         Asure Software, Inc.

         888-323-8835

         bwolfe@asuresoftware.com