Asure Software Inc.
ASURE SOFTWARE INC (Form: 8-K, Received: 08/14/2012 15:01:27)


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 


FORM 8-K
 

 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): August 14, 2012
 
ASURE SOFTWARE, INC.
(Exact name of registrant as specified in charter)
 
Delaware
0-20008
 
74-2415696
(State or other jurisdiction of incorporation or organization)
(Commission File No.)
 
(IRS Employer Identification No.)
 
110 Wild Basin Rd., Austin, Texas 78746
(Address of principal executive offices)
 
512-437-2700
(Registrant’s telephone number, including area code)
 
N/A
(Former Name and Address)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
 
o             Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
o             Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
o             Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
o             Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 

 
 
Item 2.02. Results of Operations and Financial Condition.

On August 14, 2012, Asure Software, Inc. (the “Company”) issued a press release announcing its financial results for its second quarter ended June 30, 2012. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information contained in this Item 2.02 of this Current Report (including the press release furnished as an exhibit hereto) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01.   Financial Statements and Exhibits.

(d)           Exhibits

Exhibit
 
Description
     
99.1
 
     

 
 

 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
   
ASURE SOFTWARE, INC.
 
       
  By: /s/ David Scoglio                                                 
   
David Scoglio, Chief Financial Officer
 
Dated: August 14, 2012      

 
 

 
Exhibit 99.1
Asure Software Reports Second Quarter Results

 
·   Q2 EBITDA of $838,000, excluding one-time items; vs. guidance range of $740,000 to $840,000
·   Q2 Revenue of $4.2 million vs. guidance range of $4.10 to $4.20 million
 
·   Q2 Earnings of $0.03 per share, excluding one-time items
  
AUSTIN, Texas, August 14, 2012 (GLOBE NEWSWIRE) -- Asure Software, Inc. (Nasdaq:ASUR), a leading provider of workplace management software, announced results for the second quarter ended June 30 th , 2012.
 
Second quarter results, excluding one-time items, included earnings of $0.03 per share and EBITDA of $838,000.  One-time acquisition-related legal and professional services, site consolidation and other one-time expenses related to Asure’s acquisitions of Peoplecube, ADI Time and Legiant amounted to $487,000, or ($0.10) per share.
 
Asure recently split the company's common stock on a 3-for-2 basis, in the form of a 50% stock dividend.  This split went into effect on May 1, 2012.
 
KEY FACTS FOR Q2:
 
Second quarter revenue was $4.2M, a 73% increase over the second quarter of 2011. The year over year increase was largely driven by the full quarter effect of the acquisitions of ADI Time and Legiant, which occurred in the fourth quarter of 2011. Asure’s recurring revenue as a percentage of overall revenue remained strong at 76%.  Gross margins improved sequentially by one point, to 76%.  Total bookings increased 8% sequentially, while annual cloud bookings increased 10% year over year.   Annual cloud bookings represent new annual contract revenue, excluding multi-year sales.
 
“The second quarter of 2012 recognized continued growth in organic cloud bookings.” commented Pat Goepel , Asure Software’s Chief Executive Officer.  “The increase in cloud bookings confirms the results of our strategy, as well as the acceptance of our products in the market.  We expect this trend to continue as we execute organic and inorganic growth in the workplace management space.”

David Scoglio , Asure’s Chief Financial Officer added, “Asure posted a strong second quarter financially as EBITDA and revenue were at the upper end of published guidance.  Free cash flow for the quarter, at $223K, fell below earlier guidance due to costs related to the acquisition of PeopleCube and higher capital expenditures due to initial upgrades of our cloud infrastructure.”  See below tables for details around Asure’s financial results and guidance.
 
2012 / 2013 Guidance
$000s

 
Conference Call Details
Asure will follow this announcement with a conference call for the investment community on Tuesday August 14, 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 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 conference ID for all callers is 15153489 .
 
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. Asure Software's intuitive and innovative technologies enable companies of all sizes and complexities to operate more efficiently. Simply put, we turbocharge your workplace by stimulating your workforce and maximizing your company’s resources while eliminating waste out of employee's workflow.

Asure Software is an industry leader in providing cloud-based workplace management solutions. Over 11,000 clients deploy our workplace management software products, hardware products, services and support to improve their workforce and workplace 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.
 
Reconciliation of GAAP Net Earnings to Earnings Before Interest, Taxes, Depreciation, Amortization and Stock
 Compensation Expense (EBITDA) and EBITDA Gain Excluding 1 Time Costs.
 
FOR THE THREE MONTHS ENDING
 
$000s  
June 30, 2012
   
June 30, 2011
   
Inc/Dec
 
Net Gain/(Loss)
  (323 )     27       (350 )
Interest
  174       12       162  
Interest - Mark to Market
  0       0       0  
Tax
  120       12       108  
Depreciation
  58       38       20  
Amortization
  357       195       162  
Stock Compensation
  25       14       11  
EBITDA Gain
  411       298       113  
1 Time Costs
  427       60       367  
EBITDA Gain excl. 1 Time Costs
  838       358       480  
 
 
 

 
 
Reconciliation of GAAP Net Earnings to Earnings Before Interest, Taxes, Depreciation, Amortization and Stock
 Compensation Expense (EBITDA) and EBITDA Gain Excluding 1 Time Costs.
 
FOR THE SIX MONTHS ENDING
 
$000s  
June 30, 2012
   
June 30, 2011
   
Inc/Dec
 
Net Gain/(Loss)
    (1,170 )     (33 )     (1,137 )
Interest
    364       22       342  
Interest - Mark to Market (MTM)
    465       0       465  
Tax
    165       21       144  
Depreciation
    105       81       24  
Amortization
    714       390       324  
Stock Compensation
    35       28       7  
EBITDA Gain
    678       509       169  
1 Time Costs Exc. MTM & Taxes
    936       116       820  
EBITDA Gain excl. 1 Time Costs
    1,614       625       989  

Reconciliation of GAAP Net Earnings to Net Earnings Excluding 1-Time Items
 
$000s      
FOR THE THREE MONTHS ENDED JUNE 30
 
          2012       2011  
Net Gain/(Loss)
      (323 )     27  
Legal & Professional Services
      298       0  
Severance & Recruitment
      60       23  
Site Consolidation
      50       0  
3:2 Stock Split
      19       0  
Provision for Taxes - Site Shut down
      60       0  
Other 1-Time Items (net)
      0       37  
sub-total ex Taxes
      427       60  
Sub-total 1-Time Costs
      487       60  
Net Gain Excl. 1-Time Costs
      164       87  

Reconciliation of GAAP Net Earnings to Net Earnings Excluding 1-Time Items
 
$000s      
FOR THE SIX MONTHS ENDED JUNE 30
 
          2012       2011  
Net Gain/(Loss)
      (1,170 )     (33 )
Legal & Professional Services
      543       0  
Severance & Recruitment
      97       79  
Site Consolidation
      50       0  
Interest - Mark to Market
      465       0  
Loss on Conversion of Debt
      199       0  
3:2 Stock Split
      19       0  
Provision for Taxes - Site Shut down
      60       0  
Other 1-Time Items (net)
      28       37  
sub-total excl. MTM & Taxes
      936       116  
Sub-total 1-Time Costs
      1,461       116  
Net Gain Excl. 1-Time Costs
      291       83  

 
 

 
 
    ASURE SOFTWARE, INC.
 CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share data)
(Unaudited)
 
  
 
June 30,
2012
   
December 31,
2011
 
ASSETS
           
 Current Assets:
           
  Cash and equivalents
 
$
1,493
   
$
1,067
 
  Accounts receivable, net of allowance for doubtful accounts of $56 and $19 at
      June 30, 2012 and December 31, 2011, respectively
   
1,603
     
1,483
 
  Notes receivable
   
24
     
96
 
  Inventory
   
156
     
116
 
  Prepaid expenses and other current assets
   
263
     
338
 
Total Current Assets
   
3,539
     
3,100
 
                 
 Property and equipment, net
   
424
     
414
 
 Intangible assets, net
   
5,593
     
6,307
 
 Goodwill
   
6,259
     
6,264
 
 Other
   
18
     
-
 
 Total Assets
 
$
15,833
   
$
16,085
 
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
 Current Liabilities:
               
      Line of credit
 
$
555
   
$
500
 
  Current portion of notes payable
   
109
     
349
 
  Accounts payable
   
1,497
     
  1,097
 
  Accrued compensation and benefits
   
243
     
141
 
  Other accrued liabilities
   
641
     
536
 
  Deferred revenue
   
4,697
     
4,792
 
Total Current Liabilities
   
7,742
     
7,415
 
                 
 Long-term liabilities:
               
      Deferred revenue
   
170
     
169
 
      Subordinated notes payable
   
4,375
     
4,323
 
      Subordinated convertible notes payable
   
301
     
1,247
 
      Derivative liability
   
     
835 
 
      Other long-term obligations
   
28
     
32
 
Total Long-Term Liabilities
   
4,874
     
6,606
 
                 
  Stockholders’ Equity:
               
  Preferred stock, $.01 par value; 1,500 shares authorized; none issued or outstanding
   
     
 
  Common stock, $.01 par value; 11,000 shares authorized; 5,366 and 5,014 shares
  issued; 4,982 and 4,630 shares outstanding at June 30, 2012 and December 31, 2011, respectively
   
337
     
334
 
  Treasury stock at cost, 384 shares at June 30, 2012 and December 31, 2011
   
(5,017
   
(5,017
)
  Additional paid-in capital
   
273,361
     
271,065
 
  Accumulated deficit
   
(265,362
   
(264,190
)
  Accumulated other comprehensive loss
   
(102
   
(128
)
Total Stockholders’ Equity
   
3,217
     
2,064
 
Total Liabilities and Stockholders’ Equity
 
$
15,833
   
$
16,085
 

The notes in the Company’s forthcoming 10-Q are an integral part of these condensed consolidated financial statements.
 
 
 

 

ASURE SOFTWARE, INC.
C ONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)

   
FOR THE
THREE MONTHS ENDED
JUNE 30
   
FOR THE
SIX MONTHS ENDED
JUNE 30
 
   
2012
   
2011
   
2012
   
2011
 
Revenues
 
$
4,205
   
$
2,434
   
$
8,357
   
$
4,791
 
Cost of Sales
   
(991
)
   
(437
)
   
(2,037
)
   
(877
)
Gross Margin
   
3,214
     
1,997
     
6,320
     
3,914
 
                                 
Operating Expenses:
                               
Selling, general and administrative
   
2,334
     
1,413
     
4,467
     
2,815
 
Research and development
   
591
     
393
     
1,181
     
784
 
Amortization of intangible assets
   
292
     
150
     
586
     
298
 
Total Operating Expenses
   
3,217
     
1,956
     
6,234
     
3,897
 
                                 
Income/(Loss) From Operations
   
(3
 )
   
41
     
86
     
17
 
                                 
Other Income (Expenses):
                               
Interest income
   
1
     
4
     
2
     
6
 
Foreign currency translation (loss)/gain
   
(1
   
1
     
(29
)
   
(20
)
(Loss) on disposal of assets
   
(26
 )
   
-
     
(36
 )
   
-
 
(Loss) on debt conversion
   
-
     
-
     
(198
 )
   
-
 
Interest expense- amortization of OID and derivative mark-to market
   
(56
 )
   
-
     
(591
   
-
 
Interest expense and other
   
(118
)
   
(7
)
   
(238
)
   
(15
)
Total Other Income (Expense)
   
(200
   
(2
   
(1,090
)
   
(29
)
                                 
(Loss)/Income  From Operations Before Income Taxes
   
(203
   
39
     
(1,004
)
   
(12
)
Income Tax Expense
   
(120
)
   
(12
)
   
(166
)
   
(21
)
Net (Loss)/Income
 
$
(323
 )
 
$
27
   
$
(1,170
)
 
$
(33
)
                                 
Basic  (Loss)/Income Per Share
 
$
(0.06
 
$
0.01
   
$
(0.24
)
 
$
(0.01
)
Diluted (Loss)/Income Per Share
 
$
(0.06
 )
 
$
0.01
   
$
(0.24
)
 
$
(0.01
)
                                 
Shares Used In Computing Basic (Loss)/Income Per Share
   
4,982
     
4,627
     
4,841
     
4,627
 
Shares Used In Computing Diluted (Loss)/Income Per Share
   
4,982
     
4,632
     
4,841
     
4,627
 

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 Income (Loss)
(In thousands)
(Unaudited)
 
   
FOR THE
THREE MONTHS ENDED
JUNE 30
   
FOR THE
SIX MONTHS ENDED
JUNE 30
 
   
2012
   
2011
   
2012
   
2011
 
Net (Loss)/Income
 
$
(323)
   
$
27
   
$
(1,170)
   
$
(33)
 
Other comprehensive (Loss)/Income:
                               
    Foreign currency translation (Loss)/Gain
   
(2)
     
(4)
     
26
     
9
 
Comprehensive Income / (Loss)
   
(325)
     
23
     
(1,144)
     
(24)
 
 
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 SIX MONTHS 
ENDED 
JUNE 30
 
   
2012
   
2011
 
CASH FLOWS FROM OPERATING ACTIVITIES:
           
Net loss
 
$
(1,170
 
$
(33
Adjustments to reconcile net loss to net cash provided by operations:
               
      Depreciation and amortization
   
819
     
471
 
      Provision for doubtful accounts
   
37
     
(32)
 
      Share-based compensation
   
35
     
28
 
      Interest expense – amortization of OID and derivative mark-to-market
   
591
     
-
 
      Loss on sale/disposal of assets
   
36
     
-
 
      Loss on debt conversion
   
198
     
-
 
                 
     Changes in operating assets and liabilities:
               
    Notes receivable
   
-
     
(3)
 
Accounts receivable
   
(157
   
297
 
Inventory
   
(40
   
15
 
Prepaid expenses and other current assets
   
62
     
26
 
Accounts payable
   
400
     
(9
Accrued expenses and other long-term obligations
   
221
     
(34
Deferred revenue
   
(94
   
290
 
Net cash provided by operating activities
   
938
     
1,016
 
                 
CASH FLOWS FROM INVESTING ACTIVITIES:
               
                 
       Net purchases of property and equipment
   
(151
)
   
(45
)
      (Issuance) or collection of note receivable
   
72
     
-
 
Net cash used in investing activities
   
(79
   
(45
                 
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Payments on notes payable and capital leases
   
(308
   
(24
Payments on notes payable conversion
   
(222
   
-
 
Proceeds from Line of credit
   
55
     
-
 
Net proceeds from exercise of options
   
16
     
-
 
Net cash used in financing activities
   
(459
   
(24
                 
Effect of translation exchange rates
   
26
     
9
 
                 
Net increase in cash and equivalents
   
426
     
956
 
Cash and equivalents at beginning of period
   
1,067
     
1,070
 
Cash and equivalents at end of period
 
$
1,493
   
$
2,026
 
                 
SUPPLEMENTAL INFORMATION:
               
Interest Paid
  $
189
     
-
 
Payments of accelerated interest on subordinated convertible notes payable on conversion
   
211
     
-
 
Non-Cash Financing Activity – conversion of subordinated convertible notes payable to equity
   
969
     
-
 
 
The notes in the Company’s forthcoming 10-Q are an integral part of these condensed consolidated financial statements.
 
 
 

 
 
For more information contact:
David Scoglio, CFO
Asure Software, Inc.
512-437-2732
dscoglio@asuresoftware.com

Jon Cunningham
RedChip Companies, Inc.
Tel: +1-800-733-2447, Ext. 107
info@redchip.com
http://www.redchip.com