Press Release

Asure Software Reports 2013 Second Quarter Financial Results Exceeding Expectations

Aug 14, 2013 at 12:00 AM EDT

  • Second quarter EBITDA*, excluding one-times*, was $1.15 million vs. guidance range of $900,000 to $1.1 million
  • Second quarter revenue of $6.3 million vs. guidance range of $6.2 to $6.5 million
  • Second quarter net loss per share, excluding one-times* was $(0.06)

AUSTIN, Texas, Aug. 14, 2013 (GLOBE NEWSWIRE) -- Asure Software, Inc. (Nasdaq:ASUR), a leading provider of workplace management software, announced results for the second quarter ended June 30, 2013.

Q2 Strategic Highlights

  • Executed on our "Land and Expand" customer cross selling strategy for both AsureSpace and AsureForce solutions; Q2 brought expanded contracts with several key customers such as Staples, Federal Reserve, and Moody's Corporation. Asure's "Land & Expand" strategy continues to be successful in increasing customer profitability and retention with innovative, trusted solutions.
  • Launched the new release of AsureSpace Workspace Manager 4.5, which brings global customers expanded features for complex meeting types. This new functionality allows our customers to more easily gather booking data and work with complex recurring and guest service requirements.
  • Fully deployed AsureForce® GeoPunch™, our time & labor management mobile facial recognition solution. Using GPS technology and facial recognition, this highly differentiated TLM mobile app puts time & attendance and self-service capabilities directly in the hands of employees, literally, via their mobile devices. New customers include Goodwill of South Texas, Permian Regional Hospital and Innvision Shelter Network.

Q2 Results

  • Revenue for the quarter was $6.3 million compared to $6.0 million in the previous quarter and $4.2 million in the second quarter 2012.
  • Non-GAAP revenue* for the quarter was $6.4 million compared to $6.2 million in the previous quarter and $4.2 million in the second quarter 2012.
  • Gross margin for the quarter was $4.8 compared to $4.2 in the previous quarter and $3.2 in the same quarter 2012.
  • EBITDA* excluding one-time items* for the quarter was approximately $1.15 million compared to $727,000 in the previous quarter and $838,000 in the second quarter of 2012. One-time items* in the quarter were approximately $228,000 down from $320,000 in the previous quarter and down from $427,000 in the second quarter of 2012, and were related to legal and professional fees, site consolidation related to the acquisition of Meeting Maker and other one-time expenses*. 
  • Recurring revenue as a percent of total revenue was 78% for the quarter as compared to 79% for the previous quarter and 70% in the second quarter of 2012. 
  • Cloud SaaS-based revenue for the quarter increased to $3.1 million up $72,000 and 2.4% over the previous quarter and up $163,000, or 8.0% over the second quarter of 2012, excluding PeopleCube.
  • Cloud SaaS-based bookings for the quarter decreased by 10% from the previous quarter and increased by 20% from the second quarter of 2012, excluding PeopleCube.

Management Commentary

Pat Goepel, Chief Executive Officer of Asure Software commented, "We are pleased with our performance in the second quarter. Asure Software continues to execute on our key business strategies, with an integrated focus across all areas of the business from sales and account management to marketing and product development. SaaS-based recurring revenue increased for the quarter. While overall bookings increased this quarter over the previous quarter, we did see a decrease in SaaS-based bookings. We see our customer demand still being split between traditional On Premise solutions versus more leading edge On Demand solutions. We believe the market will continue to shift to SaaS-based solutions, but not at the rate we originally planned. As such, we have lowered our annual revenue and annual EBITDA guidance. We are still confident in our progress.   Our "Land & Expand" sales strategy continues to prove successful with several expanded contracts and strategic opportunities. Additionally, our UK and EMEA-based initiatives saw significant success in the second quarter both in new sales as well as expanded partnership opportunities. Staying focused on the business strategy and following through with solid execution has been and will continue to be critical to our success."  

Jennifer Crow, Asure's Chief Financial Officer added, "We executed on our plan to bolster stockholders' equity and raised $3.5 million in cash in the second quarter by selling shares pursuant to our Form S-3. With part of the proceeds, we reduced our short-term liabilities and paid down $2.0 million of our Senior Notes Payable with our primary debt lender.  The equity raise and increased cash flow from operations have strengthened our overall financial position and allow us to enter the second half of the year with cash on hand of $3.5 million."

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

Company Outlook    
 Q3 13FY 13
Revenue  $6,300 - $6,600 $25,000 - $26,000
EBITDA, excluding one-time items $1,300 - $1,500 $4,800 - $5,500 

Conference Call Details

Asure will follow this announcement with a conference call for the investment community on Wednesday, August 14, 2013 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 23639012.

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 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

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

The Asure Software, Inc. logo is available at

"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 Excluding One-time items.
$000sJune 30,
June 30,
Net Loss(569)(323)(246)
Interest and amortization of OID 645 174 471
Tax 42 120 (78)
Depreciation 107 58 49
Amortization 652 357 295
Stock Compensation 45 25 20
One-time items228427(199)
EBITDA excluding one-time items1,150838312
$000sJune 30,
June 30,
Net Loss(1,669)(1,170)(499)
Interest and amortization of OID 1,325 364 961
Derivative mark -to-market --  465 (465)
Tax 81 166 (85)
Depreciation 219 105 114
Amortization 1,304 714 590
Stock Compensation 69 35 34
One-time items548936(388)
EBITDA excluding one-time items1,8771,615262
Reconciliation of GAAP Net Earnings to Net Earnings Excluding One-time items    
June 30
Net Loss(569)(323)
Legal & Professional Services 146 298
Severance, Recruitment & Relocation 69 60
Site Consolidation  -- 50
3:2 Stock Split -- 19
Provision for Taxes — Site Shut Down -- 60
Other one-time items (net) 13 --
Sub-total excluding Taxes228427
Sub-total one-time items228487
Net Gain/(Loss) excluding one-time items(341)164
June 30
Net Loss(1,669)(1,170)
Legal & Professional Services 310 543
Severance, Recruitment & Relocation 160 97
Site Consolidation  -- 50
Derivative mark-to-market  -- 465
Loss on Debt Conversion -- 199
3:2 Stock Split -- 19
Provision for Taxes — Site Shut Down -- 60
Other one-time items (net) 78 28
Sub-total excluding Taxes and MTM548936
Sub-total one-time items5481,461
Net Gain/(Loss) excluding one-time items(1,121)291
Reconciliation of GAAP Revenue to Non-GAAP revenue
June 30
Revenue 6,2964,205
Adjustment 146 40
Non- GAAP revenue6,442 4,245
June 30
Revenue 12,2718,357
Adjustment  363 105
Non- GAAP revenue12,634 8,462
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.     
(Amounts in thousands)    
 June 30,
December 31,
Current assets:     
Cash and cash equivalents  $ 3,295  $ 2,177
Restricted cash 250 250
Accounts receivable, net of allowance for doubtful accounts of $192 and $182 at June 30, 2013 and December 31, 2012, respectively 2,976 3,040
Inventory 260 266
Notes receivable 9 19
Prepaid expenses and other current assets 1,648  1,497
Total current assets8,4387,249
Property and equipment, net 1,177 1,154
Goodwill 15,527 15,525
Intangible assets, net 10,875 12,179
Other assets 48 41
Total assets $ 36,065  $ 36,148
Liabilities and Stockholders' Equity      
Current liabilities:      
Current portion of notes payable  $ 1,450  $ 3,450
Accounts payable 2,108 2,713
Accrued compensation and benefits 414 78
Other accrued liabilities 1,002 1,013
Deferred revenue 9,612 9,246
Total current liabilities14,58616,500
Long-term liabilities:      
Deferred revenue 720 637
Notes payable- related party 800 800
Notes payable 15,436 15,887
Other liabilities 447 164
Total long-term liabilities17,40317,488
Stockholders' equity:      
Preferred stock, $.01 par value; 1,500 shares authorized; none issued or outstanding -- --
Common stock, $.01 par value; 11,000 shares authorized; 6,313 and 5,644 shares issued, 5,929 and 5,260 shares outstanding at June 30, 2013 and December 31, 2012, respectively 63 56
Treasury stock at cost, 384 shares at June 30, 2013 and December 31, 2012 (5,017) (5,017)
Additional paid-in capital 277,981 274,445
Accumulated deficit (268,891) (267,222)
Accumulated other comprehensive loss (60) (102)
Total stockholders' equity4,0762,160
   $ 36,065  $ 36,148
The notes in the Company's forthcoming 10-Q are an integral part of these condensed consolidated financial statements.    
(Amounts in thousands, except share and per share data)
June 30,
June 30,
Revenues $ 6,296  $ 4,205  $ 12,271  $ 8,357
Cost of Sales(1,481)(991)(3,258)(2,037)
Gross Margin4,8153,2149,0136,320
Operating Expenses            
Selling, general and administrative 3,448 2,334 6,724 4,467
Research and development 664 591 1,364 1,181
Amortization of intangible assets 582 292 1,164  586
Total Operating Expenses4,6943,2179,2526,234
Income/(Loss) From Operations121(3)(239)86
Other Income (Loss)            
Interest income -- 1 -- 2
Loss on disposal of assets -- (26) -- (36)
Loss on debt conversion -- -- -- (198)
Foreign currency translation loss (3) (1) (24) (29)
Interest expense and other (520) (118) (1,050) (238)
Interest expense- amortization of OID and derivative mark-to market (125) (56) (275) (591)
Total other income (loss)(648)(200)(1,349)(1,090)
Loss From Operations before Income Taxes (527) (203) (1,588) (1,004)
Provision for income taxes (42) (120) (81) (166)
Net Loss $ (569) $ (323) $ (1,669) $ (1,170)
Other Comprehensive Loss:            
Foreign currency (loss) gain 4 (2) 42 26
Other Comprehensive Loss $ (565)$ (325)  $ (1,627)  $ (1,144) 
Basic and Diluted Net Loss Per Share            
Basic  $ (0.10)  $ (0.06)  $ (0.31)  $ (0.24)
Diluted  $ (0.10)  $ (0.06)  $ (0.31)  $ (0.24)
Weighted Average Basic and Diluted Shares            
Basic  5,497,000  4,982,000 5,380,000 4,841,000
Diluted  5,497,000  4,982,000 5,380,000  4,841,000
The notes in the Company's forthcoming 10-Q are an integral part of these condensed consolidated financial statements.    
(Amounts in thousands)
JUNE 30,
Net loss  $ (1,669)  $ (1,170)
Adjustments to reconcile net loss to net cash provided by operations:      
Depreciation and amortization 1,523 819
Provision for doubtful accounts  10 37
Share-based compensation 69 35
Amortization of original issue discount (OID) 275 126
Loss on sale/disposal of assets -- 36
Derivative mark-to-market -- 465
Loss on debt conversion -- 198
Changes in operating assets and liabilities:      
Notes receivable 10  --
Accounts receivable 54 (157)
Inventory 6 (40)
Prepaid expenses and other assets 30 62
Accounts payable  (605) 400
Accrued expenses and other long-term obligations 651 221
Deferred revenue 442 (94)
Net cash provided by operating activities796938
Net purchases of property and equipment (245) (151)
Collection of note receivable  -- 72
Net cash used in investing activities(245)(79)
Payments on notes payable (2,726) (290)
Payments on amendment of senior notes payable  (188)  --
Net proceeds from issuance of common stock 3,461 --
Payments on conversion of subordinated notes payable -- (222)
Proceeds from line of credit  -- 55
Payments on capital leases (43) (18)
Net proceeds from exercise of options 13 16
Net cash provided by (used in) financing activities517(459)
Effect of translation exchange rates5026
Net increase (decrease) in cash and cash equivalents1,118426
Cash and equivalents at beginning of period2,1771,067
Cash and equivalents at end of period $ 3,295  $ 1,493
Cash paid for:      
Interest $ 656 $ 189
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: For more information contact:

         Jennifer Crow, CFO

         Asure Software, Inc.