Delaware
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0-20008
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74-2415696
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(State or other jurisdiction of incorporation or organization)
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(Commission File No.)
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(IRS Employer Identification No.)
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o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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EXHIBIT NUMBER
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DESCRIPTION
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|
99.1
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In thousands, except per share data
|
Q1 2014 | Q1 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 | ) |
·
|
Grew repetitive, cloud-based revenue by 8% over the first quarter of 2013 by continuing to focus on our transition to a SaaS-based revenue model throughout the year.
|
·
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Increased the sales and delivery of integrated solutions that combine SaaS-based products with hardware for larger size contracts; key sales include AsureForce® to Stratus Solar and AsureSpace™ to Mondelez.
|
·
|
Expanded the company’s global footprint; Asure now serves 5,000 clients in 78 countries; specifically, Asure introduced solutions in additional country locations such as Singapore, China and Japan for two current Fortune 500 clients.
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·
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Cloud SaaS-based bookings increased by 5% from the first quarter 2013.
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·
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Cloud SaaS-based revenue for the quarter was $3.3 million, down $125,000 and 4% over the previous quarter and up $236,000 and 8% over the first quarter of 2013. First quarter revenue is in line with seasonal patterns typically associated with this quarter.
|
·
|
Revenue for the quarter was $6.5 million as compared to $6.7 million in the previous quarter and $6.0 million in the first quarter 2013, a slight decrease of 3% and an increase of 9%, respectively. Similarly, first quarter revenue is in line with seasonal patterns typically associated with this quarter.
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·
|
Recurring revenue as a percent of total revenue was 76% for the quarter as compared to 75% for the previous quarter and 79% in the first quarter of 2013.
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·
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Gross margin for the quarter was $5.0 million compared to $5.1 million in the previous quarter and $4.2 million in the first quarter 2013, a slight decrease of 3% and an increase of 18%, respectively.
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·
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EBITDA* excluding one-time items* for the quarter was approximately $1.14 million compared to $1.48 million in the previous quarter and $727,000 in the first quarter of 2013. One-time items* in the quarter were approximately $396,000 up from $215,000 in the previous quarter and up from $320,000 in the first quarter of 2013, and were related to the loss on debt refinancing, gain on settlement of note payable and litigation, legal and professional fees, site consolidation related to the acquisition of Meeting Maker and other one-time expenses*.
|
·
|
First quarter net income (loss) per share, excluding one-times*, was $(0.02) compared to $0.02 in the previous quarter and $(0.15) in the first quarter of 2013.
|
·
|
Cash flow provided by operating activities for the quarter was $71,000 compared to $846,000 in the previous quarter and $76,000 in the first quarter 2013, a decrease of 92% and 7%, respectively.
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$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 |
$000s
|
March 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 | ||||||
EBITDA
|
744 | 407 | ||||||
One-time items
|
396 | 320 | ||||||
EBITDA excluding one-time items
|
1,140 | 727 |
$000s
|
FOR THE THREE MONTHS ENDED
March 31
|
|||||||
2014
|
2013
|
|||||||
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 Taxes
|
396 | 320 | ||||||
Sub-total one-time items
|
396 | 320 | ||||||
Net Gain/(Loss) excluding one-time items
|
(134 | ) | (780 | ) |
$000s
|
FOR THE THREE MONTHS ENDED
March 31
|
|||||||
2014
|
2013
|
|||||||
Revenue
|
6,527 | 5,975 | ||||||
Adjustment
|
- | 216 | ||||||
Non- GAAP revenue
|
6,527 | 6,191 |
|
March 31,
2014
|
December 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 assets
|
7,602
|
9,660
|
||||||
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 liabilities
|
13,928
|
17,497
|
||||||
Long-term liabilities:
|
||||||||
Deferred revenue
|
669
|
759
|
||||||
Notes payable
|
14,250
|
12,698
|
||||||
Other liabilities
|
448
|
444
|
||||||
Total long-term liabilities
|
15,367
|
13,901
|
||||||
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’ equity
|
3,739
|
4,217
|
||||||
$
|
33,034
|
$
|
35,615
|
FOR THE
THREE MONTHS ENDED
MARCH 31,
|
||||||||
2014
|
2013
|
|||||||
Revenues
|
$
|
6,527
|
$
|
5,975
|
||||
Cost of sales
|
1,558
|
1,777
|
||||||
Gross margin
|
4,969
|
4,198
|
||||||
Operating expenses
|
||||||||
Selling, general and administrative
|
3,362
|
3,276
|
||||||
Research and development
|
721
|
700
|
||||||
Amortization of intangible assets
|
497
|
582
|
||||||
Total operating expenses
|
4,580
|
4,558
|
||||||
Income (loss) from operations
|
389
|
(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
|
FOR THE
THREE MONTHS ENDED
MARCH 31,
|
||||||||
2014
|
2013
|
|||||||
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 period
|
3,938
|
2,177
|
||||||
Cash and equivalents at end of period
|
$
|
1,672
|
$
|
1,588
|
||||
SUPPLEMENTAL INFORMATION:
|
||||||||
Cash paid for:
|
||||||||
Interest
|
$
|
484
|
$
|
399
|