Delaware
|
0-20008
|
74-2415696
|
(State or other jurisdiction of incorporation or organization)
|
(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
|
DESCRIPTION
|
|
99.1
|
In thousands, except per share data
|
Q4 2015 | Q4 2014 |
% Change
|
YTD Q4 2015
|
YTD Q4 2014
|
% Change
|
||||||||||||
Revenue
|
$ | 6,761 | $ | 7,101 |
down 5%
|
$ | 26,906 | $ | 27,206 |
down 1%
|
||||||||
Gross Margin
|
$ | 4,702 | $ | 5,313 |
down 12%
|
$ | 19,566 | $ | 20,892 |
down 6%
|
||||||||
Net income (loss)
|
$ | (795 | ) | $ | 92 |
down 964%
|
$ | (1,757 | ) | $ | (262 | ) |
down 571%
|
|||||
EBITDA, excluding one-times*
|
$ | 609 | $ | 1,345 |
down 51%
|
$ | 3,734 | $ | 5,052 |
down 25%
|
||||||||
Diluted net income (loss) per share, excluding one-times*
|
$ | (0.08 | ) | $ | 0.04 | $ | (0.17 | ) | $ | 0.08 |
|
·
|
Cloud bookings in the quarter increased 135% from the fourth quarter of 2014, driven by Bain Capital, La Trobe University, Acushnet Rubber Co., Salter Healthcare, TriHealth, LA Care, Farmers State Bank. For fiscal 2015, cloud bookings increased by 82%, excluding the company’s largest customer PSSI, and increased 30%, including PSSI, over fiscal 2014.
|
|
·
|
Backlog decreased $314,000 or 10% to $2.8 million from the prior quarter and increased 55% from fiscal 2014. In fiscal 2016, the company expects its enterprise clients to move through implementation, resulting in conversion from backlog to reported revenue growth.
|
|
·
|
Building our vertical industry presence we secured several new wins in the quarter across a range of strong industry verticals for Asure, including Thompson Reuters, Rogers Communication, Royal Bank of Canada, SAP America, Florida State University, and Morgan Stanley.
|
|
·
|
Revenue for the quarter decreased 5% to $6.8 million from $7.1 million in the same year-ago quarter. For fiscal 2015, revenue decreased 1% to $26.9 million from $27.2 million in fiscal 2014.
|
|
·
|
Recurring revenue for the quarter as a percent of total revenue was 76%, an improvement from 73% in the fourth quarter of 2014. This increase was primarily the result of strong Hardware as a Service (HAAS) revenue in the quarter.
|
|
·
|
Recurring revenue for fiscal 2015 as a percent of total revenue was 75% as compared to 75% in fiscal 2014.
|
|
·
|
Hardware as a Service (HAAS) revenue increased 364% compared to the fourth quarter of 2014 and increased 140% in fiscal 2015 compared to fiscal 2014.
|
|
·
|
Gross margin for the quarter was $4.7 million (70% of total revenue), a 12% decrease from $5.3 million (75% of total revenue) in the fourth quarter of 2014. For fiscal 2015, gross margin was $19.6 million (73% of total revenue) compared to $20.9 million (77% of total revenue) in fiscal 2014. The decrease in gross margin percentage for both periods was primarily due to new product sales, which have lower margins initially. As these products mature and gain economies of scale, the company anticipates gross margins to increase.
|
|
·
|
EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization)* excluding one-time items* for the quarter was approximately $609,000, a decrease of 51% compared to $1.3 million in the fourth quarter of 2014. For fiscal 2015, EBITDA * excluding one-time items* was approximately $3.7 million, a decrease of 25% compared to $5.1 million in fiscal 2014.
|
|
·
|
Net loss per share, excluding one-times*, for the fourth quarter was $0.08 compared to net income per share of $0.04 in the fourth quarter of 2014. For fiscal 2015, net loss per share, excluding one-times*, was $0.17 compared to net income per share of $0.08 in fiscal 2014.
|
|
·
|
Cash flow provided by operating activities for the quarter increased 32% to $1.4 million from $1.0 million in the fourth quarter of 2014. For fiscal 2015, cash flow provided by operating activities increased 24% to $3.4 million from $2.7 million in fiscal 2014.
|
|
·
|
2015 vs 2014 YOY cloud bookings posted 30% growth with continued demand for global hoteling, hot-desking solutions.
|
|
·
|
We have a healthily backlog that will continue to convert to revenue throughout 2016 and beyond. In 2015 among other improvements, we refined our backlog management to ensure a more timely realization of revenue.
|
|
·
|
Deferred revenue increase provides us with a strong foundation for 2016 revenue growth.
|
|
·
|
Our operating efficiency initiatives increased our cash flow in 2015 by 24%.
|
$000s
|
Fiscal 2016 (versus fiscal 2015)
|
Revenue
|
$37,500 to $38,500 (+39% to +43%)
|
EBITDA, excluding one-time items
|
$7,500 to $8,000 (+101% to +114%)
|
Net income per share, excluding one-time items
|
$0.12 to $0.20 (an improvement from a loss of $0.17)
|
|
December 31,
2015
|
December 31,
2014
|
||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
1,158
|
$
|
320
|
||||
Accounts and note receivable, net of allowance for doubtful accounts of $145 and $120 at December 31, 2015 and December 31, 2014, respectively
|
4,671
|
5,295
|
||||||
Inventory
|
784
|
170
|
||||||
Prepaid expenses and other current assets
|
1,195
|
1,303
|
||||||
Total current assets
|
7,808
|
7,088
|
||||||
Property and equipment, net
|
2,212
|
1,539
|
||||||
Goodwill
|
17,436
|
17,500
|
||||||
Intangible assets, net
|
6,026
|
8,322
|
||||||
Other assets
|
729
|
19
|
||||||
Total assets
|
$
|
34,211
|
$
|
34,468
|
||||
Liabilities and stockholders’ equity
|
||||||||
Current liabilities:
|
||||||||
Current portion of notes payable
|
$
|
1,031
|
$
|
750
|
||||
Accounts payable
|
2,670
|
1,533
|
||||||
Accrued compensation and benefits
|
715
|
350
|
||||||
Other accrued liabilities
|
1,181
|
1,128
|
||||||
Deferred revenue
|
10,803
|
10,641
|
||||||
Total current liabilities
|
16,400
|
14,402
|
||||||
Long-term liabilities:
|
||||||||
Deferred revenue
|
947
|
475
|
||||||
Notes payable
|
12,656
|
14,381
|
||||||
Other liabilities
|
490
|
739
|
||||||
Total long-term liabilities
|
14,093
|
15,595
|
||||||
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 December 31, 2015 and December 31, 2014, respectively
|
67
|
64
|
||||||
Treasury stock at cost, 384 shares at December 31, 2015 and December 31, 2014
|
(5,017
|
)
|
(5,017
|
)
|
||||
Additional paid-in capital
|
279,649
|
278,656
|
||||||
Accumulated deficit
|
(270,903
|
)
|
(269,146
|
)
|
||||
Accumulated other comprehensive loss
|
(78
|
)
|
(86
|
)
|
||||
Total stockholders’ equity
|
3,718
|
4,471
|
||||||
Total liabilities and stockholders’ equity
|
$
|
34,211
|
$
|
34,468
|
FOR THE
TWELVE MONTHS ENDED
DECEMBER 31,
|
||||||||
2015
|
2014
|
|||||||
Revenues:
|
||||||||
Cloud revenue
|
$
|
13,628
|
$
|
13,716
|
||||
Hardware revenue
|
3,300
|
2,623
|
||||||
Maintenance and support revenue
|
6,054
|
6,489
|
||||||
On premise software license revenue
|
856
|
999
|
||||||
Professional services revenue
|
3,068
|
3,379
|
||||||
Total revenues
|
26,906
|
27,206
|
||||||
Cost of Sales
|
7,340
|
6,314
|
||||||
Gross margin
|
19,566
|
20,892
|
||||||
Operating expenses
|
||||||||
Selling, general and administrative
|
14,964
|
13,999
|
||||||
Research and development
|
3,053
|
3,310
|
||||||
Amortization of intangible assets
|
1,866
|
1,999
|
||||||
Total operating expenses
|
19,883
|
19,308
|
||||||
Income (loss) from operations
|
(317
|
)
|
1,584
|
|||||
Other income (loss)
|
||||||||
Gain on settlement of note payable and litigation
|
-
|
1,034
|
||||||
Interest income
|
22
|
(1
|
)
|
|||||
Loss on lease termination
|
(110
|
)
|
-
|
|||||
Loss on debt refinancing
|
(4
|
)
|
(1,402
|
)
|
||||
Foreign currency gain (loss)
|
1
|
(14
|
)
|
|||||
Interest expense and other
|
(1,109
|
)
|
(1,274
|
)
|
||||
Interest expense - amortization of original issue discount (OID)
|
(21
|
)
|
(72
|
)
|
||||
Total other loss
|
(1,221
|
)
|
(1,729
|
)
|
||||
Loss from operations before income taxes
|
(1,538
|
)
|
(145
|
)
|
||||
Income tax provision
|
(219
|
)
|
(117
|
)
|
||||
Net loss
|
$
|
(1,757
|
)
|
$
|
(262
|
)
|
||
Other comprehensive income (loss):
|
||||||||
Foreign currency translation gain
|
8
|
18
|
||||||
Other comprehensive loss
|
$
|
(1,749
|
)
|
$
|
(244
|
)
|
||
Basic and diluted net loss per share
|
||||||||
Basic
|
$
|
(0.28
|
)
|
$
|
(0.04
|
)
|
||
Diluted
|
$
|
(0.28
|
)
|
$
|
(0.04
|
)
|
||
Weighted average basic and diluted shares
|
||||||||
Basic
|
6,176,000
|
6,002,000
|
||||||
Diluted
|
6,176,000
|
6,002,000
|
FOR THE
TWELVE MONTHS ENDED
DECEMBER 31,
|
||||||||
2015
|
2014
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net loss
|
$
|
(1,757
|
)
|
$
|
(262
|
)
|
||
Adjustments to reconcile net loss to net cash provided by operations:
|
||||||||
Depreciation and amortization
|
3,012
|
2,821
|
||||||
Provision for doubtful accounts
|
100
|
48
|
||||||
Share-based compensation
|
409
|
226
|
||||||
Gain on settlement of note payable and litigation
|
-
|
(1,034
|
)
|
|||||
Loss on debt refinancing
|
4
|
1,402
|
||||||
Other
|
28
|
72
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Restricted cash
|
-
|
400
|
||||||
Accounts and note receivable
|
524
|
(1,419
|
)
|
|||||
Inventory
|
(615
|
)
|
(93
|
)
|
||||
Prepaid expenses and other assets
|
(527
|
)
|
(82
|
)
|
||||
Accounts payable
|
1,120
|
(136
|
)
|
|||||
Accrued expenses and other long-term obligations
|
422
|
550
|
||||||
Deferred revenue
|
635
|
213
|
||||||
Net cash provided by operating activities
|
3,355
|
2,706
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Acquisitions net of cash acquired
|
-
|
(3,440
|
)
|
|||||
Purchases of property and equipment
|
(1,406
|
)
|
(807
|
)
|
||||
Disposals of property and equipment
|
18
|
38
|
||||||
Collection of note receivable
|
-
|
9
|
||||||
Net cash used in investing activities
|
(1,388
|
)
|
(4,200
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds from notes payable
|
5,300
|
18,181
|
||||||
Payments on notes payable
|
(6,765
|
)
|
(19,311
|
)
|
||||
Payments on amendment of senior notes payable
|
(75
|
)
|
(704
|
)
|
||||
Debt financing fees
|
-
|
(565
|
)
|
|||||
Payments on capital leases
|
(190
|
)
|
(144
|
)
|
||||
Insurance proceeds for settlement of notes payable dispute, net of expenses
|
-
|
372
|
||||||
Net proceeds from exercise of stock options
|
587
|
24
|
||||||
Net cash used in financing activities
|
(1,143
|
)
|
(2,147
|
)
|
||||
Effect of foreign exchange rates
|
14
|
23
|
||||||
Net increase (decrease) in cash and cash equivalents
|
838
|
(3,618
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
320
|
3,938
|
||||||
Cash and cash equivalents at end of period
|
$
|
1,158
|
$
|
320
|
||||
SUPPLEMENTAL INFORMATION:
|
||||||||
Cash paid for:
|
||||||||
Interest
|
$
|
995
|
$
|
941
|
||||
Non-cash Investing and Financing Activities:
|
||||||||
Note receivable from customer
|
601
|
-
|
||||||
Accrued contingent consideration upon acquisition
|
-
|
327
|
||||||
Conversion of subordinated convertible notes payable to equity
|
-
|
248
|
||||||
Accrued purchases of property and equipment
|
17
|
-
|
$000s
|
December 31,
2015
|
December 31,
2014
|
||||||
Net Income (loss)
|
(795 | ) | 92 | |||||
Interest and amortization of OID
|
270 | 275 | ||||||
Tax
|
74 | (2 | ) | |||||
Depreciation
|
229 | 126 | ||||||
Amortization
|
459 | 635 | ||||||
Stock Compensation
|
74 | 95 | ||||||
EBITDA
|
311 | 1,200 | ||||||
One-time items
|
298 | 145 | ||||||
EBITDA excluding one-time items
|
609 | 1,345 |
$000s
|
December 31,
2015
|
December 31,
2014
|
||||||
Net Income (loss)
|
(1,757 | ) | (262 | ) | ||||
Interest and amortization of OID
|
1,117 | 1,354 | ||||||
Tax
|
219 | 117 | ||||||
Depreciation
|
721 | 462 | ||||||
Amortization
|
2,291 | 2,359 | ||||||
Stock Compensation
|
409 | 226 | ||||||
EBITDA
|
3,000 | 4,256 | ||||||
One-time items
|
734 | 796 | ||||||
EBITDA excluding one-time items
|
3,734 | 5,052 |
$000s | December 31,
2015
|
December 31,
2014
|
||||||
Net Income (loss)
|
(795 | ) | 92 | |||||
Legal & Professional Services
|
57 | 21 | ||||||
Severance, Recruitment & Relocation
|
- | 111 | ||||||
Other one-time items (net)
|
241 | 13 | ||||||
Sub-total excluding Taxes
|
298 | 145 | ||||||
Sub-total one-time items
|
298 | 145 | ||||||
Net Income (loss) excluding one-time items
|
(497 | ) | 237 |
$000s
|
December 31,
2015
|
December 31,
2014
|
||||||
Net Income (loss)
|
(1,757 | ) | (262 | ) | ||||
Legal & Professional Services
|
92 | 208 | ||||||
Loss on Debt Refinancing
|
- | 1,402 | ||||||
Gain on Settlement of Note Payable and litigation
|
- | (1,034 | ) | |||||
Severance, Recruitment & Relocation
|
55 | 195 | ||||||
Gain on sale of assets
|
- | - | ||||||
Interest income from settlement
|
- | - | ||||||
Other one-time items (net)
|
587 | 25 | ||||||
Sub-total excluding Taxes
|
734 | 796 | ||||||
Sub-total one-time items
|
734 | 796 | ||||||
Net Income (loss) excluding one-time items
|
(1,023 | ) | 534 |