UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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) November 8, 2011

Asure Software, Inc.
(Exact name of registrant as specified in its charter)

DE	0-20008	74-2415696	
(State or other jurisdiction
of incorporation)	(Commission File Number)	(IRS Employer Identification No.)	
 
110 Wild Basin Rd., Suite 100, Austin, TX	78746	
(Address of principal executive offices)	(Zip Code)	
 
Registrant's telephone number, including area code:   512-437-2700
 
Not Applicable
(Former name or former address, if changed since last report)
 
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 November 8, 2011 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.  

Item 7.01.  Regulation FD Disclosure

Additionally, the Registrant announced it will be presenting at upcoming industry and investory community conferences.  A copy of this presentation is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
 
Item 9.01. Financial Statements and Exhibits.
 
Exhibit 99.1.      Press release dated November 8, 2011
 
Exhibit 99.2.      Asure Software Investor Presentation to be first shared with investors on November 8, 2011at 5PM, EST.

 

 

SIGNATURE
 
    Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 	Asure Software, Inc.	 	
 	 	 	 	
Date: November 8, 2011	By:	/s/ DAVID SCOGLIO	 	
 	 	David Scoglio	 	
 	 	CFO	 	

 

 
 
Exhibit Index
99.1           Press release dated November 8, 2011
99.2           Asure Software Investor Presentation to be first shared with investors on November 8, 2011at 5PM, EST.

Exhibit 99.1

Asure Software Reports Second Consecutive Profitable Quarter; Raises EBITDA guidance for Fourth Quarter
 
 	·	Q3 Earnings of $0.06 per share excluding one-time items*, exceeding pre-announcement	

 	·	Q3 EBITDA of $462,000, excluding one-time items*, exceeding pre-announcement	

 	·	Cash and Equivalents, excluding acquisition funding, grew $700,000 sequentially.	
 	·	Raising Fourth quarter EBITDA guidance range to $540,000 to 630,000 excluding one-time items*	
 
AUSTIN, Texas, November 8, 2011 (GLOBE NEWSWIRE) -- Asure Software, Inc. (Nasdaq:ASUR), a leading provider of workforce management software, announced results for the third quarter ended September 30, 2011.
 
Third quarter results, excluding one-time items related to Asure’s acquisition of ADI Time, included earnings of $0.06 per share and EBITDA of $462,000.  GAAP Net Income per share was $0.01. One-time items contributed ($0.05) per share, and consisted of acquisition related legal and professional services, travel and other one-time expenses.  Third quarter revenue was $2.5 million, a 3% increase over the prior quarter. The revenue increase of $70,000 was largely driven by an increase in recurring revenue, of which the majority was related to growth in our Cloud-based revenue stream. Asure's recurring revenue as a percentage of overall revenue was flat at 80% quarter over quarter and up 8% versus the comparable period in 2010; from 72% to 80%. Hardware revenue increased by 94% compared to the last quarter, driving gross margin down one percentage point to 81% this quarter.
 
"We had a solid quarter as the business continues to perform well and grow.  We're extremely excited about the opportunities the ADI acquisition brings us," commented Pat Goepel, CEO of Asure Software.  "First, ADI's customer base extends our ability to serve organizations with unique industry-specific needs, and with ADI's expertise we can expand our reach and our capabilities.  Second, we are excited to introduce our new hardware technology to current and prospective clients.  Lastly, we've already seen synergies within the combined organizations that allow us to streamline operations, reduce operating costs and gain significant efficiencies.  I'm very optimistic about our team and what we have accomplished as we continue to execute our growth strategy."
 
David Scoglio, Asure's Chief Financial Officer, added, "Asure posted a strong quarter financially, as EBITDA and earnings exceeded our estimates and cash continued to grow.  Deferred revenue grew 13% over the last quarter, and 36% over the comparable period in 2010, and cash continued to grow faster than earnings, giving us confidence in our ability to meet all lending commitments related to the ADI acquisition.  While Netsimplicity’s cloud-based bookings were down sequentially, they were up against a difficult comparison and we are confident that we can return to double digit performance in the fourth quarter.  iEmployee’s cloud-based bookings showed improvement at 24% growth sequentially.
 
David Scoglio continued,” For Q4, we expect GAAP net earnings per share to be positive and drive full year results to overall profitability.  One-time costs related to acquisition and integration are expected to roughly equal those of Q3.  Due to the ADI acquisition and continued organic performance, we are increasing our EBITDA guidance range to $540,000 to $630,000, excluding the aforementioned one-time costs.  An updated table of public guidance is offered below.”
 
 	 	Guidance	 	
 	 	Q4 '11	 	 	FY '12	 	
 Revenue ($000s)	 	$	3,530 - $3,630	 	 	 15,500	 	
 EBITDA Gain ($000s)	 	 n/a	 	 	 2,800	 	
 Net Earnings Per Share	 	Positive for Q4 & '11	 	 	tba	 	
 EBITDA Gain ($000s) excl. 1Time	 	 540 -- 630	 	 	 n/a	 	

Conference Call Details
Asure will follow this announcement with a conference call for the investment community on Tuesday, November 8, 2011, at 11:00 am EST, (10 a.m. CST) 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 pass code for all callers is 21226915.
 
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 10 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
 
Asure Software, Inc. (NasdaqCM:  ASUR ), 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 turbo-charge your workplace by stimulating your workforce and maximizing your company’s resources while eliminating waste out of employee's work-flow.
 
Asure Software’s number one priority is to delight our clients and support their change initiatives.  We ensure a high-performing work environment by integrating our "keep it simple" solutions and expertise to over 3,500 plus clients world-wide; Asure Software’s suite of solutions range from time and attendance workforce management solutions to asset optimization and meeting room management.  For more information, please visit www.asuresoftware.com.
 
The Asure Software, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8565
 
"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.

 

 
 
Reconciliation of GAAP Net Earnings to Earnings Before Interest, Taxes, Depreciation, Amortization and Stock Compensation Expense (EBITDA)  and EBITDA excluding One-Time Costs	 	
 	 	
FOR THE THREE MONTHS ENDING	 	
$000s	 	 	September 30, 2011	 	 	September 30, 2010	 	 	Inc/Dec	 	
Net Gain/(Loss)	 	 	 	29	 	 	 	0	 	 	 	29	 	
Interest	 	 	 	9	 	 	 	12	 	 	 	(3	)	
Tax	 	 	 	9	 	 	 	(42	)	 	 	51	 	
Depreciation	 	 	 	33	 	 	 	59	 	 	 	(26	)	
Amortization	 	 	 	195	 	 	 	195	 	 	 	0	 	
Stock Compensation	 	 	 	27	 	 	 	13	 	 	 	14	 	
EBITDA Gain	 	 	 	302	 	 	 	237	 	 	 	65	 	
One-Time Costs	 	 	 	160	 	 	 	14	 	 	 	146	 	
EBITDA Gain excl. One-Time Costs	 	 	 	462	 	 	 	251	 	 	 	211	 	

 	 	
FOR THE NINE MONTHS ENDING	 	
$000s	 	 	September 30, 2011	 	 	September 30, 2010	 	 	Inc/Dec	 	
Net Gain/(Loss)	 	 	 	(4	)	 	 	(1,203	)	 	 	1,199	 	
Interest	 	 	 	31	 	 	 	53	 	 	 	(22	)	
Tax	 	 	 	30	 	 	 	(14	)	 	 	44	 	
Depreciation	 	 	 	114	 	 	 	192	 	 	 	(78	)	
Amortization	 	 	 	585	 	 	 	584	 	 	 	1	 	
Stock Compensation	 	 	 	55	 	 	 	28	 	 	 	27	 	
EBITDA Gain/(Loss)	 	 	 	811	 	 	 	(360	)	 	 	1,171	 	
One-Time Costs	 	 	 	276	 	 	 	1,261	 	 	 	(985	)	
EBITDA Gain excl. One-Time Costs	 	 	 	1,087	 	 	 	901	 	 	 	186	 	

Reconciliation of GAAP Net Earnings to Net Earnings Excluding 1-Time Items	 	
 	 	
$000s	 	 	FOR THE THREE MONTHS ENDED SEPTEMBER 30	 	 	FOR THE NINE MONTHS ENDED SEPTEMBER 30	 	
 	 	 	 	 	2011	 	 	 	2010	 	 	 	2011	 	 	 	2010	 	
Net Gain/(Loss)	 	 	 	29	 	 	 	0	 	 	 	(4	)	 	 	(1,203	)	
Legal & Professional Services	 	 	 	84	 	 	 	0	 	 	 	84	 	 	 	0	 	
Travel	 	 	 	41	 	 	 	0	 	 	 	41	 	 	 	0	 	
Severance, Recruitment & Relocation	 	 	 	26	 	 	 	0	 	 	 	105	 	 	 	0	 	
Sales & Marketing Infrastructure	 	 	 	0	 	 	 	0	 	 	 	35	 	 	 	0	 	
Loss on Lease Amendment	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	1,203	 	
Other 1-Time Items (net)	 	 	 	9	 	 	 	14	 	 	 	11	 	 	 	58	 	
Net Gain Excl. 1-Time Items	 	 	 	189	 	 	 	14	 	 	 	272	 	 	 	58	 	

 

 

ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share data)
(Unaudited)
 
 	 	September 30, 2011	 	 	December 31, 2010	 	
ASSETS	 	 	 	 	 	 	
  Current Assets:	 	 	 	 	 	 	
  Cash and cash equivalents	 	$	6,082	 	 	$	1,070	 	
  Accounts receivable, net of allowance for doubtful accounts of $17 and $46 at
  September 30, 2011 and December 31, 2010, respectively	 	 	979	 	 	 	1,239	 	
  Notes receivable	 	 	120	 	 	 	62	 	
  Inventory	 	 	6	 	 	 	25	 	
  Prepaid expenses and other current assets	 	 	227	 	 	 	255	 	
    Total Current Assets	 	 	7,414	 	 	 	2,651	 	
  Notes receivable	 	 	-	 	 	 	60	 	
  Property and equipment, net	 	 	221	 	 	 	281	 	
  Intangible assets, net	 	 	2,258	 	 	 	2,844	 	
  Total Assets	 	$	9,893	 	 	$	5,836	 	
 	 	 	 	 	 	 	 	 	
LIABILITIES AND STOCKHOLDERS’ EQUITY	 	 	 	 	 	 	 	 	
  Current Liabilities:	 	 	 	 	 	 	 	 	
  Accounts payable	 	$	686	 	 	$	560	 	
  Notes payable	 	 	500	 	 	 	-	 	
  Accrued compensation and benefits	 	 	72	 	 	 	95	 	
  Other accrued liabilities	 	 	399	 	 	 	361	 	
  Deferred revenue	 	 	2,522	 	 	 	1,955	 	
    Total Current Liabilities	 	 	4,179	 	 	 	2,971	 	
  Long-term deferred revenue	 	 	150	 	 	 	116	 	
  Notes payable	 	 	2,850	 	 	 	-	 	
  Other long-term obligations	 	 	4	 	 	 	25	 	
    Total Liabilities	 	 	7,183	 	 	 	3,112	 	
 	 	 	 	 	 	 	 	 	
  Stockholders’ Equity:	 	 	 	 	 	 	 	 	
  Preferred stock, $.01 par value; 1,500 shares authorized; none issued or outstanding	 	 	—	 	 	 	—	 	
  Common stock, $.01 par value; 6,500 shares authorized; 3,341 and 3,341 shares
  issued; 3,085 and 3,085 shares outstanding at September 30, 2011 and December 31, 2010, respectively	 	 	334	 	 	 	334	 	
  Treasury stock at cost, 256 shares at September 30, 2011 and December 31, 2010, respectively	 	 	(5,017	)	 	 	(5,017	)	
  Additional paid-in capital	 	 	271,033	 	 	 	270,978	 	
  Accumulated deficit	 	 	(263,545	)	 	 	(263,541	)	
  Accumulated other comprehensive loss	 	 	(95	)	 	 	(30	)	
    Total Stockholders’ Equity	 	 	2,710	 	 	 	2,724	 	
Total Liabilities and Stockholders’ Equity	 	$	9,893	 	 	$	5,836	 	
 
The accompanying notes from the Company's upcoming 10Q are an integral part of these condensed consolidated financial statements 

 

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

 	 	FOR THE
THREE MONTHS ENDED
SEPTEMBER 30,	 	 	FOR THE
NINE MONTHS ENDED
SEPTEMBER 30,	 	
 	 	2011	 	 	2010	 	 	2011	 	 	2010	 	
Revenues	 	$	2,502	 	 	$	2,542	 	 	$	7,293	 	 	$	7,627	 	
Cost of Sales	 	 	(486	)	 	 	(601	)	 	 	(1,363	)	 	 	(1,741	)	
Gross Margin	 	 	2,016	 	 	 	1,941	 	 	 	5,930	 	 	 	5,886	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
    Selling, general and administrative	 	 	1,526	 	 	 	1,507	 	 	 	4,340	 	 	 	4,391	 	
    Research and development	 	 	366	 	 	 	394	 	 	 	1,150	 	 	 	1,100	 	
    Amortization of intangible assets	 	 	150	 	 	 	150	 	 	 	449	 	 	 	448	 	
    Loss on lease amendment	 	 	-	 	 	 	-	 	 	 	-	 	 	 	1,203	 	
Total Operating Expenses	 	 	2,042	 	 	 	2,051	 	 	 	5,939	 	 	 	7,142	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss From Operations	 	 	(26	) 	 	 	(110	)	 	 	(9	)	 	 	(1,256	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income (Expenses):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
    Interest income	 	 	2	 	 	 	-	 	 	 	8	 	 	 	2	 	
    Foreign currency translation gain (loss)	 	 	67	 	 	 	(24	)	 	 	47	 	 	 	(41	)	
    Loss (gain) on sale of assets	 	 	-	 	 	 	(18	)	 	 	-	 	 	 	5	 	
    Interest expense and other	 	 	(5	)	 	 	(20	)	 	 	(20	)	 	 	(57	)	
    Gain on sale of investment	 	 	-	 	 	 	130	 	 	 	-	 	 	 	130	 	
Total Other Income (Expense)	 	 	64	 	 	 	68	 	 	 	35	 	 	 	39	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (Loss) Before Income Taxes	 	 	38	 	 	 	(42	)	 	 	26	 	 	 	(1,217	)	
Provision For Income Taxes	 	 	(9	)	 	 	42	 	 	 	(30	)	 	 	14	 	
Net Income (Loss)	 	$	29	 	 	$	0	 	 	$	(4	)	 	$	(1,203	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic  Income (Loss) Per Share	 	$	0.01	 	 	$	0	 	 	$	(0.00	)	 	$	(0.39	)	
Diluted Income (Loss) Per Share	 	$	0.01	 	 	$	0	 	 	$	(0.00	)	 	$	(0.39	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Shares Used In Computing Basic Income (Loss) Per Share	 	 	3,085	 	 	 	3,085	 	 	 	3,085	 	 	 	3,088	 	
Shares Used In Computing Diluted Income (Loss) Per Share	 	 	3,094	 	 	 	3,085	 	 	 	3,085	 	 	 	3,088	 	

The accompanying notes from the Company's upcoming 10Q are an integral part of these condensed consolidated financial statements 

Exhibit 99.2