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Asure Software Reports First Quarter Results(GlobeNewswire Via Acquire Media NewsEdge) Q1 Revenue of $4.15 million vs. guidance range of $4.10 to $4.20 million Q1 EBITDA of $776,000, excluding one-time items and mark to market; vs. guidance range of $700,000 to $800,000 Q1 Earnings of $0.03 per share, excluding one-time items and mark to market Organic Cloud Bookings growth of 80% and Organic Total Bookings growth of 31% sequentially; and year over year growth of 40% and 2% respectively Free Cash Flow of $564,000 vs. guidance range of $500,000 to $650,000 AUSTIN, Texas, May 15, 2012 (GLOBE NEWSWIRE) -- Asure Software, Inc. (Nasdaq:ASUR), a leading provider of workplace management software, announced results for the first quarter ended March 31, 2012. First quarter results, excluding one-time items and mark to market, included earnings of $0.03 per share and EBITDA of $776,000. One-time items contributed ($0.21) per share. Acquisition-related legal and professional services, site consolidation and other one-time expenses related to Asure's acquisitions of ADI Time and Legiant amounted to $310,000, or ($0.07) per share. Mark to market charges related to the conversion of $1.15 million of convertible debt during the first quarter contributed $664,000, or ($0.14) 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 Q1: First quarter revenue was $4.15M, a 14% increase over the prior quarter, and a 76% increase over the first quarter of 2011. The $0.5 million sequential increase was largely driven by the full quarter effect of the acquisition of Legiant, which occurred late in the fourth quarter of 2011. Asure's recurring revenue as a percentage of overall revenue increased one point to 76%, including acquisitions. Gross margins held steady at 75% sequentially. "We are pleased with our financial results for the first quarter of 2012 as we continued to execute our strategy of growth through cloud based solutions." commented Pat Goepel, Asure Software's Chief Executive Officer. "Our strong cloud bookings growth of 80% sequentially confirms the continued adoption of the Asure Software workplace management solutions. These solutions put us in a unique position as corporations take advantage of cloud-based applications for their business infrastructure." David Scoglio, Asure's Chief Financial Officer added, "Asure posted a strong first quarter financially as EBITDA, cash growth and revenue fell within published guidance. Deferred revenue grew marginally over last quarter as well. Additionally, we are happy to report that $1.15 million in convertible debt was converted to equity in the first quarter. Not only does this relieve us of future cash interest and principal, but we were able to modify the remaining $.35 million of convertible debt to avoid the necessity of a separate accounting requirement in the future. In the first quarter, we took a one time P&L charge of $664,000 related to this conversion and modification. The conversion also substantially boosted our owner's equity which ended the quarter at $3.5M." Quarterly guidance for the year is listed below. 2012 Guidance $000s ActualGuidance Q1 '12Q2 '12Q3 '12Q4 '12FY '12Revenue4,153 4,100 - 4,200 4,490 - 4,590 5,060 - 5,260 17,800 - 18,200 EBITDA Gain, excl. 1 time items776 740 - 840 880 - 980 1,410 - 1,610 3,800 - 4,200 EPS, excl. 1 time items$0.03 $0.01 - $0.03 $0.04 - $0.06 $0.16 - $0.20 $0.24 - $0.32 Free Cash Flow564 500 - 600 650 - 750 1,100 - 1,300 2,800 - 3,200 Conference Call Details Asure will follow this announcement with a conference call for the investment community on Tuesday May 15, 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 78407380. 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'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 worldwide. 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 //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. In the case of Q1 2012, it was approximated by calculating the net change in cash balances sequentially, of $122,000 minus the effect of a short term loan payoff of $250,000 and an accelerated interest payment of $211,000. Reconciliation of GAAP Net Earnings to Net Earnings Excluding 1-Time Items and GAAP Net Earnings excluding Mark to Market $000sFOR THE THREE MONTHS ENDED MARCH 31 20122011Net Gain/(Loss) (847) (60) Legal & Professional Services 245 0 Severance & Recruitment 37 0 Interest - Mark to Market 465 0 Loss on Conversion of Debt 199 0 Other 1-Time Items (net) 28 56sub-total excl. Mark to Market 509 56Total 1 Time Costs 974 56 Net Gain Excl. 1 Time Items 127 (4) Reconciliation of GAAP Net Earnings to Earnings Before Interest, Taxes, Depreciation, Amortization and StockCompensation Expense (EBITDA) and EBITDA Gain Excluding 1 Time Costs. FOR THE THREE MONTHS ENDING $000sMarch 31, 2012March 31, 2011Inc/DecNet Gain/(Loss) (847) (60) (787) Interest 190 10 180 Interest - Mark to Market 465 0 465 Tax 45 9 36 Depreciation 47 43 4 Amortization 357 194 163 Stock Compensation 10 15 (5)EBITDA Gain 267 211 56 1 Time Costs excl. MTM & 1 Time Taxes 509 56 453 EBITDA Gain excl. 1 Time Items 776 267 509 ASURE SOFTWARE, INC.CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except per share data) (Unaudited) March 31,December 31, 20122011ASSETS Current Assets: Cash and equivalents $ 1,189 $ 1,067 Accounts receivable, net of allowance for doubtful accounts of $56 and $19 at March 31, 2012 and December 31, 2011, respectively 1,491 1,483 Notes receivable 73 96 Inventory 113 116 Prepaid expenses and other current assets 285 338 Total Current Assets 3,151 3,100 Property and equipment, net 397 414 Intangible assets, net 5,950 6,307 Goodwill 6,259 6,264 Other 6 -- Total Assets $ 15,763 $ 16,085 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Line of credit $ 500 $ 500 Current portion of notes payable 100 349 Accounts payable 1,234 1,097 Accrued compensation and benefits 160 141 Other accrued liabilities 551 536 Deferred revenue 4,860 4,792 Total Current Liabilities 7,405 7,415 Long-term liabilities: Deferred revenue 166 169 Subordinated notes payable 4,350 4,323 Subordinated convertible notes payable 296 1,247 Derivative liability -- 835 Other long-term obligations 30 32 Total Long-Term Liabilities 4,842 6,606 Stockholders' Equity: Preferred stock, $.01 par value; 1,500 shares authorized; none issued or outstanding Common stock, $.01 par value; 6,500 shares authorized; 5,365 and 5,014 shares issued; 4,981 and 4,630 shares outstanding at March 31, 2012 and December 31, 2011, respectively 336 334 Treasury stock at cost, 384 shares at March 31, 2012 and December 31, 2011 (5,017) (5,017) Additional paid-in capital 273,334 271,065 Accumulated deficit (265,037) (264,190) Accumulated other comprehensive loss (100) (128) Total Stockholders' Equity 3,516 2,064Total Liabilities and Stockholders' Equity $ 15,763 $ 16,085 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 OPERATIONS (Amounts in thousands, except per share data) (Unaudited) FOR THE THREE MONTHS ENDED MARCH 31, 20122011Revenues $ 4,153 $ 2,357 Cost of Sales (1,046) (440)Gross Margin 3,107 1,917 Operating Expenses: Selling, general and administrative 2,135 1,401 Research and development 591 391 Amortization of intangible assets 292 149Total Operating Expenses 3,018 1,941 Income/(Loss) From Operations 89 (24) Other Income (Expenses): Interest income 1 2 (Loss) on disposal of assets (10) -- (Loss) on Debt Conversion (199) -- Foreign currency translation loss (28) (21) Interest expense – amortization of OID and derivative of mark-to-market (535) -- Interest expense and other (120) (8)Total Other Expense (891) (27) Loss From Operations Before Income Taxes (802) (51) Income Tax Expense (45) (9)Net Loss $ (847) $ (60) Basic And Diluted Loss Per Share $ (0.18) $ (0.01) Shares Used In Computing Basic And Diluted Loss Per Share 4,699 4,627 The notes in the Company's forthcoming 10-Q are an integral part of these condensed consolidated financial statements. CONTACT: David Scoglio, CFO Asure Software, Inc. 512-437-2732 [email protected] Jon Cunningham RedChip Companies, Inc. Tel: +1-800-733-2447, Ext. 107 [email protected] http://www.redchip.com Source: Asure Software, Inc. 2012 GlobeNewswire, Inc. |