EX-99.1 2 ex99-1.htm EX-99.1 ex99-1.htm
Exhibit 99.1
 
Asure Software Meets Expectations with Solid Financial Results for
Fourth Quarter and Fiscal Year 2013

 
· Cloud SaaS-based bookings for the quarter increased by 40% from the fourth quarter of 2012. Cloud SaaS-based bookings for the year ending December 31, 2013 increased by 19% from the previous year.
 
· Fourth quarter revenue of $6.7 million and $25.5 million year to date vs. guidance range of $25 to $27 million year to date.
 
· Fourth quarter net income per share, excluding one-times*, was $0.02 and $(0.14) year to date and fourth quarter earnings per share was a net loss of $(.02) and $(.29) year to date.
 
· Fourth quarter EBITDA*, excluding one-time items*, was $1.48 million and $4.82 million year to date vs. guidance range of $4.8 to $5.5 million year to date.
 

AUSTIN, Texas, March 26, 2014 (GLOBE NEWSWIRE) -- Asure Software, Inc. (Nasdaq:ASUR), a leading provider of workplace management software, announced results for the fourth quarter ended December 31, 2013.
 
Strategic Highlights & Recent Events
 
·  
Produced record sales and record SaaS bookings for fourth quarter 2013 with success in both new business and client upgrades from On Premise to On Demand solutions. Key wins included: AsureForce new clients Visions Family Services and Ratliff Ready Mix; AsureSpace new clients Iron Mountain, Kaiser Permanente, and Coverys. Key upgrades included: KPMG, State Street, Monsanto, Weill Cornell Medical College, Alexandria Real Estate, Cushman & Wakefield, and Pearson.

·  
Deployed several product enhancements for AsureSpace™ and AsureForce® solutions, including the launch of a new occupancy utilization and measurement solution, AsureSpace™ SmartView, in partnership with Abintra. These enhancements allow the company to more easily scale to meet growth goals and support client retention with stable products and innovative features.

·  
Refinanced our existing senior debt under a new facility with Wells Fargo Bank, N.A. in the first quarter of 2014. The new term loan with Wells Fargo Bank of $15.0 million has a revolver of $3.0 million with an additional uncommitted incremental loan facility of $10.0 million for future permitted acquisitions. The company expects to incur a one-time charge of approximately $1.4 million, of which approximately $0.7 million is non-cash deferred financing costs, related to the restructuring in first quarter of 2014. We expect the new loan to reduce our interest expense by approximately $0.6 million in 2014 and $0.7 million in the following year and reduce cash principal payments by $0.8 million in 2014 and $1.1 million in the following year.

·  
Reached an agreement to settle our outstanding notes payable and dismiss all pending litigation with the sellers of PeopleCube in the first quarter of 2014. With the insurance proceeds and after offsetting any related litigation costs incurred in 2014, we expect to record a net gain of approximately $1.0 million on the settlement in the first quarter of 2014.

Results
·  
Cloud SaaS-based bookings increased by 40% from the fourth quarter of 2012. Cloud SaaS-based bookings for the year ending December 31, 2013 increased by 19% from the previous year.

·  
Cloud SaaS-based revenue for the quarter increased to $3.4 million up $197,000 and 6.1% over the previous quarter and up $408,000, or 13.5% over the fourth quarter of 2012. Cloud SaaS-based revenue for the year ending December 31, 2013 increased to $12.9 million up $2.9 million and 29.4% over the previous year.

·  
Revenue for the quarter was $6.7 million as compared to $6.5 million in the previous quarter and $5.9 million in the fourth quarter 2012, an increase of 4.0% and 13.2%, respectively. Revenue for the year ending December 31, 2013 was $25.5 million as compared to $20.0 million in the previous year, an increase of 27.6%.
 
 
 

 
 
·  
Recurring revenue as a percent of total revenue was 75% for the quarter as compared to 76% for the previous quarter and 79% in the fourth quarter of 2012. Recurring revenue for the year ending December 31, 2013 was 77% compared to 79% in 2012.

·  
Gross margin for the quarter was $5.1 million compared to $4.9 million in the previous quarter and $4.3 million in the fourth quarter 2012, an increase of 3.7% and 17.5%, respectively. Gross margin for the year ending December 31, 2013 was $19.0 million as compared to $15.4 million in the previous year, an increase of 23.8%.
 
·  
EBITDA* excluding one-time items* for the quarter was approximately $1.48 million compared to $1.46 million in the previous quarter and $948,000 in the fourth quarter of 2012. One-time items* in the quarter were approximately $215,000 up from $104,000 in the previous quarter and up from $175,000 in the fourth 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*. EBITDA* excluding one-time items* for the year ending December 31, 2013 was $4.82 million vs. $3.30 million in 2012.

·  
Cash flow provided by operating activities for the quarter was $846,000 compared to $383,000 in the previous quarter and $938,000 in the fourth quarter 2012, an increase of 121% and a decrease of 9%, respectively.  Cash flow provided by operating activities for the year ending December 31, 2013 was $2.0 million as compared to $2.8 million in the previous year, a decrease of 29%.

 
Management Commentary
Pat Goepel, Chief Executive Officer of Asure Software commented, “We’re extremely pleased with our record-sales fourth quarter performance, which was driven by our ability to bring differentiated product offerings to the market to meet growing customer demand for SaaS-based solutions. In addition to strong sales, we’ve seen tremendous advancements in the product development and customer support areas of our businesses; these improvements have resulted in stronger sales and higher customer satisfaction. In fact, 87% of AsureSpace customers are willing to recommend Asure to a friend or colleague. We exited the year in a strong position, posting solid financial results and meeting expectations.  With the recent announcement of the Wells Fargo refinancing, the settlement of the PeopleCube litigation, and our increasing global expansion, we are excited to enter the new year and are very optimistic about 2014 business goals.”

Jennifer Crow, Asure’s Chief Financial Officer added, “We are pleased with our new debt structure with Wells Fargo Bank.  This new facility provides a lower cost of debt and provides greater financial flexibility. We are excited about growing our relationship with Wells Fargo and look forward to working with them to execute our continued growth strategy.”

Please see below for details around Asure’s financial results.
 
Company Outlook      
$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  
 
Conference Call Details
Asure will follow this announcement with a conference call for the investment community on Wednesday, March 26, 2014 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 15536683.
 
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) 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 www.asuresoftware.com.

The Asure Software, Inc. logo is available at http://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 non-GAAP financial measures 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 is 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 by adding 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.
 
               
FOR THE THREE MONTHS ENDED
$000s
December 31, 2013
December 31,
2012
Inc/Dec
Net Income (Loss)
(102)
(633)
531
Interest and amortization of OID
613
575
38
Tax
(4)
89
(93)
Depreciation
121
92
29
Amortization
592
629
(37)
Stock Compensation
47
21
26
EBITDA
1,267
773
494
   One-time items
 
215
175
40
EBITDA excluding one-time items
1,482
948
534
 
 
 
FOR THE TWELVE MONTHS ENDED
$000s
December 31, 2013
December 31,
2012
Inc/Dec
Net Loss
(1,662)
(3,032)
1,370
Interest and amortization of OID
2,394
1,519
875
Derivative mark -to-market
 
-
465
(465)
Tax
117
285
(168)
Depreciation
452
253
199
Amortization
2,495
2,042
453
Stock Compensation
160
88
72
EBITDA
3,956
1,620
2,336
   One-time items
 
867
1,675
(808)
EBITDA excluding one-time items
4,823
3,295
1,528

 
 

 
 
Reconciliation of GAAP Net Earnings to Net Earnings Excluding One-time items
$000s
FOR THE THREE MONTHS ENDED December 31
 
2013
2012
Net Income (Loss)
(102)
(633)
Legal & Professional Services
163
146
Severance, Recruitment & Relocation
52
26
Other one-time items (net)
-
3
 Sub-total excluding Taxes
215
175
Sub-total one-time items
215
175
Net Gain/(Loss) excluding one-time items
113
(458)
 $000s
FOR THE TWELVE MONTHS ENDED   December 31
 
2013
2012
Net Loss
(1,662)
(3,032)
Legal & Professional Services
697
1,128
Severance, Recruitment & Relocation
212
395
Gain on sale of assets
(72)
-
Interest income from settlement
(48)
-
Site Consolidation
-
55
Derivative mark-to-market
-
465
Loss on Debt Conversion
-
198
3:2 Stock Split
-
19
Provision for Taxes – Site Shut Down
-
60
Other one-time items (net)
78
54
 Sub-total excluding Taxes and MTM
867
1,849
Sub-total one-time items
867
2,374
Net Gain/(Loss) excluding one-time items
(795)
(658)

 
 

 
 
 
Reconciliation of GAAP Revenue to Non-GAAP revenue
$000s
FOR THE THREE MONTHS ENDED  December 31
 
2013
2012
Revenue
6,732
5,948
Adjustment
13
317
Non- GAAP revenue
6,745
6,265
$000s
FOR THE TWELVE MONTHS ENDED   December 31
 
2013
2012
Revenue
25,474
19,965
Adjustment
   416
978
Non- GAAP revenue
25,890
20,943
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. 

 

 
For more information contact:
Jennifer Crow, CFO
Asure Software, Inc.
512-437-2732
jcrow@asuresoftware.com

 
 

 
 
ASURE SOFTWARE, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
 
  
 
December 31,
2013
   
December 31,
2012
 
Assets
             
Current assets:
             
Cash and cash equivalents
 
$
3,938
   
$
2,177
 
Restricted cash
   
400
     
250
 
Accounts receivable, net of allowance for doubtful accounts of $168 and $182 at December 31, 2013 and December 31, 2012, respectively
   
3,902
     
3,040
 
Inventory
   
77
     
266
 
Notes receivable
   
9
     
19
 
Prepaid expenses and other current assets
   
1,334
     
 1,497
 
Total current assets
   
9,660
     
7,249
 
Property and equipment, net
   
1,233
     
1,154
 
Goodwill
   
15,005
     
15,525
 
Intangible assets, net
   
9,679
     
12,179
 
Other assets
   
38
     
41
 
Total assets
 
$
       35,615
   
$
36,148
 
Liabilities and stockholders’ equity
               
Current liabilities:
               
Current portion of notes payable
 
$
4,308
   
$
3,450
 
Accounts payable
   
1,669
     
2,713
 
Accrued compensation and benefits
   
473
     
78
 
Other accrued liabilities
   
988
     
706
 
Deferred revenue
   
10,059
     
9,684
 
Total current liabilities
   
17,497
     
16,631
 
Long-term liabilities:
               
Deferred revenue
   
759
     
199
 
Notes payable- related party
   
-
     
800
 
Notes payable
   
12,698
     
15,887
 
Other liabilities
   
444
     
471
 
Total long-term liabilities
   
13,901
     
17,357
 
Stockholders’ equity:
               
Preferred stock, $.01 par value; 1,500 shares authorized; none issued or outstanding
   
-
     
-
 
Common stock, $.01 par value; 11,000 shares authorized; 6,353 and 5,644 shares issued,
     5,969 and 5,260 shares outstanding at December 31, 2013 and December 31, 2012, respectively
   
63
     
56
 
Treasury stock at cost, 384 shares at December 31, 2013 and December 31, 2012
   
(5,017
)
   
(5,017
)
Additional paid-in capital
   
278,159
     
274,445
 
Accumulated deficit
   
(268,884
)
   
(267,222
)
Accumulated other comprehensive loss
   
(104
)
   
(102
)
Total stockholders’ equity
   
4,217
     
2,160
 
   
$
35,615
   
$
36,148
 
 
 
 

 
 
ASURE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Amounts in thousands, except share and per share data)
 
    FOR THE
TWELVE MONTHS ENDED
DECEMBER 31,
 
   
2013
   
2012
 
Revenues
 
$
25,474
   
$
19,965
 
Cost of sales
   
6,425
     
4,573
 
       Gross Margin
   
19,049
     
15,392
 
                 
Operating Expenses
               
   Selling, general and administrative
   
13,252
     
11,803
 
   Research and development
   
2,835
     
2,376
 
   Amortization of intangible assets
   
2,180
     
1,726
 
       Total Operating Expenses
   
18,267
     
15,905
 
                 
Income (Loss) From Operations
   
782
     
(513
)
                 
Other Income (Loss)
               
   Interest income
   
49
     
3
 
   Gain (loss) on sale/disposal of assets
   
72
     
(28
   Loss on debt conversion
   
-
     
(198
   Foreign currency translation gain (loss)
   
(24)
     
(27
   Interest expense and other
   
(1,943
)
   
(1,169
)
   Interest expense – amortization of OID and derivative mark-to-market
   
(481
   
(815
)
       Total other income (loss), net
   
(2,327
)
   
(2,234
)
                 
Loss From Operations before Income Taxes
   
(1,545
)
   
(2,747
)
   Income tax provision
   
(117
)
   
(285
)
Net Loss
 
$
(1,662
)
 
$
(3,032
)
Other Comprehensive Income (Loss):
               
   Foreign currency gain (loss)
   
(2)
     
                   26
 
Other Comprehensive Income (Loss)
 
$
            (1,664
)
 
$
            (3,006
)
                 
Basic and Diluted Net Loss Per Share
               
  Basic
 
$
(0.29
)
 
$
(0.60
)
  Diluted
 
$
(0.29
)
 
$
(0.60
)
Weighted Average Basic and Diluted Shares
               
  Basic
   
5,661,000
     
5,048,000
 
  Diluted
   
5,661,000
     
5,048,000
 
 
 
 

 
 
ASURE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
 
   
FOR THE
YEAR
DECEMBER 31,
 
   
2013
   
2012
 
CASH FLOWS FROM OPERATING ACTIVITIES:
           
Net loss
 
$
(1,662
)
 
$
(3,032
)
Adjustments to reconcile net loss to net cash provided by operations:
               
Depreciation and amortization
   
2,947
     
2,295
 
Provision for doubtful accounts
   
37
     
179
 
Share-based compensation
   
160
     
88
 
Interest income on settlement
   
(48
)
   
-
 
(Gain) loss on sale/disposal of assets
   
(72
)
   
28
 
Amortization of OID and derivative mark-to-market
   
481
     
815
 
Gain on debt payoff
   
(98
   
-
 
Loss on debt conversion
     
-
   
198
 
Changes in operating assets and liabilities:
               
Restricted cash
   
(150
)
   
(250
Accounts receivable
   
(899
   
1,095
 
Inventory
   
177
     
(150
)
Prepaid expenses and other assets
   
495
     
(229)
 
Accounts payable
   
 (1,008
)
   
692
 
Accrued expenses and other long-term obligations
   
737
     
140
 
Deferred revenue
   
          928
     
940
 
Net cash provided by operating activities
   
2,025
     
2,809
 
                 
CASH FLOWS FROM INVESTING ACTIVITIES:
               
Net purchases of property and equipment
   
(383
)
   
(904
)
Purchases of intangible assets
   
(62
)
   
 (351
)
    Collection of note receivable
   
10
     
77
 
Acquisitions net of cash acquired
   
-
     
(9,800
)
                 Net cash used in investing activities
   
(435
   
(10,978
                 
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Proceeds from notes payable
   
4,000
     
14,500
 
Payments on notes payable
   
  (6,880
)
   
        (3,833
)
Payments on conversion of subordinated notes payable
   
-
     
(222
Payments on line of credit
   
-
     
(500
)
Payments on capital leases
   
 (88
)
   
(33
Debt financing fees
   
(330
   
(680
Net proceeds from issuance of common stock
   
3,433
     
-
 
Net proceeds from exercise of stock options
   
35
     
20
 
Net cash provided by (used in) financing activities
   
          170
     
9,252
 
                 
Effect of foreign exchange rates
   
1
     
27
 
                 
Net increase (decrease) in cash and cash equivalents
   
1,761
     
1,110
 
Cash and equivalents at beginning of period
   
2,177
     
1,067
 
Cash and equivalents at end of period
 
$
3,938
   
$
2,177
 
                 
SUPPLEMENTAL INFORMATION:
               
Cash paid for:
               
Interest
 
$
1,461
   
$
797
 
                 
Non-cash Investing and Financing Activities:
               
Conversion of subordinated convertible notes payable to equity
   
                        93
     
2,247
 
Issuance of common stock upon acquisition
   
                     -
     
747