Asure Software, Inc. Announces Dissolution of Unfavorable Austin, TX Headquarters Lease Arrangement and Provides Revised 2010 Ea
April 29 2010 - 9:00AM
Marketwired
Asure Software, Inc. (NASDAQ: ASUR), a leading provider of
workplace management software, today announced that it has come to
an agreement with its landlord, WB One & Two, Ltd., to dissolve
its current lease arrangement for its 137,530 sq. ft. headquarters
in Austin, TX. The key terms of the agreement, effective April 1,
2010 are:
- Asure Software will pay a termination fee of $1.5M.
- Asure Software will enter into a 3 year lease arrangement at a
gross rent of $20K per month vs. approximately $137K per month (net
of sub-tenant income) previously being paid.
As a result of this termination, Asure Software will alleviate
the risk of any future unmitigated lease expense over the course of
the original lease term ending in March of 2013. Additionally,
Asure Software will forfeit any rights to Net Profit Interests in
the lease.
In its fiscal Q2, Asure will recognize a related one-time charge
of ($1.2M), or ($0.41) per share. This one-time charge will consist
of the termination fee and the reversal of existing leasehold
impairment balances and lease-hold improvements on the balance
sheet. Additional charges in Q3 of ($0.01) per share are expected
as we move Asure's offices to an alternative location within the
Wild Basin campus.
Going forward, quarterly rent, less subtenant income, will drop
from approximately $412K, on a cash basis, to $60K. The expected
payback of this transaction is 13 months and 14 months, on a cash
and P&L basis respectively. The following table sets forth our
expected future earnings.
---------------- --------- ----------------- ------------- -------------
2010 OUTLOOK Q1 Q2 Q3 Q4
---------------- --------- ----------------- ------------- -------------
Estimated Real
Estate Charges ($0.41) ($0.01) n/a
---------------- --------- ----------------- ------------- -------------
Core Software
Business $0.02 - $0.04 $0.05 - $0.10 $0.08 - $0.15
---------------- --------- ----------------- ------------- -------------
Net Earnings Per To Be
Share Announced ($0.39) - ($0.37) $0.04 - $0.09 $0.08 - $0.15
---------------- --------- ----------------- ------------- -------------
"Since taking the reins in late 2009, we have reduced Asure's
cost structure, re-focused the Company on growth, retained our
NASDAQ listing, and protected potentially valuable tax loss
assets," stated CEO Pat Goepel. "Additionally, as discussed in
recent earnings calls, this effort will also facilitate Asure's
desire to strip away non-core businesses that dilute both our
P&L and our management's ability to focus on profitably growing
our core software business. As per our outlook in the above table,
we expect this profitability to increase as we move forward in 2010
and beyond."
About Asure Software
Headquartered in Austin, Texas, Asure Software, Inc. (ASUR),
empowers small to mid-size organizations and divisions of large
enterprises to operate more efficiently, increase worker
productivity and reduce costs through a comprehensive suite of
on-demand workforce management software and services. Asure's
market-leading suite includes products that optimize workforce time
and attendance tracking, benefits enrollment and tracking, pay
stubs and W2 documentation, and meeting and event management. With
additional offices in Warwick, Rhode Island, Vancouver, British
Columbia, and Mumbai, India, Asure serves 3,500 customers around
the world. For more information, please visit
www.Asuresoftware.com.
"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, which include those associated with
continued listing of the Company's securities on the NASDAQ Capital
Market, could cause actual results to differ from those contained
in the forward-looking statements.
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