Asure Software, Inc. (NASDAQ: ASUR), a leading provider of
workforce management software, today announced financial results
for the fiscal first quarter 2010, ended March 31, 2010.
Q1 Highlights:
-- Revenue growth of 2%, excluding divested Visual Asset Manager (VAM),
$0.1M%, over the comparable period in 2009. iEmployee grew 5% vs. the
comparable period in 2009; while Netsimplicity, excluding VAM, was
neutral on a year over year basis for the same period in 2009.
-- EBITDA* gain of $0.1M vs. a loss ($1.0M) in the same period in 2009
(See "Non-GAAP Financial Measures" section below).
-- Net loss of ($0.2M), ($0.06) per share vs. a loss of ($1.4M), ($0.44)
per share, for the same period in 2009. The net loss is comprised of
($0.1M) related to Austin HQ excess lease impact and ($0.1M) related to
the core business lines margin.
-- Operating Expenses reduced by 44%, or ($1.5M) compared to the same
period in 2009 largely due to both headcount & rate per head
efficiencies as well as other cost reductions. One-time costs in both
Q1 2009 and Q1 2010 were immaterial.
Asure's Chief Executive Officer, Pat Goepel, remarked: "On the
heels of positive results last reporting period, we're satisfied
with our performance for our fiscal first quarter. Last earnings
call, we discussed an outlook of positive EBITDA and potentially
breakeven results for our core business operations, excluding the
negative impact of our prior Austin headquarters lease arrangement.
As part of this turnaround effort, and as was recently announced,
we have solved our lease problem, and have guided for strong
positive results in the 2nd half of 2010 and as we move forward.
Although our core business reported a slight operating loss in the
first quarter, we expect improved and positive results beginning in
the current second fiscal quarter, excluding one-time charges
related to the lease termination. With the distraction, and P&L
drain of our lease behind us, we are laser focused on improving our
top line and keeping our low cost structure intact."
Dave Scoglio, Asure's Chief Financial Officer, added: "In light
of the expected ($0.41) per share charge related to the termination
of our lease in fiscal Q2 2010, we are expecting our core business
to begin to perform to shareholder's expectations, including double
digit revenue growth vs. the comparable period in 2009. We would
like to confirm our operational outlook, included below, at this
time, and are hopeful that shareholders will be pleased with future
results as our renewed cost structure begins to bear fruit.
Additionally, as net profits materialize, we expect to utilize our
significant Net Operating Loss carry forwards."
Pat Goepel continued, "In addition to our focus on revenue,
Asure is investing in new products and services which should add to
our momentum, and ultimately drive our 20/20 plan for growth in
Revenue and EBITDA. We remain optimistic that we can achieve our
revenue plan including preserving a substantial proportion of our
Ceridian related revenue stream. In addition, we are already
launching new products and partner channels, like NetSimplicity's
public calendar module, and iEmployee's newest premier payroll
partner, Advantec. We've made great strides in leveraging
partnerships, and continue to look for value added resellers to
facilitate further penetration into existing and new markets in the
near future."
2010 Outlook:
2010 OUTLOOK Q2 Q3 Q4
------------------ ------------------ -------------------
Estimated Real
Estate Charges ($ 0.41) ($ 0.01) n/a
------------------ ------------------ -------------------
Core Software
Business $ 0.02 - $ 0.04 $ 0.05 - $ 0.10 $ 0.08 - $ 0.15
------------------ ------------------ -------------------
Net Earnings
Per Share ($ 0.39) - ($ 0.37) $ 0.04 - $ 0.09 $ 0.08 - $ 0.15
================== ================== ===================
Conference Call Details:
Asure Software has scheduled a conference call for Wednesday,
May 12, 2010 at 11:00 a.m. ET (10:00 a.m. CT) to discuss its most
recent financial results and outlook. Participating in the call
will be Pat Goepel, Chief Executive Officer and David Scoglio,
Chief Financial Officer.
To take part, please dial 866-578-5747 ten minutes before the
conference call begins, ask for the Asure Software event and use
passcode 38176622. International callers should dial 617-213-8054
and reference the same passcode, 38176622.
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 15 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 on the investor relations
page of the Company's web site at www.asuresoftware.com.
* Non-GAAP Financial Measures: EBITDA
This press release includes the following financial measure
defined as a non-GAAP financial measure by the Securities and
Exchange Commission: EBITDA. This supplemental financial measure is
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 this non-GAAP measure 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 "Reconciliation of GAAP Net Earnings to
Earnings Before Interest, Taxes, Depreciation, Amortization and
Stock Compensation Expense (EBITDA)" table included in this press
release for further information regarding these non-GAAP financial
measures. In addition, EBITDA is presented because management
believes it is 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 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.
Reconciliation of GAAP Net Earnings to Earnings Before Interest, Taxes,
Depreciation, Amortization and Stock Compensation Expense (EBITDA)
Amounts in Thousands Q1 '10 Q1 '09
-------------- --------------
Net Loss $ (188) $ (1,379)
-------------- --------------
Interest 21 16
Tax 15 21
Depreciation 71 115
Amortization 194 195
Stock Comp. Expense 15 14
-------------- --------------
EBITDA $ 128 $ (1,018)
-------------- --------------
About Asure Software, Inc.:
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.
ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2010 2009
------------ ------------
ASSETS
Current Assets:
Cash and equivalents $ 1,991 $ 2,263
Accounts receivable, net of allowance for
doubtful accounts of $58 and $34 at March
31, 2010 and December 31, 2009,
respectively 1,082 1,526
Inventory 24 49
Prepaid expenses and other current assets 213 213
------------ ------------
Total Current Assets 3,310 4,051
Property and equipment, net 590 581
Intangible assets, net 3,429 3,623
------------ ------------
Total Assets $ 7,329 $ 8,255
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 795 $ 1,039
Accrued compensation and benefits 47 79
Lease impairment and advance 322 562
Other accrued liabilities 452 411
Deferred revenue 1,587 1,744
------------ ------------
Total Current Liabilities 3,203 3,835
Long-term deferred revenue 125 134
Long-term lease impairment and advance 174 196
Other long-term obligations 189 212
------------ ------------
Total Liabilities 3,691 4,377
------------ ------------
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 3,128 shares outstanding at March
31, 2010 and December 31, 2009, respectively 334 334
Treasury stock at cost, 256 and 213 shares at
March 31, 2010 and December 31, 2009,
respectively (5,017) (4,907)
Additional paid-in capital 270,940 270,925
Accumulated deficit (262,592) (262,404)
Accumulated other comprehensive loss (27) (70)
------------ ------------
Total Stockholders' Equity 3,638 3,878
------------ ------------
Total Liabilities and Stockholders' Equity $ 7,329 $ 8,255
============ ============
The accompanying notes 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,
2010 2009
-------- --------
Revenues $ 2,460 $ 2,510
Cost of Sales (638) (493)
-------- --------
Gross Margin 1,822 2,017
-------- --------
Operating Expenses:
Selling, general and administrative 1,441 2,758
Research and development 342 523
Amortization of intangible assets 149 149
-------- --------
Total Operating Expenses 1,932 3,430
-------- --------
Loss From Operations (110) (1,413)
-------- --------
Other Income (Expenses):
Interest income 1 24
Gain/(loss) on sale of assets - 30
Foreign currency translation (loss) gain (43) 17
Interest expense and other (21) (16)
-------- --------
Total Other Income (Expense) (63) 55
-------- --------
Loss from operations, before tax (173) (1,358)
Provision for income taxes (15) (21)
-------- --------
Net Loss $ (188) $ (1,379)
======== ========
Basic and diluted net loss per share $ (0.06) $ (0.44)
Shares used in computing basic and diluted net loss per
share 3,095 3,111
The accompanying notes are an integral part of these condensed consolidated
financial statements.
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