- Q1 Earnings Breakeven excluding one-time Items
- Recurring Cloud-based Bookings Growth of 73% Quarter over
Quarter, and 83% Year over Year
- Q1 EBITDA of $0.2M
- Cash growth of 29% Quarter over Quarter, to ~$1.4M
- Deferred Revenue Growth of 26% Year over Year; 4% Quarter over
Quarter
- Total GAAP earnings per share of ($0.02) compared to guidance
of ($0.04) to ($0.07) earnings per share
Asure Software, Inc. (Nasdaq:ASUR), a leading provider of workforce
management software, announced results for the first quarter ended
March 31, 2011.
First quarter results (excluding one-time items) included
earnings of ($0.00) per share, EBITDA of $0.2 million, and GAAP
earnings per share of ($0.02). Negative one-time items contributed
($0.02) per share to earnings, and consisted of severance expense
associated with a continual review of our ongoing cost
structure.
First quarter revenue was $2.36M, a (4%) decrease over the prior
period in 2010 of $2.46M. The revenue decrease of ($0.10) was
largely driven by both a ($0.10M) reduction in one-time hardware
sales and the one time effect of the settlement agreement with a
major reseller in May of 2010, ($0.08M); offset by an increase of
$0.05M in recurring revenue. Asure's recurring revenue as a
percentage of overall revenue increased by 3 percentage points
compared to the prior period of 2010; from 77% to 80%. From a
recurring, cloud-based bookings (Asure defines bookings as net new
revenue to the firm in terms of total contract value booked during
a specified time period) perspective, Asure posted increases in
both product lines. Compared to the prior quarter of Q4 2010,
Asure's NetSimplicity Cloud-based bookings grew 88% while iEmployee
line's Cloud-based bookings grew by 34%
Pat Goepel, Asure's Chief Executive Officer, remarked, "We are
pleased with how this quarter played out. Despite a two cent loss
due to one time items, we were able to exceed our earnings guidance
by the same amount. Our recurring revenue and related booking
metrics have shown significant improvement as well. Recurring
revenue in both the NetSimplicity and iEmployee product lines
exhibited growth over the prior quarter, at 2% and 4% respectively,
and overall recurring revenue hit the 80% mark this first
quarter. Cloud-based bookings showed significant progress as
well. NetSimplicity cloud bookings grew by 108% over the
comparable quarter in 2010 while iEmployee cloud bookings increased
by 27% over the same period. Our goal is to continue to grow
our recurring base of revenue in coming quarters, which will
increase the predictability of our business. Although the
focus on repetitive revenue adversely affects revenue recognition
in the short term, we believe it is what this business needs to
facilitate long term shareholder value and predictable
profitability."
David Scoglio, Asure's Chief Financial Officer, added, "Our
balance sheet continues to improve. Due to EBITDA of $0.2M and
a focus on working capital improvement, we posted a 29% improvement
in cash, which was up $0.3M to $1.375 M this quarter. Other
improvements included a 26% growth in deferred revenue over the
comparable quarter in 2010; and an increase in our quick ratio to
0.9 from 0.8 compared to Q4 2010."
For the rest of 2011, we are committed to continue to focus on
these Key Performance Indicators, drive repetitive revenue and
tactically invest in the future of Asure. As we move forward,
we are providing the below table of earnings and EBITDA estimates
for the remainder of 2011.
|
Q1 '11 |
Q2
'11 |
Q3
'11 |
Q4
'11 |
Full Year
2011 |
Net Earnings/(Loss) Per
Share |
($0.02) |
($0.04) |
-- |
($0.02) |
($0.01) |
-- |
$0.02 |
$0.01 |
-- |
$0.04 |
($0.06) |
-- |
$0.02 |
EBITDA Gain
($000s) |
$211 |
$140 |
-- |
$200 |
$210 |
-- |
$310 |
$290 |
-- |
$410 |
$851 |
-- |
$1,131 |
Mr. Goepel, in closing, remarked: "Asure is continuing to build
on our cloud-based offerings, recurring revenue growth has
been positive, and revenue retention is improving. We are looking
to complement organic growth with accretive acquisitions to enhance
shareholder value. Asure is well on its way to continued
improvements and the metrics shared today are a reflection of the
progress made over the past 18 months."
Conference Call Details
Asure will follow this announcement with a conference call for
the investment community on Wednesday, May 11, 2011, at 11:00 am
EDT, (10 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 pass code for all callers is 64578470.
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
Headquartered in Austin, Texas, Asure Software (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 global cloud based
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, W2
documentation, and room scheduling solutions focused on meeting
rooms, equipment and other shared resources. 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.
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: 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 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.
Reconciliation of GAAP
Net Earnings to Earnings Before Interest, Taxes, Depreciation,
Amortization and Stock Compensation Expense
(EBITDA) |
$000s |
Q1 '11 |
Q1 '10 |
Inc/Dec |
Net Gain/(Loss) |
(60) |
(188) |
128 |
Interest |
10 |
21 |
(11) |
Tax |
9 |
15 |
(6) |
Depreciation |
43 |
71 |
(28) |
Amortization |
194 |
194 |
0 |
Stock Compensation |
15 |
15 |
0 |
EBITDA |
211 |
128 |
83 |
|
Reconciliation of GAAP
Net Earnings to Net Earnings Excluding 1-Time Items |
$000s |
Q1 '11 |
Q1 '10 |
Inc/Dec |
Net Gain/(Loss) |
(60) |
(188) |
128 |
Former Headquarters Lease |
|
67 |
(67) |
Other 1-Time Items (net) |
56 |
(23) |
89 |
Net Gain/(Loss) Excl. 1-Time
Items |
(4) |
(144) |
140 |
|
|
ASURE SOFTWARE,
INC. |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
(Amounts in thousands, except
per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
March 31, |
December 31, |
|
2011 |
2010 |
ASSETS |
|
|
Current Assets: |
|
|
Cash and equivalents |
$ 1,375 |
$ 1,070 |
Accounts receivable, net of allowance for
doubtful accounts of $47and $46 at March 31, 2011 and
December 31, 2010 respectively |
|
|
Notes receivable |
63 |
62 |
Inventory |
23 |
25 |
Prepaid expenses and other current
assets |
257 |
255 |
Total Current Assets |
2,749 |
2,651 |
|
|
|
Notes receivable |
60 |
60 |
Property and equipment, net |
246 |
281 |
Intangible assets, net |
2,649 |
2,844 |
Total Assets |
$ 5,704 |
$ 5,836 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
Current Liabilities: |
|
|
Accounts payable |
$ 466 |
$ 560 |
Accrued compensation and benefits |
28 |
95 |
|
|
|
Other accrued liabilities |
356 |
361 |
Deferred revenue |
2,046 |
1,955 |
Total Current Liabilities |
2,896 |
2,971 |
|
|
|
Long-term deferred revenue |
103 |
116 |
|
|
|
Other long-term obligations |
14 |
25 |
Total Liabilities |
3,013 |
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 3,128
shares outstanding at March 31, 2011 and
December 31, 2010, respectively |
|
|
Treasury stock at cost, 256 shares
at March 31, 2011 and December 31, 2010 |
(5,017) |
(5,017) |
Additional paid-in capital |
270,992 |
270,978 |
Accumulated deficit |
(263,601) |
(263,541) |
Accumulated other comprehensive loss |
(17) |
(30) |
Total Stockholders' Equity |
2,691 |
2,724 |
Total Liabilities and Stockholders'
Equity |
$ 5,704 |
$ 5,836 |
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, |
|
2011 |
2010 |
Revenues |
$ 2,357 |
$ 2,460 |
Cost of Sales |
(440) |
(638) |
Gross Margin |
1,917 |
1,822 |
|
|
|
Operating Expenses: |
|
|
Selling, general and administrative |
1,401 |
1,441 |
Research and development |
391 |
342 |
Amortization of intangible assets |
149 |
149 |
Total Operating
Expenses |
1,941 |
1,932 |
|
|
|
Loss From Operations |
(24) |
(110) |
|
|
|
Other Income (Expenses): |
|
|
Interest income |
2 |
1 |
Foreign currency translation loss |
(21) |
(43) |
Interest expense and other |
(8) |
(21) |
|
|
|
Total Other Expense |
(27) |
(63) |
|
|
|
Loss From Operations Before Income Taxes |
(51) |
(173) |
Income Tax Expense |
(9) |
(15) |
Net Loss |
$ (60) |
$ (188) |
|
|
|
Basic And Diluted Loss Per
Share |
$ (0.02) |
$ (0.06) |
|
|
|
Shares Used In Computing Basic And
Diluted Loss Per Share |
3,085 |
3,095 |
|
|
|
|
|
|
The accompanying notes are an
integral part of these condensed consolidated financial
statements. |
|
|
CONTACT: Dave Scoglio
512-437-2732
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