- Q2 Earnings of $0.03 per share excluding one-time items*
- Q2 EBITDA* of $0.3 million, exceeding prior guidance by
48%
- Recurring Cloud-based bookings growth of 41% Year over Year and
28% sequentially
- Cash and Equivalents grew to over $2.0 million, up 47% vs. Q1
2011
Asure Software, Inc. (Nasdaq:ASUR), a leading provider of workforce
management software, announced results for the second quarter ended
June 30, 2011.
Second quarter results included earnings of $0.03 per share,
excluding one-time items; EBITDA of $0.3 million, and GAAP Net
Income per share of $0.01. One-time items contributed ($0.02) per
share, and consisted of one-time investments in our Sales &
Marketing infrastructure and severance expense. Second quarter
revenue was $2.43 million, a 3% increase over the prior quarter.
The revenue increase of $0.07 million was largely driven by an
increase in recurring revenue, of which the majority was related to
growth in our Cloud-based revenue stream. Asure's recurring revenue
as a percentage of overall revenue increased by 17 basis points
quarter over quarter and by 7% versus the comparable period in
2010; from 73% to 80%. Gross margin was up almost one percent from
last quarter, at 82%. From a Cloud-based booking perspective (Asure
defines bookings as net new revenue to the firm in terms of total
contract value booked during a specified time period), Asure posted
further increases this second quarter. Compared to the prior
quarter of Q2 2010 and compared to the first quarter of 2011,
Asure's total Cloud-based bookings grew 41% and 28%
respectively.
Pat Goepel, Asure's Chief Executive Officer, noted, "Asure has
maintained its vigilance in continuing to drive intuitive
technology with superior service to our clients, and our second
quarter results are a reflection on continued execution of our
strategy. I couldn't be more pleased with our metrics this quarter.
Fortune 100 and innovative companies continue to maximize our
solution which is driving overall revenue growth. EBITDA and
earnings were above our estimates and cash has shown substantial
growth driven in part by our strong Cloud-based bookings this
quarter. NetSimplicity Cloud-based bookings, the subject of our
continued evolution towards 100% Cloud-based, grew by 90% over the
comparable quarter in 2010 and 38% over the first quarter of 2011,
primarily due to our recent enhancements in our product. Our
primary goal is to continue to deliver intuitive technology and a
superior client experience, while focusing on Cloud-based
bookings. This will facilitate further growth of our recurring
base of revenue in coming quarters, which will increase the
predictability of our business. Although this paradigm shift
to a focus on Cloud-based bookings 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 and cash flow."
David Scoglio, Asure's Chief Financial Officer, added, "Asure
generated EBITDA of $0.3 million, and together with a focus on
accounts receivable collection and Cloud-based deferred revenue
growth, we posted our fourth consecutive cash-generating
quarter. Cash increased almost $0.7 million to pass the $2
million mark this quarter. Other improvements included continued
growth in deferred revenue at 33% over the comparable quarter in
2010; and an increase in our quick ratio to 1.0 from 0.9 compared
to Q4 2010."
Mr. Goepel, in closing, remarked: "As we move forward in 2011,
we are committed to delighting our clients with our internal and
customer facing technology. Asure is currently on the hunt to
utilize its cash towards an accretive acquisition. Together
with the Company's M&A committee, we continue to seek
acquisition candidates and financing partnerships to complement our
cash position. Until that happens, we will continue to evolve
our business closer to 100% Cloud-based, while maintaining bookings
growth, profitability, and cash generation along the way."
2011 Earnings Guidance
|
Actual |
Guidance
Range |
|
|
|
|
Q1
'11 |
Q2
'11 |
Q3
'11 |
Q4
'11 |
Full Year
2011 |
Net Earnings/(Loss) Per
Share |
($0.02) |
$0.01 |
($0.01) |
-- |
$0.02 |
$0.01 |
-- |
$0.04 |
($0.01) |
-- |
$0.05 |
EBITDA Gain
($000s) |
211 |
298 |
210 |
-- |
310 |
290 |
-- |
410 |
1,009 |
-- |
1,229 |
Conference Call Details
Asure will follow this announcement with a conference call for
the investment community on Wednesday, August 10, 2011, at 11:00
a.m. 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 88393520.
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
Asure Software, Inc. (Nasdaq:ASUR), 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 turbo-charge your workplace by
stimulating your workforce and maximizing your company's resources
while eliminating waste out of employee's work-flow.
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
world-wide; 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
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
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.
Reconciliation of GAAP
Net Income/(Loss) to Earnings Before Interest, Taxes, Depreciation,
Amortization and Stock Compensation Expense
(EBITDA) |
|
FOR THE THREE MONTHS
ENDING |
$000s |
June 30, 2011 |
June 30, 2010 |
Inc/Dec |
Net Income/(Loss) |
27 |
(1,015) |
1,042 |
Interest |
12 |
18 |
(6) |
Tax |
12 |
13 |
(1) |
Depreciation |
38 |
62 |
(24) |
Amortization |
195 |
195 |
0 |
Stock Compensation |
14 |
13 |
1 |
EBITDA
Income/(Loss) |
298 |
(714) |
1,012 |
|
FOR THE SIX MONTHS
ENDING |
$000s |
June 30, 2011 |
June 30, 2010 |
Inc/Dec |
Net Income/(Loss) |
(33) |
(1,203) |
1,170 |
Interest |
22 |
40 |
(18) |
Tax |
21 |
28 |
(7) |
Depreciation |
81 |
133 |
(52) |
Amortization |
390 |
389 |
1 |
Stock Compensation |
28 |
28 |
0 |
EBITDA
Income/(Loss) |
509 |
(585) |
1,094 |
|
|
Reconciliation of GAAP
Net Income/(Loss) to Net Earnings Excluding One-Time Items
|
|
FOR THE THREE MONTHS
ENDED JUNE 30, |
FOR THE SIX MONTHS
ENDED JUNE 30, |
$000s |
2011 |
2010 |
2011 |
2010 |
Net Income/(Loss) |
27 |
(1,015) |
(33) |
(1,203) |
Severance |
23 |
0 |
79 |
0 |
Sales & Marketing
Infrastructure |
35 |
0 |
35 |
0 |
Loss on Lease
Amendment |
0 |
1,203 |
0 |
1,203 |
Other 1-Time Items
(net) |
2 |
0 |
2 |
44 |
Net Income/(Loss) Excl.
One-Time Items |
87 |
188 |
83 |
44 |
|
ASURE SOFTWARE,
INC. |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
(Amounts in thousands, except
per share data) |
(Unaudited) |
|
|
June 30,
2011 |
December 31,
2010 |
ASSETS |
|
|
Current Assets: |
|
|
Cash and cash equivalents |
$ 2,026 |
$ 1,070 |
Accounts receivable, net of
allowance for doubtful accounts of $14 and $46 at June 30,
2011 and December 31, 2010, respectively |
974 |
1,239 |
Notes receivable |
65 |
62 |
Inventory |
10 |
25 |
Prepaid expenses and other
current assets |
229 |
255 |
Total Current Assets |
3,304 |
2,651 |
Notes receivable |
60 |
60 |
Property and equipment,
net |
245 |
281 |
Intangible assets, net |
2,454 |
2,844 |
Total
Assets |
$ 6,063 |
$ 5,836 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
Current Liabilities: |
|
|
Accounts payable |
$ 551 |
$ 560 |
Accrued compensation and
benefits |
83 |
95 |
Other accrued liabilities |
330 |
361 |
Deferred revenue |
2,216 |
1,955 |
Total Current Liabilities |
3,180 |
2,971 |
Long-term deferred revenue |
145 |
116 |
Other long-term
obligations |
10 |
25 |
Total Liabilities |
3,335 |
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 June 30, 2011 and
December 31, 2010, respectively |
334 |
334 |
Treasury stock at cost, 256
shares at June 30, 2011 and December 31,
2010, respectively |
(5,017) |
(5,017) |
Additional paid-in capital |
271,006 |
270,978 |
Accumulated deficit |
(263,574) |
(263,541) |
Accumulated other comprehensive
loss |
(21) |
(30) |
Total Stockholders' Equity |
2,728 |
2,724 |
Total Liabilities and Stockholders'
Equity |
$ 6,063 |
$ 5,836 |
|
|
|
The
accompanying notes from the Company's upcoming 10Q 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 JUNE 30, |
FOR THE SIX
MONTHS ENDED JUNE 30, |
|
2011 |
2010 |
2011 |
2010 |
Revenues |
$ 2,434 |
$ 2,625 |
$ 4,791 |
$ 5,085 |
Cost of Sales |
(437) |
(502) |
(877) |
(1,140) |
Gross Margin |
1,997 |
2,123 |
3,914 |
3,945 |
|
|
|
|
|
Operating Expenses: |
|
|
|
|
Selling, general and administrative |
1,413 |
1,442 |
2,815 |
2,883 |
Research and development |
393 |
364 |
784 |
706 |
Amortization of intangible assets |
150 |
150 |
298 |
299 |
Loss on lease amendment |
|
1,203 |
|
1,203 |
Total Operating
Expenses |
1,956 |
3,159 |
3,897 |
5,091 |
|
|
|
|
|
Income /(Loss) From
Operations |
41 |
(1,036) |
17 |
(1,146) |
|
|
|
|
|
Other Income (Expenses): |
|
|
|
|
Interest income |
4 |
1 |
6 |
2 |
Foreign currency translation gain (loss) |
1 |
26 |
(20) |
(17) |
Gain on sale of assets |
— |
23 |
|
23 |
Interest expense and other |
(7) |
(16) |
(15) |
(37) |
Total Other Income
(Expense) |
(2) |
34 |
(29) |
(29) |
|
|
|
|
|
Income/(Loss) From Operations Before Income
Taxes |
39 |
(1,002) |
(12) |
(1,175) |
Provision For Income Taxes |
(12) |
(13) |
(21) |
(28) |
Net Income/(Loss) |
$ 27 |
$ (1,015) |
$ (33) |
$ (1,203) |
|
|
|
|
|
Basic Income/(Loss) Per
Share |
$ 0.01 |
$ (0.33) |
$ (0.01) |
$ (0.39) |
Diluted Income/(Loss) Per
Share |
$ 0.01 |
$ (0.33) |
$ (0.01) |
$ (0.39) |
Shares Used In
Computing Basic Income /(Loss) Per Share |
3,085 |
3,085 |
3,085 |
3,090 |
|
|
|
|
|
Shares Used In
Computing Diluted Income /(Loss) Per Share |
3,088 |
3,085 |
3,085 |
3,090 |
|
|
|
|
|
The accompanying
notes from the Company's upcoming 10Q are an integral part of these
condensed consolidated financial statements. |
CONTACT: Dave Scoglio
512-437-2732
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