Asure Software Preannounces Q3 Earnings Upside, Announces Acquisition of ADI Time
October 03 2011 - 1:00PM
- Expects Q3'11 Earnings Per Share of $0.03 - $0.04, above the
($0.01)-$0.02 guidance. Expects Q3 EBITDA in excess of $375,000
($0.12/share) including $60,000 in FX currency gain; both pre
one-time costs, largely related to the acquisition. Sees Q3
Operating Cash Flow at $700,000. Expects the ADI Time
Acquisition to enable Asure to bring broader range of solutions to
a larger marketplace
- Introduces Calendar 2012 Forecast of $15.5 million revenue (80%
to be recurring/cloud-based), $2.8 million EBITDA
($0.90/share). Expects continued bookings growth and strong
free cash generation with $400,000+ of year-over-year one-time
perpetual software revenue decline as Asure drives cloud bookings
higher.
- Anticipates increased usage of Asure's $100 million in tax loss
carry-forwards through increased profitability
Asure Software, Inc. (Nasdaq:ASUR), a leading provider of workforce
management software, today announced that it has acquired ADI
Time®, a Warwick, Rhode Island-based leading vendor of cloud
computing time and attendance software and management
services. Asure acquired the assets and some of the
liabilities of ADI Time via an asset purchase agreement, through
Asure's newly formed subsidiary, ADI Software, LLC.
On Oct. 1, 2011 Asure entered into an asset purchase agreement
to acquire ADI Time for a $7 million purchase price, comprised of
$6 million cash paid at closing and a $1 million, three-year
seller's note. Cash paid at closing consisted of cash from
Asure's balance sheet, $300,000 in cash acquired as part of the
acquisition, and $3.7 million of new debt financing (details
disclosed in Asure's 8k, to be filed shortly). In 2012, Asure
estimates it will incur approximately $430,000 in acquisition
related interest expense. Asure expects total one-time costs
incurred to be less than $0.4 million; largely incurred in the
third and fourth quarters of 2011.
"ADI Time's suite of on-site and software-as-a-service (SaaS)
time & attendance solutions helps companies improve the
supervision of their workforces, provide better visibility into
labor costs, and achieve greater operational efficiencies," said
Pat Goepel, Asure's Chief Executive Officer. "ADI is focused on
delivering solutions to the small market and blue collar vertical
markets, which complements Asure's iEmployee cloud-based time and
attendance offering which is designed to meet the needs of the mid
and the white collar vertical markets. This acquisition enables
Asure to bring ADI Time's solutions to a much larger marketplace,
and together these solutions enable us to meet growing customer
demands today and well into the future. We are also excited about
the opportunity to offer iEmployee's solution to the eleven (11)
ADI Time resellers and partners that come with the acquisition,"
commented Mr. Goepel.
"The financial synergies from the acquisition are readily
identifiable and implementation is already underway," said David
Scoglio, Asure's Chief Financial Officer. "Efficiencies will come
in the form of office consolidations, FTE savings through senior
management consolidation, streamlining of deployment and adoption
activities, and reducing duplicative research and development
costs. Although we expected a one-time decline in reported
financial results as we shifted to a recurring revenue-based model,
the business has performed well and is beginning to throw off
significant cash flow. In fact, we expect to report $0.7M in
operating cash flows for the third quarter of 2011, of which
approximately $0.2M is due to changes in working capital. We
expect the ADI Time acquisition to increase the cash generation of
the business, and anticipate realizing a substantial portion of the
deal's synergies by the start of calendar 2012. We will
provide an update on the acquisition and our Q4 estimates during
our Q3 earnings call in mid-November."
Steven Rodriguez, Asure's Chief Operating Officer, added: "In
addition to filling an important piece of our workforce
productivity offering, we have also acquired the adiPad™ and the
adiTouch™ time terminals, which we think can revolutionize the
market via their ability to seamlessly interface with labor
management subscription services and on-premise software to help
organizations of all sizes automate time and attendance, lower
costs, and reduce errors related to payroll processing."
About Asure Software
Asure Software, Inc. (Nasdaq:ASUR), headquartered in Austin,
Texas, offers intuitive and innovative technologies that enable
companies of all sizes and complexities to operate more
efficiently. The company ensures a high-performing work
environment by integrating its "keep it simple" solutions and
expertise to more than 3,500 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 for evaluating
the performance of Asure's business, as it may provide additional
insight into Asure's financial results. 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.
CONTACT: Dave Scoglio
512-437-2732
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