Asure Software Acquires Legiant, Raises 2012 Guidance
December 14 2011 - 1:09PM
- $4 million purchase price recognizes high synergy and low
1-time cost ($100,000)
- Transaction expected to contribute $1 million to EBITDA
- Increasing 2012 Revenue and EBITDA guidance to $18.0 million
and $4.0 million respectively
- Expect to generate $1/share of free cash flow in 2012
Asure Software, Inc. (Nasdaq:ASUR), a leading provider of workforce
management software, announced today that it has acquired Legiant,
an Austin, Texas-based provider of cloud computing time and
attendance software and management services.
On December 14, 2011 Asure entered into an asset purchase
agreement to acquire Legiant for $4 million, comprised primarily of
$1.2 million cash paid at closing, a $1.8 million seller's note,
$0.5 million in assumed debt, $0.25 million in cash acquired as
part of the acquisition, and $0.25 million in a short term note due
in January, 2012.
|
Guidance |
|
Q4
'11 |
FY
'12 |
Revenue
($000s) |
$3,530 -- $3,630 |
18,000 |
EBITDA Gain
($000s) |
n/a |
4,000 |
Net Earnings Per
Share |
Positive for Q4 & '11 |
tba |
EBITDA Gain ($000s) excl.
1Time |
540 -- 630 |
n/a |
"This acquisition fits with our cloud growth strategy via high
synergy / low integration risk transactions," said Pat Goepel,
Asure's Chief Executive Officer. "We are excited to enhance our
workforce management solution while utilizing our sizable tax loss
asset to create meaningful client and shareholder value.
David Scoglio, Asure's Chief Financial Officer
explained, "Due to continued strong cash generation, projected
at $0.75 million in the fourth quarter, we are pleased to announce
the acquisition of Legiant without any additional third party
debt. With the addition of Legiant, Asure is upgrading its
guidance for 2012 to $18 million in revenue and $4 million in
EBITDA*. Guidance for the current fourth quarter of 2011
remains unchanged. Please see the table above and the upcoming
8-K for additional details."
Steven Rodriguez, Asure's Chief Operating Officer, added, "Asure
Software provides the technology behind the Legiant Timecard
product which creates a natural synergy between the two companies.
The Legiant mobile solutions are an exciting addition to the Asure
time and labor management product suite."
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.
Legiant is a reseller of ADI Time based time and attendance
solutions that deliver improvements in workforce productivity
through a software-as-a-service (SaaS) platform. The
integration of software, hardware and professional services creates
a comprehensive suite of time accounting solutions that is easy to
use and accessible with a Web browser.
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 measures
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. In addition, this measure 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.
CONTACT: David Scoglio, CFO
Asure Software, Inc.
512-437-2732
dave_scoglio@asuresoftware.com
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