Asure Software Acquires Omaha-based Reseller and Updates 2019 Guidance
January 07 2019 - 4:13PM
Asure Software (NASDAQ-CM: ASUR), a leading provider of Human
Capital Management (HCM) and workspace management software,
announced today that it has acquired Payroll Maxx LLC (“Payroll
Maxx”), headquartered in Omaha, Nebraska. Payroll Maxx delivers
enterprise class workforce management services and technology for
small to mid-size employers. The company resells Asure Software’s
industry leading HRIS platform, Evolution, working with companies
to reduce payroll compliance risk and manage time through
comprehensive workforce management solutions.
Founded in 1998, Payroll Maxx is a full service provider serving
clients in all 50 states, processing over $1 billion in annual
gross wages last year. The company has grown into the largest,
privately-owned service bureau operating on a regional base from
Omaha, Nebraska.
Payroll Maxx partners with its clients nationwide to help them
manage their workforce with industry leading service. It provides
human resources technology and services, payroll processing and
time-labor automation to employers who want to leverage leading
technology and services to better manage their workforce more
efficiently.
Pat Goepel, CEO of Asure Software, said, “Payroll Maxx increases
our national presence not only with the addition of an Omaha
location, but also with their expansive client base.” Goepel
continued, “Consistent with our strategy, we are looking forward to
continuing to service their client base with the same customer
service they are accustomed to while introducing them to our
workspace technology, time and attendance solution and our HR
consulting services.”
“I have a passion for developing innovative solutions for
businesses and servicing customers with the integrity and quality
outcomes that the American business community deserves,” said Phil
Cooney, Chief Operating Officer of Payroll Maxx. “Asure Software
shares that passion, and with the additional workforce solutions
that will be available for our current customers it was a natural
fit.”
Updated 2019 Financial Outlook
Based on the Payroll Maxx acquisition closing, Asure is updating
2019 guidance. We now expect to achieve revenue of $104 million to
$107 million with non-GAAP EBITDA margin of 22% to 24% (or $23
million to $25 million). This compares with our prior guidance of
$100 million to $103 million* with non-GAAP EBITDA margin of 22% to
24%.
*Note that our previously issued 2019 revenue guidance was $110
million to $113 million, which included approximately $10 million
of complementary accretive acquisitions expected to close in the
first half of 2019. Going forward, we plan to revise guidance
after acquisitions close instead of providing anticipatory
acquisition timing and financial contributions.
Earnings Call Date and Time
Asure will report fourth quarter and fiscal year 2018 financial
results on Thursday, March 14, 2019 at 3:30 p.m. CST.
Non-GAAP Financial Measures
This press release includes the following financial measure
defined as non-GAAP financial measures by the Securities and
Exchange Commission: EBITDA, excluding one-time expenses. 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 expenses
associated with Asure Software’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 Software’s business. Asure Software’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 Software’s business, as it may provide
additional insight into Asure Software’s financial results. See the
“Reconciliation of GAAP Net Income/(Loss) to EBITDA Excluding
One-Time Expenses” table 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, excluding one-time expenses, is calculated by adding
income taxes, interest expense, depreciation and amortization and
stock compensation expense to net earnings and excluding certain
expenses that management believes to be one time in nature and are
not expected to recur on a dollar or per share basis. 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.
Asure Software is passionate about empowering every client’s
workplace with innovative technology to make each workday
easier. Asure Software’s suite of products including HCM
software, AsureForce Time & Labor Management, and the
AsureSpace SaaS platform for managing, monitoring and analyzing the
Agile Workplace, create the full employee engagement solution.
About Asure Software
Asure Software, Inc., headquartered in Austin, Texas, offers
intuitive and innovative solutions designed to help organizations
of all sizes and complexities build companies of the future. Our
cloud platforms enabled clients worldwide to better manage their
people and space in a mobile, digital, multi-generational, and
global workplace. Asure Software’s offerings include a
fully-integrated HCM platform, flexible benefits and compliance
administration, HR consulting, and time and labor management as
well as a full suite of workspace management solutions for
conference room scheduling, desk sharing programs, and real estate
optimization. Visit us at www.asuresoftware.com.
Contact:Stacy ZellnerDirector of Marketing, Asure
SoftwareTelephone: 888-323-8835 x 3111E-mail:
szellner@asuresoftware.com
Investor Relations Contact:Carolyn BassMarket Street
PartnersTelephone: 415-445-3232E-mail:
cbass@marketstreetpartners.com
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