Asure Software Reports Third Quarter Financial Results, Announces Accelerated Transition to SaaS

Asure Software Reports Third Quarter Financial Results, Announces Accelerated
Transition to SaaS

  *Third quarter revenue of $5.7 million was up 35% or $1.5 million compared
    to the second quarter 2012.
    
  *Cash and cash equivalents increased by $1.3 million or 83% compared to
    second quarter 2012.
    
  *Recurring revenue has increased to 80% of our total revenue in third
    quarter up from 75% in the previous quarter.

AUSTIN, Texas, Nov. 14, 2012 (GLOBE NEWSWIRE) -- Asure Software, Inc.
(Nasdaq:ASUR), a leading provider of workplace management software, today
announced results for the third quarter, which ended September 30^th, 2012.

Q3 Strategic Highlights

  *Acquired the outstanding shares of PeopleCube effective July 1, 2012. This
    acquisition resulted in an increase in revenue in the quarter of $1.8
    million and expanded Asure Software's product line in the U.S. and EMEA.
    PeopleCube's workplace management solutions help companies more
    effectively manage scheduling processes, increase utilization of corporate
    assets, and improve workplace productivity, all of which result in better
    cost control over one of a company's highest expenses – real estate.
    PeopleCube's SaaS (Software as a Service)- and HaaS (Hardware as a
    Service)- based solutions are directly in line with Asure Software's
    strategy to bring innovative, cloud-based solutions to clients to help
    them simplify their workplaces.
    
  *An accelerated SaaS-based technology strategy, with a de-emphasis on
    perpetual licensing models, continues to be a primary strategic driver and
    we are seeing high customer satisfaction and marketplace acceptance. The
    AsureForce Time & Labor Management (TLM) and AsureSpace NetSimplicity
    platforms are now exclusively SaaS-based and all other solutions are
    moving primarily toward a pure repetitive approach by end of year 2012.
    
  *Expanded senior leadership team with the addition of two proven
    executives: 1) Jennifer Crow, CFO, with a proven track record of success
    in the areas of finance, accounting and investor relations and 2) Jennifer
    Roth, VP of Marketing, who has over 20 years of experience building global
    brands and driving demand generation programs that align with business
    priorities and directly support revenue goals.

Q3 Results

  *Revenue for the third quarter was $5.7 million compared to $4.2 million in
    the previous quarter and $2.5 million in the third quarter 2011. Revenue
    for the nine months ended was $14 million versus $7.3 million in the same
    period 2011.
    
  *Non-GAAP revenue* for the third quarter was up $6.3 million. Non-GAAP
    revenue for the nine months ended was $14.7 million.
    
  *Gross margin for the quarter was $4.7 compared to $3.2 in the previous
    quarter and $2.0 in the same quarter 2011. Gross margin for the nine
    months ended was $11 million versus $5.9 million in the same period 2011.
    
  *EBITDA* excluding one-time items* for the third quarter was $906,000 up
    from the $838,000 in the previous quarter. One-time items* in the quarter
    related legal and professional fees, site consolidation related to the
    acquisition of Meeting Maker and other one-time expenses* were $739,000 up
    from $427,000 in the second quarter 2012 for the one-time items* related
    to the acquisition of ADI Time and Legiant.

Management Commentary

Pat Goepel, Chief Executive Officer of Asure Software commented, "Our third
quarter saw us complete an important transaction with the acquisition of
PeopleCube. The addition of PeopleCube's offerings to our product line and our
fully-SaaS based AsureForce platform align with our strategic shift to a
pure-play SaaS-based recurring revenue model. Goepel also commented, "Third
quarter earnings and gross margin were up over the previous quarter 2012 and
we saw strong cash at $1.3 million. We also experienced a non-cash deferred
revenue charge due to the PeopleCube acquisition in the third quarter."

Jennifer Crow, Asure's Chief Financial Officer added, "Our guidance is being
revised (per below) to reflect the fair market valuation accounting treatment
of deferred revenue and reduced perpetual revenue, offset by expected SaaS
business. As a reminder, perpetual revenue (and correlated profit) is
recognized immediately upon booking, whereas SaaS and recurring revenues are
recognized ratably over longer time periods. Thus, an accelerated shift to
SaaS, including the PeopleCube acquisition, has a negative impact to near-term
reported financials but our Board believes it increases the Company's value
over the longer term. Asure continues to generate strong cash flow while
managing costs and expects to continue to do so, which positions us well for
future financial growth and strong forward performance." Please see below for
details around Asure's financial results.

Company Outlook

                                Q4          FY 13
Revenue                         5,800-6,200 25,000-27,000
EBITDA, excluding one-time items 1,000-1,300 6,000 - 7,000
Free cash flow                              6,000 -7,000

Conference Call Details

Asure will follow this announcement with a conference call for the investment
community on Wednesday, November 14, 2012 at 11:00 a.m. EST, (10:00 a.m. CST)
to further discuss the quarter and outlook.Participating in the call will be
Pat Goepel, Chief Executive Officer and Jennifer Crow, Chief Financial
Officer.To participate, dial (877) 853-5636 ten minutes before the call
begins. International callers should dial (631) 291-4544.The conference ID
for all callers is 34307490.

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 ten 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 Software

Asure Software, Inc. (Nasdaq:ASUR), headquartered in Austin, Texas, offers
intuitive and innovative workplace and workforce management solutions that
enable companies of all sizes and complexities to operate more efficiently and
better control costs. The company ensures a high-performing work environment
by delivering its "keep it simple" solutions and expertise to more than 11,000
clients worldwide. Asure Software's suite of solutions ranges from time and
attendance workforce management solutions to intelligent on-demand workplace
management solutions. For more information, please visit
www.asuresoftware.com.

The Asure Software, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=11986

"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 arefrequently 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.

Free Cash Flow is computed by subtracting capital expenditures from cash flow
from operations, each as determined in accordance with GAAP and as reflected
in the statement of cash flows.

Non-GAAP Revenue is computed added back the deferred revenue fair market
valuation to GAAP revenue.

Reconciliation of GAAP Net Earnings to Earnings Before Interest, Taxes,
Depreciation, Amortization and Stock
Compensation Expense (EBITDA)and EBITDA Gain Excluding One-time       
items.
                                                                    
FOR THE THREE MONTHS ENDING                                           
$000s                              September 30,     September 30,     Inc/Dec
                                   2012              2011
Net Gain/(Loss)                    (1228)            29                (1257)
Interest                           578               9                 569
Interest - Mark to Market          0                 0                 0
Tax                                30                9                 21
Depreciation                       56                33                23
Amortization                       699               195               504
Stock Compensation                 32                27                5
EBITDA Gain                        167               302               (135)
One-time items                     739               160               579
EBITDA Gain excluding one-time     906               462               444
items
                                                                    
Reconciliation of GAAP Net Earnings to Earnings Before Interest, Taxes,
Depreciation, Amortization and Stock
Compensation Expense (EBITDA)and EBITDA Gain Excluding One-time       
items.
                                                                    
FOR THE NINE MONTHS ENDING                                            
$000s                              September 30,     September 30,     Inc/Dec
                                   2012              2011
Net Gain/(Loss)                    (2,399)           (4)               (2395)
Interest                           942               31                911
Interest - Mark to Market (MTM)    465               0                 465
Tax                                196               30                166
Depreciation                       161               114               47
Amortization                       1,413             585               828
Stock Compensation                 66                55                11
EBITDA Gain                        844               811               33
One-time items                     1,675             276               1,399
EBITDA Gain excluding one-time     2,519             1,087             1,432
items

                                                              
Reconciliation of GAAP Net Earnings to Net Earnings Excluding  
One-time items
                                                              
$000s                                      FOR THE THREE MONTHS ENDED
                                           September 30
                                          2012                2011
Net Gain/(Loss)                            (1,228)             29
Legal & Professional Services              439                 84
Severance & Recruitment                    273                 26
Site Consolidation                         5                   0
Other one-time items (net)                 22                  50
Sub-total one-time items                   739                 160
Net Gain excluding one-time items          (489)               189
                                                             
Reconciliation of GAAP Net Earnings to Net Earnings Excluding  
One-time items
                                                              
$000s                                      FOR THE NINE MONTHS ENDED
                                           SEPTEMBER 30
                                          2012                2011
Net Gain/(Loss)                            (2,399)             (4)
Legal & Professional Services              982                 84
Severance & Recruitment                    369                 105
Site Consolidation                         55                  0
Interest - Mark to Market                  465                 0
Loss on Conversion of Debt                 199                 0
3:2 Stock Split                            19                  0
Provision for Taxes - Site Shut down       60                  0
Other one-time items (net)                 50                  87
Sub-total one-time items                   2,199               276
Net Gain excluding one-time items          (200)               272
                                                             
                                                             
Reconciliation of GAAP Revenue to Non-GAAP revenue             
                                                              
$000s                                      FOR PERIOD ENDED SEPTEMBER 30
                                          Three months        Nine months
                                           ended 2012          ended 2012
Revenue                                   5,659               14,017
Adjustment                                 556                 661
Non- GAAP revenue                          6,215               14,678
Note – Adjustment relates to the fair market valuation for assumed deferred
revenue contracts that were not recognized in the period due to business
combination accounting rules.

                                                                
ASURE SOFTWARE , INC.                                            
CONDENSED CONSOLIDATED BALANCE SHEETS                           
(Amounts in thousands, except per share data)                    
(Unaudited)                                                      
                                                                
                                                   September 30, December31,
                                                    2012          2011
ASSETS                                                           
Current Assets:                                                 
Cash and equivalents                                $2,746        $1,067
Accounts receivable, net of allowance for doubtful
accounts of $203 and $19 at September 30, 2012 and  3,312         1,483
December31, 2011, respectively
Notes receivable                                    24            96
Inventory                                           174           116
Prepaid expenses and other current assets           1,305         338
Total Current Assets                                7,561         3,100
                                                                
Property and equipment, net                         501           414
Intangible assets, net                              12,805        6,307
Goodwill                                            14,830        6,264
Other                                               29            --
Total Assets                                        $35,726       $16,085
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY                             
Current Liabilities:                                             
Line of credit                                      $--           $500
Current portion of notes payable                    101           349
Accounts payable                                    2,208         1,097
Accrued compensation and benefits                   78            141
Other accrued liabilities                           725           536
Deferred revenue                                    9,673         4,792
Total Current Liabilities                           12,785        7,415
                                                                
Long-term liabilities:                                          
Deferred revenue                                    14            169
Note payable                                        14,500        --
Sellers note                                        2,438         --
Subordinated notes payable                          2,916         4,323
Subordinated convertible notes                      283           1,247
Derivative liability                                --            835
Other long-term obligations                         25            32
Total Long-Term Liabilities                         20,176        6,606
                                                                
Stockholders' Equity:                                            
Preferred stock, $.01 par value; 1,500 shares       —             —
authorized; none issued or outstanding
Common stock, $.01 par value; 11,000 shares
authorized; 5,642 and 5,014 shares issued; 5,258    339           334
and 4,630 shares outstanding at September 30, 2012
and December31,2011,respectively
Treasury stock at cost, 384shares at September    (5,017)       (5,017)
30, 2012 and December 31, 2011
Additional paid-in capital                         274,136       271,065
Accumulated deficit                                (266,590)     (264,190)
Accumulated other comprehensive loss               (103)         (128)
Total Stockholders' Equity                          2,765         2,064
Total Liabilities and Stockholders' Equity          $35,726       $16,085


ASURE SOFTWARE , INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)
                                                                   
                                          FOR THE            FOR THE
                                         THREE MONTHS ENDED NINE MONTHS ENDED
                                          SEPTEMBER 30,      SEPTEMBER 30,
                                         2012       2011    2012      2011
Revenues                                  $5,659     $2,502  $14,017   $7,293
Cost of Sales                             (936)      (486)   (2,973)   (1,363)
Gross Margin                              4,723      2,016   11,044    5,930
                                                                   
Operating Expenses:                                                 
Selling, general and administrative       3,975      1,526   8,443     4,340
Research and development                  809        366     1,991     1,150
Amortization of intangible assets         573        150     1,158     449
Total Operating Expenses                  5,357      2,042   11,592    5,939
                                                                   
Income/(Loss) From Operations             (634)      (26)    (548)     (9)
                                                                   
Other Income (Expenses):                                            
Interest income                           --         2       3         8
Foreign currency translation (loss)/gain  7          67      (22)      47
Gain/ (Loss) on disposal of assets        9          --      (28)      --
(Loss) on debt conversion                 --         --      (198)     --
Interest expense- amortization of OID and (578)      --      (1,409)   --
derivative mark-to market
Interest expense and other                (2)        (5)     (1)       (20)
Total Other Income (Expense)              (564)      64      (1,655)   35
                                                                   
(Loss)/IncomeFrom Operations Before      (1,198)    38      (2,203)   26
Income Taxes
Income Tax Expense                        (30)       (9)     (196)     (30)
Net (Loss)/Income                         $(1,228)   $29     $(2,399)  $(4)
                                                                   
Basic(Loss)/Income Per Share             $(0.23)    $0.01   $(0.48)   $(0.00)
Diluted (Loss)/Income Per Share           $(0.23)    $0.01   $(0.48)   $(0.00)
                                                                   
Shares Used In Computing Basic            5,245      3,085   4,976     3,085
(Loss)/Income Per Share
Shares Used In Computing Diluted          5,245      3,094   4,976     3,085
(Loss)/Income Per Share


ASURE SOFTWARE , INC.
 Condensed Consolidated Statements of Comprehensive Income (Loss)
(In thousands)
(Unaudited)
                                                                    
                                          FOR THE            FOR THE
                                         THREE MONTHS ENDED NINE MONTHS ENDED
                                          SEPTEMBER 30,      SEPTEMBER 30,
                                         2012        2011   2012       2011
Net (Loss)/Income                         $(1,228)    $29    $(2,399)   $(4)
Other comprehensive (Loss)/Income:                                   
Foreign currency translation (loss)/Gain (2)         (74)   24         (65)
Comprehensive Loss                        (1,230)     (45)   (2,375)    (69)


ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands, except per share data)
(Unaudited)
                                                                    
                                                           FORTHENINEMONTHS
                                                           ENDED
                                                            SEPTEMBER 30,
                                                          2012       2011
CASH FLOWS FROM OPERATING ACTIVITIES:                                
Net loss                                                   $(2,399)   $(4)
Adjustments to reconcile net loss to net cash provided by            
operations:
Depreciation and amortization                              1,574      702
Provision for doubtful accounts                            (16)       (29)
Share-based compensation                                   67         55
Interest expense – amortization of OID and derivative      643        --
mark-to-market
Loss on sale/disposal of assets                            36         --
Loss on debt conversion                                    198        --
Changes in operating assets and liabilities:                         
Notes receivable                                           --         2
Accounts receivable                                        435        289
Inventory                                                  (58)       19
Prepaid expenses and other current assets                  (187)      28
Accounts payable                                           229        126
Accrued expenses and other long-term obligations           (297)      30
Deferred revenue                                           1,184      601
Net cash provided by operating activities                  1,409      1,819
                                                                    
CASH FLOWS FROM INVESTING ACTIVITIES:                                
                                                                    
Net purchases of property and equipment                    (167)      (60)
Acquisitions of PeopleCube net of Cash acquired            (9,316)    --
(Issuance) or collection of note receivable                72         --
Net used in investing activities                           (9,411)    (60)
                                                                    
CASH FLOWS FROM FINANCING ACTIVITIES:                                
Payments on notes payable and capital leases               (3,462)    (36)
Payments on notes payable conversion                       (222)      --
Payments on Line of credit                                 (500)      3,350
Proceeds from notes Payable                               14,500     
Acquisition fees                                           (680)      
Net proceeds from exercise of options                      19         --
Net cash provided by financing activities                  9,655      3,314
                                                                    
Effect of translation exchange rates                       26         (61)
                                                                    
Net increase in cash and equivalents                       1,679      5,012
Cash and equivalents at beginning of period                1,067      1,070
Cash and equivalents at end of period                      $2,746     $6,082
                                                                    
SUPPLEMENTAL INFORMATION:                                            
Interest Paid                                              $437       --
Payments of accelerated interest on subordinated           211        --
convertible notes payable on conversion
Non-Cash Financing Activity – conversion of subordinated   969        --
convertible notes payable to equity

CONTACT: Jennifer Crow, CFO
         Asure Software, Inc.
         512-437-2732
         jcrow@asuresoftware.com
        
         Jon Cunningham
         RedChip Companies, Inc.
         Tel: +1-800-733-2447, Ext. 107
         info@redchip.com
         http://www.redchip.com

Asure Software, Inc. Logo
 
Press spacebar to pause and continue. Press esc to stop.