Asure Software Reports 2012 Fourth Quarter and Fiscal Year Financial Results

Asure Software Reports 2012 Fourth Quarter and Fiscal Year Financial Results

  *Fourth quarter EBITDA*, excluding one-times*, was $948,000 vs. guidance
    range of $1.0 to 1.3 million
  *Fourth quarter revenue of $5.9 million vs. guidance range of $5.8 to $6.2
    million
  *Fourth quarter net loss per share, excluding one-times* was $(0.09)

AUSTIN, Texas, April 1, 2013 (GLOBE NEWSWIRE) -- Asure Software, Inc.
(Nasdaq:ASUR), a leading provider of workplace management software, announced
results for the fourth quarter ended December 31, 2012.

Q4 Strategic Highlights

  *Signed exclusive agreement with FotoPunch to sell the first-ever time &
    labor management mobile facial recognition solution as part of a fully
    integrated TLM offering. AsureForce® GeoPunch™ is a highly differentiated
    offering that allows Asure to bring innovative technology solutions that
    are ideally suited for today's mobile workforces.
    
  *Filed a shelf registration statement which will allow Asure Software to
    offer and sell, in one or more offerings, common stock, preferred stock,
    debt securities, warrants, units or any combination thereof with a maximum
    aggregate offering price of $30 million. While Asure Software has no
    immediate plans to resell shares, the S-3 filing is a routine
    administrative matter that enables the business's future growth strategy.
    The filing also positions Asure to have the flexibility needed to take
    advantage of future acquisition opportunities and to meet the interests of
    large investors who may be looking to make investments.
    
  *Increased our conditional commitment debt facility from $5 million to $10
    million with our lending partner Deerpath Funding, LP. On March 29, 2013
    we amended our loan agreement. This amended credit facility requires less
    stringent covenant requirements, and expanded credit commitment and
    increased flexibility for growth for targeted future acquisitions.

Q4 and Year-End Results

  *Revenue for the quarter was $5.9 million compared to $5.7 million in the
    previous quarter and $3.7 million in the fourth quarter 2011. Revenue for
    the year ending December 31, 2012 was $20.0 million versus $10.9 million
    in 2011.
    
  *Non-GAAP revenue* for the quarter was $6.3 million. Non-GAAP revenue for
    the year ending December 31, 2012 was $20.9 million.
    
  *Gross margin for the quarter was $4.3 compared to $4.7 in the previous
    quarter and $2.7 in the same quarter 2011. Gross margin for the year
    ending December 31, 2012 was $15.4 million versus $8.7 million in 2011.
    
  *EBITDA* excluding one-time items* for the quarter was $948,000 compared to
    $906,000 in the previous quarter. One-time items* in the quarter were
    $175,000 down from $739,000 in the previous quarter, and were related to
    legal and professional fees, site consolidation related to the acquisition
    of Meeting Maker and other one-time expenses*.EBITDA* excluding one-time
    items* for the year ended December 31, 2012 was $3.3 million vs. $1.8
    million in 2011.
    
  *Recurring revenue for the quarter was 79% of total revenue compared to 80%
    in the previous quarter.Recurring revenue for the year ending December
    31, 2012 was 79% compared to 72% in 2011.
    
  *Cloud SaaS-based revenue for the quarter increased to $3.0 million up 8%
    over the previous quarter. Cloud SaaS-based revenue for the year ending
    December 31, 2012 was $9.9 million compared to $6.0 million in 2011.
    
  *Cloud SaaS-based bookings for the quarter increased by 2% from the
    previous quarter and by 36%, excluding PeopleCube, over 2011.

Management Commentary

Pat Goepel, Chief Executive Officer of Asure Software commented, "Fiscal year
2012 was a strong year financially and strategically, resulting in $20.0
million in revenue and improved strategic positioning. We completed the
acquisition of PeopleCube, as well as two smaller acquisitions of technology
and customers, shifted more of our business to SaaS as recurring revenue and
upgraded our products via strong development efforts throughout the year. This
quarter we increased the number of sales people in our direct sales channel
reflecting our focus on growth going forward.Revenue was up over the previous
quarter and we exited the year with $2.4 million in cash. " Mr. Goepel also
commented, "We met our revenue guidance and came just short of our EBITDA
guidance as we absorbed the cost of more new sales hires and continued our
shift to SaaS-based recurring revenue which represented 50% of all revenue in
2012."

Jennifer Crow, Asure's Chief Financial Officer added, "We recently amended our
credit facility with our primary lender, Deerpath Funding, LP. This amendment
provides for less stringent covenant requirements, given our investments
toward growth, and an expanded conditional credit commitment to $10 million to
fund permitted acquisitions. We are excited about our continued relationship
with Deerpath and look forward to working with them to execute our continued
growth strategy through targeted acquisitions. We are maintaining our 2013
revenue guidance range but due to the aforementioned increased investment in
our direct sales channel and our spending for growth, we have revised our 2013
EBITDA guidance, excluding one-times*, to be at the low end of the previously
communicated range."

Please see below for details around Asure's financial results.

Company Outlook                                 
                                Q1 13          FY 13
Revenue                         $5,700 - $6,000 $25,000 - $27,000
EBITDA, excluding one-time items $400 - $600     $6,000
                                               

Conference Call Details

Asure will follow this announcement with a conference call for the investment
community on Monday, April 1, 2013 at 4:15 p.m. EDT, (3:15 p.m. CDT) 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 15202606.

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
cloud-based time and labor management and workspace management solutions that
enable businesses to control their biggest costs -- labor, real estate
andtechnology-- and prepare for the workforce of the future in a highly
mobile, geographically disparate and technically wired work environment. Asure
serves approximately 6,000 clientsworldwide and currently offers two main
product lines: AsureSpace™ workplace management solutions enable organizations
to maximize the ROI of their real estate, and AsureForce^® time and labor
management solutions deliver efficient management of human resource and
payroll processes. For more information, please visitwww.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                                December 31,    December 31,    Inc/Dec
                                     2012            2011
Net Gain/(Loss)                      (633)           (645)           12
Interest                             575             129             446
Interest – OID and Mark to Market    0               604             (604)
Tax                                  89              42              47
Depreciation                         92              52              40
Amortization                         629             277             352
Stock Compensation                   21              26              (5)
EBITDA Gain                          773             485             288
One-time items                      175             230             (55)
EBITDA Gain excluding one-time items 948            715             233


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 TWELVE MONTHS ENDING
$000s                                December 31,    December 31,    Inc/Dec
                                     2012            2011
Net Gain/(Loss)                      (3,032)         (649)           (2,383)
Interest                             1,169           148             1,021
Interest – OID and Mark to Market    815             604             211
Tax                                  285             72              213
Depreciation                         253             168             85
Amortization                         2,042          882             1,160
Stock Compensation                   88              81              7
EBITDA Gain                          1,620           1,306           314
One-time items                       1,675           506             1,169
EBITDA Gain excluding one-time items 3,295           1,812           1,483


Reconciliation of GAAP Net Earnings to Net Earnings Excluding One-time items

$000s                                       FOR THE THREE MONTHS ENDED
                                            December 31
                                           2012             2011
Net Gain/(Loss)                             (633)            (645)
Legal & Professional Services               146              126
Severance, Recruitment & Relocation         26               35
OID and Mark to Market                      --               604
Other one-time items (net)                  3                69
Sub-total one-time items                    175              834
Net Gain/(Loss) excluding one-time items    (458)            189


Reconciliation of GAAP Net Earnings to Net Earnings Excluding One-time items

$000s                                       FOR THE TWELVE MONTHS ENDED
                                            DECEMBER 31
                                           2012              2011
Net Gain/(Loss)                             (3,032)           (649)
Legal & Professional Services               1,128             210
Severance, Recruitment & Relocation         395               140
Site Consolidation                          55                0
OID and Mark to Market                      465               604
Loss on Conversion of Debt                  198               0
3:2 Stock Split                             19                0
Provision for Taxes - Site Shut down        60                0
Other one-time items (net)                  54                156
Sub-total one-time items                    2,374             1,110
Net Gain/(Loss) excluding one-time items    (658)             461


Reconciliation of GAAP Revenue to Non-GAAP revenue

$000s                           FOR PERIOD ENDED DECEMBER 31
                               Three months           Twelve months
                                ended 2012             ended 2012
Revenue                         5,948                  19,965
Adjustment                      317                    978
Non- GAAP revenue               6,265                  20,943

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.
CONSOLIDATEDBALANCE SHEETS
(Amounts in thousands)

                                                          December, 31
                                                          2012      2011
Assets                                                              
Current assets:                                                     
Cash and cash equivalents                                  $ 2,177   $ 1,067
Restricted cash                                            250       --
Accounts receivable, net of allowance for doubtful
accounts of $182 and $19 at December 31, 2012 and 2011,    3,040     1,483
respectively
Inventory                                                  266       116
Notes receivable                                           19        96
Prepaid expenses and other current assets                  1,497     338
Total current assets                                       7,249     3,100
Property and equipment, net                                1,154     414
Goodwill                                                   15,525    6,264
Intangible assets, net                                     12,179    6,307
Other assets                                               41        --
Total assets                                               $ 36,148  $ 16,085
Liabilities and Stockholders' Equity                                
Current liabilities:                                                
Line of credit                                             $ --      $ 500
Current portion of notes payable                           3,450     349
Accounts payable                                           2,713     1,097
Accrued compensation and benefits                          78        141
Other accrued liabilities                                  1,013     536
Deferred revenue                                           9,684     4,792
Total current liabilities                                  16,938    7,415
Long-term liabilities:                                              
Deferred revenue                                           199       169
Notes payable- related party                               800       1,600
Notes payable                                              15,887    3,970
Derivative liability                                       --        835
Other liabilities                                          164       32
Total long-term liabilities                                17,050    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;
5,644 and 5,014 shares issued,                             56        50
5,260 and 4,630 shares outstanding at December 31, 2012
and 2011, respectively
Treasury stock at cost, 384 shares at December 31, 2012    (5,017)   (5,017)
and 2011
Additional paid-in capital                                 274,445   271,349
Accumulated deficit                                        (267,222) (264,190)
Accumulated other comprehensive loss                       (102)     (128)
Total stockholders' equity                                 2,160     2,064
                                                          $ 36,148  $ 16,085

The accompanying notes are an integral part of these consolidated financial
statements.



ASURE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Amounts in thousands, except share and per share data)
                                                           
                                         Twelve Months     Twelve Months
                                          December 31, 2012 December 31, 2011
Revenues                                   $19,965         $10,941
Cost of sales                              4,573             2,289
Gross Margin                               15,392            8,652
                                                         
Operating Expenses                                         
Selling, general and administrative       11,803            6,203
Research and development                  2,376             1,678
Amortization of intangible assets         1,726             680
Total Operating Expenses                   15,905            8,561
                                                         
Income (Loss) From Operations              (513)             91
                                                         
Other Income (Loss)                                        
Interest income                           3                 10
Loss on disposal of assets                (28)              --
Loss on debt conversion                   (198)             --
Foreign currency translation (loss) gain  (27)              74
Interest expense and other                (1,169)           (148)
Interest expense – amortization of OID    (815)             (604)
and derivative mark-to-market
Total other income (loss)                  (2,234)           (668)
                                                         
Loss From Operations before Income Taxes   (2,747)           (577)
Provision for income taxes                (285)             (72)
Net Loss                                   $ (3,032)         $ (649)
Comprehensive Loss:                                        
Foreign currency (loss) gain               26               (98)
Comprehensive loss                         $ (3,006)         $ (747)
                                                         
Basic and Diluted Net Loss Per Share                       
Basic                                      $ (0.60)          $ (0.14)
Diluted                                    $ (0.60)          $ (0.14)
Weighted Average Basic and Diluted Shares                  
Basic                                      5,048,000         4,628,000
Diluted                                    5,048,000         4,628,000


ASURE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(Amounts in thousands)
                                                                        
                                                           Other         
             Common      Common         Additional            Comprehensive Total
             Stock      Stock  Treasury Paid-in    Accumulated Income        Stockholders'
             Outstanding Amount Stock    Capital    Deficit     (Loss)        Equity
BALANCE AT                       $
DECEMBER 31,  4,627       $50  (5,017)  $271,262 $ (263,541) $ (30)        $2,724
2010
Share based                         81                               81
compensation
Net loss                                     (649)                   (649)
Stock issued
upon option   3                       6                               6
exercise
Other
comprehensive                                          (98)          (98)
income
BALANCE AT                       $
DECEMBER 31,  4,630       $50  (5,017)  $271,349 $ (264,190) $ (128)       $2,064
2011
Share based                         88                               88
compensation
Stock issued
upon option   30                      20                               20
exercise
Issuance of
stock upon    345        3              2,244                            2,247
debt
conversion
Issuance of
stock upon    255        3             744                              747
acquisition
Net loss                                     (3,032)                 (3,032)
Other
comprehensive                                          26            26
income
BALANCE AT                       $
DECEMBER 31,  5,260       $56  (5,017)  $274,445 $ (267,222) (102)         $2,160
2012


ASURE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
                                                           
                                         Twelve Months     Twelve Months
                                          December 31, 2012 December 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:                       
Net loss                                   $ (3,032)         $ (649)
Adjustments to reconcile net loss to net                    
cash used in operations:
Depreciation and amortization              2,295             1,050
Provision for doubtful accounts            179               10
Share-based compensation                   88                81
Amortization of original issue discount    350               46
(OID)
Loss on sale of assets                     28                --
Derivative mark-to market                  465               561
Loss on debt conversion                    198                --
Changes in operating assets and                            
liabilities:
Restricted cash                            (250)             --
Accounts receivable                        1,095             192
Inventory                                  (150)             (5)
Prepaid expenses and other current assets  (229)             (70)
Accounts payable                           692               377
Accrued expenses and other long-term       140               257
obligations
Deferred revenue                           940               1,503
Net cash provided by operating activities  2,809             3,353
                                                         
CASH FLOWS FROM INVESTING ACTIVITIES:                      
Net purchases of property and equipment    (904)             (121)
Purchases of intangible assets             (351)             --
Collection of note receivable              77                26
Acquisitions net of cash acquired          (9,800)           (10,401)
Net cash used in investing activities      (10,978)          (10,496)
                                                         
CASH FLOWS FROM FINANCING ACTIVITIES:                      
Payments on subordinated convertible notes (222)             --
payable on amendment and conversion
Payments on capital leases                 (33)              (58)
Net proceeds from exercise of stock        20                6
options
Proceeds from draw on line of credit       --                500
Payments on line of credit                 (500)             6,783
Proceeds from notes payable                14,500            --
Payments on notes payable                  (3,833)           --
Debt financing fees                        (680)             --
Net cash provided by financing activities  9,252             7,231
                                                         
Effect of translation exchange rates       27                (91)
                                                         
Net increase (decrease) in cash and        1,110             (3)
equivalents
Cash and equivalents at beginning of       1,067             1,070
period
Cash and equivalents at end of period      $2,177          $1,067
                                                         
SUPPLEMENTAL INFORMATION:                                  
Cash paid for:                                             
Interest                                   $797            $ 5
                                                         
Non-cash Investing and Financing                           
Activities:
Conversion of subordinated convertible     $2,247          $ --
notes payable to equity
Issuance of common stock upon acquisition  747               --

CONTACT: Jennifer Crow, CFO
         Asure Software, Inc.
         512-437-2732
         jcrow@asuresoftware.com

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