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Asure Announces Second Quarter 2022 Results

·22 min read
Asure Software Inc
Asure Software Inc

AUSTIN, Texas, Aug. 08, 2022 (GLOBE NEWSWIRE) -- Asure Software, Inc. (Nasdaq: ASUR), a leading provider of cloud-based Human Capital Management (HCM) software solutions, reported results for the second quarter ended June 30, 2022.

“Our second quarter performance showed strong current sales momentum which gives me confidence that our solutions are resonating with clients, said Chairman and CEO, Pat Goepel. “We have continued to invest in our sales force, introduced innovative solutions and have improved the experience of our existing offerings. These efforts produced an 87% increase in new sales bookings in the quarter and shows our strategy is on the right track.”

“I am also pleased that our initiatives around operational efficiency and automation are making it easier for clients to work with Asure while creating new revenue streams for stakeholders. We are very excited about our opportunity to leverage our platform to generate high-margin revenue growth. We have built a strong foundation that we believe will drive future sales success and great customer experiences for both employers and their employees. We remain committed to making Asure the premier provider of HR solutions for small and medium sized businesses.”

Second Quarter 2022 Key Highlights

  • Revenue of $20.3 million, up 18% year-over-year

  • Non-GAAP EBITDA of $1.3 million, up 23% year-over-year

  • Non-GAAP net loss of $0.7 million versus $0.1 million in the prior year’s quarter

  • Total bookings were up 87% year-over-year

 

Three Months Ended

 

Six Months Ended

in thousands, except per share data
(unaudited)

June 30, 2022

 

June 30, 2021

 

Variance

 

June 30, 2022

 

June 30, 2021

 

Variance

REVENUE

 

 

 

 

 

 

 

 

 

 

 

GAAP Revenue

$

20,300

 

 

$

17,168

 

 

18.2

%

 

$

44,633

 

 

$

36,970

 

 

20.7

%

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross Profit

$

12,261

 

 

$

9,945

 

 

23.3

%

 

$

27,725

 

 

$

22,437

 

 

23.6

%

GAAP Gross Margin

 

60.0

%

 

 

57.9

%

 

n/a

 

 

62.0

%

 

 

60.7

%

 

n/a

Non-GAAP Gross Profit

$

13,407

 

 

$

11,335

 

 

18.3

%

 

$

30,600

 

 

$

24,911

 

 

22.8

%

Non-GAAP Gross Margin

 

66.0

%

 

 

66.0

%

 

n/a

 

 

68.6

%

 

 

67.4

%

 

n/a

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS

 

 

 

 

 

 

 

 

 

 

 

GAAP Net income (loss)

$

(5,860

)

 

$

3,764

 

 

NM

 

$

(8,877

)

 

$

2,166

 

 

NM

GAAP Net income (loss) per share

$

(0.29

)

 

$

0.20

 

 

NM

 

$

(0.44

)

 

$

0.11

 

 

NM

Non-GAAP Net income (loss)

$

(740

)

 

$

(71

)

 

NM

 

$

1,453

 

 

$

2,171

 

 

(33.1

)%

Non-GAAP Net income (loss) per share

$

(0.04

)

 

$

0.00

 

 

NM

 

$

0.07

 

 

$

0.10

 

 

(30.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

 

 

 

 

 

 

 

 

 

 

EBITDA

$

(83

)

 

$

8,328

 

 

NM

 

$

2,243

 

 

$

10,922

 

 

(79.5

)%

EBITDA Margin

(0.4

)%

 

 

48.5

%

 

n/a

 

 

5.0

%

 

 

29.5

%

 

n/a

Non-GAAP EBITDA

$

1,314

 

 

$

1,064

 

 

23.5

%

 

$

5,348

 

 

$

4,486

 

 

19.2

%

Non-GAAP EBITDA Margin

 

6.5

%

 

 

6.2

%

 

n/a

 

 

12.0

%

 

 

12.1

%

 

n/a

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  • NM indicates Not Meaningful Information

  • Non-GAAP financial measures are reconciled to GAAP in the tables set forth in this release

Financial Commentary

“Asure’s second quarter showed continuing strong financial momentum with revenues growing 18% relative to prior year and Non-GAAP EBITDA growing by 23%”, said CFO John Pence. “We increased our cash position in the quarter to $14.6 million and we continue to have a solid balance sheet and liquidity profile that we believe will enable us to continue to move our strategic initiatives forward. We reaffirm our guidance for the remainder of 2022.”

Asure Delivered the Following Results for its Second Quarter ended June 30, 2022:

Revenue: Total revenue for the second quarter of 2022 was $20.3 million, an increase of 18% from $17.2 million in the year-ago period. In the current period, recurring revenues represented 94% of total revenues, consistent with prior year.

Gross Profit: Non-GAAP gross profit for the second quarter of 2022 was $13.4 million (66.0% margin), an 18% increase from $11.3 million (66.0% margin) in the year-ago period.

Earnings (Loss) per Share: Non-GAAP earnings per share were ($0.04) compared with $0.00 in the year-ago period.

EBITDA: Second quarter 2022 Non-GAAP EBITDA was $1.3 million (6.5% margin), a 23% increase from $1.1 million (6.2% margin) in the year-ago period.

Recent Business Highlights

  • Announced its new Tax Portal to provide a convenient one-stop site that allows Asure’s Payroll clients to access historical and current-year tax data and all related tax information at any time including liabilities, deposit records, and copies of the actual tax returns. Asure’s Tax Portal surpasses the industry standard of simply providing access to current tax processing by offering more detail, an easier way to view historical information, an ability to see the status of registration, notices, activity related to resolutions, and communications with the tax agencies.

  • Launched new Integration Marketplace with pre-built integrations to more than 125 vendors that provide complementary HCM services in Payroll & Tax, Time & Attendance, Retirement, and Worker’s Compensation. Asure plans to continually add strategic partners and public APIs for developers to further extend its HCM ecosystem.

  • Introduced new treasury management system to bring world-class automation to preparation and reconciliation of business customers’ daily cash position. Asure’s Treasury System provides real-time visibility into the Treasury function with an array of stakeholder dashboards. This new enterprise software creates a single interface that captures money movement from multiple platforms and provides instant visibility for File Transmissions, Returns, and Reconciliations that all sync with General Ledger, Balance Sheet, and Dashboards through APIs.

  • New integrations with Automation™ Anywhere and Workato® to maximize the speed, efficiency, and customer experience with automated processes. These leading automation platforms provide Robotic Process Automation (RPA) capabilities that we expect to accelerate Asure’s HCM platform integration, streamline workflows, and further automate the end-to-end processes of Asure’s Payroll, HR, Tax Management, and money-movement services.

Third Quarter 2022 Guidance

We are providing the following guidance for the third quarter of 2022 based on our second quarter results. This outlook reflects our current view regarding the state of the economy.

Guidance Range

 

Q3-22

 

Q4-22

 

2022

Revenue

$

21.0M - 21.5M

$

23.0M - 23.5M

$

88.0M - 90.0M

Non-GAAP EBITDA

$

1.25M - 1.75M

$

3.0M - 3.5M

$

8.5M - 10.0M

Non-GAAP EPS

$

(0.05) - (0.02)

$

(0.01) - 0.01

$

(0.05) - 0.02

 

 

 

 

 

 

 

Conference Call Details

Asure management will host a conference call Monday, August 8, 2022 at 4:30pm Eastern / 3:30pm Central. Asure Chairman and CEO Pat Goepel and CFO John Pence will participate in the conference call followed by a question-and-answer session. The conference call will be broadcast live and available for replay via the investor relations section of the Company’s website. Analysts may participate on the conference call by dialing (800) 715-9871 (U.S.) or (646) 307-1963 (outside the U.S.). The conference ID is 1384319.

About Asure Software, Inc.

Asure (Nasdaq: ASUR) is a leading provider of HCM software solutions. We help small and mid-sized companies grow by assisting them in building better teams with skills to stay compliant with ever-changing federal, state, and local tax jurisdictions and labor laws, and better allocate cash so they can spend their financial capital on growing their business rather than back-office overhead expenses. Asure’s Human Capital Management suite, named Asure HCM, includes cloud-based Payroll, Tax Services, and Time & Attendance software as well as HR services ranging from HR projects to completely outsourcing payroll and HR staff. We also offer these products and services through our network of reseller partners. Visit us at asuresoftware.com.

Non-GAAP Financial Measures

This press release includes information about Non-GAAP Net Income (Loss), Non-GAAP Net Income (Loss) per share, Non-GAAP tax rates, Non-GAAP gross profit, EBITDA, EBITDA margin, Non-GAAP EBITDA, and Non-GAAP EBITDA margin (collectively the “Non-GAAP financial measures”). These Non-GAAP financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s Consolidated Financial Statements prepared in accordance with GAAP. Non-GAAP financial measures are reconciled to GAAP in the tables set forth in this release and are subject to reclassifications as deemed necessary by management.

EBITDA differs from GAAP Net Income (Loss) in that it excludes items such as interest, tax, depreciation, and amortization. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

Non-GAAP EBITDA differs from EBITDA in that it excludes share-based compensation, and one-time expenses. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

Non-GAAP Net Income (Loss) per share differs from GAAP Net Income (Loss) per share in that it assumes a 0% Non-GAAP tax rate, uses diluted share counts, and excludes items such as amortization, share-based compensation, and one-time expenses.

Non-GAAP gross profit differs from GAAP gross profit in that it excludes amortization, share-based compensation, and one-time items.

All Non-GAAP measures presented as “margin” are computed by dividing the applicable Non-GAAP financial measure by total revenue.

Management uses both GAAP and Non-GAAP measures when planning, monitoring, and evaluating the Company’s performance.

The primary purpose of using Non-GAAP measures is to provide supplemental information that may prove useful to investors and to enable investors to evaluate the Company’s results in the same way management does.

Management believes that supplementing GAAP disclosure with Non-GAAP disclosure provides investors with a more complete view of the Company’s operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the Company’s business. Further, to the extent that other companies use similar methods in calculating Non-GAAP measures, the provision of supplemental Non-GAAP information can allow for a comparison of the Company’s relative performance against other companies that also report Non-GAAP operating results.

Specifically, management is excluding the following items from its Non-GAAP earnings per share, as applicable, for the periods presented in the second quarter 2022 financial statements:

Share-Based Compensation Expenses. The Company’s compensation strategy includes the use of share-based compensation to attract and retain employees and executives. It is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than to motivate or reward operational performance for any particular period. Thus, share-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period.

Amortization of Purchased Intangibles. The Company views amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, customer lists and customer relationships, and acquired lease intangibles, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, one that is not typically affected by operations during any particular period.

Income Tax Effects and Adjustments. Beginning in first quarter 2018, the Company started using a fixed projected Non-GAAP tax rate in order to provide better consistency across the interim reporting periods by eliminating the effects of items such as changes in the tax valuation allowance and non-cash tax effects of acquired goodwill and amortization, since each of these can vary in size and frequency. This tax rate could be subject to change for a variety of reasons, such as significant changes in the acquisition activity or fundamental tax law changes in major jurisdictions where the Company operates. The Company re-evaluates this tax rate on an annual basis or when any significant events that may materially affect this rate occur. The Non-GAAP tax rate is currently projected to be approximately zero (0.0) percent.

Amortization of Capitalized Internal-Use Software, Acquisition-Related, and One-Time Expenses. The Company’s Non-GAAP financial measures exclude amortization of internal-use capitalized software costs and acquisition-related expenses as well as one-time expenses, such as material tax credits, material interest-expense credits, severance, recruitment, proforma adjustments of the impact of post-sale HCM restructuring, and relocation.

Use of Forward-Looking Statements

This press release contains forward-looking statements about our financial results, which may include expected GAAP and Non-GAAP financial and other operating and non-operating results, including revenue, net income, diluted earnings per share, operating cash flow growth, operating margin improvement, deferred revenue growth, expected revenue run rate, expected tax rates, share-based compensation expenses, amortization of purchased intangibles, amortization of debt discount and shares outstanding. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions, over many of which the Company has no control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the Company’s results could differ materially from the results expressed or implied by the forward-looking statements we make.

The risks and uncertainties referred to above include—but are not limited to—risks associated with possible fluctuations in the Company’s financial and operating results; the Company’s rate of growth and anticipated revenue run rate, including impact of the current environment, the spread of major epidemics (including COVID-19) and other related uncertainties such as government-imposed travel restrictions, interruptions to supply chains and extended shut down of businesses, political unrest, including the current issues between Russia and Ukraine, reductions in employment and an increase in business failures, specifically among our clients, the Company’s ability to convert deferred revenue and unbilled deferred revenue into revenue and cash flow, and ability to maintain continued growth of deferred revenue and unbilled deferred revenue; errors, interruptions or delays in the Company’s services or the Company’s Web hosting; breaches of the Company’s security measures; domestic regulatory developments, including changes to or applicability to our business of privacy and data securities laws, money transmitter laws and anti-money laundering laws; the financial and other impact of any previous and future acquisitions; the nature of the Company’s business model, including risks related to government contracts; the Company’s ability to continue to release, gain customer acceptance of and provide support for new and improved versions of the Company’s services; successful customer deployment and utilization of the Company’s existing and future services; changes in the Company’s sales cycle; competition; various financial aspects of the Company’s subscription model; unexpected increases in attrition or decreases in new business; the Company’s ability to realize benefits from strategic partnerships and strategic investments; the emerging markets in which the Company operates; the Company’s ability to hire, retain and motivate employees and manage the Company’s growth; changes in the Company’s customer base; technological developments; litigation and any related claims, negotiations and settlements, including with respect to intellectual property matters or industry-specific regulations; unanticipated changes in the Company’s effective tax rate; regulatory pressures on economic relief enacted as a result of the COVID-19 pandemic that change or cause different interpretations with respect to eligibility for such programs; factors affecting the Company’s term loan; fluctuations in the number of Company shares outstanding and the price of such shares; interest rates; collection of receivables; factors affecting the Company’s deferred tax assets and ability to value and utilize them; the potential negative impact of indirect tax exposure; the risks and expenses associated with the Company’s real estate and office facilities space; and general developments in the economy, financial markets, credit markets and the impact of current and future accounting pronouncements and other financial reporting standards. Further information on these and other factors that could affect the Company’s financial results is included in the reports on Forms 10-K, 10-Q and 8-K, and in other filings we make with the SEC from time to time. These documents are available on the SEC Filings section of the Investor Information section of the Company’s website at investor.asuresoftware.com. Asure Software assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

The forward-looking statements, including the financial guidance and 2022 outlook, contained herein represent the judgment of the Company as of the date of this press release, and the Company expressly disclaims any intent, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

© 2022 Asure Software, Inc. All rights reserved.

ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

 

June 30, 2022

 

December 31, 2021

 

 

ASSETS

(unaudited)

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

14,594

 

 

$

13,427

 

Accounts receivable, net

 

5,736

 

 

 

5,308

 

Inventory

 

289

 

 

 

246

 

Prepaid expenses and other current assets

 

10,112

 

 

 

13,475

 

Total current assets before funds held for clients

 

30,731

 

 

 

32,456

 

Funds held for clients

 

184,661

 

 

 

217,376

 

Total current assets

 

215,392

 

 

 

249,832

 

Property and equipment, net

 

9,076

 

 

 

8,945

 

Goodwill

 

86,011

 

 

 

86,011

 

Intangible assets, net

 

73,657

 

 

 

78,573

 

Operating lease assets, net

 

5,877

 

 

 

5,748

 

Other assets, net

 

4,590

 

 

 

4,136

 

Total assets

$

394,603

 

 

$

433,245

 

LIABILITIES AND STOCKHOLDERS EQUITY

 

 

 

Current liabilities:

 

 

 

Current portion of notes payable

$

1,947

 

 

$

1,907

 

Accounts payable

 

862

 

 

 

565

 

Accrued compensation and benefits

 

3,453

 

 

 

3,568

 

Operating lease liabilities, current

 

1,382

 

 

 

1,551

 

Other accrued liabilities

 

4,532

 

 

 

2,436

 

Contingent purchase consideration

 

2,299

 

 

 

1,905

 

Deferred revenue

 

2,038

 

 

 

3,750

 

Total current liabilities before client fund obligations

 

16,513

 

 

 

15,682

 

Client fund obligations

 

184,428

 

 

 

217,144

 

Total current liabilities

 

200,941

 

 

 

232,826

 

Long-term liabilities:

 

 

 

Deferred revenue

 

2,369

 

 

 

36

 

Deferred tax liability

 

1,669

 

 

 

1,595

 

Notes payable, net of current portion

 

33,908

 

 

 

33,120

 

Operating lease liabilities, noncurrent

 

5,000

 

 

 

4,746

 

Contingent purchase consideration

 

1,074

 

 

 

2,424

 

Other liabilities

 

102

 

 

 

258

 

Total long-term liabilities

 

44,122

 

 

 

42,179

 

Total liabilities

 

245,063

 

 

 

275,005

 

Commitments

 

 

 

Stockholders’ equity:

 

 

 

Preferred stock

 

 

 

 

 

Common stock

 

205

 

 

 

204

 

Treasury stock at cost

 

(5,017

)

 

 

(5,017

)

Additional paid-in capital

 

431,647

 

 

 

429,912

 

Accumulated deficit

 

(275,637

)

 

 

(266,760

)

Accumulated other comprehensive income

 

(1,658

)

 

 

(99

)

Total stockholders’ equity

 

149,540

 

 

 

158,240

 

Total liabilities and stockholders’ equity

 

394,603

 

 

 

433,245

 

 

 

 

 

 

 

 

 

ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(in thousands, except per share amounts)

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

(unaudited)

 

(unaudited)

Revenue:

 

 

 

 

 

 

 

Recurring

$

19,014

 

 

$

16,072

 

 

$

42,018

 

 

$

35,314

 

Professional services, hardware and other

 

1,286

 

 

 

1,096

 

 

 

2,615

 

 

 

1,656

 

Total revenue

 

20,300

 

 

 

17,168

 

 

 

44,633

 

 

 

36,970

 

Cost of Sales

 

8,039

 

 

 

7,223

 

 

 

16,908

 

 

 

14,533

 

Gross profit

 

12,261

 

 

 

9,945

 

 

 

27,725

 

 

 

22,437

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

4,589

 

 

 

3,622

 

 

 

9,486

 

 

 

7,233

 

General and administrative

 

8,696

 

 

 

6,821

 

 

 

16,181

 

 

 

13,319

 

Research and development

 

1,472

 

 

 

1,343

 

 

 

3,293

 

 

 

2,467

 

Amortization of intangible assets

 

3,352

 

 

 

2,528

 

 

 

6,784

 

 

 

5,056

 

Total operating expenses

 

18,109

 

 

 

14,314

 

 

 

35,744

 

 

 

28,075

 

Loss from operations

 

(5,848

)

 

 

(4,369

)

 

 

(8,019

)

 

 

(5,638

)

Interest expense, net

 

(1,085

)

 

 

(223

)

 

 

(1,901

)

 

 

(447

)

Other income, net

 

1,147

 

 

 

8,654

 

 

 

1,147

 

 

 

8,654

 

(Loss) Income from operations before income taxes

 

(5,786

)

 

 

4,062

 

 

 

(8,773

)

 

 

2,569

 

Income tax expense

 

74

 

 

 

298

 

 

 

104

 

 

 

403

 

Net (loss) income

 

(5,860

)

 

 

3,764

 

 

 

(8,877

)

 

 

2,166

 

Other comprehensive loss:

 

 

 

 

 

 

 

Unrealized loss on marketable securities

 

(1,754

)

 

 

(69

)

 

 

(1,063

)

 

 

(208

)

Comprehensive (loss) income

$

(7,614

)

 

$

3,695

 

 

$

(9,940

)

 

$

1,958

 

 

 

 

 

 

 

 

 

Basic and diluted (loss) earnings per share

 

 

 

 

 

 

 

Basic

$

(0.29

)

 

$

0.20

 

 

$

(0.44

)

 

$

0.11

 

Diluted

$

(0.29

)

 

$

0.20

 

 

$

(0.44

)

 

$

0.11

 

 

 

 

 

 

 

 

 

Weighted average basic and diluted shares

 

 

 

 

 

 

 

Basic

 

20,106

 

 

 

19,040

 

 

 

20,067

 

 

 

19,033

 

Diluted

 

20,106

 

 

 

19,203

 

 

 

20,067

 

 

 

19,198

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

(unaudited)

Cash flows from operating activities:

 

 

 

Net (loss) income

$

(8,877

)

 

$

2,166

 

Adjustments to reconcile (loss) income to net cash provided by (used in) operations:

 

 

 

Depreciation and amortization

 

9,363

 

 

 

7,905

 

Amortization of operating lease assets

 

868

 

 

 

830

 

Amortization of debt financing costs and discount

 

345

 

 

 

60

 

Net amortization of premiums and accretion of discounts on available-for-sale securities

 

205

 

 

 

31

 

Provision for doubtful accounts

 

198

 

 

 

1

 

Provision for deferred income taxes

 

75

 

 

 

358

 

Gain on extinguishment of debt

 

(180

)

 

 

(8,654

)

Net realized gains on sales of available-for-sale securities

 

(406

)

 

 

(269

)

Share-based compensation

 

1,544

 

 

 

1,340

 

Loss (gain) on disposals of fixed assets

 

1

 

 

 

(21

)

Change in fair value of contingent purchase consideration

 

(955

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(627

)

 

 

(129

)

Inventory

 

(51

)

 

 

107

 

Prepaid expenses and other assets

 

3,890

 

 

 

(190

)

Operating lease right-of-use assets

 

(997

)

 

 

(277

)

Accounts payable

 

280

 

 

 

(16

)

Accrued expenses and other long-term obligations

 

2,099

 

 

 

(1,440

)

Operating lease liabilities

 

85

 

 

 

(591

)

Deferred revenue

 

621

 

 

 

(3,109

)

Net cash provided by (used in) operating activities

 

7,481

 

 

 

(1,898

)

Cash flows from investing activities:

 

 

 

Acquisition of intangible asset

 

(2,039

)

 

 

 

Purchases of property and equipment

 

(306

)

 

 

(86

)

Software capitalization costs

 

(1,805

)

 

 

(2,311

)

Purchases of available-for-sale securities

 

(19,870

)

 

 

(236

)

Proceeds from sales and maturities of available-for-sale securities

 

2,450

 

 

 

7,813

 

Net cash (used in) provided by investing activities

 

(21,570

)

 

 

5,180

 

Cash flows from financing activities:

 

 

 

Payments of notes payable

 

 

 

 

(3,090

)

Payments of contingent purchase consideration

 

 

 

 

(1,784

)

Net proceeds from issuance of common stock

 

192

 

 

 

468

 

Net change in client fund obligations

 

(32,716

)

 

 

(113,251

)

Net cash used in financing activities

 

(32,524

)

 

 

(117,657

)

Net decrease in cash and cash equivalents

 

(46,613

)

 

 

(114,375

)

Cash and cash equivalents at beginning of period

 

198,743

 

 

 

324,985

 

Cash and cash equivalents at end of period

$

152,130

 

 

$

210,610

 

 

 

 

 

 

 

 

 

ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(in thousands)

 

Six Months Ended June 30,

 

 

2022

 

 

2021

 

(unaudited)

Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Condensed Consolidated Balance Sheets

Cash and cash equivalents

$

14,594

 

$

20,292

Restricted cash and restricted cash equivalents included in funds held for clients

 

137,536

 

 

190,318

Total cash, cash equivalents, restricted cash, and restricted cash equivalents

$

152,130

 

$

210,610

 

 

 

 

Supplemental information:

 

 

 

Cash paid for interest

$

1,435

 

$

449

Cash paid for income taxes

$

175

 

$

378

 

 

 

 

Non-cash investing and financing activities:

 

 

 

Notes payable issued for acquisitions

$

411

 

$

 

 

 

 

 

 

ASURE SOFTWARE, INC.
RECONCILIATION OF GAAP TO NON-GAAP
(in thousands, except per share amounts)

 

Q2-22

Q1-22

Q4-21

Q3-21

Q2-21

Q1-21

 

 

 

 

 

 

 

Total Revenue

$

20,300

 

$

24,333

 

$

21,113

 

$

17,981

 

$

17,168

 

$

19,802

 

 

 

 

 

 

 

 

GAAP to Non-GAAP Gross Profit

 

 

 

 

 

 

GAAP Gross Profit

$

12,261

 

$

15,464

 

$

13,259

 

$

10,868

 

$

9,945

 

$

12,492

 

GAAP Gross Margin

 

60.4

%

 

63.6

%

 

62.8

%

 

60.4

%

 

57.9

%

 

63.1

%

 

 

 

 

 

 

 

Share-based Compensation

 

35

 

 

36

 

 

46

 

 

45

 

 

38

 

 

23

 

Depreciation

 

815

 

 

857

 

 

685

 

 

710

 

 

973

 

 

762

 

Amortization - intangibles

 

296

 

 

296

 

 

354

 

 

379

 

 

379

 

 

379

 

Non-GAAP Gross Profit

$

13,407

 

$

16,653

 

$

14,344

 

$

12,002

 

$

11,335

 

$

13,656

 

Non-GAAP Gross Margin

 

66.0

%

 

68.4

%

 

67.9

%

 

66.7

%

 

66.0

%

 

69.0

%

 

 

 

 

 

 

 

GAAP Net income (loss) to Non-GAAP EBITDA

GAAP Net income (loss)

$

(5,860

)

$

(3,017

)

$

(4,301

)

$

5,328

 

$

3,764

 

$

(1,598

)

Interest expense, net

 

1,085

 

 

816

 

 

1,061

 

 

530

 

 

223

 

 

224

 

Taxes based on a 0% tax rate

 

74

 

 

30

 

 

139

 

 

260

 

 

298

 

 

105

 

Depreciation

 

969

 

 

1,027

 

 

846

 

 

872

 

 

1,136

 

 

956

 

Amortization - intangibles

 

3,649

 

 

3,729

 

 

3,711

 

 

2,912

 

 

2,907

 

 

2,907

 

EBITDA

$

(83

)

$

2,585

 

$

1,456

 

$

9,902

 

$

8,328

 

$

2,594

 

EBITDA Margin

(0.4)        %

 

10.6

%

 

6.9

%

 

55.1

%

 

48.5

%

 

13.1

%

 

 

 

 

 

 

 

Share-based Compensation

 

816

 

 

729

 

 

821

 

 

784

 

 

760

 

 

626

 

One Time Expenses

 

1,728

 

 

722

 

 

128

 

 

733

 

 

630

 

 

202

 

Other income, net

 

(1,147

)

 

 

 

 

 

(10,191

)

 

(8,654

)

 

 

Non-GAAP EBITDA

$

1,314

 

$

4,036

 

$

2,405

 

$

1,228

 

$

1,064

 

$

3,422

 

Non-GAAP EBITDA Margin

 

6.5

%

 

16.6

%

 

11.4

%

 

6.8

%

 

6.2

%

 

17.3

%

 

 

 

 

 

 

 

GAAP Net (loss) income to Non-GAAP Net (loss) income

GAAP Net (loss) income

$

(5,860

)

$

(3,017

)

$

(4,301

)

$

5,328

 

$

3,764

 

$

(1,598

)

Share Count

 

20,105

 

 

20,041

 

 

19,974

 

 

19,182

 

 

19,040

 

 

19,007

 

GAAP EPS

$

(0.29

)

$

(0.15

)

$

(0.22

)

$

0.28

 

$

0.20

 

$

(0.08

)

 

 

 

 

 

 

 

Share-based Compensation

 

816

 

 

729

 

 

821

 

 

784

 

 

760

 

 

626

 

Amortization - intangibles

 

3,649

 

 

3,729

 

 

3,711

 

 

2,912

 

 

2,907

 

 

2,907

 

One Time Expenses

 

1,728

 

 

722

 

 

128

 

 

733

 

 

854

 

 

202

 

Other income, net

 

(1,147

)

 

 

 

 

 

(10,191

)

 

(8,654

)

 

 

Taxes based on a 0% tax rate

 

74

 

 

30

 

 

139

 

 

260

 

 

298

 

 

105

 

Non-GAAP Net (loss) income

$

(740

)

$

2,193

 

$

498

 

$

(174

)

$

(71

)

$

2,242

 

Share Count

 

20,105

 

 

20,201

 

 

20,133

 

 

19,182

 

 

19,203

 

 

19,200

 

Non-GAAP EPS

$

(0.04

)

$

0.11

 

$

0.02

 

$

(0.01

)

$

0.00

 

$

0.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Investor Relations Contact

Randal Rudniski

Vice President, Financial Planning & Analysis

512-859-3562

randal.rudniski@asuresoftware.com