• Asure Announces Fourth Quarter and Full Year 2020 Results

    المصدر: Nasdaq GlobeNewswire / 11 مارس 2021 16:10:01   America/New_York

    AUSTIN, Texas, March 11, 2021 (GLOBE NEWSWIRE) -- Asure (NASDAQ: ASUR), a leading provider of cloud-based Human Capital Management (HCM) software solutions, reported results for the fourth quarter and full year ended December 31, 2020.

    “Our increased focus on small business is paying off as new customer additions exceeded losses with broader adoption of multiple solutions, driving revenue growth in the fourth quarter. Although the COVID-19 pandemic continues to impact our top line, resulting in unfavorable year-over-year comparisons, revenue, non-GAAP HCM EBITDA, and non-GAAP HCM EPS all increased from third-quarter 2020. The high-caliber sales representatives we added in the second half of 2020 helped us achieve encouraging results during a difficult economic landscape. We are particularly pleased with the growth in number of customers added and are cautiously optimistic that gradually improving unemployment rates will serve as a tailwind, leading to increased revenue over time. Furthermore, we hope to generate positive organic growth in 2021 and have not changed our strategic goal of targeting 10% organic and 10% acquired growth. As an essential small business, Asure remains committed to helping our more than 70,000 indirect and 10,000 direct small-business customers grow in this challenging environment,” said Chairman and CEO Pat Goepel.

    Fourth Quarter 2020 Key HCM Highlights

    • HCM revenue of $16.4 Million, up 3% sequentially from third-quarter 2020
    • Non-GAAP HCM EBITDA of $1.1 Million, up 13% sequentially from third-quarter 2020
    • Non-GAAP HCM EPS of $0.00, up three cents sequentially from third-quarter 2020
    • Small-business HCM bookings increased more than 100% year-over-year
    • Total HCM bookings increased 13% year-over-year
    • COVID-19 Resource Center and webinars continues to benefit tens of thousands of small-businesses

    Fourth Quarter and Full Year 2020 Financial Summary

     For the three months ended
    December 31    		 For the year ended
    December 31
    In thousands, except per share data2020 2019 Change (%) 2020 2019 Change (%)
    REVENUE           
    GAAP Revenue (HCM)16,430  17,612  (6.7)% 65,507  73,150  (10.4)%
                
    GROSS PROFIT           
    GAAP Gross Profit (HCM)9,806  8,175  20.0% 38,093  43,314  (12.1)%
    GAAP Gross Margin (HCM)59.7% 46.4% 28.6% 58.2% 59.2% (1.8)%
                
    Non-GAAP HCM Gross Profit10,911  9,642  13.2% 42,477  47,389  (10.4)%
    Non-GAAP HCM Gross Margin66.4% 54.7% 21.3% 64.8% 64.8% 0.1%
                
    EARNINGS           
    GAAP Net Income (Loss)(5,842) (26,932) NM  (16,311) (42,291) NM 
    Non-GAAP HCM Net Income (Loss)(69) (2,534) NM  3,260  392  NM 
    GAAP Net Income (Loss) per share(0.36) (1.72) NM  (1.03) (2.73) NM 
    Non-GAAP HCM Net Income (Loss) per share0.00  (0.16) NM  0.20  0.03  NM 
                 
    EBITDA            
    Non-GAAP HCM EBITDA1,143  (335) NM  7,850  12,976  (39.5)%
    Non-GAAP HCM EBITDA Margin7.0% (1.9)% NM  12.0% 17.7% (32.4)%
                     

    _________
    Notes:

    • Loss from continuing operations. With the sale of the Workspace Management division on December 2, 2019, Asure has classified this business line as discontinued operations for the fiscal year 2019. As a result, Workspace Management is not included in GAAP revenue, GAAP gross profit, GAAP gross margin, and GAAP net income from continuing operations for the periods presented above. While discontinued operations are included in GAAP net income, it is not included in GAAP net income from continuing operations.
    • Non-GAAP financial measures are reconciled to GAAP in the tables set forth in this release.
    • Historical non-GAAP HCM Net Earnings Per Share from Continuing Operations adjusted for 0% effective tax rate for comparison purposes.
    • NM indicates Not Meaningful Information

    Financial Commentary

    “While our view on the overall U.S. economy’s impact on small business remains tempered, fourth quarter’s sequential improvements in financial results were encouraging. Asure has a clear strategy for growth and we are focused on its execution. Prior to filing today’s earnings release, we filed S-3 and S-4 registrations, which are not yet effective. While we have no immediate plans to raise capital under the universal shelf or to utilize the acquisition shelf for any particular transaction, these registration statements, once effective, will benefit the company and our stockholders by allowing us to quickly and opportunistically consummate strategic acquisitions," said CFO John Pence.

    Asure delivered the following results (HCM only) for its fourth quarter ended December 31, 2020:

    Revenue: Total revenue for the fourth quarter of 2020 was $16.4 million, a decrease of 7% from $17.6 million in the year-ago quarter. Revenue mix for the quarter was comprised primarily of recurring revenue, which represented 97% of total revenue with professional services, hardware and other revenue representing the remaining 3%.

    Gross Profit: GAAP gross profit for the fourth quarter of 2020 was $9.8 million (59.7% margin), an increase from $8.2 million (46.4% margin) in the year-ago period. Non-GAAP HCM gross profit for the third quarter of 2020 was $10.9 million (66.4% margin), an increase from $9.6 million (54.7% margin) in the year-ago period.

    Earnings (Loss) per Share: GAAP loss per share were $(0.36), compared with $(1.72) in the year-ago period. Non-GAAP HCM earnings per share were $0.00, compared with $(0.16) in the year-ago period.

    Non-GAAP HCM EBITDA: Non-GAAP HCM EBITDA was $1.1 million (7.0% margin), representing an increase from $(0.3) million (-1.9% margin) in the year-ago period.

    Fourth-Quarter Highlights

    Closed Reseller Acquisition. On December 31, 2020, Asure purchased a small reseller focused on the northeast market.

    Key Leadership Additions. Chief of Staff Todd Waletzki and Senior Vice President and General Manager, Tax & Compliance Yasmine Rodriguez each come to Asure with impressive track records and HCM expertise.

    Public Offering of Common Stock. In December 2020, we received gross proceeds of approximately $21.7 million before deducting underwriting discounts and offering expenses from the sale of approximately 3.0 million shares of common stock.

    Recent Business Events

    S-3 and S-4 Registrations. Prior to filing today’s earnings release, Asure filed a universal shelf Registration Statement on Form S-3 and an acquisition shelf Registration Statement on Form S-4 with the Securities and Exchange Commission, neither of which have yet been declared effective by the Securities and Exchange Commission. The Company has no immediate plans to raise capital under the shelf Form S-3 or to utilize the shelf Form S-4 for an acquisition transaction and we cannot sell any securities or accept any offer to buy securities under these registration statements until they become effective.

    Once declared effective, the universal shelf on Form S-3 will permit Asure to sell, in one or more public offerings, shares of newly issued common stock, shares of newly issued preferred stock, warrants or debt securities, or any combination of such securities, for proceeds in an aggregate amount of up to $150 million.

    The acquisition shelf registration statement on Form S-4, once declared effective, will enable Asure to issue up to 12.5 million shares of its common stock in one or more acquisition transactions that the Company may make from time to time. These transactions may include the acquisition of assets, businesses or securities, whether by purchase, merger or any other form of business combination.

    Special Note from Chairman and CEO

    “It is with a heavy heart that we learned about the recent passing of our former board member and friend Charlie Lathrop. Our thoughts and prayers are with Charlie’s family,” said Mr. Goepel.

    Conference Call Details

    Asure management will host a conference call today, Thursday, March 11, at 4:30pm Eastern time (3:30pm Central time). Asure CEO Pat Goepel and CFO John Pence will host the conference call, followed by a question and answer session.

    U.S. dial-in: (877) 853-5636
    International dial-in: (631) 291-4544
    Conference ID: 2037337

    The conference call will be broadcast live and available for replay via the investor relations section of the company's website.

    *Non-GAAP Financial Measures. This press release includes information about non-GAAP HCM Net Earnings (Loss), non-GAAP HCM Net Earnings (Loss) per share, non-GAAP EPS, non-GAAP tax rates, non-GAAP HCM gross profit, and non-GAAP HCM EBITDA (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 HCM EBITDA differs from GAAP net loss excludes items such as interest, tax, depreciation, amortization, stock compensation, and one-time expenses. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

    Non-GAAP HCM earnings (loss) per share differs from GAAP earnings per share in that it assumes a 0% non-GAAP tax rate, uses diluted share counts, and excludes items such as amortization, stock compensation, and one-time expenses.

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

    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 fourth quarter 2020 financial statements:

    Quarterly and annual GAAP income statements for 2019 were recast as if the Workspace Management business, which was sold on December 2, 2019. Further, the Workspace Management GAAP income statements were recast into income from discontinued operations.

    Stock-Based Compensation Expenses. The company's compensation strategy includes the use of stock-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, stock-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.

    About Asure

    Asure (NASDAQ: ASUR) sees Human Capital Management (HCM) through the lens of entrepreneurs and executives with an owner’s mentality. We help more than 80,000 small and mid-sized businesses develop their “Human Capital” to get to the next level, stay compliant, and allocate their time, money and technology toward growth. Asure HCM solution includes Asure Payroll & Tax, Asure HR, and Asure Time & Attendance. Our Asure HR Services offering ranges from online compliance tools to a fully outsourced HR department. Visit us at asuresoftware.com.

    "Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: 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, stock-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. 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.

    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, stock-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. 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 Coronavirus) and other related uncertainties such as government-imposed travel restrictions, interruptions to supply chains and extended shut down of businesses, 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; foreign currency exchange rates; errors, interruptions or delays in the company's services or the company's Web hosting; breaches of the company's security measures; changes in the forgiveness provisions for loans under the Paycheck Protection Program; domestic and international 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; unique aspects of entering or expanding in international markets, including the compliance with United States export control laws, 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; factors affecting the company's outstanding convertible notes, term loan, and revolving credit facility; fluctuations in the number of company shares outstanding and the price of such shares; collection of receivables; interest rates; 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 Securities and Exchange Commission 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.

    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 Securities and Exchange Commission 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.

    This press release refers to registration statements on Form S-3 and Form S-4 that have been filed with the Securities and Exchange Commission but have not yet become effective. Securities may not be sold nor may offers to buy be accepted prior the time the registration statements become effective.

    © 2021 Asure Software, Inc. All rights reserved.

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

     December 31,
    2020    		 December 31,
    2019
    Assets   
    Current assets:   
    Cash and cash equivalents$28,577  $28,826 
    Accounts and note receivable, net of allowance for doubtful accounts of $771 and $904 at December 31, 2020 and December 31, 2019, respectively4,852  4,808 
    Inventory449  656 
    Prepaid expenses and other current assets3,284  8,551 
    Total current assets before funds held for clients37,162  42,841 
    Funds held for clients321,069  126,625 
    Total current assets358,231  169,466 
    Property and equipment, net8,281  7,867 
    Goodwill73,958  68,697 
    Intangible assets, net64,552  63,850 
    Operating lease assets, net6,450  6,963 
    Other assets3,951  3,224 
    Total assets$515,423  $320,067 
    Liabilities and stockholders’ equity   
    Current liabilities:   
    Current portion of notes payable$12,310  $2,571 
    Accounts payable1,288  1,736 
    Accrued compensation and benefits2,916  3,424 
    Operating lease liabilities, current1,833  1,575 
    Other accrued liabilities1,380  6,556 
    Contingent purchase obligation3,880  — 
    Deferred revenue5,838  5,500 
    Total current liabilities before client fund obligations29,445  21,362 
    Client fund obligations320,578  130,250 
    Total current liabilities350,023  151,612 
    Long-term liabilities:   
    Deferred revenue111  322 
    Deferred tax liability888  336 
    Notes payable, net of current portion and debt issuance cost12,225  24,142 
    Operating lease liabilities, noncurrent5,366  5,937 
    Other liabilities1,157  139 
    Total long-term liabilities19,747  30,876 
    Total liabilities369,770  182,488 
    Commitments and Contingencies (Notes 2 and 15)   
    Stockholders’ equity:   
    Preferred stock, $.01 par value; 1,500 shares authorized; none issued or outstanding—  — 
    Common stock, $.01 par value; 44,000 and 22,000 shares authorized; 19,354 and 16,098 shares issued, 18,970 and 15,714 shares outstanding at December 31, 2020 and December 31, 2019, respectively193  161 
    Treasury stock at cost, 384 shares at December 31, 2020 and December 31, 2019(5,017) (5,017)
    Additional paid-in capital419,827  396,102 
    Accumulated deficit(269,954) (253,642)
    Accumulated other comprehensive loss604  (25)
    Total stockholders’ equity145,653  137,579 
    Total liabilities and stockholders’ equity$515,423  $320,067 
            

    ASURE SOFTWARE, INC.
    CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
    (Amounts in thousands, except share and per share data)

     Years Ended December 31
     2020 2019
    Revenue:   
    Recurring$63,315  $70,066 
    Professional services, hardware and other2,192  3,084 
    Total revenue65,507  73,150 
    Cost of sales27,414  29,836 
    Gross profit38,093  43,314 
    Operating expenses   
    Selling, general and administrative36,340  41,535 
    Research and development5,959  5,351 
    Amortization of intangible assets9,547  11,765 
    Impairment of goodwill—  35,060 
    Total operating expenses51,846  93,711 
    Loss from operations(13,753) (50,397)
    Interest expense and other, net(2,221) (16,005)
    Loss from continuing operations before income taxes(15,974) (66,402)
    Income tax expense (benefit)337  (24,111)
    Loss from continuing operations(16,311) (42,291)
    Discontinued operations (Note 12)   
    Gain on disposal of discontinued operations—  94,293 
    Income from operations of discontinued operations—  3,498 
    Income tax expense—  (25,499)
    Gain on discontinued operations, net of taxes—  72,292 
    Net income (loss)(16,311) 30,001 
    Other comprehensive income (loss):   
    Change in unrealized gain on available for sale securities629  6 
    Foreign currency translation loss—  (597)
    Comprehensive income (loss)$(15,682) $29,410 
        
    Basic and diluted loss per share from continuing operations   
    Basic$(1.03) $(2.73)
    Diluted$(1.03) $(2.73)
    Basic and diluted net income (loss) per share   
    Basic$(1.03) $1.93 
    Diluted$(1.03) $1.93 
    Weighted average basic and diluted shares   
    Basic15,910,000  15,511,000 
    Diluted15,910,000  15,511,000 
          

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

     Years Ended December 31
     2020 2019
    Cash flows from operating activities:   
    Net income (loss)$(16,311) $30,001 
    Adjustments to reconcile net income (loss) to net cash used in operations:   
    Depreciation and amortization16,169  18,165 
    Impairment of goodwill—  35,060 
    Amortization of debt financing costs and discount395  1,462 
    Provision for doubtful accounts372  446 
    Provision (benefit) from deferred income taxes551  (1,193)
    Loss (gain) on extinguishment of debt(138) 2,808 
    Gain on sale of discontinued operations—  (94,293)
    Share-based compensation2,365  2,268 
    Loss on disposals of fixed assets59  62 
    Changes in operating assets and liabilities:   
    Accounts receivable1,118  (1,446)
    Inventory11  (1,581)
    Prepaid expenses and other assets(911) (3,113)
    Accounts payable(448) (3,174)
    Accrued expenses and other long-term obligations(4,596) 5,649 
    Operating lease liabilities(1,606) (900)
    Deferred revenue128  5,662 
    Net cash used in operating activities(1,707) (4,117)
    Cash flows from investing activities:   
    Proceeds from sale of discontinued operations—  118,206 
    Acquisitions, net of cash acquired(13,141) (7,443)
    Purchases of property and equipment(857) (1,017)
    Software capitalization costs(2,780) (3,824)
    Net change in funds held for clients(184,356) (20,290)
    Net cash provided by (used in) investing activities(201,134) 85,632 
    Cash flows from financing activities:   
    Proceeds from notes payable8,856  28,636 
    Payments of notes payable(12,234) (118,421)
    Proceeds from revolving line of credit—  10,231 
    Payments of revolving line of credit—  (10,312)
    Debt financing fees(245) (1,539)
    Payments of finance leases—  (102)
    Net proceeds from issuance of common stock21,392  820 
    Net change in client fund obligations184,823  22,669 
    Net cash provided by (used in) financing activities202,592  (68,018)
    Effect of foreign exchange rates—  (115)
    Net increase (decrease) in cash and cash equivalents(249) 13,382 
    Cash and cash equivalents at beginning of period28,826  15,444 
    Cash and cash equivalents at end of period$28,577  $28,826 
            

    Reconciliation of GAAP to Non-GAAP
    (In thousands, except for per shared data)

     Q1Q2Q3Q4Total Q1Q2Q3Q4Total
      2019  2019  2019  2019  2019   2020  2020  2020  2020  2020 
    Total Revenue*$20,410 $17,274 $17,854 $17,612 $73,150  $18,947 $14,115 $16,015 $16,430 $65,507 
                
    GAAP to Non-GAAP HCM Gross Profit           
    GAAP HCM Gross Profit$14,156 $10,215 $10,768 $8,175 $43,314  $11,107 $8,107 $9,073 $9,806 $38,093 
    GAAP HCM Gross Margin 69.4% 59.1% 60.3% 46.4% 59.2%  58.6% 57.4% 56.7% 59.7% 58.2%
    Stock Compensation 12  8  13  18  51   22  21  33  24  100 
    Depreciation 315  310  268  142  1,035   495  537  787  703  2,522 
    Amortization - intangibles 360  360  417  857  1,994   431  397  397  379  1,604 
    One Time HW Reserve / Other 0  0  0  321  321   0  0  0  0  0 
    One Time Product Royalties 189  188  168  129  674   91  67  0  0  158 
    Non-GAAP HCM Gross Profit$15,032 $11,081 $11,634 $9,642 $47,389  $12,146 $9,130 $10,290 $10,911 $42,477 
    Non-GAAP HCM Gross Margin 73.7% 64.1% 65.2% 54.7% 64.8%  64.1% 64.7% 64.3% 66.4% 64.8%
                
    GAAP NI to Non-GAAP HCM EBITDA           
    GAAP Net Income (Loss)$(3,437)$(6,298)$(5,624)$(26,932)$(42,291) $(1,767)$(3,944)$(4,759)$(5,842)$(16,311)
    Interest Expense & Other, Net 2,714  3,069  2,712  7,510  16,005   235  164  408  279  1,086 
    Taxes based on a 0% tax rate 255  396  (130) (24,632) (24,111)  19  377  (325) 266  337 
    Depreciation 1,215  376  385  394  2,370   735  793  1,043  934  3,504 
    Amortization - intangibles 2,778  2,763  2,739  5,479  13,759   2,780  2,746  2,821  2,804  11,151 
    EBITDA$3,525 $306 $82 $(38,181)$(34,268) $2,002 $136 $(812)$(1,559)$(232)
    EBITDA Margin 17.3% 1.8% 0.5% -216.8% -46.8%  10.6% 1.0% -5.1% -9.5% -0.4%
    Stock compensation 611  392  577  688  2,268   438  588  707  631  2,365 
    Acquisition costs/other 1x expenses 1,942  1,903  1,510  1,277  6,632   1,845  685  1,117  2,071  5,718 
    Impairment 0  0  0  35,060  35,060   0  0  0  0  0 
    Restructuring lookback 821  821  821  821  3,284   0  0  0  0  0 
    Non-GAAP HCM EBITDA$6,899 $3,422 $2,990 $(335)$12,976  $4,285 $1,409 $1,012 $1,143 $7,850 
    Non-GAAP HCM EBITDA Margin 33.8% 19.8% 16.7% -1.9% 17.7%  22.6% 10.0% 6.3% 7.0% 12.0%
                
    GAAP NI to Non-GAAP HCM NI           
    GAAP Net Income (Loss)$(3,437)$(6,298)$(5,624)$(26,932)$(42,291) $(1,767)$(3,944)$(4,759)$(5,842)$(16,311)
    Share Count 15,405  15,444  15,565  15,627  15,511   15,727  15,779  15,873  16,258  15,910 
    GAAP EPS$(0.22)$(0.41)$(0.36)$(1.72)$(2.73) $(0.11)$(0.25)$(0.30)$(0.36)$(1.03)
    Stock compensation 611  392  577  688  2,268   438  588  707  631  2,365 
    Amortization - intangibles 2,778  2,763  2,739  5,479  13,759   2,780  2,746  2,821  2,804  11,151 
    Acquisition costs/other 1x expenses 1,942  1,903  1,510  1,277  6,632   1,845  685  1,117  2,071  5,718 
    Taxes based on a 0% tax rate 255  396  (130) (24,632) (24,111)  19  377  (325) 266  337 
    Impairment 0  0  0  35,060  35,060   0  0  0  0  0 
    Loss on extinguishment of debt 0  0  0  5,705  5,705   0  0  0  0  0 
    Restructuring lookback 821  821  821  821  3,284   0  0  0  0  0 
    1x Tax Penalty related to Prior periods 0  86  0  0  86   0  0  0  0  0 
    Non-GAAP HCM Net Income (Loss)$2,970 $63 $(107)$(2,534)$392  $3,315 $452 $(439)$(69)$3,260 
    Share Count 15,436  15,502  15,565  15,627  15,567   15,914  15,899  15,873  16,258  16,013 
    Non-GAAP EPS$0.19 $0.00 $(0.01)$(0.16)$0.03  $0.21 $0.03 $(0.03)$0.00 $0.20 
                                    

    *For comparison purposes, excluding non-strategic customer contracts, revenue would have been $19,258 in 1Q19, $16,245 in 2Q19, $16,830 in 3Q19, and $16,628 in 4Q19, totaling $68,961 for the full year 2019.

    Investor Relations Contact:
    Jeff Houston
    Corporate Development
    (512) 437-2349
    Jeff.Houston@asuresoftware.com


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