Asure Software, Inc.
(NASDAQ:ASUR)
, a leading provider of Human Capital
Management (HCM) and workplace management software, reported
results for the first quarter ended March 31, 2018.
First Quarter 2018 Key Financial
Highlights
- First Quarter Total Revenue of $19.3 Million, up 80%
Year-Over-Year
- Cloud Bookings were up 225% Year-Over-Year
- First Quarter Cloud Revenue of $16.4 Million, up 110%
Year-Over-Year
- Deferred Revenue of $13.2 Million, up 33% Year-Over-Year
- Unbilled Deferred Revenue of $14.1 Million, up 422%
Year-Over-Year
- Backlog of $27.3 Million, up 167% Year-Over-Year
|
|
|
Actual Results |
|
|
For the three months ended |
|
(in
millions except per share data and percentages) |
March 31, 2018 |
|
March 31, 2017 |
|
Change (%) |
Revenue |
$ |
19.3 |
|
$ |
10.7 |
|
80% |
|
|
|
|
|
|
GAAP Gross
Profit |
$ |
13.7 |
|
$ |
8.3 |
|
66% |
GAAP Gross
Margin |
71.2% |
|
77.3% |
|
-8% |
|
|
|
|
|
|
Non-GAAP Gross
Profit* |
$ |
14.0 |
|
$ |
8.4 |
|
67% |
Non-GAAP Gross
Margin* |
72.8% |
|
78.3% |
|
-7% |
|
|
|
|
|
|
GAAP Net
Loss |
$ |
(1.9 |
) |
$ |
(1.1 |
) |
82% |
Non-GAAP Net
Income* |
$ |
1.7 |
|
$ |
0.9 |
|
76% |
|
|
|
|
|
|
GAAP Net Loss
per Share |
$ |
(0.15 |
) |
$ |
(0.12 |
) |
25% |
Non-GAAP Net
Earnings per Share** |
$ |
0.13 |
|
$ |
0.11 |
|
18% |
|
|
|
|
|
|
Non-GAAP
EBITDA* |
$ |
3.8 |
|
$ |
1.7 |
|
121% |
Non-GAAP EBITDA
Margin* |
19.6% |
|
16.0% |
|
23% |
* Non-GAAP financial measures are reconciled to
GAAP in the tables set forth in this release.**
Historical non-GAAP Net Earnings Per Share adjusted for 0%
effective tax rate for comparison purposes |
Management Commentary
“The first quarter was a strong start to the
year,” said Pat Goepel, CEO. “From a financial standpoint, we
achieved strong results, including revenue, cloud bookings, cloud
revenue, and non-GAAP EBITDA. Total revenue in the quarter grew 80%
over the prior year. First quarter’s performance was driven by
continued strong execution and growth across the entire business,
but particularly in our cloud business, which grew 110% from the
year-ago quarter. In addition, cloud bookings for first quarter
were up 225% year-over-year. Clearly, our cloud offerings are
resonating in the market and new business activity has been
promising. As a result of the momentum we are seeing in the
marketplace we are raising our annual guidance for 2018.”
CFO Kelyn Brannon noted, “Our cloud strategy
continues to experience strong momentum. For the first time,
quarterly cloud revenue mix grew beyond the 80% threshold to reach
85% of total revenue in the first quarter. GAAP gross margin
declined to 71.2% from 77.3% in the year-ago quarter as a result of
revenue mix. As you recall, Asure acquired three resellers at the
beginning of the year. These resellers typically carry lower gross
margins, and represented a larger portion of our revenue mix in the
first quarter, which resulted in the overall gross margin
reduction. We ended the quarter with $25.8 million in cash.”
Goepel continued, “In addition to our solid
organic performance, we’ve also continued to execute on our
acquisition strategy of capitalizing on synergistic and accretive
acquisition opportunities. We closed three acquisitions since our
last earnings call, bringing the total number we’ve consummated
this year to six. These acquisitions enhance our scale, product,
customers, cross-sell opportunities, and prepare us for future
growth.”
“We remain focused on the key initiatives that
have and will continue to drive us forward: accelerating the
velocity of our cross-selling opportunities and scaling our
business further. What was our intermediate goal of reaching $100
million in revenue is now clearly within our line of sight. Asure‘s
industry-leading solutions and proven growth strategy have created
significant financial and operational momentum that will scale our
business over the long-term.”
Asure delivered the following results
for its first quarter 2018:
Cloud Bookings: First quarter
cloud bookings were up 225% year-over-year.
Revenue: Total first quarter
revenue was $19.3 million, an increase of 80% from $10.7 million in
the first quarter of 2017. Recurring revenue represented 91% of
total revenue, up from 83% in the year-ago quarter. Normalized
recurring revenue represented 82% of total revenue, up from 80% in
the year-ago quarter. Cloud revenue represented 85% of total, up
from 73% in the year-ago quarter.
Gross Profit: GAAP gross profit
was $13.7 million (71.2% margin), a 66% increase from $8.3 million
(77.3% margin) in the first quarter of 2017. Non-GAAP gross profit*
was $14.0 million (72.8% margin), up 67% from $8.4 million (78.3%
margin) in the year-ago quarter.
Non-GAAP EBITDA*: Non-GAAP
EBITDA was $3.8 million (19.6% margin), an increase of 121% from
$1.7M (16.0% margin) in the first quarter of 2017.
Earnings (Loss) per Share: GAAP
loss per share was $(0.15) compared with $(0.12) in the first
quarter of 2017. Non-GAAP earnings per share* were $0.13, an
increase of 18% from $0.11 in the year-ago quarter.
Deferred Revenue: Deferred
revenue on the balance sheet as of March 31, 2018 was $13.2
million, an increase of 33% year-over-year. Unbilled deferred
revenue, representing business that is contracted but unbilled and
off balance sheet, ended the first quarter at $14.1 million, up
422% year-over-year. Backlog, which is the sum of deferred revenue
and unbilled deferred revenue, was $27.3 million, up 167%
year-over-year.
Recent Business Highlights
New Wins: Asure secured new
wins across a range of industry verticals including Basingstoke,
Deane Borough Council, and Douglas Fruit among others. Asure also
experienced continued expansion with Apple, Genpact, KPMG, P&G
and PwC and others.
Three Acquisitions in January
2018: Successfully closed three strategic acquisitions in
January 2018: TelePayroll Inc., a Southern California-based
provider of HR, payroll and employee benefits services; Pay Systems
of America, Inc., a provider of HR, payroll and employee benefits
services; and Savers Administrative Services, Inc., a certified
third-party administrator of payroll and HR services. All three
companies are current resellers of Asure's leading Human Resource
Information System platform, Evolution.
Credit Facility Amendment:
Amended credit facility, increasing the term loans and amount of
available financing to $175 million. Term loans under the
facility are $105 million, which includes approximately $36.75
million of new debt. The facility also includes a $5 million
revolver. An additional $65 million will be available to support
continued growth and future acquisitions.
Three Acquisitions in April
2018: Successfully closed three strategic acquisitions in
April 2018: Wells Fargo Business Payroll Services’ Evolution HCM
client portfolio and Austin HR, located in Austin, Texas, a
provider of outsourced human resources (HR), consulting, and
professional services around payroll and employee benefits on the
Evolution platform. Asure also acquired OccupEye Limited, a
provider of sensor-based solutions that allow organizations across
the world to streamline operations, create efficiencies, enhance
productivity and analyze employee engagement, which generates cost
savings and creates a more employee-focused
workplace. OccupEye’s technology combined with Asure’s
existing workplace management software HCM services, allows Asure
to expand its technology solutions while adding its own
complementary and proprietary sensor hardware and analytics.
Nominations and
Awards: Pat Goepel, CEO of Asure Software is a
finalist for the Entrepreneur Of The Year® 2018 Award in the
Central Texas Region. The awards program recognizes entrepreneurs
who are excelling in areas such as innovation, financial
performance and personal commitment to their businesses and
communities. Also, Asure Software’s Human Capital Management
platform was named the winner of a Bronze Stevie® Award in the Best
New Product or Service of the Year category in The 16th Annual
American Business
Awards. Fiscal
2018 Financial GuidanceAsure management increased revenue
guidance for fiscal 2018 ending December 31, 2018 and maintained
non-GAAP EBITDA guidance. Note that guidance for both revenue and
non-GAAP EBITDA were previously increased on April 9, 2018.
|
New
Range |
Prior
Range |
Revenue |
$90.0
million to $93.0 million |
$89.0 million to $92.0
million |
Non-GAAP EBITDA* |
$20.0
million to $23.0 million |
$20.0 million to $23.0
million |
Additional 2018 Guidance:
Interest
expense |
$9.0
million to $9.5 million |
Depreciation |
$1.7
million to $2.3 million |
Amortization |
$7.7
million to $8.5 million |
Stock
compensation expense |
$0.7
million to $0.8 million |
Acquisition costs and other one-time expenses |
$2.3
million to $3.3 million |
Non-GAAP
Effective Tax Rate |
0.0% |
Conference Call DetailsAsure
management will host a conference call today (Wednesday, May 9,
2018) at 4:30 p.m. Eastern time (3:30 p.m. Central time) to discuss
these financial results and outlook. Asure CEO Pat Goepel and
CFO Kelyn Brannon will host the presentation, followed by a
question and answer period.
U.S. dial-in: 877-853-5636International dial-in:
631-291-4544Conference ID: 8967146
The conference call will be broadcasted live and
available for replay via the investor section of the company's
website.
Non-GAAP Financial Measures:
This press release includes information about non-GAAP diluted
earnings per share, non-GAAP tax rates, non-GAAP net income,
non-GAAP gross profit, non-GAAP EBITDA, and non-GAAP free cash flow
(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 EBITDA differs from GAAP net loss in
that it excludes things such as interest, tax, depreciation,
amortization, stock compensation, and one-time expenses. Asure
Software is unable to predict with reasonable certainty the
ultimate outcome of these exclusions without unreasonable effort.
Therefore, Asure Software has not provided guidance for GAAP net
loss or a reconciliation of the foregoing forward-looking Non-GAAP
EBITDA guidance to GAAP net loss.
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 first quarter 2018
financial statements and for its non-GAAP estimates for 2018:
Stock-Based 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
is 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 for fiscal 2018 is
currently projected to be approximately 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,
and relocation.
About Asure
Software Asure Software, Inc. (NASDAQ:ASUR),
headquartered in Austin, Texas, offers intuitive and innovative
solutions designed to help organizations of all sizes and
complexities build companies of the future. Our cloud platforms
enable more than 100,000 clients direct and indirect, worldwide to
better manage their people and space in a mobile, digital,
multi-generational, and global workplace. Asure Software's
offerings include a fully-integrated HCM platform, flexible
benefits and compliance administration, HR consulting, and time and
labor management as well as a full suite of workspace management
solutions for conference room scheduling, desk sharing programs,
and real estate optimization. For more information, please visit
www.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.
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 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; domestic
and international regulatory developments, including the adoption
of new privacy 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.
© 2018 Asure Software, Inc. All rights
reserved.
ASURE SOFTWARE,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(Amounts in thousands)
|
|
|
|
|
|
|
March 31, 2018 |
|
|
December 31,2017 |
|
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and
cash equivalents |
$ |
25,808 |
|
|
$ |
27,792 |
|
Accounts
and note receivable, net of allowance for doubtful accounts of $465
and $425 at March 31, 2018 and December 31, 2017,
respectively |
|
13,881 |
|
|
|
13,361 |
|
Inventory |
|
719 |
|
|
|
509 |
|
Prepaid
expenses and other current assets |
|
3,418 |
|
|
|
2,588 |
|
Total current assets before funds held for
clients |
|
43,826 |
|
|
|
44,250 |
|
Funds
held for clients |
|
66,773 |
|
|
|
42,328 |
|
Total current assets |
|
110,599 |
|
|
|
86,578 |
|
Property and equipment,
net |
|
6,308 |
|
|
|
5,217 |
|
Goodwill |
|
90,998 |
|
|
|
77,348 |
|
Intangible assets,
net |
|
48,665 |
|
|
|
33,554 |
|
Other assets |
|
15,234 |
|
|
|
614 |
|
Total assets |
$ |
271,804 |
|
|
$ |
203,311 |
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Current
portion of notes payable |
$ |
7,816 |
|
|
$ |
8,895 |
|
Revolving
line of credit |
|
2,379 |
|
|
|
- |
|
Accounts
payable |
|
2,743 |
|
|
|
1,912 |
|
Accrued
compensation and benefits |
|
3,236 |
|
|
|
2,477 |
|
Other
accrued liabilities |
|
1,832 |
|
|
|
862 |
|
Deferred
revenue |
|
12,152 |
|
|
|
13,078 |
|
Total current liabilities before client fund
obligations |
|
30,158 |
|
|
|
27,224 |
|
Client
fund obligations |
|
66,773 |
|
|
|
42,328 |
|
Total current liabilities |
|
96,931 |
|
|
|
69,552 |
|
Long-term
liabilities: |
|
|
|
|
|
|
|
Deferred
revenue |
|
1,074 |
|
|
|
1,125 |
|
Notes
payable, net of current portion and debt issuance cost |
|
106,772 |
|
|
|
66,973 |
|
Other
liabilities |
|
2,354 |
|
|
|
1,887 |
|
Total long-term liabilities |
|
110,200 |
|
|
|
69,985 |
|
Total liabilities |
|
207,131 |
|
|
|
139,537 |
|
Commitments
(Note 13) |
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
|
Preferred stock, $.01
par value; 1,500 shares authorized; none issued or outstanding |
|
- |
|
|
|
- |
|
Common stock, $.01 par
value; 22,000 and 11,000 shares authorized; 12,968 and 12,876
shares issued, 12,584 and 8,517 shares outstanding at March 31,
2018 and December 31, 2017, respectively |
|
130 |
|
|
|
129 |
|
Treasury
stock at cost, 384 shares at March 31, 2018 and December 31,
2017 |
|
(5,017 |
) |
|
|
(5,017 |
) |
Additional paid-in capital |
|
347,640 |
|
|
|
346,322 |
|
Accumulated deficit |
|
(278,020 |
) |
|
|
(277,597 |
) |
Accumulated other comprehensive income (loss) |
|
(60 |
) |
|
|
(63 |
) |
Total stockholders’ equity |
|
64,673 |
|
|
|
63,774 |
|
Total liabilities and stockholders’ equity |
$ |
271,804 |
|
|
$ |
203,311 |
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)(Amounts in thousands, except
share and per share data)(Unaudited)
|
|
|
|
FOR THETHREE MONTHS
ENDEDMARCH 31, |
|
|
2018 |
|
|
2017 |
|
Revenue: |
|
|
|
|
|
Cloud
revenue |
$ |
16,437 |
|
|
$ |
7,836 |
|
Hardware
revenue |
|
719 |
|
|
|
1,088 |
|
Maintenance and support revenue |
|
1,173 |
|
|
|
1,102 |
|
Professional services revenue |
|
975 |
|
|
|
701 |
|
Total revenue |
|
19,304 |
|
|
|
10,727 |
|
|
|
|
|
|
|
|
|
Cost of
Sales |
|
5,557 |
|
|
|
2,438 |
|
Gross profit |
|
13,747 |
|
|
|
8,289 |
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
Selling,
general and administrative |
|
10,709 |
|
|
|
7,043 |
|
Research
and development |
|
1,423 |
|
|
|
769 |
|
Amortization of intangible assets |
|
1,597 |
|
|
|
847 |
|
Total operating expenses |
|
13,729 |
|
|
|
8,659 |
|
|
|
|
|
|
|
|
|
Gain (Loss)
from operations |
|
18 |
|
|
|
(370 |
) |
|
|
|
|
|
|
|
|
Other income
(loss) |
|
|
|
|
|
|
|
Interest
expense and other |
|
(1,760 |
) |
|
|
(547 |
) |
Total other loss, net |
|
(1,760 |
) |
|
|
(547 |
) |
|
|
|
|
|
|
|
|
Loss from
operations before income taxes |
|
(1,742 |
) |
|
|
(917 |
) |
Income
tax provision |
|
(183 |
) |
|
|
(142 |
) |
Net
loss |
$ |
(1,925 |
) |
|
$ |
(1,059 |
) |
Other
comprehensive income (loss): |
|
|
|
|
|
|
|
Foreign
currency translation gain (loss) |
|
3 |
|
|
|
(34 |
) |
Other
comprehensive loss |
$ |
(1,922 |
) |
|
$ |
(1,093 |
) |
|
|
|
|
|
|
|
|
Basic and
diluted net loss per share |
|
|
|
|
|
|
|
Basic |
$ |
(0.15 |
) |
|
$ |
(0.12 |
) |
Diluted |
$ |
(0.15 |
) |
|
$ |
(0.12 |
) |
Weighted
average basic and diluted shares |
|
|
|
|
|
|
|
Basic |
|
12,583,000 |
|
|
|
8,628,000 |
|
Diluted |
|
12,583,000 |
|
|
|
8,628,000 |
|
|
|
|
|
|
|
|
|
ASURE SOFTWARE,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(Amounts in thousands)(Unaudited)
|
|
|
|
FOR THETHREE MONTHS
ENDEDMARCH 31, |
|
|
2018 |
|
|
2017 |
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
Net
loss |
$ |
(1,925 |
) |
|
$ |
(1,059 |
) |
Adjustments to reconcile net loss to net cash provided by (used in)
operations: |
|
|
|
|
|
|
Depreciation and amortization |
|
2,264 |
|
|
|
1,180 |
|
Provision
for doubtful accounts |
|
76 |
|
|
|
- |
|
Share-based compensation |
|
194 |
|
|
|
54 |
|
Other |
|
- |
|
|
|
- |
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
Accounts
receivable |
|
(535 |
) |
|
|
(366 |
) |
Inventory |
|
(229 |
) |
|
|
(43 |
) |
Prepaid
expenses and other assets |
|
(2,182 |
) |
|
|
(1,004 |
) |
Accounts
payable |
|
666 |
|
|
|
598 |
|
Accrued
expenses and other long-term obligations |
|
2,040 |
|
|
|
(29 |
) |
Deferred
revenue |
|
(1,265 |
) |
|
|
(516 |
) |
Net cash
provided by (used in) operating activities |
|
(896 |
) |
|
|
(1,185 |
) |
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
Acquisitions net of cash acquired |
|
(37,253 |
) |
|
|
(8,076 |
) |
Purchases
of property and equipment |
|
(566 |
) |
|
|
(21 |
) |
Software
capitalization costs |
|
(828 |
) |
|
|
- |
|
Net
change in funds held for clients |
|
576 |
|
|
|
1,540 |
|
Net cash
provided by (used in) investing activities |
|
(38,071 |
) |
|
|
(6,557 |
) |
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
Proceeds
from notes payable |
|
36,750 |
|
|
|
5,000 |
|
Proceeds
from line of credit |
|
2,379 |
|
|
|
- |
|
Payments
on notes payable |
|
- |
|
|
|
(6,069 |
) |
Debt
financing fees |
|
(1,577 |
) |
|
|
(100 |
) |
Payments
on capital leases |
|
- |
|
|
|
(46 |
) |
Net
proceeds from issuance of common stock |
|
- |
|
|
|
- |
|
Net
change in client fund obligations |
|
(576 |
) |
|
|
(1,485 |
) |
Net cash
provided by (used in) financing activities |
|
36,976 |
|
|
|
(2,700 |
) |
|
|
|
|
|
|
|
Effect of
foreign exchange rates |
|
7 |
|
|
|
(37 |
) |
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents |
|
(1,984 |
) |
|
|
(10,479 |
) |
Cash and cash
equivalents at beginning of period |
|
27,792 |
|
|
|
12,767 |
|
Cash and cash
equivalents at end of period |
$ |
25,808 |
|
|
$ |
2,288 |
|
|
|
|
|
|
|
|
SUPPLEMENTAL
INFORMATION: |
|
|
|
|
|
|
Cash paid for: |
|
|
|
|
|
|
Interest |
$ |
- |
|
|
$ |
411 |
|
Income taxes |
|
- |
|
|
|
- |
|
Non-cash Investing and
Financing Activities: |
|
|
|
|
|
|
Subordinated notes
payable –acquisitions |
|
- |
|
|
|
2,090 |
|
Equity issued in
connection with acquisitions |
|
- |
|
|
|
946 |
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to
Non-GAAP
|
|
|
|
|
|
(In thousands except
per share data) |
1Q17 |
2Q17 |
3Q17 |
4Q17 |
1Q18 |
Reconciliation
from GAAP gross profit to non-GAAP gross profit: |
|
|
|
|
|
GAAP Gross profit |
$8,289 |
$10,053 |
$12,125 |
$11,358 |
$13,747 |
Stock
compensation |
$2 |
$4 |
$0 |
$0 |
$4 |
Amortization |
$106 |
$106 |
$134 |
$134 |
$297 |
Non-GAAP gross
profit |
$8,397 |
$10,163 |
$12,235 |
$11,492 |
$14,048 |
Non-GAAP
gross margin |
78.3% |
78.9% |
78.8% |
75.1% |
72.8% |
|
|
|
|
|
|
(In thousands except
per share data) |
1Q17 |
2Q17 |
3Q17 |
4Q17 |
1Q18 |
Reconciliation
from net income to non-GAAP EBITDA: |
|
|
|
|
|
GAAP Net income
(loss) |
($1,059) |
($1,839) |
($1,280) |
($1,545) |
($1,925) |
Stock
compensation |
$54 |
$171 |
$139 |
$230 |
$194 |
Amortization |
$953 |
$1,148 |
$1,449 |
$1,380 |
$1,895 |
Acquisition costs and other one-time expenses |
$850 |
$1,233 |
$1,583 |
$2,073 |
$1,308 |
Taxes
based on a 0% tax rate |
$142 |
$141 |
$85 |
($272) |
$184 |
Interest
Expense One-Time Credit |
$0 |
$0 |
$0 |
($259) |
$0 |
Depreciation |
$227 |
$224 |
$342 |
$337 |
$370 |
Other
Income & Expenses |
$547 |
$1,088 |
$1,643 |
$1,347 |
$1,760 |
Non-GAAP
EBITDA |
$1,714 |
$2,166 |
$3,961 |
$3,291 |
$3,786 |
Non-GAAP
EBITDA margin |
16.0% |
16.8% |
25.5% |
21.5% |
19.6% |
|
|
|
|
|
|
(In thousands except
per share data) |
1Q17 |
2Q17 |
3Q17 |
4Q17 |
1Q18 |
Reconciliation from GAAP net income (loss) to non-GAAP net
income |
|
|
|
|
GAAP Net income
(loss) |
($1,059) |
($1,839) |
($1,280) |
($1,545) |
($1,925) |
Stock
compensation |
$54 |
$171 |
$139 |
$230 |
$194 |
Amortization |
$953 |
$1,148 |
$1,449 |
$1,380 |
$1,895 |
Acquisition costs and other one-time expenses |
$850 |
$1,233 |
$1,583 |
$2,073 |
$1,308 |
Taxes
based on a 0% tax rate |
$142 |
$141 |
$85 |
($272) |
$184 |
Interest
Expense One-Time Credit |
$0 |
$0 |
$0 |
($259) |
$0 |
Non-GAAP net
income |
$940 |
$854 |
$1,976 |
$1,607 |
$1,656 |
|
|
|
|
|
|
(In thousands except
per share data) |
1Q17 |
2Q17 |
3Q17 |
4Q17 |
1Q18 |
Calculation of
non-GAAP net income per share |
|
|
|
|
|
Non-GAAP net
income |
$940 |
$854 |
$1,976 |
$1,607 |
$1,656 |
Pro forma diluted
weighted-average number of common shares |
8,839 |
10,212 |
12,599 |
12,659 |
12,846 |
Non-GAAP
EPS |
$0.11 |
$0.08 |
$0.16 |
$0.13 |
$0.13 |
Non-GAAP EPS
(previously reported) |
$0.09 |
$0.07 |
$0.15 |
$0.17 |
$0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
Investor Relations
Contact:Carolyn Bass, PartnerMarket Street
Partners415-445-3232cbass@marketstreetpartners.com
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