 AUSTIN, Texas, Aug. 10, 2020 GLOBE NEWSWIRE -- Asure NASDAQ: ASUR, a leading provider of cloud-based Human Capital Management HCM software solutions, reported results for the second quarter ended June 30, 2020. We are encouraged by our strong HCM business bookings despite the obvious uncertainty COVD-19 has created for small businesses. Asure continues to make progress on our strategic initiatives, including product innovation and go-to-market investments while accelerating expense reductions after the Workspace business sale. We will never stop providing our customers with the service, technology and support they need to survive and thrive in the crisis, said Mr. Goepel.Second Quarter 2020 Key HCM Highlights HCM revenue of 14.1 Million, above consensus of 13.9 Million Non-GAAP EPS of 0.03, above consensus of 0.04 HCM bookings up 21 year-over-year COVID-19 Resource Center and webinars benefited more than 10,000 small-businesses attendees since launch Workspace Management transition services agreement completed on time in JuneThree Months Ended June 30 Financial Summary For the three months ended June 30 In thousands, except per share data2020 2019 Change REVENUE GAAP Revenue HCM14,115 17,274 -18.5 GROSS PROFIT GAAP Gross Profit HCM8,107 10,215 -20.6 GAAP Gross Margin HCM 57.4 59.1 -2.9 Non-GAAP HCM Gross Profit9,129 11,081 -17.6 Non-GAAP HCM Gross Margin 64.7 64.1 0.9 EARNINGS GAAP Net Income Loss3,944 6,298 NM Non-GAAP Net Income451 828 NM GAAP Net Income Loss per share0.25 0.41 NM Non-GAAP Net Earnings per share0.03 0.05 NM EBITDA Non-GAAP HCM EBITDA1,409 3,558 -60.4 Non-GAAP HCM EBITDA Margin 10.0 20.6 -51.5 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 Net Earnings Per Share from Continuing Operations adjusted for 0 effective tax rate for comparison purposes. NM indicates Not Meaningful Information Financial Commentary Small business have experienced unprecedented economic headwinds due to the COVID-19 pandemic, which adversely impacted Asures second quarter financial performance. While our key business metrics have improved since the end of May as businesses began reopening and employees began returning to work, it is unclear whether this trend will continue given the uncertain macroeconomic environment. Nevertheless, as an essential small business, Asure remains committed to helping our 50,000 indirect and 10,000 direct small-business customers grow in this challenging environment, said Mr. Goepel.Year-over-year declines in revenue, gross profit and adjusted EBITDA were primarily driven by lower check volumes, due to fewer customers processing payrolls as well as fewer employees paid as a result of COVID-related shutdowns. Still, we remain confident about our financial and competitive position and look forward to a gradual return to more normal operating conditions, said CFO Kelyn Brannon.Asure delivered the following results HCM only for its second quarter ended June 30, 2020:Revenue: Total revenue for the second quarter of 2020 was 14.1 million, a decrease of 18.5 from 17.3 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 second quarter of 2020 was 8.1 million 57.4 margin, a decline from 10.2 million 59.1 margin in the year-ago period. Non-GAAP HCM gross profit for the second quarter of 2020 was 9.1 million 64.7 margin, a decline from 11.1 million 64.1 margin in the second quarter of 2019.Earnings Loss per Share: GAAP earnings per share were 0.25, compared with 0.41 in the prior year quarter. Non-GAAP HCM earnings per share were 0.03, as compared with 0.05 in the year-ago quarter.Non-GAAP HCM EBITDA: Non-GAAP HCM EBITDA was 1.4 million 10.0 margin, representing a decline from 3.6 million 20.6 margin in the second quarter of 2019.Recent Business HighlightsAnnounces Changes to Senior Leadership and Board of Directors Changes. These changes are intended to deepen industry expertise and drive growth. These changes come as the company has successfully completed transition services related to its Workspace business sale. Details of these actions are provided in separate press release.COVID-19 Resource Center. This initiative continues to help SMBs survive the pandemic and rebound in the aftermath of the pandemic. These resources include disaster-proof payroll with paycards, free emergency HR services, stimulus package for businesses questions answered, and multiple free educational webinars.Added to Russell 3000 Index. Effective June 8, 2020 Asure was added as a member of the broad-market Russell 3000 Index as part of the 2020 Russell US Indexes reconstitution. Membership remains in place for one year and means automatic inclusion on the small-cap Russell 2000 Index as well as the appropriate growth and value style indexes. Impact of the COVID-19 Pandemic During the second quarter of 2020, we continued to take proactive measures to ensure the safety of our employees and shore up business continuity processes in light of the increasing risks from COVID-19. We believe that these actions will ensure that our small-business customers continue to receive the same level of service they have come to expect. We continue to actively monitor the situation and may take further actions that alter our business operations as may be required by federal, state or local authorities or that we determine are in the best interests of our employees and clients. We have insights into the shorter-term effects of the COVID-19 pandemic, but it is not currently possible to estimate the full impact that the crisis could continue to have on our business and results of operations.Macro Observations. The COVID-19 pandemic has resulted in significant economic and operational headwinds, including higher unemployment and out-of-business rates as well as lower same-store sales, customer fund balances, and interest rates. These factors negatively affected our recurring revenue in the second quarter of 2020, and we expect that our recurring revenue in future periods will continue to be negatively impacted by shelter-in-place orders forcing many of our customers to close as well as the phasing in of rehiring.Our People. We maintained our work-from-home arrangements implemented in March for the safety of our employees, while simultaneously ensuring our clients continued to receive the same level of service they have come to expect. More than 90 of our workforce continue to a work-from-home model.Small-Business Customers. We launched the COVID-19 Response Center in the second quarter for customer and non-customer small businesses and increased customer engagement. We also redirected development resources to integrate new legislation in our products, including CARES-specific reports designed to help small businesses apply for and receive PPP loan forgiveness.Financials. While experienced a significant impact to dollar retention, our new bookings grew 21 year-over-year in second quarter 2020. Also during the quarter, we implemented significant client outreach and expense reductions.Conference Call DetailsAsure management will host a conference call today, Monday, August 10, 2020, at 4:30pm Eastern time 3:30pm Central time. Asure CEO Pat Goepel and CFO Kelyn Brannon 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: 6255756The conference call will be broadcast live and available for replay via the investor relations section of the companys 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, and non-GAAP 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 companys consolidated financial statements prepared in accordance with GAAP.Non-GAAP EBITDA differs from GAAP net loss in that it 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. Therefore, Asure 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 companys performance. 