Asure Software(ASUR) - 2019 Q1 - Quarterly Report

Revenue and Profit - Total revenue for the three months ended March 31, 2019, was $26,760, an increase of $7,456, or 38.6%, from $19,304 for the same period in 2018[74] - Recurring revenue increased by $6,076, or 34.7%, to $23,561 for the three months ended March 31, 2019, compared to $17,485 in 2018[73] - Gross profit for the three months ended March 31, 2019, was $18,062, an increase of $4,315, or 31.4%, from $13,747 in 2018, with a gross margin of 67.5%[77] Expenses - Selling, general and administrative expenses for the three months ended March 31, 2019, were $12,766, an increase of $2,057, or 19.2%, from $10,709 in 2018, representing 47.7% of revenue[79] - Research and development expenses for the three months ended March 31, 2019, were $2,351, an increase of $928, or 65.2%, from $1,423 in 2018, accounting for 8.8% of revenue[81] - Amortization expenses for the three months ended March 31, 2019, were $2,781, an increase of $1,184, or 74.1%, from $1,597 in 2018, representing 10.4% of revenue[85] - Other expense for the three months ended March 31, 2019, was $2,754, an increase of $994, or 56.5%, from $1,760 in 2018, accounting for 10.3% of revenue[86] Net Loss - The company incurred a net loss of $2,894, or $(0.19) per share, during the three months ended March 31, 2019, compared to a net loss of $1,925, or $(0.15) per share, in 2018[90] Cash Flow and Liquidity - Net cash provided by operating activities was $4,247 for the three months ended March 31, 2019, compared to a net cash used of $896 in the same period of 2018[92] - Net cash provided by investing activities was $3,313 for the three months ended March 31, 2019, primarily due to the acquisition of Payroll Maxx, while net cash used in investing activities was $38,071 in 2018 due to multiple acquisitions[93] - Net cash used in financing activities was $6,402 for the three months ended March 31, 2019, with $8,283 of indebtedness incurred[94] - The principal sources of liquidity as of March 31, 2019, included approximately $16,591 of cash and cash equivalents and $4,717 available for borrowing under a revolver[95] - The company expects to generate sufficient cash for operational needs, including debt payments, for at least the next twelve months[96] - As of March 31, 2019, the company had $124,134 outstanding under its Second Restated Credit Agreement with Wells Fargo[97] Working Capital - Working capital as of March 31, 2019, was $7,493, a decrease from $11,443 as of December 31, 2018[89] - As of March 31, 2019, the company had working capital of $7,493, a decrease of $3,950 from $11,443 at December 31, 2018[92] Strategic Focus - The company is focused on growing existing software operations and seeking strategic acquisitions as part of its growth strategy[96] - There were no off-balance sheet arrangements or commitments and contingencies as of March 31, 2019[98] - There have been no material changes to market risk exposure from those disclosed in the 2018 Annual Report[100]