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Press release content from Business Wire. The AP news staff was not involved in its creation.

Park City Group Increases Net Income 71% for First Quarter of Fiscal 2022

November 15, 2021 GMT

SALT LAKE CITY--(BUSINESS WIRE)--Nov 15, 2021--

Park City Group, Inc. (NASDAQ: PCYG), the parent company of ReposiTrak, Inc., which operates a B2B ecommerce, compliance, and supply chain platform that largely partners with grocery retailers, wholesalers, and their suppliers, to accelerate sales, control risk, improve supply chain efficiencies, and source hard-to-find items, today announced financial results for the first quarter of fiscal 2022, the period ended September 30, 2021.

First Quarter Financial Highlights:

  • Total revenue decreased 13% to $4.6 million from $5.2 million due to planned conversion of transactional to recurring MarketPlace revenue.
  • Recurring SaaS revenue increased 10% to $4.4 million.
  • Total operating expenses decreased 26% to $3.4 million from $4.6 million due to lower Marketplace costs and lower overall SG&A expenses.
  • Net Income margin doubled from 11% to 21%.
  • GAAP net income increased 71% to $947,000 vs. net income of $555,000 in the prior year.
  • Net income to common shareholders increased 96% to $800,000, vs. $408,000.
  • EPS doubled to $0.04 vs. $0.02 in the prior year first quarter.
  • Cash from operations of $1.1 million.
  • The Company repaid its $6 million revolving line of credit and has no debt.

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Randall K. Fields, Chairman and CEO of Park City Group commented, “This quarter proceeded according to plan. Our continuing goal is to grow our recurring revenue by 10-20% per year, convert Marketplace transactional revenue into SaaS and prepare for our traceability initiative.”

Mr. Fields continued, “We delivered 10% recurring revenue growth, doubled our net margins, and delivered a 71% increase in net income, simultaneously paying off $6 million of debt. As a result, we have no debt, more than $20 million in cash, and a growing base of recurring revenue that more than covers our fixed cash costs for almost two years. Our compliance business and supply chain businesses are both growing well, and as the industry adjusts to the current environment, we see opportunity in the balance of the current fiscal year. More importantly, we are laser-focused across the business in preparing ourselves and our customers for the change in Food Safety Rules that will likely begin next year.”

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“Interest in our track and trace capabilities is extremely high and increasing, likely leading to more than 10 partner trials, well ahead of our plan,” continued Mr. Fields. “We expect even more interest in this solution as the FDA continues to advance the traceability rule included in the Food Safety Modernization Act (FSMA), and we fully expect to be in position for rapid onboarding as the FDA mandates are announced. This represents a very significant and customer-required opportunity; we will be ready for the emergence of Traceability as a crisis for the industry and ultimately our customers– a crisis we are uniquely equipped to remedy.”

First Quarter Financial Results ( three months ended September 30, 2021 vs. three months ended September 30, 2020):

Total revenue decreased 13% to $4.6 million as compared to $5.2 million due largely to a nearly $1 million decrease in MarketPlace revenue. This was partially offset by a 10% increase in core recurring SaaS revenue. Total operating expense decreased 26% to $3.4 million due to a decrease in cost of goods related to the lower MarketPlace revenue. GAAP net income was $947,000, versus $555,000. GAAP net income to common shareholders was $800,000, or $0.04 per diluted share, compared to $408,000, or $0.02 per diluted share.

Share Repurchases:

In the first quarter, the Company repurchased 7,600 shares at an average price of $5.43 for a total of $41,276. To date, the Company has repurchased 718,394 shares at an average price of $5.58 for a total of $4.0 million. The Company has $11.9 million remaining on the $12 million buyback authorization.

Balance Sheet:

The Company had $20.4 million in cash and cash equivalents at September 30, 2021, compared to $24.1 million at June 30, 2021. During the quarter, Park City fully paid off its working line of credit in the amount of $6.0 million.

Conference Call:

The Company will host a conference call at 4:15 p.m. Eastern today to discuss the Company’s results. The conference call will also be webcast and will be available via the investor relations section of the Company’s website, www.parkcitygroup.com.

Participant Dial-In Numbers:
Date: Monday November 15, 2021
Time: 4:15 p.m. ET (1:15 p.m. PT)
Toll-Free: 1-844-826-3035
Toll/International 1-412-317-5195
Conference ID: 10161813

Replay Dial-In Numbers:
Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Start: Monday November 15, 2021, 7:15 p.m. ET
Replay Expiry: Wednesday December 15, 2021, 11:59 p.m. ET
Replay Pin Number: 10161813

About Park City Group:

Park City Group, Inc. (NASDAQ:PCYG), the parent company of ReposiTrak, Inc., a compliance, supply chain, and e-commerce platform that enables retailers, wholesalers, and their suppliers, to accelerate sales, control risk, and improve supply chain efficiencies. More information is available at www.parkcitygroup.com and www.repositrak.com.

Specific disclosure relating to Park City Group, including management’s analysis of results from operations and financial condition, are contained in the Company’s annual report on Form 10-K for the fiscal year ended June 30, 2020 and other reports filed with the Securities and Exchange Commission. Investors are encouraged to read and consider such disclosure and analysis contained in the Company’s Form 10-K and other reports, including the risk factors contained in the Form 10-K.

Forward-Looking Statement

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “if”, “should” and “will” and similar expressions as they relate to Park City Group, Inc. (“Park City Group”) are intended to identify such forward-looking statements. Park City Group may from time to time update these publicly announced projections, but it is not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. For a discussion of such risks and uncertainties, see “Risk Factors” in Park City’s annual report on Form 10-K, its quarterly report on Form 10-Q, and its other reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.

PARK CITY GROUP, INC.

Consolidated Condensed Balance Sheets (Unaudited)

 

Assets

 

September 30,

2021

 

 

June 30,

2021

 

Current Assets

 

 

 

 

 

 

 

 

Cash

 

$

20,431,158

 

 

$

24,070,322

 

Receivables, net of allowance for doubtful accounts of $252,278 and $234,693 at September 30, 2021 and June 30, 2021, respectively

 

 

3,997,676

 

 

 

3,891,699

 

Contract asset – unbilled current portion

 

 

984,155

 

 

 

1,248,936

 

Prepaid expense and other current assets

 

 

684,310

 

 

 

490,817

 

Total Current Assets

 

 

26,097,299

 

 

 

29,701,774

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

1,017,202

 

 

 

2,589,194

 

 

 

 

 

 

 

 

 

 

Other Assets:

 

 

 

 

 

 

 

 

Deposits and other assets

 

 

22,414

 

 

 

22,414

 

Prepaid expense – less current portion

 

 

34,907

 

 

 

47,987

 

Contract asset – unbilled long-term portion

 

 

291,833

 

 

 

408,925

 

Operating lease – right-of-use asset

 

 

673,319

 

 

 

695,371

 

Customer relationships

 

 

492,750

 

 

 

525,600

 

Goodwill

 

 

20,883,886

 

 

 

20,883,886

 

Capitalized software costs, net

 

 

157,420

 

 

 

171,732

 

 

 

 

 

 

 

 

 

 

Total Other Assets

 

 

22,556,529

 

 

 

22,755,915

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

49,671,030

 

 

$

55,046,883

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

371,825

 

 

$

467,194

 

Accrued liabilities

 

 

738,283

 

 

 

988,092

 

Contract liability - deferred revenue

 

 

1,758,710

 

 

 

1,755,341

 

Lines of credit

 

 

-

 

 

 

6,000,000

 

Operating lease liability - current

 

 

91,297

 

 

 

90,156

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

 

2,960,115

 

 

 

9,300,783

 

 

 

 

 

 

 

 

 

 

Long-term liabilities

 

 

 

 

 

 

 

 

Operating lease liability – less current portion

 

 

582,022

 

 

 

605,214

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

3,542,137

 

 

 

9,905,997

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholdersequity:

 

 

 

 

 

 

 

 

Preferred Stock; $0.01 par value, 30,000,000 shares authorized;

 

 

 

 

 

 

 

 

Series B Preferred, 700,000 shares authorized; 625,375 shares issued and outstanding at September 30, 2021 and June 30, 2021;

 

 

6,254

 

 

 

6,254

 

Series B-1 Preferred, 550,000 shares authorized; 212,402 shares issued and outstanding at September 30, 2021 and June 30, 2021, respectively

 

 

2,124

 

 

 

2,124

 

Common Stock, $0.01 par value, 50,000,000 shares authorized; 19,387,552 and 19,351,935 issued and outstanding at September 30, 2021 and June 30, 2021, respectively

 

 

193,878

 

 

 

193,522

 

Additional paid-in capital

 

 

74,486,369

 

 

 

74,298,924

 

Accumulated deficit

 

 

(28,559,732

)

 

 

(29,359,938

)

 

 

 

 

 

 

 

 

 

Total stockholdersequity

 

 

46,128,893

 

 

 

45,140,886

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholdersequity

 

$

49,671,030

 

 

$

55,046,883

 

PARK CITY GROUP, INC.

Consolidated Condensed Statements ofOperations (Unaudited)

 

 

 

Three Months Ended

September 30,

 

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

4,559,677

 

 

$

5,225,402

 

 

 

 

 

 

 

 

 

 

Operating expense:

 

 

 

 

 

 

 

 

Cost of revenue and product support

 

 

846,487

 

 

 

1,980,957

 

Sales and marketing

 

 

1,188,893

 

 

 

1,283,041

 

General and administrative

 

 

1,096,656

 

 

 

1,081,925

 

Depreciation and amortization

 

 

261,164

 

 

 

248,500

 

 

 

 

 

 

 

 

 

 

Total operating expense

 

 

3,393,200

 

 

 

4,594,423

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

1,166,477

 

 

 

630,979

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest income

 

 

55,156

 

 

 

34,341

 

Interest expense

 

 

(2,898

)

 

 

(70,545

)

Other gain (loss)

 

 

(83,081

)

 

 

-

 

Unrealized gain (loss) on short term investments

 

 

(149,291

)

 

 

(16,263

)

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

986,363

 

 

 

578,512

 

 

 

 

 

 

 

 

 

 

(Provision) for income taxes:

 

 

(39,546

)

 

 

(23,686

)

Net income

 

 

946,817

 

 

 

554,826

 

 

 

 

 

 

 

 

 

 

Dividends on preferred stock

 

 

(146,611

)

 

 

(146,611

)

 

 

 

 

 

 

 

 

 

Net income applicable to Common Stockholders

 

$

800,206

 

 

$

408,215

 

 

 

 

 

 

 

 

 

 

Weighted average shares, basic

 

 

19,383,000

 

 

 

19,489,000

 

Weighted average shares, diluted

 

 

19,669,000

 

 

 

19,642,000

 

Basic income per share

 

$

0.04

 

 

$

0.02

 

Diluted income per share

 

$

0.04

 

 

$

0.02

 

PARKCITY GROUP, INC.

Consolidated Condensed Statements ofCash Flows (Unaudited)

 

 

 

Three Months Ended

September 30,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

946,817

 

 

$

554,826

 

Adjustments to reconcile net income to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

261,164

 

 

 

248,500

 

Amortization of operating right-of-use asset

 

 

22,051

 

 

 

20,965

 

Stock compensation expense

 

 

88,246

 

 

 

93,432

 

Bad debt expense

 

 

125,000

 

 

 

125,000

 

Loss on sale of property and equipment

 

 

107,820

 

 

 

-

 

Gain on disposal of assets

 

 

(24,737

)

 

 

-

 

(Increase) decrease in:

 

 

 

 

 

 

 

 

Accounts receivables

 

 

(258,029

)

 

 

(1,154,077

)

Long-term receivables, prepaid and other assets

 

 

129,335

 

 

 

691,245

 

(Decrease) increase in:

 

 

 

 

 

 

 

 

Accounts payable

 

 

(95,369

)

 

 

57,515

 

Accrued liabilities

 

 

(165,555

)

 

 

501,063

 

Operating lease liability

 

 

(22,051

)

 

 

(20,965

)

Deferred revenue

 

 

3,369

 

 

 

105,844

 

Net cashprovided by operating activities

 

 

1,118,061

 

 

 

1,223,348

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

-

 

 

 

(12,925

)

Sale of property and equipment

 

 

1,374,085

 

 

 

-

 

Net cash provided by (used in)investing activities

 

 

1,374,085

 

 

 

(12,925

)

 

 

 

 

 

 

 

 

 

Cash flows financing activities:

 

 

 

 

 

 

 

 

Net decrease in lines of credit

 

 

(6,000,000

)

 

 

-

 

Common Stock buy-back

 

 

(41,276

)

 

 

-

 

Proceeds from employee stock purchase plan

 

 

56,577

 

 

 

50,328

 

Dividends paid

 

 

(146,611

)

 

 

(146,611

)

Proceeds from issuance of notes payable

 

 

-

 

 

 

620,000

 

Payments on notes payable and capital leases

 

 

-

 

 

 

(920,754

)

Net cash used in financing activities

 

 

(6,131,310

)

 

 

(397,037

)

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

(3,639,164

)

 

 

813,386

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

 

24,070,322

 

 

 

20,345,330

 

Cash and cash equivalents at end of period

 

$

20,431,158

 

 

$

21,158,716

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Cash paid for income taxes

 

$

172,342

 

 

$

25,899

 

Cash paid for interest

 

$

2,898

 

 

$

70,545

 

Cash paid for operating leases

 

$

30,600

 

 

$

30,600

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Common Stock to pay accrued liabilities

 

$

172,500

 

 

$

5,405

 

Dividends accrued on preferred stock

 

$

146,611

 

 

$

146,611

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20211115005964/en/

CONTACT: Investor Relations:

John Merrill, CFO

investor-relations@parkcitygroup.com

Or

FNK IR

Rob Fink

646.809.4048

rob@fnkir.com

KEYWORD: UTAH UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: PACKAGING LOGISTICS/SUPPLY CHAIN MANAGEMENT MANUFACTURING TRANSPORT MOBILE/WIRELESS SOFTWARE OFFICE PRODUCTS NETWORKS RESTAURANT/BAR INTERNET WINE & SPIRITS TOBACCO SUPERMARKET DATA MANAGEMENT SPECIALTY CONVENIENCE STORE TECHNOLOGY FOOD/BEVERAGE FASHION COSMETICS RETAIL HOME GOODS SUPPLY CHAIN MANAGEMENT ONLINE RETAIL LUXURY DISCOUNT/VARIETY DEPARTMENT STORES

SOURCE: Park City Group, Inc.

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PUB: 11/15/2021 04:06 PM/DISC: 11/15/2021 04:06 PM

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