Park City Group Increases Net Income 71% for First Quarter of Fiscal 2022
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.
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.”
“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.
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.
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.
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)
Conference ID: 10161813
Replay Dial-In Numbers:
Toll Free: 1-844-512-2921
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.
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)
Receivables, net of allowance for doubtful accounts of $252,278 and $234,693 at September 30, 2021 and June 30, 2021, respectively
Contract asset – unbilled current portion
Prepaid expense and other current assets
Total Current Assets
Property and equipment, net
Deposits and other assets
Prepaid expense – less current portion
Contract asset – unbilled long-term portion
Operating lease – right-of-use asset
Capitalized software costs, net
Total Other Assets
Liabilities and Stockholders' Equity
Contract liability - deferred revenue
Lines of credit
Operating lease liability - current
Total current liabilities
Operating lease liability – less current portion
Commitments and contingencies
Stockholders ’ equity:
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;
Series B-1 Preferred, 550,000 shares authorized; 212,402 shares issued and outstanding at September 30, 2021 and June 30, 2021, respectively
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
Additional paid-in capital
Total stockholders ’ equity
Total liabilities and stockholders ’ equity
PARK CITY GROUP, INC.
Consolidated Condensed Statements ofOperations (Unaudited)
Three Months Ended
Cost of revenue and product support
Sales and marketing
General and administrative
Depreciation and amortization
Total operating expense
Income from operations
Other income (expense):
Other gain (loss)
Unrealized gain (loss) on short term investments
Income before income taxes
(Provision) for income taxes:
Dividends on preferred stock
Net income applicable to Common Stockholders
Weighted average shares, basic
Weighted average shares, diluted
Basic income per share
Diluted income per share
PARKCITY GROUP, INC.
Consolidated Condensed Statements ofCash Flows (Unaudited)
Three Months Ended
Cash flows from operating activities:
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization
Amortization of operating right-of-use asset
Stock compensation expense
Bad debt expense
Loss on sale of property and equipment
Gain on disposal of assets
(Increase) decrease in:
Long-term receivables, prepaid and other assets
(Decrease) increase in:
Operating lease liability
Net cashprovided by operating activities
Cash flows from investing activities:
Purchase of property and equipment
Sale of property and equipment
Net cash provided by (used in)investing activities
Cash flows financing activities:
Net decrease in lines of credit
Common Stock buy-back
Proceeds from employee stock purchase plan
Proceeds from issuance of notes payable
Payments on notes payable and capital leases
Net cash used in financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Supplemental disclosure of cash flow information:
Cash paid for income taxes
Cash paid for interest
Cash paid for operating leases
Supplemental disclosure of non-cash investing and financing activities:
Common Stock to pay accrued liabilities
Dividends accrued on preferred stock
View source version on businesswire.com:https://www.businesswire.com/news/home/20211115005964/en/
CONTACT: Investor Relations:
John Merrill, CFO
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