Park City Group, Inc. (NASDAQ: PCYG), parent company of
ReposiTrak, the world's largest food traceability and regulatory
compliance network, built upon its proven inventory management and
out-of-stock reduction SaaS platform, today announced financial
results for the third quarter of fiscal 2023 and year-to-date for
the period ended March 31, 2023.
Third Quarter Financial Highlights:
- Third quarter total revenue increased 6% to $4.8 million from
$4.6 million.
- Recurring revenue increased 6% for the quarter and represented
99.7% of total revenue.
- Total quarterly operating expense decreased 2% to $3.3 million
from $3.4 million.
- Quarterly operating income increased 29% to $1.5 million from
$1.2 million last year.
- Quarterly GAAP net income increased 53% to $1.7 million from
$1.1 million last year.
- Quarterly net income to common shareholders was $1.5 million,
up 61% from $0.9 million last year.
- Quarterly EPS of $0.08, up 60% from $0.05 last year.
- During the quarter, the Company repurchased 74,150 shares at an
average price of $5.79 for a total of $429,271 during the
quarter.
Fiscal Year-to-Date Financial Highlights:
- Fiscal year-to-date revenue increased 6% to $14.3 million from
$13.5 million.
- Recurring revenue increased 7% year-to-date and represented
99.6% of total revenue.
- Total year-to-date operating expense increased 2% to $10.4
million from $10.2 million.
- Year-to-date operating income increased 19% to $3.9 million
from $3.3 million last year.
- Year-to-date GAAP net income increased 45% to $4.2 million from
$2.9 million last year
- Year-to-date net income to common shareholders was $3.8
million, up 53% from $2.5 million last year.
- Year-to-date EPS of $0.20, up 54% from $0.13 last year.
- Year-to-date cash from operations of $7.1 million, up 75% from
$4.0 million last year.
- Cash at March 31, 2023 was $22.9 million.
Randall K. Fields, Chairman and CEO of Park City Group
commented, “I believe our financial performance speaks for itself.
The results from our long standing, customer-centric strategy
ensure our customers’ success with our services, while maintaining
and deepening our relationship is driving growth. To that end, we
have expanded our sales organization with the addition of senior
customer relationship managers with deep, relevant and diversified
industry experience, and augmented our senior management team,
adding depth across virtually every functional area of the
business. These additions have enabled us to solve real and
important business problems for our customers. Solving those real
problems for our customers is expanding our business.”
Mr. Fields continued, “Most of our growth is due to expanding
the services to our existing customer network. However, we have
added new customers and, importantly, we are already generating
modest revenue from our ReposiTrak Traceability Network® (RTN),
well ahead of schedule. We now have more than 3,000 grocery stores,
about 1,100 suppliers and over 20 distribution centers committed to
rolling out on our network, with just a fraction of the total
suppliers onboarded. This represents about 8% of the retail grocery
industry, just a small piece of the market we believe we will
ultimately secure. We are now increasing our attention to other
vertical markets affected by the FDA traceability rule, such as
restaurants, and convenience stores.”
“Improved sales execution is facilitating an increase in
cross-selling, which should accelerate our fiscal 2024 revenue
growth,” added Mr. Fields. “Based on signed agreements already
in-hand, we expect accelerated top-line growth to bring our growth
rates in line with the 10-20% average we target, especially as the
headwinds from de-emphasizing non-core revenue is largely behind
us. With increasing benefits from the initial RTN revenue, we have
growing confidence that fiscal 2024 will be a year of accelerating
revenue growth and increased profitability.”
Third Fiscal Quarter Financial Results (three months
ended March 31, 2023, vs. three months ended March 31, 2022):
Total revenue was up 6% to $4.82 million as compared to $4.56
million in the prior-year third quarter. Recurring revenue grew 6%.
Total operating expense was $3.30 million, down 2% compared to
$3.38 million last year, reflecting a 22% decrease in general and
administrative expense, partially offset by investments in
traceability and other growth initiatives. GAAP net income was
$1.66 million compared to $1.09 million. Net income to common
shareholders was $1.52 million, or $0.08 per diluted share,
compared to $941,000, or $0.05 per diluted share.
Fiscal Year-to-Date Financial Results (nine months ended
March 31, 2023, vs. nine months ended March 31, 2022):
Total revenue was $14.30 million, up 6% as compared to $13.47
million in the prior-year period. Total operating expense of $10.37
million was up 2% compared to $10.17 million last year. GAAP net
income was $4.21 million compared to $2.91 million. Net income to
common shareholders was $3.77 million, or $0.20 per diluted share,
compared to $2.47 million, or $0.13 per diluted share.
Return of Capital:
In the third quarter, the Company repurchased 74,150 shares at
an average price of $5.79 for a total of $429,271. The Company has
approximately $9.8 million remaining on the $21 million total
buyback authorization since inception.
In September 2022, the Company’s Board of Directors declared a
quarterly cash dividend of $0.015 per share ($0.06 per year).
Quarterly cash dividends will be paid to shareholders on or about
45 days following each quarterly period with the June 30 dividend
expected to be paid in August.
Balance Sheet:
The Company had $22.9 million in cash and cash equivalents at
March 31, 2023, compared to $21.5 million at June 30, 2022. The
Company had nothing drawn on its working line of credit as of March
31, 2023 compared to $2.6 million at June 30, 2022.
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, May 15, 2023
Time: 4:15 p.m. ET (1:15 p.m. PT) Toll-Free: 1-877-407-9716
Toll/International 1-201-493-6779 Conference ID: 13738568
Replay Dial-In Numbers: Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671 Replay Start: Monday, May 15,
2023, 7:15 p.m. ET Replay Expiry: Thursday, June 15, 2023, 11:59
p.m. ET Replay Pin Number: 13738568
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)
March 31,
2023
June 30,
2022
Assets
Current Assets
Cash
$
22,941,493
$
21,460,948
Receivables, net of allowance for doubtful
accounts of $168,699 and $206,093 at March 31, 2023 and June 30,
2022, respectively
2,242,187
3,165,200
Contract asset – unbilled current
portion
285,474
649,433
Prepaid expense and other current
assets
518,458
1,307,128
Total Current Assets
25,987,612
26,582,709
Property and equipment, net
1,128,022
764,517
Other Assets:
Deposits and other assets
22,414
22,414
Prepaid expense – less current portion
50,988
82,934
Contract asset – unbilled long-term
portion
108,052
108,052
Operating lease – right-of-use asset
325,493
368,512
Customer relationships
295,650
394,200
Goodwill
20,883,886
20,883,886
Capitalized software costs, net
776,695
114,488
Total Other Assets
22,463,178
21,974,486
Total Assets
$
49,578,812
$
49,321,712
Liabilities and Shareholders’
Equity
Current liabilities
Accounts payable
$
380,826
$
690,638
Accrued liabilities
1,662,400
1,206,284
Contract liability – deferred revenue
1,562,774
1,555,143
Lines of credit
-
2,590,907
Operating lease liability – current
57,502
53,862
Notes payable and financing leases –
current
219,262
-
Total current liabilities
3,882,764
6,096,834
Long-term liabilities
Operating lease liability – less current
portion
278,401
321,818
Notes payable and financing leases – less
current portion
200,770
-
Total liabilities
4,361,935
6,418,652
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 March 31, 2023
and June 30, 2022;
6,254
6,254
Series B-1 Preferred, 550,000 shares
authorized; 212,402 shares issued and outstanding at March 31, 2023
and June 30, 2022, respectively
2,124
2,124
Common Stock, $0.01 par value, 50,000,000
shares authorized; 18,350,765 and 18,460,538 issued and outstanding
at March 31, 2023 and June 30, 2022, respectively
183,510
184,608
Additional paid-in capital
68,022,970
68,653,361
Accumulated deficit
(22,997,981
)
(25,943,287
)
Total stockholders’
equity
45,216,877
42,903,060
Total liabilities and stockholders’
equity
$
49,578,812
$
49,321,712
PARK CITY GROUP, INC.
Consolidated Condensed Statements of Operations
(Unaudited)
Three Months Ended
March 31,
Nine Months Ended
March 31,
2023
2022
2023
2022
Revenue
$
4,824,101
$
4,555,906
$
14,295,091
$
13,469,170
Operating expense:
Cost of services and product support
840,272
773,651
2,539,618
2,437,351
Sales and marketing
1,239,946
1,229,677
3,667,017
3,570,606
General and administrative
916,237
1,178,649
3,392,056
3,484,307
Depreciation and amortization
305,864
197,393
771,030
676,324
Total operating expense
3,302,319
3,379,370
10,369,721
10,168,588
Income from operations
1,521,782
1,176,536
3,925,370
3,300,582
Other income (expense):
Interest income
275,941
24,975
554,299
167,015
Interest expense
(9,771
)
(13,919
)
(52,481
)
(20,120
)
Unrealized (loss) on short term
investments
35,068
(65,889
)
(3,753
)
(328,987
)
Other gain (loss)
-
(5,649
)
70,047
(88,730
)
Income before income taxes
1,823,020
1,116,054
4,493,482
3,029,760
(Provision) for income taxes:
(160,000
)
(28,038
)
(280,006
)
(122,859
)
Net income
1,663,020
1,088,016
4,213,476
2,906,901
Dividends on preferred stock
(146,611
)
(146,611
)
(439,833
)
(439,833
)
Net income applicable to common
shareholders
$
1,516,409
$
941,405
$
3,773,643
$
2,467,068
Weighted average shares, basic
18,394,000
19,019,000
18,408,000
19,255,000
Weighted average shares, diluted
18,751,000
19,422,000
18,702,000
19,579,000
Basic income per share
$
0.08
$
0.05
$
0.20
$
0.13
Diluted income per share
$
0.08
$
0.05
$
0.20
$
0.13
PARK CITY GROUP,
INC. Consolidated Condensed Statements of Cash Flows
(Unaudited)
Nine Months Ended
March 31,
2023
2022
Cash flows from operating activities:
Net income
$
4,213,476
$
2,906,901
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
771,030
676,324
Amortization of operating right of use
asset
43,019
312,826
Stock compensation expense
315,216
320,199
Bad debt expense
1,200,000
391,667
Gain on disposal of assets
-
(24,737
)
Loss on sale of property and equipment
-
107,820
(Increase) decrease in:
Accounts receivables
86,972
198,430
Long-term receivables, prepaids and other
assets
655,391
(414,998
)
Increase (decrease) in:
Accounts payable
(309,812
)
26,210
Operating lease liability
(39,777
)
(306,798
)
Accrued liabilities
122,744
52,441
Deferred revenue
7,631
(213,321
)
Net cash provided by operating
activities
7,065,890
4,032,964
Cash flows from investing activities:
Sale of property and equipment
-
1,374,085
Capitalization of software costs
(769,243
)
-
Purchase of property and equipment
(133,944
)
(50,823
)
Net cash provided by (used in)
investing activities
(903,187
)
1,323,262
Cash flows from financing activities:
Net (decrease) increase in lines of
credit
(2,590,907
)
(2,614,133
)
Common Stock buyback/retirement
(981,194
)
(5,212,452
)
Proceeds from employee stock plan
92,728
109,177
Dividends paid
(993,037
)
(439,833
)
Payments on notes payable and capital
leases
(209,748
)
-
Net cash used in financing
activities
(4,682,158
)
(8,157,241
)
Net increase (decrease) in cash and
cash equivalents
1,480,545
(2,801,015
)
Cash and cash equivalents at beginning of
period
21,460,948
24,070,322
Cash and cash equivalents at end of
period
$
22,941,493
$
21,269,307
Supplemental disclosure of cash flow
information:
Cash paid for income taxes
$
264,486
$
172,342
Cash paid for interest
$
52,481
$
21,607
Cash paid for operating leases
$
53,015
$
66,871
Supplemental disclosure of non-cash
investing and financing activities:
Common stock to pay accrued
liabilities
$
256,977
$
234,447
Dividends accrued on preferred stock
$
489,833
$
439,833
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230515005261/en/
Investor Relations: John Merrill, CFO
Investor-relations@parkcitygroup.com Or FNK IR Rob Fink
646.809.4048 rob@fnkir.com
Park City (NASDAQ:PCYG)
Historical Stock Chart
From Apr 2024 to May 2024
Park City (NASDAQ:PCYG)
Historical Stock Chart
From May 2023 to May 2024