Park City Group Plans to Buyback Preferred Stock
September 12 2023 - 8:00AM
Business Wire
As Part of Comprehensive Capital Allocation
Strategy, Company to Utilize Portion of Free Cash Flow to Redeem
and Retire Preferred Stock
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, announced that its Board of
Directors has decided to commence the redemption and retirement of
the Series B Preferred Stock (“Series B Preferred”) and Series B-1
Preferred Stock (“Series B-1 Preferred”).
As of March 31, 2023, a total of 625,375 shares of Series B
Preferred and 212,402 shares of Series B-1 Preferred were issued
and outstanding. The total aggregate cost to redeem and retire both
the Series B and Series B-1 Preferred at their stated value is
$8,964,214 or $10.70 per share. The Company anticipates utilizing a
portion of its annual free cash flow to redeem and retire all
outstanding Preferred Stock over the next three years.
“This decision reflects the obvious next step in our stated
capital allocation strategy,” commented Randall K. Fields, Chairman
and CEO of Park City Group. “Over the past four years, we have
built a fortress balance sheet, with nearly $23 million in cash at
March 31, 2023 while simultaneously repurchasing and retiring
nearly two million shares of common stock, paying off $6 million in
bank debt, and commencing a quarterly cash dividend to common
shareholders. Redeeming and retiring our Preferred Stock will
eliminate approximately $147,000 in cash dividends per quarter,
once the redemption is complete, further expanding our free cash
flow generation.”
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, 2022 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20230912559664/en/
Investor Relations: John Merrill, CFO
Investor-relations@parkcitygroup.com
Or
FNK IR Rob Fink 646.809.4048 rob@fnkir.com
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