ShiftPixy, Inc. Reports Fiscal 2018 Second Quarter Results
April 13 2018 - 8:00AM
ShiftPixy, Inc. (NASDAQ:PIXY), a developing, proprietary next-gen
technology platform for workforce engagement and management, today
announced operating results for the three months ended February 28,
2018 (“2018 Second Quarter”).
ShiftPixy Chief Executive Officer Scott Absher
commented, “As we roll out our proprietary and sophisticated
technology platform, we are increasingly excited about the crucial
role we’ll play in the expanding Gig Economy workplace. Our
growing client roster across our expanding national footprint
demonstrates the appeal of the ShiftPixy Ecosystem, and the rapid
progress we’re making on the technology front will only increase
platform effectiveness, ultimately helping to create value for our
shareholders.”
2018 Second Quarter
Highlights
- Gross billings grew 58.1% to $48.6 million, compared to $30.8
million for the 2017 second quarter; gross billings increased 20.9%
sequentially from $40.2 million in the prior quarter.
- Revenues increased 45.8% to $7.9 million, compared to $5.4
million for the second quarter of 2017.
- Worksite employees increased by 3,405 to 6,798 compared to
3,393 as of February 28, 2017; the number of employees at the end
of the quarter also represents a sequential increase of 1,116 over
the number of employees at the end of the first fiscal quarter
2018.
- Gross profit was $0.9 million versus $1.1 million in the prior
year period, and net loss per share was 9 cents during the quarter,
versus a net loss of 4 cents the prior year period.
“I’ve been thoroughly impressed with the
contagious energy at ShiftPixy since joining earlier this year, in
particular the discovery of brand new applications for our
Ecosystem that further expand our horizons,” stated Chief Financial
Officer Patrice Launay. “During this transformational time,
we will work to optimize and manage our balance sheet in support of
our rapid growth.”
Fiscal 2018 Third Quarter
Guidance
The Company currently expects gross billings for
fiscal third quarter 2018 to be in the range of $50 million to $60
million, which at the midpoint would represent a sequential
increase of 13% over the fiscal second quarter 2018.
Webcast
ShiftPixy will host a webcast at 11:00 a.m.
Eastern Time on Friday, April 13, 2018, to discuss financial
results for the 2018 fiscal second quarter. Investors can access
the webcast through the ShiftPixy website at
https://ir.shiftpixy.com.
About ShiftPixy
ShiftPixy is a disruptive human capital
management (HCM) services provider, revolutionizing employment in
the Gig Economy by delivering a next-gen platform for workforce
management that helps businesses with shift-based employees
navigate regulatory mandates, minimize administrative burdens and
better connect with a ready-for-hire workforce. With expertise
rooted in management’s nearly 25 years of workers’ compensation and
compliance programs experience, ShiftPixy adds a needed layer for
addressing compliance and continued demands for equitable
employment practices in the growing Gig Economy. ShiftPixy’s
complete HCM ecosystem is designed to manage regulatory
requirements and compliance in such required areas as paid time off
(PTO) laws, insurance and workers’ compensation, minimum wage
increases, and the Affordable Care Act (ACA) compliance.
ShiftPixy Cautionary Statement
The information provided in this release
includes forward-looking statements, the achievement or success of
which involves risks, uncertainties, and assumptions. Although such
forward-looking statements are based upon what management of the
Company believes are reasonable assumptions, there can be no
assurance that forward-looking statements will prove to be
accurate. If any of the risks or uncertainties, including those set
forth below, materialize or if any of the assumptions proves
incorrect, the results of ShiftPixy, Inc., could differ materially
from the results expressed or implied by the forward-looking
statements we make. The risks and uncertainties include, but
are not limited to, risks associated with the nature of our
business model; our ability to execute the Company's vision and
growth strategy; our ability to attract and retain clients; our
ability to assess and manage risks; changes in the law that affect
our business and our ability to respond to such changes and
incorporate them into our business model, as necessary; our ability
to insure against and otherwise effectively manage risks that
affect our business; competition; reliance on third-party systems
and software; our ability to protect and maintain our intellectual
property; and general developments in the economy and financial
markets. Statements made in connection with any guidance may
refer to financial statements that have not been reviewed or
audited. The Company undertakes no obligation to update
forward-looking statements if circumstances or management's
estimates or opinions should change, except as required by
applicable securities laws. The information in this press
release shall not be deemed to be "filed" for the purpose of
Section 18 of the Securities Exchange Act of 1934, as amended, or
otherwise subject to the liabilities of that section, and will not
be deemed an admission as to the materiality of any information
that is required to be disclosed solely by Regulation FD.
Further information on these and other factors that could affect
the financial results of ShiftPixy, Inc., is included in the
filings on Forms 1-A and 10-Q and in other filings we make with the
Securities and Exchange Commission from time to time. These
documents are available on the "SEC Filings" subsection of the
"Investor Information" section of our website at
https://ir.shiftpixy.com/financial-information/sec-filings.
Consistent with the SEC’s April 2013 guidance on
using social media outlets like Facebook and Twitter to make
corporate disclosures and announce key information in compliance
with Regulation FD, ShiftPixy is alerting investors and other
members of the general public that ShiftPixy will provide updates
on operations and progress required to be disclosed under
Regulation FD through its social media on Facebook, Twitter,
LinkedIn and YouTube. Investors, potential investors, shareholders
and individuals interested in our Company are encouraged to keep
informed by following us on Facebook, Twitter, LinkedIn and
YouTube.
CONTACT: Media:Clark
Wilsonclark.wilson@shiftpixy.com888.798.9100
Investors:InvestorRelations@shiftpixy.com800.475.3655
|
ShiftPixy Inc. |
Condensed Consolidated Balance
Sheets |
|
|
|
February 28,2018 |
|
August 31,
2017 |
ASSETS |
(Unaudited) |
|
|
Current Assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
904,421 |
|
|
$ |
5,896,705 |
|
Accounts receivable |
|
|
191,910 |
|
|
|
428,790 |
|
Prepaid expenses |
|
|
2780,159 |
|
|
|
2,687,188 |
|
Other current assets |
|
|
33,279 |
|
|
|
15,916 |
|
|
Total Current Assets |
|
|
3,909,769 |
|
|
|
9,028,599 |
|
|
|
|
|
|
|
|
|
Fixed assets, net |
|
|
1,061,901 |
|
|
|
288,065 |
|
Deposits and Other assets |
|
|
158,415 |
|
|
|
126,480 |
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
5,130,085 |
|
|
$ |
9,443,144 |
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,359,927 |
|
|
$ |
1,160,474 |
|
|
Payroll related liabilities |
|
|
3,329,263 |
|
|
|
2,388,454 |
|
|
Other current liabilities |
|
|
688,311 |
|
|
|
278,982 |
|
|
Total Current Liabilities |
|
|
5,377,501 |
|
|
|
3,827,910 |
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' (Deficit) Equity |
|
|
|
|
|
|
|
|
|
Preferred stock, 50,000,000 authorized shares; $0.0001 par
value; no shares issued and outstanding |
|
|
- |
|
|
|
- |
|
Common stock, 750,000,000 authorized shares; $0.0001 par
value; 28,800,676 and 28,762,424
shares issued and outstanding, respectively |
|
|
2,881 |
|
|
|
2,877 |
|
Additional paid-in capital |
|
|
15,210,030 |
|
|
|
15,012,584 |
|
Accumulated deficit |
|
|
(15,460,327 |
) |
|
|
(9,400,227) |
|
Total Stockholders' (Deficit) Equity |
|
|
(247,416 |
) |
|
|
5,615,234 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
5,130,085 |
|
|
$ |
9,443,144 |
|
|
ShiftPixy Inc. |
Condensed Consolidated Statements of
Operations |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended February
28, |
|
For the Six Months Ended February
28, |
|
2018 |
2017(Restated) |
|
2018 |
2017(Restated) |
Revenues (gross
billings of $48.6m and $30.8m less worksite employee payroll cost
of $40.8m and $25.3m, respectively for the three months ended;
gross billings of $88.8m and $65.8m less worksite employee payroll
cost of $74.4m and $54.8m, respectively for six months ended) |
$ |
7,886,459 |
|
|
$ |
5,408,743 |
|
|
|
$ |
14,398,378 |
|
|
$ |
11,090,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues |
7,007,315 |
|
|
4,302,972 |
|
|
|
12,273,718 |
|
|
8,033,525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit |
879,144 |
|
|
1,105,771 |
|
|
|
2,124,660 |
|
|
3,056,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll |
1,372,403 |
|
|
906,484 |
|
|
|
2,623,188 |
|
|
1,837,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions |
338,434 |
|
|
201,282 |
|
|
|
610,065 |
|
|
304,583 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional fees |
508,787 |
|
|
282,966 |
|
|
|
1,001,242 |
|
|
452,593 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
development |
486,354 |
|
|
- |
|
|
|
2,386,354 |
|
|
- |
|
General and
administrative |
892,049 |
|
|
675,391 |
|
|
|
1,563,911 |
|
|
1,044,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses |
3,598,027 |
|
|
2,066,123 |
|
|
|
8,184,760 |
|
|
3,639,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
$ |
(2,718,883 |
) |
|
$ |
(960,352 |
) |
|
|
$ |
(6,060,100 |
) |
|
$ |
(582,253 |
) |
|
|
|
|
|
|
Net Loss per
common share available to Common Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted |
$ |
(0.09 |
) |
|
$ |
(0.04 |
) |
|
|
$ |
(0.21 |
) |
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
Weighted
Average Number of Common Shares Used in Per Share
Computations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted |
28,800,630 |
|
|
26,227,935 |
|
|
|
28,792,333 |
|
|
26,220,789 |
|
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