ShiftPixy, Inc. Reports Fiscal 2019 First Quarter Results
January 11 2019 - 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 November 30,
2018 (“2019 First Quarter”).
2019 First Quarter
Highlights
- Gross billings grew 77% to $70.9 million, compared to $40.2
million for the fiscal 2018 first quarter; gross billings for the
quarter decreased 3.4% sequentially from $73.4 million in the prior
quarter.
- Revenues increased 62% to $10.5 million for the quarter,
compared to $6.5 million for the first quarter of fiscal 2018.
- Worksite employees increased by 3,520 to an average of 8,990
compared to an average of 5,470 for the quarter ended November 30,
2017; the number of employees at the end of the quarter also
represented a sequential increase of approximately 740 over the
number of employees at the end of the fourth quarter of fiscal
2018.
- Gross profit for the quarter was $3.4 million versus $1.2
million in the prior year period, and net loss per share was 7
cents during the quarter, versus a net loss of 12 cents the prior
year period.
"It’s an exciting time for ShiftPixy and it's
gratifying to see the rapid adoption of our platform driving strong
growth in both our client base and our number of worksite
employees,” stated Chief Executive Officer, Scott Absher. “We are
pleased with the pace of our growth and anticipate that our rapidly
developing technology platform will further enhance our service
offerings and better enable us to meet the needs of our assigned
workforce and clients as we endeavor to create value for our
shareholders.”
Webcast
ShiftPixy will host a webcast at 8:30 a.m.
Eastern Time on Friday, January 11, 2019, to discuss financial
results for its 2019 fiscal first 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 |
|
|
|
|
|
November 30,2018 |
|
|
August 31, 2018 |
|
ASSETS |
|
(Unaudited) |
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
227,454 |
|
|
$ |
1,649,783 |
|
Accounts receivable |
|
|
129,452 |
|
|
|
110,931 |
|
Unbilled accounts receivable |
|
|
4,759,141 |
|
|
|
6,192,631 |
|
Deposit – workers’ compensation |
|
|
1,923,465 |
|
|
|
1,672,097 |
|
Prepaid expenses |
|
|
378,525 |
|
|
|
563,002 |
|
Other current assets |
|
|
351,555 |
|
|
|
258,901 |
|
Total current assets |
|
|
7,769,592 |
|
|
|
10,447,345 |
|
|
|
|
|
|
|
|
|
|
Fixed assets, net |
|
|
3,337,861 |
|
|
|
3,032,325 |
|
Deposits – workers’ compensation |
|
|
2,841,882 |
|
|
|
2,201,556 |
|
Deposits and other assets |
|
|
94,375 |
|
|
|
120,606 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
14,043,710 |
|
|
$ |
15,801,832 |
|
LIABILITIES AND STOCKHOLDERS'
DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,486,581 |
|
|
$ |
1,246,461 |
|
Payroll related liabilities |
|
|
7,488,262 |
|
|
|
9,476,641 |
|
Convertible note, net |
|
|
6,309,104 |
|
|
|
7,156,515 |
|
Accrued workers’ compensation costs |
|
|
634,697 |
|
|
|
305,217 |
|
Registration rights penalties accrual (Note
9) |
|
|
3,500,000 |
|
|
|
3,500,000 |
|
Other current liabilities |
|
|
1,230,418 |
|
|
|
1,955,921 |
|
Total current liabilities |
|
|
20,649,062 |
|
|
|
23,640,755 |
|
Non-current
liabilities |
|
|
|
|
|
|
|
|
Accrued workers’ compensation costs |
|
|
1,639,900 |
|
|
|
900,978 |
|
Total liabilities |
|
|
22,288,962 |
|
|
|
24,541,733 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' deficit |
|
|
|
|
|
|
|
|
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; 29,822,822 and 28,851,787
shares issued and outstanding, respectively |
|
|
2,983 |
|
|
|
2,886 |
|
Additional paid-in capital |
|
|
19,728,657 |
|
|
|
17,233,919 |
|
Accumulated deficit |
|
|
(27,976,892 |
) |
|
|
(25,976,706 |
) |
Total stockholders' deficit |
|
|
(8,245,252 |
) |
|
|
(8,739,901 |
) |
Total liabilities and stockholders’ deficit |
|
$ |
14,043,710 |
|
|
$ |
15,801,832 |
|
|
ShiftPixy Inc. |
Condensed Consolidated Statements of
Operations |
(Unaudited) |
|
|
|
|
For the Three Months Ended November
30, |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
Revenues (gross
billings of $70.9 million and $40.2 million less worksite employee
payroll cost of $60.4 million and $33.7 million,
respectively) |
|
$ |
10,519,990 |
|
|
|
$ |
6,511,919 |
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
7,134,168 |
|
|
|
|
5,266,403 |
|
Gross profit |
|
|
3,385,822 |
|
|
|
|
1,245,516 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Salaries, wages and payroll taxes |
|
|
1,794,965 |
|
|
|
|
1,180,489 |
|
Stock-based compensation - general and
administrative |
|
|
77,222 |
|
|
|
|
70,296 |
|
Commissions |
|
|
553,216 |
|
|
|
|
271,630 |
|
Professional fees |
|
|
624,045 |
|
|
|
|
492,455 |
|
Software development |
|
|
310,000 |
|
|
|
|
1,900,000 |
|
Depreciation and amortization |
|
|
187,723 |
|
|
|
|
17,695 |
|
General and administrative |
|
|
1,127,915 |
|
|
|
|
654,168 |
|
Total operating expenses |
|
|
4,675,086 |
|
|
|
|
4,586,733 |
|
Operating Loss |
|
|
(1,289,264 |
) |
|
|
|
(3,341,217 |
) |
Other Expense |
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(710,922 |
) |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(2,000,186 |
) |
|
|
$ |
(3,341,217 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss per common share |
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.07 |
) |
|
|
$ |
(0.12 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares |
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
28,921,300 |
|
|
|
|
26,767,850 |
|
|
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