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.
|
||||||||
|
|
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.
|
||||||||||||||||
|
|
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.
|
||||||||
|
|
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/
Contacts
Investor Relations:
John Merrill, CFO
Investor-relations@parkcitygroup.com
Or
FNK IR
Rob Fink
646.809.4048
rob@fnkir.com
