Park City Group Reports 9% Increase in Revenue, Net Income More than Triples for Fiscal First Quarter 2021
All Three Revenue Streams, Compliance, Supply Chain and MarketPlace – Reflect YoY Growth
SALT LAKE CITY–(BUSINESS WIRE)–
Park City Group, Inc. (NASDAQ: PCYG), the parent company of ReposiTrak, Inc., which operates a B2B ecommerce, compliance, and supply chain platform that partners with retailers, wholesalers, and their suppliers, to accelerate sales, control risk, and improve supply chain efficiencies, today announced financial results for the first fiscal quarter ended September 30, 2020.
First Quarter Financial and Recent Business Highlights:
- Total revenue increased to $5.23 million from $4.80 million, a 9% year-over-year increase resulting from higher MarketPlace revenue and recurring SaaS revenue.
- Operating expense decreased 1% year-over-year.
- GAAP net income up 212% to $555,000 vs. $178,000.
- Net income to common shareholders of $408,000 vs. $32,000.
- EPS $0.02 vs. $0.00 in the prior year first quarter.
Randall K. Fields, Chairman and CEO of Park City Group commented, “We grew revenue in both our SaaS offerings which includes supply chain and compliance, and delivered double-digit growth in MarketPlace as customers continue to utilize our platform for safely sourcing hard-to-find items. The result was a 9% consolidated revenue growth, which is noteworthy considering the pandemic business environment. We achieved these results while simultaneously decreasing selling, general, and administrative expenses by more than $270,000 compared to last year.”
“The pandemic-related challenges within the supply chain continue to serve as tailwinds for our MarketPlace offering for the foreseeable future,” continued Mr. Fields. “We are beginning to secure opportunities beyond the traditional grocery sector. Government entities are evaluating MarketPlace as a platform to help source COVID and other emergency supplies, personal protective apparel, and other high-demand items. Our pipeline of potential opportunities in the government sector is growing.”
“Simultaneously, we continue to grow our SaaS offerings, which give us greater long-term visibility into our predictable results as the economy begins to normalize,” added Mr. Fields. “The growing base of recurring SaaS revenue enables consistent profitability, as evidenced by our more than ten-fold improvement in net income to common shareholders. In addition, we delivered a $2.9 million, or 16%, year-over-year increase in our net cash generated in the quarter, giving us a strong start in the new fiscal year. Our customers continue to navigate unprecedented challenges, impacting our sales cycle, but we continue to adapt our cost structure and believe we are well-positioned for the balance of our fiscal year.”
First Quarter Financial Results (three months ended September 30, 2020 vs. three months ended September 30, 2019):
Total revenue increased 9% to $5.23 million as compared to $4.80 million due to growth in MarketPlace revenue and a 6% increase in recurring revenue. Total operating expense was $4.6 million, a 1.4% decrease from $4.7 million. GAAP net income was $555,000, or 10.6% of revenue, versus $178,000, or 3.7% of revenue, and GAAP net income to common shareholders was $408,000, or $0.02 per diluted share, compared to $32,000, or $0.00 per diluted share.
Balance Sheet:
The Company had $21.2 million in cash and cash equivalents at September 30, 2020, compared to $20.3 million at June 30, 2020.
Conference Call:
The Company will host a conference call at 4:15 p.m. Eastern today. 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, November 16th
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: 13713020
Replay Dial-In Numbers:
Toll-Free 1-844-512-2921
Toll/International 1-412-317-6671
From: 11/16/20 @ 7:15 p.m. Eastern Time
To: 12/16/20 @ 11:59 p.m. Eastern Time
Replay Pin Number: 13713020
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 September 30, 2019 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) |
||||||||
|
Assets |
|
September 30, 2020 |
|
|
June 30, 2020 |
|
||
|
Current Assets |
|
|
|
|
|
|
||
|
Cash |
|
$ |
21,158,716 |
|
|
$ |
20,345,330 |
|
|
Receivables, net of allowance for doubtful accounts of $376,954 and $251,954 at September 30, 2020 and June 30, 2020, respectively |
|
|
3,895,158 |
|
|
|
4,007,316 |
|
|
Contract asset – unbilled current portion |
|
|
2,899,819 |
|
|
|
2,300,754 |
|
|
Prepaid expense and other current assets |
|
|
594,245 |
|
|
|
495,511 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Current Assets |
|
|
28,547,938 |
|
|
|
27,148,911 |
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
2,872,805 |
|
|
|
3,003,402 |
|
|
|
|
|
|
|
|
|
|
|
|
Other Assets: |
|
|
|
|
|
|
|
|
|
Deposits, and other assets |
|
|
22,414 |
|
|
|
22,414 |
|
|
Prepaid expense – less current portion |
|
|
62,919 |
|
|
|
77,030 |
|
|
Contract asset – unbilled long-term portion |
|
|
542,170 |
|
|
|
838,726 |
|
|
Operating lease – right-of-use asset |
|
|
760,172 |
|
|
|
781,137 |
|
|
Customer relationships |
|
|
624,150 |
|
|
|
657,000 |
|
|
Goodwill |
|
|
20,883,886 |
|
|
|
20,883,886 |
|
|
Capitalized software costs, net |
|
|
9,269 |
|
|
|
18,539 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Assets |
|
|
22,904,980 |
|
|
|
23,278,732 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
54,325,723 |
|
|
$ |
53,431,045 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
465,012 |
|
|
$ |
407,497 |
|
|
Accrued liabilities |
|
|
1,712,342 |
|
|
|
1,123,528 |
|
|
Contract liability – deferred revenue |
|
|
1,951,467 |
|
|
|
1,845,347 |
|
|
Lines of credit |
|
|
5,280,000 |
|
|
|
4,660,000 |
|
|
Operating lease liability – current |
|
|
86,853 |
|
|
|
85,767 |
|
|
Current portion of notes payable |
|
|
– |
|
|
|
310,242 |
|
|
Current portion of paycheck protection program loans |
|
|
668,457 |
|
|
|
479,866 |
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
10,164,131 |
|
|
|
8,912,247 |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term liabilities |
|
|
|
|
|
|
|
|
|
Operating lease liability – less current portion |
|
|
673,318 |
|
|
|
695,369 |
|
|
Notes payable – less current portion |
|
|
– |
|
|
|
610,512 |
|
|
Paycheck protection program loans |
|
|
440,893 |
|
|
|
629,484 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
11,278,342 |
|
|
|
10,847,612 |
|
|
|
|
|
|
|
|
|
|
|
|
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 September 30, 2020 and June 30, 2020, respectively |
|
|
6,254 |
|
|
|
6,254 |
|
|
Series B-1 Preferred, 550,000 shares authorized; 212,402 shares issued and outstanding at September 30, 2020 and June 30, 2020, respectively |
|
|
2,124 |
|
|
|
2,124 |
|
|
Common Stock, $0.01 par value, 50,000,000 shares authorized: 19,499,767 and 19,484,485 issued and outstanding at September 30, 2020 and June 30, 2020, respectively |
|
|
195,000 |
|
|
|
194,847 |
|
|
Additional paid-in capital |
|
|
75,326,677 |
|
|
|
75,271,097 |
|
|
Accumulated deficit |
|
|
(32,482,674 |
) |
|
|
(32,890,889 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity |
|
|
43,047,381 |
|
|
|
42,583,433 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
54,325,723 |
|
|
$ |
53,431,045 |
|
|
PARK CITY GROUP, INC. Consolidated Condensed Statements of Operations (Unaudited) |
||||||||
|
|
|
Three Months Ended September 30, |
|
|||||
|
|
|
2020 |
|
|
2019 |
|
||
|
|
|
|
|
|
|
|
||
|
Revenue: |
|
$ |
5,225,402 |
|
|
$ |
4,800,084 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expense: |
|
|
|
|
|
|
|
|
|
Cost of services and product support |
|
|
1,980,957 |
|
|
|
1,828,114 |
|
|
Sales and marketing |
|
|
1,283,041 |
|
|
|
1,414,863 |
|
|
General and administrative |
|
|
1,081,925 |
|
|
|
1,222,212 |
|
|
Depreciation and amortization |
|
|
248,500 |
|
|
|
193,677 |
|
|
Total operating expense |
|
|
4,594,423 |
|
|
|
4,658,866 |
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
630,979 |
|
|
|
141,218 |
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
Interest income |
|
|
34,341 |
|
|
|
82,731 |
|
|
Interest expense |
|
|
(70,545 |
) |
|
|
(20,598 |
) |
|
Unrealized gain (loss) on short term investments |
|
|
(16,263 |
) |
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
578,512 |
|
|
|
203,351 |
|
|
|
|
|
|
|
|
|
|
|
|
(Provision) for income taxes: |
|
|
(23,686 |
) |
|
|
(25,000 |
) |
|
Net income |
|
|
554,826 |
|
|
|
178,351 |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends on preferred stock |
|
|
(146,611 |
) |
|
|
(146,611 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to Common Stockholders |
|
$ |
408,215 |
|
|
$ |
31,740 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares, basic |
|
|
19,489,000 |
|
|
|
19,811,000 |
|
|
Weighted average shares, diluted |
|
|
19,642,000 |
|
|
|
20,122,000 |
|
|
Basic income per share |
|
$ |
0.02 |
|
|
$ |
0.00 |
|
|
Diluted income per share |
|
$ |
0.02 |
|
|
$ |
0.00 |
|
|
PARK CITY GROUP, INC. Consolidated Condensed Statements of Cash Flows (Unaudited) |
||||||||
|
|
|
Three Months Ended September 30, |
|
|||||
|
|
|
2020 |
|
|
2019 |
|
||
|
Cash flows from operating activities: |
|
|
|
|
|
|
||
|
Net income |
|
$ |
554,826 |
|
|
$ |
178,351 |
|
|
Adjustments to reconcile net income to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
248,500 |
|
|
|
193,677 |
|
|
Amortization of operating right-of-use asset |
|
|
20,965 |
|
|
|
– |
|
|
Stock compensation expense |
|
|
93,432 |
|
|
|
119,567 |
|
|
Bad debt expense |
|
|
125,000 |
|
|
|
125,000 |
|
|
(Increase) decrease in: |
|
|
|
|
|
|
|
|
|
Accounts receivables |
|
|
(1,154,077 |
) |
|
|
(321,246 |
) |
|
Long-term receivables, prepaid and other assets |
|
|
691,245 |
|
|
|
730,563 |
|
|
Right-of-use asset |
|
|
– |
|
|
|
(842,689 |
) |
|
(Decrease) increase in: |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
57,515 |
|
|
|
(89,198 |
) |
|
Accrued liabilities |
|
|
501,063 |
|
|
|
(261,758 |
) |
|
Operating lease liability |
|
|
(20,965 |
) |
|
|
842,689 |
|
|
Deferred revenue |
|
|
105,844 |
|
|
|
37,638 |
|
|
Net cash provided by operating activities |
|
|
1,223,348 |
|
|
|
712,594 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(12,925 |
) |
|
|
(353,706 |
) |
|
Net cash used in investing activities |
|
|
(12,925 |
) |
|
|
(353,706 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows financing activities: |
|
|
|
|
|
|
|
|
|
Net increase in lines of credit |
|
|
620,000 |
|
|
|
– |
|
|
Common Stock buyback/retirement |
|
|
– |
|
|
|
(517,360 |
) |
|
Proceeds from employee stock plans |
|
|
50,328 |
|
|
|
63,523 |
|
|
Dividends paid |
|
|
(146,611 |
) |
|
|
(146,611 |
) |
|
Payments on notes payable and capital leases |
|
|
(920,754 |
) |
|
|
(72,420 |
) |
|
Net cash used in financing activities |
|
|
(397,037 |
) |
|
|
(672,868 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents |
|
|
813,386 |
|
|
|
(313,980 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
|
|
20,345,330 |
|
|
|
18,609,423 |
|
|
Cash and cash equivalents at end of period |
|
$ |
21,158,716 |
|
|
$ |
18,295,443 |
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20201116005371/en/
Investor Relations:
John Merrill, CFO
[email protected]
Or
FNK IR
Rob Fink
646.809.4048
[email protected]
KEYWORDS: Utah United States North America
INDUSTRY KEYWORDS: Online Retail Data Management Retail Technology Tobacco Software
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