Attached files
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| EX-99.2 - EARNINGS CALL TRANSCRIPT, DATED FEBRUARY 6, 2017 - PARK CITY GROUP INC | ex99-2.htm |
| 8-K - FORM 8-K - PARK CITY GROUP INC | pcyg8k_feb62017.htm |
Exhibit
99.1
Park
City Group Reports Fiscal Second Quarter 2017 Results
35% Year-Over-Year Revenue Growth, Profitability Continues to
Scale
Adoption Accelerated with Annual Connection Goal Achieved in Six
Months
ReposiTrak Increasingly Recognized as the Industry’s Food
Safety and Compliance Solution
SALT LAKE CITY, UT – February 6,
2017 – Park
City Group (NASDAQ: PCYG), a cloud-based software company that uses
big data management to help retailers and their suppliers
‘sell
more, stock less and see everything’, today announced
results for its fiscal second quarter ended December 31,
2016.
Strategic
and Financial Highlights:
●
Fiscal second quarter revenue increased 35%
year-over-year, reaching a record $4.8 million. “We
continue to see strong revenue growth driven by demand for our new
applications including ReposiTrak and our Vendor Portal,”
said Randall K. Fields, Park City Group’s Chairman and CEO.
“Total revenue was $4.8 million, our largest quarter ever,
and an increase of 35% year over year, while revenue in the first
half was $9 million, an increase of 36% from $6.6 million last
year.”
●
Net income was a record $1.4 million with
incremental contribution margin exceeding 75%. “With
net income margin of 29%, we continued to generate improving
operating leverage in the second quarter. We are capitalizing on
past investments in processes and technology, and the convergence
of our businesses,” said Mr. Fields. “Given the
benefits we are seeing to execution and profitability; we are
planning another round of infrastructure enhancements to handle our
expected growth.”
●
Burgeoning customer network and accelerating
connections reflect growing mandate. “During the
quarter, we added new large retail customers to our network and
launched applications that enhance our value proposition,”
said Mr. Fields. “Our growing network puts us in touch with
more and more industry participants. At the same time, improvements
in our processes are allowing us to onboard suppliers at an
accelerating rate, enabling our HUBs to achieve higher levels of
compliance even faster."
●
ReposiTrak positioned as industry’s
leading compliance management platform. “Food safety
enjoys broad, bi-partisan support and existing regulations under
the new Food Safety Modernization Act have not been impacted by the
new administration’s regulatory position,” said Mr.
Fields. “In addition to being the standard food safety
solution, ReposiTrak is increasingly being viewed as a broader
platform for overall compliance and risk management. Integration
with SQF has made us the leading platform for food safety audits,
and we are becoming deeply imbedded in our customers’
business processes.”
●
Expanded applications and business convergence
provide support for multi-year growth. “The
convergence of our business has created greater opportunities and
increasing demand for our supply-chain services,” said Mr.
Fields. “In addition to strong demand for our Vendor Portal,
which is a unified service delivery platform, we are making a
series of significant new product introductions that enhance our
offering and which will make us increasingly important to our
customers.”
●
Outlook for continued positive financial
momentum in fiscal 2017. “Looking forward, we expect
revenue and profitability in the second half of the fiscal year to
be stronger than the first half,” said Mr. Fields. “We
have already exceeded our fiscal 2017 goal of doubling supplier
connections, and we are seeing this momentum translate into
accelerated revenue growth and operating leverage. As a result, we
are confident that fiscal 2017 will be a record year, by a
substantial margin.”
Financial
Results Summary:
Fiscal Second Quarter 2017 Results:
Total revenue increased 35% to $4.8 million for the three months
ended December 31, 2016, as compared to $3.5 million during the
same period a year ago. Total operating expenses were $3.4 million,
a 4% increase from $3.3 million a year ago. Net income for the quarter was $1.4 million, versus
$281,000 a year ago, and net income to common shareholders
for the quarter was $1.2 million, or $0.06 per common share, as
compared to $111,000, or $0.01 per share, a year ago.
Fiscal 2017 Year-to-Date Results: Total
revenue increased 36% to $9.0 million for the first six months of
fiscal 2017, as compared to $6.6 million during the same period a
year ago. Total operating expenses were $6.9 million, a 2% increase
from $6.8 million a year ago. Net
income for the first six months of fiscal 2017 was $2 million,
versus a loss of ($126,000) a year ago, and net income to
common shareholders was $1.6 million, or $0.08 per share, versus a
loss of ($496,000), or ($0.03) per share, a year ago.
Cash and Liquidity: The Company ended
the fiscal second quarter of 2017 with $12.1 million in cash and
cash equivalents, versus $11.4 million at the end of the fiscal
2016.
Conference
Call:
The
Company will host a conference call at 4:15 P.M. Eastern today,
February 6, 2017 to discuss the results. Investors and interested parties may
participate in the call by dialing 1-877-879-6217 and referring to Conference ID: 4426539
The conference call is also being webcast and is available via the
investor relations section of the Company’s website,
www.parkcitygroup.com.
About
Park City Group:
Park
City Group (PCYG) is a Software-as-a-Service (“SaaS”)
provider that brings unique visibility to the consumer goods supply
chain, delivering actionable information to ensure products are
available when and where consumers demand them, helping retailers
and suppliers to ‘Sell More, Stock
Less, and See Everything’. Park City Group’s
technology also assists all participants in the food and drug
supply chains to comply with food and drug safety regulations
through the Company’s ReposiTrak subsidiary. 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 quarterly report on Form 10-Q for the
quarter ended December 31, 2016 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-Q and other reports, including the risk
factors contained in the Form 10-Q.
Investor
Relations Contact:
Jeff
Elliott
Three
Part Advisors, LLC
972-423-7070
Dave
Mossberg
Three
Part Advisors, LLC
817-310-0051
Non-GAAP
Financial Measures
While
this press release does not include non-GAAP financial measures,
the financial presentation below contains certain financial
measures defined as “non-GAAP financial measures” by
the Securities and Exchange Commission, including non-GAAP EBITDA
and non-GAAP earnings per share. These measures may be different
from non-GAAP financial measures used by other companies. The
presentation of this financial information, which is not prepared
under any comprehensive set of accounting rules or principles, is
not intended to be considered in isolation or as a substitute for
the financial information prepared and presented in accordance with
generally accepted accounting principles. Reconciliations of these
non-GAAP financial measures to the nearest comparable GAAP measures
will be provided upon the completion of the Company’s annual
audit.
Non-GAAP EBITDA
excludes items such as impairment charges, allowance for doubtful
accounts, non-cash stock based compensation and other one-time cash
and non-cash charges. Non-GAAP EPS excludes items such as non-cash
stock based compensation, amortization of acquired intangible
assets and other one-time cash and non-cash charges. The Company
believes the non-GAAP measures provide useful information to both
management and investors by excluding certain expenses, gains and
losses or net purchases of property and equipment, as the case may
be, which may not be indicative of its core operation results and
business outlook. Because Park City Group has historically reported
certain non-GAAP results to investors, the Company believes that
the inclusion of non-GAAP measures in the financial presentation
below allows investors to compare the Company’s financial
results with the Company’s historical financial results
reported using non-GAAP financial measures, as well as with the
financial results reported by others.
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.
