Attached files
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| EX-99.1 - ADDITIONAL EXHIBITS - PARK CITY GROUP INC | ex99-1.htm |
| 8-K - CURRENT REPORT - PARK CITY GROUP INC | pcyg8k_nov162020.htm |
Exhibit 99.2
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.
(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., 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
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
Cash
paid for income taxes
|
$25,899
|
$79,073
|
|
Cash
paid for interest
|
$70,545
|
$20,598
|
|
Cash
paid for operating leases
|
$30,600
|
$30,600
|
|
|
|
|
|
Supplemental
disclosure of non-cash investing and financing
activities:
|
|
|
|
Common
Stock to pay accrued liabilities
|
$5,405
|
$77,888
|
|
Dividends
accrued on preferred stock
|
$146,611
|
$146,611
|