Attached files
| file | filename |
|---|---|
| EX-99 - PRESS RELEASE DATED MAY 18, 2021 - PARK CITY GROUP INC | ex99-3.htm |
| EX-99 - EARNINGS CALL TRANSCRIPT - PARK CITY GROUP INC | ex99-1.htm |
| 8-K - CURRENT REPORT - PARK CITY GROUP INC | pcyg8k.htm |
Exhibit 99.2
Park City Group Reports 30% Increase
in Revenue, Net Income Increases 184% for Fiscal Third Quarter
2021
Year-To-Date Net Income Increases 165% to $2.95
Million
Salt Lake City, UT – May
17, 2021 – 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, improve supply chain
efficiencies, and source hard-to-find items, today announced
financial results for the third fiscal quarter ended March 31,
2021.
Third Quarter Financial and Recent Business
Highlights:
●
Total
revenue increased 30.0% to $6.0 million from $4.6 million due to
higher MarketPlace revenue and recurring SaaS revenue.
●
Recurring,
SaaS revenue from compliance, supply chain, out-of-stock and other
software solutions, increased 13% to $ 4.5 million.
●
GAAP net
income of $773,000 million vs. net income of $272,000 in the prior
year.
●
Net income
to common shareholders of $627,000, vs. $125,000.
●
EPS $0.03
vs. $0.01 in the prior year third quarter.
Randall K. Fields, Chairman and CEO of Park City
Group commented, “Our strong performance in the quarter
reflects 30% top line and 184% net income growth, demonstrating the
inherent leverage of our business model. MarketPlace revenue soared
as customers utilized this unique solution to find hard-to-source
items amidst the pandemic. But even as our revenue mix resulted in
more transactional, lower-margin MarketPlace revenue this quarter,
our bottom-line conversion still grew exponentially demonstrating
the strong leverage inherent in our business model. As the pandemic
begins to abate and MarketPlace revenue moderates, we expect our
mix to shift in favor of our traditional SaaS solutions where
budgets are beginning to loosen, likely resulting in slower
top-line growth but increased
profitability.”
“Our business is highly scalable,” added Mr. Fields.
“We can significantly increase our revenue, especially our
software revenue, and particularly recurring compliance and supply
chain revenue, driving incremental profitability. Meanwhile, the
value we have provided our customers with the MarketPlace offering
has further bolstered our relationships with customers. Our network
creates value far beyond the transaction, as we are perhaps the
only partner who can help customers source, vet, and transact
business across the entire supply chain.”
Fiscal 2021 Year to Date
Results (nine
months ended March 31, 2021 vs. nine months ended March 31,
2020):
Total revenue increased 15% to $16.4 million for the nine months,
as compared to $14.3 million during the same period a year ago.
Total operating expense was $14.7 million, an increase of 11% from
$13.3 million a year ago. GAAP net income was $3.0 million versus
$1.1 million a year ago, and GAAP net income to common shareholders
was $2.5 million, or $0.13 per diluted share, compared to $674,000,
or $0.03 per diluted share, a year ago.
Third Quarter
Financial Results (three months ended March 31,
2021 vs. three months ended March 31, 2020):
Total revenue increased 30% to $6.0 million as compared to $4.6
million due largely to growth in MarketPlace revenue and a 13%
increase in recurring revenue. Total operating expense increased
21% to $5.3 million due to increased cost of revenue and product
support due to a greater portion of MarketPlace revenue. GAAP net
income was $773,000, versus $272,000. GAAP net income to common
shareholders was $627,000, or $0.03 per diluted share, compared to
$125,000, or $0.01 per diluted share.
Balance Sheet:
The Company had $23.2 million in cash and cash equivalents at March
31, 2021, compared to $17.9 million at March 31, 2020 and $20.3
million at June 30, 2020.
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 17th
Time: 4:15 p.m.
ET (1:15 P.M. PT)
TOLL-FREE
1-877-300-8521
TOLL/INTERNATIONAL
1-412-317-6026
Conference ID:
10156464
Replay Dial-In
Numbers:
TOLL-FREE
1-844-512-2921
TOLL/INTERNATIONAL
1-412-317-6671
From: 5/17/21 @
7:15 P.M. Eastern Time
To: 6/17/21 @
11:59 P.M. Eastern Time
Replay Pin Number: 10156464
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.
Investor Relations Contact:
John Merrill, CFO
investor-relations@parkcitygroup.com
Or
FNK IR
Rob Fink
646.809.4048
rob@fnkir.com
PARK CITY GROUP, INC.
Consolidated Condensed
Balance Sheets
(Unaudited)
|
Assets
|
March
31,
2021
|
June
30,
2020
|
|
Current
Assets
|
|
|
|
Cash
|
$23,176,092
|
$20,345,330
|
|
Receivables, net of
allowance for doubtful accounts of $253,037 and $251,954 at March 31, 2021 and June 30,
2020, respectively
|
4,598,701
|
4,007,316
|
|
Contract asset –
unbilled current portion
|
2,390,104
|
2,300,754
|
|
Prepaid expense and other
current assets
|
1,108,589
|
495,511
|
|
|
|
|
|
Total
Current Assets
|
31,273,486
|
27,148,911
|
|
|
|
|
|
Property
and equipment, net
|
2,673,705
|
3,003,402
|
|
|
|
|
|
Other
Assets:
|
|
|
|
Deposits, and other
assets
|
22,414
|
22,414
|
|
Prepaid expense –
less current portion
|
59,989
|
77,030
|
|
Contract asset –
unbilled long-term portion
|
43,052
|
838,726
|
|
Operating lease –
right-of-use asset
|
717,241
|
781,137
|
|
Customer
relationships
|
558,450
|
657,000
|
|
Goodwill
|
20,883,886
|
20,883,886
|
|
Capitalized software costs,
net
|
-
|
18,539
|
|
|
|
|
|
Total
Other Assets
|
22,285,032
|
23,278,732
|
|
|
|
|
|
Total
Assets
|
$56,232,223
|
$53,431,045
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$1,498,801
|
$407,497
|
|
Accrued
liabilities
|
1,705,269
|
1,123,528
|
|
Contract liability –
deferred revenue
|
1,392,990
|
1,845,347
|
|
Lines of
credit
|
6,000,000
|
4,660,000
|
|
Operating lease liability
– current
|
89,041
|
85,767
|
|
Current portion of notes
payable
|
-
|
310,242
|
|
Current portion of paycheck
protection program loans
|
-
|
479,866
|
|
|
|
|
|
Total
current liabilities
|
10,686,101
|
8,912,247
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
Operating lease liability
– less current portion
|
628,200
|
695,369
|
|
Notes payable – less
current portion
|
-
|
610,512
|
|
Paycheck protection program
loans
|
-
|
629,484
|
|
|
|
|
|
Total
liabilities
|
11,314,301
|
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 March 31, 2021 and June 30, 2020,
respectively
|
6,254
|
6,254
|
|
Series B-1
Preferred, 550,000 shares authorized; 212,402 shares issued and
outstanding at March 31, 2021 and June 30, 2020,
respectively
|
2,124
|
2,124
|
|
Common Stock, $0.01 par
value, 50,000,000 shares authorized; 19,478,038 and 19,484,485 issued and outstanding at March
31, 2021 and June 30, 2020, respectively
|
194,783
|
194,847
|
|
Additional paid-in
capital
|
75,094,601
|
75,271,097
|
|
Accumulated
deficit
|
(30,379,840)
|
(32,890,889)
|
|
|
|
|
|
Total
stockholders’ equity
|
44,917,922
|
42,583,433
|
|
|
|
|
|
Total
liabilities and stockholders’ equity
|
$56,232,223
|
$53,431,045
|
PARK CITY GROUP,
INC.
Consolidated Condensed Statements
of Operations
(Unaudited)
|
|
Three Months Ended
March 31,
|
Nine Months Ended
March 31,
|
||
|
|
2021
|
2020
|
2021
|
2020
|
|
|
|
|
||
|
Revenue
|
$6,022,540
|
$4,633,244
|
$16,422,146
|
$14,270,660
|
|
|
|
|
|
|
|
Operating
expense:
|
|
|
|
|
|
Cost of
services and product support
|
2,634,224
|
1.369,421
|
6,706,769
|
4,622,844
|
|
Sales and
marketing
|
1,155,266
|
1,654,189
|
3,643,602
|
4,515,569
|
|
General and
administrative
|
1,255,410
|
1,179,851
|
3,568,474
|
3,516,313
|
|
Depreciation
and amortization
|
259,343
|
192,860
|
769,440
|
609,037
|
|
|
|
|
|
|
|
Total
operating expense
|
5,304,243
|
4,396,321
|
14,688,285
|
13,263,763
|
|
|
|
|
|
|
|
Income from operations
|
718,297
|
236,923
|
1,733,861
|
1,006,897
|
|
|
|
|
|
|
|
Other
income (expense):
|
|
|
|
|
|
Interest
income
|
60,234
|
53,075
|
176,078
|
201,788
|
|
Interest
expense
|
(4,248)
|
(16,953)
|
(76,700)
|
(53,593)
|
|
Unrealized
gain (loss) on short term investments
|
(1,131)
|
-
|
54,434
|
-
|
|
Gain on
debt extinguishment
|
10,000
|
-
|
1,109,350
|
-
|
|
|
|
|
|
|
|
Income
before income taxes
|
783,152
|
273,045
|
2,997,023
|
1,155,092
|
|
|
|
|
|
|
|
(Provision)
for income taxes:
|
(9,955)
|
(1,058)
|
(46,141)
|
(41,651)
|
|
Net income
|
773,197
|
271,987
|
2,950,882
|
1,113,441
|
|
|
|
|
|
|
|
Dividends
on preferred stock
|
(146,611)
|
(146,611)
|
(439,833)
|
(439,833)
|
|
|
|
|
|
|
|
Net income applicable to common shareholders
|
$626,586
|
$125,376
|
$2,511,049
|
$673,608
|
|
|
|
|
|
|
|
Weighted
average shares, basic
|
19,555,000
|
19,588,000
|
19,511,000
|
19,714,000
|
|
Weighted
average shares, diluted
|
19,942,000
|
19,776,000
|
19,744,000
|
19,942,000
|
|
Basic
income per share
|
$0.03
|
$0.01
|
$0.13
|
$0.03
|
|
Diluted
income per share
|
$0.03
|
$0.01
|
$0.13
|
$0.03
|
PARK CITY GROUP,
INC.
Consolidated Condensed Statements
of Cash Flows
(Unaudited)
|
|
Nine Months
Ended March 31,
|
|
|
|
2021
|
2020
|
|
Cash flows
operating activities:
|
|
|
|
Net
income
|
$2,950,882
|
$1,113,441
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation
and amortization
|
769,440
|
609,037
|
|
Amortization
of operating right of use asset
|
63,896
|
60,793
|
|
Bad debt
expense
|
516,694
|
291,630
|
|
Stock
compensation expense
|
249,733
|
375,000
|
|
Gain on
debt extinguishment
|
(1,109,350)
|
-
|
|
(Increase)
decrease in:
|
|
|
|
Accounts
receivables
|
(1,508,097)
|
(350,908)
|
|
Long-term
receivables, prepaids and other assets
|
293,042
|
884,429
|
|
(Decrease)
increase in:
|
|
|
|
Accounts
payable
|
1,091,304
|
(187,291)
|
|
Accrued
liabilities
|
549,537
|
(247,233)
|
|
Operating
lease liability
|
(63,895)
|
(60,794)
|
|
Deferred
revenue
|
(452,633)
|
(213,677)
|
|
Net cash provided by operating activities
|
3,350,553
|
2,274,427
|
|
|
|
|
|
Cash flows
investing activities:
|
|
|
|
Purchase of
property and equipment
|
(105,391)
|
(642,922)
|
|
Net cash used in investing activities
|
(105,391)
|
(642,922)
|
|
|
|
|
|
Cash flows
financing activities:
|
|
|
|
Net
increase in lines of credit
|
1,340,000
|
340,000
|
|
Common
stock buyback/retirement
|
(508,243)
|
(2,158,471)
|
|
Proceeds
from employee stock plan
|
114,430
|
120,923
|
|
Dividends
paid
|
(439,833)
|
(439,833)
|
|
Payments on
notes payable
|
(920,754)
|
(219,992)
|
|
Net cash used in financing activities
|
(414,400)
|
(2,357,373)
|
|
|
|
|
|
Net
increase (decrease) in cash and cash equivalents
|
2,830,762
|
(725,868)
|
|
|
|
|
|
Cash and
cash equivalents at beginning of period
|
20,345,330
|
18,609,423
|
|
Cash and cash equivalents at end of period
|
$23,176,092
|
$17,883,555
|
|
|
|
|