Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Park City Group Reports Fiscal Third Quarter 2016 Results

TRAK

SALT LAKE CITY, May 09, 2016 (GLOBE NEWSWIRE) -- 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 third quarter ended March 31, 2016.

Strategic and Financial Highlights:
                       
      3 Months Ended   9 Months Ended  
FY ENDS June 3/31/2016   3/31/2015   % Change   3/31/2016   3/31/2015   % Change  
($ in 000)                          
 
"PRO FORMA"                        
Total Revenues $ 3,580     $ 2,871       25 %   $ 10,216     $ 8,630       18 %  
Net Income (Loss) $ 295     $ (1,318 )   NM   $ 169     $ (3,685 )   NM  
                             
"AS REPORTED"                        
Total Revenues $ 3,580     $ 3,391       6 %   $ 10,216     $ 10,204       0 %  
Net Income (Loss) $ 295     $ (550 )   NM   $ 169     $ (1,467 )   NM  
                             

References to pro forma financial results reflect the acquisition of ReposiTrak, the elimination of fees paid to Park City Group by ReposiTrak, and the recognition of ReposiTrak’s revenue in the comparable periods.

  • Third quarter revenue reached a record $3.6 million, ahead of internal expectations – “Overall revenue grew 25% on a pro forma basis and 6% on a reported basis, driven by triple-digit growth in ReposiTrak and double-digit growth in our Supply Chain business,” said Randall K. Fields, Park City Group’s Chairman and CEO. “The strength in our business is giving us the flexibility to accelerate convergence and expand our product offering, business model, and target customer base.”  
  • Positive fiscal 3Q16 GAAP net income transitioned the Company to year-to-date profitability – Fiscal 3Q16 net income was $295,000, versus a loss of ($550,000) a year ago due to higher revenues and lower operating expenses. “We expect to be profitable for the full fiscal year and in the foreseeable future,” said Mr. Fields. “We believe growing profitability and our strong balance sheet, with $11.3 million in cash, are key factors potential customers look at when selecting a food safety partner.” 
  • Rising food safety issues prompting industry executives to action – “High-profile outbreaks of foodborne illness, a surge in litigation and criminal prosecutions, and the recent introduction of expanded regulations has led to growing awareness of the implications of food safety risks and the problems associated with non-compliance. Interest in ReposiTrak is continuing to rise, and participation in our informational seminars is increasing dramatically,” said Mr. Fields.
  • ReposiTrak connections growing with hub expansion, pipeline of hubs continues to grow – “We finished the quarter with more than 6,500 supplier connections and are on track to reach our goals,” said Mr. Fields. “We continue to see benefits from ongoing process improvements and a growing number of ReposiTrak hubs. During the quarter we announced three additional hubs for a total of twenty-two, and our pipeline of new hubs and potential connections continues to grow.”
  • Strategic relationships and expanded offering strengthen position as food safety leader – “We have begun hosting SQF, one of the largest food safety auditing systems, within the ReposiTrak database,” said Mr. Fields. “SQF is the globally recognized standard for food safety audits, used by more than 9,000 facilities of many of the largest food companies in the world. We believe this new capability will significantly enhance ReposiTrak’s network, making it the place for food safety.”
  • Successfully launched unified application portal to greater than expected interest – “Our customers are realizing food safety compliance is only part of an effective program of supply chain management. We have packaged our supply chain and food safety applications in a unified portal and have begun deploying it with customers,” said Mr. Fields. “Interest in the portal is higher than we expected and we anticipate several other engagements in the near future.”
  • ReposiTrak’s eCommerce platform “Marketplace” to launch soon – “Marketplace will be an online exchange and eCommerce application which will provide ReposiTrak users a place to publish a catalog of their goods and market themselves to retailers and wholesalers looking for suppliers that meet their food safety and product requirements. By adding the opportunity for suppliers to increase sales, Marketplace will significantly enhance ReposiTrak’s value proposition to its users,” said Mr. Fields.

Financial Results Summary

Fiscal Third Quarter Results: Total revenue rose 25% to $3.58 million for the three months ended March 31, 2016, from $2.87 million a year ago on a pro forma basis. This was a 6% increase from $3.39 million on a reported basis. The Company believes that pro forma comparisons, which reflect the acquisition of ReposiTrak, are a better of measure of actual performance as it gives a more accurate comparison of revenue from ongoing business activities in the comparable periods. Total operating expenses during the quarter were $3.25 million, a 22% decrease from $4.17 million a year ago on a pro forma basis, and a 19% decrease from $4.01 million on a reported basis, with reductions in every expense category. As a result, net income was $295,000, versus a loss of ($1.3) million a year ago on a pro forma basis, and a loss of ($550,000) on a reported basis. Net income to shareholders was $118,000, or $0.01 per common share, as compared to a loss of ($3.6) million, or ($0.20) per share, on a pro forma basis, and a loss of ($2.8) million, or ($0.16) per share, on a reported basis. The Company ended the fiscal third quarter of 2016 with $11.3 million in cash and marketable securities.

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.  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 the acquisition of ReposiTrak, 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 March 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.

The Company will host a conference call at 4:15 P.M. Eastern today, May 9, 2016 to discuss the results. Investors and interested parties may participate in the call by dialing 1-888-504-7963 and referring to Conference ID: 2421614. The conference call is also being webcast and is available via the investor relations section of the Company’s website, www.parkcitygroup.com

Park City Group, Inc.                        
INCOME STATEMENT                        
                             
      "AS REPORTED"   "AS REPORTED"  
                             
      3 Months Ended   9 Months Ended  
FY ENDS June       3/31/2016       3/31/2015       % Change
    3/31/2016       3/31/2015       % Change
 
                             
Total Revenues     $    3,580,329     $    3,390,933       6 %   $  10,215,752     $    10,204,456       0 %  
                             
Operating Expenses                            
Cost of Services       1,050,074       1,245,353       (16 %)     3,223,548       3,949,136       (18 %)  
Sales and Marketing       1,264,036       1,547,553       (18 %)     4,107,676       4,419,384       (7 %)  
General and Administrative       807,542       1,026,751       (21 %)     2,317,316       2,908,653       (20 %)  
Depreciation and Amortization       125,939       190,041       (34 %)     382,453       564,800       (32 %)  
Total Operating Expenses       3,247,591       4,009,698       (19 %)     10,030,993       11,841,973       (15 %)  
                             
Income (Loss) from Operations         332,738         (618,765 )    NM       184,759         (1,637,517 )    NM  
                             
Other Income (Expenses)                            
Interest Income (Expenses)       (10,986 )     68,911     NM     10,328       170,724       (94 %)  
Loss on Disposal of Investment       (26,684 )     -     NM     (26,128 )     -     NM  
                             
Income (Loss) Before Taxes       295,068       (549,854 )   NM     168,959       (1,466,793 )   NM  
                             
(Provision) Benefit for Taxes       -       -     NM     -       -     NM  
                             
Net Income (Loss)         295,068         (549,854 )    NM       168,959         (1,466,793 )    NM  
                             
Dividends on Preferred Stock     (176,588 )     (135,699 )     30 %     (546,536 )     (444,645 )     23 %  
Series B Restructure     -       (2,141,980 )   NM     -       (2,141,980 )   NM  
                             
Net Income (Loss) to Common Shareholders $ 118,480     $ (2,827,533 )   NM   $ (377,577 )   $ (4,053,418 )     (91 %)  
                             
GAAP EPS   $ 0.01     $ (0.16 )   NM   $ (0.02 )   $ (0.24 )     (92 %)  
                             
Weighted Average Shares, Basic       19,196,000       17,334,000       11 %     19,128,000       17,204,000       11 %  
                                                     


Park City Group, Inc.                        
RECONCILIATION OF NON-GAAP ITEMS                            
                             
      "AS REPORTED"   "AS REPORTED"  
                             
      3 Months Ended   9 Months Ended  
FY ENDS June       3/31/2016       3/31/2015       % Change
    3/31/2016       3/31/2015       % Change
 
                             
Net Income (Loss)     $ 295,068     $ (549,854 )   NM   $ 168,959     $ (1,466,793 )   NM  
                             
Adjustments:                          
Depreciation and Amortization     125,939       190,041       (34 %)     382,453       564,800       (32 %)  
Bad Debt Expense       9,564       32,885       (71 %)     43,140       124,982       (65 %)  
Interest Income (Expenses)       10,986       (68,911 )   NM     (10,328 )     (170,724 )     (94 %)  
Stock Compensation Expense       290,343       546,551       (47 %)     775,202       1,796,386       (57 %)  
                             
Adjusted EBITDA     $    731,900     $    150,712       386 %   $    1,359,426     $    848,651       60 %  
                             
                             
Net Income (Loss)     $ 295,068     $ (549,854 )   NM   $ 168,959     $ (1,466,793 )   NM  
                             
Adjustments:                          
Stock Compensation Expense       290,343       546,551       (47 %)     775,202       1,796,386       (57 %)  
Acquisition Related Amortization       32,850       105,579       (69 %)     98,550       316,737       (69 %)  
                             
Adjusted non-GAAP Net Income (Loss)       618,261       102,276       505 %     1,042,711       646,330       61 %  
                             
Dividends on Preferred Stock       (176,588 )     (135,699 )     30 %     (546,536 )     (444,645 )     23 %  
                             
Adjusted non-GAAP Net Income (Loss)                            
to Common Shareholders     $ 441,673     $ (33,423 )   NM   $ 496,175     $ 201,685       146 %  
                             
Adjusted Non-GAAP EPS $ 0.02     $ (0.00 )   NM   $ 0.03     $ 0.01       121 %  
                             
Weighted Average Shares, Basic       19,196,000       17,334,000       11 %     19,128,000       17,204,000       11 %  
                             


Park City Group, Inc.                        
INCOME STATEMENT                            
                             
      "PRO FORMA" for ReposiTrak Acquisition   "PRO FORMA" for ReposiTrak Acquisition  
                             
      3 Months Ended   9 Months Ended  
FY ENDS June       3/31/2016       3/31/2015     % Change     3/31/2016       3/31/2015     % Change  
                             
Total Revenues     $    3,580,329     $    2,870,646       25 %   $    10,215,752     $    8,630,284       18 %  
                             
Operating Expenses                            
Cost of Services       1,050,074       1,245,353       (16 %)     3,223,548       3,949,136       (18 %)  
Sales and Marketing       1,264,036       1,666,321       (24 %)     4,107,676       4,730,288       (13 %)  
General and Administrative       807,542       1,071,368       (25 %)     2,317,316       3,026,007       (23 %)  
Depreciation and Amortization       125,939       190,041       (34 %)     382,453       564,800       (32 %)  
Total Operating Expenses       3,247,591       4,173,083       (22 %)     10,030,993       12,270,231       (18 %)  
                             
Income (Loss) from Operations         332,738         (1,302,437 )    NM       184,759         (3,639,947 )    NM  
                             
Other Income (Expenses)                            
Interest Income (Expenses)       (10,986 )     (15,421 )   NM     10,328       (45,255 )   NM  
Loss on Disposal of Investment       (26,684 )     -     NM     (26,128 )     -     NM  
                             
Income (Loss) Before Taxes       295,068       (1,317,858 )   NM     168,959       (3,685,202 )   NM  
                             
(Provision) Benefit for Taxes       -       -     NM     -       -     NM  
                             
Net Income (Loss)         295,068         (1,317,858 )    NM       168,959         (3,685,202 )    NM  
                             
Dividends on Preferred Stock       (176,588 )     (135,699 )     30 %     (546,536 )     (444,645 )     23 %  
Series B Restructure     -       (2,141,980 )   NM     -       (2,141,980 )   NM  
                             
Net Income (Loss) to Common Shareholders $ 118,480     $ (3,595,537 )   NM   $ (377,577 )   $ (6,271,827 )     (94 %)  
                             
GAAP EPS   $ 0.01     $ (0.20 )   NM   $ (0.02 )   $ (0.35 )     (94 %)  
                             
Weighted Average Shares, Basic       19,196,000       18,207,000       5 %     19,128,000       18,077,000       6 %  
                             

 

Park City Group, Inc.                        
RECONCILIATION OF NON-GAAP ITEMS                            
                             
      "PRO FORMA" for ReposiTrak Acquisition   "PRO FORMA" for ReposiTrak Acquisition  
                             
      3 Months Ended   9 Months Ended  
FY ENDS June       3/31/2016       3/31/2015     % Change     3/31/2016       3/31/2015     % Change  
                             
Net Income (Loss)     $ 295,068     $ (1,317,858 )   NM   $ 168,959     $ (3,685,202 )   NM  
                             
Adjustments:                            
Depreciation and Amortization       125,939       190,041       (34 %)     382,453       564,800       (32 %)  
Bad Debt Expense       9,564       32,885       (71 %)     43,140       124,982       (65 %)  
Interest Income (Expenses)       10,986       15,421     NM     (10,328 )     45,255     NM  
Stock Compensation Expense       290,343       546,551       (47 %)     775,202       1,796,386       (57 %)  
                             
Adjusted EBITDA     $    731,900     $    (532,960 )    NM   $    1,359,426     $    (1,153,779 )    NM  
                             
                             
Net Income (Loss)     $ 295,068     $ (1,317,858 )   NM   $ 168,959     $ (3,685,202 )   NM  
                             
Adjustments:                          
Stock Compensation Expense       290,343       546,551       (47 %)     775,202       1,796,386       (57 %)  
Acquisition Related Amortization       32,850       138,429       (76 %)     98,550       415,287       (76 %)  
                             
Adjusted non-GAAP Net Income (Loss)       618,261       (632,878 )     (198 %)     1,042,711       (1,473,529 )   NM  
                             
Dividends on Preferred Stock       (176,588 )     (135,699 )   NM     (546,536 )     (444,645 )     23 %  
                             
Adjusted non-GAAP Net Income (Loss)                            
to Common Shareholders     $ 441,673     $ (768,577 )   NM   $ 496,175     $ (1,918,174 )   NM  
                             
Adjusted Non-GAAP EPS $ 0.02     $ (0.04 )   NM   $ 0.03     $ (0.11 )   NM  
                             
Weighted Average Shares, Basic       19,196,000       18,207,000       5 %     19,128,000       18,077,000       6 %  
                             


Park City Group, Inc.          
CONSOLIDATED BALANCE SHEET          
           
       
FY ENDS June     3/31/2016        6/30/2015    
           
Assets          
           
Current Assets:          
Cash & Equivalents   $ 11,333,020     $ 11,325,572    
Accounts Receivables     2,830,361       1,640,591    
Prepaid and Other Current Assets     414,040       463,427    
Total Current Assets     14,577,421       13,429,590    
           
Property and Equipment, net     512,526       764,442    
           
Other Assets          
Deposits and Other Assets     14,866       14,866    
Investments     471,584       -    
Capitalized software costs, net     109,895       -    
Customer Relationships     1,215,450       1,314,000    
Goodwill     20,883,886       20,883,886    
Total Other Assets     22,695,681       22,212,752    
           
Total Assets   $    37,785,628     $    36,406,784    
           
           
Liabilities          
           
Current Liabilities          
Accounts Payable   $ 646,383     $ 817,119    
Accrued Liabilities     1,476,750       2,521,111    
Deferred Revenue     2,551,844       2,331,920    
Lines of Credit     2,500,000       2,500,000    
Notes Payable     260,091       227,301    
Total Current Liabilities     7,435,068       8,397,451    
           
Long-Term Liabilities          
Notes Payable, Less Current Portion     536,249       349,192    
Other Long-Term Liabilities     65,944       75,518    
Total Long Term Liabilities     602,193       424,710    
           
Total Liabilities       8,037,261         8,822,161    
           
Shareholder Equity          
           
Series B Preferred   $ 6,254     $ 6,254    
Series B-1 Preferred     1,528       742    
Common Stock     192,073       188,759    
Additional Paid-In Capital     72,833,717       70,296,496    
Accumulated Deficit     (43,285,205 )     (42,907,628 )  
           
Total Shareholder Equity       29,748,367         27,584,623    
           
Total Liabilities and Shareholder Equity   $    37,785,628     $    36,406,784    
           


Park City Group, Inc.          
CONSOLIDATED STATEMENT OF CASH FLOWS          
           
    9 Months Ended  
FY ENDS June   3/31/16   3/31/15  
           
Cash Flows From Operating Activities:          
Net Income (Loss)   $ 168,959     $ (1,466,793 )  
           
Adjustments to Reconcile Net Income (Loss), in Operating Activities:          
Depreciation and Amortization     382,453       564,800    
Bad Debt Expense     43,140       124,982    
Charitable non-cash donations     -       157,950    
Stock Compensation Expense     775,202       1,796,386    
(Gain) Loss on the Sale of Investments     26,128       -    
Decrease (Increase) in Trade Receivables     (1,232,910 )     (114,988 )  
Decrease (Increase) in Prepaid Expenses and Other Assets     49,387       (419,887 )  
Increase (Decrease) in Accounts Payable     (170,736 )     84,713    
Increase (Decrease) in Accrued Liabilities     (59,270 )     26,004    
Increase (Decrease) in Deferred Revenue     219,924       (244,391 )  
           
 Net Cash From (Used In) Operating Activities       202,277         508,776    
           
Cash Flows From Investing Activities:          
Purchase of Marketable Securities     (4,639,036 )     -    
Cash from Sale of Marketable Securities     4,612,908       -    
Cash Received (Advanced) on Notes Receivable     -       (1,059,460 )  
Sale (Purchase) of Property and Equipment     (31,987 )     (362,089 )  
Capitalization of software costs     (109,895 )     -    
Purchase of Available for sale securities     (471,584 )     -    
           
 Net Cash From (Used In) Investing Activities       (639,594 )       (1,421,549 )  
           
Cash Flows From Financing Activities:          
Proceeds from Issuance of Notes Payable     396,000       172,795    
Proceeds from Employee Stock Plans     199,848       203,211    
Proceeds from exerice of warrants     33,002       -    
Proceeds from issuance of common stock     -       903,469    
Series B Redemption     -       (7,500 )  
Dividends Paid     (7,932 )     (154,473 )  
Payments on Notes Payable and Capital Leases     (176,153 )     (190,127 )  
           
 Net Cash From (Used In) Financing Activities       444,765         927,375    
           
Net Increase (Decrease) in Cash       7,448         14,602    
           
Cash at Beginning of Period     11,325,572       3,352,559    
           
Cash at End of Period   $    11,333,020     $    3,367,161    
           

Non-GAAP Financial Measures and Pro-Forma Results 

This press release includes the following financial measures defined as “non-GAAP financial measures” by the Securities and Exchange Commission: non-GAAP EBITDA, non-GAAP earnings per share, net debt and free cash flow. 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, charges to consolidate and integrate recently acquired businesses, costs of closing corporate facilities, 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, charges to consolidate and integrate recently acquired businesses, costs for closing corporate facilities, amortization of acquired intangible assets and other one-time cash and non-cash charges. Net debt is the total debt balance less the cash balance. Free cash flow includes net cash provided (used) by operating activities less replacement purchases of property and equipment. 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 provides consistency in financial reporting.

In addition to reporting financial measures on a GAAP and non-GAAP basis, management has elected to disclose certain financial measures on a pro-forma basis because it believes this pro-forma comparison is more appropriate to its current accounting treatment for the business. The pro-forma financial results of the Company presented in this release reflect the elimination of Park City Group’s historical accounting treatment of ReposiTrak as a customer of the Company and present the Company’s prior financial results as if ReposiTrak were a wholly-owned subsidiary of the Company.

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: Jeff Elliott Three Part Advisors, LLC 972-423-7070 Dave Mossberg Three Part Advisors, LLC 817-310-0051

Primary Logo