Year-To-Date Net Income Increases 165% to $2.95 Million
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.
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 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210517005866/en/
Contacts
Investor Relations Contact:
John Merrill, CFO
investor-relations@parkcitygroup.com
or
FNK IR
Rob Fink
646.809.4048
rob@fnkir.com
