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. (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, 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 16^th

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. (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 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