Fourth Quarter 2023 Net Income of $1.4
Million or $0.07 EPS, vs. Net Income of $1.1 Million, or $0.05 EPS
in F4Q 2022
Park City Group, Inc. (NASDAQ: PCYG), parent company of
ReposiTrak, the world's largest food traceability and regulatory
compliance network, built upon its proven inventory management and
out-of-stock reduction SaaS platform, today announced financial
results for the fourth quarter (“FQ4 2023”) and full-year period
(“FY 2023”) ended June 30, 2023.
Fiscal Full-Year Financial Highlights:
- Total revenue increased 6% to $19.1 million from $18.0
million.
- Recurring revenue increased 7% representing 99.6% of total
revenue.
- Total operating expenses increased 3% to $14.0 million from
$13.6 million.
- Total operating income increased 15% to $5.1 million from $4.4
million last year.
- GAAP net income for the period increased 40% to $5.6 million
from $4.0 million last year.
- Full-year net income to common shareholders was $5.0 million,
up 46% from $3.4 million last year.
- Full-year EPS of $0.27, up 52% from $0.18 last year.
- Full-year cash from operations of $8.9 million, up 45% from
$6.1 million last year.
- During the fiscal year, the Company repurchased 231,597 shares
at an average price of $5.65 for a total of $1.3 million. In
addition, the Company paid $1.4 million in cash dividends and fully
repaid its line of credit of $2.6 million.
- Cash at June 30, 2023 was $24.0 million.
Fiscal Fourth Quarter Financial Highlights:
- Fourth quarter total revenue increased 5% to $4.8 million from
$4.6 million.
- Recurring revenue increased 6% for the quarter and represented
99.5% of total revenue.
- Quarterly operating expenses increased 5% to $3.6 million from
$3.5 million.
- Quarterly operating income increased 5% to $1.2 million from
$1.1 million last year.
- Quarterly GAAP net income increased 26% to $1.4 million from
$1.1 million last year.
- Quarterly net income to common shareholders was $1.2 million,
up 30% from $950,000 last year.
- Quarterly EPS of $0.07, up 34% from $0.05 last year.
- During the quarter, the Company repurchased 47,847 shares at an
average price of $6.86 for a total of $328,129.
Randall K. Fields, Chairman and CEO of Park City Group
commented, “As a trusted provider in end-to-end solutions for our
customers, we focused first on supplier compliance and supply chain
efficiency, expanding further to out-of-stock management, and now
traceability. Our ability to provide customers with more highly
valuable solutions will enable our long-term growth simultaneously
providing additional cash.”
“To support our traceability and the ReposiTrak Traceability
Network® (RTN), we continue to add senior personnel, and prune
certain high-touch, non-core revenue,” added Mr. Fields. “We have
now validated that the RTN can efficiently, accurately and
cost-effectively track products from end-to-end, as required by
Rule 204. We are working collaboratively with wholesalers,
retailers, distributors and now individual stores, simultaneously
securing key endorsements from industry leaders, clearly
establishing our position as the industry leader in providing an
inter-operable, affordable traceability solution that meets the FDA
requirements.”
Mr. Fields continued, “While the RTN revenue contribution in
2023 was modest, we believe the contribution will be very
meaningful in 2024 and beyond. We have already signed four large
customers, representing thousands of suppliers and stores and
dozens of distribution centers. Our success in overcoming the
challenging requirements of the FDA Traceability rules in grocery,
this has opened the door to additional opportunities within other
vertical markets affected by the FDA traceability rule, such as
restaurants, and convenience stores.”
Fiscal Year Financial Results (12 months ended June 30,
2023, vs. 12 months ended June 30, 2022):
Total revenue was $19.10 million, up 6% as compared to $18.05
million in the prior-year period. Total operating expenses of
$14.01 million were up 3% compared to $13.63 million last year.
GAAP net income was $5.59 million compared to $4.00 million. Net
income to common shareholders was $5.00 million, or $0.27 per
diluted share, compared to $3.42 million, or $0.18 per diluted
share.
Fourth Fiscal Quarter Financial Results (three months
ended June 30, 2023, vs. three months ended June 30, 2022):
Total revenue was up 5% to $4.80 million as compared to $4.58
million in the prior-year fourth quarter. Recurring revenue grew
6%. Total operating expenses were $3.64 million, up 5% compared to
$3.46 million last year, reflecting a 5% increase in general and
administrative expenses and investments in traceability and other
growth initiatives. GAAP net income was $1.38 million compared to
$1.10 million. Net income to common shareholders was $1.23 million,
or $0.07 per diluted share, compared to $950,000, or $0.05 per
diluted share.
Return of Capital:
In the fourth quarter, the Company repurchased 47,847 shares of
common stock at an average price of $6.86 for a total of $328,129.
Since inception, the Company has repurchased 1.95 million shares of
common stock for $11.45 million at an average price per share of
$5.91. The Company has approximately $9.5 million remaining on the
$21 million total buyback authorization since inception.
In September 2022, the Company’s Board of Directors declared a
quarterly cash dividend of $0.015 per share ($0.06 per year).
Quarterly cash dividends will be paid to shareholders on or about
45 days following each quarterly period with the September 29
dividend expected to be paid in November.
During fiscal 2023, the Company utilized $1.3 million to
repurchase and retire common shares, paid $1.4 million in cash
dividends to common shareholders, while simultaneously paying off
$2.6 million of its remaining line of credit.
Balance Sheet:
The Company had $24.0 million in cash and cash equivalents at
June 30, 2023, compared to $21.5 million at June 30, 2022. The
Company had nothing drawn on its working line of credit as of June
30, 2023 compared to $2.6 million at June 30, 2022.
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: Thursday, September
28, 2023 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:
13741176
Replay Dial-In Numbers: Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671 Replay Start: Thursday,
September 28, 2023, 7:15 p.m. ET Replay Expiry: Saturday, October
28, 2023 at 11:59 p.m. ET Replay Pin Number: 13741176
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, 2023, 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 Balance
Sheets
June 30, 2023
June 30, 2022
Assets
Current Assets
Cash
$
23,990,879
$
21,460,948
Receivables, net of allowance for doubtful
accounts of $170,103 and $206,093 at June 30, 2023 and 2022,
respectively
2,523,019
3,165,200
Contract asset – unbilled current
portion
186,959
649,433
Prepaid expense and other current
assets
573,763
1,307,128
Total Current Assets
27,274,620
26,582,709
Property and equipment, net
986,300
764,517
Other Assets:
Deposits and other assets
22,414
22,414
Prepaid expense – less current portion
36,282
82,934
Contract asset – unbilled long-term
portion
108,052
108,052
Operating lease – right-of-use asset
310,796
368,512
Customer relationships
262,800
394,200
Goodwill
20,883,886
20,883,886
Capitalized software costs, net
698,281
114,488
Total Other Assets
22,322,511
21,974,486
Total Assets
$
50,583,431
$
49,321,712
Liabilities and Shareholders’
Equity
Current liabilities
Accounts payable
$
431,387
$
690,638
Accrued liabilities
1,620,000
1,206,284
Contract liability – deferred revenue
1,903,001
1,555,143
Lines of credit
-
2,590,907
Operating lease liability – current
58,771
53,862
Notes payable and financing leases –
current
219,262
-
Total current liabilities
4,232,421
6,096,834
Long-term liabilities
Operating lease liability – less current
portion
263,047
321,818
Notes payable and financing leases – less
current portion
206,032
-
Total liabilities
4,701,500
6,418,652
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 June 30, 2023
and 2022;
6,254
6,254
Series B-1 Preferred, 550,000 shares
authorized; 212,402 shares issued and outstanding at June 30, 2023
and 2022, respectively
2,124
2,124
Common Stock, $0.01 par value, 50,000,000
shares authorized; 18,309,051 and 18,460,538 issued and outstanding
at June 30, 2023 and 2022, respectively
183,093
184,608
Additional paid-in capital
67,732,887
68,653,361
Accumulated deficit
(22,042,427
)
(25,943,287
)
Total stockholders’
equity
45,881,931
42,903,060
Total liabilities and stockholders’
equity
$
50,583,431
$
49,321,712
PARK CITY GROUP, INC. AND
SUBSIDIARIES
Consolidated Statements of
Operations
For the Years Ended
June 30,
2023
2022
Revenue
$
19,098,910
$
18,046,941
Operating expense:
Cost of revenue and product support
3,309,345
3,186,712
Sales and marketing
4,933,405
4,853,926
General and administrative
4,685,783
4,716,131
Depreciation and amortization
1,079,799
875,551
Total operating expense
14,008,332
13,632,320
Income from operations
5,090,578
4,414,621
Other income (expense):
Interest income
821,777
199,124
Interest expense
(60,990
)
(44,307
)
Realized loss on short term
investments
-
(347,645
)
Unrealized loss on short term
investments
(9,752
)
-
Other gain (loss)
70,047
(88,730
)
Income before income taxes
5,911,660
4,133,063
(Provision) for income taxes
(321,371
)
(129,968
)
Net income
5,590,289
4,003,095
Dividends on Preferred Stock
(586,444
)
(586,444
)
Net income applicable to common
shareholders
$
5,003,845
$
3,416,651
Weighted average shares, basic
18,406,000
19,087,000
Weighted average shares, diluted
18,766,000
19,380,000
Basic earnings per share
$
0.27
$
0.18
Diluted earnings per share
$
0.27
$
0.18
PARK CITY GROUP, INC. AND
SUBSIDIARIES
Consolidated Statements of
Cash Flows
For the Years Ended
June 30,
2023
2022
Cash flows from operating activities:
Net income
$
5,590,289
$
4,003,095
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
1,079,799
875,551
Amortization of operating right of use
asset
57,716
326,858
Stock compensation expense
390,716
422,101
Bad debt expense
1,300,000
621,667
Gain on disposal of assets
-
(24,737
)
Loss on sale of property and equipment
-
107,820
(Increase) decrease in:
Trade receivables
(195,345
)
412,502
Long-term receivables, prepaids and other
assets
559,009
(527,126
)
(Decrease) increase in:
Accounts payable
(259,251
)
223,444
Operating lease liability
(53,862
)
(319,690
)
Accrued liabilities
43,090
180,330
Deferred revenue
347,858
(200,198
)
Net cash provided by operating
activities
8,860,019
6,101,617
Cash flows from investing activities:
Sale of property and equipment
-
1,374,085
Purchase of property and equipment
(133,944
)
(50,823
)
Capitalization of software development
costs
(769,243
)
-
Net cash (used in) provided by investing
activities
(903,187
)
1,323,262
Cash flows from financing activities:
Net (decrease) in lines of credit
(2,590,907
)
(3,409,093
)
Common stock buy-back/retirement
(1,309,323
)
(6,147,893
)
Proceeds from employee stock plan
92,727
109,177
Dividends paid
(1,414,912
)
(586,444
)
Payments on notes payable and capital
leases
(204,486
)
-
Net cash used in financing activities
(5,426,901
)
(10,034,253
)
Net (decrease) increase in cash and cash
equivalents
2,529,931
(2,609,374
)
Cash and cash equivalents at beginning of
period
21,460,948
24,070,322
Cash and cash equivalents at end of
period
$
23,990,879
$
21,460,948
Supplemental Disclosure of Cash Flow
Information
Cash paid for income taxes
$
296,484
$
185,068
Cash paid for interest
$
59,081
$
45,777
Cash paid for operating leases
$
71,157
$
105,084
Supplemental Disclosure of Non-Cash
Investing and Financing Activities
Common Stock to pay accrued
liabilities
$
294,607
$
384,239
Dividends accrued on Preferred Stock
$
586,444
$
586,444
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230928926836/en/
Investor Relations Contact: John Merrill, CFO
Investor-relations@parkcitygroup.com
Or
FNK IR Rob Fink 646.809.4048 rob@fnkir.com
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