Onboarding of Traceability Customers Continues
to Accelerate; Company Ends Quarter with $24.5 Million in Cash, No
Debt
ReposiTrak (NYSE: TRAK), 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 third fiscal quarter (“FQ3
2024”) ended March 31, 2024.
Third Quarter Financial Highlights:
- Third quarter total revenue increased 5% to $5.1 million from
$4.8 million.
- Recurring revenue increased 6%, net of the planned elimination
of high-touch, low-opportunity revenue, to $5.1 million from $4.8
million, representing approximately 99% of total revenue.
- Quarterly operating expense increased 15% to $3.8 million from
$3.3 million. The third fiscal quarter last year included
approximately $1 million in an Employee Retention Credit (“ERC”),
reducing general and administrative expenses.
- Quarterly operating income decreased 17% to $1.3 million from
$1.5 million last year. Excluding the non-recurring ERC credit in
the third fiscal quarter last year, operating income would have
increased approximately $800,000 year-over-year.
- Quarterly GAAP net income decreased 7% to $1.6 million from
$1.7 million last year. Excluding the non-recurring ERC credit in
the third fiscal quarter last year, net income would have increased
approximately $900,000 year-over-year.
- Quarterly net income to common shareholders was $1.4 million,
down 7% from $1.5 million last year. Excluding the non-recurring
ERC credit in the third fiscal quarter last year, net income to
common shareholders would have increased approximately $900,000
year-over-year.
- Quarterly EPS of $0.08, unchanged from the prior year.
- During the quarter, the Company redeemed 70,093 preferred
shares for the stated redemption price of $10.70 per share for a
total of $749,995.
- The Company finished the quarter with $24.5 million in cash and
no bank debt.
Randall K. Fields, Chairman and CEO of ReposiTrak, commented,
“We continue to add new retailers and suppliers to the ReposiTrak
Traceability Network. Revenue from traceability now represents
approximately 5% of our consolidated revenue, on an annualized
basis, and we are more confident than ever that Traceability will
double our revenue over the next three years. The production
facilities in hand that have been already been implemented, and
those in the queue to be implemented in the ReposiTrak Traceability
Network (RTN), already exceed our initial estimates for the market
size and represents an annual recurring revenue (ARR) that is
expected to double our revenue base over the next three years.”
“Meanwhile, we continue to maintain robust profitability,
returning capital to shareholders in the form of a cash dividend,
redeeming preferred shares, all while growing our cash balances,”
added Fields. “This approach will not change. ReposiTrak is the
clear leader in the rapidly unfolding traceability industry, as
evidenced by our market share, industry endorsements, and the
near-term investments are already beginning to lead to higher
revenue, earnings, and cash as the FSMA 204 deadline is right
around the corner.”
Third Fiscal Quarter Financial Results (three
months ended March 31, 2024, vs. three months ended March 31,
2023):
Total revenue was up 5% to $5.08 million as compared to $4.82
million in the prior-year third quarter. Total operating expenses
were $3.82 million, up 15% compared to $3.30 million last year.
General and administrative expenses increased by 48%. GAAP net
income was $1.55 million compared to $1.66 million. Net income to
common shareholders was $1.42 million, or $0.08 per diluted share,
compared to $1.52 million, or $0.08 per diluted share.
Year-to-Date Financial Results (nine months ended March
31, 2024, vs. nine months ended March 31, 2023):
Total revenue was up 7% to $15.27 million as compared to $14.30
million in the prior-year period. Total operating expense was
$11.57 million, up 12% compared to $10.37 million last year. The
third fiscal quarter last year included non-recurring Employee
Retention Credit benefit of approximately $1 million, reducing the
year-ago operating expense. Inclusive of the impact of this credit
in the year-ago quarter, GAAP net income was $4.38 million compared
to $4.21 million. Net income to common shareholders was $3.95
million, or $0.22 per basic and $0.21 per diluted share, compared
to $3.77 million, or $0.20 per basic and $0.20 per diluted share
last year.
Return of Capital:
In the third quarter of fiscal 2024, the Company redeemed
another 70,093 preferred shares at the stated redemption price of
$10.70 per share for a total of $749,995. The remaining amount of
the preferred share redemption is $7.46 million. As previously
announced, the Company anticipates redeeming all of its preferred
shares issued and outstanding over the next three years. In
addition, the Company has approximately $8 million remaining on the
$21 million total common share buyback authorization.
In September 2022, the Company’s Board of Directors declared a
quarterly cash dividend of $0.015 per share ($0.06 per year). In
November 2023, the Board of Directors approved a 10% increase in
the quarterly cash dividend, to 6.6 cents per share annually, or
1.65 cents per share quarterly, commencing with the December 2023
dividend.
Balance Sheet:
The Company had $24.5 million in cash and cash equivalents at
March 31, 2024, compared to $24.0 million at June 30, 2023. The
Company had nothing drawn on its working line of credit as of March
31, 2024 or June 30, 2023.
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: Wednesday, May 15,
2024 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: 10188893
Replay Dial-In Numbers: Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671 Replay Start: Wednesday, May 15,
2024, 7:15 p.m. ET Replay Expiry: Saturday, June 15, 2024, at 11:59
PM ET Replay Pin Number: 10188893
About ReposiTrak
ReposiTrak (NYSE:TRAK), formerly Park City Group, provides
retailers, suppliers and wholesalers with a robust solution suite
to help reduce risk and remain in compliance with regulatory
requirements, enhance operational controls and increase sales with
unrivaled brand protection. Consisting of three product families –
food traceability, compliance and risk management and supply chain
solutions – ReposiTrak’s integrated, cloud-based applications are
supported by an unparalleled team of experts. For more information,
visit https://repositrak.com
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 d/b/a ReposiTrak, or ReposiTrak (“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 Group 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.
REPOSITRAK, INC.
Consolidated Condensed Balance
Sheets (Unaudited)
March 31, 2024
June 30, 2023
Assets
Current Assets
Cash and cash equivalents
$
24,452,680
$
23,990,879
Receivables, net of allowance for doubtful
accounts of $226,198 and $170,103 at March 31, 2024 and June 30,
2023, respectively
3,776,472
2,523,019
Contract asset – unbilled current
portion
147,520
186,959
Prepaid expense and other current
assets
451,041
573,763
Total Current Assets
28,827,713
27,274,620
Property and Equipment, net
591,724
986,300
Other Assets:
Deposits and other assets
22,414
22,414
Prepaid expense – less current portion
6,677
36,282
Contract asset – unbilled long-term
portion
108,052
108,052
Operating lease – right-of-use asset
265,726
310,796
Customer relationships
164,250
262,800
Goodwill
20,883,886
20,883,886
Capitalized software costs, net
463,036
698,281
Total Other Assets
21,914,041
22,322,511
Total Assets
$
51,333,478
$
50,583,431
Liabilities and Shareholders’
Equity
Current Liabilities
Accounts payable
$
510,412
$
431,387
Accrued liabilities
1,390,232
1,620,000
Contract liability – deferred revenue
2,466,262
1,903,001
Operating lease liability – current
62,725
58,771
Notes payable and financing leases –
current
215,274
219,262
Total Current Liabilities
4,644,905
4,232,421
Long-Term Liabilities
Operating lease liability – less current
portion
215,676
263,047
Notes payable and financing leases – less
current portion
-
206,032
Total Liabilities
4,860,581
4,701,500
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, 2024
and June 30, 2023;
6,254
6,254
Series B-1 Preferred, 550,000 shares
authorized; 72,216 and 212,402 shares issued and outstanding at
March 31, 2024 and June 30, 2023, respectively
722
2,124
Common Stock, $0.01 par value, 50,000,000
shares authorized; 18,221,527 and 18,309,051 issued and outstanding
at March 31, 2024 and June 30, 2023, respectively
182,218
183,093
Additional paid-in capital
65,277,419
67,732,887
Accumulated other comprehensive loss
(31,006
)
-
Accumulated deficit
(18,962,710
)
(22,042,427
)
Total Stockholders’
Equity
46,472,897
45,881,931
Total Liabilities and Stockholders’
Equity
$
51,333,478
$
50,583,431
REPOSITRAK, INC.
Consolidated Condensed
Statements of Operations and Comprehensive Income
(Unaudited)
Three Months Ended March
31,
Nine Months Ended March
31,
2024
2023
2024
2023
Revenue
$
5,084,866
$
4,824,101
$
15,270,729
$
14,295,091
Operating expense:
Cost of services and product support
831,912
840,272
2,571,533
2,539,618
Sales and marketing
1,349,838
1,239,946
4,119,716
3,667,017
General and administrative
1,352,197
916,237
3,978,798
3,392,056
Depreciation and amortization
288,576
305,864
897,479
771,030
Total operating expense
3,822,523
3,302,319
11,567,526
10,369,721
Income from operations
1,262,343
1,521,782
3,703,203
3,925,370
Other income (expense):
Interest income
350,691
275,941
925,297
554,299
Interest expense
(8,036
)
(9,771
)
(21,956
)
(52,481
)
Unrealized gain (loss) on short term
investments
5,429
35,068
48,071
(3,753
)
Other gain
-
-
-
70,047
Income before income taxes
1,610,427
1,823,020
4,654,615
4,493,482
(Provision) for income taxes:
(60,000
)
(160,000
)
(274,491
)
(280,006
)
Net income
1,550,427
1,663,020
4,380,124
4,213,476
Dividends on preferred stock
(134,345
)
(146,611
)
(427,567
)
(439,833
)
Net income applicable to common
shareholders
$
1,416,082
$
1,516,409
$
3,952,557
$
3,773,643
Weighted average shares, basic
18,194,000
18,394,000
18,194,000
18,408,000
Weighted average shares, diluted
18,954,000
18,751,000
18,874,000
18,702,000
Basic income per share
$
0.08
$
0.08
$
0.22
$
0.20
Diluted income per share
$
0.08
$
0.08
$
0.21
$
0.20
REPOSITRAK, INC.
Consolidated Condensed
Statements of Cash Flows (Unaudited)
Nine months
Ended March 31,
2024
2023
Cash flows from operating activities:
Net income
$
4,380,124
$
4,213,476
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
897,479
771,030
Amortization of operating right-of-use
asset
45,070
43,019
Stock compensation expense
260,853
315,216
Bad debt expense
225,000
1,200,000
(Increase) decrease in:
Accounts receivables
(1,439,014
)
86,972
Long-term receivables, prepaids and other
assets
751
655,391
Increase (decrease) in:
Accounts payable
79,025
(309,812
)
Operating lease liability
(43,417
)
(39,777
)
Accrued liabilities
(58,391
)
122,744
Deferred revenue
563,261
7,631
Net cash provided by operating
activities
4,910,741
7,065,890
Cash flows from investing activities:
Purchase of property and equipment
(17,532
)
(133,944
)
Capitalization of software costs
-
(769,243
)
Purchase of marketable securities
(31,006
)
-
Net cash (used in) investing
activities
(48,538
)
(903,187
)
Cash flows from financing activities:
Net (decrease) in lines of credit
-
(2,590,907
)
Common Stock buyback/retirement
(1,515,574
)
(981,194
)
Redemption of series B-1 preferred
(1,499,990
)
-
Proceeds from employee stock plan
111,839
92,728
Dividends paid
(1,286,657
)
(993,037
)
Payments on notes payable and capital
leases
(210,020
)
(209,748
)
Net cash used in financing
activities
(4,400,402
)
(4,682,158
)
Net increase (decrease) in cash and
cash equivalents
461,801
1,480,545
Cash and cash equivalents at beginning of
period
23,990,879
21,460,948
Cash and cash equivalents at end of
period
$
24,452,680
$
22,941,493
Supplemental disclosure of cash flow
information:
Cash paid for income taxes
$
317,944
$
264,486
Cash paid for interest
$
11,711
$
52,481
Cash paid for operating leases
$
54,606
$
53,015
Supplemental disclosure of non-cash
investing and financing activities:
Common stock to pay accrued
liabilities
$
445,980
$
256,977
Dividends accrued on preferred stock
$
427,567
$
439,833
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240515114345/en/
Investor Relations Contact: John Merrill, CFO
Investor-relations@repositrak.com
Or
FNK IR Rob Fink 646.809.4048 rob@fnkir.com
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