PCYG - Park City Group Reports 7% Increase in Revenue Net Income More than Doubles Cash of $23.9 Million for Fiscal Second Quarter 2021
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 second fiscal quarter ended December 31, 2020.
Second Quarter Financial and Recent Business Highlights:
- Total revenue increased to $5.2 million from $4.8 million, a 7% year-over-year increase resulting from higher MarketPlace revenue and recurring SaaS revenue. Fiscal 2020 revenue included $410,000 of one-time revenue that did not reoccur in fiscal 2021.
- GAAP net income of $1.6 million which includes a $72,000 unrealized gain on investment and a $1.1 million gain on forgiveness of debt vs. net income of $660,000 in the prior year.
- Net income to common shareholders of $1.5 million, inclusive of above-mentioned gains, vs. $516,000.
- EPS $0.08 vs. $0.03 in the prior year second quarter.
Randall K. Fields, Chairman and CEO of Park City Group commented, “We continue to experience increased interest and higher levels of buying and selling activity across MarketPlace beyond our traditional base of food retailers who utilize our concierge and automated platform to secure hard-to-source supplies. Importantly, we have reached sufficient scale and established pricing models that enable sustainable profitability. With this, we can leverage our profitable business model to generate steady bottom-line growth, even if transactional revenues for hard-to-source items fluctuate from quarter to quarter.”
“In parallel, we are beginning to rollout two added offerings to our platform, which are expected to contribute to revenue as the year progresses,” continued Mr. Fields. “The first, within our MarketPlace solution, is a grant reconciliation solution, helping states accurately manage their FEMA procurement efforts before, during and after emergencies. Park City has signed up a U.S. state to pilot this offering, and we anticipate incremental revenue from this solution in this year. Our second offering is a Quality Management Solution or QMS, which is an extension of our existing compliance offering. We have experienced a high level of interest from customers and expect more revenue contribution from this in the coming quarters.”
Second Quarter Financial Results ( three months ended December 31, 2020 vs. three months ended December 31, 2019):
Total revenue increased 7% to $5.2 million as compared to $4.8 million due largely to growth in MarketPlace revenue and a 7% increase in recurring revenue. Total operating expense increased 14% to $4.8 million due to increased cost of revenue and product support due to the revenue mix, reflecting a greater portion of MarketPlace. GAAP net income was $1.6 million, inclusive of unrealized gains on investment activities and the forgiveness of a of $1.1 million PPP loan, versus $663,000. GAAP net income to common shareholders was $1.5 million, inclusive of the aforementioned gains, or $0.08 per diluted share, compared to $516,000, or $0.03 per diluted share.
Fiscal 2020 Year to Date Results (six months ended December 31, 2020 vs. six months ended December 31, 2019):
Total revenue increased 8.3% to $10.4 million for the six months ended December 31, 2020, as compared to $9.6 million during the same period a year ago. Total operating expense was $9.4 million, an increase of 5.6% from $8.9 million a year ago. GAAP net income was $2.2 million versus $842,000 a year ago, and GAAP net income to common shareholders was $1.9 million, or $0.10 per diluted share, compared to $548,000, or $0.03 per diluted share, a year ago.
Balance Sheet:
The Company had $23.9 million in cash and cash equivalents at December 31, 2020, compared to $19.0 million at December 31, 2019 and $20.4 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: Tuesday, February 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: 13715993
Replay Dial-In Numbers:
TOLL-FREE 1-844-512-2921
TOLL/INTERNATIONAL 1-412-317-6671
From: 2/16/21 @ 7:15 P.M. Eastern Time
To: 3/16/21 @ 11:59 P.M. Eastern Time
Replay Pin Number: 13715993
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 |
|
|
| December 31, |
|
|
|
|
| June 30, |
|
|
| Current Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash |
|
|
| $ |
| 23,894,653 |
|
|
|
|
| $ |
| 20,345,330 |
|
|
| Receivables, net of allowance for doubtful accounts of $338,684 and $251,954 at December 31, 2020 and June 30, 2020, respectively |
|
|
|
|
| 3,043,727 |
|
|
|
|
|
|
| 4,007,316 |
|
|
| Contract asset – unbilled current portion |
|
|
|
|
| 2,122,958 |
|
|
|
|
|
|
| 2,300,754 |
|
|
| Prepaid expense and other current assets |
|
|
|
|
| 539,454 |
|
|
|
|
|
|
| 495,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Current Assets |
|
|
|
|
| 29,600,792 |
|
|
|
|
|
|
| 27,148,911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property and equipment, net |
|
|
|
|
| 2,817,608 |
|
|
|
|
|
|
| 3,003,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits, and other assets |
|
|
|
|
| 22,414 |
|
|
|
|
|
|
| 22,414 |
|
|
| Prepaid expense – less current portion |
|
|
|
|
| 49,819 |
|
|
|
|
|
|
| 77,030 |
|
|
| Contract asset – unbilled long-term portion |
|
|
|
|
| 310,656 |
|
|
|
|
|
|
| 838,726 |
|
|
| Operating lease – right-of-use asset |
|
|
|
|
| 738,941 |
|
|
|
|
|
|
| 781,137 |
|
|
| Customer relationships |
|
|
|
|
| 591,300 |
|
|
|
|
|
|
| 657,000 |
|
|
| Goodwill |
|
|
|
|
| 20,883,886 |
|
|
|
|
|
|
| 20,883,886 |
|
|
| Capitalized software costs, net |
|
|
|
|
| - |
|
|
|
|
|
|
| 18,539 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Other Assets |
|
|
|
|
| 22,597,016 |
|
|
|
|
|
|
| 23,278,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Assets |
|
|
| $ |
| 55,015,416 |
|
|
|
|
| $ |
| 53,431,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accounts payable |
|
|
| $ |
| 539,151 |
|
|
|
|
| $ |
| 407,497 |
|
|
| Accrued liabilities |
|
|
|
|
| 1,741,087 |
|
|
|
|
|
|
| 1,123,528 |
|
|
| Contract liability – deferred revenue |
|
|
|
|
| 1,608,480 |
|
|
|
|
|
|
| 1,845,347 |
|
|
| Lines of credit |
|
|
|
|
| 5,720,175 |
|
|
|
|
|
|
| 4,660,000 |
|
|
| Operating lease liability – current |
|
|
|
|
| 87,952 |
|
|
|
|
|
|
| 85,767 |
|
|
| Current portion of notes payable |
|
|
|
|
| - |
|
|
|
|
|
|
| 310,242 |
|
|
| Current portion of paycheck protection program loans |
|
|
|
|
| - |
|
|
|
|
|
|
| 479,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total current liabilities |
|
|
|
|
| 9,696,845 |
|
|
|
|
|
|
| 8,912,247 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating lease liability – less current portion |
|
|
|
|
| 650,988 |
|
|
|
|
|
|
| 695,369 |
|
|
| Notes payable – less current portion |
|
|
|
|
| - |
|
|
|
|
|
|
| 610,512 |
|
|
| Paycheck protection program loans |
|
|
|
|
| 10,000 |
|
|
|
|
|
|
| 629,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
|
|
| 10,357,833 |
|
|
|
|
|
|
| 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 December 31, 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 December 31, 2020 and June 30, 2020, respectively |
|
|
|
|
| 2,124 |
|
|
|
|
|
|
| 2,124 |
|
|
| Common Stock, $0.01 par value, 50,000,000 shares authorized; 19,529,422 and 19,484,485 issued and outstanding at December 31, 2020 and June 30, 2020, respectively |
|
|
|
|
| 195,297 |
|
|
|
|
|
|
| 194,847 |
|
|
| Additional paid-in capital |
|
|
|
|
| 75,460,334 |
|
|
|
|
|
|
| 75,271,097 |
|
|
| Accumulated deficit |
|
|
|
|
| (31,006,426 |
| ) |
|
|
|
|
| (32,890,889 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total stockholders’ equity |
|
|
|
|
| 44,657,583 |
|
|
|
|
|
|
| 42,583,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities and stockholders’ equity |
|
|
| $ |
| 55,015,416 |
|
|
|
|
| $ |
| 53,431,045 |
|
|
| PARK CITY GROUP, INC. Consolidated Condensed Statements of Operations (Unaudited) |
|
|
|
|
| Three Months Ended |
|
|
|
|
| Six Months Ended |
|
|
|
|
|
|
| 2020 |
|
|
|
|
| 2019 |
|
|
|
|
| 2020 |
|
|
|
|
| 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
|
| $ |
| 5,174,204 |
|
|
|
|
| $ |
| 4,837,332 |
|
|
|
|
| $ |
| 10,399,606 |
|
|
|
|
| $ |
| 9,637,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of services and product support |
|
|
|
|
| 2,091,588 |
|
|
|
|
|
|
| 1,425,309 |
|
|
|
|
|
|
| 4,072,545 |
|
|
|
|
|
|
| 3,253,423 |
|
|
| Sales and marketing |
|
|
|
|
| 1,205,295 |
|
|
|
|
|
|
| 1,446,517 |
|
|
|
|
|
|
| 2,488,336 |
|
|
|
|
|
|
| 2,861,380 |
|
|
| General and administrative |
|
|
|
|
| 1,231,139 |
|
|
|
|
|
|
| 1,114,251 |
|
|
|
|
|
|
| 2,313,064 |
|
|
|
|
|
|
| 2,336,462 |
|
|
| Depreciation and amortization |
|
|
|
|
| 261,597 |
|
|
|
|
|
|
| 222,499 |
|
|
|
|
|
|
| 510,097 |
|
|
|
|
|
|
| 416,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total operating expense |
|
|
|
|
| 4,789,619 |
|
|
|
|
|
|
| 4,208,576 |
|
|
|
|
|
|
| 9,384,042 |
|
|
|
|
|
|
| 8,867,442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income from operations |
|
|
|
|
| 384,585 |
|
|
|
|
|
|
| 628,756 |
|
|
|
|
|
|
| 1,015,564 |
|
|
|
|
|
|
| 769,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
|
|
|
| 81,503 |
|
|
|
|
|
|
| 65,982 |
|
|
|
|
|
|
| 115,844 |
|
|
|
|
|
|
| 148,713 |
|
|
| Interest expense |
|
|
|
|
| (1,907 |
| ) |
|
|
|
|
| (16,042 |
| ) |
|
|
|
|
| (72,452 |
| ) |
|
|
|
|
| (36,640 |
| ) |
| Unrealized gain (loss) on short term investments |
|
|
|
|
| 71,828 |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 55,565 |
|
|
|
|
|
|
| - |
|
|
| Gain on debt extinguishment |
|
|
|
|
| 1,099,350 |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 1,099,350 |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
|
|
|
|
| 1,635,359 |
|
|
|
|
|
|
| 678,696 |
|
|
|
|
|
|
| 2,213,871 |
|
|
|
|
|
|
| 882,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Provision) for income taxes: |
|
|
|
|
| (12,500 |
| ) |
|
|
|
|
| (15,593 |
| ) |
|
|
|
|
| (36,186 |
| ) |
|
|
|
|
| (40,593 |
| ) |
| Net income |
|
|
|
|
| 1,622,859 |
|
|
|
|
|
|
| 663,103 |
|
|
|
|
|
|
| 2,177,685 |
|
|
|
|
|
|
| 841,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends on preferred stock |
|
|
|
|
| (146,611 |
| ) |
|
|
|
|
| (146,611 |
| ) |
|
|
|
|
| (293,222 |
| ) |
|
|
|
|
| (293,222 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income applicable to common shareholders |
|
|
| $ |
| 1,476,248 |
|
|
|
|
| $ |
| 516,492 |
|
|
|
|
| $ |
| 1,884,463 |
|
|
|
|
| $ |
| 548,232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares, basic |
|
|
|
|
| 19,526,000 |
|
|
|
|
|
|
| 19,741,000 |
|
|
|
|
|
|
| 19,508,000 |
|
|
|
|
|
|
| 19,775,000 |
|
|
| Weighted average shares, diluted |
|
|
|
|
| 19,716,000 |
|
|
|
|
|
|
| 20,052,000 |
|
|
|
|
|
|
| 19,653,000 |
|
|
|
|
|
|
| 20,033,000 |
|
|
| Basic income per share |
|
|
| $ |
| 0.08 |
|
|
|
|
| $ |
| 0.03 |
|
|
|
|
| $ |
| 0.10 |
|
|
|
|
| $ |
| 0.03 |
|
|
| Diluted income per share |
|
|
| $ |
| 0.08 |
|
|
|
|
| $ |
| 0.03 |
|
|
|
|
| $ |
| 0.10 |
|
|
|
|
| $ |
| 0.03 |
|
|
| PARK CITY GROUP, INC. Consolidated Condensed Statements of Cash Flows (Unaudited) |
|
|
|
|
| Six Months |
|
|
|
|
|
|
| 2020 |
|
|
|
|
| 2019 |
|
|
| Cash flows operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
| $ |
| 2,177,685 |
|
|
|
|
| $ |
| 841,454 |
|
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
|
|
| 510,097 |
|
|
|
|
|
|
| 416,177 |
|
|
| Amortization of operating right of use asset |
|
|
|
|
| 42,196 |
|
|
|
|
|
|
| 40,239 |
|
|
| Stock compensation expense |
|
|
|
|
| 166,923 |
|
|
|
|
|
|
| 244,505 |
|
|
| Bad debt expense |
|
|
|
|
| 310,000 |
|
|
|
|
|
|
| 250,000 |
|
|
| Gain on debt extinguishment |
|
|
|
|
| (1,099,350 |
| ) |
|
|
|
|
| - |
|
|
| (Increase) decrease in: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accounts receivables |
|
|
|
|
| 520,719 |
|
|
|
|
|
|
| (231,438 |
| ) |
| Long-term receivables, prepaids and other assets |
|
|
|
|
| 685,158 |
|
|
|
|
|
|
| 665,474 |
|
|
| (Decrease) increase in: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accounts payable |
|
|
|
|
| 131,654 |
|
|
|
|
|
|
| 225,970 |
|
|
| Operating lease liability |
|
|
|
|
| (42,196 |
| ) |
|
|
|
|
| (40,239 |
| ) |
| Accrued liabilities |
|
|
|
|
| 590,271 |
|
|
|
|
|
|
| (284,418 |
| ) |
| Deferred revenue |
|
|
|
|
| (237,143 |
| ) |
|
|
|
|
| 543,861 |
|
|
| Net cash provided by operating activities |
|
|
|
|
| 3,756,014 |
|
|
|
|
|
|
| 2,671,585 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flows investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Purchase of property and equipment |
|
|
|
|
| (103,218 |
| ) |
|
|
|
|
| (581,750 |
| ) |
| Net cash used in investing activities |
|
|
|
|
| (103,218 |
| ) |
|
|
|
|
| (581,750 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flows financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net increase in lines of credit |
|
|
|
|
| 1,060,175 |
|
|
|
|
|
|
| - |
|
|
| Common Stock buyback/retirement |
|
|
|
|
| - |
|
|
|
|
|
|
| (1,355,037 |
| ) |
| Proceeds from employee stock plan |
|
|
|
|
| 50,328 |
|
|
|
|
|
|
| 63,523 |
|
|
| Dividends paid |
|
|
|
|
| (293,222 |
| ) |
|
|
|
|
| (293,222 |
| ) |
| Payments on notes payable and capital leases |
|
|
|
|
| (920,754 |
| ) |
|
|
|
|
| (145,747 |
| ) |
| Net cash used in financing activities |
|
|
|
|
| (103,473 |
| ) |
|
|
|
|
| (1,730,483 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net increase in cash and cash equivalents |
|
|
|
|
| 3,549,323 |
|
|
|
|
|
|
| 359,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents at beginning of period |
|
|
|
|
| 20,345,330 |
|
|
|
|
|
|
| 18,609,423 |
|
|
| Cash and cash equivalents at end of period |
|
|
| $ |
| 23,894,653 |
|
|
|
|
| $ |
| 18,968,775 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210216005244/en/
Investor Relations Contact:
John Merrill, CFO
investor-relations@parkcitygroup.com
Or
FNK IR
Rob Fink
646.809.4048
rob@fnkir.com