PIXY - ShiftPixy Inc. Reports Fiscal 2019 Second Quarter Results
IRVINE, Calif., April 15, 2019 (GLOBE NEWSWIRE) -- ShiftPixy, Inc. (NASDAQ: PIXY), a California-based technology company that designs, manages, and sells access to a disruptive, revolutionary platform that facilitates employment in the rapidly growing Gig Economy, today announced operating results for the three months ended February 28, 2019 (“2019 Second Quarter”).
2019 Second Quarter Highlights
- Gross billings grew 70% to $82.5 million, compared to $48.6 million for the fiscal 2018 second quarter; gross billings increased sequentially 16% from $70.9 million in the prior quarter.
- Revenues increased 67% to $13.2 million, compared to $7.9 million for the second quarter of fiscal 2018.
- The average number of worksite employees increased by approximately 3,110 to 9,660, compared to 6,550 for the quarter ended February 28, 2018.
- Gross profit was $3.2 million versus $0.9 million the prior year period, and net loss per share was 1 cent versus a net loss per share of 9 cents the prior year period.
“Our strong growth continued during the quarter across key financial and operating metrics, and we’re excited about the rapid acceptance of our proprietary platform for workforce engagement and management,” stated Chief Executive Officer, Scott Absher. “Looking ahead, we anticipate that our rapidly developing technology will further enhance our service offerings and better enable us to meet the needs of our growing assigned workforce and client base as we strive to create shareholder value.”
Webcast
ShiftPixy will host a webcast at 9:00 a.m. Eastern Time on Monday, April 15, 2019, to discuss financial results for the fiscal 2019 second quarter. Investors can access the webcast through the ShiftPixy website at https://ir.shiftpixy.com.
About ShiftPixy
ShiftPixy is a disruptive human capital management (HCM) services provider, revolutionizing employment in the Gig Economy by delivering a next-gen platform for workforce management that helps businesses with shift-based employees navigate regulatory mandates, minimize administrative burdens and better connect with a ready-for-hire workforce. With expertise rooted in management’s nearly 25 years of workers’ compensation and compliance programs experience, ShiftPixy adds a needed layer for addressing compliance and continued demands for equitable employment practices in the growing Gig Economy. ShiftPixy’s complete HCM ecosystem is designed to manage regulatory requirements and compliance in such required areas as paid time off (PTO) laws, insurance and workers’ compensation, minimum wage increases, and the Affordable Care Act (ACA) compliance.
ShiftPixy Cautionary Statement
The information provided in this release includes forward-looking statements, the achievement or success of which involves risks, uncertainties, and assumptions. Although such forward-looking statements are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate. If any of the risks or uncertainties, including those set forth below, materialize or if any of the assumptions proves incorrect, the results of ShiftPixy, Inc., could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties include, but are not limited to, risks associated with the nature of our business model; our ability to execute the Company's vision and growth strategy; our ability to attract and retain clients; our ability to assess and manage risks; changes in the law that affect our business and our ability to respond to such changes and incorporate them into our business model, as necessary; our ability to insure against and otherwise effectively manage risks that affect our business; competition; reliance on third-party systems and software; our ability to protect and maintain our intellectual property; and general developments in the economy and financial markets. Statements made in connection with any guidance may refer to financial statements that have not been reviewed or audited. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, except as required by applicable securities laws. The information in this press release shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and will not be deemed an admission as to the materiality of any information that is required to be disclosed solely by Regulation FD. Further information on these and other factors that could affect the financial results of ShiftPixy, Inc., is included in the filings on Forms 1-A and 10-Q and in other filings we make with the Securities and Exchange Commission from time to time. These documents are available on the "SEC Filings" subsection of the "Investor Information" section of our website at https://ir.shiftpixy.com/financial-information/sec-filings.
Consistent with the SEC’s April 2013 guidance on using social media outlets like Facebook and Twitter to make corporate disclosures and announce key information in compliance with Regulation FD, ShiftPixy is alerting investors and other members of the general public that ShiftPixy will provide updates on operations and progress required to be disclosed under Regulation FD through its social media on Facebook, Twitter, LinkedIn and YouTube. Investors, potential investors, shareholders and individuals interested in our Company are encouraged to keep informed by following us on Facebook, Twitter, LinkedIn and YouTube.
CONTACT:
Media:
Amy Wang
amy.wang@shiftpixy.com
888.798.9100
Investors:
InvestorRelations@shiftpixy.com
800.475.3655
| PART I — FINANCIAL INFORMATION |
| Item 1. Condensed Consolidated Financial Statements |
| ShiftPixy, Inc. |
| Condensed Consolidated Balance Sheets |
| February 28, 2019 |
| August 31, 2018 |
| ASSETS |
| (Unaudited) |
| Current assets |
| Cash |
| $ |
| 1,798,867 |
| $ |
| 1,649,783 |
| Accounts receivable |
| 743,580 |
| 110,931 |
| Unbilled accounts receivable |
| 5,170,887 |
| 6,192,631 |
| Deposit – workers’ compensation |
| 2,164,847 |
| 1,672,097 |
| Prepaid expenses |
| 314,187 |
| 563,002 |
| Other current assets |
| 219,590 |
| 258,901 |
| Total current assets |
| 10,411,958 |
| 10,447,345 |
| Fixed assets, net |
| 3,150,767 |
| 3,032,325 |
| Deposits – workers’ compensation |
| 3,968,435 |
| 2,201,556 |
| Deposits and other assets |
| 94,375 |
| 120,606 |
| Total assets |
| $ |
| 17,625,535 |
| $ |
| 15,801,832 |
| LIABILITIES AND STOCKHOLDERS' DEFICIT |
| Current liabilities |
| Accounts payable |
| $ |
| 1,690,384 |
| $ |
| 1,246,461 |
| Payroll related liabilities |
| 11,476,809 |
| 9,476,641 |
| Convertible note, net |
| 4,854,933 |
| 7,156,515 |
| Accrued workers’ compensation costs |
| 1,012,676 |
| 305,217 |
| Registration rights penalties accrual (Note 4) |
| - |
| 3,500,000 |
| Other current liabilities |
| 1,837,493 |
| 1,955,921 |
| Total current liabilities |
| 20,872,295 |
| 23,640,755 |
| Non-current liabilities |
| Accrued workers’ compensation costs |
| 2,009,869 |
| 900,978 |
| Total liabilities |
| 22,882,164 |
| 24,541,733 |
| Commitments and contingencies |
| Stockholders' deficit |
| Preferred stock, 50,000,000 authorized shares; $0.0001 par value; no shares issued and outstanding |
| - |
| - |
| Common stock, 750,000,000 authorized shares; $0.0001 par value; 32,117,326 and 28,851,787 shares issued and outstanding, respectively |
| 3,212 |
| 2,886 |
| Additional paid-in capital |
| 23,055,582 |
| 17,233,919 |
| Accumulated deficit |
| (28,315,423 |
| ) |
| (25,976,706 |
| ) |
| Total stockholders' deficit |
| (5,256,629 |
| ) |
| (8,739,901 |
| ) |
| Total liabilities and stockholders’ deficit |
| $ |
| 17,625,535 |
| $ |
| 15,801,832 |
| ShiftPixy Inc. |
| Condensed Consolidated Statements of Operations |
| (Unaudited) |
| For the Three Months Ended February 28, |
| For the Six Months Ended February 28, |
| 2019 |
| 2018 |
| 2019 |
| 2018 |
| Revenues (gross billings of $82.5m and $48.6m less worksite employee payroll cost of $69.4m and $40.8m, respectively for the three months ended; gross billings of $153.4m and $88.8m less worksite employee payroll cost of $129.7m and $74.4m, respectively for six months ended) |
| $ |
| 13,188,263 |
| $ |
| 7,886,459 |
| $ |
| 23,708,253 |
| $ |
| 14,398,378 |
| Cost of revenue |
| 9,967,236 |
| 7,007,315 |
| 17,101,404 |
| 12,273,718 |
| Gross profit |
| 3,221,027 |
| 879,144 |
| 6,606,849 |
| 2,124,660 |
| Operating expenses: |
| Salaries, wages and payroll taxes |
| 1,986,744 |
| 1,345,606 |
| 3,781,709 |
| 2,526,094 |
| Stock-based compensation – general and administrative |
| 81,092 |
| 26,797 |
| 158,314 |
| 97,094 |
| Commissions |
| 588,975 |
| 338,434 |
| 1,142,191 |
| 610,065 |
| Professional fees |
| 895,083 |
| 508,787 |
| 1,519,128 |
| 1,001,242 |
| Software development |
| 717,566 |
| 486,354 |
| 1,027,566 |
| 2,386,354 |
| Depreciation and amortization |
| 191,114 |
| 57,949 |
| 378,837 |
| 75,643 |
| General and administrative |
| 987,622 |
| 834,100 |
| 2,115,537 |
| 1,488,268 |
| Total operating expenses |
| 5,448,196 |
| 3,598,027 |
| 10,123,282 |
| 8,184,760 |
| Operating Loss |
| (2,227,169 |
| ) |
| (2,718,883 |
| ) |
| (3,516,433 |
| ) |
| (6,060,100 |
| ) |
| Other (expense) income: |
| Interest expense |
| (722,474 |
| ) |
| - |
| (1,433,396 |
| ) |
| - |
| Settlement of registration rights penalties accrual |
| 2,611,112 |
| - |
| 2,611,112 |
| - |
| Total other income |
| 1,888,638 |
| - |
| 1,177,716 |
| - |
| Net Loss |
| $ |
| (338,531 |
| ) |
| $ |
| (2,718,883 |
| ) |
| $ |
| (2,338,717 |
| ) |
| $ |
| (6,060,100 |
| ) |
| Net loss per common share, Basic and diluted |
| $ |
| (0.01 |
| ) |
| $ |
| (0.09 |
| ) |
| $ |
| (0.08 |
| ) |
| $ |
| (0.21 |
| ) |
| Weighted average number of common shares Basic and diluted |
| 31,185,358 |
| 28,800,630 |
| 30,152,305 |
| 28,792,333 |