SALT LAKE CITY, Sept. 23, 2013 (GLOBE NEWSWIRE) -- Park City Group (NYSE MKT:PCYG), a cloud-based software as a service (SaaS) company that uses big data management to help retailers and their suppliers sell more, stock less and see everything, today announced record results for its fiscal year ended June 30, 2013.

Strategic and Financial highlights:

• Record year-to-date revenue – Total revenue increased 12% for the fiscal year ended June 30, 2013. "We delivered record results during fiscal 2013. As expected, subscription revenue growth accelerated from prior years," said Randall K. Fields, Park City Group's Chairman and CEO.
• Record annual profitability – During 2013, EBITDA increased 49% to $2.4 million, versus $1.6 million during the prior year. "Benefiting from the operating leverage in our business model, profitability accelerated at a faster pace than revenue growth," said Mr. Fields. 
• Series A Preferred Stock Redemption – The Company completed the redemption of its Series A preferred stock, reducing preferred dividend payments by approximately $650,000 annually, or $0.04 per share.
• Growth among national retailers exceeding expectations – "The pace at which national retailers are recognizing our valuation proposition is faster than we had anticipated. As a result, we have initiated test programs with three of the largest retailers in the world with more than 20,000 retail stores combined. Additionally, results from the retailer we announced in January have exceeded expectations and we are now exploring additional opportunities with this retailer," said Mr. Fields.
• Significantly expanded sales leadership team – "We recently added several seasoned professionals to our sales leadership team. We are also expanding our account management staff to address significant growth opportunities with larger national retailers and our food safety initiative," said Mr. Fields.

Subscription revenue increased 15% for the fiscal year ended June 30, 2013. Record subscription revenue reflected growth in sales to new and existing customers during both periods, including ReposiTrak. Combined with growth in other revenue, total revenue increased 12% to a record $11.3 million for the fiscal year.

Total operating expenses during the fiscal year ended June 30, 2013 were $10.9 million, a decrease of $151,000 from the prior year. Operating expenses were relatively unchanged year over year as increased expenses for additional sales and marketing staff was offset by a reduction in general and administrative expenses. 

Net income for the fiscal year ended June 30, 2013 was $257,000, as compared to a net loss of ($859,000) during the prior year. Net loss applicable to common shareholders for the fiscal year was ($654,000), or ($0.05) per share, as compared to ($1.7 million), or ($0.14) per share during the prior year. Non-GAAP earnings per common shareholder for the fiscal year was $0.06, versus break even during the prior year. 

Total cash at June 30, 2013 was $3.6 million as compared to $1.1 million at June 30, 2012, and debt levels decreased by 19% to $2.2 million, versus $2.7 million at the same time last year. "We took actions to simplify and strengthen our balance sheet this past year, and as a result, we moved from a net debt position to a net cash position of $1.6 million," said Mr. Fields.

Highlights of ReposiTrak™: ReposiTrak, the Company's venture with Leavitt Partners, provides food and drug retailers and their suppliers with a cost-effective service to help protect their brands, and reduce regulatory and financial risk associated with the rapidly evolving Food Safety Modernization Act. "Based on the endorsements and adoptions by key players, ReposiTrak is rapidly becoming recognized as the industry standard," said Mr. Fields. "Our food and drug safety venture has enormous economic consequences for Park City Group. As a result, we are increasingly focused on its scaling and delivery."

• ReposiTrak adopted by largest cooperative of independent food wholesalers –"ROFDA (Retailer Owned Food Distributors & Associates), which represents approximately 20% of the U.S. supermarket industry and nearly 50,000 suppliers, announced that it is adopting ReposiTrak," said Mr. Fields. "ReposiTrak is automating the processes to enable rapid scaling with several thousand suppliers already in its pipeline."  
• ReposiTrak adopted by leading dietary supplement trade association – United Natural Products Alliance (UNPA) recently agreed to adopt ReposiTrak for use by its members. "Building on its strength in the food industry, ReposiTrak is aggressively moving to establish its service offering as the standard for the food supplement industry, as well as the drug industry," said Mr. Fields.
• All Star Association adopts ReposiTrak - All Star Association, a leading buying association serving the dairy, food, beverage and packaging industries has agreed to adopt ReposiTrak for use by its more than 275 food and dairy members and 400 plants in 48 states.
• Amended ReposiTrak™ Agreement – In recognition of the potential of ReposiTrak, and in consideration for providing certain credit arrangements to fund its growth, the Company received an option to acquire additional stock in the venture, increasing its potential ultimate ownership from 49% to 75%. 

The Company will host a conference call at 4:15 P.M. Eastern today, September 23, 2013, to discuss the results. Investors and interested parties may participate in the call by dialing (877) 675-3568 and referring to Conference ID: 29185118. The conference call is also being webcast and is available via the investor relations section of the Company's website, www.parkcitygroup.com. 

About Park City Group

Park City Group (NYSE MKT:PCYG) is a Software-as-a-Service ("SaaS") provider that brings unique visibility to the consumer goods supply chain, delivering actionable information that ensures product is on the shelf when the consumer expects it as well as providing food safety tracking information. The Company's service increases customers' sales and profitability while enabling lower inventory levels and ensuring regulatory compliance for both retailers and their suppliers. Through a process known as Consumer Driven Sales Optimization™, Park City Group helps its customers turn information into cash and increased sales, using the largest scan based platform in the world. Scan based trading provides retail trading partners with a distinct competitive advantage through scan sales that provides store level visibility and sets the supply chain in motion. And since it is scan based, it can be used in a Direct Store Delivery (DSD) or warehouse setting.

Non-GAAP Financial Measures

This press release includes the following financial measures defined as "non-GAAP financial measures" by the Securities and Exchange Commission: non-GAAP EBITDA, non-GAAP earnings per share, net debt and free cash flow. These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles. Reconciliations of these non-GAAP financial measures to the nearest comparable GAAP measures will be provided upon the completion of the Company's annual audit.

Non-GAAP EBITDA excludes items such as impairment charges, allowance for doubtful accounts, charges to consolidate and integrate recently acquired businesses, costs of closing corporate facilities, non-cash stock based compensation and other one-time cash and non-cash charges. Non-GAAP EPS excludes items such as non-cash stock based compensation, charges to consolidate and integrate recently acquired businesses, costs for closing corporate facilities, amortization of acquired intangible assets and other one-time cash and non-cash charges. Net debt is the total debt balance less the cash balance. Free cash flow includes net cash provided (used) by operating activities less replacement purchases of property and equipment. The Company believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses or net purchases of property and equipment, as the case may be, which may not be indicative of its core operation results and business outlook. In addition, because Park City Group has historically reported certain non-GAAP results to investors, the Company believes that the inclusion of non-GAAP measures provides consistency in the Company's financial reporting.

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.