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:
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."
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.
PARK CITY GROUP, INC. | ||
Consolidated Condensed Balance Sheets | ||
June 30, 2013 |
June 30, 2012 |
|
Assets | ||
Current assets: | ||
Cash | $ 3,616,585 | $ 1,106,176 |
Receivables, net of allowance of $190,000 and $220,000 at June 30, 2013 and June 30, 2012, respectively | 2,383,366 | 2,290,859 |
Prepaid expenses and other current assets | 403,909 | 171,526 |
Total current assets | 6,403,860 | 3,568,561 |
Property and equipment, net | 671,959 | 559,140 |
Other assets: | ||
Deposits and other assets | 14,866 | 20,697 |
Note receivable | 1,622,863 | -- |
Customer relationships | 2,340,335 | 2,762,651 |
Goodwill | 4,805,933 | 4,805,933 |
Capitalized software costs, net | 73,082 | 219,248 |
Total other assets | 8,857,079 | 7,808,529 |
Total assets | $15,932,898 | $11,936,230 |
Liabilities and Stockholders' Equity | ||
Current liabilities: | ||
Accounts payable | $ 653,655 | $ 550,846 |
Accrued liabilities | 1,096,982 | 1,242,328 |
Deferred revenue | 1,777,326 | 2,081,459 |
Capital lease obligations | -- | 41,201 |
Lines of credit | 1,200,000 | 1,200,000 |
Notes payable | 551,421 | 798,704 |
Total current liabilities | 5,279,384 | 5,914,538 |
Long-term liabilities: | ||
Notes payable, less current portion | 310,642 | 711,571 |
Other long-term liabilities | 101,500 | -- |
Total liabilities | 5,691,526 | 6,626,109 |
Commitments and contingencies | -- | -- |
Stockholders' equity: | ||
Series A Convertible Preferred Stock, $0.01 par value, 30,000,000 shares authorized; 0 and 685,671 shares issued and outstanding at June 30, 2013 and June 30, 2012, respectively | -- | 6,857 |
Series B Convertible Preferred Stock, $0.01 par value, 30,000,000 shares authorized; 411,927 shares issued and outstanding at June 30, 2013 and June 30, 2012, respectively | 4,119 | 4,119 |
Common Stock, $0.01 par value, 50,000,000 shares authorized; 16,128,530 and 12,087,431 shares issued and outstanding at June 30, 2013 and June 30, 2012, respectively | 161,285 | 120,874 |
Additional paid-in capital | 43,314,986 | 37,763,196 |
Accumulated deficit | (33,239,018) | (32,584,925) |
Total stockholders' equity | 10,241,372 | 5,310,121 |
Total liabilities and stockholders' equity | $15,932,898 | $11,936,230 |
PARK CITY GROUP, INC. | ||||
Consolidated Condensed Statements of Operations (unaudited) | ||||
Three Months Ended June 30, |
Twelve Months Ended June 30, |
|||
2013 | 2012 | 2013 | 2012 | |
Revenues: | ||||
Subscription | $2,107,047 | $1,888,602 | $8,025,025 | $ 6,994,484 |
Other Revenue | 792,810 | 553,896 | 3,293,549 | 3,104,063 |
Total revenues | 2,899,857 | 2,442,498 | 11,318,574 | 10,098,547 |
Operating expenses: | ||||
Cost of services and product support | 1,169,148 | 1,127,970 | 4,490,438 | 4,581,765 |
Sales and marketing | 963,584 | 697,491 | 3,054,361 | 2,640,292 |
General and administrative | 612,120 | 664,193 | 2,474,169 | 2,949,108 |
Depreciation and amortization | 218,282 | 229,096 | 901,407 | 900,094 |
Total operating expenses | 2,963,134 | 2,718,750 | 10,920,375 | 11,071,259 |
Income (loss) from operations | (63,277) | (276,252) | 398,199 | (972,712) |
Other income (expense): | ||||
Other gains | -- | 263,277 | -- | 319,272 |
Interest expense | (29,063) | (37,462) | (140,712) | (205,227) |
Total other (expense) income | (29,063) | 225,815 | (140,712) | 114,045 |
Income (loss) before income taxes | (92,340) | (50,437) | 257,487 | (858,667) |
(Provision) benefit for income taxes: | -- | -- | -- | -- |
Net income (loss) | (92,340) | (50,437) | 257,487 | (858,667) |
Dividends on preferred stock | (123,578) | (209,052) | (911,580) | (834,687) |
Net income (loss) applicable to common shareholders | $ (215,918) | $ (259,489) | $ (654,093) | $(1,693,354) |
Weighted average shares, basic and diluted | 15,734,000 | 11,921,000 | 13,246,000 | 11,780,000 |
Basic and diluted loss per share | $ (0.01) | $ (0.02) | $ (0.05) | $ (0.14) |
PARK CITY GROUP, INC. | ||
Consolidated Condensed Statements of Cash Flows (Unaudited) | ||
For the Twelve Months Ended June 30, | ||
2013 | 2012 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ 257,487 | $ (858,667) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 901,407 | 900,093 |
Bad debt expense | 144,617 | 260,402 |
Stock compensation expense | 843,645 | 911,094 |
Other gains | -- | (319,272) |
Decrease (increase) in: | ||
Receivables | (1,859,987) | 491,488 |
Prepaids and other assets | (226,552) | 97,621 |
Increase (decrease) in: | ||
Accounts payable | 102,809 | (184,073) |
Accrued liabilities | (8,357) | 132,679 |
Deferred revenue | (304,133) | 418,227 |
Net cash (used in) provided by operating activities | (149,064) | 866,616 |
Cash Flows From Investing Activities: | ||
Purchase of property and equipment | (445,744) | (238,760) |
Net cash used in investing activities | (445,744) | (238,760) |
Cash Flows From Financing Activities: | ||
Proceeds from issuance of stock | 4,162,920 | -- |
Proceeds from issuance of notes | 176,797 | 310,231 |
Proceed from employee stock plans | 156,741 | 141,827 |
Proceeds from exercise of options and warrants | -- | 496,393 |
Dividends paid | (503,311) | (494,312) |
Payments on notes payable and capital leases | (866,210) | (2,594,048) |
Net cash provided by (used in) financing activities | 3,105,217 | (2,139,909) |
Net increase (decrease) in cash | 2,510,409 | (1,512,053) |
Cash at beginning of period | 1,106,176 | 2,618,229 |
Cash at end of period | $3,616,585 | $1,106,176 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for income taxes | $ -- | $ -- |
Cash paid for interest | $ 142,491 | $ 281,269 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | ||
Common stock to pay accrued liabilities | $ 786,343 | $ 846,765 |
Dividends accrued on preferred stock | $ 911,580 | $ 834,687 |
Dividends paid with preferred stock | $ 501,060 | $ 336,380 |
Conversion of accounts receivable into notes receivable | $1,622,863 | $ -- |
PARK CITY GROUP, INC. AND SUBSIDIARIES | ||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||
Adjusted EBITDA | ||||
(In $000's) | ||||
Unaudited results of operations | ||||
Three Months Ended June 30, |
Twelve Months Ended June 30, |
|||
2013 | 2012 | 2013 | 2012 | |
Net Income (loss) | $ (92) | $ (50) | $ 257 | $ (859) |
Adjusted EBITDA Reconciliation Adjustments: | ||||
Depreciation and amortization | 318 | 229 | 901 | 900 |
Bad debt expense | 64 | 86 | 145 | 260 |
Interest, net | 29 | 37 | 141 | 204 |
Stock based compensation | 219 | 262 | 996 | 1,073 |
One-time expenses (stock and cash) | -- | -- | -- | 60 |
Adjusted EBITDA | $438 | $564 | $2,440 | $1,638 |
Non-GAAP Net Income (Loss) to Common Shareholders and EPS | ||||
(In $000's, except per share) | ||||
Unaudited results of operations | ||||
Three Months Ended June 30, |
Twelve Months Ended June 30, |
|||
2013 | 2012 | 2013 | 2012 | |
Net Income (loss) | $ (92) | $ (50) | $ 257 | $ (859) |
Non-GAAP Net Income (Loss) Reconciliation Adjustments: | ||||
Stock based compensation | 219 | 262 | 996 | 1,073 |
One-time expenses (stock and cash) | -- | -- | -- | 60 |
Acquisition related amortization | 126 | 126 | 504 | 504 |
Non-GAAP Net Income | $253 | $338 | $1,757 | $778 |
Preferred dividends | (124) | (209) | (912) | (834) |
Non-GAAP Net Income to Common Shareholders | $129 | $129 | $ 845 | $ (56) |
Weighted average shares, diluted | 15,734,000 | 11,921,000 | 13,246,000 | 11,780,000 |
Non-GAAP EPS, diluted | $0.01 | $0.01 | $0.06 | $(0.00) |
Non-GAAP Free Cash Flow | ||||
(In $000's) | ||||
Unaudited results of operations | ||||
Three Months Ended June 30, |
Twelve Months Ended June 30, |
|||
2013 | 2012 | 2013 | 2012 | |
Net Cash Provided by Operating Activities | $ (566) | $ 364 | $ (149) | $ 1,008 |
Non-GAAP Free Cash Flow Reconciliation Adjustments: | ||||
Purchase of property and equipment | (100) | (94) | (214) | (239) |
Non-GAAP Free Cash Flow | $ (666) | $ 270 | $ (363) | $ 769 |
Free cash flow includes net cash provided by operating activities less replacement purchases and equipment. Capital expenditures related to long-term investments and new technology developments are omitted. During 2Q13 the Company invested $232,000 in leasehold improvements for its new corporate headquarters located in Salt Lake City, UT, this amount is excluded from the Free Cash Flow calculation. | ||||
Non-GAAP Net Debt | ||||
(In $000's) | ||||
Unaudited results of operations | ||||
As of June 30, | ||||
2013 | 2012 | |||
Total Debt | $2,062 | $2,711 | ||
Less Total Cash | 3,617 | 1,106 | ||
Non-GAAP Net Debt | $ (1,555) | $ 1,605 |