Park City Group Reports 41% Increase in Net Income for the Third Quarter of Fiscal 2022
Income from Operations increases
Third Fiscal Quarter Financial Highlights:
-
Recurring revenue increased
7.3% to . Year-to-date, recurring revenue increased$4.6 million 8.1% to .$13.3 million -
Recurring SaaS revenue increased from
70% of total revenue to99% of revenue. -
Total revenue decreased to
from$4.6 million , down$6.0 million 24% due to the elimination of essentially all non-recurring revenue, including MarketPlace. -
Total operating expense decreased
36% to from$3.4 million .$5.3 million -
Operating income increased
64% to from$1.2 million in the third quarter last year.$718,000 -
GAAP net income increased
41% to vs. net income of$1.1 million .$773,000 -
Net income to common shareholders increased
50% to , vs.$941,000 .$627,000 -
EPS of
, up$0.05 55% vs. in the prior year third quarter.$0.03 -
Cash from operations of
year-to-date.$4.0 million -
The Company repurchased 538,376 shares at an average price of
for a total of$6.95 in the quarter.$3.74 million
“During the quarter, an existing customer which is one of the largest wholesalers in the world, signed an agreement to be a ReposiTrak reseller,” continued
“Our recurring revenue in the quarter represented
Third Quarter Financial Results (three months ended
Total revenue decreased
Year-To-Date Financial Results (nine months ended
Total revenue decreased
Share Repurchases:
In the third quarter, the Company repurchased 538,376 shares at an average price of
Balance Sheet:
The Company had
Conference Call:
The Company will host a conference call at
Participant Dial-In Numbers:
Date:
Time:
Toll-Free: 1-877-407-9716
Toll/International: 1-201-493-6779
Conference ID: 13729802
Replay Dial-In Numbers:
Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Start:
Replay Expiry:
Replay Pin Number: 13729802
About
Specific disclosure relating to
Forward-Looking Statement
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the
Consolidated Condensed Balance Sheets (Unaudited)
|
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2022 |
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2021 |
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Assets |
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|
|
|
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|
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Current Assets: |
|
|
|
|
|
|
|
|
Cash |
|
$ |
21,269,307 |
|
|
$ |
24,070,322 |
|
Receivables, net of allowance for doubtful accounts of |
|
|
3,593,383 |
|
|
|
3,891,699 |
|
Contract asset – unbilled current portion |
|
|
665,322 |
|
|
|
1,248,936 |
|
Prepaid expense and other current assets |
|
|
1,163,489 |
|
|
|
490,817 |
|
Total Current Assets |
|
|
26,691,501 |
|
|
|
29,701,774 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
865,931 |
|
|
|
2,589,194 |
|
|
|
|
|
|
|
|
|
|
Other Assets: |
|
|
|
|
|
|
|
|
Deposits and other assets |
|
|
22,414 |
|
|
|
22,414 |
|
Prepaid expense – less current portion |
|
|
67,098 |
|
|
|
47,987 |
|
Contract asset – unbilled long-term portion |
|
|
206,052 |
|
|
|
408,925 |
|
Operating lease – right-of-use asset |
|
|
382,544 |
|
|
|
695,371 |
|
Customer relationships |
|
|
427,050 |
|
|
|
525,600 |
|
|
|
|
20,883,886 |
|
|
|
20,883,886 |
|
Capitalized software costs, net |
|
|
128,799 |
|
|
|
171,732 |
|
Total Other Assets |
|
|
22,117,843 |
|
|
|
22,755,915 |
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
49,675,275 |
|
|
$ |
55,046,883 |
|
|
|
|
|
|
|
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Liabilities and Stockholders' Equity |
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Current liabilities: |
|
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|
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|
|
|
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Accounts payable |
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$ |
493,405 |
|
|
$ |
467,194 |
|
Accrued liabilities |
|
|
1,065,034 |
|
|
|
988,092 |
|
Contract liability - deferred revenue |
|
|
1,542,020 |
|
|
|
1,755,341 |
|
Lines of credit |
|
|
3,385,867 |
|
|
|
6,000,000 |
|
Operating lease liability - current |
|
|
52,669 |
|
|
|
90,156 |
|
Total current liabilities |
|
|
6,538,995 |
|
|
|
9,300,783 |
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|
|
|
|
|
|
|
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Long-term liabilities: |
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|
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Operating lease liability – less current portion |
|
|
335,903 |
|
|
|
605,214 |
|
|
|
|
|
|
|
|
|
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Total liabilities |
|
|
6,874,898 |
|
|
|
9,905,997 |
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|
|
|
|
|
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Stockholders’ equity: |
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Preferred Stock; |
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Series B Preferred, 700,000 shares authorized; 625,375 shares issued and outstanding at |
|
|
6,254 |
|
|
|
6,254 |
|
Series B-1 Preferred, 550,000 shares authorized; 212,402 shares issued and outstanding at |
|
|
2,124 |
|
|
|
2,124 |
|
Common Stock, |
|
|
186,382 |
|
|
|
193,522 |
|
Additional paid-in capital |
|
|
69,498,487 |
|
|
|
74,298,924 |
|
Accumulated deficit |
|
|
(26,892,870 |
) |
|
|
(29,359,938 |
) |
Total stockholders’ equity |
|
|
42,800,377 |
|
|
|
45,140,886 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
49,675,275 |
|
|
$ |
55,046,883 |
|
Consolidated Condensed Statements of Operations (Unaudited)
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
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||||||||||
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2022 |
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2021 |
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2022 |
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|
2021 |
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||||
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|
|
|
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Revenue |
|
$ |
4,555,906 |
|
|
$ |
6,022,540 |
|
|
$ |
13,469,170 |
|
|
$ |
16,422,146 |
|
|
|
|
|
|
|
|
|
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|
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|
|
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Operating expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services and product support |
|
|
773,651 |
|
|
|
2,634,224 |
|
|
|
2,437,351 |
|
|
|
6,706,769 |
|
Sales and marketing |
|
|
1,229,677 |
|
|
|
1,155,266 |
|
|
|
3,570,606 |
|
|
|
3,643,602 |
|
General and administrative |
|
|
1,178,649 |
|
|
|
1,255,410 |
|
|
|
3,484,307 |
|
|
|
3,568,474 |
|
Depreciation and amortization |
|
|
197,393 |
|
|
|
259,343 |
|
|
|
676,324 |
|
|
|
769,440 |
|
Total operating expense |
|
|
3,379,370 |
|
|
|
5,304,243 |
|
|
|
10,168,588 |
|
|
|
14,688,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
1,176,536 |
|
|
|
718,297 |
|
|
|
3,300,582 |
|
|
|
1,733,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
24,975 |
|
|
|
60,234 |
|
|
|
167,015 |
|
|
|
176,078 |
|
Interest expense |
|
|
(13,919 |
) |
|
|
(4,248 |
) |
|
|
(20,120 |
) |
|
|
(76,700 |
) |
Unrealized gain (loss) on short term investments |
|
|
(65,889 |
) |
|
|
(1,131 |
) |
|
|
(328,987 |
) |
|
|
54,434 |
|
Other gain (loss) |
|
|
(5,649 |
) |
|
|
10,000 |
|
|
|
(88,730 |
) |
|
|
1,109,350 |
|
Income before income taxes |
|
|
1,116,054 |
|
|
|
783,152 |
|
|
|
3,029,760 |
|
|
|
2,997,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(Provision) for income taxes: |
|
|
(28,038 |
) |
|
|
(9,955 |
) |
|
|
(122,859 |
) |
|
|
(46,141 |
) |
Net income |
|
|
1,088,016 |
|
|
|
773,197 |
|
|
|
2,906,901 |
|
|
|
2,950,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Dividends on preferred stock |
|
|
(146,611 |
) |
|
|
(146,611 |
) |
|
|
(439,833 |
) |
|
|
(439,833 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net income applicable to common shareholders |
|
$ |
941,405 |
|
|
$ |
626,586 |
|
|
$ |
2,467,068 |
|
|
$ |
2,511,049 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares, basic |
|
|
19,019,000 |
|
|
|
19,555,000 |
|
|
|
19,255,000 |
|
|
|
19,511,000 |
|
Weighted average shares, diluted |
|
|
19,422,000 |
|
|
|
19,942,000 |
|
|
|
19,579,000 |
|
|
|
19,744,000 |
|
Basic income per share |
|
$ |
0.05 |
|
|
$ |
0.03 |
|
|
$ |
0.13 |
|
|
$ |
0.13 |
|
Diluted income per share |
|
$ |
0.05 |
|
|
$ |
0.03 |
|
|
$ |
0.13 |
|
|
$ |
0.13 |
|
PARK CITY GROUP, INC.
Consolidated Condensed Statements of Cash Flows (Unaudited)
|
|
Nine Months Ended
|
|
|||||
|
|
2022 |
|
|
2021 |
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||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
2,906,901 |
|
|
$ |
2,950,882 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
676,324 |
|
|
|
769,440 |
|
Amortization of operating right of use asset |
|
|
312,826 |
|
|
|
63,896 |
|
Stock compensation expense |
|
|
320,199 |
|
|
|
249,733 |
|
Bad debt expense |
|
|
391,667 |
|
|
|
516,694 |
|
Gain on disposal of assets |
|
|
(24,737 |
) |
|
|
- |
|
Gain on debt extinguishment |
|
|
- |
|
|
|
(1,109,350 |
) |
Loss on sale of property and equipment |
|
|
107,820 |
|
|
|
- |
|
(Increase) decrease in: |
|
|
|
|
|
|
|
|
Accounts receivables |
|
|
198,430 |
|
|
|
(1,508,097 |
) |
Long-term receivables, prepaids and other assets |
|
|
(414,998 |
) |
|
|
293,042 |
|
(Decrease) increase in: |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
26,210 |
|
|
|
1,091,304 |
|
Operating lease liability |
|
|
(306,798 |
) |
|
|
(63,895 |
) |
Accrued liabilities |
|
|
52,441 |
|
|
|
549,537 |
|
Deferred revenue |
|
|
(213,321 |
) |
|
|
(452,633 |
) |
Net cash provided by operating activities |
|
|
4,032,964 |
|
|
|
3,350,553 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Sale of property and equipment |
|
|
1,374,085 |
|
|
|
- |
|
Purchase of property and equipment |
|
|
(50,823 |
) |
|
|
(105,391 |
) |
Net cash provided by (used in) investing activities |
|
|
1,323,262 |
|
|
|
(105,391 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Net (decrease) increase in lines of credit |
|
|
(2,614,133 |
) |
|
|
1,340,000 |
|
Common Stock buyback/retirement |
|
|
(5,212,452 |
) |
|
|
(508,243 |
) |
Proceeds from employee stock plan |
|
|
109,177 |
|
|
|
114,430 |
|
Dividends paid |
|
|
(439,833 |
) |
|
|
(439,833 |
) |
Payments on notes payable |
|
|
- |
|
|
|
(920,754 |
) |
Net cash used in financing activities |
|
|
(8,157,241 |
) |
|
|
(414,400 |
) |
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents |
|
|
(2,801,015 |
) |
|
|
2,830,762 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
|
|
24,070,322 |
|
|
|
20,345,330 |
|
Cash and cash equivalents at end of period |
|
$ |
21,269,307 |
|
|
$ |
23,176,092 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
|
|
Cash paid for income taxes |
|
$ |
172,342 |
|
|
$ |
55,772 |
|
Cash paid for interest |
|
$ |
21,607 |
|
|
$ |
76,700 |
|
Cash paid for operating leases |
|
$ |
66,871 |
|
|
$ |
71,200 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of non-cash investing and financing activities: |
|
|
|
|
|
|
|
|
Common stock to pay accrued liabilities |
|
$ |
234,447 |
|
|
$ |
214,550 |
|
Dividends accrued on preferred stock |
|
$ |
439,833 |
|
$ |
439,833 |
|
Reconciliation of Non-GAAP Items – Recurring Revenue
Three Months Ended, |
Nine Months Ended, |
||||||||
2022 |
2021 |
2022 |
2021 |
||||||
Recurring - Subscription, Support and Services | $ |
4,553,844 |
$ |
4,245,247 |
$ |
13,259,456 |
$ |
12,263,945 |
|
Non-Recurring - Services |
|
- |
|
326,535 |
|
81,618 |
|
584,394 |
|
Transaction Based - Marketplace |
|
2,062 |
|
1,450,758 |
|
128,096 |
|
3,573,807 |
|
$ |
4,555,906 |
$ |
6,022,540 |
$ |
13,469,170 |
$ |
16,422,146 |
||
Recurring Revenue as % of Total Revenue |
|
|
|
|
|
|
|
|
|
Increase (Decrease) in Recurring Revenue ($) | $ |
308,597 |
$ |
995,511 |
|||||
Growth (Decline) in Recurring Revenue (%) |
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220516005651/en/
Investor Relations:
Investor-relations@parkcitygroup.com
Or
FNK IR
646.809.4048
rob@fnkir.com
Source: