AP NEWS

Park City Group Reports Record EPS of $0.08 for the Second Fiscal Quarter of 2019

February 7, 2019

SALT LAKE CITY--(BUSINESS WIRE)--Feb 7, 2019--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, and improve supply chain efficiencies, announced financial results for the second fiscal quarter ended December 31, 2018.

Second Fiscal Quarter Financial and Recent Business Highlights:

Operating margin exceeded 30% driving record net income and upside to EPS expectations. Compliance connections metric reached 75,000 for over 320,000 connections across all applications. MarketPlace interest points to additional users and additional use cases before fiscal year-end. Supply Chain trends remain positive as HUBs look to drive capabilities deeper into supplier base. Customer focus drove strong connection growth, low churn, and increased cross selling.

“Our converged business is driving benefits in terms of improved execution and enhanced profitability, as evidenced by the record net income in the quarter,” said Randall K. Fields, Chairman and Chief Executive Officer of Park City Group. “We continue to scale our network of connections, and we are still at the early stages for increasing the scope of our activities on this network. Our single technology platform and investments in automation are allowing us to shed the overhead of our legacy model. As we focus the Success Team on serving our customers through a single, cohesive application platform, we expect revenue growth to accelerate and earnings growth to continue to outpace revenue growth.”

“Our activities in the quarter were focused on execution to ensure our customer’s success,” added Mr. Fields. “We now have over 75,000 compliance connections, as the team focused on onboarding suppliers for two large Tier 1 compliance customers which we won in the first quarter. One of these HUBs is one of the largest wholesalers in the country, and the other was a large retailer where our mandate grew since the initial engagement last quarter. These two engagements, and a robust pipeline of Tier 1 and Tier 2 prospects, give us confidence fiscal 2019 will be another strong year for adding compliance connections.”

“Interest in MarketPlace continues to grow,” said Mr. Fields. “As we projected, we have added two more buyers to MarketPlace, achieving this goal ahead of our own target of the end of our fiscal year. One of these will begin using the platform this quarter for the same use case as our initial buyer. The second launched in December for a completely new use case and has become a valuable customer reference. MarketPlace is early stage and subject to quarterly variances, due to seasonality and customer initiatives, but we are highly encouraged and expect to demonstrate the progress we have made.”

“Industry dynamics continue to drive higher interest in our supply chain capabilities as our HUBs are looking to drive our applications deeper into their supplier bases,” said Mr. Fields. “This is happening organically through an acceleration in the addition of new suppliers to existing HUBs and through high-level discussion for HUB-wide mandates and large supplier-driven mandates like we saw at the end of the prior fiscal year. We believe there is an eight-figure opportunity just from engaging every supplier we already enable at each of our HUBs they already service.”

Financial Results Summary:

Second Fiscal Quarter Results: Total revenue declined 3% to $5.6 million for the three months ended December 31, 2018, as compared to $5.7 million during the same period a year ago primarily due to lower revenues from the sale of licenses and a year-over-year decline in MarketPlace revenue. Total operating expenses were $3.9 million, an 11% decrease from $4.4 million a year ago, as the Company is leveraging investments made in increasing productivity. GAAP net income was $1.7 million, or 30% of revenue, versus $1.4, or 24% of revenue, a year ago, and GAAP net income to common shareholders was $1.5 million, or $0.08 per diluted share, compared to $1.2 million, or $0.06 per diluted share, a year ago.

Fiscal 2019 To Date Results: Total revenue increased 10% to $11.5 million for the six months ended December 31, 2018, as compared to $10.4 million during the same period a year ago primarily due to an increase in subscription revenues for the Company’s compliance and supply chain services. Total operating expenses were $8.8 million, a 2% increase from $8.6 million a year ago, as the Company is leveraging investments made in increasing productivity. GAAP net income was $2.7 million, or 23% of revenue, versus $1.7, or 16% of revenue, a year ago, and GAAP net income to common shareholders was $2.4 million, or $0.12 per diluted share, compared to $1.4 million, or $0.07 per diluted share, a year ago.

Conference Call:

The Company will host a conference call at 4:30 P.M. ET today, February 7, 2019 to discuss the Company’s results. Investors and interested parties may participate in the call by dialing 877-407-9716 or 201-493-6779 (international) and referring Conference ID: 13687250. The conference call is also being webcast and is available via the investor relations section of the Company’s website, www.parkcitygroup.com. A replay of the conference call will be available from 7:30 ET today until 11:59 p.m. ET on March 7, 201-. The Replay can be accessed by calling 844-512-2921 (toll-free) or 412-317-6671 (international). Please enter pin number 13687250 to access the replay.

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 partners with 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-Q for the fiscal quarter ended December 31, 2018 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.

Non-GAAP Financial Measures

While this press release does not include non-GAAP financial measures, the financial presentation below contains certain financial measures defined as “non-GAAP financial measures” by the Securities and Exchange Commission, including non-GAAP EBITDA and non-GAAP earnings per share. 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, 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, amortization of acquired intangible assets and other one-time cash and non-cash charges. 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. Because Park City Group has historically reported certain non-GAAP results to investors, the Company believes that the inclusion of non-GAAP measures in the financial presentation below allows investors to compare the Company’s financial results with the Company’s historical financial results reported using non-GAAP financial measures, as well as with the financial results reported by others.

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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190207005794/en/

CONTACT: Investor Relations:

Todd Mitchell, CFO

435-645-2216

investor-relations@parkcitygroup.com

Or

Hayden IR

Rob Fink / Brett Maas

646-415-8972 / 646-536-7331

PCYG@haydenir.com

KEYWORD: UNITED STATES NORTH AMERICA UTAH

INDUSTRY KEYWORD: CONVENIENCE STORE CATALOG DEPARTMENT STORES DISCOUNT/VARIETY TECHNOLOGY ONLINE RETAIL DATA MANAGEMENT SUPPLY CHAIN MANAGEMENT SOFTWARE TRANSPORT MANUFACTURING LOGISTICS/SUPPLY CHAIN MANAGEMENT PACKAGING RETAIL SPECIALTY OTHER RETAIL

SOURCE: Park City Group, Inc.

Copyright Business Wire 2019.

PUB: 02/07/2019 04:15 PM/DISC: 02/07/2019 04:15 PM

http://www.businesswire.com/news/home/20190207005794/en

AP RADIO
Update hourly