Reached inflection point with record fiscal 4Q revenue and rising GAAP profitability.
Achieved 4x increase in ReposiTrak connections with more than 10,000 at fiscal year-end.
Significant acceleration expected in fiscal 2017 operating and financial trends.
SALT LAKE CITY, Sept. 07, 2016 (GLOBE NEWSWIRE) — Park City Group (NASDAQ:PCYG), a cloud-based software company that uses big data management to help retailers and their suppliers ‘sell more, stock less and see everything’, today announced results for its fiscal fourth quarter and full-year ended June 30, 2016.
Strategic and Financial Highlights:*
- Revenue and profitability reached record levels in fiscal fourth quarter and fiscal 2016. Revenue was $3.8 million in the quarter, increasing 10% from a year ago on a GAAP basis and 29% on a pro forma basis. Revenue was $14.0 million for the year, increasing 3% from fiscal 2015 on a GAAP basis and 21% on a pro forma basis. Fiscal 2016 GAAP net income was $667,000, with GAAP net income of $498,000 in the fourth quarter. “We reached an inflection point in the fourth quarter, with revenue growth approaching 30% on a pro forma basis, and net income reaching double-digit margin, demonstrating both continued acceleration and leverage in our business,” said Randall K. Fields, Park City Group’s Chairman and CEO.
- ReposiTrak ended year with more than 10,000 connections increasing from 2,500 last year. ReposiTrak added six new Hubs in the fourth quarter for a total of 28, up from 13 last year. “ReposiTrak reached a tipping point with regard to market adoption,” said Mr. Fields. “Supplier revenue grew 300% in fiscal 2016, driven by an increase in the number of Hubs and acceleration in the rate at which we onboard their suppliers. As expected, we are seeing efficiency gains from the network effect of having more Hubs and investment in infrastructure over the last two years.”
- ReposiTrak poised to meet tougher food safety regulations with deeper product offering. “Industry awareness of new food safety risks and regulations has reached a critical point with the first tranche of rules related to the Food Safety Modernization Act (FSMA) going into effect this month,” said Mr. Fields. “Our partnership with the industry standard auditing platform, SQF, is now up and running, giving us additional reach and capabilities. We are also introducing new applications to the ReposiTrak’s suite, and now that we have reached critical mass at the retail/wholesale level, we are moving deeper into the supply chain.”
- Outlook for fiscal 2017 points to significant acceleration in revenue growth and earnings. Management anticipates fiscal 2017’s revenue growth rate will exceed fiscal 2016’s pro forma level of 21% and that profitability will scale substantially from fiscal 2016 levels. “Overall growth will be underpinned by continued triple-digit growth in ReposiTrak revenues. We anticipate more than doubling ReposiTrak’s supplier connections. This accelerated growth and the intrinsic operating leverage of our business model should translate to double-digit net income margins and substantial cash flow in fiscal 2017,” said Mr. Fields.
- ReposiTrak momentum to drive higher levels of long-term revenue growth and profitability. “We are completing the convergence of our businesses and implementing strategies that will expand our market opportunity and drive higher levels of revenue growth and rising profitability well beyond fiscal 2017,” said Mr. Fields. “ReposiTrak is our lead and we are confident in its broad-based adoption. We expect to leverage ReposiTrak’s rapidly growing network to pull through other services while enhancing value to both Hubs and their suppliers.”
* References to pro forma financial results reflect the acquisition of ReposiTrak, the elimination of fees paid to Park City Group by ReposiTrak and the recognition of ReposiTrak’s subscription revenue in the comparable periods, which the Company believes is a better measure of actual performance as it gives a more accurate comparison of revenue from ongoing business activities in the comparable periods.
Financial Results Summary
Fiscal Fourth Quarter Results: Total revenue increased 10% for the three months ended June 30, 2016 to $3.79 million from $3.44 million on a reported (GAAP) basis, and 29% from $2.94 million a year ago on a pro forma (non-GAAP) basis. Total operating expenses during the quarter were $3.29 million, a 44% decrease from $5.90 million on a reported (GAAP) basis, and a 57% decrease from $7.66 million a year ago on a pro forma (non-GAAP) basis. As a result, net income was $498,000, versus a loss of $2.38 million on a reported (GAAP) basis, and a loss of $4.74 million a year ago on a pro forma (non-GAAP) basis. Net income to common shareholders was $315,000, or $0.02 per share, as compared to a loss of $2.51 million, or ($0.14) per share, on a reported (GAAP) basis, and a loss of $4.86 million, or ($0.27) per share, on a pro forma (non-GAAP) basis.
Fiscal 2016 Results: Total revenue increased 3% for the fiscal year ended June 30, 2016 to $14.01 million, from $13.65 million on a reported (GAAP) basis, and 21% from $11.57 million a year ago on a pro forma (non-GAAP) basis. Total operating expenses were $13.32 million, a 25% decrease from $17.74 million on a reported (GAAP) basis, and a 33% decrease from $19.93 million a year ago on a pro forma (non-GAAP) basis. As a result, net income was $667,000, versus a loss of $3.85 million on a reported (GAAP) basis, and a loss of $8.42 million a year ago on a pro forma (non-GAAP) basis. Net loss to common shareholders was $63,000, or ($0.00) per share, as compared to a loss of $6.56 million, or ($0.38) per share, on a reported (GAAP) basis, and a loss of $11.13 million, or ($0.61) per share, on a pro forma (non-GAAP) basis. The Company ended fiscal 2016 with $11.44 million in cash.
Conference Call:
The Company will host a conference call at 4:15 P.M. Eastern today, September 7, 2016 to discuss the results. Investors and interested parties may participate in the call by dialing 1-888-468-2440 and referring to Conference ID: 1195832. 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 (PCYG) is a Software-as-a-Service (“SaaS”) provider that brings unique visibility to the consumer goods supply chain, delivering actionable information to ensure products are available when and where consumers demand them. Park City Group’s technology also assists all participants in the food and drug supply chains to comply with food and drug safety regulations through the Company’s ReposiTrak subsidiary. More information is available at www.parkcitygroup.com and www.repositrak.com.
Specific disclosure relating to the acquisition of ReposiTrak, including management’s analysis of results from operations and financial condition, are contained in the Company’s quarterly report on Form 10-K for the quarter ended June 30, 2016 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 and Pro-Forma Results
This press release includes the following financial measures defined as “non-GAAP financial measures” by the Securities and Exchange Commission: 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, 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, 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 provides consistency in financial reporting.
In addition to reporting financial measures on a GAAP and non-GAAP basis, management has elected to disclose certain financial measures on a pro-forma basis because it believes this pro-forma comparison is more appropriate to its current accounting treatment for the business. The pro-forma financial results of the Company presented in this release reflect the elimination of Park City Group’s historical accounting treatment of ReposiTrak as a customer of the Company and present the Company’s prior financial results as if ReposiTrak were a wholly-owned subsidiary of the Company.
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. | |||||||||||||||||||||||||
| INCOME STATEMENT | |||||||||||||||||||||||||
| “AS REPORTED” | “AS REPORTED” | ||||||||||||||||||||||||
| 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
| FY ENDS June | 6/30/2016 | 6/30/2015 | % Change | 6/30/2016 | 6/30/2015 | % Change | |||||||||||||||||||
| Total Revenues | $ | 3,794,941 | $ | 3,444,259 | 10 | % | $ | 14,010,693 | $ | 13,648,715 | 3 | % | |||||||||||||
| Operating Expenses | |||||||||||||||||||||||||
| Cost of Services | 1,056,176 | 1,307,115 | (19 | %) | 4,279,724 | 5,256,251 | (19 | %) | |||||||||||||||||
| Sales and Marketing | 1,263,329 | 1,521,965 | (17 | %) | 5,371,005 | 5,941,349 | (10 | %) | |||||||||||||||||
| General and Administrative | 847,761 | 1,370,988 | (38 | %) | 3,165,077 | 4,279,641 | (26 | %) | |||||||||||||||||
| Depreciation and Amortization | 124,993 | 203,365 | (39 | %) | 507,446 | 768,165 | (34 | %) | |||||||||||||||||
| Goodwill Writeoff | – | 1,495,703 | NM | – | 1,495,703 | NM | |||||||||||||||||||
| Total Operating Expenses | 3,292,259 | 5,899,136 | (44 | %) | 13,323,252 | 17,741,109 | (25 | %) | |||||||||||||||||
| Income (Loss) from Operations | $ | 502,682 | ($ | 2,454,877 | ) | NM | $ | 687,441 | ($ | 4,092,394 | ) | NM | |||||||||||||
| Other Income (Expenses) | |||||||||||||||||||||||||
| Interest Income (Expenses) | (5,138 | ) | 71,897 | NM | 5,190 | 242,621 | (98 | %) | |||||||||||||||||
| Gain on Disposal of Investment | – | – | – | (26,128 | ) | – | NM | ||||||||||||||||||
| Income (Loss) Before Taxes | 497,544 | (2,382,980 | ) | NM | 666,503 | (3,849,773 | ) | NM | |||||||||||||||||
| (Provision) Benefit for Taxes | – | – | – | – | – | – | |||||||||||||||||||
| Net Income (Loss) | $ | 497,544 | ($ | 2,382,980 | ) | NM | $ | 666,503 | ($ | 3,849,773 | ) | NM | |||||||||||||
| Dividends on Preferred Stock | (182,752 | ) | (124,176 | ) | 47 | % | (729,288 | ) | (568,821 | ) | 28 | % | |||||||||||||
| Series B Restructure | – | – | – | – | (2,141,980 | ) | NM | ||||||||||||||||||
| Net Income (Loss) to Common Shareholders | $ | 314,792 | ($ | 2,507,156 | ) | NM | ($ | 62,785 | ) | ($ | 6,560,574 | ) | (99 | %) | |||||||||||
| GAAP EPS | $ | 0.02 | ($ | 0.14 | ) | NM | ($ | 0.00 | ) | ($ | 0.38 | ) | (99 | %) | |||||||||||
| Weighted Average Shares, Basic | 19,219,000 | 17,890,000 | 7 | % | 19,151,000 | 17,375,000 | 10 | % | |||||||||||||||||
| Park City Group, Inc. | |||||||||||||||||||||||||
| RECONCILIATION OF NON-GAAP ITEMS | |||||||||||||||||||||||||
| “AS REPORTED” | “AS REPORTED” | ||||||||||||||||||||||||
| 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
| FY ENDS June | 6/30/2016 | 6/30/2015 | % Change | 6/30/2016 | 6/30/2015 | % Change | |||||||||||||||||||
| Net Income (Loss) | $ | 497,544 | ($ | 2,382,980 | ) | NM | $ | 666,503 | ($ | 3,849,773 | ) | NM | |||||||||||||
| Adjustments: | |||||||||||||||||||||||||
| Depreciation and Amortization | 124,993 | 1,699,068 | (93 | %) | 507,446 | 2,263,868 | (78 | %) | |||||||||||||||||
| Bad Debt Expense | 25,000 | 61,798 | (60 | %) | 68,140 | 186,780 | (64 | %) | |||||||||||||||||
| Interest Expenses (Income) | 5,138 | (71,897 | ) | NM | (5,190 | ) | (242,621 | ) | (98 | %) | |||||||||||||||
| Gain on Disposal of Investment | – | – | – | 26,128 | – | NM | |||||||||||||||||||
| Stock Compensation Expense | 235,110 | 963,943 | (76 | %) | 1,010,312 | 2,760,329 | (63 | %) | |||||||||||||||||
| Adjusted EBITDA | $ | 887,785 | $ | 269,932 | NM | $ | 2,273,339 | $ | 1,118,583 | 103 | % | ||||||||||||||
| Net Income (Loss) | $ | 497,544 | ($ | 2,382,980 | ) | NM | $ | 666,503 | ($ | 3,849,773 | ) | NM | |||||||||||||
| Adjustments: | |||||||||||||||||||||||||
| Stock Compensation Expense | 235,110 | 963,943 | (76 | %) | 1,010,312 | 2,760,329 | (63 | %) | |||||||||||||||||
| Gain on Disposal of Investment | – | – | – | 26,128 | – | NM | |||||||||||||||||||
| Acquisition Related Amortization | 32,850 | 1,601,282 | (98 | %) | 131,400 | 1,918,019 | (93 | %) | |||||||||||||||||
| Adjusted non-GAAP Net Income (Loss) | 765,504 | 182,245 | 320 | % | 1,834,343 | 828,575 | 121 | % | |||||||||||||||||
| Dividends on Preferred Stock | (182,752 | ) | (124,176 | ) | 47 | % | (729,288 | ) | (568,821 | ) | 28 | % | |||||||||||||
| Adjusted non-GAAP Net Income (Loss) | |||||||||||||||||||||||||
| to Common Shareholders | $ | 582,752 | $ | 58,069 | 904 | % | $ | 1,105,055 | $ | 259,754 | 325 | % | |||||||||||||
| Adjusted Non-GAAP EPS | $ | 0.03 | $ | 0.00 | 834 | % | $ | 0.06 | $ | 0.01 | 286 | % | |||||||||||||
| Weighted Average Shares, Basic | 19,219,000 | 17,890,000 | 7 | % | 19,151,000 | 17,375,000 | 10 | % | |||||||||||||||||
| Park City Group, Inc. | |||||||||||||||||||||||||
| INCOME STATEMENT | |||||||||||||||||||||||||
| “PRO FORMA” for ReposiTrak Acquisition | “PRO FORMA” for ReposiTrak Acquisition | ||||||||||||||||||||||||
| 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
| FY ENDS June | 6/30/2016 | 6/30/2015 | % Change | 6/30/2016 | 6/30/2015 | % Change | |||||||||||||||||||
| Total Revenues | $ | 3,794,941 | $ | 2,941,511 | 29 | % | $ | 14,010,693 | $ | 11,571,795 | 21 | % | |||||||||||||
| Operating Expenses | |||||||||||||||||||||||||
| Cost of Services | 1,056,176 | 1,323,525 | (20 | %) | 4,279,724 | 5,272,661 | (19 | %) | |||||||||||||||||
| Sales and Marketing | 1,263,329 | 1,740,697 | (27 | %) | 5,371,005 | 6,470,985 | (17 | %) | |||||||||||||||||
| General and Administrative | 847,761 | 1,400,759 | (39 | %) | 3,165,077 | 4,426,766 | (29 | %) | |||||||||||||||||
| Depreciation and Amortization | 124,993 | 1,699,068 | (93 | %) | 507,446 | 2,263,868 | (78 | %) | |||||||||||||||||
| Goodwill Writeoff | – | 1,495,703 | NM | – | 1,495,703 | NM | |||||||||||||||||||
| Total Operating Expenses | 3,292,259 | 7,659,752 | (57 | %) | 13,323,252 | 19,929,983 | (33 | %) | |||||||||||||||||
| Income (Loss) from Operations | $ | 502,682 | ($ | 4,718,241 | ) | NM | $ | 687,441 | ($ | 8,358,188 | ) | NM | |||||||||||||
| Other Income (Expenses) | |||||||||||||||||||||||||
| Interest Income (Expenses) | (5,138 | ) | (19,007 | ) | NM | 5,190 | (64,262 | ) | (108 | %) | |||||||||||||||
| Gain on Disposal of Investment | – | – | – | (26,128 | ) | – | NM | ||||||||||||||||||
| Income (Loss) Before Taxes | 497,544 | (4,737,248 | ) | NM | 666,503 | (8,422,450 | ) | NM | |||||||||||||||||
| (Provision) Benefit for Taxes | – | – | – | – | – | – | |||||||||||||||||||
| Net Income (Loss) | $ | 497,544 | ($ | 4,737,248 | ) | NM | $ | 666,503 | ($ | 8,422,450 | ) | NM | |||||||||||||
| Dividends on Preferred Stock | (182,752 | ) | (124,176 | ) | 47 | % | (729,288 | ) | (568,821 | ) | 28 | % | |||||||||||||
| Series B Restructure | – | – | – | – | (2,141,980 | ) | NM | ||||||||||||||||||
| Net Income (Loss) to Common Shareholders | $ | 314,792 | ($ | 4,861,424 | ) | NM | ($ | 62,785 | ) | ($ | 11,133,251 | ) | (99 | %) | |||||||||||
| GAAP EPS | $ | 0.02 | ($ | 0.27 | ) | NM | ($ | 0.00 | ) | ($ | 0.61 | ) | (99 | %) | |||||||||||
| Weighted Average Shares, Basic | 19,219,000 | 18,207,000 | 6 | % | 19,151,000 | 18,248,000 | 5 | % | |||||||||||||||||
| Park City Group, Inc. | |||||||||||||||||||||||||
| RECONCILIATION OF NON-GAAP ITEMS | |||||||||||||||||||||||||
| “PRO FORMA” for ReposiTrak Acquisition | “PRO FORMA” for ReposiTrak Acquisition | ||||||||||||||||||||||||
| 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
| FY ENDS June | 6/30/2016 | 6/30/2015 | % Change | 6/30/2016 | 6/30/2015 | % Change | |||||||||||||||||||
| Net Income (Loss) | $ | 497,544 | ($ | 4,737,248 | ) | NM | $ | 666,503 | ($ | 8,422,450 | ) | NM | |||||||||||||
| Adjustments: | |||||||||||||||||||||||||
| Depreciation and Amortization | 124,993 | 1,699,068 | (93 | %) | 507,446 | 2,263,868 | (78 | %) | |||||||||||||||||
| Bad Debt Expense | 25,000 | 61,798 | (60 | %) | 68,140 | 186,780 | (64 | %) | |||||||||||||||||
| Interest Expenses (Income) | 5,138 | 19,007 | (73 | %) | (5,190 | ) | 64,262 | (108 | %) | ||||||||||||||||
| Gain on Disposal of Investment | – | – | – | 26,128 | – | NM | |||||||||||||||||||
| Stock Compensation Expense | 235,110 | 963,943 | (76 | %) | 1,010,312 | 2,760,329 | (63 | %) | |||||||||||||||||
| Adjusted EBITDA | $ | 887,785 | ($ | 1,993,432 | ) | NM | $ | 2,273,339 | ($ | 3,147,211 | ) | NM | |||||||||||||
| Net Income (Loss) | $ | 497,544 | ($ | 4,737,248 | ) | NM | $ | 666,503 | ($ | 8,422,450 | ) | NM | |||||||||||||
| Adjustments: | |||||||||||||||||||||||||
| Stock Compensation Expense | 235,110 | 963,943 | (76 | %) | 1,010,312 | 2,760,329 | (63 | %) | |||||||||||||||||
| Gain on Disposal of Investment | – | – | – | 26,128 | – | NM | |||||||||||||||||||
| Acquisition Related Amortization | 32,850 | 138,429 | (76 | %) | 131,400 | 138,429 | (5 | %) | |||||||||||||||||
| Adjusted non-GAAP Net Income (Loss) | 765,504 | (3,634,876 | ) | NM | 1,834,343 | (5,523,692 | ) | NM | |||||||||||||||||
| Dividends on Preferred Stock | (182,752 | ) | (124,176 | ) | 47 | % | (729,288 | ) | (568,821 | ) | 28 | % | |||||||||||||
| Adjusted non-GAAP Net Income (Loss) | |||||||||||||||||||||||||
| to Common Shareholders | $ | 582,752 | ($ | 3,759,052 | ) | NM | $ | 1,105,055 | ($ | 6,092,513 | ) | NM | |||||||||||||
| Adjusted Non-GAAP EPS | $ | 0.03 | ($ | 0.21 | ) | NM | $ | 0.06 | ($ | 0.33 | ) | NM | |||||||||||||
| Weighted Average Shares, Basic | 19,219,000 | 18,207,000 | 6 | % | 19,151,000 | 18,248,000 | 5 | % | |||||||||||||||||
| Park City Group, Inc. | |||||||||||
| CONSOLIDATED BALANCE SHEET |
|||||||||||
| FY Ended | |||||||||||
| FY ENDS June | 6/30/2016 | 6/30/2015 | |||||||||
| Assets | |||||||||||
| Current Assets: | |||||||||||
| Cash & Equivalents | $ | 11,443,388 | $ | 11,325,572 | |||||||
| Accounts Receivables, Net Allowance | 3,547,968 | 1,640,591 | |||||||||
| Prepaid and Other Current Assets | 393,275 | 463,427 | |||||||||
| Total Current Assets | 15,384,631 | 13,429,590 | |||||||||
| Property and Equipment, net | 469,383 | 764,442 | |||||||||
| Other Assets | |||||||||||
| Deposits and Other Assets | 14,866 | 14,866 | |||||||||
| Investments | 471,584 | – | |||||||||
| Customer Relationships | 1,182,600 | 1,314,000 | |||||||||
| Goodwill | 20,883,886 | 20,883,886 | |||||||||
| Capitalized software costs, net | 182,942 | – | |||||||||
| Total Other Assets | 22,735,878 | 22,212,752 | |||||||||
| Total Assets | $ | 38,589,892 | $ | 36,406,784 | |||||||
| Liabilities | |||||||||||
| Current Liabilities | |||||||||||
| Accounts Payable | $ | 580,309 | $ | 817,119 | |||||||
| Accrued Liabilities | 1,502,203 | 2,521,111 | |||||||||
| Deferred Revenue | 2,717,094 | 2,331,920 | |||||||||
| Lines of Credit | 2,500,000 | 2,500,000 | |||||||||
| Notes Payable, Current Portion | 239,199 | 227,301 | |||||||||
| Total Current Liabilities | 7,538,805 | 8,397,451 | |||||||||
| Long-Term Liabilities | |||||||||||
| Notes Payable, Less Current Portion | 491,253 | 349,192 | |||||||||
| Other Long-Term Liabilities | 57,275 | 75,518 | |||||||||
| Total Long Term Liabilities | 548,528 | 424,710 | |||||||||
| Total Liabilities | $ | 8,087,333 | $ | 8,822,161 | |||||||
| Shareholder Equity | |||||||||||
| Series B Preferred | $ | 6,254 | $ | 6,254 | |||||||
| Series B-1 Preferred | 1,802 | 742 | |||||||||
| Common Stock | 192,296 | 188,759 | |||||||||
| Additional Paid-In Capital | 73,272,620 | 70,296,496 | |||||||||
| Accumulated Deficit | (42,970,413 | ) | (42,907,628 | ) | |||||||
| Total Shareholder Equity | $ | 30,502,559 | $ | 27,584,623 | |||||||
| Total Liabilities and Shareholder Equity | $ | 38,589,892 | $ | 36,406,784 | |||||||
| Park City Group, Inc. | |||||||||||
| CONSOLIDATED STATEMENT OF CASH FLOWS |
|||||||||||
| FY Ended | |||||||||||
| FY ENDS June | 6/30/2016 |
6/30/2015 |
|||||||||
| Cash Flows From Operating Activities: | |||||||||||
| Net Income (Loss) | $ | 666,503 | ($ | 3,849,773 | ) | ||||||
| Adjustments to Reconcile Net Income (Loss), in Operating Activities: | |||||||||||
| Depreciation and Amortization | 507,446 | 768,165 | |||||||||
| Impairment of Intangibles | – | 1,495,703 | |||||||||
| Bad Debt Expense | 68,140 | 186,780 | |||||||||
| Stock Compensation Expense | 1,010,312 | 2,760,329 | |||||||||
| Charitable Non-Cash Contributions | – | 157,950 | |||||||||
| Loss on Short-Term Marketable Securities | 26,128 | – | |||||||||
| Decrease (Increase) in Trade Receivables | (1,975,517 | ) | 710,302 | ||||||||
| Decrease (Increase) in Prepaid Expenses and Other Assets | 70,152 | (501,957 | ) | ||||||||
| Increase (Decrease) in Accounts Payable | (236,810 | ) | (49,296 | ) | |||||||
| Increase (Decrease) in Accrued Liabilities | (18,305 | ) | 136,517 | ||||||||
| Increase (Decrease) in Deferred Revenue | 385,174 | (107,123 | ) | ||||||||
| Net Cash From (Used In) Operating Activities |
$ | 503,223 | $ | 1,707,597 | |||||||
| Cash Flows From Investing Activities: | |||||||||||
| Cash from Sale of Marketable Securities | 4,612,908 | – | |||||||||
| Cash Received (Advanced) on Notes Receivable | – | 300,000 | |||||||||
| Net Cash Received in Acquisition | – | 22,119 | |||||||||
| Cash Advance on Note Receivable | – | (2,559,460 | ) | ||||||||
| Sale (Purchase) of Property and Equipment | (80,987 | ) | (369,536 | ) | |||||||
| Capitalization of software costs | (182,942 | ) | – | ||||||||
| Purchase of Long-Term Investments | (75,584 | ) | – | ||||||||
| Purchase of Marketable Securities | (4,639,036 | ) | – | ||||||||
| Net Cash From (Used In) Investing Activities | ($ | 365,641 | ) | ($ | 2,606,877 | ) | |||||
| Cash Flows From Financing Activities: | |||||||||||
| Proceeds from Employee Stock Plans | 199,848 | 203,211 | |||||||||
| Proceeds from Exercise of Options and Warrants | 33,002 | – | |||||||||
| Proceeds from Issuance of Notes Payable | – | 172,795 | |||||||||
| Proceeds from Issuance of Stock | – | 7,606,384 | |||||||||
| Net Increase in Line of Credit | – | 1,300,000 | |||||||||
| Preferred Stock Redemption | – | (7,500 | ) | ||||||||
| Dividends Paid | (10,575 | ) | (157,147 | ) | |||||||
| Payments on Notes Payable and Capital Leases | (242,041 | ) | (245,450 | ) | |||||||
| Net Cash From (Used In) Financing Activities |
($ | 19,766 | ) | $ | 8,872,293 | ||||||
| Net Increase (Decrease) in Cash | 117,816 | 7,973,013 | |||||||||
| Cash at Beginning of Period | $ | 11,325,572 | $ | 3,352,559 | |||||||
| Cash at End of Period | $ | 11,443,388 | $ | 11,325,572 | |||||||
CONTACT: Investor Relations Contact: Jeff Elliott Three Part Advisors, LLC 972-423-7070 Dave Mossberg Three Part Advisors, LLC 817-310-0051