EX-99.1 2 ex_676225.htm EXHIBIT 99.1 ex_676225.htm

 

Exhibit 99.1

 

ReposiTrak Delivers Earnings Per Share of $0.08, Grows Recurring Revenue 6% in Fiscal Third Quarter

 

Onboarding of Traceability Customers Continues to Accelerate; Company Ends Quarter with $24.5 Million in Cash, No Debt

 

Salt Lake City, UT May 15, 2024 –ReposiTrak (NYSE: TRAK), the world's largest food traceability and regulatory compliance network, built upon its proven inventory management and out-of-stock reduction SaaS platform, today announced financial results for the third fiscal quarter (“FQ3 2024”) ended March 31, 2024.

 

Third Quarter Financial Highlights:

 

 

Third quarter total revenue increased 5% to $5.1 million from $4.8 million.

 

Recurring revenue increased 6%, net of the planned elimination of high-touch, low-opportunity revenue, to $5.1 million from $4.8 million, representing approximately 99% of total revenue.

 

Quarterly operating expense increased 15% to $3.8 million from $3.3 million. The third fiscal quarter last year included approximately $1 million in an Employee Retention Credit (“ERC”), reducing general and administrative expenses.

 

Quarterly operating income decreased 17% to $1.3 million from $1.5 million last year. Excluding the non-recurring ERC credit in the third fiscal quarter last year, operating income would have increased approximately $800,000 year-over-year.

 

Quarterly GAAP net income decreased 7% to $1.6 million from $1.7 million last year. Excluding the non-recurring ERC credit in the third fiscal quarter last year, net income would have increased approximately $900,000 year-over-year.

 

Quarterly net income to common shareholders was $1.4 million, down 7% from $1.5 million last year. Excluding the non-recurring ERC credit in the third fiscal quarter last year, net income to common shareholders would have increased approximately $900,000 year-over-year.

 

Quarterly EPS of $0.08, unchanged from the prior year.

 

During the quarter, the Company redeemed 70,093 preferred shares for the stated redemption price of $10.70 per share for a total of $749,995.

 

The Company finished the quarter with $24.5 million in cash and no bank debt.

 

Randall K. Fields, Chairman and CEO of ReposiTrak commented, “We continue to add new retailers and suppliers to the ReposiTrak Traceability Network. Revenue from traceability now represents approximately 5% of our consolidated revenue, on an annualized basis, and we are more confident than ever that Traceability will double our revenue over the next three years. The production facilities in hand that have been already been implemented, and those in the queue to be implemented in the ReposiTrak Traceability Network (RTN), already exceed our initial estimates for the market size and represents an annual recurring revenue (ARR) that is expected to double our revenue base over the next three years.”

 

“Meanwhile, we continue to maintain robust profitability, returning capital to shareholders in the form of a cash dividend, redeeming preferred shares, all while growing our cash balances,” added Fields. “This approach will not change. ReposiTrak is the clear leader in the rapidly unfolding traceability industry, as evidenced by our market share, industry endorsements, and the near-term investments are already beginning to lead to higher revenue, earnings, and cash as the FSMA 204 deadline is right around the corner.”

 

Third Fiscal Quarter Financial Results (three months ended March 31, 2024, vs. three months ended March 31, 2023):

 

Total revenue was up 5% to $5.08 million as compared to $4.82 million in the prior-year third quarter. Total operating expenses were $3.82 million, up 15% compared to $3.30 million last year. General and administrative expenses increased by 48%. GAAP net income was $1.55 million compared to $1.66 million. Net income to common shareholders was $1.42 million, or $0.08 per diluted share, compared to $1.52 million, or $0.08 per diluted share.

 

 

 

Year-to-Date Financial Results (nine months ended March 31, 2024, vs. nine months ended March 31, 2023):

 

Total revenue was up 7% to $15.27 million as compared to $14.30 million in the prior-year period. Total operating expense was $11.57 million, up 12% compared to $10.37 million last year. The third fiscal quarter last year included non-recurring Employee Retention Credit benefit of approximately $1 million, reducing the year-ago operating expense. Inclusive of the impact of this credit in the year-ago quarter, GAAP net income was $4.38 million compared to $4.21 million. Net income to common shareholders was $3.95 million, or $0.22 per basic and $0.21 per diluted share, compared to $3.77 million, or $0.20 per basic and $0.20 per diluted share last year.

 

Return of Capital:

 

In the third quarter of fiscal 2024, the Company redeemed another 70,093 preferred shares at the stated redemption price of $10.70 per share for a total of $749,995. The remaining amount of the preferred share redemption is $7.46 million. As previously announced, the Company anticipates redeeming all of its preferred shares issued and outstanding over the next three years. In addition, the Company has approximately $8 million remaining on the $21 million total common share buyback authorization.

 

In September 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.015 per share ($0.06 per year). In November 2023, the Board of Directors approved a 10% increase in the quarterly cash dividend, to 6.6 cents per share annually, or 1.65 cents per share quarterly, commencing with the December 2023 dividend.

 

Balance Sheet:

 

The Company had $24.5 million in cash and cash equivalents at March 31, 2024, compared to $24.0 million at June 30, 2023. The Company had nothing drawn on its working line of credit as of March 31, 2024 or June 30, 2023.

 

Conference Call:

 

The Company will host a conference call at 4:15 p.m. Eastern today to discuss the Company’s results. The conference call will also be webcast and will be available via the investor relations section of the Company’s website, www.parkcitygroup.com.

 

Participant Dial-In Numbers:
Date: Wednesday, May 15, 2024

Time: 4:15 p.m. ET (1:15 p.m. PT)

Toll-Free: 1-877-300-8521

Toll/International 1-412-317-6026

Conference ID: 10188893

 

Replay Dial-In Numbers:

Toll Free: 1-844-512-2921

Toll/International: 1-412-317-6671

Replay Start: Wednesday, May 15, 2024, 7:15 p.m. ET

Replay Expiry: Saturday, June 15, 2024, at 11:59 PM ET

Replay Pin Number: 10188893

 

 

About ReposiTrak

 

ReposiTrak (NYSE:TRAK), formerly Park City Group, provides retailers, suppliers and wholesalers with a robust solution suite to help reduce risk and remain in compliance with regulatory requirements, enhance operational controls and increase sales with unrivaled brand protection. Consisting of three product families – food traceability, compliance and risk management and supply chain solutions – ReposiTrak’s integrated, cloud-based applications are supported by an unparalleled team of experts. For more information, visit https://repositrak.com

 

 

 

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 d/b/a ReposiTrak, or ReposiTrak (“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 Group 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.

 

Investor Relations Contact:

 

John Merrill, CFO

Investor-relations@repositrak.com

 

 

Or

 

FNK IR

Rob Fink

646.809.4048

rob@fnkir.com

 

 

 

 

REPOSITRAK, INC.

Consolidated Condensed Balance Sheets (Unaudited)

 

   

March 31,

2024

   

June 30,

2023

 

Assets

               

Current Assets

               

Cash and cash equivalents

  $ 24,452,680     $ 23,990,879  

Receivables, net of allowance for doubtful accounts of $226,198 and $170,103 at March 31, 2024 and June 30, 2023, respectively

    3,776,472       2,523,019  

Contract asset – unbilled current portion

    147,520       186,959  

Prepaid expense and other current assets

    451,041       573,763  

Total Current Assets

    28,827,713       27,274,620  
                 

Property and Equipment, net

    591,724       986,300  
                 

Other Assets:

               

Deposits and other assets

    22,414       22,414  

Prepaid expense – less current portion

    6,677       36,282  

Contract asset – unbilled long-term portion

    108,052       108,052  

Operating lease – right-of-use asset

    265,726       310,796  

Customer relationships

    164,250       262,800  

Goodwill

    20,883,886       20,883,886  

Capitalized software costs, net

    463,036       698,281  

Total Other Assets

    21,914,041       22,322,511  
                 

Total Assets

  $ 51,333,478     $ 50,583,431  
                 

Liabilities and Shareholders Equity

               

Current Liabilities

               

Accounts payable

  $ 510,412     $ 431,387  

Accrued liabilities

    1,390,232       1,620,000  

Contract liability – deferred revenue

    2,466,262       1,903,001  

Operating lease liability – current

    62,725       58,771  

Notes payable and financing leases – current

    215,274       219,262  

Total Current Liabilities

    4,644,905       4,232,421  
                 

Long-Term Liabilities

               

Operating lease liability – less current portion

    215,676       263,047  

Notes payable and financing leases – less current portion

    -       206,032  

Total Liabilities

    4,860,581       4,701,500  
                 

Commitments and Contingencies

               
                 

Stockholders Equity:

               

Preferred Stock; $0.01 par value, 30,000,000 shares authorized;

               

Series B Preferred, 700,000 shares authorized; 625,375 shares issued and outstanding at March 31, 2024 and June 30, 2023;

    6,254       6,254  

Series B-1 Preferred, 550,000 shares authorized; 72,216 and 212,402 shares issued and outstanding at March 31, 2024 and June 30, 2023, respectively

    722       2,124  

Common Stock, $0.01 par value, 50,000,000 shares authorized; 18,221,527 and 18,309,051 issued and outstanding at March 31, 2024 and June 30, 2023, respectively

    182,218       183,093  

Additional paid-in capital

    65,277,419       67,732,887  

Accumulated other comprehensive loss

    (31,006 )     -  

Accumulated deficit

    (18,962,710 )     (22,042,427 )

Total Stockholders Equity

    46,472,897       45,881,931  

Total Liabilities and Stockholders Equity

  $ 51,333,478     $ 50,583,431  

 

 

 

 

REPOSITRAK, INC.

Consolidated Condensed Statements of Operations and Comprehensive Income (Unaudited)

 

   

Three Months Ended

March 31,

   

Nine Months Ended

March 31,

 
   

2024

   

2023

   

2024

   

2023

 
                                 

Revenue

  $ 5,084,866     $ 4,824,101     $ 15,270,729     $ 14,295,091  
                                 

Operating expense:

                               

Cost of services and product support

    831,912       840,272       2,571,533       2,539,618  

Sales and marketing

    1,349,838       1,239,946       4,119,716       3,667,017  

General and administrative

    1,352,197       916,237       3,978,798       3,392,056  

Depreciation and amortization

    288,576       305,864       897,479       771,030  

Total operating expense

    3,822,523       3,302,319       11,567,526       10,369,721  
                                 

Income from operations

    1,262,343       1,521,782       3,703,203       3,925,370  
                                 

Other income (expense):

                               

Interest income

    350,691       275,941       925,297       554,299  

Interest expense

    (8,036 )     (9,771 )     (21,956 )     (52,481 )

Unrealized gain (loss) on short term investments

    5,429       35,068       48,071       (3,753 )

Other gain

    -       -       -       70,047  

Income before income taxes

    1,610,427       1,823,020       4,654,615       4,493,482  
                                 

(Provision) for income taxes:

    (60,000 )     (160,000 )     (274,491 )     (280,006 )

Net income

    1,550,427       1,663,020       4,380,124       4,213,476  
                                 

Dividends on preferred stock

    (134,345 )     (146,611 )     (427,567 )     (439,833 )
                                 

Net income applicable to common shareholders

  $ 1,416,082     $ 1,516,409     $ 3,952,557     $ 3,773,643  
                                 

Weighted average shares, basic

    18,194,000       18,394,000       18,194,000       18,408,000  

Weighted average shares, diluted

    18,954,000       18,751,000       18,874,000       18,702,000  

Basic income per share

  $ 0.08     $ 0.08     $ 0.22     $ 0.20  

Diluted income per share

  $ 0.08     $ 0.08     $ 0.21     $ 0.20  

 

 

 

 

REPOSITRAK, INC.

Consolidated Condensed Statements of Cash Flows (Unaudited)

 

   

Nine months

Ended March 31,

 
   

2024

   

2023

 

Cash flows from operating activities:

               

Net income

  $ 4,380,124     $ 4,213,476  

Adjustments to reconcile net income to net cash provided by operating activities:

               

Depreciation and amortization

    897,479       771,030  

Amortization of operating right-of-use asset

    45,070       43,019  

Stock compensation expense

    260,853       315,216  

Bad debt expense

    225,000       1,200,000  

(Increase) decrease in:

               

Accounts receivables

    (1,439,014 )     86,972  

Long-term receivables, prepaids and other assets

    751       655,391  

Increase (decrease) in:

               

Accounts payable

    79,025       (309,812 )

Operating lease liability

    (43,417 )     (39,777 )
                 

Accrued liabilities

    (58,391 )     122,744  

Deferred revenue

    563,261       7,631  

Net cash provided by operating activities

    4,910,741       7,065,890  
                 

Cash flows from investing activities:

               

Purchase of property and equipment

    (17,532 )     (133,944 )

Capitalization of software costs

    -       (769,243 )

Purchase of marketable securities

    (31,006 )     -  

Net cash (used in) investing activities

    (48,538 )     (903,187 )
                 

Cash flows from financing activities:

               

Net (decrease) in lines of credit

    -       (2,590,907 )

Common Stock buyback/retirement

    (1,515,574 )     (981,194 )

Redemption of series B-1 preferred

    (1,499,990 )     -  

Proceeds from employee stock plan

    111,839       92,728  

Dividends paid

    (1,286,657 )     (993,037 )

Payments on notes payable and capital leases

    (210,020 )     (209,748 )

Net cash used in financing activities

    (4,400,402 )     (4,682,158 )
                 

Net increase (decrease) in cash and cash equivalents

    461,801       1,480,545  
                 

Cash and cash equivalents at beginning of period

    23,990,879       21,460,948  

Cash and cash equivalents at end of period

  $ 24,452,680     $ 22,941,493  
                 

Supplemental disclosure of cash flow information:

               

Cash paid for income taxes

  $ 317,944     $ 264,486  

Cash paid for interest

  $ 11,711     $ 52,481  

Cash paid for operating leases

  $ 54,606     $ 53,015  
                 

Supplemental disclosure of non-cash investing and financing activities:

               

Common stock to pay accrued liabilities

  $ 445,980     $ 256,977  

Dividends accrued on preferred stock

  $ 427,567     $ 439,833