Archive for 2010

Park City Group Reports Fiscal Year 2010 Results

Recurring Revenue Model Drives Sales, EBITDA and Positive Net Income to Record Levels

PARK CITY, Utah–(BUSINESS WIRE)– Park City Group, Inc. (OTCBB: PCYG), a Software-as-a-Service provider of unique supply chain solutions for retailers and their suppliers, today announced its financial results for the fiscal year 2010 ended June 30, 2010.

Highlights:

  • Revenue of $10.9 million in FY10, up by 82% from prior year
  • Seventh consecutive quarter of positive non-GAAP EBITDA
  • Non-GAAP EBITDA of $2.6 million in FY10 increased by over 600% from FY09 on a pro forma basis
  • Non-GAAP net income before dividends of $1.4 million for FY10 as compared to net loss of $(1.8 million) for FY09
  • Non-GAAP earnings per share of $0.10 for FY10, up from loss of $(0.26) for FY09
  • Positive operating cash flow in FY10 of $947,000 compares with negative operating cash flow of ($821,000) in FY09

Commenting on the financial results, Randall K. Fields, Park City Group’s Chairman and CEO, said, “We are excited to report our results for fiscal 2010 which has been a breakthrough year for Park City Group. While delivering on our goals and achieving record levels for revenue and non-GAAP EBITDA, net income and earnings per share, we also produced substantial positive operating cash flow at nearly 9% of revenues while only beginning to utilize the scalability of our platform. In addition, we have significantly improved the Company’s financial condition by reducing our debt by 50% and doubling our cash balance at the end of the fiscal year.”

“Our achievements reflect the proven ability to grow through successful implementation of internal growth initiatives, integrate acquisitions, and initial scaling of our business to begin maximizing profits and cash flow. With the 2009 transition to a SaaS model which benefits from recurring subscription revenues and with the successful integration of Prescient, our total subscription revenue increased 110% year-over-year, while our retail hubs increased from 12 at the beginning of the fiscal year to 19 on June 30, 2010. Through the first few months of the new fiscal year, we have made further progress in the expansion of our platform to include the first engagement for a “mega” hub contract that has nearly three times the recurring revenue opportunity as a traditional retail hub. Given the strength of our recurring and growing revenue base, fiscal 2010 represents only the beginning for Park City Group, as we have entered into a multi-year period of growth in top line and, now, profits.”

Fiscal Year 2010 Results

Park City Group reported total revenue of $10.9 million for the fiscal year 2010 ended June 30, 2010, an increase of 82% as compared with $6.0 million for the prior fiscal year. The increase in total revenues was principally the result of organic growth through the addition of new retail hubs and suppliers and the inclusion of about 6 months of revenues from the Prescient Applied Intelligence, Inc. (“Prescient”) acquisition that occurred in January of 2009.

For the fiscal year 2010 when compared with the 2009 period, subscription revenue increased by 110% to $6.0 million, maintenance revenue increased by 30% to $2.5 million, professional services revenues grew by 33% to $1.2 million, and license fees increased by over 340% to $1.1 million. The Company’s core revenues are derived largely from recurring sources and reflect the Company’s transition to a Software-as-a-Service (“SaaS”) platform beginning in 2008 and the completion of its acquisition of Prescient in January 2009. The combined Company’s subscription, maintenance, and certain professional services contracts provides for recurring revenue of over 80% of total annual revenue. This differs significantly from the Company’s historical license-based model approach, although the Company will, from time to time, sell its solutions on a license basis.

Conference Call

The Company will host a conference call today at 4:30 P.M. Eastern to discuss the Company’s fiscal year 2010 financial results. Shareholders and other interested parties may participate in the conference call by dialing (877) 278-9471 or (International) (763) 488-3310 and entering Conference ID #99717924.

A replay of the conference call will be accessible until September 22, 2010 by dialing (800) 642-1687 or (International) (706) 645-9291 and entering Conference ID #99717924.

About Park City Group

Park City Group (OTCBB: 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. Our service increases our customers’ sales and profitability while enabling lower inventory levels for both retailers and their suppliers.

Through a process known as Consumer Driven Sales OptimizationTM, 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 provide store level visibility and set the supply chain in motion. And since it is scan based, it can be used in a Direct Store Delivery (DSD) or warehouse setting.

Park City Group is the only company to provide robust, collaborative supply chain, merchandising and store level solutions for both retailers and suppliers. Its solutions and services enable retailers and suppliers to work collaboratively as strategic partners to reduce out-of-stocks, shrink, inventory and labor while improving profits, efficiencies, and customer service. These innovative solutions provide trading partners a common platform on which they can capture, manage, analyze and share critical data, bringing greater visibility throughout the supply chain, and giving them the power to make better and more informed decisions.

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 net income (loss), non-GAAP net income (loss) to common shareholders 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 are included in the following tables.

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 non-cash charges. Non-GAAP net income (loss) and non-GAAP net income (loss) to common shareholders excludes items such as non-cash stock based compensation, charges to consolidate and integrate recently acquired businesses, costs for closing corporate facilities and amortization of acquired intangible assets. 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, that 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. Non-GAAP pro-forma financial measures exclude certain items and consider non-GAAP results as if Park City Group, Inc. and Prescient were combined as of July 1, 2008.

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. Schedules Fiscal Year 2010 Financial Results Conference Call for September 15, 2010 at 4:30 P.M. Eastern

CEO to Present at Rodman & Renshaw Investment Conference in New York on September 13

PARK CITY, Utah. – September 8, 2010 – Park City Group (OTCBB: PCYG), a Software-as-a-Service provider of unique supply chain solutions for retailers and their suppliers, today announced that Randy K. Fields, Chairman and CEO, will host a conference call on Wednesday, September 15, 2010 at 4:30 P.M. Eastern to discuss the Company’s fiscal year 2010 financial results. The earnings results press release will be issued after the stock markets close on September 15.

Shareholders and other interested parties may participate in the conference call by dialing (877) 278-9471 or (International) (763) 488-3310 and entering Conference ID #99717924.

A replay of the conference call will be accessible until September 22, 2010 by dialing (800) 642-1687 or (International) (706) 645-9291 and entering Conference ID #99717924.

Park City Group also announced today that Randy Fields will be presenting at the Rodman & Renshaw Annual Global Investment Conference on Monday, September 13, 2010, at 12:05 p.m. Eastern at the New York Palace Hotel in New York, NY.
At the Rodman & Renshaw Annual Global Investment Conference, more than 550 public and private companies from around the world are expected to present to an audience of over 3,500 attendees. The Conference will include corporate presentations and Q & A sessions, investor one-on-one meetings and daily networking opportunities. Institutional investors, venture capitalists, private equity firms, business development executives and sophisticated private investors can register online at the Rodman & Renshaw conference website at www.rodm.com/conferences

About Park City Group
Park City Group (OTCBB: 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. Our service increases our customers’ sales and profitability while enabling lower inventory levels for both retailers and their suppliers.

Through a process known as Consumer Driven Sales OptimizationTM, 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 provide store level visibility and set the supply chain in motion. And since it is scan based, it can be used in a Direct Store Delivery (DSD) or warehouse setting.

Park City Group is the only company to provide robust, collaborative supply chain, merchandising and store level solutions for both retailers and suppliers. Its solutions and services enable retailers and suppliers to work collaboratively as strategic partners to reduce out-of-stocks, shrink, inventory and labor while improving profits, efficiencies, and customer service. These innovative solutions provide trading partners a common platform on which they can capture, manage, analyze and share critical data, bringing greater visibility throughout the supply chain, and giving them the power to make better and more informed decisions.

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 and its other periodic 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 Adds First “Mega Hub” Customer for Supply Chain Expertise

Enables PCYG to Substantially Broaden its Ability to Assist Retailers and More Suppliers to Achieve Improved Sales and Margins


PARK CITY, UT – August 17, 2010 –
Park City Group (OTCBB: PCYG), a Software-as-a-Service provider of unique supply chain solutions for retailers and their suppliers, today announced that it has been selected by one of the nation’s largest supermarket chains for its Consumer Driven Sales OptimizationTM (“CDSO”) platform. This selection is the first “Mega Hub” installation for Park City Group, which effectively extends the supply chain reach for retail stores beyond primary categories to include products for all major categories.

“Following our selection by a major supermarket chain for our supply chain solution, we are pleased to have extended our partnership for using our technology on a Mega Hub basis,” said Randall K. Fields, Chairman & CEO of Park City Group. “This dual installation represents our first foray in extending beyond the basic supermarket product categories delivered directly to retail stores and enables us to bring even more visibility and data flow control to both the retailer and its numerous consumer goods suppliers.”

The supermarket chain is partnering with Park City Group to implement a demand driven supply chain with its vendor community by leveraging the scan/point-of-sale as the central point to deliver improved forecast accuracy and responsive replenishments based on consumer pull. This effort will be supported by a business process called Consumer Driven Sales Optimization and will foundationally begin with a collaborative effort between the retailer and its suppliers in terms of data synchronization and scan based trading as the facility to provide the necessary visibility, demand signals, and analytics to drive improved performance at the shelf for virtually all products being delivered from thousands of consumer goods companies supplying the supermarket chain.

About Park City Group
Park City Group (OTCBB: 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. Our service increases our customers’ sales and profitability while enabling lower inventory levels for both retailers and their suppliers.

Through a process known as Consumer Driven Sales OptimizationTM, 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 provide store level visibility and set the supply chain in motion. And since it is scan based, it can be used in a Direct Store Delivery (DSD) or warehouse setting.

Park City Group is the only company to provide robust, collaborative supply chain, merchandising and store level solutions for both retailers and suppliers. Its solutions and services enable retailers and suppliers to work collaboratively as strategic partners to reduce out-of-stocks, shrink, inventory and labor while improving profits, efficiencies, and customer service. These innovative solutions provide trading partners a common platform on which they can capture, manage, analyze and share critical data, bringing greater visibility throughout the supply chain, and giving them the power to make better and more informed decisions.

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 for the year ended June 30, 2009, its quarterly report on Form 10-Q for the quarter ended September 30, 2009, 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 Selected by Top 50 Supermarket Chain Food City

PARK CITY, UT – August 9, 2010 – Park City Group (OTCBB: PCYG), a developer of patented retail supply chain solutions and services, today announced that it has been selected by Food City, ranked among the nation’s 50-largest supermarket chains, for its Consumer Driven Sales OptimizationTM (“CDSO”) platform to capture, manage, analyze and share critical data with its partners in an effort to improve out-of-stocks and reduce cost across the retailer’s supply chain. As part of this selection, Park City Group will deploy its technology for coverage and connectivity of 105 retail stores.

“We are excited to have been selected by Food City, one of the nation’s premier supermarket chains, for our unique and multi-faceted retail supply chain optimization solution,” said Randall K. Fields, Chairman & CEO of Park City Group. “This installation represents Park City Group’s 17th retail hub, and the largest deployment for a single customer to date when we consider the ability of the platform to enable collaboration with both direct-store-delivery and select warehouse suppliers. With our ability to support Food City and its supplier community with solutions from Scan Based Trading to forecasting and replenishment, we truly believe this is the dawning of a new age for the alignment of interest between retailer and supplier beginning with point-of-sale data as the focal point to drive sales and cost improvements.”

In support of all Food City locations in Kentucky, Tennessee and Virginia, Park City Group will deploy its unique collaborative based trading platform. This platform provides the ability to connect Food City and its suppliers from the retail shelf on back into their respective supply chains to enhance decisions that range from improving inventory mix and in-stock positions at the shelf to more timely and responsive replenishment processes. By providing such visibility starting with consumer takeaway at the shelf, Food City looks to enhance the consumer shopping experience while reducing cost associated with working capital for both them and their supplier partners among other benefits.

“We are excited about this opportunity to partner with Park City Group to help us more effectively engage our supplier community and leverage data in the manner that best serves our shoppers. We expect, over time, this model to be the standard to govern how commerce will be conducted between the retail and supplier community to the mutual benefit of both parties and we are proud to be a leader with such a comprehensive business process.” said Steven C. Smith, Food City President/CEO.

About K-VA-T Food Stores, Inc. (Food City’s parent company):
Headquartered in Abingdon, Virginia, K-VA-T Food Stores operates 105 retail food outlets throughout the tri-state regions of Southeast Kentucky, Southwest Virginia and Northeast Tennessee. K-VA-T is ranked 39th on the latest (2009) Progressive Grocer’s list of America’s 50 Largest Supermarket Chains, 55th on Supermarket News Top 75 Retailers (2010) with nearly 1.8 billion dollars in sales, and 291st on Forbes Magazine’s America’s Largest Private Companies (2009).

About Park City Group
Park City Group (OTCBB: 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. Our service increases our customers’ sales and profitability while enabling lower inventory levels for both retailers and their suppliers.

Through a process known as Consumer Driven Sales OptimizationTM, 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 provide store level visibility and set the supply chain in motion. And since it is scan based, it can be used in a Direct Store Delivery (DSD) or warehouse setting.

Park City Group is the only company to provide robust, collaborative supply chain, merchandising and store level solutions for both retailers and suppliers. Its solutions and services enable retailers and suppliers to work collaboratively as strategic partners to reduce out-of-stocks, shrink, inventory and labor while improving profits, efficiencies, and customer service. These innovative solutions provide trading partners a common platform on which they can capture, manage, analyze and share critical data, bringing greater visibility throughout the supply chain, and giving them the power to make better and more informed decisions.

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 for the year ended June 30, 2009, its quarterly report on Form 10-Q for the quarter ended September 30, 2009, 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 Files Application for NASDAQ Capital Market Listing

PARK CITY, UT – July 22, 2010 – Park City Group, Inc. (OTCBB: PCYG), a Software-as-a-Service provider of unique supply chain solutions for retailers and their suppliers, today announced that the Company has filed an application to list its common stock on the NASDAQ Capital Market.

“We believe that elevating the listing of our common stock to the NASDAQ Capital Market will be an important step forward in our mission of enhancing shareholder value and complements the record operational progress we are making. As the Park City Group investment story improves, the NASDAQ listing should enable us to increase the trading liquidity of our stock, broaden our shareholder base, and raise our profile in the investment community,” said Randall K. Fields, Park City Group’s Chairman and CEO.

On July 20, 2010, Park City Group announced that it expects to report significant increases in revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) for fiscal year 2010. Full year revenue is expected to be approximately $10.9 million, an increase of approximately 82% as compared with approximately $6.0 million in fiscal 2009. Full year adjusted EBITDA, projected to exceed the Company’s previously announced goal by nearly 13%, is expected to be approximately $2.6 million, an increase of over 600% as compared with $357,000 pro-forma adjusted (for the Prescient acquisition) EBITDA for fiscal 2009.

The NASDAQ listing application is subject to review and approval by NASDAQ’s Listing Qualifications Department to ensure compliance with all NASDAQ Capital Market Standards. Park City Group anticipates the NASDAQ review process to last approximately two months or longer before completion. While the Company intends to satisfy all of NASDAQ’s requirements for initial listing, no assurance can be given that its application will be approved. The Company’s common stock will continue to trade on the OTC Bulletin Board under its current symbol, PCYG, during the NASDAQ review process.

About Park City Group
Park City Group (OTCBB: 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. Our service increases our customers’ sales and profitability while enabling lower inventory levels for both retailers and their suppliers.

Through a process known as Consumer Driven Sales OptimizationTM, 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 provide store level visibility and set the supply chain in motion. And since it is scan based, it can be used in a Direct Store Delivery (DSD) or warehouse setting.

Park City Group is the only company to provide robust, collaborative supply chain, merchandising and store level solutions for both retailers and suppliers. Its solutions and services enable retailers and suppliers to work collaboratively as strategic partners to reduce out-of-stocks, shrink, inventory and labor while improving profits, efficiencies, and customer service. These innovative solutions provide trading partners a common platform on which they can capture, manage, analyze and share critical data, bringing greater visibility throughout the supply chain, and giving them the power to make better and more informed decisions.

Forward-Looking Statement and Financial Performance Disclosures
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 for the year ended June 30, 2009 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.

The projected and unaudited financial results discussed in this press release are preliminary only and are subject to change as a result of the completion of the Company’s annual audit. GAAP results are anticipated to be different than projected EBITDA results and those differences are anticipated to be material.

EBITDA is calculated as net income before deducting interest, taxes, depreciation and amortization. Adjusted EBITDA also excludes items such as impairment charges, charges to consolidate and integrate recently acquired businesses, costs of closing corporate facilities, non-cash stock based compensation and other non-cash charges. Although EBITDA and adjusted EBITDA are not measures of actual cash flow because they do not consider changes in assets and liabilities that may impact cash balances, the Company’s management reviews these non-GAAP financial measures internally to evaluate the Company’s performance and manage the operations. Additionally, the Company believes they are useful metrics to evaluate operating performance and has therefore included such measures in the reporting of operating results. For a reconciliation of non-GAAP EBITDA full year financial results for 2009 to GAAP, please visit the Investor Relations page.

Park City Group Expects to Report Significant Increases in Revenue and EBITDA for Fiscal Year 2010

Company Exceeds 2010 EBITDA Goal

PARK CITY, UT – July 20, 2010 – Park City Group, Inc. (OTCBB: PCYG), a Software-as-a-Service provider of unique supply chain solutions for retailers and their suppliers, today announced its preliminary results for the fiscal year ended June 30, 2010. Park City Group expects to report:

  • Full year revenue of approximately $10.9 million, an increase of approximately 82% as compared with approximately $6.0 million in fiscal 2009
  • Full year adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) are projected to be approximately $2.6 million, an increase of over 600% as compared with $357,000 pro-forma adjusted (for the Prescient acquisition) EBITDA for fiscal 2009

“We are pleased to report that we met our expectation of significantly increasing our EBITDA on a year over year basis. Momentum in our operating performance during the fourth quarter is anticipated to allow us to exceed our full year goal for EBITDA by nearly 13%. Furthermore, our improvement in revenue is similarly impressive. These achievements reflect our proven ability to grow through successful implementation of internal growth initiatives, integrate acquisitions, and scale our business to maximize profits and cash flow,” said Randall K. Fields, Park City Group’s Chairman and CEO.

Park City Group will announce at a later date the details for its fiscal 2010 fourth quarter and full year financial results conference call, which is expected to be held at the end of September.

The projected and unaudited financial results discussed in this press release are preliminary only and are subject to change as a result of the completion of the Company’s annual audit. GAAP results are anticipated to be different than projected EBITDA results and those differences are anticipated to be material.

EBITDA is calculated as net income before deducting interest, taxes, depreciation and amortization. Adjusted EBITDA also excludes items such as impairment charges, charges to consolidate and integrate recently acquired businesses, costs of closing corporate facilities, non-cash stock based compensation and other non-cash charges. Although EBITDA and adjusted EBITDA are not measures of actual cash flow because they do not consider changes in assets and liabilities that may impact cash balances, the Company’s management reviews these non-GAAP financial measures internally to evaluate the Company’s performance and manage the operations. Additionally, the Company believes they are useful metrics to evaluate operating performance and has therefore included such measures in the reporting of operating results. For a reconciliation of non-GAAP EBITDA full year financial results for 2009 to GAAP, please visit the Investor Relations page.

About Park City Group
Park City Group (OTCBB: 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. Our service increases our customers’ sales and profitability while enabling lower inventory levels for both retailers and their suppliers.

Through a process known as Consumer Driven Sales OptimizationTM, 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 provide store level visibility and set the supply chain in motion. And since it is scan based, it can be used in a Direct Store Delivery (DSD) or warehouse setting.

Park City Group is the only company to provide robust, collaborative supply chain, merchandising and store level solutions for both retailers and suppliers. Its solutions and services enable retailers and suppliers to work collaboratively as strategic partners to reduce out-of-stocks, shrink, inventory and labor while improving profits, efficiencies, and customer service. These innovative solutions provide trading partners a common platform on which they can capture, manage, analyze and share critical data, bringing greater visibility throughout the supply chain, and giving them the power to make better and more informed decisions.

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 for the year ended June 30, 2009 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 Selected by IPDA to Optimize Retail Sales and Supply Chain Management of Books and Magazines Nationwide

Software-as-a-Service From Park City Group to Handle IPDA’s Leading Publishers

PARK CITY, UT – July 16, 2010 – Park City Group, Inc. (OTCBB: PCYG), a developer of patented retail supply chain solutions and services, today announced that it has been selected by the International Periodical Distributors Association (IPDA) for enhanced technology solutions to optimize retails sales and supply chain management for its organization members. The IPDA, a trade association representing National Distributors and publishers of magazines and books, will utilize Park City Group technology to gather Point of Sale data with the ultimate goal of improving the sale of magazines to consumers at the retail level Magazines represent over $4.5 billion annually in retail sales, according to the IPDA, ranking it in the top 30 among 400 categories tracked at the store level.

“The selection of Park City Group by IPDA, a magazine and book industry trade association, stands out as an acknowledgement of our best in breed solutions to aggregate and drive sales and control costs throughout the retail supply chain,” said Randall K. Fields, Park City Group’s Chairman and CEO. “We are commencing an initial phase of work with IPDA which should deliver to us substantial revenue now with significant upside in the future as our association progresses. Our collaboration with IPDA demonstrates that when suppliers of consumer goods need a competitive edge, the choice should be Park City Group for its unique and scalable scan sales data facility, visibility and analytics tools and related supply chain management technologies.”

“We are impressed with the expertise developed and provided by Park City Group,” said Jerry Lynch, President of IPDA. “Beyond traditional retail-level business issues, periodicals represent a very large and complex product category. The seasonality and variability of sales by title and retail channel creates a unique set of challenges for all parties involved in the industry. The development of a common repository of point-of-sale information by Park City Group will facilitate increased collaboration with the ultimate goal being improved sales and efficiency in the supply chain.

In pursuit of its mission of developing best practices to foster operational excellence for the magazine and book categories at retail, IPDA will implement Park City Group’s solution to create a universal magazine data repository that can be used as an entry point to improving category visibility and efficiency. In doing so, IPDA will enhance its ability to leverage the most advanced technologies available today to act as a facilitator of actionable information for and between channel partners. IPDA will facilitate the collection and eventual analysis of point-of-sale data between retailers, wholesalers and national distributors, and ultimately deliver actionable intelligence to benefit all appropriate members of the supply chain.

About IPDA
The International Periodical Distributors Association, a trade association comprising national distributor members and publisher associate members, works with supply-chain partners to facilitate and enhance the retail sale of magazines and books to consumers. IPDA’s roles include fostering a collective voice for the magazine and book categories at retail, acting as an information source for channel partners on technology and other industry issues, assisting the industry in developing best practices, and working to optimize the retail presence of books and magazines in all U.S. communities.

About Park City Group
Park City Group (OTCBB: 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. Our service increases our customers’ sales and profitability while enabling lower inventory levels for both retailers and their suppliers. For more information, go to www.parkcitygroup.com.

Park City Group Strengthens Leadership with Additions to Management Team

PARK CITY, UT – July 6, 2010 – Park City Group, Inc. (OTCBB: PCYG), a developer of patented retail supply chain solutions and services, today announced that it has significantly strengthened its leadership with additions to its management team. The enhancements to Park City Group’s management team include the appointment of David Colbert to the position of Vice President and Chief Financial Officer, and the addition of Steve K. Davis in a leading sales and marketing capacity to expand Company base of retail supplier customers. Mr. Colbert replaces John Merrill, who left the Company at the end of June 2010.

These management changes further enhance the Company’s leadership following the recently announced appointment of C. Manly Molpus to serve on Park City Group’s Board of Directors. Mr. Molpus has an impressive background representing suppliers and consumer products companies to the retailing industry.

“As we close the books on our fiscal year 2010 which will reflect impressive growth and significant accomplishments, we are setting our sights on much higher ground. We are attracting higher caliber professionals and industry veterans who we believe will contribute to Park City Group achieving its future goals,” said Randall K. Fields, Park City Group’s Chairman and CEO. “The strengthening of our Board of Directors and management team is an integral step forward as we develop a more focused approach to supplier relationships supported by our growing retailer base developed over the past year. This progression of our business model will benefit all of our customers, while delivering incremental revenues and profits to Park City Group.”

David Colbert has nearly two decades experience in both the public and private sectors of corporate finance. Prior to joining Park City Group, he was most recently Co-founder, Chief Financial Officer and VP of Operations for Sendside Networks, Inc., a privately held software-as-a-service company. Earlier in his career, Mr. Colbert spent 14 years with Kimberly-Clark Corporation, a Standard & Poor’s 500 company, where he held various positions of increasing responsibility in finance, accounting and strategic planning. In his final Kimberly-Clark role, Mr. Colbert was responsible for all accounting, reporting and strategic analysis for a $200-plus million wholly-owned subsidiary. Mr. Colbert holds a Bachelors degree in Finance and Marketing from the University of Iowa and an MBA from Emory University.

Steve K. Davis has over 20 years of progressive experience in consumer packaged goods sales and sales management. During this time, Mr. Davis worked with leading consumer products companies, including tenures with units of Kellogg Company, Pepsi-Cola Company, and Cadbury Schweppes. He has extensive experience with national and regional retailers and wholesalers, serviced through direct sales and direct store delivery distribution systems.

At Park City Group, Mr. Davis will be responsible for the execution of account management strategies and expansion of the retail and supply chain client base with an emphasis on availing customers of solutions to increase product distribution and sales. In doing so, Mr. Davis will leverage the expertise developed while working for recognized consumer goods companies in identifying and recruiting “best in class” distributors, wholesalers and retailers, creating annual customer/distributor plans, and executing retail merchandising strategies and new product launches while driving product and brand awareness. Throughout the course of his career, Mr. Davis worked closely with numerous DSD specialists and leading supermarket retailers, including Albertson’s, HEB, Raleys and Safeway.

About Park City Group
Park City Group (OTCBB: 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. Our service increases our customers’ sales and profitability while enabling lower inventory levels for both retailers and their suppliers. For more information, go to www.parkcitygroup.com.

Park City Group Appoints CPG Industry Leader to Board of Directors

PARK CITY, UT – July 1, 2010 – Park City Group, Inc. (OTCBB: PCYG), a developer of patented retail supply chain solutions and services, today announced that it has appointed C. Manly Molpus to serve on the Company’s Board of Directors. Mr. Molpus currently is a consultant to the consumer packaged goods (“CPG”) industry. For more than 16 years, he was president and chief executive officer of the Grocery Manufacturers Association (“GMA”), which represents the world’s leading branded food, beverage and consumer products companies. With Mr. Molpus’s appointment, Park City Group has expanded its Board of Directors to eight members, seven of which are independent.

“We are very excited to have attracted someone of the caliber of Manly Molpus to our Board of Directors,” said Randall K. Fields, Park City Group’s Chairman and CEO. “Manly possesses extraordinary experience in the consumer packaged goods and retailing industries. He has been instrumental in industry affairs promoting retailer/supplier collaboration throughout the industry. Manly’s background and broad range of industry relationships are well suited to our endeavors in expanding our supplier base, which is integral to the next phase of Park City Group’s growth strategy.”

C. Manly Molpus is the president of The Molpus Advisory Group, where he provides strategic counsel on industry and public affairs to the CPG industry. From 1990 to 2006, he served as president and chief executive officer of GMA. The association is the leading advocate for its members on international and domestic public policy issues and industry wide productivity enhancement in collaboration with the supermarket industry. The GMA represents the world’s leading food, beverage and consumer products companies. The association promotes sound public policy, champions initiatives that increase productivity and growth and helps ensure the safety and security of consumer packaged goods through scientific excellence. The $2.1 trillion food, beverage and consumer packaged goods industry employs 14 million workers, and contributes over $1 trillion in added value to the nation’s economy. In 2008, Mr. Molpus returned to GMA as Interim CEO for a four month period.

Prior to joining GMA, Mr. Molpus was president and chief executive officer of the American Meat Institute. He also served as vice president of Corporate Affairs for The Kroger Company, the nation’s largest supermarket chain, where he directed the company’s government and public affairs activities. Mr. Molpus received the Food Marketing Institute’s 2007 William H. Albers Award for Industry Relations. In 2006, Mr. Molpus received both the GMA Hall of Achievement Award and the American Meat Institute’s Richard E. Lyng Award for Public Service. Other honors include being selected by Supermarket News to the “Power 50 List” among CPG leaders in the food, beverage, wholesale and retail industries. Mr. Molpus is also a former appointee to the U.S. Department of State’s Advisory Committee on International Economic Policy, and he served on the USDA/USTR Agricultural Policy Advisory Committee for Trade.

Mr. Molpus currently serves on the board of SPAR Group (Nasdaq: SGRP), a leading provider of in store merchandising services; the Advisory Board to Levick Strategic Communications; and the CPG Advisory Board of ICG Commerce, a leader in non-core procurement outsourcing.

About Park City Group
Park City Group (OTCBB: 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. Our service increases our customers’ sales and profitability while enabling lower inventory levels for both retailers and their suppliers. For more information, go to www.parkcitygroup.com.

Park City Group Reports Fiscal Third Quarter Results

Recurring Revenue Model Drives Year-To-Date Sales, EBITDA* and Positive Net Income

PARK CITY, UT – May 10, 2010 – Park City Group, Inc. (OTCBB: PCYG), a developer of patented retail supply chain solutions and services, today announced its financial results for the fiscal third quarter and nine months ended March 31, 2010.

Highlights:

  • Revenue of $3.0 million in F3Q10, up by 20% from prior year period
  • Sixth consecutive quarter of positive adjusted EBITDA*
  • Adjusted EBITDA of $734,000 in F3Q10 increased by over 250% from adjusted pro-forma EBITDA in F3Q09
  • F3Q10 net income before dividends of $123,209 as compared to a net loss of $(1,835,836) for the same period in F3Q09
  • Positive operating cash flow of $251,457 in the Nine Months Ended March 31, 2010, compared with negative operating cash flow of ($797,969) for same period in 2009
  • Reaffirms fiscal year goal for adjusted EBITDA
  • On track for increased positive cash flow from operations and positive earnings per share

Commenting on the financial results, Randall K. Fields, Park City Group’s Chairman and CEO, said, “We are pleased to report another strong performance in our third quarter of fiscal 2010. During the third quarter, we achieved this year’s highest level of quarterly revenues, operating income, and adjusted EBITDA. In the year-to-date period, we have achieved record levels for sales and EBITDA. Given the strength of our recurring and growing revenue base, our proven ability to effectively manage our expenses, and our leverageable business model, we are confident in our prospects for continued growth.”

Mr. Fields continued, “Our unique retail supply chain solution continues to gain market awareness. As a result, our business development pipeline remains robust, and we’re therefore confident that we will meet or exceed our fiscal 2010 goal of adjusted EBITDA of approximately $2.3 million, positive cash flow from operations and positive earnings per share for the full fiscal year.”

Fiscal 2010 Third Quarter Results
Park City Group reported total revenue of $3.0 million for the third quarter ended March 31, 2010, compared with $2.5 million for the quarter ended March 31, 2009. The increase in revenue is the result of a large non-recurring license sale that occurred in the quarter and organic growth from subscription revenues from an expanding base of retail hub customers resulting from the acquisition of Prescient Applied Intelligence, Inc. that occurred in January of 2009.

For the third quarter of fiscal 2010 when compared with the same period in 2009, subscription revenue increased by 11% to $1.5 million from $1.4 million, maintenance revenue decreased to $0.6 million from $0.7 million, professional services revenues grew by 17% to over $0.3 million from over $0.2 million, and license fees increased by over 200% to $0.5 million from $0.2 million. The Company’s core revenues are derived largely from recurring sources and reflects the Company’s transition to a Software-as-a-Service (“SaaS”) platform in 2008 and the completion of its acquisition with Prescient Applied Intelligence, Inc. (“Prescient”) in January 2009. The combined Company’s subscription, maintenance, and certain professional services contracts provides for recurring revenue of approximately 78% of total annual revenue. This differs significantly from the Company’s historical license-based model approach although the Company will, from time to time, sell its solutions on a license basis.

The Company reported income from operations of $291,778 in the third quarter of fiscal 2010, when compared with an operating loss of ($1,578,768) in the prior year period. The Company reported net income before dividends of $123,209 for the quarter ended March 31, 2010, when compared with a net loss before dividends of ($1,835,836) in the same period in 2009.

Adjusted EBITDA increased to $734,000 for the quarter ended March 31, 2010 from adjusted EBITDA of $213,000 in the same period in 2009. Adjusted EBITDA excludes certain non-cash items such as non-cash stock compensation, allowance for doubtful accounts, and acquisition related costs.

Net income applicable to common shareholders for the quarter ended March 31, 2010 was $41,755, or $0.00 per common share, compared with a net loss of ($2,035,944) in the prior year’s third quarter, or $(0.21) per common share.

Fiscal 2010 First Nine Months Results
Park City Group reported total revenue of $8.2 million for the first nine months of fiscal year 2010 ended March 31, 2010, when compared with $3.5 million for the same period of fiscal 2009. The increase in total revenue is the result of the acquisition of Prescient Applied Intelligence, Inc. that occurred in January of 2009 and continued organic expansion of the combined Company’s retail and supplier hub customers.

For the first nine months of fiscal 2010 compared to the same period in the prior year, subscription revenue increased by 200% to $4.5 million from $1.5 million, maintenance revenue increased by 51% to $1.9 million from $1.3 million, professional services revenues grew by nearly 100% to $1.0 million from $0.5 million, and license fees increased by approximately 240% to $0.75 million from $0.22 million.

The Company reported income from operations of $708,750 for the first nine months of fiscal 2010, when compared with an operating loss of ($3,360,281) in the prior year period. The Company reported net income before dividends on preferred stock of $223,585 for the first nine months of fiscal 2010, when compared with a net loss of ($3,859,978) in the same period of fiscal 2009.

Adjusted EBITDA increased to $2.023 million for the nine months ended March 31, 2010, from an adjusted EBITDA loss of ($1.13 million) in the same period of fiscal 2009. Adjusted pro forma EBITDA increased to approximately $2.023 million for the nine months ended March 31, 2010, when compared with pro-forma (for the Prescient acquisition) adjusted EBITDA of $0.024 million for the prior fiscal year period. Adjusted EBITDA excludes certain non-cash items such as non-cash stock compensation, allowance for doubtful accounts, and acquisition related costs.

The net loss applicable to common shareholders for the nine months ended March 31, 2010 was ($22,099), or ($0.00) loss per common share, compared with a net loss applicable to common shareholders of ($4,388,160) in the prior year’s nine month period, or $(0.46) loss per common share.

The Company anticipates filing its Quarterly Report on Form 10-Q for the quarter ended March 31, 2010. on Monday, May 10, 2010. Investors should refer to the Quarterly Report on Form 10-Q for a complete analysis and review of the financial condition and results from operations for the quarter ended March 31, 2010.

Conference Call
The Company will host a conference call today at 4:30 P.M. EST to discuss its third quarter fiscal year 2010 financial results. Shareholders and other interested parties may participate in the conference call by dialing (877) 278-9471 or (International) (763) 488-3310 and entering Conference ID #73237516.

A replay of the conference call will be accessible until May 17, 2010 by dialing (800) 642-1687 or (International) (706) 645-9291 and entering Conference ID #73237516.

*Non-GAAP Financial Measures
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is calculated as net income before deducting interest, taxes, depreciation and amortization. Adjusted EBITDA also 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 non-cash charges. Adjusted pro-forma EBITDA excludes certain items and considers non-GAAP results as if Park City Group, Inc. and Prescient were combined as of July 1, 2008. Although EBITDA, adjusted EBITDA, and adjusted pro-forma EBITDA are not measures of actual cash flow because they do not consider changes in assets and liabilities that may impact cash balances, the Company’s management reviews these non-GAAP financial measures internally to evaluate the Company’s performance and manage the operations. Additionally, the Company believes they are useful metrics to evaluate operating performance and has therefore included such measures in the reporting of operating results.

About Park City Group
Park City Group (OTCBB: 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. Our service increases our customers’ sales and profitability while enabling lower inventory levels for both retailers and their suppliers. For more information, go to www.parkcitygroup.com.

Earnings05102010A

Earnings05102010B


  • You are currently browsing the Park City Group archives for the year 2010.

Contact Sales

Have Sales Contact Me!

Your Name

Your Email

Your Phone

Question / Comment

Enter the text in the image
captcha