Archive for 2011

Park City Group Reports Preliminary Fourth Quarter Results

Connection Agreements with 5 of the 10 Largest Global Consumer Food Suppliers

PARK CITY, Utah – August 10, 2011 — Park City Group (NYSE Amex:PCYG), a Software-as-a-Service provider of unique supply chain solutions for retailers and their suppliers, today announced preliminary financial results for its fourth quarter ended June 30, 2011. The Company expects to report the following:

  • 4Q11 revenue of approximately $3.0 million, a 9% increase from prior year
  • 4Q11 adjusted EBITDA in excess of $700,000
  • Year-end cash balance of approximately $2.6 million, a 126% increase from prior year
  • 4Q11 record subscription revenue increased approximately 12% year over year
  • Record number of supplier connections for the 4Q11 and FY11…pace accelerated three fold
  • Contracted 65 supplier connections during 4Q11, 119 supplier connections for Fiscal 2011

“We achieved a record number of connections and more than three times faster than our pace from earlier in the year,” said Randall K. Fields, Park City Group’s Chairman and CEO. “The size and market importance of suppliers we signed exceeded our expectations. In fact, we signed connection agreements with 5 of the 10 largest consumer food suppliers in the world and now do business with 8 of the top 14 on the Fortune 500 list. Acceptance among these larger suppliers is noteworthy given their revenue potential is much greater than our targeted goals.”

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 adjusted EBITDA and the difference is anticipated to be material.

About Park City Group

Park City Group (NYSE Amex: PCYG) is a Software-as-a-Service (“SaaS”) provider that brings unique visibility to the consumer goods supply chain. With over $100 million invested in development and 16 years of commercialization surrounding its proprietary scan based data platform, the Company’s services increase customers’ sales and profitability, while ensuring regulatory compliance for both retailers and their suppliers.

Through a process known as Consumer Driven Sales OptimizationTM, Park City Group helps retail and consumer packaged goods customers turn transactional information into actionable strategies to lower inventory, increase sales and improve efficiencies in the supply chain.

The Company’s Food Safety Global RegistryTM provides food retailers and suppliers with a robust solution that will help them protect their brands and remain in compliance with rapidly evolving regulations in the recently-passed Food Safety Modernization Act. The Food Safety Global Registry, an internet-based technology, will enable all participants in the farm-to-table supply chain to easily manage tracking and traceability requirements as products move between trading partners.

Non-GAAP Financial Measures

This press release includes the following financial measures defined as “non-GAAP financial measures” by the Securities and Exchange Commission: adjusted EBITDA. This measure 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. Reconciliation of this non-GAAP financial measures to the nearest comparable GAAP measure will be provided upon the completion of the Company’s annual audit.

Adjusted 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. The Company believes the non-GAAP measure provides useful information to both management and investors by excluding certain expenses, gains and losses, as the case may be, which 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.

Park City Group Selected by All Star Association, One of the Largest National Dairy Trade Associations

Assist the More Than 200 Member Organizations to Achieve Improved Sales and Margins

PARK CITY, Utah – August 4, 2011 – Park City Group (NYSE Amex: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 a national dairy association, All Star Association, Inc. (All Star), for technology solutions that optimize sales and supply chain management for its organization’s members. All Star is a leading dairy trade association representing over 340 production facilities in 47 states, Puerto Rico and Canada, and offering services to help strengthen their members’ operations and improve profitability. Park City Group’s technology is a valuable tool that will be made available to the membership base in order to increase sales and enhance supply chain efficiency.

“All Star is one of the largest dairy associations representing a major share of the $110 billion dairy industry. The selection of Park City Group provides a major endorsement of the value proposition of our solution and a mutually beneficial partner that can assist us to grow our already considerable presence within the dairy category,” commented Randall K. Fields, Park City Group’s Chairman and CEO. “This is the second major trade group that has selected Park City Group in the past year.”

“We look forward to working closely with Park City Group,” said Jeff Sterne, Executive Director of All Star. “Their knowledge of the grocery industry, especially their deep ties into the dairy category, gives us confidence that the benefits provided to our member base will be highly valued. Park City Group’s supply chain visibility technology will permit our members and grocery retailers to collaborate more effectively to increase sales and improve margins.”

About All Star Association, Inc.

Founded in 1958 by John D. Utterback, member-owned All Star Association specializes in volume pricing negotiated with over 150 suppliers on behalf of its members. Other services include marketing, training, quality assurance, carton design, monthly correspondence, annual convention, networking, consulting, careers and scholarships. Current membership includes more than 340 plants in 47 states, Puerto Rico and Canada producing: Fluid Milk, Ice Cream, Cultured Products, Cheese, Water, Beverage, Juice, Custom Blowmolding, and Related products.

About Park City Group

Park City Group (NYSE Amex: PCYG) is a Software-as-a-Service (“SaaS”) provider that brings unique visibility to the consumer goods supply chain. With over $100 million invested in development and 16 years of commercialization surrounding its proprietary scan based data platform, the Company’s services increase customers’ sales and profitability, while ensuring regulatory compliance for both retailers and their suppliers.

Through a process known as Consumer Driven Sales OptimizationTM, Park City Group helps retail and consumer packaged goods customers turn transactional information into actionable strategies to lower inventory, increase sales and improve efficiencies in the supply chain.

The Company’s Food Safety Global RegistryTM provides food retailers and suppliers with a robust solution that will help them protect their brands and remain in compliance with rapidly evolving regulations in the recently-passed Food Safety Modernization Act. The Food Safety Global Registry, an internet-based technology, will enable all participants in the farm-to-table supply chain to easily manage tracking and traceability requirements as products move between trading partners.

Park City Group Repays $1.5 million in Debt

PARK CITY, Utah – July 5, 2011 – Park City Group (NYSE Amex:PCYG), a Software-as-a-Service provider of unique supply chain solutions for retailers and their suppliers, today announced that the Company has prepaid $1.5 million of 12% subordinated promissory notes, which were scheduled to mature on July 12, 2011. Proceeds from a new $350,000 3.95% term note due July 15, 2014 and cash on hand were used to repay the notes.

“With this payment, we have reduced our outstanding debt balance by approximately 20% since June 30, 2010,” said Randall K. Fields, CEO and Chairman of Park City Group. “Since reaching critical mass over a year ago, the company has been generating meaningful free cash flow and has built a substantial cash balance. As our growth accelerates in the coming quarters, so will free cash flow generation, which we will use to further reduce debt and strengthen our balance sheet.”

About Park City Group

Park City Group (NYSE Amex: PCYG) is a Software-as-a-Service (“SaaS”) provider that brings unique visibility to the consumer goods supply chain. With over $100 million invested in development and 16 years of commercialization surrounding its proprietary scan based data platform, the Company’s services increase customers’ sales and profitability, while ensuring regulatory compliance for both retailers and their suppliers.

Through a process known as Consumer Driven Sales OptimizationTM, Park City Group helps retail and consumer packaged goods customers turn transactional information into actionable strategies to lower inventory, increase sales and improve efficiencies in the supply chain.

The Company’s Food Safety Global RegistryTM provides food retailers and suppliers with a robust solution that will help them protect their brands and remain in compliance with rapidly evolving regulations in the recently-passed Food Safety Modernization Act. The Food Safety Global Registry, an internet-based technology, will enable all participants in the farm-to-table supply chain to easily manage tracking and traceability requirements as products move between trading partners.

Park City Group Joins Russell Microcap® Index

PARK CITY, Utah – June 27, 2011 – Park City Group (NYSE Amex:PCYG), a Software-as-a-Service provider of unique supply chain solutions for retailers and their suppliers, today announced that the Company has been added to the Russell Microcap Index. Membership in the Russell Microcap® Index, which remains in place for one year, means Park City Group will automatically be included in appropriate growth and value style indexes.

“Our shareholders should benefit from the increased visibility that comes with our inclusion in the Russell Microcap index,” said Randall K. Fields, CEO and Chairman of Park City Group. “We are committed to enhancing long-term shareholder value and this news marks a milestone in the progress we have achieved in growing our company.”

Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for both passive and active investment strategies. An industry-leading $3.9 trillion in assets currently are benchmarked to them.

More information on the Russell Microcap and other Russell Indexes, including daily returns, is available at http://www.russell.com/Indexes/data/default.asp.

About Park City Group

Park City Group (NYSE Amex: PCYG) is a Software-as-a-Service (“SaaS”) provider that brings unique visibility to the consumer goods supply chain. With over $100 million invested in development and 16 years of commercialization surrounding its proprietary scan based data platform, the Company’s services increase customers’ sales and profitability, while ensuring regulatory compliance for both retailers and their suppliers.

Through a process known as Consumer Driven Sales OptimizationTM, Park City Group helps retail and consumer packaged goods customers turn transactional information into actionable strategies to lower inventory, increase sales and improve efficiencies in the supply chain.

The Company’s Food Safety Global RegistryTM provides food retailers and suppliers with a robust solution that will help them protect their brands and remain in compliance with rapidly evolving regulations in the recently-passed Food Safety Modernization Act. The Food Safety Global Registry, an internet-based technology, will enable all participants in the farm-to-table supply chain to easily manage tracking and traceability requirements as products move between trading partners.

About Russell

Russell Investments provides strategic advice, world-class implementation, state-of-the-art performance benchmarks and a range of institutional-quality investment products. Russell has more than $161 billion in assets under management as of March 31 2011, and serves individual, institutional and advisor clients in more than 35 countries. Founded in 1936, Russell is a subsidiary of The Northwestern Mutual Life Insurance Company.

Park City Group Reports Fiscal Year 2011 Third Quarter Results

SaaS Subscription Revenue Increased 11%, Free Cash Flow Continues to Accelerate

  • 3Q11 subscription revenue increased 11% year over year to $1.7 million
  • 3Q11 GAAP EPS: ($0.04) versus 3Q10 GAAP EPS: $0.00
  • 3Q11 Non-GAAP EPS: ($0.00) versus 3Q10 Non-GAAP EPS: ($0.01)
  • 3Q11 adjusted EBITDA: $335,000 versus 3Q10 adjusted EBITDA: $243,000, a 38% increase
  • Named supplier connection pipeline increased to 670 connections versus approximately 510 at December 31, 2010
  • Retailer hubs increased to 30, versus 28 at December 31, 2010, and 23 at June 30, 2010
  • 3Q11 free cash flow increased by $349,000 to $251,000, or 10% of total sales

PARK CITY, UT – May 10, 2011 – Park City Group (NYSE Amex: PCYG), a Software-as-a-Service (SaaS) provider of unique supply chain solutions for retailers and their suppliers, today reported a GAAP net loss applicable to common shareholders of $451,464, or ($0.04) per diluted share, on revenue of $2.5 million for the third fiscal quarter ended Mar. 31, 2011. This compares to an income applicable to common shareholders of $41,755, or $0.00 per diluted share, on revenue of $3.0 million for the third fiscal quarter ended Mar. 31, 2010. Excluding certain non-cash and other expenses, non-GAAP net loss applicable to common shareholders for the third fiscal quarter was $35,000, or ($0.00) per diluted share compared to a net loss of $120,000 or ($0.01) per diluted share for the prior year.
For the nine month period ended Mar. 31

For the nine month period ended Mar. 31, 2011, the Company reported a GAAP net loss applicable to common shareholders of $983,074, or ($0.09), per diluted share, on revenue of $7.8 million compared to a net loss of $22,099, or ($0.00), per diluted share on revenue of $8.2 million for the same period ended Mar. 31, 2010. Excluding certain non-cash and other expenses, non-GAAP net income applicable to common shareholders for the nine month period ended Mar. 31, 2011 increased 56% to $498,000, or $0.04 per diluted share compared to $320,000 or $0.03 per diluted share for the prior year.

Commenting on the third quarter, Randall K. Fields, Park City Group’s Chairman and CEO said, “We substantially completed our scaling initiatives in Q3 and are very pleased with the additional capacity gained from our work. As a result, we are ready to accelerate the pace of growth in our subscription revenue and address the current and growing pipeline of new business. We expect our fourth quarter to mark an inflection point in our growth, as we are on pace to make 75 to 100 supplier connections primarily associated with the previously announced implementation of our first Mega Hub retail customer. This represents a pace that is three to four times faster than we have ever achieved. Even more impactful to our bottom line, our new highly-automated processes will support the next stage of growth of the Company without the need for significant additional fixed costs.”

Subscription revenue increased 11% year over year to $1.7 million during the third quarter ended Mar. 31, 2011. “Growth in subscription revenue continues to meet our expectations and reflects our disciplined approach to grow at a pace that will allow us to deliver superior customer service,” said Mr. Fields.

While subscription revenue increased during the fiscal third quarter, total revenue decreased 16% primarily as the result of a one-time license sale of patents during the prior year. Total operating expenses during the quarter remained flat year over year at $2.7 million. “Due to customer demand, our model continues to shift toward subscription revenue. Unlike our historical license and maintenance model, which can see significant fluctuations in quarterly revenue, a subscription model provides regular recurring revenue and great visibility into future revenue and earnings,” said David Colbert, the Company’s Chief Financial Officer.

“It is absolutely critical to our long-term success that we continue to deliver high levels of customer service while we ramp the pace of our growth. Thus far in the fourth quarter, our team has contracted or completed 25 supplier connections with outstanding execution. We continue to build and strengthen our account management team, which will assist in our efforts to scale our business and deliver world-class service to our customers. We have built a business model with tremendous operating leverage which we expect to produce 75% contribution margin on incremental revenue. As our top line accelerates, our bottom line should grow even faster,” concluded Mr. Fields.

Conference Call

The Company will host a conference call and webcast today at 4:15 p.m. Eastern to discuss fiscal year 2011 third quarter financial results. Interested parties may access the conference call via telephone by dialing 877-675-3568 and referring to Conference ID: 62811722. The call is being webcast and can be accessed on the Company’s website, www.parkcitygroup.com, under the Investor Relations section. A replay of the webcast will be archived on the Company’s website for 60 days.

About Park City Group

Park City Group (NYSE Amex: PCYG) is a Software-as-a-Service (“SaaS”) provider that brings unique visibility to the consumer goods supply chain. With over $100 million invested in development and 16 years of commercialization surrounding its proprietary scan based data platform, the Company’s services increase customers’ sales and profitability, while ensuring regulatory compliance for both retailers and their suppliers.

Through a process known as Consumer Driven Sales OptimizationTM, Park City Group helps retail and consumer packaged goods customers turn transactional information into actionable strategies to lower inventory, increase sales and improve efficiencies in the supply chain.

The Company’s Food Safety Global RegistryTM provides food retailers and suppliers with a robust solution that will help them protect their brands and remain in compliance with rapidly evolving regulations in the recently-passed Food Safety Modernization Act. The Food Safety Global Registry, an internet-based technology, will enable all participants in the farm-to-table supply chain to easily manage tracking and traceability requirements as products move between trading partners. For more information, go to www.parkcitygroup.com.

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, non-GAAP earnings per share and free cash flow. 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 one-time cash and non-cash charges. Non-GAAP net income (loss) and non-GAAP net income (loss) applicable 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, amortization of acquired intangible assets and other one-time cash and non-cash charges. Free cash flow includes net cash provided (used) by operating activities less purchase of property and equipment and capitalization of software costs. 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. 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.

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. AND SUBSIDIARIES
Consolidated Condensed Statements of Operations (unaudited)



PARK CITY GROUP, INC. AND SUBSIDIARIES
Consolidated Condensed Balance Sheet



PARK CITY GROUP, INC. AND SUBSIDIARIES
Consolidated Condensed Balance Sheet



PARK CITY GROUP, INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows (Unaudited)
For the Nine Months Ended March 31,



PARK CITY GROUP, INC. AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures



PARK CITY GROUP, INC. AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures



PARK CITY GROUP, INC. AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures


Park City Group, Inc. Schedules Third Quarter Fiscal Year 2011 Earnings Conference Call and Webcast

PARK CITY, Utah. – May 3, 2011 – Park City Group (NYSE Amex: PCYG), a Software-as-a-Service provider of unique supply chain solutions for retailers and their suppliers, today announced the Company plans to release results for its fiscal third quarter 2011 after the Market closes on Tuesday, May 10, 2011. Randall K. Fields, Chairman and CEO, will host a conference call at 4:15 P.M. Eastern that day to discuss the Company’s results. Investors and interested parties may participate in the call by dialing (877) 675-3568 and referring to Conference ID: 62811722. The conference call is also being webcast and is available via the investor relations section.

Park City Group (NYSE Amex: 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 as well as providing food safety tracking information. The Company’s service increases customers’ sales and profitability while enabling lower inventory levels and ensuring regulatory compliance 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.

The Food Safety Global RegistryTM provides food retailers and suppliers with a robust solution that will help them protect their brands and remain in compliance with rapidly evolving regulations in the recently passed Food Safety Modernization Act. An internet-based technology, the Food Safety Global Registry, will enable all participants in the farm-to-table supply chain to easily manage tracking and traceability requirements as products move between trading partners.

Park City Group Begins First “Mega Hub” Implementation

Scaling Activities Substantially Complete

PARK CITY, UT – March 23, 2011 – Park City Group (NYSE Amex: PCYG), a Software-as-a-Service provider of unique supply chain solutions for retailers and their suppliers, today announced that it has begun the implementation of its first “Mega Hub” retail customer. This previously-announced customer, one of the nation’s largest supermarket chains, selected the “Mega Hub” version of Park City Group’s Consumer Driven Sales OptimizationTM (“CDSO”) platform.

The company said that the implementation of the “Mega Hub” stems from the substantial progress the Company has made in process and scalability enhancement activities initiated early in this fiscal year.

About Park City Group

Park City Group (NYSE Amex: 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 as well as providing food safety tracking information. The Company’s service increases customers’ sales and profitability while enabling lower inventory levels and ensuring regulatory compliance 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.

The Food Safety Global RegistryTM provides food retailers and suppliers with a robust solution that will help them protect their brands and remain in compliance with rapidly evolving regulations in the recently passed Food Safety Modernization Act. An internet-based technology, the Food Safety Global Registry, will enable all participants in the farm-to-table supply chain to easily manage tracking and traceability requirements as products move between trading partners.


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