Interest Expense Expected to Decline by More Than $100,000 Annually
PARK CITY, UT – October 6, 2009 – Park City Group, Inc. (OTCBB: PCYG), a developer of patented, innovative retail supply chain solutions and services, today announced that it has amended certain revolving credit agreements and long term debt obligations at favorable terms:
- Park City Group has amended its $3.0 million Revolving Credit Agreement with U.S. Bank. Under the terms of the amendment, the annual interest rate has been lowered from 7.26% to 3.25%. Approximately $2.9 million is currently outstanding under this revolving line of credit.
- Park City Group has agreed to amend its loan agreement and Note with U.S. Bank dated February 2006. Under the terms of the amendment, the maturity date of the Note has been extended to September 30, 2010 and the interest rate has been lowered by .75%, or 75 basis points.
- Park City Group and U.S. Bank have entered into a $500,000 Term Loan Agreement at 3.73%, replacing a $500,000 revolving line of credit with U.S. Bank. The Principal and accrued interest under the terms of the Note are payable in 16 monthly installments of approximately $9,000 each, beginning on October 15, 2009.
“Since February of 2009 we have refinanced, replaced or amended substantially all of our financing obligations at lower interest rates and at more favorable terms. The lower interest rates are expected to reduce total annual interest expense by more than $100,000,” said John R. Merrill, Chief Financial Officer of Park City Group.
“Our decision to replace a revolving line of credit with a fully amortized loan is consistent with our strategic initiatives and our commitment to use our free cash flow to pay down debt. These transactions demonstrate the comfort our financing partners have in our recurring revenue business model and their confidence in our ability to meet or exceed our cash flow targets” said Randall K. Fields, Park City Group’s Chairman and CEO.
About Park City Group
Park City Group is a trusted business solutions and services provider that enables 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. Our 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. For more information please visit www.parkcitygroup.com.
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.