Revenues Increase 95%
Net Income Reaches $1.4 Million
PARK CITY, Utah–(BUSINESS WIRE)–Park City Group, Inc. (OTCBB: PCYG) today announced financial results for the 2006 fiscal year ending June 30, 2006. For the full year, the Company reported revenues of $7,085,125 compared to $3,631,812 in 2005, a 95% increase. Net income for the 2006 fiscal year was $1,393,596 versus a loss of ($3,408,037) for the 2005 fiscal year.
Highlights of the year include:
- Software license sales increased 656% from $479,615 in 2005 to $3,626,821 in 2006.
- ASP revenues increased 74% from $104,367 to $182,083.
- Consulting revenues increased 37%, from $735,522 to $1,004,224.
- Total liabilities during the year were reduced from $8,772,879 to $3,344,825.
- Interest expense declined from $1,178,454 to $884,404.
- Stockholder equity increased from a deficit of ($7,702,949) to a surplus of $1,481,638.
- Cash and Cash Equivalents increased from $209,670 to $3,517,060.
Over the course of the year, Park City Group added several new clients and customers including marquee food suppliers like Perdue Farms and Monterey Mushrooms, and with tier-one Convenience Store retailers like Circle K, Race Trac and Kwik Trip for new installations. Renewed agreements with long-time customers like Tesco-Lotus, Wawa, Sheetz, The Home Depot, PacSun, Schnucks and Roche Brothers were also added.
Chairman and CEO Randall K. Fields commented,
â€œThe 2006 fiscal year was an extraordinary period for Park City Group. In addition to seeing a dramatic swing from a loss in 2005 to a substantial profit in 2006, we spent a great deal of time this year putting in place the foundation we need to support our business plan. As previously reported, a major restructuring of our balance sheet has dramatically reduced the size of our outstanding debt and the reduced annual interest expense will add significantly to net income. We also strengthened our working capital position with a $5 million dollar financing during the fourth quarter. Coupled with the debt restructuring, Park City Group now has a significantly stronger balance sheet to help support our growth expectations. The final piece of our efforts to strengthen our capital structure was a reverse split of the Companyâ€™s shares in August. We believe the reduced number of shares outstanding will create greater visibility for our earnings per share and thus make our stock more appealing to institutional investors We made strong progress in all of our targeted markets during the year and our success there is continually bolstered by our focus on staying ahead of the technological curve of the industry. The recent announcement of the upgrade of our Fresh Market Manager solution is an example of that effort. We have added some key personnel to our professional staff including positions in marketing, account service, development, data analytics, and accounting. These staff additions are very important to the build up of the infrastructure we will require going forward.
In addition, based on input from our current customers and needs expressed by the market, we also began development of several new products that we expect to be completed in the near future. We also organized a group within our Professional Services Organization to help our customers with metrics analytics, and a development team in Bangalore, India to enhance our productivity and time to market.
We are very pleased with all that we have achieved in the past year. We feel that we now have in place critical elements of what we need to service this fast moving and rapidly expanding industry and we look forward to a strong 2007.â€?