Company Expects to Report EBITDA in Excess of $500,000 and Positive EPS
PARK CITY, UT – October 23, 2009 – Park City Group, Inc. (OTCBB: PCYG), a developer of patented, innovative retail supply chain solutions and services, today announced that it expects fiscal first quarter EBITDA and Earnings per Share to exceed expectations driven by strong revenue growth and prudent expense management.
For its fiscal first quarter ended September 30, 2009, the company expects to report:
- Revenue between $2.6 and $2.7 million, compared with $530,000 in the first quarter of fiscal 2009. The increase in revenue is primarily the result of the acquisition of Prescient Applied Intelligence, Inc. that occurred in January of 2009.
- EBITDA in excess of $500,000, a sequential improvement of nearly 60% when compared with the fourth quarter of fiscal 2009.
- Positive Earnings per Share, compared with a loss of $.13 per share in the first quarter of fiscal 2009.
“Our first quarter results not only validate the quality of our products and services but their growing acceptance in the marketplace,” said Randall K. Fields, Park City Group’s Chairman and CEO. “Looking forward, we expect to report consecutive quarterly earnings growth, though quarterly revenue growth may reflect the seasonality of our customers businesses.”
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 quarterly review. 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.
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, go to www.parkcitygroup.com.