First Quarter 2010 Results Exceed Expectations Reflecting Adjusted EBITDA of $720,000 and Positive Operating Cash Flow
PARK CITY, UT – November 10, 2009 – Park City Group, Inc. (OTCBB: PCYG), a developer of patented, innovative retail supply chain solutions and services, today announced its financial results for the first quarter ended September 30, 2009.
- Total revenue of $2.69 million for the quarter ended September 30, 2009, compared with $530,278 in the prior year’s first quarter;
- Income from operations of $311,145 for the quarter ended September 30 2009, compared to an operating loss of ($901,542) in the prior year’s first quarter;
- Earnings Per Share (EPS) of $.01 for the quarter ended September 30, 2009, compared to a loss of ($.13) per share in the prior year’s first quarter;
- EBITDA increased to $517,670 for the quarter ended September 30, 2009, meeting the Company’s previous guidance for EBITDA to be in excess of $500,000;
- Adjusted EBITDA increased to approximately $720,000 for the quarter ended September 30, 2009, compared with an Adjusted Pro-forma EBITDA loss of approximately ($313,000) for the prior year’s first quarter.
Park City Group reported total revenue of $2.69 million for quarter ended September 30, 2009, compared with $530,278 for the quarter ended September 30, 2008. The increase is principally due to the acquisition of Prescient Applied Intelligence on January 13, 2009.
The Company reported income from operations of $311,145 for the quarter ended September 30, 2009, compared with a loss from operations of ($901,542) in the same period in 2008.
EBITDA increased to $517,670 for the quarter ended September 30, 2009. Adjusted EBITDA increased to approximately $720,000 for the quarter ended September 30, 2009, compared with an Adjusted Pro-forma EBITDA loss of approximately ($313,000) for the prior year’s first quarter. 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 September 30, 2009 was $86,903, or $0.01 per common share, compared with a net loss of ($1,209,884) in the prior year’s first quarter, or $(0.13) per common share. Results for the quarter ended September 30, 2009 include a gain on refinancing of certain debt instruments of $43,811 and other gains of $24,185, offset by an increase in net interest expense of $188,006 due to debt incurred as a result of the Prescient acquisition.
“This was a very strong way to begin fiscal 2010, with positive operating cash flow, positive EPS and our fourth consecutive quarter of positive EBITDA. We also restructured the debt incurred as a result of the Prescient acquisition. These milestones exceeded our internal expectations and provide evidence that we are on the way to achieve the kind of operating leverage we anticipated when we first contemplated the Prescient acquisition,” said Randall K. Fields, Park City Group’s Chairman and CEO. “With over 75% of our revenue coming from recurring sources, it is clear that our evolution from a traditional licensing based model to a subscription, or recurring software as a service (SaaS) model, was the right progression for our Company.”
Non-GAAP Financial Measures
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. Adjusted pro-forma EBITDA excludes certain items and considers Non GAAP results as if the Company’s were combined 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.
The Company will host a conference call at 10:00 A.M. EST on November 11, 2009 to discuss its first quarter 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 #40582353.
A replay of the conference call will be accessible until December 11, 2009 by dialing (800) 642-1687 and entering Conference ID # 40582353.
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.
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.
Consolidated Statements of Operations (unaudited)
Reconciliation of GAAP and Non-GAAP Financial Measures