Company Accelerates Onboarding Hundreds of
Traceability Customers
ReposiTrak (NYSE: TRAK), the world's largest food traceability
and regulatory compliance network, built upon its proven inventory
management and out-of-stock reduction SaaS platform, today
announced financial results for the second fiscal quarter (“FQ2
2024”) ended December 31, 2023.
Second Quarter Financial Highlights:
- Second quarter total revenue increased 8% to $5.13 million from
$4.75 million.
- Recurring revenue increased 8%, net of the planned elimination
of high-touch, low-opportunity revenue, to $5.13 million from $4.74
million, representing approximately 99% of total revenue.
- Quarterly operating expense increased 9% to $3.88 million from
$3.57 million, representing investments in sales, marketing and
onboarding costs to further increase awareness about the FDA
mandate and accelerating onboarding of customers to the ReposiTrak
Traceability Network (“RTN”) solution.
- Quarterly operating income increased 5% to $1.24 million from
$1.18 million last year in spite of higher costs to gear up for
traceability.
- Quarterly GAAP net income increased 15% to $1.45 million from
$1.27 million last year.
- Quarterly net income to common shareholders was $1.30 million,
up 17% from $1.12 million last year.
- Quarterly EPS of $0.07, up 17% from $0.06 last year.
- During the quarter, the Company repurchased 22,012 common
shares at an average price of $8.79 per share for a total of
$193,492.
- During the quarter, the Company repurchased 70,093 preferred
shares for the stated redemption price of $10.70 per share for a
total of $749,995.
- During the quarter, the Board of Directors approved an increase
in the Company’s quarterly cash dividend, to 6.6 cents per share
annually (1.65 cents per share quarterly), commencing with the
December 2023 dividend.
Randall K. Fields, Chairman and CEO of ReposiTrak, commented,
“ReposiTrak some years ago identified traceability as an important
add-on and direction for our business. We positioned ourselves to
be the market leader, and that is coming true. We are delivering
traceability solutions, and the adoption of the repository
traceability network has exceeded our early expectations. Based on
recent market developments, we are convinced that the total
addressable market is expanding significantly beyond our initial
estimates. Traceability is already contributing to our top and
bottom lines, and we expect that to increase significantly over the
next two to three years.”
Mr. Fields continued, “In our view, even before the FDA mandate
deadline of 2026, we expect the RTN will have significantly
expanded to include a substantial portion of the food industry,
creating another robust moat around our business for years to come.
We believe a number of large retailers and wholesalers are in the
process of accelerating the FDA deadline and scope. We are well
prepared to take advantage of these changes. We are meeting this
opportunity from a position of strength, with solid growth,
consistent profitability and more than $23 million in cash on our
balance sheet.”
Second Fiscal Quarter Financial Results (three months
ended December 31, 2023, vs. three months ended December 31,
2022):
Total revenue was up 8% to $5.13 million as compared to $4.75
million in the prior-year second quarter. Total operating expense
was $3.88 million, up 9% compared to $3.57 million last year.
General and administrative expense increased by 8%. GAAP net income
was $1.45 million compared to $1.27 million. Net income to common
shareholders was $1.30 million, or $0.07 per diluted share,
compared to $1.12 million, or $0.06 per diluted share.
Year-to-Date Financial Results (six months ended December
31, 2023, vs. six months ended December 31, 2022):
Total revenue was up 8% to $10.19 million as compared to $9.47
million in the prior-year period. Total operating expense was $7.75
million, up 10% compared to $7.07 million last year. GAAP net
income was $2.83 million compared to $2.55 million. Net income to
common shareholders was $2.54 million, or $0.14 per basic share and
diluted share, compared to $2.26 million, or $0.12 per basic and
diluted share.
Return of Capital:
In the second quarter of fiscal 2024, the Company repurchased
22,012 common shares at an average price of $8.79 per share for a
total of $193,492. Since inception, the Company has repurchased
approximately 2.12 million shares of common stock at an average
price of $6.13 per share, for a total of approximately $13 million.
The Company has approximately $8 million remaining on the $21
million total buyback authorization since inception.
In the second quarter of fiscal 2024, the Company repurchased
70,093 preferred shares at the stated redemption price of $10.70
per share for a total of $749,995. The amount remaining under our
repurchase program is $8.21 million. As previously announced, the
Company anticipates redeeming all of its preferred stock issued and
outstanding over the next three years from August 29, 2023.
In September 2022, the Company’s Board of Directors declared a
quarterly cash dividend of $0.015 per share ($0.06 per year). In
November 2023, the Board of Directors approved a 10% increase in
the quarterly cash dividend, to 6.6 cents per share annually, or
1.65 cents per share quarterly, commencing with the December 2023
dividend.
Balance Sheet:
The Company had $23.25 million in cash and cash equivalents at
December 31, 2023, compared to $23.99 million at June 30, 2023. The
reduction in cash reflects the payment of common stock dividends,
and buyback of common shares and redemption of preferred stock
during the period. The Company had nothing drawn on its working
line of credit as of December 31, 2023 or June 30, 2023.
Conference Call:
The Company will host a conference call at 4:15 p.m. Eastern
today to discuss the Company’s results. The conference call will
also be webcast and will be available via the investor relations
section of the Company’s website, www.parkcitygroup.com.
Participant Dial-In Numbers: Date: Wednesday, February
14, 2024 Time: 4:15 p.m. ET (1:15 p.m. PT) Toll-Free:
1-877-407-9716 Toll/International 1-201-493-6779 Conference ID:
13744233
Replay Dial-In Numbers: Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671 Replay Start: Wednesday,
February 14, 2024, 7:15 p.m. ET Replay Expiry: Thursday, March 14,
2024 at 11:59 p.m. ET Replay PIN Number: 13744233
About ReposiTrak
ReposiTrak (NYSE:TRAK), formerly Park City Group, provides
retailers, suppliers and wholesalers with a robust solution suite
to help reduce risk and remain in compliance with regulatory
requirements, enhance operational controls and increase sales with
unrivaled brand protection. Consisting of three product families –
food traceability, compliance and risk management and supply chain
solutions – ReposiTrak’s integrated, cloud-based applications are
supported by an unparalleled team of experts. For more information,
visit https://repositrak.com.
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 d/b/a ReposiTrak, or ReposiTrak (“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 Group 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.
REPOSITRAK, INC.
Consolidated Condensed Balance
Sheets (Unaudited)
December 31,
2023
June 30, 2023
Assets
Current Assets
Cash and cash equivalents
$
23,253,071
$
23,990,879
Receivables, net of allowance for doubtful
accounts of $219,163 and $170,103 at December 31, 2023 and June 30,
2023, respectively
3,799,551
2,523,019
Contract asset – unbilled current
portion
150,180
186,959
Prepaid expense and other current
assets
366,766
573,763
Total Current Assets
27,569,568
27,274,620
Property and equipment, net
716,979
986,300
Other Assets:
Deposits and other assets
22,414
22,414
Prepaid expense – less current portion
8,996
36,282
Contract asset – unbilled long-term
portion
108,052
108,052
Operating lease – right-of-use asset
280,958
310,796
Customer relationships
197,100
262,800
Goodwill
20,883,886
20,883,886
Capitalized software costs, net
541,450
698,281
Total Other Assets
22,042,856
22,322,511
Total Assets
$
50,329,403
$
50,583,431
Liabilities and Shareholders’
Equity
Current liabilities
Accounts payable
$
332,306
$
431,387
Accrued liabilities
1,634,620
1,620,000
Contract liability – deferred revenue
2,026,565
1,903,001
Operating lease liability – current
61,372
58,771
Notes payable and financing leases –
current
216,542
219,262
Total current liabilities
4,271,405
4,232,421
Long-term liabilities
Operating lease liability – less current
portion
231,830
263,047
Notes payable and financing leases – less
current portion
83,677
206,032
Total liabilities
4,586,912
4,701,500
Commitments and contingencies
Stockholders’ equity:
Preferred Stock; $0.01 par value,
30,000,000 shares authorized;
Series B Preferred, 700,000 shares
authorized; 625,375 shares issued and outstanding at December 31,
2023 and June 30, 2023;
6,254
6,254
Series B-1 Preferred, 550,000 shares
authorized; 142,309 and 212,402 shares issued and outstanding at
December 31, 2023 and June 30, 2023, respectively
1,423
2,124
Common Stock, $0.01 par value, 50,000,000
shares authorized; 18,158,730 and 18,309,051 issued and outstanding
at December 31, 2023 and June 30, 2023, respectively
181,590
183,093
Additional paid-in capital
65,637,265
67,732,887
Accumulated other comprehensive loss
(5,904
)
-
Accumulated deficit
(20,078,137
)
(22,042,427
)
Total stockholders’
equity
45,742,491
45,881,931
Total liabilities and stockholders’
equity
$
50,329,403
$
50,583,431
REPOSITRAK, INC.
Consolidated Condensed
Statements of Operations and Comprehensive Income
(Unaudited)
Three Months Ended
December 31,
Six Months Ended
December 31,
2023
2022
2023
2022
Revenue
$
5,125,751
$
4,750,513
$
10,185,863
$
9,470,990
Operating expense:
Cost of revenue and product support
973,287
866,642
1,739,621
1,699,346
Sales and marketing
1,264,377
1,226,812
2,769,878
2,427,071
General and administrative
1,347,278
1,252,357
2,626,601
2,475,819
Depreciation and amortization
299,958
229,160
608,903
465,166
Total operating expense
3,884,900
3,574,971
7,745,003
7,067,402
Income from operations
1,240,851
1,175,542
2,440,860
2,403,588
Other income (expense):
Interest income
316,445
199,266
574,606
278,358
Interest expense
(7,576
)
(18,058
)
(13,920
)
(42,710
)
Unrealized gain (loss) on short term
investments
15,456
(31,406
)
42,642
(38,821
)
Other gain
-
-
-
70,047
Income before income taxes
1,565,176
1,325,344
3,044,188
2,670,462
(Provision) for income taxes:
(114,027
)
(60,000
)
(214,491
)
(120,006
)
Net income
1,451,149
1,265,344
2,829,697
2,550,456
Dividends on preferred stock
(146,611
)
(146,611
)
(293,222
)
(293,222
)
Net income applicable to common
shareholders
$
1,304,538
$
1,118,733
$
2,536,475
$
2,257,234
Weighted average shares, basic
18,162,000
18,402,000
18,193,000
18,419,000
Weighted average shares, diluted
18,805,000
18,630,000
18,822,000
18,678,000
Basic income per share
$
0.07
$
0.06
$
0.14
$
0.12
Diluted income per share
$
0.07
$
0.06
$
0.14
$
0.12
Comprehensive income:
Net income
$
1,451,149
$
1,265,344
$
2,829,697
$
2,550,456
Other comprehensive loss:
Unrealized loss on available-for-sale
securities
(5,904
)
-
(5,904
)
-
Total comprehensive income
$
1,445,245
$
1,265,344
$
2,823,793
$
2,550,456
REPOSITRAK, INC.
Consolidated Condensed
Statements of Cash Flows (Unaudited)
Six Months Ended
December 31,
2023
2022
Cash flows from operating activities:
Net income
$
2,829,697
$
2,550,456
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
608,903
465,166
Amortization of operating right-of-use
asset
29,838
28,450
Stock compensation expense
171,373
209,869
Bad debt expense
150,000
300,000
(Increase) decrease in:
Accounts receivables
(1,389,753
)
247,507
Long-term receivables, prepaids and other
assets
127,755
21,431
Increase (decrease) in:
Accounts payable
(99,081
)
(300,930
)
Operating lease liability
(28,616
)
(26,172
)
Accrued liabilities
(71,733
)
(207,025
)
Deferred revenue
123,564
11,240
Net cash provided by operating
activities
2,451,947
3,299,992
Cash flows from investing activities:
Purchase of property and equipment
(10,523
)
(270,854
)
Purchase of marketable securities
(5,904
)
-
Net cash used in investing
activities
(16,427
)
(270,854
)
Cash flows from financing activities:
Net decrease in lines of credit
-
(2,142,165
)
Common Stock buyback/retirement
(1,515,574
)
(551,923
)
Redemption of series B-1 preferred
(749,995
)
-
Proceeds from employee stock plan
57,743
48,903
Dividends paid
(840,427
)
(570,511
)
Payments on notes payable and capital
leases
(125,075
)
125,865
Net cash used in financing
activities
(3,173,328
)
(3,089,831
)
Net decrease in cash and cash
equivalents
(737,808
)
(60,693
)
Cash and cash equivalents at beginning of
period
23,990,879
21,460,948
Cash and cash equivalents at end of
period
$
23,253,071
$
21,400,255
Supplemental disclosure of cash flow
information:
Cash paid for income taxes
$
317,944
$
264,486
Cash paid for interest
$
6,434
$
40,446
Cash paid for operating leases
$
36,282
$
35,226
Supplemental disclosure of non-cash
investing and financing activities:
Common stock to pay accrued
liabilities
$
110,000
$
152,195
Dividends accrued on preferred stock
$
293,222
$
293,222
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240214070220/en/
Investor Relations Contact: John Merrill, CFO
Investor-relations@repositrak.com
Or
FNK IR Rob Fink 646.809.4048 rob@fnkir.com
Grafico Azioni ReposiTrak (NYSE:TRAK)
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