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PARK CITY GROUP Sell More - Stock Less - See Everything Park City Group Increases Net Income 71 % for First Quarter of Fiscal 2022 Release : 11/15/2021 4:06:00 PM Recurring revenue grows 10 % , SaaS Transition for Market Place Accelerates Substantial and Growing Interest in Traceability Solution for Coming FDA Mandates SALT LAKE CITY - Park City Group , Inc. ( NASDAQ : PCYG ) , the parent company of ReposiTrak , Inc. , which operates a B2B ecommerce , compliance , and supply chain platform that largely partners with grocery retailers , wholesalers , and their suppliers , to accelerate sales , control risk , improve supply chain efficiencies , and source hard - to - find items , today announced financial results for the first quarter of fiscal 2022 , the period ended September 30 , 2021 . First Quarter Financial Highlights : • Total revenue decreased 13 % to $ 4.6 million from $ 5.2 million due to planned conversion of transactional to recurring Market Place revenue . Recurring SaaS revenue increased 10 % to $ 4.4 million . • Total operating expenses decreased 26 % to $ 3.4 million from $ 4.6 million due to lower Marketplace costs and lower overall SG & A expenses . • Net Income margin doubled from 11 % to 21 % . • GAAP net income increased 71 % to $ 947,000 vs. net income of $ 555,000 in the prior year . Net income to common shareholders increased 96 % to $ 800,000 , vs. $ 408,000 . EPS doubled to $ 0.04 vs. $ 0.02 in the prior year first quarter . • Cash from operations of $ 1.1 million . • The Company repaid its $ 6 million revolving line of credit and has no debt . Randall K. Fields , Chairman and CEO of Park City Group commented , " This quarter proceeded according to plan . Our continuing goal is to grow our recurring revenue by 10-20 % per year , convert Marketplace transactional revenue into SaaS and prepare for our traceability initiative . " Mr. Fields continued , " We delivered 10 % recurring revenue growth , doubled our net margins , and delivered a 71 % increase in net income , simultaneously paying off $ 6 million of debt . As a result , we have no debt , more than $ 20 million in cash , and a growing base of recurring revenue that more than covers our fixed cash costs for almost two years . Our compliance business and supply chain businesses are both growing well , and as the industry adjusts to the current environment , we see opportunity in the balance of the current fiscal year . More importantly , we are laser - focused across the business in preparing ourselves and our customers for the change in Food Safety Rules that will likely begin next year . " " Interest in our track and trace capabilities is extremely high and increasing , likely leading to more than 10 partner trials , well ahead of our plan , " continued Mr. Fields . " We expect even more interest in this solution as the FDA continues to advance the traceability rule included in the Food Safety Modernization Act ( FSMA ) , and we fully expect to be in position for rapid onboarding as the FDA mandates are announced . This represents a very significant and customer - required opportunity ; we will be ready for the emergence of Traceability as a crisis for the industry and ultimately our customers- a crisis we are uniquely equipped to remedy . " First Quarter Financial Results ( three months ended September 30 , 2021 vs. three months ended September 30 , 2020 ) : Total revenue decreased 13 % to $ 4.6 million as compared to $ 5.2 million due largely to a nearly $ 1 million decrease in Market Place revenue . This was partially offset by a 10 % increase in core recurring SaaS revenue . Total operating expense decreased 26 % to $ 3.4 million due to a decrease in cost of goods related to the lower Market Place revenue . GAAP net income was $ 947,000 , versus $ 555,000 . GAAP net income to common shareholders was $ 800,000 , or $ 0.04 per diluted share , compared to $ 408,000 , or $ 0.02 per diluted share . Share Repurchases : In the first quarter , the Company repurchased 7,600 shares at an average price of $ 5.43 for a total of $ 41,276 . To date , the Company has repurchased 718,394 shares at an average price of $ 5.58 for a total of $ 4.0 million . The Company has $ 11.9 million remaining on the $ 12 million buyback authorization . Balance Sheet : The Company had $ 20.4 million in cash and cash equivalents at September 30 , 2021 , compared to $ 24.1 million at June 30 , 2021. During the quarter , Park City fully paid off its working line of credit in the amount of $ 6.0 million . 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 : Monday November 15 , 2021 Time : 4:15 p.m. ET ( 1:15 p.m. PT ) Toll - Free : 1-844-826-3035 Toll / International 1-412-317-5195 Conference ID : 10161813 Replay Dial - In Numbers : Toll Free : 1-844-512-2921 Toll / International : 1-412-317-6671 Replay Start : Monday November 15 , 2021 , 7:15 p.m. ET Replay Expiry : Wednesday December 15 , 2021 , 11:59 p.m. ET Replay Pin Number : 10161813