TRAK ReposiTrak Inc

Traceability On-Boarding Continues to Accelerate Company Increases Quarterly Common Dividend

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 fourth fiscal quarter (“FQ4 2024”) and full fiscal year ended June 30, 2024.

Full-Year Fiscal 2024 Financial Highlights:

• Full-year total revenue increased 7% to $20.5 million from $19.1 million.
• Recurring revenue increased 7%, net of the planned elimination of high-touch, low-opportunity revenue, to $20.4 million from $19.0 million.
• Full-year operating expense increased 10% to $15.4 million from $14.0 million. Fiscal 2023 included approximately $1.4 million in an Employee Retention Credit (“ERC”), reducing general and administrative expense in fiscal 2023, which did not reoccur in fiscal 2024.
• Full-year operating income was $5.0 million in fiscal 2024 from $5.1 million last year – essentially flat. Excluding the non-recurring ERC credit in fiscal 2023, operating income would have increased approximately $1.3 million year-over-year.
• Full-year GAAP net income increased 7% to $5.9 million from $5.6 million last year. Excluding the non-recurring ERC credit in the third fiscal quarter last year, net income would have increased approximately $1.4 million year-over-year.
• Full-year net income to common shareholders was $5.4 million, up 8% from $5.0 million last year. Excluding the non-recurring ERC credit in the prior fiscal year, net income to common shareholders would have increased approximately $1.4 million year-over-year.
• Full-year basic EPS of $0.30, up 11% compared to $0.27 last year.
• The Company finished the year with $25.2 million in cash and no bank debt.
• ReposiTrak’s Board of Directors approved a 10% increase to the Company’s quarterly common stock dividend, beginning with the dividend payable to shareholders of record on December 31, 2024.

Fourth Quarter Financial Highlights:

• Fourth quarter total revenue increased 8% to $5.2 million from $4.8 million.
• Recurring revenue increased 7%, net of the planned elimination of high-touch, low-opportunity revenue, to $5.1 million from $4.8 million, representing effectively all of total revenue.
• Quarterly operating expense increased 6% to $3.9 million from $3.6 million.
• Quarterly operating income increased 13% to $1.3 million from $1.2 million last year.
• Quarterly GAAP net income increased 15% to $1.6 million from $1.4 million last year.
• Quarterly net income to common shareholders was $1.5 million, up 18% from $1.2 million last year.
• Quarterly EPS of $0.08 compared to $0.07 in the prior year fourth fiscal quarter.
• During the quarter, the Company redeemed 81,121 preferred shares for the stated redemption price of $10.70 per share for a total of $867,995.

Randall K. Fields, Chairman and CEO of ReposiTrak, commented, “Our strategic position and operational results of the ReposiTrak Traceability Network (RTN) continues to exceed our expectations. We are the traceability market leader. Our on-boarding pace is accelerating and, as a result, our revenue growth will follow suit over the next few quarters.”

Fields continued, “In fiscal 2024, we grew every line of business, including compliance and scan-based trading, even as we focused our resources on traceability. We delivered full-year earnings per share of $0.30, generated net cash from operations of $7.0 million, and ended the fiscal year with more than $25 million cash in the bank, the highest level in our history. This profitability allowed us to return over $5.6 million in capital to shareholders this fiscal year through a growing cash dividend, the repurchase of common stock and the redemption of preferred stock.”

Fourth Fiscal Quarter Financial Results (three months ended June 30, 2024, vs. three months ended June 30, 2023):

Total revenue was up 8% to $5.2 million as compared to $4.8 million in the prior-year fourth quarter. Total operating expense was $3.9 million, up 6% compared to $3.6 million last year. General and administrative expense increased by 4%. GAAP net income was $1.6 million compared to $1.4 million. Net income to common shareholders was $1.5 million, or $0.08 per diluted share, compared to $1.2 million, or $0.07 per diluted share.

Year-to-Date Financial Results (12 months ended June 30, 2024, vs. 12 months ended June 30, 2023):

Total revenue was up 7% to $20.5 million as compared to $19.1 million in the prior-year period. Total operating expense was $15.4 million, up 10% compared to $14.0 million last year. Last fiscal year included a non-recurring Employee Retention Credit benefit of approximately $1.4 million, reducing the year-ago operating expense. Inclusive of the impact of this credit in the year-ago quarter, GAAP net income was $6.0 million compared to $5.6 million. Net income to common shareholders was $5.4 million, or $0.30 per basic and $0.29 per diluted share, compared to $5.0 million, or $0.27 per basic and diluted share last year.

Return of Capital:

In the fourth quarter of fiscal 2024, the Company redeemed 81,121 preferred shares at the stated redemption price of $10.70 per share for a total of $867,995. To date, the Company has redeemed 221,307 shares of preferred stock for a total of $2.4 million. The remaining amount of the preferred share redemption is $6.6 million. As previously announced, the Company anticipates redeeming all of its preferred shares issued and outstanding over the next three years. In addition, the Company has approximately $8 million remaining of the $21 million total common share buyback authorization.

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. On June 18, 2024, the Company's Board of Directors declared a quarterly cash dividend of $0.0165 per share, payable to shareholders of record on June 28, 2024. The cash dividends were paid to shareholders of record on or about August 12, 2024.

Balance Sheet:

The Company had $25.2 million in cash and cash equivalents at June 30, 2024, compared to $24.0 million at June 30, 2023. In March 2024, the Company chose not to renew its working line of credit. As of June 30, 2024, there were no balances due on the line of credit.

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, September 30, 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: 13748737

Replay Dial-In Numbers: Toll Free: 1-844-512-2921 Toll/International: 1-412-317-6671 Replay Start: Monday, September 30, 2024, 7:15 p.m. ET Replay Expiry: Wednesday, October 30, 2024, at 11:59 p.m. ET Replay Pin Number: 13748737

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 ReposiTrak Inc., Park City Group d/b/a ReposiTrak, or Park City Group, Inc. (“ReposiTrak”) are intended to identify such forward-looking statements. ReposiTrak 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 ReposiTrak 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 Balance Sheets

 

 

June 30,

 

June 30,

 

 

2024

 

2023

Assets

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash

 

$

25,153,862

 

 

$

23,990,879

 

Receivables, net of allowance for doubtful accounts of $227,573 and $170,103 at June 30, 2024 and 2023, respectively

 

 

3,678,627

 

 

 

2,523,019

 

Contract asset – unbilled current portion

 

 

181,680

 

 

 

186,959

 

Prepaid expense and other current assets

 

 

285,998

 

 

 

573,763

 

Total Current Assets

 

 

29,300,167

 

 

 

27,274,620

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

513,277

 

 

 

986,300

 

 

 

 

 

 

 

 

Other Assets:

 

 

 

 

 

 

Deposits and other assets

 

 

22,414

 

 

 

22,414

 

Prepaid expense – less current portion

 

 

2,609

 

 

 

36,282

 

Contract asset – unbilled long-term portion

 

 

108,052

 

 

 

108,052

 

Operating lease – right-of-use asset

 

 

250,306

 

 

 

310,796

 

Customer relationships

 

 

131,400

 

 

 

262,800

 

Goodwill

 

 

20,883,886

 

 

 

20,883,886

 

Capitalized software costs, net

 

 

384,621

 

 

 

698,281

 

Total Other Assets

 

 

21,783,288

 

 

 

22,322,511

 

 

 

 

 

 

 

 

Total Assets

 

$

51,596,732

 

 

$

50,583,431

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

265,086

 

 

$

431,387

 

Accrued liabilities

 

 

1,554,775

 

 

 

1,620,000

 

Contract liability – deferred revenue

 

 

2,441,234

 

 

 

1,903,001

 

Operating lease liability – current

 

 

64,076

 

 

 

58,771

 

Notes payable and financing leases – current

 

 

217,971

 

 

 

219,262

 

Total current liabilities

 

 

4,543,142

 

 

 

4,232,421

 

 

 

 

 

 

 

 

Long-term liabilities

 

 

 

 

 

 

Operating lease liability – less current portion

 

 

198,972

 

 

 

263,047

 

Notes payable and financing leases – less current portion

 

 

-

 

 

 

206,032

 

Total liabilities

 

 

4,742,114

 

 

 

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; 616,470 and 625,375 shares issued and outstanding at June 30, 2024 and 2023, respectively

 

 

6,165

 

 

 

6,254

 

Series B-1 Preferred, 550,000 shares authorized; 0 and 212,402 shares issued and outstanding at June 30, 2024 and 2023, respectively

 

 

-

 

 

 

2,124

 

Common Stock, $0.01 par value, 50,000,000 shares authorized; 18,234,893 and 18,309,051 issued and outstanding at June 30, 2024 and 2023, respectively

 

 

182,351

 

 

 

183,093

 

Additional paid-in capital

 

 

64,655,902

 

 

 

67,732,887

 

Accumulated other comprehensive loss

 

 

(27,390

)

 

 

-

 

Accumulated deficit

 

 

(17,962,410

)

 

 

(22,042,427

)

Total stockholders’ equity

 

 

46,854,618

 

 

 

45,881,931

 

Total liabilities and stockholders’ equity

 

$

51,596,732

 

 

$

50,583,431

 

 

REPOSITRAK, INC.

Consolidated Statements of Operations

 

 

 

For the Years Ended

 

 

June 30,

 

 

2024

 

2023

 

 

 

 

 

 

 

Revenue

 

$

20,453,320

 

 

$

19,098,910

 

 

 

 

 

 

 

 

Operating expense:

 

 

 

 

 

 

Cost of revenue and product support

 

 

3,416,450

 

 

 

3,309,345

 

Sales and marketing

 

 

5,492,719

 

 

 

4,933,405

 

General and administrative

 

 

5,330,437

 

 

 

4,685,783

 

Depreciation and amortization

 

 

1,189,483

 

 

 

1,079,799

 

Total operating expense

 

 

15,429,089

 

 

 

14,008,332

 

 

 

 

 

 

 

 

Income from operations

 

 

5,024,231

 

 

 

5,090,578

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

Interest income

 

 

1,272,719

 

 

 

821,777

 

Interest expense

 

 

(28,166

)

 

 

(60,990

)

Unrealized gain (loss) on short term investments

 

 

63,997

 

 

 

(9,752

)

Other gain

 

 

-

 

 

 

70,047

 

Income before income taxes

 

 

6,332,781

 

 

 

5,911,660

 

 

 

 

 

 

 

 

(Provision) for income taxes

 

 

(374,491

)

 

 

(321,371

)

Net income

 

 

5,958,290

 

 

 

5,590,289

 

 

 

 

 

 

 

 

Dividends on Preferred Stock

 

 

(549,645

)

 

 

(586,444

)

 

 

 

 

 

 

 

Net income applicable to common shareholders

 

$

5,408,645

 

 

$

5,003,845

 

 

 

 

 

 

 

 

Weighted average shares, basic

 

 

18,202,000

 

 

 

18,406,000

 

Weighted average shares, diluted

 

 

18,931,000

 

 

 

18,766,000

 

Basic earnings per share

 

$

0.30

 

 

$

0.27

 

Diluted earnings per share

 

$

0.29

 

 

$

0.27

 

 

 

 

 

 

 

 

Comprehensive income:

 

 

 

 

 

 

Net income

 

$

5,958,290

 

 

$

5,590,289

 

Other comprehensive loss:

 

 

 

 

 

 

Unrealized loss on available-for-sale securities

 

 

(27,390

)

 

 

-

 

Total comprehensive income

 

$

5,930,900

 

 

$

5,590,289

 

 

REPOSITRAK, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

 

 

 

For the Years Ended

 

 

June 30,

 

 

2024

 

2023

Cash flows from operating activities:

 

 

 

 

 

 

Net income

 

$

5,958,290

 

 

$

5,590,289

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

1,189,483

 

 

 

1,079,799

 

Amortization of operating right of use asset

 

 

60,490

 

 

 

57,716

 

Stock compensation expense

 

 

367,147

 

 

 

390,716

 

Bad debt expense

 

 

375,000

 

 

 

1,300,000

 

(Increase) decrease in:

 

 

 

 

 

 

Accounts receivables

 

 

(1,525,329

)

 

 

(195,345

)

Long-term receivables, prepaids and other assets

 

 

123,355

 

 

 

559,009

 

Increase (decrease) in:

 

 

 

 

 

 

Accounts payable

 

 

(166,301

)

 

 

(259,251

)

Operating lease liability

 

 

(58,770

)

 

 

(53,862

)

Accrued liabilities

 

 

102,803

 

 

 

43,090

 

Deferred revenue

 

 

538,233

 

 

 

347,858

 

Net cash provided by operating activities

 

 

6,964,401

 

 

 

8,860,019

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(73,317

)

 

 

(133,944

)

Capitalization of software development costs

 

 

-

 

 

 

(769,243

)

Purchase of marketable securities

 

 

(27,390

)

 

 

-

 

Net cash (used in) provided by investing activities

 

 

(100,707

)

 

 

(903,187

)

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

Net (decrease) in lines of credit

 

 

-

 

 

 

(2,590,907

)

Common stock buyback/retirement

 

 

(1,515,574

)

 

 

(1,309,323

)

Redemption of Series B-1 preferred

 

 

(2,367,996

)

 

 

-

 

Proceeds from employee stock plan

 

 

111,839

 

 

 

92,727

 

Dividends paid

 

 

(1,721,657

)

 

 

(1,414,912

)

Payments on notes payable and capital leases

 

 

(207,323

)

 

 

(204,486

)

Net cash used in financing activities

 

 

(5,700,711

)

 

 

(5,426,901

)

 

 

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

 

1,162,983

 

 

 

2,529,931

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

 

23,990,879

 

 

 

21,460,948

 

Cash and cash equivalents at end of period

 

$

25,153,862

 

 

$

23,990,879

 

 

 

 

 

 

 

 

Supplemental Disclosure of Cash Flow Information

 

 

 

 

 

 

Cash paid for income taxes

 

$

332,222

 

 

$

296,484

 

Cash paid for interest

 

$

15,223

 

 

$

59,081

 

Cash paid for operating leases

 

$

73,291

 

 

$

71,157

 

 

 

 

 

 

 

 

Supplemental Disclosure of Non-Cash Investing and Financing Activities

 

 

 

 

 

 

Common Stock to pay accrued liabilities

 

$

536,879

 

 

$

294,607

 

Dividends accrued on Preferred Stock

 

$

549,645

 

 

$

586,444

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240930993961/en/

Investor Relations Contact: John Merrill, CFO Investor-relations@repositrak.com

Or

FNK IR Rob Fink 646.809.4048 rob@fnkir.com