Park City Group Inc. (NASDAQ:PCYG) Q2 2019 Earnings Conference Call Transcript

Feb 07, 2019 • 04:30 pm ET


Park City Group Inc. (NASDAQ:PCYG) Q2 2019 Earnings Conference Call Transcript


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Greetings, ladies and gentlemen, and welcome to the Park City Group Fiscal Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will the formal presentation. As a reminder this conference is being recorded

It is now my pleasure to introduce your host, Mr. Rob Fink, with Hayden Investor Relations. Please proceed, sir.

Rob Fink

Thank you, operator, and good afternoon, everyone. Thank you for joining us today for Park City Group's Fiscal 2019 Second Quarter Earnings Call.

Hosting the call today are Mr. Randy Fields, Park City Group's CEO and Chairman; and Todd Mitchell, Park City Group's CFO.

Before we begin, I would like to remind everyone that this call could contain forward-looking statements about Park City Group within the context of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not subject to historical facts. Such forward-looking statements are based on current beliefs and expectations. Park City Group management -- and are subject to risks and uncertainties, which could cause actual results to differ from forward-looking statements. Such risks are fully discussed in the company's filings with the Securities and Exchange Commission. The information set forth herein should be considered in light of such risks. Park City Group does not assume any obligation to update information contained in this conference call. Shortly after the market close today, the company issued a press release overviewing the financial result that I will discuss on today's call. Investors can visit the Investor Relations section of the company's website at to access the news release.

In addition, in the earnings release and on this call, the company may refer to GAAP and non-GAAP financial results, including free cash flow, EBITDA, adjusted EBITDA and adjusted earnings per share, which are non-GAAP terms. Management believes these non-GAAP terms are useful measures for the company, primarily because of the significant noncash charges in its operating statement. Reconciliations of GAAP and non-GAAP results are in the earnings press release that are on the Investor Relations website.

With all that said, I'd now like to turn the call over to Todd Mitchell. Todd, the call is yours.

Todd Mitchell

Thank you, Rob, and good afternoon, everyone. The key takeaway from our fiscal 2Q results is that our converged business plan, that is to offer three application suites that enable the retailer to source new suppliers, get those suppliers and efficiently transact with those suppliers on a single cohesive platform is delivering the benefits we expected in the form of stronger execution and expanded profitability. Let's look at the numbers a little bit.

Revenue. Fiscal 2Q revenue was $5.6 million, which was down modestly from $5.7 million a year ago. I'm not going to dwell on this other than to make three points. First, we had a tough year-over-year comparison. We had a large licensing transaction in the comparable period a year ago. We've moved away from this model, but occasionally, customers want to structure deals this way,