Park City Group Inc (PCYG) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $0.61 million, or $ 0.02 a share in the quarter, against a net loss of $0.41 million, or $0.03 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $0.89 million, or $0.04 a share compared with a net loss of $0.11 million, or $0.02 a share in the last year period.
Revenue during the quarter surged 36.08 percent to $4.22 million from $3.10 million in the previous year period. Gross margin for the quarter expanded 936 basis points over the previous year period to 71.46 percent. Operating margin for the quarter period stood at positive 16.13 percent as compared to a negative 13.56 percent for the previous year period.
Operating income for the quarter was $0.68 million, compared with an operating loss of $0.42 million in the previous year period.
At the same time, adjusted EBITDA margin stood at 25.07 percent for the quarter compared to negative 0.01 percent in the last year period.
“We continue to see acceleration in revenue growth, driven by stronger momentum at ReposiTrak,” said Randall K. Fields, Park City Group’s chairman and chief executive officer. “This was Park City Group’s largest revenue quarter ever. Total revenue for the quarter was a record $4.2 million, an increase of 36% year-over-year, which was also the highest quarterly growth rate in our history.”
Operating cash flow remains negative
Park City Group Inc has spent $0.12 million cash to meet operating activities during the quarter as against cash outgo of $0.15 million in the last year period.
The company has spent $0.02 million cash to meet investing activities during the quarter as against cash outgo of $4.66 million in the last year period.
Cash flow from financing activities was $0.08 million for the quarter, up 97.25 percent or $0.04 million, when compared with the last year period.
Cash and cash equivalents stood at $11.39 million as on Sep. 30, 2016, up 73.64 percent or $4.83 million from $6.56 million on Sep. 30, 2015.
Working capital increases sharply
Park City Group Inc has recorded an increase in the working capital over the last year. It stood at $9.15 million as at Sep. 30, 2016, up 64.59 percent or $3.59 million from $5.56 million on Sep. 30, 2015. Current ratio was at 2.27 as on Sep. 30, 2016, up from 1.70 on Sep. 30, 2015.
Days sales outstanding went up to 69 days for the quarter compared with 51 days for the same period last year.
At the same time, days payable outstanding went down to 53 days for the quarter from 71 for the same period last year.
Debt moves up marginally
Park City Group Inc has witnessed an increase in total debt over the last one year. It stood at $3.16 million as on Sep. 30, 2016, up 4.74 percent or $0.14 million from $3.02 million on Sep. 30, 2015. Total debt was 8.02 percent of total assets as on Sep. 30, 2016, compared with 8.32 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.10 as on Sep. 30, 2016, when compared with the last year.
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