TRAK ReposiTrak Inc

Growth in All Lines of Business Results in a 70% Increase in Deferred Revenue as Industry Demand for Food Safety, Compliance and Supply Chain Solutions Increases

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 2025”) ended December 31, 2024.

Second Fiscal Quarter Financial Highlights:

• Second quarter total revenue increased 7% to $5.5 million from $5.1 million.
• Recurring revenue increased 5%, reflecting a significant amount of setup fees earned during the quarter due to the number of customers onboarding to the system.
• Quarterly operating expense increased 7% to $4.1 million from $3.9 million.
• Quarterly operating income increased 9% to $1.4 million from $1.2 million last year.
• Quarterly GAAP net income increased 7% to $1.6 million from $1.5 million last year.
• Quarterly net income to common shareholders increased 12% to $1.5 million from $1.3 million last year.
• Quarterly EPS of $0.08 compared to $0.07 in the prior year second fiscal quarter.
• The Company finished the quarter with over $28.0 million in cash and no bank debt.
• During the quarter, the Company redeemed 70,093 preferred shares for the stated redemption price of $10.70 per share for a total of $749,995 and repurchased 4,074 common shares at an average price of $24.55 for a total of $100,017.

Randall K. Fields, Chairman and CEO of ReposiTrak commented, “As we anticipated, the pace of onboarding suppliers continues to accelerate as we approach the FSMA 204 January 2026 deadline. The 70% increase in deferred revenue reflected on our balance sheet represents growth in all lines of business, including the ReposiTrak Traceability Network or RTN. These customers are contracted, have been onboarded, and the substantial increase in deferred revenue represents more incremental revenue that we will recognize over the next twelve months. With close to $4.2 million, or more than 75% of our current quarterly revenue run-rate, we are more confident in our ability to generate double-digit top-line growth for the balance of the fiscal year and well into fiscal 2026. ReposiTrak is exceedingly well-positioned in the market, with industry endorsements and partnerships, driving demand as retailers push adoption of food safety, compliance, and supply chain initiatives.”

“Simultaneously, the pipeline for Traceability continues to expand rapidly, and overall demand continues to exceed our expectations,” continued Mr. Fields. “Retailers are driving adoption ahead of the FDA deadlines, and, more importantly, demanding that all food be traced, far exceeding the FDA mandates. Continued food recalls, increased legal exposure, and the commitment to food safety by major retailers are all contributing to increased adoption, and this is translating to growing interest and an expanding customer base from suppliers in our cost-effective solution.”

“The positive impact of Traceability on our business is increasingly apparent, atop the established compliance and supply chain we have in place,” continued Mr. Fields. “We continue to convert higher revenues into greater profitability and cash generation, ending the quarter with record cash balances even as we return robust capital to shareholders.”

Second Fiscal Quarter Financial Results (three months ended December 31, 2024, vs. three months ended December 31, 2023):

Total revenue was up 7.1% to $5.5 million as compared to $5.1 million in the prior-year second quarter. Total operating expense was $4.1 million, up 6.5% compared to $3.9 million last year. General and administrative expense increased by 2.2%, and sales and marketing expense increased 15.1%, related to investments in Traceability. GAAP net income was $1.6 million compared to $1.5 million, an increase of 6.9%. Net income to common shareholders was $1.5 million, or $0.08 per diluted share, compared to $1.3 million, or $0.07 per diluted share, an increase of 11.6%.

Year-to-Date Financial Results (six months ended December 31, 2024, vs. six months ended December 31, 2023):

Total revenue was up 7.3% to $10.9 million as compared to $10.2 million in the prior-year six-month period. Total operating expense was $8.1 million, up 4.6% compared to $7.7 million last year. General and administrative expense increased by 1.6%, and sales and marketing expense increased 7.7%. GAAP net income was $3.2 million compared to $2.8 million, an increase of 13.7%. Net income to common shareholders was $3.0 million, or $0.17 per basic share and $0.16 per diluted share, compared to $2.5 million, or $0.14 per basic share and $0.13 per diluted share.

Return of Capital:

In the second quarter of fiscal 2025, the Company redeemed 70,093 preferred shares at the stated redemption price of $10.70 per share for a total of $749,995. To date, the Company has redeemed 361,493 shares of preferred stock for a total of $3.9 million. The remaining amount of the preferred shares available for redemption is $5.1 million. As announced in September of 2023, the Company anticipates redeeming all of its preferred shares issued and outstanding within three years. In addition, the Company repurchased 4,074 shares of common stock at an average price of $24.55 for a total of $100,017. The Company has approximately $7.9 million remaining of the $21 million total common share buyback authorization.

On December 16, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.01815 per share ($0.0726 per year), payable to shareholders of record on December 31, 2024, which will be paid to shareholders of record on or about February 13, 2025. Subsequent dividends will be paid within 45 days of each fiscal quarter end.

Balance Sheet:

The Company had $28.0 million in cash and cash equivalents at December 31, 2024, compared to $25.2 million at June 30, 2024, an 11.1% increase. Given the Company’s liquidity, in February 2024, the Company chose not to renew its working line of credit with a bank and closed the facility. The Company has certain operating and capital leases for its headquarters and equipment; however, it carries no bank debt.

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.repositrak.com.

Participant Dial-In Numbers: Date: Wednesday, February 12, 2025 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: 13751155

Replay Dial-In Numbers: Toll Free: 1-844-512-2921 Toll/International: 1-412-317-6671 Replay Start: Wednesday, February 12, 2025, 7:15 p.m. ET Replay Expiry: Wednesday, March 12, 2025, at 11:59 PM ET Replay Pin Number/Access ID: 13751155

About ReposiTrak:

ReposiTrak (NYSE: TRAK) provides retailers, suppliers, food manufacturers 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, please 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.(“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 Condensed Balance Sheets (Unaudited)

 

 

 

December 31,

 

 

June 30,

 

 

 

2024

 

 

2024

 

Assets

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

Cash

 

$

28,041,398

 

 

$

25,153,862

 

Receivables, net of allowance for doubtful accounts of $221,406 and $227,573 at December 31, 2024 and June 30, 2024, respectively

 

 

3,374,594

 

 

 

3,678,627

 

Contract asset – unbilled current portion

 

 

645,983

 

 

 

181,680

 

Prepaid expense and other current assets

 

 

332,564

 

 

 

285,998

 

Total Current Assets

 

 

32,394,539

 

 

 

29,300,167

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

893,076

 

 

 

513,277

 

 

 

 

 

 

 

 

 

 

Other Assets:

 

 

 

 

 

 

 

 

Deposits and other assets

 

 

22,414

 

 

 

22,414

 

Prepaid expense – less current portion

 

 

1,826

 

 

 

2,609

 

Contract asset – unbilled long-term portion

 

 

-

 

 

 

108,052

 

Operating lease – right-of-use asset

 

 

218,954

 

 

 

250,306

 

Customer relationships

 

 

65,700

 

 

 

131,400

 

Goodwill

 

 

20,883,886

 

 

 

20,883,886

 

Capitalized software costs, net

 

 

256,414

 

 

 

384,621

 

Total Other Assets

 

 

21,449,194

 

 

 

21,783,288

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

54,736,809

 

 

$

51,596,732

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

291,872

 

 

$

265,086

 

Accrued liabilities

 

 

1,417,272

 

 

 

1,554,775

 

Contract liability – deferred revenue

 

 

4,160,207

 

 

 

2,441,234

 

Operating lease liability – current

 

 

66,846

 

 

 

64,076

 

Notes payable and financing leases – current

 

 

316,738

 

 

 

217,971

 

Total current liabilities

 

 

6,252,935

 

 

 

4,543,142

 

 

 

 

 

 

 

 

 

 

Long-term liabilities

 

 

 

 

 

 

 

 

Operating lease liability – less current portion

 

 

164,984

 

 

 

198,972

 

Notes payable and financing leases – less current portion

 

 

384,136

 

 

 

-

 

Total liabilities

 

 

6,802,055

 

 

 

4,742,114

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred Stock; $0.01 par value, 30,000,000 shares authorized;

 

 

 

 

 

 

 

 

Series B Preferred, 700,000 shares authorized; 476,284 and 616,470 shares issued and outstanding at December 31, 2024 and June 30, 2024, respectively

 

 

4,763

 

 

 

6,165

 

Common Stock, $0.01 par value, 50,000,000 shares authorized; 18,257,322 and 18,234,893 and issued and outstanding at December 31, 2024 and June 30, 2024, respectively

 

 

182,576

 

 

 

182,351

 

Additional paid-in capital

 

 

63,436,160

 

 

 

64,655,902

 

Accumulated other comprehensive loss

 

 

(8,521

)

 

 

(27,390

)

Accumulated deficit

 

 

(15,680,224

)

 

 

(17,962,410

)

Total stockholders’ equity

 

 

47,934,754

 

 

 

46,854,618

 

Total liabilities and stockholders’ equity

 

$

54,736,809

 

 

$

51,596,732

 

REPOSITRAK, INC.

Consolidated Condensed Statements of Operations and Comprehensive Income (Unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

5,490,908

 

 

$

5,125,751

 

 

$

10,932,050

 

 

$

10,185,863

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue and product support

 

 

1,002,556

 

 

 

973,287

 

 

 

1,861,775

 

 

 

1,739,621

 

Sales and marketing

 

 

1,455,036

 

 

 

1,264,377

 

 

 

2,984,136

 

 

 

2,769,878

 

General and administrative

 

 

1,376,553

 

 

 

1,347,278

 

 

 

2,669,104

 

 

 

2,626,601

 

Depreciation and amortization

 

 

304,712

 

 

 

299,958

 

 

 

584,923

 

 

 

608,903

 

Total operating expense

 

 

4,138,857

 

 

 

3,884,900

 

 

 

8,099,938

 

 

 

7,745,003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

1,352,051

 

 

 

1,240,851

 

 

 

2,832,112

 

 

 

2,440,860

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

354,633

 

 

 

316,445

 

 

 

704,166

 

 

 

574,606

 

Interest expense

 

 

(12,033

)

 

 

(7,576

)

 

 

(22,205

)

 

 

(13,920

)

Unrealized gain (loss) on short term investments

 

 

8,534

 

 

 

15,456

 

 

 

4,267

 

 

 

42,642

 

Income before income taxes

 

 

1,703,185

 

 

 

1,565,176

 

 

 

3,518,340

 

 

 

3,044,188

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Provision) for income taxes:

 

 

(152,105

)

 

 

(114,027

)

 

 

(302,105

)

 

 

(214,491

)

Net income

 

 

1,551,080

 

 

 

1,451,149

 

 

 

3,216,235

 

 

 

2,829,697

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends on preferred stock

 

 

(95,616

)

 

 

(146,611

)

 

 

(203,498

)

 

 

(293,222

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income applicable to common shareholders

 

$

1,455,464

 

 

$

1,304,538

 

 

$

3,012,737

 

 

$

2,536,475

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares, basic

 

 

18,254,000

 

 

 

18,162,000

 

 

 

18,249,000

 

 

 

18,193,000

 

Weighted average shares, diluted

 

 

19,143,000

 

 

 

18,805,000

 

 

 

19,122,000

 

 

 

18,822,000

 

Basic income per share

 

$

0.08

 

 

$

0.07

 

 

$

0.17

 

 

$

0.14

 

Diluted income per share

 

$

0.08

 

 

$

0.07

 

 

$

0.16

 

 

$

0.13

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

1,551,080

 

 

$

1,451,149

 

 

$

3,216,235

 

 

$

2,829,697

 

Other comprehensive gain:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on available-for-sale securities

 

 

(15,217

)

 

 

(5,904

)

 

 

18,869

 

 

 

(5,904

)

Total comprehensive income

 

$

1,535,863

 

 

$

1,445,245

 

 

$

3,235,104

 

 

$

2,823,793

 

REPOSITRAK, INC.

Consolidated Condensed Statements of Cash Flows (Unaudited)

 

 

 

Six Months Ended

 

 

 

December 31,

 

 

 

2024

 

 

2023

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

3,216,235

 

 

$

2,829,697

 

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

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

584,923

 

 

 

608,903

 

Amortization of operating right of use asset

 

 

31,352

 

 

 

29,838

 

Stock compensation expense

 

 

202,987

 

 

 

171,373

 

Bad debt expense

 

 

300,000

 

 

 

150,000

 

(Increase) decrease in:

 

 

 

 

 

 

 

 

Accounts receivables

 

 

(460,270

)

 

 

(1,389,753

)

Long-term receivables, prepaids and other assets

 

 

(54,102

)

 

 

127,755

 

Increase (decrease) in:

 

 

 

 

 

 

 

 

Accounts payable

 

 

26,786

 

 

 

(99,081

)

Operating lease liability

 

 

(31,218

)

 

 

(28,616

)

Accrued liabilities

 

 

(207,036

)

 

 

(71,733

)

Deferred revenue

 

 

1,718,973

 

 

 

123,564

 

Net cash provided by operating activities

 

 

5,328,630

 

 

 

2,451,947

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

-

 

 

 

(10,523

)

Sale (purchase) of marketable securities

 

 

18,869

 

 

 

(5,904

)

Net cash provided by (used in) investing activities

 

 

18,869

 

 

 

(16,427

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Common Stock buyback/retirement

 

 

(100,016

)

 

 

(1,515,574

)

Redemption of Series B Preferred

 

 

(1,499,980

)

 

 

-

 

Redemption of Series B-1 Preferred

 

 

-

 

 

 

(749,995

)

Proceeds from exercise of warrants

 

 

79,120

 

 

 

-

 

Proceeds from employee stock plan

 

 

64,352

 

 

 

57,743

 

Dividends paid

 

 

(831,898

)

 

 

(840,427

)

Payments on notes payable and capital leases

 

 

(171,541

)

 

 

(125,075

)

Net cash used in financing activities

 

 

(2,459,963

)

 

 

(3,173,328

)

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

2,887,536

 

 

 

(737,808

)

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

 

25,153,862

 

 

 

23,990,879

 

Cash and cash equivalents at end of period

 

$

28,041,398

 

 

$

23,253,071

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Cash paid for income taxes

 

$

375,119

 

 

$

317,944

 

Cash paid for interest

 

$

4,832

 

 

$

6,434

 

Cash paid for operating leases

 

$

37,371

 

 

$

36,282

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Common stock to pay accrued liabilities

 

$

137,440

 

 

$

110,000

 

Dividends accrued on preferred stock

 

$

203,489

 

 

$

293,222

 

Right-of-use asset

 

$

654,444

 

 

$

-

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250212631184/en/

Investor Relations Contact:

John Merrill, CFO Investor-relations@repositrak.com

Or FNK IR Rob Fink 646.809.4048 rob@fnkir.com