ReposiTrak(TRAK) - 2024 Q3 - Quarterly Results

Fiscal Third Quarter 2024 Earnings Release Financial and Operational Highlights The company reported steady revenue growth driven by its traceability business and maintained a strong, debt-free balance sheet - The company is experiencing accelerated onboarding of traceability customers, with this segment now accounting for approximately 5% of annualized consolidated revenue[3] - Management is confident that the Traceability business will double the company's total revenue over the next three years, based on facilities already implemented and in the queue[3] - The company maintains robust profitability and a strong balance sheet, ending the quarter with $24.5 million in cash and no debt[1][3][5] Q3 2024 Key Performance Indicators | Indicator | Value | Change (YoY) | | :--- | :--- | :--- | | Total Revenue | $5.1 million | +5% | | Recurring Revenue | $5.1 million | +6% | | Diluted EPS | $0.08 | Unchanged | Financial Results Quarterly and year-to-date revenue grew steadily, though net income comparisons were skewed by a prior-year non-recurring credit Third Fiscal Quarter Financial Results Q3 2024 vs. Q3 2023 Financials (Three Months Ended March 31) | Metric | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $5.08M | $4.82M | +5% | | Operating Expense | $3.82M | $3.30M | +15% | | Operating Income | $1.26M | $1.52M | -17% | | GAAP Net Income | $1.55M | $1.66M | -7% | | Diluted EPS | $0.08 | $0.08 | 0% | - The 15% increase in operating expenses and subsequent decrease in operating income were primarily due to a non-recurring $1 million Employee Retention Credit (ERC) received in Q3 2023[5] - Recurring revenue grew 6% to $5.1 million, representing approximately 99% of total revenue for the quarter[5] Year-to-Date Financial Results YTD 2024 vs. YTD 2023 Financials (Nine Months Ended March 31) | Metric | YTD 2024 | YTD 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $15.27M | $14.30M | +7% | | Operating Expense | $11.57M | $10.37M | +12% | | GAAP Net Income | $4.38M | $4.21M | +4% | | Diluted EPS | $0.21 | $0.20 | +5% | - Similar to the quarterly results, the year-to-date operating expense comparison is affected by the non-recurring $1 million Employee Retention Credit from the prior-year period[6] Capital Management and Balance Sheet The company maintains a strong, debt-free balance sheet while actively returning capital via dividends and share buybacks - In Q3 2024, the company redeemed 70,093 preferred shares for a total of $749,995 and anticipates redeeming all remaining preferred shares ($7.46 million) over the next three years[7] - The company has approximately $8 million remaining under its total $21 million common share buyback authorization[7] - The Board of Directors approved a 10% increase in the quarterly cash dividend to 1.65 cents per share (6.6 cents annually), effective December 2023[8] - As of March 31, 2024, the company had $24.5 million in cash and cash equivalents and no outstanding debt on its working line of credit[9] Consolidated Financial Statements Unaudited statements detail the company's financial position, operational performance, and cash flows for the period Consolidated Condensed Balance Sheets Balance Sheet Summary (Unaudited) | Account | March 31, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $24,452,680 | $23,990,879 | | Total Current Assets | $28,827,713 | $27,274,620 | | Total Assets | $51,333,478 | $50,583,431 | | Total Liabilities | $4,860,581 | $4,701,500 | | Total Stockholders' Equity | $46,472,897 | $45,881,931 | Consolidated Condensed Statements of Operations Statement of Operations - Three Months Ended March 31 (Unaudited) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | $5,084,866 | $4,824,101 | | Income from operations | $1,262,343 | $1,521,782 | | Net income | $1,550,427 | $1,663,020 | | Diluted income per share | $0.08 | $0.08 | Statement of Operations - Nine Months Ended March 31 (Unaudited) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | $15,270,729 | $14,295,091 | | Income from operations | $3,703,203 | $3,925,370 | | Net income | $4,380,124 | $4,213,476 | | Diluted income per share | $0.21 | $0.20 | Consolidated Condensed Statements of Cash Flows Cash Flow Summary - Nine Months Ended March 31 (Unaudited) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,910,741 | $7,065,890 | | Net cash (used in) investing activities | ($48,538) | ($903,187) | | Net cash used in financing activities | ($4,400,402) | ($4,682,158) | | Net increase in cash | $461,801 | $1,480,545 | | Cash at end of period | $24,452,680 | $22,941,493 |