ShiftPixy, Inc. Reports Fiscal 2018 Fourth Quarter and Full Year Results
IRVINE, Calif., Nov. 28, 2018 (GLOBE NEWSWIRE) -- ShiftPixy, Inc. (“ShiftPixy” or the “Company”) (Nasdaq: PIXY), a disruptive workforce engagement platform provider, today announced operating results for the fourth quarter ended August 31, 2018 (“2018 Fourth Quarter”) and Full Fiscal Year ended August 31, 2018 (“2018 Full Year”).
“Our business continues to grow rapidly, with the number of worksite employees and our client roster each expanding significantly, and with our financial performance reflecting strong sequential and year-over-year growth,” stated Chief Executive Officer, Scott Absher.
“With the recent opening of our fifth regional office and continued strong progress on our proprietary and sophisticated technology platform, we’re increasingly excited and proud to be playing such a critical and nationwide role in the rapidly expanding Gig Economy workplace.”
2018 Fourth Quarter Highlights
- Gross billings grew 121.8% to $73.4 million, compared to $33.1 million for the 2017 fourth quarter; gross billings increased 21.9% sequentially from $60.2 million in the prior quarter.
- Revenues increased 147.1% to $11.2 million, compared to $4.5 million for the fourth quarter of 2017.
- Worksite employees increased by 3,464 to 8,538, compared to 5,074 as of August 31, 2017; the number of employees at the end of the quarter also represented a sequential increase of 890 over the number of employees at the end of the third fiscal quarter.
- Gross profit was $1.8 million versus a loss of $1.0 million in the prior year period, and net loss per share was 30 cents during the quarter, a significant decrease over the net loss of 19 cents in the prior year period.
2018 Full Year Highlights
- Gross billings grew 75.9% to $222.4 million, compared to $126.4 million for the 2017 full year.
- Revenue increased 72.7% to $35.0 million, compared to $20.2 million for the 2017 full year.
- Worksite employees increased by 3,464 to 8,538 compared to 5,074 as of August 31, 2017
- Gross profit was $5.5 million versus $3.7 million in the prior year, and net loss per share was 58 cents during the year 2018 versus a net loss of 28 cents in the prior year period.
ShiftPixy will host a webcast at 5:00 p.m. Eastern Time on Wednesday, November 28, 2018, to discuss financial results for the 2018 fiscal fourth quarter and full year. Investors can access the webcast through the ShiftPixy website at https://ir.shiftpixy.com.
ShiftPixy (NASDAQ:PIXY) is a disruptive human capital management platform, revolutionizing employment in the Gig Economy by delivering a next-gen mobile engagement technology to help businesses with shift-based employees navigate regulatory mandates, minimize administrative burdens and better connect with a ready-for-hire workforce. With expertise rooted in management's nearly 25 years of workers' compensation and compliance programs experience, ShiftPixy adds a needed layer for addressing compliance and continued demands for equitable employment practices in the growing Gig Economy.
ShiftPixy Cautionary Statement
The information provided in this release includes forward-looking statements, the achievement or success of which involves risks, uncertainties, and assumptions. Although such forward-looking statements are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate. If any of the risks or uncertainties, including those set forth below, materialize or if any of the assumptions proves incorrect, the results of ShiftPixy, Inc., could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties include, but are not limited to, risks associated with the nature of our business model; our ability to execute the Company's vision and growth strategy; our ability to attract and retain clients; our ability to assess and manage risks; changes in the law that affect our business and our ability to respond to such changes and incorporate them into our business model, as necessary; our ability to insure against and otherwise effectively manage risks that affect our business; competition; reliance on third-party systems and software; our ability to protect and maintain our intellectual property; and general developments in the economy and financial markets. Statements made in connection with any guidance may refer to financial statements that have not been reviewed or audited. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, except as required by applicable securities laws. The information in this press release shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and will not be deemed an admission as to the materiality of any information that is required to be disclosed solely by Regulation FD. Further information on these and other factors that could affect the financial results of ShiftPixy, Inc., is included in the filings we make with the Securities and Exchange Commission from time to time. These documents are available on the "SEC Filings" subsection of the "Investor Information" section of our website at https://ir.shiftpixy.com/financial-information/sec-filings.
Consistent with the SEC’s April 2013 guidance on using social media outlets like Facebook and Twitter to make corporate disclosures and announce key information in compliance with Regulation FD, ShiftPixy is alerting investors and other members of the general public that ShiftPixy will provide updates on operations and progress required to be disclosed under Regulation FD through its social media on Facebook, Twitter, LinkedIn and YouTube. Investors, potential investors, shareholders and individuals interested in our Company are encouraged to keep informed by following us on Facebook, Twitter, LinkedIn and YouTube.
|Condensed Consolidated Balance Sheets|
|Restricted cash – workers’ compensation||305,218||-|
|Unbilled accounts receivables||6,192,631||-|
|Deposit workers’ compensation||1,366,879||2,355,000|
|Other current assets||258,901||15,916|
|Total Current Assets||10,447,345||9,028,599|
|Fixed assets, net||3,032,325||288,065|
|Deposits – workers’ compensation||2,201,556||-|
|Deposits and Other assets||120,606||126,480|
|LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY|
|Payroll related liabilities||9,476,641||2,388,454|
|Convertible Note, net||7,156,515||-|
|Accrued workers’ compensation costs||305,217||-|
|Other current liabilities||5,455,921||278,982|
|Total Current Liabilities||23,640,755||3,827,910|
|Accrued workers’ compensation costs||900,978||-|
|Commitments and Contingencies|
|Stockholders' (deficit) equity|
|Preferred stock, 50,000,000 authorized shares; $0.0001 par value; no shares issued and outstanding||-||-|
|Common stock, 750,000,000 authorized shares; $0.0001 par value; 28,851,787 and 28,762,424 shares issued and outstanding, respectively||2,886||2,877|
|Additional paid-in capital||17,233,919||15,012,584|
|Total Stockholders' (deficit) equity||(8,739,901||)||5,615,234|
|TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY||$||15,801,832||$||9,443,144|
|Consolidated Statements of Operations|
|For the Years Ended|
|Revenues (gross billings of $222.4 million and $126.4 million less worksite employee payroll cost of $187.5 million and $106.1 million, respectively)||$||34,958,748||$||20,244,419|
|Cost of revenue||29,458,395||16,552,197|
|Salaries, wages and payroll taxes||5,382,720||4,268,851|
|Depreciation and amortization||274,321||65,369|
|Registration rights penalties||3,500,000||-|
|General and administrative||3,552,622||1,908,081|
|Total operating expenses||20,571,995||11,184,212|
|Net loss per common share|
|Basic and diluted||$||(0.58||)||$||(0.28||)|
|Weighted average number of common shares|
|Basic and diluted||28,810,103||26,778,658|
Released November 28, 2018