ShiftPixy, Inc. Reports Fiscal Fourth Quarter and Full Year 2017 Results
IRVINE, Calif., Dec. 14, 2017 (GLOBE NEWSWIRE) -- ShiftPixy, Inc. (NASDAQ:PIXY), a developing, proprietary next-gen technology platform for workforce engagement and management, today announced operating results for the fiscal fourth quarter and year ended August 31, 2017.
2017 Fiscal Fourth Quarter Highlights
- Gross billings grew over 20% to $33.1 million for the fourth quarter 2017, compared to $27.5 million for the third quarter 2017
2017 Fiscal Full Year Highlights
- Annual fiscal 2017 gross billings more than doubled to $126.4 million from $50.7 million for fiscal year 2016
- Net revenue grew 139% to $20.2 million from $8.5 million in fiscal year 2016
- Gross profit expanded 143% to $3.7 million in fiscal 2017 from $1.5 million in fiscal 2016
- Worksite employees increased 47% to 5,074 from 3,463 in fiscal 2016
“We have made great progress in our efforts to grow the ShiftPixy human capital management platform over the past year as evidenced by the strong results we produced,” noted Scott W. Absher, Chief Executive Officer of ShiftPixy. “We are pleased that we were able to secure our presence in the restaurant and hospitality markets as we added more clients in both industry verticals.”
Mr. Absher continued, “We are proud of our dedicated team of professionals and their accomplishments. They continued to effectively execute on the business plan as management successfully raised over $11 million in proceeds from our June 2017 Initial Public Offering. These efforts enabled us to invest additional capital into the development of our operating platform and team in order to grow the business. As we look ahead, we anticipate that the ongoing development of our technology and mobile platform will further enhance our service offerings and better enable us to meet the needs of our assigned workforce and clients as we create value for our shareholders.”
2018 First Quarter Guidance
Based on our preliminary development of financial statements for the first quarter ending, which statements have not been reviewed and are not required to be audited, the Company currently expects gross billings for fiscal first quarter 2018 to increase from fiscal fourth quarter 2017 by approximately 20% from $33.1 million to $40 million. This number may change as we continue development of our financial statements for the quarter.
ShiftPixy will host a webcast at 5:00 p.m. Eastern Time on Thursday, December 14, 2017, to discuss financial results for the fiscal fourth quarter and year ended 2017. Investors can access the webcast through the ShiftPixy website at http://www.shiftpixy.com/investor-relations.
ShiftPixy is a disruptive human capital management (HCM) services provider, revolutionizing employment in the Gig Economy by delivering a next-gen platform for workforce management that helps 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’s complete HCM ecosystem is designed to manage regulatory requirements and compliance in such required areas as paid time off (PTO) laws, insurance and workers’ compensation, minimum wage increases, and the Affordable Care Act (ACA) compliance.
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. 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 on Forms 1-A and 10-Q and in other 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.
Clark Wilson (888) 798-9100
Consolidated Balance Sheets
|August 31, 2017||August 31, 2016|
|Cash and equivalents||$||5,896,705||$||868,532|
|Other current assets||15,916||73,482|
|Total current assets||9,028,599||1,341,448|
|Fixed assets, net||288,065||348,773|
|Deposits and other assets||126,480||104,613|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Payroll related liabilities||2,388,454||722,715|
|Other current liabilities||278,982||121,269|
|Total current liabilities||3,827,910||1,670,431|
|Preferred stock, 50,000,000 authorized shares; $0.0001 par value; no shares issued and outstanding||-||-|
|Common stock, 750,000,000 authorized shares; $0.0001 par value; 28,762,424 and 26,213,800 shares|
|issued and outstanding as of August 31, 2017 and 2016, respectively||2,877||2,622|
|Additional paid-in capital||15,012,584||2,030,018|
|Total stockholders’ equity||5,615,234||124,403|
|TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY||$||9,443,144||$||1,794,834|
|Consolidated Statements of Operations|
|For the Years Ended|
|August 31, 2017||August 31, 2016|
|Adjustments to gross billings||106,146,788||42,211,476|
|Cost of revenue||16,552,197||6,944,224|
|Sales and marketing||2,710,287||1,019,683|
|General and administrative||4,323,898||1,477,869|
|Total operating expenses||11,184,212||3,370,985|
|Net loss available to common shareholders per common share:|
|Basic and Diluted||$||(0.28||)||$||(0.07||)|
|Weighted average number of common shares used in per share computations:|
|Basic and diluted||26,778,658||25,630,874|
Released December 14, 2017