Release Details
ShiftPixy, Inc. Reports Fiscal 2019 Results
2019 Financial Highlights
- Loss per share improved to
$0.57 in 2019 compared to$0.58 for 2018. - Gross billings grew 59% to
$353 million , compared to$222 million for 2018. Q4 billings exceeded$100 million for the first quarter in our history at$105 million for an exit annualized billings rate of over$420 million . - Revenues increased 53% to
$53 million , compared to$35 million for 2018. - Gross profit was
$12.4 million , increasing 125% over 2018 gross profit of$5.5 million due to improving margins and workers compensation cost savings. Gross profit per worksite employee improved to$1,200 for 2019 from$800 for 2018. - Loss from Operations improved to
$9.7 million from$11.6 million in 2018. - EBITDAS Loss (Operating Loss excluding depreciation and share-based compensation) improved to
$8.3 million for 2019 from$11.0 million for 2018 due to improved margins and reduced spending on our mobile application, offset by increased operations costs. - Investment in our mobile application and technology solution deployment decreased to
$4.9 million in 2019 from$7.5 million in 2018 due to reduced costs relating to movement to our new in-sourced development team. Total Human Resource Information System (HRIS) and mobile application investment is$15.5 million to date.
2019 Operational highlights
- The number of employees billed during the year and retained in our employee HRIS exceeded 25,000.
- The active number of worksite employees billed increased to 13,100 at
August 31, 2019 , a 54% increase, from 8,500 atAugust 31, 2018 . - Average gross billings per worksite employee increased by 4.3% to
$33,600 in 2019 from$32,200 in 2018 - Average operating support costs per billed worksite employee improved in 2019. We have staffed to manage up to 50,000 active worksite employees with our current corporate overhead.
- Our dispute with our outsourced software development partner delayed our HRIS and mobile application launch in 2019 and necessitated our move towards in-house development.
“We continue to see strong growth in our legacy business which has driven top line expansion and improvement in our operating metrics, including gross billings and gross profits for 2019,” stated Chief Executive Officer,
About
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
Consistent with the SEC’s
INVESTOR CONTACT:
InvestorRelations@shiftpixy.com
800.475.3655
Consolidated Balance Sheets
| August 31, 2019 |
August 31, 2018 |
|||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 1,561,000 | $ | 1,650,000 | ||||
| Accounts receivable | 272,000 | 111,000 | ||||||
| Unbilled accounts receivable | 9,478,000 | 6,193,000 | ||||||
| Deposits-workers’ compensation | 1,957,000 | 1,672,000 | ||||||
| Prepaid expenses | 519,000 | 563,000 | ||||||
| Other current assets | 244,000 | 259,000 | ||||||
| Total current assets | 14,031,000 | 10,447,000 | ||||||
| Fixed assets, net | 3,360,000 | 3,032,000 | ||||||
| Deposits- workers’ compensation | 6,281,000 | 2,202,000 | ||||||
| Deposits and other assets | 124,000 | 121,000 | ||||||
| Total assets | $ | 23,796,000 | $ | 15,802,000 | ||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 3,061,000 | $ | 1,246,000 | ||||
| Accrued payroll and related liabilities | 16,412,000 | 9,477,000 | ||||||
| Convertible Notes, Net | 3,351,000 | 6,171,000 | ||||||
| Derivative liability | 3,756,000 | - | ||||||
| Accrued workers’ compensation costs | 1,957,000 | 305,000 | ||||||
| Default penalties accrual | 1,800,000 | 3,500,000 | ||||||
| Other current liabilities | 1,850,000 | 1,956,000 | ||||||
| Total current liabilities | 32,187,000 | 22,656,000 | ||||||
| Noncurrent liabilities | ||||||||
| Accrued workers’ compensation costs | 4,379,000 | 901,000 | ||||||
| Total liabilities | 36,566,000 | 23,557,000 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ deficit | ||||||||
| 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; 36,281,894 and 28,851,787 shares issued as of August 31, 2019 and 2018, respectively | 4,000 | 3,000 | ||||||
| Additional paid-in capital | 32,501,000 | 18,465,000 | ||||||
| Treasury stock, at cost - 558,132 shares and no shares as of August 31, 2019 and 2018, respectively | (325,000 | ) | - | |||||
| Accumulated deficit | (44,950,000 | ) | (26,223,000 | ) | ||||
| Total stockholders’ deficit | (12,770,000 | ) | (7,755,000 | ) | ||||
| Total liabilities and stockholders’ deficit | $ | 23,796,000 | $ | 15,802,000 | ||||
Consolidated Statements of Operations
| For the Years Ended | ||||||||
| August 31, 2019 |
August 31, 2018 |
|||||||
| Revenues (gross billings of $352.6 million and $222.4 million (unaudited) less worksite employee payroll cost of $299.2 million and $187.5 million, (unaudited) respectively) | $ | 53,436,000 | $ | 34,959,000 | ||||
| Cost of revenue | 41,046,000 | 29,458,000 | ||||||
| Gross profit | 12,390,000 | 5,500,000 | ||||||
| Operating expenses: | ||||||||
| Salaries, wages and payroll taxes | 7,702,000 | 5,383,000 | ||||||
| Share-based compensation - general and administrative | 632,000 | 363,000 | ||||||
| Commissions | 2,732,000 | 1,594,000 | ||||||
| Professional fees | 3,918,000 | 2,078,000 | ||||||
| Software development | 1,209,000 | 3,828,000 | ||||||
| Marketing and advertising | 1,208,000 | 547,000 | ||||||
| General and administrative | 3,823,000 | 3,005,000 | ||||||
| Depreciation and amortization | 839,000 | 274,000 | ||||||
| Total operating expenses | 22,063,000 | 17,072,000 | ||||||
| Operating Loss | (9,673,000 | ) | (11,572,000 | ) | ||||
| Other income (expense) | ||||||||
| Interest expense | (8,507,000 | ) | (1,751,000 | ) | ||||
| Loss on debt extinguishment | (3,927,000 | ) | - | |||||
| Change in fair value of derivative | 2,569,000 | - | ||||||
| Gain (Loss) associated with note defaults, net | 811,000 | (3,500,000 | ) | |||||
| Total Other income (expense) | (9,054,000 | ) | (5,251,000 | ) | ||||
| Net Loss | $ | (18,727,000 | ) | $ | (16,823,000 | ) | ||
| Net loss per common share | ||||||||
| Basic and diluted | $ | (0.57 | ) | $ | (0.58 | ) | ||
| Weighted average number of common shares | ||||||||
| Basic and diluted | 32,708,800 | 28,810,103 | ||||||
Source: ShiftPixy, Inc.