On October 2, 2024, ReposiTrak Inc (TRAK, Financial) released its 8-K filing detailing the financial results for the fourth fiscal quarter and full fiscal year ended June 30, 2024. ReposiTrak Inc, a software as a service provider, offers a comprehensive suite of solutions to help businesses manage operations, compliance, and regulatory requirements efficiently.
Fiscal Year 2024 Financial Highlights
ReposiTrak Inc reported a full-year revenue of $20.5 million, surpassing the analyst estimate of $20.34 million. The company also delivered earnings per share (EPS) of $0.30, exceeding the estimated EPS of $0.27. This performance underscores the company's robust growth and strategic positioning in the market.
Fourth Quarter Financial Highlights
For the fourth quarter, ReposiTrak Inc reported total revenue of $5.2 million, an 8% increase compared to $4.8 million in the same period last year. This figure also surpassed the analyst estimate of $5.07 million. The company's total operating expense for the quarter was $3.9 million, up 6% from $3.6 million in the prior-year quarter. General and administrative expenses saw a 4% increase.
GAAP net income for the quarter was $1.6 million, compared to $1.4 million in the previous year. Net income to common shareholders was $1.5 million, or $0.08 per diluted share, compared to $1.2 million, or $0.07 per diluted share, in the same period last year.
Year-to-Date Financial Results
For the full fiscal year, ReposiTrak Inc reported total revenue of $20.5 million, a 7% increase from $19.1 million in the prior year. Total operating expenses rose by 10% to $15.4 million, compared to $14.0 million last year. The previous fiscal year included a non-recurring Employee Retention Credit benefit of approximately $1.4 million, which reduced the year-ago operating expense.
GAAP net income for the year was $6.0 million, up from $5.6 million in the previous year. Net income to common shareholders was $5.4 million, or $0.30 per basic and $0.29 per diluted share, compared to $5.0 million, or $0.27 per basic and diluted share, last year.
Balance Sheet and Cash Flow
As of June 30, 2024, ReposiTrak Inc had $25.2 million in cash and cash equivalents, compared to $24.0 million at the end of the previous fiscal year. The company generated net cash from operations of $7.0 million and ended the fiscal year with the highest cash balance in its history. This strong cash position allowed the company to return over $5.6 million in capital to shareholders through dividends, stock repurchases, and preferred stock redemptions.
Return of Capital
In the fourth quarter, ReposiTrak Inc redeemed 81,121 preferred shares at a total cost of $867,995. To date, the company has redeemed 221,307 shares of preferred stock for a total of $2.4 million. The company plans to redeem all outstanding preferred shares over the next three years. Additionally, ReposiTrak Inc has approximately $8 million remaining of the $21 million total common share buyback authorization.
In September 2022, the company's Board of Directors declared a quarterly cash dividend of $0.015 per share. In November 2023, the Board approved a 10% increase in the quarterly cash dividend to 1.65 cents per share, commencing with the December 2023 dividend. On June 18, 2024, the Board declared a quarterly cash dividend of $0.0165 per share, payable to shareholders of record on June 28, 2024.
Commentary from Leadership
"Our strategic position and operational results of the ReposiTrak Traceability Network (RTN) continue to exceed our expectations. We are the traceability market leader. Our on-boarding pace is accelerating and, as a result, our revenue growth will follow suit over the next few quarters," said Randall K. Fields, Chairman and CEO of ReposiTrak.
Fields continued, "In fiscal 2024, we grew every line of business, including compliance and scan-based trading, even as we focused our resources on traceability. We delivered full-year earnings per share of $0.30, generated net cash from operations of $7.0 million, and ended the fiscal year with more than $25 million cash in the bank, the highest level in our history. This profitability allowed us to return over $5.6 million in capital to shareholders this fiscal year through a growing cash dividend, the repurchase of common stock and the redemption of preferred stock."
Analysis
ReposiTrak Inc's strong financial performance in fiscal 2024 highlights its effective strategic initiatives and robust market positioning. The company's ability to exceed both quarterly and annual revenue and earnings estimates demonstrates its operational efficiency and growth potential. The increase in operating expenses, while notable, is offset by the significant revenue growth and improved net income, indicating effective cost management.
The company's strong cash position and commitment to returning capital to shareholders through dividends and stock repurchases further underscore its financial health and shareholder-friendly policies. As ReposiTrak Inc continues to expand its traceability network and enhance its service offerings, it is well-positioned for sustained growth in the coming quarters.
Explore the complete 8-K earnings release (here) from ReposiTrak Inc for further details.
