Insurance Technology Industry News

TMCNet:  ShiftPixy, Inc. Reports Fiscal 2019 First Quarter Results

[January 11, 2019]

ShiftPixy, Inc. Reports Fiscal 2019 First Quarter Results

IRVINE, Calif., Jan. 11, 2019 (GLOBE NEWSWIRE) -- ShiftPixy, Inc. (NASDAQ: PIXY), a developing, proprietary next-gen technology platform for workforce engagement and management, today announced operating results for the three months ended November 30, 2018 (“2019 First Quarter”).

2019 First Quarter Highlights

  • Gross billings grew 77% to $70.9 million, compared to $40.2 million for the fiscal 2018 first quarter; gross billings for the quarter decreased 3.4% sequentially from $73.4 million in the prior quarter.
  • Revenues increased 62% to $10.5 million for the quarter, compared to $6.5 million for the first quarter of fiscal 2018.
  • Worksite employees increased by 3,520 to an average of 8,990 compared to an average of 5,470 for the quarter ended November 30, 2017; the number of employees at the end of the quarter also represented a sequential increase of approximately 740 over the number of employees at the end of the fourth quarter of fiscal 2018.
  • Gross profit for the quarter was $3.4 million versus $1.2 million in the prior year period, and net loss per share was 7 cents during the quarter, versus a net loss of 12 cents the prior year period.

"It’s an exciting time for ShiftPixy and it's gratifying to see the rapid adoption of our platform driving strong growth in both our client base and our number of worksite employees,” stated Chief Executive Officer, Scott Absher. “We are pleased with the pace of our growth and anticipate that our rapidly developing technology platform will further enhance our service offerings and better enable us to meet the needs of our assigned workforce and clients as we endeavor to create value for our shareholders.”

Webcast

ShiftPixy will host a webcast at 8:30 a.m. Eastern Time on Friday, January 11, 2019, to discuss financial results for its 2019 fiscal first quarter. Investors can access the webcast through the ShiftPixy website at https://ir.shiftpixy.com.

About ShiftPixy

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.  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 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.

CONTACT:
Media:
Clark Wilson
clark.wilson@shiftpixy.com
888.798.9100

Investors:
InvestorRelations@shiftpixy.com
800.475.3655

ShiftPixy, Inc.
Condensed Consolidated Balance Sheets 
 
 
 
  November 30,
2018
  August 31,
2018
 
ASSETS  (Unaudited)    
Current assets        
Cash $  227,454  $1,649,783 
Accounts receivable  129,452   110,931 
Unbilled accounts receivable  4,759,141   6,192,631 
Deposit – workers’ compensation  1,923,465   1,672,097 
Prepaid expenses   378,525   563,002 
Other current assets  351,555    258,901 
Total current assets  7,769,592   10,447,345 
         
Fixed assets, net  3,337,861   3,032,325 
Deposits – workers’ compensation  2,841,882   2,201,556 
Deposits and other assets  94,375   120,606 
         
Total assets $  14,043,710   $15,801,832 
 

LIABILITIES AND STOCKHOLDERS' DEFICIT
        
         
Current liabilities        
Accounts payable $ 1,486,581  $1,246,461 
Payroll related liabilities  7,488,262   9,476,641 
Convertible note, net  6,309,104   7,156,515 
Accrued workers’ compensation costs  634,697   305,217 
Registration rights penalties accrual (Note 9)  3,500,000   3,500,000 
Other current liabilities  1,230,418   1,955,921 
Total current liabilities  20,649,062   23,640,755 
 

Non-current liabilities
        
Accrued workers’ compensation costs  1,639,900   900,978 
Total liabilities  22,288,962   24,541,733 
         
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; 29,822,822 and 28,851,787 shares issued and outstanding, respectively  2,983   2,886 
Additional paid-in capital  19,728,657   17,233,919 
Accumulated deficit  (27,976,892)  (25,976,706)
Total stockholders' deficit  (8,245,252)  (8,739,901)
Total liabilities and stockholders’ deficit $  14,043,710  $15,801,832 


 
ShiftPixy Inc.
Condensed Consolidated Statements of Operations 
(Unaudited)
 
 
  For the Three Months
Ended November 30,
  2018  2017
          
Revenues (gross billings of $70.9 million and $40.2 million less worksite employee payroll cost of $60.4 million and $33.7 million, respectively) $10,519,990   $6,511,919 
          
Cost of revenue  7,134,168     5,266,403 
Gross profit  3,385,822    1,245,516 
Operating expenses:         
Salaries, wages and payroll taxes  1,794,965    1,180,489 
Stock-based compensation - general and administrative   77,222    70,296 
Commissions  553,216    271,630 
Professional fees  624,045    492,455 
Software development   310,000    1,900,000 
Depreciation and amortization  187,723    17,695 
General and administrative   1,127,915    654,168 
Total operating expenses  4,675,086    4,586,733 
Operating Loss  (1,289,264)   (3,341,217)
 Other Expense         
Interest expense  (710,922    - 
          
Net Loss   $(2,000,186  $ (3,341,217
          
Net loss per common share         
Basic and diluted $(0.07  $(0.12
          
Weighted average number of common shares         
Basic and diluted  28,921,300    26,767,850 
 


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