ShiftPixy, Inc. Reports Fiscal 2018 Third Quarter Results

IRVINE, Calif., July 13, 2018 (GLOBE NEWSWIRE) -- ShiftPixy, Inc. ("ShiftPixy" or the "Company") (NASDAQ:PIXY), a disruptive workforce engagement platform provider, today announced operating results for the three months ended May 31, 2018 ("2018 Third Quarter").

"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 Third Quarter Highlights

  • Gross billings grew 119.2% to $60.2 million, compared to $27.5 million for the 2017 third quarter; gross billings increased 23.7% sequentially from $48.6 million in the prior quarter.
  • Revenues increased 102.6% to $9.4 million, compared to $4.6 million for the third quarter of 2017.
  • Worksite employees increased by 3,654 to 7,648, compared to 3,994 as of May 31, 2017; the number of employees at the end of the quarter also represented a sequential increase of 850 over the number of employees at the end of the second fiscal quarter.
  • Gross profit was $1.5 million versus $0.6 million in the prior year period, and net loss per share was 6 cents during the quarter, an improvement over the net loss of 11 cents in the prior year period.

Webcast

ShiftPixy will host a webcast at 5:00 p.m. Eastern Time on Friday, July 13, 2018, to discuss financial results for the 2018 fiscal third quarter. Investors can access the webcast through the ShiftPixy website at https://ir.shiftpixy.com.

About ShiftPixy

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 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 
 
    May 31,
2018
   August 31,
2017

    (Unaudited)        
ASSETS             
Current Assets                
Cash and cash equivalents   $   1,187,386     $ 5,896,705  
Accounts receivable     307,847       428,790  
Prepaid expenses     2,205,741       2,687,188  
Other current assets     177,712       15,916  
Total Current Assets     3,878,686       9,028,599  
                 
Fixed assets, net     1,086,282       288,065  
Deposits and Other assets     137,980       126,480  
                 
Total Assets   $   5,102,948     $ 9,443,144  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
Current Liabilities                
Accounts payable   $    850,225     $ 1,160,474  
Payroll related liabilities     5,374,954       2,388,454  
Other current liabilities     795,192       278,982  
Total Current Liabilities     7,020,371       3,827,910  
                 
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; 28,800,675 and 28,762,424 shares issued and outstanding, respectively     2,881       2,877  
Additional paid-in capital     15,357,342       15,012,584  
Accumulated deficit     (17,277,646 )     (9,400,227  
Total Stockholders' (Deficit) Equity     (1,917,423 )     5,615,234  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $   5,102,948     $ 9,443,144  
ShiftPixy Inc.
Condensed Consolidated Statements of Operations
 
(Unaudited) 
                               
    For the Three Months Ended
May 31,
  For the Nine Months Ended
May 31,
 
    2018 2017
(Restated)
  2018 2017
(Restated)
 
  Revenues (gross billings of $60.2m and $27.5 m less worksite employee payroll cost of $50.8m and $22.8m, respectively for the three months ended; gross billings of $149.0m and $93.3m less worksite employee payroll cost of $125.2m and $77.5m, respectively for nine months ended) $ 9,375,492     $ 4,628,361       $ 23,773,871     $ 15,718,780      
  Cost of Revenues   7,825,500        3,993,291         20,099,218       12,026,816      
  Gross Profit   1,549,992       635,070         3,674,653        3,691,964      
                               
  Operating Expenses                    
  Payroll 1,382,183     1,082,675       4,005,371     2,920,150      
  Commissions 463,327     202,279       1,073,392     506,862      
  Professional fees 416,311     629,322       1,417,554     1,081,915      
  Product development -     658,334       2,386,354     658,334      
  General and administrative 1,105,490     1,015,075       2,669,401     2,059,571      
  Total Operating Expenses 3,367,311     3,587,685       11,552,072     7,226,832      
  Net Loss $ (1,817,319 )   $ (2,952,615 )     $ (7,877,419 )   $ (3,534,868 )    
               
  Net Loss per common share available to Common Shareholders:            
  Basic and Diluted $ (0.06 )   $ (0.11 )     $ (0.27 )   $ (0.13 )    
  Weighted Average Number of Common Shares Used in Per Share Computations:                                    
  Basic and Diluted 28,800,675     26,555,706       28,795,145     26,337,976      

 

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