IRVINE, Calif., April 15, 2019 (GLOBE NEWSWIRE) -- ShiftPixy, Inc. (NASDAQ: PIXY), a California-based technology company that designs, manages, and sells access to a disruptive, revolutionary platform that facilitates employment in the rapidly growing Gig Economy, today announced operating results for the three months ended February 28, 2019 (“2019 Second Quarter”).

2019 Second Quarter Highlights

  • Gross billings grew 70% to $82.5 million, compared to $48.6 million for the fiscal 2018 second quarter; gross billings increased sequentially 16% from $70.9 million in the prior quarter.
  • Revenues increased 67% to $13.2 million, compared to $7.9 million for the second quarter of fiscal 2018.
  • The average number of worksite employees increased by approximately 3,110 to 9,660, compared to 6,550 for the quarter ended February 28, 2018.
  • Gross profit was $3.2 million versus $0.9 million the prior year period, and net loss per share was 1 cent versus a net loss per share of 9 cents the prior year period.

“Our strong growth continued during the quarter across key financial and operating metrics, and we’re excited about the rapid acceptance of our proprietary platform for workforce engagement and management,” stated Chief Executive Officer, Scott Absher. “Looking ahead, we anticipate that our rapidly developing technology will further enhance our service offerings and better enable us to meet the needs of our growing assigned workforce and client base as we strive to create shareholder value.”

Webcast
ShiftPixy will host a webcast at 9:00 a.m. Eastern Time on Monday, April 15, 2019, to discuss financial results for the fiscal 2019 second 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:
Amy Wang
amy.wang@shiftpixy.com
888.798.9100

Investors:
InvestorRelations@shiftpixy.com
800.475.3655

 
PART I — FINANCIAL INFORMATION 
Item 1. Condensed Consolidated Financial Statements 
 ShiftPixy, Inc. 
Condensed Consolidated Balance Sheets
  February 28,
2019
  

August 31,
2018
 
 

ASSETS 
(Unaudited)  
Current assets    
Cash $1,798,867   $1,649,783
Accounts receivable  743,580   110,931
Unbilled accounts receivable  5,170,887   6,192,631
Deposit – workers’ compensation  2,164,847   1,672,097
Prepaid expenses   314,187   563,002
Other current assets  219,590   258,901
Total current assets  10,411,958   10,447,345
      
Fixed assets, net  3,150,767   3,032,325
Deposits – workers’ compensation  3,968,435   2,201,556
Deposits and other assets  94,375   120,606
      
Total assets $  17,625,535   $15,801,832
 

LIABILITIES AND STOCKHOLDERS' DEFICIT
   
      
Current liabilities     
Accounts payable $  1,690,384  $1,246,461 
Payroll related liabilities  11,476,809   9,476,641 
Convertible note, net  4,854,933   7,156,515 
Accrued workers’ compensation costs  1,012,676   305,217 
Registration rights penalties accrual (Note 4)  -   3,500,000 
Other current liabilities  1,837,493   1,955,921 
Total current liabilities  20,872,295   23,640,755 
 

Non-current liabilities
     
Accrued workers’ compensation costs  2,009,869   900,978 
Total liabilities  22,882,164   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; 32,117,326 and 28,851,787 shares issued and outstanding, respectively  3,212   2,886 
Additional paid-in capital  23,055,582   17,233,919 
Accumulated deficit  (28,315,423)  (25,976,706)
Total stockholders' deficit  (5,256,629)  (8,739,901)
Total liabilities and stockholders’ deficit $  17,625,535   $15,801,832 


 


ShiftPixy Inc. 
Condensed Consolidated Statements of Operations 
(Unaudited)
  For the Three Months Ended
February 28,
 For the Six Months Ended
February 28,
  2019   2018   2019   2018 
Revenues (gross billings of $82.5m and $48.6m less worksite employee payroll cost of $69.4m and $40.8m, respectively for the three months ended; gross billings of $153.4m and $88.8m less worksite employee payroll cost of $129.7m and $74.4m, respectively for six months ended) $13,188,263   $7,886,459   $23,708,253   $14,398,378 
Cost of revenue    9,967,236      7,007,315     17,101,404    12,273,718 
Gross profit    3,221,027      879,144      6,606,849      2,124,660 
                
Operating expenses:               
Salaries, wages and payroll taxes  1,986,744    1,345,606    3,781,709    2,526,094 
Stock-based compensation – general and administrative  81,092    26,797    158,314    97,094 
Commissions  588,975    338,434    1,142,191    610,065 
Professional fees  895,083    508,787    1,519,128    1,001,242 
Software development  717,566    486,354    1,027,566    2,386,354 
Depreciation and amortization  191,114    57,949    378,837    75,643 
General and administrative  987,622    834,100    2,115,537    1,488,268 
Total operating expenses  5,448,196    3,598,027    10,123,282    8,184,760 
                
Operating Loss  (2,227,169)   (2,718,883)   (3,516,433)   (6,060,100)
                
Other (expense) income:               
Interest expense  (722,474)   -    (1,433,396)   - 
Settlement of registration rights penalties accrual  2,611,112    -    2,611,112    - 
Total other income  1,888,638    -    1,177,716    - 
                
Net Loss $(338,531)  $(2,718,883)  $(2,338,717)  $(6,060,100)
                
Net loss per common share,
Basic and diluted
 $(0.01)  $(0.09)  $(0.08)  $(0.21)
                
Weighted average number of common shares
Basic and diluted
  31,185,358    28,800,630    30,152,305    28,792,333