Earnings call transcript Q2 2023

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Operator

Greetings, and welcome to Park City Group Fiscal Second Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Jeff Stanlis with FNK IR. Mr. begin. may you Stanlis,

Jeff Stanlis

Fields, and for everyone. second Park Hosting Park are conference operator, CEO; Chairman joining John and quarter you us call. Merrill, Randy today call today City Group's the City good you, Group's Thank and CFO. afternoon, City for earning Park Thank Group's fiscal

Reform forward-looking of would City Group Park I begin, everyone the we about Securities to remind XXXX. that the statements meaning Act this Before like call Private Litigation could of contain within

that subject not statements facts. historical on statements beliefs forward-looking are Such statements Forward-looking are current to based are and expectations.

Group subject obligation press Relations does company's set not financial to to light market should be today's are press remarks in fully Park Group the the the this contained discuss Exchange with and Investor will of City risks can could forth today, herein such the company call. website at in conference and are information filings uncertainties company's over of results which access after The in actual City discussed Such assume release. Shortly considered on Investors release the risks visit Park materially. this risks. call. differ any update that we Securities information to the issued section viewing a closed parkcitygroup.com results the Commission.

Merrill. that said, call the John, is John the turn yours. to all With over I would to now call like

John Merrill

Thanks, Jeff, everyone. and afternoon, good

the be in to Our continues numbers. evolution to SaaS a evident company

Our operational the capital and ever business results reflect to now is allocation easier our ongoing than both before and strategies. model,

per increased up of common XX% to an December GAAP million. to the increased share the XX,XXX share bank. quarter. was net income increased million. and per $XX.X share XX% in XX% price shares $X.XX the XX% XX% for operations Earnings to Recurring debt X%. income into bank we at X%. net common revenue revenue over reduced Total numbers. to from average $X.X our per bought share, million. And increased right GAAP $X.XX by Jumping Total $X.X increased cash shareholders $X.XX share. expenses have to were $X.X per year-over-year cash Year-to-date X% back million from up

With the I have possibility demand periods. comparative services, there said a majority to it our less will behind results prior versus far fully subscription. in will revenue Nonetheless, always us, our noise than customer onetime meaning rent, have that of now as buy meaning license, before, a be

recurring less profitability we expected, the continue is cash Fortunately, XXXX. likelihood rate, now to our given cycle. fiscal in SaaS accelerating. is to that deliver before, revenue are year-over-year life expect increased of ever generation growth, The as margins, growth where Therefore, balance we for accelerated significant than and

profitability cash our with revenue. Simultaneously, times on leverage, flow strategy, as flow. many line faster incremental while we've operating and said, our will is keeping revenue, grow to Consistent than costs profitability cash to and difficult making and driving decisions continue our high-margin and in focus drive

fiscal the year-to-date What signed do exit in revenue. an that? meaning $XX.X by annual December rate recurring ended quarter of revenue Starting billing hand We year I fiscal quarter growth. mean with of balance million, the revenue with contracts or plus XXXX, for absent six, will new million XXXX, anticipated monthly recurring are revenue $XX.X XX, December at generate that of multiply any in contracts times

and revenue high initiatives or we customer projected low including resource expanding or business retailers with to any traceability XXX. locations existing upside. from revenue what adding trading due stores services, is contribution revenue any to organic mind Like and in growth, commitment This existing from does adding compliance FSMA chain and this continue or supply MarketPlace, meaning not we non-core did new a Keep suppliers with deemphasize or revenue lines. include partners

and history is high-touch requirements XXX FSMA the same retailers beauty retailers company's this? focus. the general propane have by suppliers their as Therefore mean I food and and the do suppliers floral largest in health food the What is the merchandise and opportunity suppliers.

these opportunity new the if non-food rules. vendors long-term any underneath XXX However, traceability have revenue little

per short revenue the almost for must we annum onboarding industry $XXX,XXX free With twice new thousands prepare make internal to of difficult term employee thousands food to upon average, traceability in per resources up suppliers. decisions

before, Many $XX place. management. Expense in have it to cash say me you run heard of million approximately this it takes

stock compensation excludes accounting Our depreciation, other costs accounting non-cash bad debt non-cash spend annual as costs. expense cash amortization, such and expense,

a have said revenue our $X.XX bottom roughly dollar push million as each a leverage expense year, of or Traceability increases on fixed in or minimis spending to focus line. SG&A is operating the have on there goal over result cost per precisely de is above we to ReposiTrak the before, incremental in As $XX cash $X.XX Network strategy. investment going laser With ongoing RTN and forward our our of been our to

can productivity Despite excellent tools. utilizing other exceptional own costs. recurring and drives or We growing proprietary were our take we controls as spending, to automating we as of able overhead without our entire customers headcount across accomplished our significant This on this revenue by care business. tight much adding

need profitability jeopardize superb customer for will goal, service. the execution is While never our flawless it and

are one. customers Our priority

in are to However, it position looks favorable both. like a we provide

than grow and profit faster cash result a As revenue. will

increase million the quarter, revenue December for can this a translated a operations. earnings the cash GAAP increase in see XX% X% to second from and in in You total quarter during $X.X

structurally through five profitable profitability we consecutive global with of weak model well years to are cycles more GAAP easy a cycles than and as as strong summarize, To pandemic.

accelerate drive increase and recurring grow shares remains cash. revenue, EPS, strategy costs, Our very income, control net back buy simple;

$X.X of revenue quarter. quarterly Recurring the year the XX% year. over period quarter in same the Recurring of quarter $X.X same percentage the Fiscal quarter XX.X% in last revenue the million, from XXXX. was million XXXX grew as revenue numbers. second up revenue a to fiscal was X% for Turning total

I mostly it streams headwind high As recurring call up sit a revenue I period. outside food for for This serves traceability revenue, prepared revenue the but FDA's low our mentioned, standards, resources still the we in revenue limited and for revenue the also opportunity meeting frees we have both $XXX,XXX touch that To and revenue as date non-core increasing continue food eliminating what have modest total to growth. industry growth potential. while streamline overcome smaller

operating salaries, pressures approximately benefits. essentially market expenses X% in were increased service was on fees XXXX. approximately X% marketing QX Total RTN, QX expenses [ph] from in Sales to costs $X.X a reflecting software $X.X and million were tight million and G&A inflation investments impact on and recruitment up operating and up X% and its in expenses labor XXXX Sequentially flat.

fiscal net of was $XXX,XXX now income or revenue. million GAAP XX% of above of revenue the quarter margins $X.XX XXXX, the are versus Net second XX% For or XX% norm.

or XX.X per average common million average million on based million $X.X shares were shares. shareholders common to share weighted share versus $XXX,XXX or weighted XX.X common income on $X.XX based $X.XX Net per

million XX, December of common of stock were XX.X XXXX, As shares company's outstanding. the

You'll reduced and our X% since repurchase retirement began. note shares stock we have plan capitalization buyback through of by our over the

Turning to numbers. year-to-date fiscal the

to revenue period months the period in grew December X% For the X% $X.X XXXX, from million the to same million XXXX. ended fiscal [ph] six XX, same $X.X $X.X Recurring for $X total of increased million from [ph] million. revenue

revenue I high-touch over low Our earlier. in revenue opportunity growth mentioned the includes $XXX,XXX which streamlining of

Income with expenses an million, million from XXXX. compared to operations period RTN increased to from largely our same $X.X XX% Total increased of operating investment due X%, the when $X.X increase of in network. fiscal the

per XX%. margin of While the million fiscal EPS months six gross increase and million, common to common grew grew X% of over grew total income revenue from $X.X in per an net share. first XX% XX% $X.XX $X.XX XXXX, to was $X.X share from

Turning compared of $XX.X of at line on million The million quarter, we line on credit end $X.X to million $XXX,XXX paydown approximately Subsequent as line million XXXX. to XXXX to off credit XXXX XX, carried credit. Therefore, during bank is paid inclusive company its of and fully to the the December of December of flow zero $XX.X cash of The debt. this $X.X balances. Total the at XX, compared of have a quarter. cash XX million now XXXX. the June cash June on as was we revolving XX, today, of revolving $XX.X

zero off sense again made that bank Giving debt. only interest pay it say reduce debt. rates, me our to and Let rising

since company generated we $X has $XX.X million million since million shares has million Since year, by year-to-date, reducing retiring total total average shares, an remaining at from of operations of approximately of increase worth buyback of a repurchased on the of company compared to an In X%. total $XX cash the stock inception program, second price XXXX. of a repurchased for XX,XXX of X% $X.XX approximately $XX.X buyback Fiscal million the million last X.XX capitalization the $X.X authorization we hence The $XXX,XXX. inception. quarter,

way long a come has short business a our view, time. my In in very

implementing achieve our have operating our We is focus on to capital and strategy allocation right the much by more decision. leverage

business model. is to Now more than easy ever before our

no have very We growth. double-digit revenue, margins EPS growing customer and little churn, XX-plus recurring percent meaningful concentration, gross

have balance in sheet is debt We capitalization. the the in a cash, believes a doesn't matter million thinks what $XX John including It and fortress little shrinking proof a or numbers.

XX, a XX end strategy on additional the call, of our fiscal communicated $X.XX the Board our quarterly December June last and within annual $X.XXX XX. I first our of We in be paid Subsequent an dividends capital form dividend quarter's XX at to dividend, March XX, second quarterly. As in paid paid will quarter. lever allocation the the added has September days

back have operations shareholders. in or said of buying it EPS cash we take from for goal half a to to the previously, all and the As hence form annual return generated our increasing shareholders dividend, shares additional is

half fund other like goes The initiatives use or traceability. bank in the to

allocation down the outlined to retiring adjust to shareholders is cash to levels, buybacks, on portion and capital our other levers have allocation may that favorable shares meaningful including M&A shareholders returning capital its to different Board considering our allocate capital free based it Therefore will flow preferred plan. ongoing opportunities, whichever a dividend, goal previously at the lever time-to-time, and in I more is paying evaluate and our From the the of debt strategy time.

for I At point, this the have I today. all over pass to Randy. everyone Randy? That's will Thanks call time. your

Randy Fields

As recurring consolidated exceeding a in and non-core top and the company our even operating line John are growth, revenue. delivered with revenue cash SaaS We solid mentioned, and in of X% to of significant XX% transactional our generation. deemphasize as leverage we view transition of benefits growth revenue growth our evident the form now

exceeded grew line to earnings even our faster exactly More EPS our importantly easy and obvious, revenue our inherent is and City's model. yet now plan. Park growth sustainable our bottom improvement significantly power

Our fair causing are concerns necessary our everyone economic headwind, it's not expenditures. rate comes even growth accelerated are question to challenges. a to think, say. customers or Recessionary these And immune I amidst global to discretionary

So far this us. a minor had has only on effect

any include numbers, of through but not from not does also traceability are some our of selective cost rate sunsetting the include growth limited. the traceability, The but our is the our contribution revenue. opportunity in impact in uptick the Importantly, does of engagement the

strategically we're been revenue before, internal our saying than said margin engagements, deemphasizing decisions non-core is resources food profile we've opportunity the for where coming up that We these smaller revenue ultimate lower As traceability or is to limited focus. fast. prepare the make initiative. free And higher meaning I've is the where opportunity to touch as

In fact, faster than we certainly it's coming expected.

from In in Because have versus interest is helpful. we did slow to win, execute new we've this our our the that time in adoption which be believe top interest. is Why? actually view, requirement. style the adoption my line unprepared moving react. time belief ways not and A we anybody's to always is contrary the allow original frankly expected said In this industry in giving woefully to which FDA's would for a than tempered to down rollout, litigation previously We would industry flawlessly, we target that is us the fast the done extending faster expect. many

be not but was about regulation, on customers of was this line enormous simply the how their time the pandemic. for the and surprisingly the everyone's low. traceability of aware initiative are to Awareness many Perhaps going businesses. business economy, is traceability is disruptive the impact it it Perhaps

a fact, educating efforts it. about customers We're actually deal In eyes. our involves challenging. opening great It's of early

the You have to headlights. think during

mean wholesaler decade. with Keep customers they're systems needs the compliant in needed satisfy the rule rule the certainly fact in internally. call technical Labeling, XXX suppliers compliance or and approaches they're believe however customers, Once retailer any compliant. like system its and labeling has associated regulation actually Many breaks bar the down. they to we XXX the of only a don't to with all contain don't ship in the would their the mind blockchains They're been be more other products comply new codes, and than information what compliant. or that already to works for

individual in doesn't isolation, work for for fact an customers may work What the that in business business. of necessarily

to entire information traceability the it. the and the around. just to at needs data and an doesn't all move In around having not but fact connected correct around be products information One move chain for work supply in participant chain more do item importantly

Well, a without each of every XX and customers to What of suppliers us hundreds of different system wholesaler medium-sized of million of in enough. costly. bringing thousands different with a records That's those do have by SKUs to will retailer I of from dozens work mean that? modify labeling labeling each correctly designs and it's and that create his suppliers. their cases We estimate can't hard And year. protocols, need millions about

the inherent hire and X% low. he large thinking chain dozens about his retailer, error be would That wants down And of particular or to issues either no anyone with be a inaccurate goes to We're And that is hundreds rate. or this frankly and problem. payroll X% have, employees that in hundreds chain that or know supply them humans I wholesaler about talking chase have and thousands of error of them. machine don't could corrected. this No to errors along abnormally a suppose one rate literally But data. requires that

The and to extreme automation. error industry end-to-end We will that the includes already our insist ability provide correction. that do on

use this model our suppliers large a like mandated Just solution be will or that a their retailer where compliance requires wholesaler comply. with

wholesalers, we In have each for few retailer signed to be a and products. you'd later need have to very, retailers that wholesaler where I already suppliers. wholesaler we XXX few Tier a think about a cover that very network large traceability. both or for and on hundred recently affected feel We've good management signed our And we their X will retailer to and Typically, compliance suppliers short, say are.

has longer-term years. This onboarding similar and going more and and after an ago in set challenge. time to we This with is process take of much that and and complex it's is freeing traceability. a compliance up operating complex is dedicating be government many all six resources or we're several only more certainly will five larger, end suppliers compressed a line. The to years opportunities This thousands date, it's of why very the ramp time, saw to

be Our customers, let's still retailer by us exploding XXXX. needs XXXX calendar, or just much the in the and large wholesaler, XXXX to ramp say, that expect automate as at first, We will as through we onboarding slow accelerating do.

solution labor required technical implement know, touch, the data and the it exchange and that end do, We to unique, data. approach a It's enables having the Our of no user Think make offer system. all low-cost of without other readable or it's universal above no right change translator. solutions individual any any recipient don't I key. to is as, of a the

So the planet food how think with positioned we network of Earth. largest companies we connected to you already on are think well therefore, about, have

or margins. RTN, revenue our our growing With will setup ultimately, bit trials revenue, the allow we're traceability a but respect Network, ReposiTrak to as a generate to recurring There's traceability start of Traceability delay a speak. with and seeing of significant naturally, to with going we revenue number of for typical

traceability. our business great a Importantly, to compliance becomes catalyst

we RTN. As have could of use today, that the facilities nearly XX,XXX

as too. affected While remember industry, than XXX. million X stores, and will million will Rule please impacts by There's businesses, that that more be Rule restaurants be as on X.X our focus grocery important, maybe many XXX the convenience others, do

businesses than grocery stores, X cetera. restaurants, service, food convenience million more including affected, me that Let stores, say et again,

We're manage than dollars, growing So here consider more are. of a we be revenue cash covers recurring generation what to we machine. cost our grow structural and expenses. continuing our millions cash enabling Recurring revenue by to

share. our ongoing share capitalization obviously Our our earnings accelerates and program repurchase shrinks per

business than Operational we built nearly we $XXX,XXX generate even thousands revenue efficiency to of The We think prepare without do increasing headcount. we years real traceability consecutive of to yes, to expect continue and double is to going onboard GAAP, than that as of actually our we seen, get We that you've do. GAAP look typical per generation gap the efficiency to As significantly is employee to larger, consistent of everything with our revenue comparison cash providers. employee. much impact good. other really that And and we a our a That's think more profitability. really, per customers, SaaS is of have will profitability central five more year the how widening peers. we

We a than balance fortress current million a of sheet, build X.X:X. we'll ratio of to with and continue $XX and maintain more cash

Our we're is scale. business positioned to and model, easy efficient, to

ongoing forward, traceability our going component customers. many the our great happy our continue our to initiative to customers, help. care will of first, So existing that will take be strategy to, traceability position customers, of our of is need A in major

reason. based focus, principle, not for will bedrock everything. remember, We jeopardize It's above trust. This our that any consumer is stands on

maintain we as XX% five our recurring to of stay CAGR Traceability years. over Second, to has our and the a the long push higher XX% But number will still that few pace last run. a over been we're of long top XX% at goal bit growing with run, way, growth years. in goal. the over the revenue a the next that going line year the By revenue

our development incremental drive tools, real our our to becomes cash XX% so Third, earnings. we're internal to continue XX% going that revenue of continued to internal with productivity of

shares of net faster faster should and by paying revenue dividend. per growth. outstanding, to And both buying shareholders will cash and shrink capital result even growth and down a return earnings fourth, income pay be growth, shares The to faster yet therefore number share we debt back the finally, continue

but We have position a our Much today more lot what we of work I'm go proud of and lot to to do, of a to far. come. things so achieved

So to with questions. that, for call the I'd Operator? open like

Operator

you. Thank

session. be We will is with the first Please [Operator Davidson. line a from ahead. question go conducting now Tom Instructions] question-and-answer Forte of Our D.A.

Tom Forte

Great.

So great is go contribution non-food questions. know, I call a general. customers great I one the the margin good suspect in at Randy three just given at even quarter. it John I structure I'll like of first and you have length, margin really but discussed time. it off, your

help of an an So understand and it's customer or me a from why instead can standpoint? you

Randy Fields

sorry. I'm usually questions, do three which memory. you Okay. I all thought, challenges my

So one thank that in doing a the the time. the day, at customer business the from customers the touch at by the you is for off the more of There what are do end is. us, which for with they our of way where more extension can intense reality is company we better our focus are

that, are the of true at perspective And pieces some enough have business there moment profitable, so growth. that absolutely it's although are don't they our our from

think in and level rowboat, all as the would So we probably rowboat, a of a passengers like. care of them of at – We too take it's bad a as we many a metaphor. have think this it of we way to on that

$XXX that $X,XXX the one of could our we that up handle resource, for sits at going around may spending off we all of our the have potential better them maybe much $XXX that even the that – structure that, have substituting to no customers us services. $XXX says to management humans be that a all. of focus it as for So And our they a that a when business, as to The month resource takes people, human pay I'm customer number $XXX, in that are month. the number make growth

we customer our that can that always a the well. believe as has opportunity, So, And goal the set it we fact best is matter ethically -- as to believe we haven't not ultimate communicated just the and opportunity. the we current of I best is think have but

of we been of to talk has Meaning fundamental even a people like ever deer ill-prepared is they're we an that enormous the case, when lifting headlights transformation like by directed Nothing is an our that prospects to heavy this and in customers. our and the realize supply do. thing, this Traceability and the in has what mentioned we amount educational chain. entity industry is that the And this industry government.

an is terms you is food-related chain know Let works you me Today, about responsible Every how supply give word. in Back, to supply One just chain called example. One activity, to of the change. that and the aspect operative Forward of for -- what's meaning that's need the

your sent You your you from you who to need need you and product product got to know who to. know

is The said operative word as the word I no.

you produce you. So, supplier this say, a is for there's back to it make and example, product -- I'll if come Okay. Where trace allowed this problem, wholesaler from? hey world, today's that on a from if a doing sends to you're up, They're that this. a I retailer got call did

So, in base that knowledge issue. other words an you simply that have to as identify you have let would a

mean of the means world with that to That new it product. of the on along you the information product. the doesn't contemporaneously product, Under traceability, the have send package with

So, this look customers to or communicate and communicate to with of whatever all going at able you labeling information. to use you different system have be your have whom to systems, we're your

read it. going not to able to be They're

figure a my in single every to have where customers. how you're world you with fundamentally So, I out one different communicate of do

turn difficult. makes FDA It a create to identifies that in person when them, information want passed unimaginably a customers to do says they a record-keeping the trivial, the may sortable technical to it that it's Your it's system, for spreadsheet. readable which have is and I FDA that we if were sound

minutes. in a product Today, a check it pallet receive center of for example, distribution can a and or truckload in

drop stack no come know off floor, pallets or and problem. there's the -- on DC them. take there's by covered the SKUs cases in XX,XXX don't go a now I Well, Just of XX,XXX that XXX. the them the truck, Many Rule

pallets find on every are by XXX. which covered and down out products Rule pallet, and every which potentially to Now, have pallet each you'd to have break that check cases each

say, you identification else, layer a let's if to maybe pallet you've there well get They're codes So, a tomatoes the not not a cartons produce layer covered. the were and for in onions. the on something is, of of of to example, tomatoes, shipped got

difficulty different. fundamentally is of logistical the The supply chain

prepared it. We handle are to

sorry, it able you in a way are this? that's We tell non-invasive about can I'm excited to I'm pretty do non-intrusive. and

uniquely I time. intense positioned industry transform was think, one that need to help focus. do we're where much the from it a absolutely over But focus intense to safer to we

that you're of keep you same don't customers business. the If the diluting that future with have you, focus base and knowledge

keep We when kind entire I'm up to that you winded. like long-term to a our management was long on not want super employee. fit. lean. per are customers follow a that focused business that sorry good be the We revenue you end having And of mantra

probably two questions. You've other forgotten your

Tom Forte

turning because its second I if haven't the All on right. I'm one No, head.

your XX% comments on support you're sounds to and than like headcount Randy, based confident growth. John So revenue the it cost you structure greater have and

revenue confident said just you're help understand can that support growth? than you everything XX% me you given So greater why Randy

Randy Fields

And the five over run, the to XX% the XX% is even in means I more in last -- a here's as will XX% the we're our long long in somewhere means, know hell has revenue few recurring convinced certainly mentioned years. In fall I growth still it don't but Well the years. than run Okay. grown range. answer what the CAGR the long run,

it we've X. be So over will higher done last the than

years in few of will XX%. us a have of that north as ahead kicks be think this I we

why. me Let explain

that in January set. current Rule will $XX of we covered on existing our to has if have customer are network a year XXXX. our is be of a time facilities by by we XX,XXX It suppliers within to happen XXX million this. line revenue that about There's currently If likely you people touch

Okay.

market. all So are other of end what we to think be are to up this So around when shouldn't we call that it doing not traceability. begin of words currently in Why customers tack on I'm plus those us? share our going something it fair others is going to

to that in next and of obviously have customers -- like could XX% rate years And bracket. do we given next cost few excess that growth few given this lowest they're the years to XX the the years the lead it to already not over opportunity ability XX% that a seems over

So doubt but numbers. top into the that it to to few It end or that's starts the a over growth I two rate. bigger for XX-year take will years, XX-year compound

people second puts do We board part does people the our the do you is of It thinning stuff of have to which headcount most We on question. in hell require sure do to do our on today non-core -- that problem that non-go-forward have But experienced that. the business. our some customers the an want that. what of as operating

what number have we these know kind We this. do help available, got spokes. not to just find two, people. of we yet. five many clear done, to of It's just until over point to will XX adding some And we've them out resource, the implementations be us meaning perhaps or this bring don't at next have year, hubs We've that

have of year people not year, thousands, plan our implementation our to suspect people be on tell and few the you will it's a be of sales it side is on So will of other your it I business, a our the side question. to I be that few more and areas. candid continue and good not dozens business, a hundreds add to per to was answer, I or a in hope but

Tom Forte

right. All

more All So, now. now got right. I've two

your thoughts generation, sorry flow sheet give M&A? can your So, with of your fortress you a current cash balance on and of fortress, free --

Randy Fields

John, on and want about you it to comment I do M&A, you talk since a lot...

John Merrill

traceability. we're I mean look, off, we laser-focused -- are on first

I our supply to good think right get now, have a I of chain, we from bolt-ons compliance time time. and approached But the relationship. that So banking think on we to source focus traceability,

We of credit. have lines

equity available. should We And have obviously, buying that something come our if so down have we cash available. we're shares, also

little from on XX or our view, the might negotiation. I distraction, on have is not part fund is we're that levers than something number focus. of that. occur. our years focus our not arsenal traceability, Though of something look we a I the side, our that walk might earnings it's for that quiver, Randy. opportunity valued XX now, is about, on not give going times, if focus think really now, that sunsetting comes to an of was traceability. or But But products from certain overly We're ability our right in it's to unless been But have last acquisition access we if life ultimately number the to a that can that may again, compelling, right have shorter just

Tom Forte

right. shorter. a Yes. lot Yes, All

last is question is -- so asking, question to because So, me, clear not. usually this it's I'm

impacting isn't how it current sales. environment is me, negatively to your clear the So,

For talked in past, nature. time some challenging have how degree, in is have still things a customer that the you you environment I a distracted to example, macroeconomic you've understand of the the fair not inflation. and sales you how environment, like, of the all. simple are in But profits amount at explain impacted by current maybe is terms currently the negatively can you answer being

Randy Fields

our What between lay to since somewhere the down It's I'm this when just talk to I will much. their recession, good customers. long-winded. that's they to be suspect it wary, in good inflation, Bring slow what's to we practice. to is, change. keep tend talk food business. of it's Well, causing making, and and of industry that decision a become over do seems their come doing your down of really very futon they people is in today, wary and talk that and to the When not prospects, all talking. at And all, I'll be I'll second, not happening

they as January Now, a having is, believe say says date push participants we get it. ready we chain whole and back. there closer It supply supply around begins market that the world said date be there it's traceability. was to up. that now don't because really genuinely But, to food final and you And wake a the Hopefully, get that wake of will that the -- hope, can global We date that, will I panic. what XXXX. for is the when up, mean, in market,

done frenzy So chains this year my see here's to he it's what the And got panic. execute." year. And going in hallmarks was we'll up he smallest are it's the Shawn of FSMA probably this This wake about relatively business difficult aware it's said a pushed by direct The extraordinary. very to very XXXX attorney to up And have time of to guess pace a is next yet. just shark aren't XXX to will "There's the even fact, when of In enough end. feeding is quote. get get well-known pick food talking this end. largest sign-up. the to The a I Rule why they going said People Stevens. time a When slow enough all be that's don't the and toward chains

recession. So worried Right about they'll now up. wake they're

Tom Forte

John, you, taking right. All you, for Randy thank questions. Thank my

John Merrill

Of course.

Randy Fields

Thanks, Tom.

John Merrill

So Randy, questions? maybe any other

Jeff Stanlis

remarks. the give to say going to operator can I was you say I closing

Operator

Okay. to this There comments. are no further over back for time. like at I floor closing turn would Randy questions to the

Randy Fields

comfortable very is questions Great. opportunity Thank where of We're you, operator. answered. are, front of amount an appreciate we you got Hopefully, your there you, you. obviously in Thank us. enormous we but Everybody, John.

be pretty we're geared and we a will it adventure. are exciting this So and ready climbing

your seatbelts. a Talk lot. soon. So to Thanks all fasten you

John Merrill

Bye-bye. you. Thank

Operator

teleconference. Thank you. today's This concludes

You may disconnect your time. Thank lines your participation. you for at this

ReposiTrak (TRAK) 14 Feb 232023 Q2 Earnings call transcript