Good day, and welcome to the Park City Group Fourth Quarter 2015 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to David Mossberg, Investor Relations for Park City Group. Please go ahead, sir.

Thank you, Angela. I want to remind everybody, before we begin, we will be referring to today's earnings release, which can be downloaded from the investor relations page of the company's Web site, at parkcitygroup.com. Also, this conference call could contain forward-looking statements about Park City Group within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical fact. Such forward-looking statements are based upon the current belief and expectation of Park City Group's management and are subject to risks and uncertainties, which could cause actual result to differ from the forward-looking statements. Such risks are more fully discussed in the company's filings with the Securities and Exchange Commission. The information set forth herein should be considered in light of such risks. Park City Group does not assume any obligation to update the information contained in this conference call. Throughout today's conference call, we may be referring to both GAAP and non-GAAP financial results, including the terms free cash flow, EBITDA, adjusted EBITDA, net debt, net income and loss, and earnings per share, which are non-GAAP terms. We believe these non-GAAP terms are a useful financial measure for our company primarily because of the significant non-cash charges in our operating statement. There is a reconciliation of non-GAAP results in the earnings release and on the Investor Relations section of our website. Our speakers today will be Randy Fields, Park City Group's Chairman and CEO; and Ed Clissold, Park City Group's CFO. Ed?

Thanks, Dave. Good afternoon everyone, and thank you for joining us on the call today. My remarks will cover our consolidated operating results for our fiscal fourth quarter and year ended June 30. I will also comment on certain cash flow and balance sheet items, and then I'll turn the call over to Randy for his comments. I will begin my comments by discussing revenue trends. We achieved record annual revenue growth for fiscal 2015, with fiscal fourth quarter's total revenue growing 13%, and a 14% increase for the full year. Importantly, fourth quarter subscription revenue grew 18%, to $2.9 million, driving a 16% increase for the full year. And it's worth noting, because we are accounting for ReposiTrak on an unconsolidated basis in our fiscal 2015 result, the main driver of this growth was an acceleration in our supply chain subscription services, which grew 22% in the fourth quarter, as we suggested it would, resulting in a 19% increase for the full year. Looking forward to fiscal 2016, we expect overall revenue growth to continue to accelerate. Moreover, we expect to see sequential growth in total revenues in each of the quarters of the year. And importantly, we expect to generate even more significant year-over-year growth in pro forma revenues after accounting for the acquisition of ReposiTrak. That being said, I want to highlight some changes in how we will be thinking about revenues going forward. First, we'll be accounting for ReposiTrak on a consolidated basis going forward. As a result, we will report consolidated and pro forma comparisons for the next year. In our view, the pro forma comparisons will give better insight into the actual growth of our combined businesses. Second, we are going to end the distinction between total revenue and subscription revenue. Over the past…

Ed, thank you. Appreciate everybody taking time this afternoon. Happy new year to those of you for whom it is. Okay, I'm going to spend a few minutes talking about last year. Last year in our view was a very important year because it represented the transition from an old way of doing business. We'll think of it as the old Park City Group to the new Park City Group. Most importantly, after some number of years of doing this, we have completed the transition from a licensing company to a SaaS company. Last year, something in excess of 80% of our revenue came from software-as-a-service, and in the years that we're in, we think that number will exceed 90%. Perhaps even a little bit more than 95%. So we are a SaaS company. So the difficult transition has certainly been an interesting one. We appreciate your forbearance while we've been going through it. But obviously the benefit to our customers and to ourselves are extraordinary. Last year, we constantly focused on our customers' successes, you know that that's core to how we think about our business. And the supply chain revenue, as a result, grew 22% in the fourth quarter, and as Ed mentioned, 19% for the full year. Each of the last several years we've wanted to see the growth rate of that core business continue to accelerate, and it has, largely because we're doing for our customers what they would like done. We're helping them to sell more, stock less, and see everything. Second accomplishment last year, really, was taking ReposiTrak beyond what you would call a proof of concept. Awareness has been building steadily over the year. We're adding new hubs, we're adding new wholesalers. Now, we're starting to focus on retailers. And from what we…

Angela, can you…

[Operator Instructions] And we will take a question from Steve Bell, Private Investor.

Great quarter, Randy.

Thanks.

I hear you mentioned -- are you seeing any competition out there yet, I mean I know we have not seen anything forever. Is there anything looking that way?

Well, we always have -- look, there is a million -- I want to be careful how I say this. There is never one way to do something, right? There is always multiple ways, and therefore there are multiple ways to do the different things that we do. In our supply chain business there's hundreds of competitors. I don't know of anybody that does what we do end-to-end, and that's part of our value.

And there's nobody out there that's agnostic as to hardware or software, like you are, right?

Right, exactly. Yes, there's people who install software -- I mean, I think we have almost everything that's attractive to select us, including our pricing, frankly. So we rarely lose in either business to somebody that you would say is a competitor. I do believe, however, and I think we should keep our eye on this, that our biggest competitor on the food safety side are going to be people, companies, retailers, wholesalers doing this themselves. And at the beginning of a service, people always think, oh, I can do this. And honestly, it's not good for the industry, because if 50 retailers develop their own systems, here's the problem, it means suppliers have to conform to 50 different systems. That puts…

Reminds me of [indiscernible] and WWRE and UCC Net, and all of that, years ago.

Exactly, and what does, Steve, I know you all know…

Oh, is there any of those surviving? I mean, there is GS1, but -- and that will work out very well for them.

Yes. There are several standards organizations, but the more things there are, like around food safety as we do it, the more cost it imposes on the supply chain. So as we found with one of our key services years ago, it was very interesting. Several retailers thought they could do it on their own. And one-by-one, the people who were doing it on their own turned it over to us. Because remember, our economic proposition to a retailer is we absolutely can do this kind of stuff cheaper than they can. And because with the broad-based platform, we already have a significant percentage of their supply chain on the system, why wouldn't they? So our biggest competitor going forward will be people doing it themselves, our internal word for it is, roll-your-own. So there will be a roll-your-own competitor out there. But we are in such a good position with the endorsements we have, with the technology we have, with the team we have, with the pricing we have. Honestly, we are in such a good position. If we screw this up, it's us. A competitor isn't going to hurt us. We will hurt ourselves, which is why we are so fixated on helping our customers to be successful with any of our technology. That's our risk, is screwing that part up. Good question.

Okay, thank you, Randy. I'll step aside, and let somebody else ask a question.

Thanks, Steve.

And seeing that we have no other questions at this time, ladies and gentlemen, I will now go ahead and conclude today's conference. We thank you for your participation. And you may now disconnect.