Revenue increased 6.2% to $63.4
million
PAR Technology Corporation (NYSE:PAR) a leading provider of
hospitality/retail management systems and Government contract
services today announced results for the fourth quarter and year
ended December 31, 2014.
Summary of Fiscal 2014 Fourth Quarter and Year End Financial
Results
- Revenue increased 6.2% to $63.4
million, compared to $59.7 million in the fourth quarter of
2013.
- Adjusted (non-GAAP) net-income from
continuing operations was $776,000, or $0.05 per diluted share,
compared to adjusted (non-GAAP) income from continuing operations
of $414,000, or $0.03 per diluted share, in the same period last
year.
- GAAP net loss in the fourth quarter of
fiscal 2014 was $(2.0) million, or $(0.13) per share, compared to
net income of $245,000, or $0.02 per diluted share for the same
period in 2013.
- Fiscal year 2014 revenue of $233.6M
compared to $241.4 million reported in 2013
- Adjusted (non-GAAP) net income from
continuing operations was $83,000 and $0.01 per diluted share
compared to adjusted (non-GAAP) net income from continuing
operations of $1.5 million or $0.10 per diluted share for 2013
- GAAP net loss from continuing
operations of ($3.7 million) or ($0.24) per share for fiscal 2014,
compared to net income of $569,000 or $0.04 per diluted share
reported for fiscal 2013
A reconciliation and description of non-GAAP financial measures
to their comparable GAAP financial measures are included in the
tables following this news release.
“We are encouraged with the improved performance in the quarter,
on a non-GAAP basis, as it demonstrates the progress being made as
evidenced by the revenue growth in both our Hospitality and
Government segments. Within our Hospitality segment, we have
continued to experience success with our strategy of increasing our
revenue generated through sales to smaller chains and independent
restaurants, a strategy further facilitated by our acquisition of
Brink Software in September of last year. Partially offsetting the
revenue growth was a reduction in volume from certain large
restaurant customers resulting from the completion of technology
rollouts in prior periods. To mitigate the revenue volatility
created by our tier one customers, we are committed to our revenue
diversification strategy and are encouraged by the recent market
acceptance and adoption of our cloud technologies,” commented PAR
President & CEO Ronald J. Casciano. Furthermore, our Government
business continued to perform well resulting from an increase in
task orders on our large ISR contracts.
Casciano concluded, “Fiscal 2014 was a year of transition for
PAR as new Directors were added to our Board and several changes
were made to our management structure. We have recommitted the
Company to focus and execute upon our strategic goals to
reestablish PAR as a consistent performing technology solutions
company.”
Certain Company information in this release or statements made
by its spokespersons from time to time may contain forward-looking
statements. Any statements in this document that do not describe
historical facts are forward-looking statements. Forward-looking
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Investors are
cautioned that all forward-looking statements involve risks and
uncertainties, including without limitation, delays in new product
introduction, risks in technology development and
commercialization, risks in product development and market
acceptance of and demand for the Company’s products, risks of
downturns in economic conditions generally, and in the quick
service sector of the restaurant market specifically, risks of
intellectual property rights associated with competition and
competitive pricing pressures, risks associated with foreign sales
and high customer concentration, and other risks detailed in the
Company’s filings with the Securities and Exchange Commission.
About PAR Technology Corporation
PAR Technology Corporation's stock is traded on the New York
Stock Exchange under the symbol PAR. PAR’s Hospitality segment has
been a leading provider of restaurant and retail technology for
more than 30 years and offers technology solutions for the full
spectrum of restaurant operations, from large chain and independent
table service restaurants to international quick service chains.
This segment also provides hotel management systems with a complete
suite of powerful tools for guest management, recreation
management, and timeshare/condo management. In addition, PAR offers
the spa industry a leading management application specifically
designed to support the unique needs of the resort spa and day spa
markets, a rapidly growing hospitality market segment. PAR’s
products can be found in retailers, cinemas, cruise lines, stadiums
and food service companies. PAR’s Government Business is a leader
in providing computer-based system design, engineering and
technical services to the Department of Defense and various federal
agencies.
Visit www.partech.com for more information.
There will be a conference call at 4:30 p.m. eastern time on
March 16, 2015, during which the Company’s management will discuss
the financial results for the fourth quarter of 2014. If you would
like to participate in this conference please call
877-415-3178 approximately 10 minutes before the call is
scheduled to begin and use the PAR pass code 53117502.
Individual & Institutional Investors will have the opportunity
to listen to the conference call/event over the Internet.
Individual Investors can listen to the call by visiting PAR’s
website at www.partech.com. In case you are unable to participate
in the conference call, an automatic replay will be available on
PAR’s website until March 23, 2015 or dial 888-286-8010 and
use the Pass Code number 43490297 until March 23,
2015 as well.
PAR TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
December 31, Assets 2014 2013
Current assets: Cash and cash equivalents $ 10,167 $ 10,015
Accounts receivable-net 31,445 30,688 Inventories-net 25,922 24,465
Deferred income taxes 4,512 3,747 Other current assets 4,597
3,418 Total current assets 76,643 72,333
Property, plant and equipment - net 6,135 5,494 Deferred income
taxes 13,802 15,083 Goodwill 14,722 6,852 Intangible assets - net
22,952 15,071 Other assets 3,043 2,675
Total Assets $ 137,297 $ 117,508
Liabilities and Shareholders’ Equity Current liabilities:
Current portion of long-term debt $ 3,173 $ 166 Borrowings under
line of credit 5,000 - Accounts payable 19,667 17,200 Accrued
salaries and benefits 6,428 6,663 Accrued expenses 6,578 2,701
Customer deposits 2,345 1,071 Deferred service revenue 12,695
12,170 Income taxes payable 475 185
Total current liabilities 56,361 40,156
Long-term debt 2,566 918 Other
long-term liabilities 8,847 3,714 Total
liabilities 67,774 44,788 Commitments
and contingencies - - Shareholders’ Equity: Preferred stock, $.02
par value, 1,000,000 shares authorized - -
Common stock, $.02 par value, 29,000,000
shares authorized;17,274,708 and 17,301,925 shares issued;
15,566,599 and 15,593,816 outstanding
345 344 Capital in excess of par value 44,865 43,635 Retained
earnings 31,465 35,116 Accumulated other comprehensive loss (1,316
) (539 ) Treasury stock, at cost, 1,708,109 shares (5,836 )
(5,836 ) Total shareholders’ equity 69,523
72,720
Total Liabilities and Shareholders’
Equity $ 137,297 $ 117,508
PAR TECHNOLOGY CORPORATION CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per share
amounts)
For the three months ended For the year ended December 31,
December 31, 2014 2013 2014 2013 Net revenues:
Product $ 23,683 $ 22,001 $ 87,246 $ 90,847 Service 15,364 15,498
58,675 61,529 Contract 24,329 22,167
87,689 89,018 63,376
59,666 233,610 241,394
Costs of sales: Product 16,642 15,511 59,520 62,317 Service 9,949
10,161 40,421 43,659 Contract 22,989 20,143
82,347 82,583 49,580
45,815 182,288 188,559
Gross margin 13,796 13,851
51,322 52,835 Operating expenses:
Selling, general and administrative 9,142 9,610 37,297 37,925
Research and development 4,323 3,991 15,965 15,567 Amortization of
identifiable intangible assets 248 -
279 - 13,713
13,601 53,541 53,492 Operating
income (loss) from continuing operations 83 250 (2,219 ) (657 )
Other income (expense) net (4 ) 133 304 506 Interest expense
(73 ) (18 ) (136 ) (60 ) Income (loss) from
continuing operations before (provision) benefit for income taxes 6
365 (2,051 ) (211 ) (Provision) benefit for income taxes
(2,040 ) (120 ) (1,600 ) 780 Income
(loss) from continuing operations (2,034 ) 245 (3,651 ) 569
Discontinued operations Loss on discontinued operations (net of
tax) - - - (211 )
Net Income (loss) $ (2,034 ) $ 245 $ (3,651 ) $ 358
Basic Earnings per Share: Income (loss) from continuing operations
(0.13 ) 0.02 (0.24 ) 0.04 Loss from discontinued operations
- - - (0.01 ) Net income
(loss) $ (0.13 ) $ 0.02 $ (0.24 ) $ 0.02 Diluted
Earnings per Share: Income (loss) from continuing operations (0.13
) 0.02 (0.24 ) 0.04 Loss from discontinued operations -
- - (0.01 ) Net income
(loss) $ (0.13 ) $ 0.02 $ (0.24 ) $ 0.02 Weighted
average shares outstanding Basic 15,570 15,456
15,501 15,240 Diluted
15,570 15,530 15,501
15,273
PAR Technology
Corporation Reconciliation of GAAP to Non-GAAP Financial
Measures (in thousands, except per share data)
For the three months ended December 31, 2014
For the three months ended December 31, 2013
Reportedbasis(GAAP)
Adjustments
Comparablebasis (Non-GAAP)
Reportedbasis(GAAP)
Adjustments
Comparablebasis (Non-GAAP)
Net revenues $ 63,376 $ - $ 63,376 $ 59,666 $ - $ 59,666
Costs of sales 49,580 - 49,580
45,815 - 45,815 Gross
Margin 13,796 - 13,796 13,851 - 13,851 Operating Expenses
Selling, general and administrative 9,142 593 8,549 9,610 272 9,338
Research and development 4,323 - 4,323 3,991 - 3,991 Amortization
of identifiable intangible assets 248 248
- - - -
13,713 841 12,872 13,601 272 13,329 Operating income from
continuing operations 83 841 924 250 272 522 Other income
(expense), net (4 ) - (4 ) 133 - 133 Interest expense (73 )
- (73 ) (18 ) - (18 )
Income from continuing operations before (provision) benefit for
income taxes 6 841 847 365 272 637 (Provision) benefit for income
taxes (2,040 ) 1,969 (71 ) (120 )
(103 ) (223 ) Income (loss) from continuing
operations (2,034 ) 2,810 776
245 169 414 Loss from
discontinued operations (net of tax) - -
- - Net Income (loss) $ (2,034 )
$ 776 $ 245 $ 414 Income (loss) per diluted
share – continuing operations $ (0.13 ) $ 0.05 $ 0.02
$ 0.03 Loss per diluted share – discontinued operations $ -
$ - $ - $ - Income (loss) per diluted
share $ (0.13 ) $ 0.05 $ 0.02 $ 0.03
The Company reports its financial results in accordance with
GAAP, which refers to financial information presented in accordance
with generally accepted accounting principles in the United States.
However, non-GAAP adjusted financial measures, as defined in the
reconciliation table above, are provided herein because management
uses such measures in evaluating the results of the continuing
operations of the Company and believes this information provides
investors better insight into underlying business trends and
performance. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative for, the Company's reported
results prepared in accordance with GAAP.
The adjustments for the three months ended December 31,
primarily relate to the Company’s stock compensation expense and
other severance related charges included within the Company’s
operating expenses. During the fourth quarter of 2014, the Company
recorded severance and other related charges of $324,000,
acquisition related costs of $71,000, amortization of acquired
intangible assets of $248,000 and equity based compensation charges
of $198,000. In addition, the Company recorded income tax expense
of $1,969,000 primarily associated with the repatriation of
earnings from a foreign, wholly owned subsidiary.
During the fourth quarter of fiscal year 2013, the Company
recorded $272,000 of equity based compensation which has been
included in the table above.
PAR Technology Corporation Reconciliation of GAAP
to Non-GAAP Financial Measures (in thousands, except per share
data) For the year
ended December 31, 2014 For the year ended December 31, 2013
Reportedbasis(GAAP)
Adjustments
Comparablebasis (Non-GAAP)
Reportedbasis(GAAP)
Adjustments
Comparablebasis (Non-GAAP)
Net revenues $ 233,610 $ - $ 233,610 $ 241,394 $ - $ 241,394
Costs of sales 182,288 - 182,288
188,559 - 188,559
Gross Margin 51,322 - 51,322 52,835 - 52,835 Operating
Expenses Selling, general and administrative 37,297 1,945 35,352
37,925 1,338 36,587 Research and development 15,965 - 15,965 15,567
106 15,461 Amortization of identifiable intangible assets
279 279 - - -
- 53,541 2,224 51,317 53,492 1,444 52,048
Operating income (loss) from continuing operations (2,219 ) 2,224 5
(657 ) 1,444 787 Other income, net 304 - 304 506 - 506 Interest
expense (136 ) - (136 ) (60 ) -
(60 ) Income (loss) from continuing operations before
(provision) benefit for income taxes (2,051 ) 2,224 173 (211 )
1,444 1,233 (Provision) benefit for income taxes (1,600 )
1,510 (90 ) 780 (543 )
237 Income (loss) from continuing operations (3,651 )
3,734 83 569 901
1,470 Loss from discontinued operations (net of tax)
- - (211 ) (211 ) Net
Income (loss) $ (3,651 ) $ 83 $ 358 $ 1,259
Income (loss) per diluted share – continuing operations $ (0.24 ) $
0.01 $ 0.04 $ 0.10 Loss per diluted share –
discontinued operations $ - $ - $ (0.01 ) $ (0.01 )
Income (loss) per diluted share $ (0.24 ) $ 0.01 $ 0.02
$ 0.08
During the year ended December 31, 2014, the Company recorded
total charges of $2,224,000, which included $1,185,000 of equity
based compensation expense. The remaining $1,039,000 expense
related to severance charges of $597,000, acquisition related
expenses of $163,000 and amortization of acquired intangible assets
of $279,000. In addition, the Company recorded income tax expense
of $1,510,000 primarily associated with the repatriation of
earnings from a foreign, wholly owned subsidiary.
For the year ended December 31, 2013, the Company recorded total
charges of $1,444,000, which included equity based compensation
expense of $187,000 and other charges of $1,257,000. The other
charges of $1,257,000 were composed of $986,000 for separation
related charges and legal costs of $271,000 associated with an
intellectual property matter that was settled during 2013. The
aforementioned charges, along with an associated adjustment to the
Company’s provision for income taxes have been excluded in the
Company’s non-GAAP measures because they are considered
non-recurring in nature and are quantitatively and qualitatively
different from the Company’s core operations during any particular
period.
PAR Technology CorporationChristopher R. Byrnes, (315) 738-0600
ext. 6226cbyrnes@partech.comwww.partech.com
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