SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of report (Date of earliest event reported): March 16, 2015

PAR Technology Corporation
(Exact name of registrant as specified in its charter)
 
Delaware
1-09720
16-1434688
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)

PAR Technology Park, 8383 Seneca Turnpike, New Hartford, New York 13413-4991
(Address of Principal Executive Offices) (Zip Code)

Registrant's telephone number, including area code: (315) 738-0600
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item2.02 Results of Operations and Financial Condition.

(a) The information, including Exhibits attached hereto, in this Current Report is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities and Exchange Act of 1934, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing.

(b) On March 16, 2015, PAR Technology Corporation issued a press release announcing its results of operations for the quarterly period ending December 31, 2014. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
 
99.1 Press Release dated March 16, 2015.

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 
PAR TECHNOLOGY CORPORATION
 
(Registrant)
 
Date:  March 16, 2015
/s/Steven M. Malone
 
Steven M. Malone
 
Vice President, Controller and
Chief Accounting Officer

EXHIBIT INDEX

Exhibit Number
Description
                                                     
 
99.1
Press Release dated March 16, 2015
 
 


Exhibit 99.1
Press Release dated March 16, 2015
 
FOR RELEASE:
NEW HARTFORD, NY, March 16, 2015
 
CONTACT:
Christopher R. Byrnes (315) 738-0600 ext. 6226
cbyrnes@partech.com,  www.partech.com
 
PAR TECHNOLOGY CORPORATION ANNOUNCES

2014 FOURTH QUARTER RESULTS

Revenue increased 6.2% to $63.4 million.
 
New Hartford, NY- March 16, 2015 -- 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
  
   
Reported
basis
(GAAP)
    
Adjustments
    
Comparable
basis
(Non-GAAP)
    
Reported
basis
(GAAP)
    
Adjustments
    
Comparable
basis
(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
  
   
Reported
basis
(GAAP)
    
Adjustments
    
Comparable
basis
(Non-GAAP)
    
Reported
basis
(GAAP)
    
Adjustments
    
Comparable
basis
(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.
 
 
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