Revenues grew 5.5% to $59.6 million in the
quarter
PAR Technology Corporation (NYSE:PAR) today reported first
quarter revenues of $59.6 million, a 5.5% increase from the $56.5
million reported for the first quarter ended March 31, 2014. The
reported net loss in the quarter was $385,000 or $0.02 net loss per
share compared to net loss of $989,000 or $0.06 net loss per share
for the first quarter last year. On a non-GAAP basis, the Company’s
net income for the first quarter was $57,000 or $0.00 per diluted
share, improving from the net loss of $644,000 and $0.04 net loss
per share reported in the first quarter of 2014. A reconciliation
and description of non-GAAP financial measures to their comparable
GAAP financial measures are included in the tables following this
news release.
The Company also announced it continues to review strategic and
operational improvements involving its hospitality segment. The
Company, in an assessment of its operations and global delivery of
its restaurant technology solutions, has initiated a restructuring
to be more aligned with U.S. based operations. This reorganization
is expected to increase efficiencies and reduce operating costs. In
connection with these changes, PAR will recognize a pre-tax charge
in this year’s second fiscal quarter of approximately $500,000.
These initiatives are expected to provide ongoing annual savings of
at least $2 million. The Company will continue to make necessary
changes in its Hospitality segment to improve long-term shareholder
value through improved profitability and cash flow.
“This year is off to a solid start with increased momentum in
our business, led by growth in both our segments,” said Ronald J.
Casciano, Chief Executive Officer & President of PAR
Technology. “Our diversification strategy continues to gain
traction, evidenced by the recently announced selection of our
complete POS “Cloud” solution by Sonny’s BBQ® and the continued
strength we see in our distribution channel revenues. We are
encouraged with our performance in the quarter and we remain
focused on the efficiency and management of our operations.”
Casciano continued, “The strategic realignment we announced this
morning demonstrates the steps we continue to take as a Company to
lower our operating costs and improve our financial performance.
These actions will position us to create greater operating
leverage. The realignment better-positions our Company to sharpen
our strategic focus, optimize investments and execute on long-term
growth and profitability objectives.”
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. PAR offers technology solutions for the full
spectrum of restaurant operations, from large chain and independent
table service restaurants to international quick service chains.
PAR’s Hospitality business 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 segment.
Products from PAR also 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 10:00 a.m. eastern time on
April 30, 2015, during which the Company’s management will discuss
the financial results for the first quarter of 2015. If you would
like to participate in this conference please call
877-415-3177 approximately 10 minutes before the call is
scheduled to begin and use the PAR pass code 55286271.
Individual & Institutional Investors will have the opportunity
to listen to the conference call/event over the Internet. Investors
can listen to the call by visiting PAR’s website at
www.partech.com. In the event you are unable to participate in the
conference call, an automatic replay will be available on the World
Wide Web via www.partech.com until May 7, 2015 or dial
888-286-8010 and use the Pass
Code number 78726218 until May 7, 2015 as
well.
PAR TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
March 31, December 31,
Assets
2015 2014 Current assets: Cash and cash equivalents $ 5,968 $
10,167 Accounts receivable-net 32,383 31,445 Inventories-net 27,227
25,922 Deferred income taxes 5,689 4,512 Other current assets
5,225 4,597 Total current assets 76,492 76,643
Property, plant and equipment - net 6,070 6,135 Deferred income
taxes 11,235 11,357 Goodwill 17,167 17,167 Intangible assets - net
22,825 22,952 Other assets 3,158 3,043
Total
Assets $ 136,947 $ 137,297
Liabilities and Shareholders’
Equity
Current liabilities: Current portion of long-term debt $ 3,174 $
3,173 Borrowings under line of credit 1,227 5,000 Accounts payable
16,103 19,676 Accrued salaries and benefits 5,509 6,429 Accrued
expenses 5,536 6,578 Customer deposits 6,143 2,345 Deferred service
revenue 18,635 12,695 Income taxes payable 321 475
Total current liabilities 56,648 56,371 Long-term debt 2,548 2,566
Other long-term liabilities 8,739 8,847 Total
liabilities 67,935 67,784 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; 17,240,340 and 17,274,708
shares issued; 15,532,231 and 15,566,599 outstanding at March 31,
2014 and December 31, 2014, respectively 345 346 Capital in excess
of par value 44,994 44,854 Retained earnings 31,080 31,465
Accumulated other comprehensive loss (1,571) (1,316) Treasury
stock, at cost, 1,708,109 shares (5,836) (5,836)
Total shareholders’ equity 69,012 69,513
Total
Liabilities and Shareholders’ Equity $ 136,947 $ 137,297
PAR TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share
amounts)
For the three months endedMarch 31,
2015 2014 Net revenues: Product $ 21,686 $
18,592 Service 14,102 14,250 Contract 23,836 23,699
59,624 56,541 Costs of sales: Product 14,841 12,903
Service 9,320 9,553 Contract 22,474 22,072
46,635 44,528 Gross margin 12,989 12,013
Operating expenses: Selling, general and administrative 9,064 9,263
Research and development 4,345 3,864 Amortization of identifiable
intangible assets 249 - 13,658 13,127
Operating loss (669) (1,114) Other expense, net (229) (78) Interest
expense (86) (17) Loss before benefit from income
taxes (984) (1,209) Benefit from income taxes 599 220
Net loss $ (385) $ (989) Loss per share Basic $ (0.02) $ (0.06)
Diluted $ (0.02) $ (0.06) Weighted average shares
outstanding Basic 15,596 15,499 Diluted 15,596
15,499
PAR TECHNOLOGY CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (in
thousands, except per share data) For the three months ended
March 31, 2015 For the three months ended March 31, 2014
Reported basis (GAAP)
Adjustments Comparable basis (Non-GAAP) Reported
basis (GAAP)
Adjustments
Comparable basis (Non-GAAP) Net revenues $ 59,624 - $
59,624 $ 56,541 - $ 56,541 Costs of sales 46,635
66 46,569 44,528 -
44,528 Gross Margin 12,989 66 13,055 12,013 -
12,013 Operating Expenses Selling, general and
administrative 9,064 360 8,704 9,263 523 8,740 Research and
development 4,345 - 4,345 3,864 - 3,864
Amortization of identifiable intangible
assets
249 249 - -
- - 13,658 609 13,049 13,127 523 12,604
Operating income (loss) (669 ) 675 6 (1,114 ) 523 (591 ) Other
expense, net (229 ) - (229 ) (78 ) - (78 ) Interest expense
(86 ) 26 (60 ) (17 ) -
(17 ) Income (loss) before (provision for) benefit from
income taxes (984 ) 701 (283 ) (1,209 ) 523 (686 ) (Provision for)
benefit from income taxes 599 (259 )
340 220 (178 ) 42 Net
income (loss) $ (385 ) $ 442 $ 57 $ (989 ) $ 345
$ (644 )
Income (loss) per diluted share
$ (0.02 ) $ 0.00 $ (0.06 ) $ (0.04 )
The Company reports its financial results in accordance with
GAAP, which refers 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.
During the first quarter of 2015, the Company recorded severance
and other related charges of $181,000, of which $66,000 is included
in cost of sales and $115,000 is included in selling, general and
administrative. Also included within selling, general and
administrative is equity based compensation charges of $245,000.
Lastly, related to the acquisition of Brink, the Company recognized
amortization of acquired intangible assets of $249,000 and accreted
interest of $26,000. During the first quarter of 2014, the Company
recorded a charge of $523,000 for equity based compensation
expense. 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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