Attached files
| file | filename |
|---|---|
| 8-K - PAR TECHNOLOGY CORPORATION 8-K 7-31-2014 - PAR TECHNOLOGY CORP | form8k.htm |
|
Exhibit 99.1
|
Press Release dated July 31, 2014
|
 |
FOR RELEASE:
CONTACT:
|
New Hartford, NY, July 31, 2014
Christopher R. Byrnes (315) 738-0600 ext. 6226
cbyrnes@partech.com, www.partech.com
|
PAR TECHNOLOGY CORPORATION ANNOUNCES
2014 SECOND QUARTER RESULTS FROM CONTINUING OPERATIONS
New Hartford, NY- July 31, 2014 -- PAR Technology Corporation (NYSE: PAR) today announced results from continuing operations for the second quarter ended June 30, 2014. PAR reported revenues from continuing operations of $57.4 million and net loss of $519,000 or $0.03 loss per share. On a non-GAAP basis, the Company’s net loss from continuing operations for the second quarter was $336,000 or $0.02 loss per share. During the second quarter of 2013, PAR reported revenue from continuing operations of $59.5 million and net income of $248,000 or $0.02 per diluted share. On a non-GAAP basis, the Company’s net income from continuing operations was $302,000 or $0.02 per diluted share for the second quarter of 2013. The non-GAAP results for the second quarter exclude charges related to the Company’s equity based compensation plans.
Commenting on the second quarter, Ronald J. Casciano, Chief Executive Officer & President, stated, “Although not unexpected, our results were impacted in the quarter by lower revenues in our Government segment due to the timing of certain task orders. Our bottom line results were impacted by the continuing investments in our hospitality segment and specifically regarding our next generation hotel products. However, we continue to make progress on executing that investment strategy and are making important strides towards broadening our customer base as well. While certainly not satisfied with our results, we remain confident in our market opportunities and our leading technology and services in our Hospitality and Government segments.”
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 and 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) on July 31, 2014, during which the Company’s management will discuss the financial results for the second quarter of 2014. If you would like to participate in this conference call, please dial 1-877-546-5018 approximately 10 minutes before the scheduled beginning and use the PAR passcode 40572879. Individual and institutional investors also will have the opportunity to listen to the conference call live over the Internet. Individual investors can listen by visiting PAR’s website at www.partech.com. If you are unable to participate in the conference call, an automatic replay will be available until August 7, 2014 via www.partech.com or via telephone by dialing 1-888-286-8010 and using the passcode 72099280.
###
PAR TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
|
|
June 30,
|
December 31,
|
||||||
|
Assets
|
2014
|
2013
|
||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
$
|
12,953
|
$
|
10,015
|
||||
|
Accounts receivable-net
|
31,333
|
30,688
|
||||||
|
Inventories-net
|
22,425
|
24,465
|
||||||
|
Income tax refund
|
256
|
-
|
||||||
|
Deferred income taxes
|
4,694
|
3,747
|
||||||
|
Other current assets
|
3,249
|
3,418
|
||||||
|
Total current assets
|
74,910
|
72,333
|
||||||
|
Property, plant and equipment - net
|
5,935
|
5,494
|
||||||
|
Deferred income taxes
|
14,491
|
15,083
|
||||||
|
Goodwill
|
6,852
|
6,852
|
||||||
|
Intangible assets - net
|
15,664
|
15,071
|
||||||
|
Other assets
|
2,896
|
2,675
|
||||||
|
Total Assets
|
$
|
120,748
|
$
|
117,508
|
||||
|
Liabilities and Shareholders’ Equity
|
||||||||
|
Current liabilities:
|
||||||||
|
Current portion of long-term debt
|
$
|
169
|
$
|
166
|
||||
|
Accounts payable
|
17,735
|
17,200
|
||||||
|
Accrued salaries and benefits
|
5,962
|
6,663
|
||||||
|
Accrued expenses
|
3,711
|
2,701
|
||||||
|
Customer deposits
|
751
|
1,071
|
||||||
|
Deferred service revenue
|
15,921
|
12,170
|
||||||
|
Income taxes payable
|
-
|
185
|
||||||
|
Total current liabilities
|
44,249
|
40,156
|
||||||
|
Long-term debt
|
833
|
918
|
||||||
|
Other long-term liabilities
|
3,705
|
3,714
|
||||||
|
Total liabilities
|
48,787
|
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; 17,332,218 and 17,301,925 shares issued; 15,624,109 and 15,593,816 outstanding
|
347
|
344
|
||||||
|
Capital in excess of par value
|
44,466
|
43,635
|
||||||
|
Retained earnings
|
33,608
|
35,116
|
||||||
|
Accumulated other comprehensive loss
|
(624
|
)
|
(539
|
)
|
||||
|
Treasury stock, at cost, 1,708,109 shares
|
(5,836
|
)
|
(5,836
|
)
|
||||
|
Total shareholders’ equity
|
71,961
|
72,720
|
||||||
|
Total Liabilities and Shareholders’ Equity
|
$
|
120,748
|
$
|
117,508
|
||||
PAR TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
|
|
For the three
months ended
June 30,
|
For the three
months ended
June 30,
|
For the six
months ended
June 30,
|
For the six
months ended
June 30,
|
||||||||||||
|
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
|
Net revenues:
|
||||||||||||||||
|
Product
|
$
|
22,953
|
$
|
22,257
|
$
|
41,545
|
$
|
46,173
|
||||||||
|
Service
|
14,920
|
15,314
|
29,170
|
31,334
|
||||||||||||
|
Contract
|
19,529
|
21,945
|
43,228
|
48,683
|
||||||||||||
|
|
57,402
|
59,516
|
113,943
|
126,190
|
||||||||||||
|
Costs of sales:
|
||||||||||||||||
|
Product
|
15,815
|
14,841
|
28,718
|
31,314
|
||||||||||||
|
Service
|
10,831
|
10,904
|
20,384
|
22,456
|
||||||||||||
|
Contract
|
18,495
|
20,312
|
40,567
|
45,791
|
||||||||||||
|
|
45,141
|
46,057
|
89,669
|
99,561
|
||||||||||||
|
Gross margin
|
12,261
|
13,459
|
24,274
|
26,629
|
||||||||||||
|
Operating expenses:
|
||||||||||||||||
|
Selling, general and administrative
|
9,513
|
9,494
|
18,776
|
19,699
|
||||||||||||
|
Research and development
|
3,761
|
3,706
|
7,625
|
7,846
|
||||||||||||
|
|
13,274
|
13,200
|
26,401
|
27,545
|
||||||||||||
|
Operating income (loss) from continuing operations
|
(1,013
|
)
|
259
|
(2,127
|
)
|
(916
|
)
|
|||||||||
|
Other income net
|
406
|
255
|
328
|
221
|
||||||||||||
|
Interest expense
|
(25
|
)
|
(13
|
)
|
(42
|
)
|
(26
|
)
|
||||||||
|
Income (loss) from continuing operations before (provision) benefit for income taxes
|
(632
|
)
|
501
|
(1,841
|
)
|
(721
|
)
|
|||||||||
|
(Provision) benefit for income taxes
|
113
|
(253
|
)
|
333
|
600
|
|||||||||||
|
Income (loss) from continuing operations
|
(519
|
)
|
248
|
(1,508
|
)
|
(121
|
)
|
|||||||||
|
Discontinued operations
|
||||||||||||||||
|
Loss on discontinued operations (net of tax)
|
-
|
(191
|
)
|
-
|
(206
|
)
|
||||||||||
|
Net Income (loss)
|
$
|
(519
|
)
|
$
|
57
|
$
|
(1,508
|
)
|
$
|
(327
|
)
|
|||||
|
Basic Earnings per Share:
|
||||||||||||||||
|
Income (loss) from continuing operations
|
(0.03
|
)
|
0.02
|
(0.10
|
)
|
(0.01
|
)
|
|||||||||
|
Loss from discontinued operations
|
-
|
(0.01
|
)
|
-
|
(0.01
|
)
|
||||||||||
|
Net income (loss)
|
$
|
(0.03
|
)
|
$
|
0.00
|
$
|
(0.10
|
)
|
$
|
(0.02
|
)
|
|||||
|
Diluted Earnings per Share:
|
||||||||||||||||
|
Loss from continuing operations
|
(0.03
|
)
|
0.02
|
(0.10
|
)
|
(0.01
|
)
|
|||||||||
|
Loss from discontinued operations
|
-
|
(0.01
|
)
|
-
|
(0.01
|
)
|
||||||||||
|
Net income (loss)
|
$
|
(0.03
|
)
|
$
|
0.00
|
$
|
(0.10
|
)
|
$
|
(0.02
|
)
|
|||||
|
Weighted average shares outstanding
|
||||||||||||||||
|
Basic
|
15,612
|
15,171
|
15,473
|
15,162
|
||||||||||||
|
Diluted
|
15,612
|
15,340
|
15,473
|
15,162
|
||||||||||||
PAR TECHNOLOGY CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(in thousands, except per share data)
|
|
For the three months ended June 30, 2014
|
For the three months ended June 30, 2013
|
||||||||||||||||||||||
|
|
Reported
basis (GAAP)
|
Adjustments
|
Comparable
basis (Non-
GAAP)
|
Reported
basis (GAAP)
|
Adjustments
|
Comparable
basis (Non-
GAAP)
|
||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Net revenues
|
$
|
57,402
|
-
|
$
|
57,402
|
$
|
59,516
|
-
|
$
|
59,516
|
||||||||||||||
|
Costs of sales
|
45,141
|
-
|
45,141
|
46,057
|
-
|
46,057
|
||||||||||||||||||
|
Gross Margin
|
12,261
|
-
|
12,261
|
13,459
|
-
|
13,459
|
||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Operating Expenses
|
||||||||||||||||||||||||
|
Selling, general and administrative
|
9,513
|
278
|
9,235
|
9,494
|
82
|
9,412
|
||||||||||||||||||
|
Research and development
|
3,761
|
-
|
3,761
|
3,706
|
-
|
3,706
|
||||||||||||||||||
|
Total operating expenses
|
13,274
|
278
|
12,996
|
13,200
|
82
|
13,118
|
||||||||||||||||||
|
Operating (income) loss from continuing operations
|
(1,013
|
)
|
278
|
(735
|
)
|
259
|
82
|
341
|
||||||||||||||||
|
Other income (expense), net
|
406
|
-
|
406
|
255
|
-
|
255
|
||||||||||||||||||
|
Interest expense
|
(25
|
)
|
-
|
(25
|
)
|
(13
|
)
|
-
|
(13
|
)
|
||||||||||||||
|
Income (loss) from continuing operations before (provision) benefit for income taxes
|
(632
|
)
|
278
|
(354
|
)
|
501
|
82
|
583
|
||||||||||||||||
|
(Provision) benefit for income taxes
|
113
|
(95
|
)
|
18
|
(253
|
)
|
(28
|
)
|
(281
|
)
|
||||||||||||||
|
Income (loss) from continuing operations
|
$
|
(519
|
)
|
$
|
183
|
$
|
(336
|
)
|
$
|
248
|
$
|
54
|
$
|
302
|
||||||||||
|
Income (loss) from discontinued operations, (net of tax)
|
$
|
-
|
$
|
-
|
$
|
(191
|
)
|
$
|
(191
|
)
|
||||||||||||||
|
Net income (loss)
|
$
|
(519
|
)
|
$
|
(336
|
)
|
$
|
57
|
$
|
111
|
||||||||||||||
|
Income (loss) per diluted share from continuing operations
|
$
|
(0.03
|
)
|
$
|
(0.02
|
)
|
$
|
0.02
|
$
|
0.02
|
||||||||||||||
|
Income (loss) per diluted share from discontinuing operations
|
-
|
-
|
$
|
(0.01
|
)
|
$
|
(0.01
|
)
|
||||||||||||||||
|
Income (loss) per diluted share
|
$
|
(0.03
|
)
|
$
|
(0.02
|
)
|
$
|
0.00
|
$
|
(0.01
|
)
|
|||||||||||||
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.
The adjustments for the three months ended June 30, relate to the Company’s stock compensation expense included within the Company’s operating expenses. During the second quarter of 2014, the Company recorded a charge of $278,000 for equity based compensation expense as compared to $82,000 recorded during the second quarter of 2013.
PAR TECHNOLOGY CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(in thousands, except per share data)
|
|
For the six months ended June 30, 2014
|
For the six months ended June 30, 2013
|
||||||||||||||||||||||
|
|
Reported
basis (GAAP)
|
Adjustments
|
Comparable
basis (Non-
GAAP)
|
Reported
basis (GAAP)
|
Adjustments
|
Comparable
basis (Non-
GAAP)
|
||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Net revenues
|
$
|
113,943
|
-
|
$
|
113,943
|
$
|
126,190
|
-
|
$
|
126,190
|
||||||||||||||
|
Costs of sales
|
89,669
|
-
|
89,669
|
99,561
|
-
|
99,561
|
||||||||||||||||||
|
Gross Margin
|
24,274
|
-
|
24,274
|
26,629
|
-
|
26,629
|
||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Operating Expenses
|
||||||||||||||||||||||||
|
Selling, general and administrative
|
18,776
|
802
|
17,974
|
19,699
|
822
|
18,877
|
||||||||||||||||||
|
Research and development
|
7,625
|
7,625
|
7,846
|
106
|
7,740
|
|||||||||||||||||||
|
Total operating expenses
|
26,401
|
802
|
25,599
|
27,545
|
928
|
26,617
|
||||||||||||||||||
|
Operating income (loss) from continuing operations
|
(2,127
|
)
|
802
|
(1,325
|
)
|
(916
|
)
|
928
|
12
|
|
||||||||||||||
|
Other expense, net
|
328
|
-
|
328
|
221
|
-
|
221
|
||||||||||||||||||
|
Interest expense
|
(42
|
)
|
-
|
(42
|
)
|
(26
|
)
|
-
|
(26
|
)
|
||||||||||||||
|
Income (loss) from continuing operations before (provision) benefit for income taxes
|
(1,841
|
)
|
802
|
(1,039
|
)
|
(721
|
)
|
928
|
207
|
|
||||||||||||||
|
(Provision) benefit for income taxes
|
333
|
(273
|
)
|
60
|
600
|
(316
|
)
|
284
|
||||||||||||||||
|
Income (loss) from continuing operations
|
$
|
(1,508
|
)
|
$
|
529
|
$
|
(979
|
)
|
$
|
(121
|
)
|
$
|
612
|
$
|
491
|
|||||||||
|
Income (loss) from discontinued operations, (net of tax)
|
$
|
-
|
$
|
-
|
$
|
(206
|
)
|
$
|
(206
|
)
|
||||||||||||||
|
Net income (loss)
|
$
|
(1,508
|
)
|
$
|
(979
|
)
|
$
|
(327
|
)
|
$
|
285
|
|||||||||||||
|
Income (loss) per diluted share from continuing operations
|
$
|
(0.10
|
)
|
$
|
(0.06
|
)
|
$
|
(0.01
|
)
|
$
|
0.03
|
|||||||||||||
|
Income (loss) per diluted share from discontinuing operations
|
-
|
-
|
$
|
(0.01
|
)
|
$
|
(0.01
|
)
|
||||||||||||||||
|
Income (loss) per diluted share
|
$
|
(0.10
|
)
|
$
|
(0.06
|
)
|
$
|
(0.02
|
)
|
$
|
0.02
|
|||||||||||||
During the six months ended June 30, 2014, the Company recorded $802,000 for equity based compensation expense. During the first six months of 2013, the Company recorded total charges of $928,000, which included a benefit of $281,000 related to equity compensation expense. The other charges of $1,209,000 were composed of $938,000 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.