NEW HARTFORD, N.Y.--(BUSINESS WIRE)--PAR Technology Corporation (NYSE: PAR) today announced results for the first quarter ended March 31, 2013. The Company reported first quarter revenues of $66.7 million and a net loss from continuing operations of $369,000 or $0.02 net loss per share. This compares with prior year first quarter revenue of $55.6 million and net income from continuing operations of $1.0 million or $0.07 per diluted share. On a non-GAAP basis, the Company’s net income from continuing operations for the first quarter was $178,000 or $0.01 per diluted share. These non-GAAP results exclude specific charges primarily related to severance and legal costs incurred in the quarter.
“During the first quarter we increased revenues by 20% over the prior year’s quarter with both of our business segments showing growth. In particular we had significant revenue growth with our newest hardware offering for restaurants and also realized a 33% growth in contract revenues from last year’s corresponding quarter,” said PAR Technology President and Chief Executive Officer Ronald J. Casciano. “We will continue to take the necessary steps to sharpen our focus on our core businesses and better position PAR to capitalize upon our competitive strengths in hospitality technology and Government I/T services. Our strong market presence, innovative software and hardware products, customer service and industry leading domain expertise will continue to differentiate PAR from other providers. Our solid balance sheet will support the execution of our strategies and will position us for growth for the remainder of 2013 and beyond.”
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 4:30 p.m. eastern time on May 1, 2013, during which the Company’s management will discuss the financial results for the first quarter of 2013. If you would like to participate in this conference please call 866-318-8615 approximately 10 minutes before the call is scheduled to begin and use the PAR pass code 14665237. 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, and through CCBN’s individual investor center at www.companyboardroom.com or by visiting any of the investor sites in CCBN’s Individual Investor Network. Institutional investors can access the call via CCBN’s password-protected site, StreetEvents (www.streetevents.com). In case you are unable to participate in the conference call, an automatic replay will be available on the World Wide Web via www.companyboardroom.com until May 8, 2013 or dial 888-286-8010 and use the Pass Code number 17179887 until May 8, 2013 as well.
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PAR TECHNOLOGY CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) |
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| March 31, | December 31, | |||||||||||
| Assets | 2013 | 2012 | ||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 14,121 | $ | 19,475 | ||||||||
| Accounts receivable-net | 28,137 | 29,890 | ||||||||||
| Inventories-net | 25,835 | 26,172 | ||||||||||
| Deferred income taxes | 12,451 | 11,037 | ||||||||||
| Other current assets | 3,492 | 3,236 | ||||||||||
| Escrow receivable | 828 | 828 | ||||||||||
| Total current assets | 84,864 | 90,638 | ||||||||||
| Property, plant and equipment - net | 5,588 | 5,857 | ||||||||||
| Deferred income taxes | 5,726 | 6,280 | ||||||||||
| Goodwill | 6,852 | 6,852 | ||||||||||
| Intangible assets - net | 12,316 | 11,747 | ||||||||||
| Other assets | 2,605 | 2,391 | ||||||||||
| Total Assets | $ | 117,951 | $ | 123,765 | ||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Current portion of long-term debt | $ | 161 | $ | 159 | ||||||||
| Accounts payable | 16,393 | 21,216 | ||||||||||
| Accrued salaries and benefits | 6,544 | 6,397 | ||||||||||
| Accrued expenses | 2,542 | 4,467 | ||||||||||
| Customer deposits | 885 | 1,380 | ||||||||||
| Deferred service revenue | 14,789 | 12,522 | ||||||||||
| Income taxes payable | 288 | 547 | ||||||||||
| Total current liabilities | 41,602 | 46,688 | ||||||||||
| Long-term debt | 1,043 | 1,084 | ||||||||||
| Other long-term liabilities | 3,429 | 3,030 | ||||||||||
| Liabilities of discontinued operations | 104 | 141 | ||||||||||
| Total liabilities | 46,178 | 50,943 | ||||||||||
| 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; | ||||||||||||
| 17,043,128 and 17,038,405 shares issued; | ||||||||||||
| 15,335,441 and 15,330,718 outstanding | 341 | 341 | ||||||||||
| Capital in excess of par value | 43,313 | 43,661 | ||||||||||
| Retained earnings | 34,374 | 34,758 | ||||||||||
| Accumulated other comprehensive loss | (421 | ) | (104 | ) | ||||||||
| Treasury stock, at cost, 1,707,687 and 1,707,687 shares | (5,834 | ) | (5,834 | ) | ||||||||
| Total shareholders’ equity | 71,773 | 72,822 | ||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 117,951 | $ | 123,765 | ||||||||
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PAR TECHNOLOGY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) |
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For the months |
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ended March 31, |
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| 2013 | 2012 | ||||||||||||
| Net revenues: | |||||||||||||
| Product | $ | 23,916 | $ | 20,170 | |||||||||
| Service | 16,020 | 15,379 | |||||||||||
| Contract | 26,738 | 20,044 | |||||||||||
| 66,674 | 55,593 | ||||||||||||
| Costs of sales: | |||||||||||||
| Product | 16,473 | 10,977 | |||||||||||
| Service | 11,552 | 10,565 | |||||||||||
| Contract | 25,479 | 18,983 | |||||||||||
| 53,504 | 40,525 | ||||||||||||
| Gross margin | 13,170 | 15,068 | |||||||||||
| Operating expenses: | |||||||||||||
| Selling, general and administrative | 10,205 | 10,143 | |||||||||||
| Research and development | 4,140 | 3,549 | |||||||||||
| Amortization of identifiable intangible assets | - | 153 | |||||||||||
| 14,345 | 13,845 | ||||||||||||
| Operating income (loss) from continuing operations | (1,175 | ) | 1,223 | ||||||||||
| Other income (expense), net | (34 | ) | 573 | ||||||||||
| Interest expense | (13 | ) | (21 | ) | |||||||||
| Income (loss) from continuing operations before provision for income taxes | (1,222 | ) | 1,775 | ||||||||||
| Benefit (provision) for income taxes | 853 | (740 | ) | ||||||||||
| Income (loss) from continuing operations | (369 | ) | 1,035 | ||||||||||
| Discontinued operations | |||||||||||||
| Income (loss) on discontinued operations (net of tax) | (15 | ) | 1,430 | ||||||||||
| Net Income (loss) | $ | (384 | ) | $ | 2,465 | ||||||||
| Basic Earnings per Share: | |||||||||||||
| Income (loss) from continuing operations | (.02 | ) | 0.07 | ||||||||||
| Income (loss) from discontinued operations | (.00 | ) | 0.09 | ||||||||||
| Net Income (loss) | $ | (.03 | ) | $ | 0.16 | ||||||||
| Diluted Earnings per Share: | |||||||||||||
| Income (loss) from continuing operations | (.02 | ) | 0.07 | ||||||||||
| Income (loss) from discontinued operations | (.00 | ) | 0.09 | ||||||||||
| Net Income (loss) | $ | (.03 | ) | $ | 0.16 | ||||||||
| Weighted average shares outstanding | |||||||||||||
| Basic | 15,154 | 15,083 | |||||||||||
| Diluted | 15,154 | 15,162 | |||||||||||
| PAR TECHNOLOGY CORPORATION | ||||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||
| For the three months ended March 31, 2013 | ||||||||||||||||||
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Reported basis (GAAP) |
Adjustments |
Comparable basis (Non- GAAP) |
For the three months ended March 31, 2012 |
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| Net revenues | $ | 66,674 | - | $ | 66,674 | $ | 55,593 | |||||||||||
| Costs of sales | 53,504 | - | 53,504 | 40,525 | ||||||||||||||
| Gross Margin | 13,170 | - | 13,170 | 15,068 | ||||||||||||||
| Operating Expenses | ||||||||||||||||||
| Selling, general and administrative | 10,205 | 772 | 9,433 | 10,143 | ||||||||||||||
| Research and development | 4,140 | 106 | 4,034 | 3,549 | ||||||||||||||
| Amortization of identifiable intangible assets | - | - | - | 153 | ||||||||||||||
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Total operating expenses |
14,345 | 878 | 13,467 | 13,845 | ||||||||||||||
| Operating income (loss) from continuing operations | (1,175 | ) | 878 | (297 | ) | 1,223 | ||||||||||||
| Other income (expense), net | (34 | ) | - | (34 | ) | 573 | ||||||||||||
| Interest expense | (13 | ) | - | (13 | ) | (21 | ) | |||||||||||
| Income (loss) from continuing operations before provision for income taxes | (1,222 | ) | 878 | (344 | ) | 1,775 | ||||||||||||
| (Provision)benefit for income taxes | 853 | (331 | ) | 522 | (740 | ) | ||||||||||||
| Income (loss) from continuing operations | $ | (369 | ) | $ | 547 | $ | 178 | $ | 1,035 | |||||||||
| Income (loss) from discontinued operations, (net of tax) | $ | (15 | ) | $ | (15 | ) | $ | 1,430 | ||||||||||
| Net Income (loss) | $ | (384 | ) | $ | 163 | $ | 2,465 | |||||||||||
| Income (loss) per diluted share from continuing operations | $ | (0.02 | ) | $ | 0.01 | $ | 0.07 | |||||||||||
| Income (loss) per diluted share from discontinuing operations | $ | (0.00 | ) | $ | (0.00 | ) | $ | 0.09 | ||||||||||
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Income (loss) per diluted share |
$ | (0.03 | ) | $ | 0.01 | $ | 0.16 | |||||||||||
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, the Company recorded total charges of $878,000. The most significant of the charges was $607,000 of separation related costs. In addition to this charge, the Company incurred legal costs of $271,000 associated with an intellectual property matter that was settled during the quarter. 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.