Attached files
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| 8-K - PAR TECHNOLOGY CORPORATION 8-K 5-1-2014 - PAR TECHNOLOGY CORP | form8-k.htm |
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Exhibit 99.1
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Press Release dated May 1, 2014.
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FOR RELEASE:
CONTACT:
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New Hartford, NY, May 1, 2014
Christopher R. Byrnes (315) 738-0600 ext. 6226
cbyrnes@partech.com, www.partech.com
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PAR TECHNOLOGY CORPORATION ANNOUNCES
2014 FIRST QUARTER RESULTS
New Hartford, NY- May 1, 2014 -- PAR Technology Corporation (NYSE: PAR) today announced results for the first quarter ended March 31, 2014. The Company reported first quarter revenues of $56.5 million and a net loss from continuing operations of $989,000 or $0.06 loss per share. This compares with fiscal 2013 first quarter revenue of $66.7 million and a net loss from continuing operations of $369,000 or $0.02 loss per share. On a non-GAAP basis, the Company's net loss from continuing operations for the first quarter of 2014 was $644,000 or $0.04 loss per share. This compares to non-GAAP net income from continued operations of $178,000 or $0.01 per diluted share during the first quarter of 2013. See the attached Reconciliation of GAAP to Non-GAAP Financial Results table for further information on these non-GAAP results.
"Our first quarter results reflect a decline in revenue as we periodically experience volatility regarding the timing of product deployments with certain major customers within our Hospitality business, as well as volatility associated with task orders on our ISR contracts with the U.S. Department of Defense. Despite these revenue challenges, we have continued to execute upon cost reduction initiatives to help manage through this volatility," said PAR Technology President and Chief Executive Officer Ronald J. Casciano. "Although our first quarter results were challenging, we have continued our investment in new technologies associated with both our Hospitality and Government businesses. While these investments impact profitability, they are essential for the Company's long-term growth."
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 segment 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 May 1, 2014, during which the Company's management will discuss the financial results for the first quarter of 2014. If you would like to participate in this conference please call 866-515-2915 approximately 10 minutes before the call is scheduled to begin and use the PAR pass code 41418004. 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 case 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 8, 2014 or dial 888-286-8010 and use the Pass Code number 27798351 until May 8, 2014 as well.
###
PAR TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
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March 31,
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December 31,
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||||||
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Assets
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2014
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2013
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Current assets:
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Cash and cash equivalents
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$
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10,296
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$
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10,015
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Accounts receivable-net
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34,152
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30,688
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Inventories-net
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22,844
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24,465
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Income tax refund
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80
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-
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Deferred income taxes
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4,496
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3,747
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Other current assets
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3,278
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3,418
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Total current assets
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75,146
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72,333
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Property, plant and equipment - net
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5,719
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5,494
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Deferred income taxes
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14,555
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15,083
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Goodwill
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6,852
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6,852
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Intangible assets - net
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15,601
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15,071
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Other assets
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2,832
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2,675
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Total Assets
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$
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120,705
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$
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117,508
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Liabilities and Shareholders' Equity
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Current liabilities:
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Current portion of long-term debt
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$
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153
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$
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166
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Accounts payable
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17,937
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17,200
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Accrued salaries and benefits
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5,344
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6,663
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Accrued expenses
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3,180
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2,701
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Customer deposits
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992
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1,071
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Deferred service revenue
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16,285
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12,170
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Income taxes payable
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-
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185
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Total current liabilities
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43,891
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40,156
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Long-term debt
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876
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918
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Other long-term liabilities
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3,672
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3,714
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Total liabilities
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48,439
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44,788
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Commitments and contingencies
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Shareholders' Equity:
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Preferred stock, $.02 par value, 1,000,000 shares authorized
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-
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-
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Common stock, $.02 par value, 29,000,000 shares authorized;
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17,354,673 and 17,301,925 shares issued;
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15,646,564 and 15,593,816 outstanding
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347
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344
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Capital in excess of par value
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44,157
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43,635
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Retained earnings
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34,127
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35,116
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Accumulated other comprehensive loss
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(529
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)
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(539
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)
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Treasury stock, at cost, 1,708,109 shares
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(5,836
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)
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(5,836
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)
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Total shareholders' equity
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72,266
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72,720
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Total Liabilities and Shareholders' Equity
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$
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120,705
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$
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117,508
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See accompanying notes to consolidated financial statements
PAR TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
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For the three months ended March 31,
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2014
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2013
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Net revenues:
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Product
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$
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18,592
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$
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23,916
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Service
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14,250
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16,020
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Contract
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23,699
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26,738
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56,541
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66,674
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Costs of sales:
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Product
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12,903
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16,473
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Service
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9,553
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11,552
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Contract
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22,072
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25,479
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44,528
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53,504
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Gross margin
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12,013
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13,170
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Operating expenses:
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Selling, general and administrative
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9,263
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10,205
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Research and development
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3,864
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4,140
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13,127
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14,345
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Operating loss from continuing operations
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(1,114
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)
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(1,175
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)
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Other expense, net
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(78
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)
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(34
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)
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Interest expense
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(17
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)
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(13
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)
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Loss from continuing operations before benefit for income taxes
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(1,209
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)
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(1,222
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)
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Benefit for income taxes
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220
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853
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Loss from continuing operations
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(989
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)
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(369
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)
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Discontinued operations
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Loss on discontinued operations (net of tax)
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-
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(15
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)
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Net Loss
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$
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(989
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)
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$
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(384
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)
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Basic Earnings per Share:
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Loss from continuing operations
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(0.06
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)
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(0.02
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)
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Loss from discontinued operations
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-
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(0.00
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)
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Net Loss
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$
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(0.06
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)
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$
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(0.03
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)
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Diluted Earnings per Share:
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Loss from continuing operations
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(0.06
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)
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(0.02
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)
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Loss from discontinued operations
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-
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(0.00
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)
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|||||
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Net Loss
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$
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(0.06
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)
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$
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(0.03
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)
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Weighted average shares outstanding
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||||||||
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Basic
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15,499
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15,154
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Diluted
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15,499
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15,154
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PAR TECHNOLOGY CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(in thousands, except per share data)
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For the three months ended March 31, 2014
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For the three months ended March 31, 2013
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||||||||||||||||||||||
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Reported basis (GAAP)
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Adjustments
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Comparable basis (Non-GAAP)
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Reported basis (GAAP)
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Adjustments
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Comparable basis (Non-GAAP)
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||||||||||||||||||
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Net revenues
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$
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56,541
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-
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$
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56,541
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$
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66,674
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-
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$
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66,674
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Costs of sales
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44,528
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-
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44,528
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53,504
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-
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53,504
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Gross Margin
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12,013
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-
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12,013
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13,170
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-
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13,170
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Operating Expenses
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Selling, general and administrative
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9,263
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523
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8,740
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10,205
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772
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9,433
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Research and development
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3,864
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-
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3,864
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4,140
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106
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4,034
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Total operating expenses
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13,127
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523
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12,604
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14,345
|
878
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13,467
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||||||||||||||||||
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Operating loss from continuing operations
|
(1,114
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)
|
523
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(591
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)
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(1,175
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)
|
878
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(297
|
)
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Other expense, net
|
(78
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)
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-
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(78
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)
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(34
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)
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-
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(34
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)
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||||||||||||||
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Interest expense
|
(17
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)
|
-
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(17
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)
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(13
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)
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-
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(13
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)
|
||||||||||||||
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Loss from continuing operations before provision for income taxes
|
(1,209
|
)
|
523
|
(686
|
)
|
(1,222
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)
|
878
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(344
|
)
|
||||||||||||||
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(Provision)benefit for income taxes
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220
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(178
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)
|
42
|
853
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(331
|
)
|
522
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||||||||||||||||
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Income (loss) from continuing operations
|
$
|
(989
|
)
|
$
|
345
|
$
|
(644
|
)
|
$
|
(369
|
)
|
$
|
547
|
$
|
178
|
|||||||||
|
Loss from discontinued operations, (net of tax)
|
$
|
-
|
$
|
-
|
$
|
(15
|
)
|
$
|
(15
|
)
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||||||||||||||
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Net Income (loss)
|
$
|
(989
|
)
|
$
|
(644
|
)
|
$
|
(384
|
)
|
$
|
163
|
|||||||||||||
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Income (loss) per diluted share from continuing operations
|
$
|
(0.06
|
)
|
$
|
(0.04
|
)
|
$
|
(0.02
|
)
|
$
|
0.01
|
|||||||||||||
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Loss per diluted share from discontinuing operations
|
$ |
-
|
$ |
-
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$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
||||||||||||||
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Income (loss) per diliuted share
|
$
|
(0.06
|
)
|
$
|
(0.04
|
)
|
$
|
(0.03
|
)
|
$
|
0.01
|
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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 2014, the Company recorded a charge of $523,000 for equity based compensation expense. During the first quarter of 2013, the Company recorded total charges of $878,000. The most significant of the charges was $607,000 of separation related and equity based compensation expense. 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.