Revenues Grow 10.3% in the Quarter – 7.9% in
the First Six Months of 2015
PAR Technology Corporation (NYSE:PAR) today announced results
for the second quarter ended June 30, 2015.
Summary of Fiscal 2015 Second Quarter and Year-to-Date
Financial Results
- Revenue increased 10.3% to $63.3
million in the second quarter of fiscal 2015, compared to $57.4
million in the same period in 2014.
- Non-GAAP net income in the second
quarter of fiscal 2015 was $0.6 million, or $0.04 per diluted
share, compared to a non-GAAP net loss of $0.3 million, or $0.02
loss per share, in the same period in 2014.
- GAAP net income in the second quarter
of fiscal 2015 was $0.1 million, or $0.01 per diluted share,
compared to a GAAP net loss of $0.5 million, or $0.03 loss per
share, in the same period in 2014.
- Revenue increased 7.9% to $122.9
million in the first six months of fiscal 2015, compared to $113.9
million in the same period in 2014.
- Non-GAAP net income in the first six
months of fiscal 2015 was $0.6 million, or $0.04 per diluted share,
compared to a non-GAAP net loss of $1.0 million or $0.06 loss per
share, in the same period in 2014.
- GAAP net loss in the first six months
of fiscal 2015 was $0.3 million or $0.02 loss per share, compared
to a GAAP net loss of $1.5 million, or $0.10 loss per share, in the
same period in 2014.
Commenting on the second quarter results, Ronald J. Casciano,
Chief Executive Officer & President, stated, “We are pleased
with the quarterly performance and the progress being made in both
of our business segments as they delivered revenue and income
growth in the quarter. We are seeing strong interest in our new
hospitality technology products, specifically our Brink POS™
software, and are encouraged by the recent new customer wins in
this segment. Our Government segment also had a strong second
quarter and delivered double digit revenue growth and improved
profits for the quarter when compared to the same period in 2015.
Going forward we fully expect to build upon our recent progress by
focusing on alignment, innovation and execution to compete and
succeed in the markets we serve.”
The Company previously stated its intention to make strategic
and operational improvements involving its hospitality segment,
primarily in its international operations to focus on global
delivery of its software solutions. This restructuring realigns
sales and support functions with US-based operations, increases
efficiencies and reduces operating costs. In connection with this
restructuring, the Company’s GAAP results include a one-time
pre-tax charge in the second quarter of $416,000.
A reconciliation and description of non-GAAP financial measures
to their comparable GAAP financial measures are included in the
tables following this news release.
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 4:45 p.m. (Eastern) on August
6, 2015, during which the Company’s management will discuss the
financial results for the second quarter of 2015. To participate in
the call, please call 866-868-9502, approximately 10 minutes
in advance. No passcode is required to participate in the live call
or to listen to the replay version. Individual & Institutional
Investors will have the opportunity to listen to the conference
call/event over the internet by visiting PAR’s website at
www.partech.com. Alternatively, listeners may access an archived
version of the presentation call through August 13, 2015 by dialing
855-859-2056.
PAR TECHNOLOGY
CORPORATIONCONSOLIDATED BALANCE SHEETS(in thousands,
except share amounts)(Unaudited)
June 30, December 31,
Assets
2015 2014 Current assets: Cash and cash equivalents $ 5,136 $
10,167 Accounts receivable-net 34,467 31,445 Inventories-net 24,936
25,922 Deferred income taxes 5,583 4,512 Other current assets
4,352 4,597 Total current assets
74,474 76,643 Property, plant and equipment - net 6,353 6,135
Deferred income taxes 10,948 11,357 Goodwill 17,167 17,167
Intangible assets - net 22,863 22,952 Other assets 3,676
3,043
Total Assets
$ 135,481 $ 137,297
Liabilities and Shareholders’
Equity
Current liabilities: Current portion of long-term debt $ 3,176 $
3,173 Borrowings under line of credit 3,276 5,000 Accounts payable
15,422 19,676 Accrued salaries and benefits 6,376 6,429 Accrued
expenses 6,150 6,578 Customer deposits 4,078 2,345 Deferred service
revenue 16,175 12,695 Income taxes payable 373
475 Total current liabilities 55,026 56,371 Long-term
debt 2,528 2,566 Other long-term liabilities 8,765
8,847 Total liabilities 66,319
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; 17,250,209 and 17,274,708 sharesissued;
15,542,100 and 15,566,599 outstanding
345 346 Capital in excess of par value 45,066 44,854 Retained
earnings 31,181 31,465 Accumulated other comprehensive loss (1,594
) (1,316 ) Treasury stock, at cost, 1,708,109 shares (5,836
) (5,836 ) Total shareholders’ equity 69,162
69,513
Total Liabilities and
Shareholders’ Equity $ 135,481 $ 137,297
PAR TECHNOLOGY
CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONS(in
thousands, except per share amounts)(Unaudited)
For the threemonths endedJune 30,
For the threemonths endedJune 30,
For the sixmonths endedJune 30,
For the sixmonths endedJune 30,
2015 2014 2015 2014 Net
revenues: Product $ 25,802 $ 22,953 $ 47,488 $ 41,545 Service
15,929 14,920 30,031 29,170 Contract 21,561
19,529 45,397 43,228
63,292 57,402 122,916
113,943 Costs of sales: Product 18,172 15,815 33,013 28,718
Service 10,404 10,831 19,724 20,384 Contract 20,189
18,495 42,663 40,567
48,765 45,141 95,400
89,669 Gross margin 14,527
12,261 27,516 24,274 Operating
expenses: Selling, general and administrative 9,253 9,513 18,317
18,776 Research and development 4,420 3,761 8,765 7,625 Acquisition
amortization 249 - 498
- 13,922 13,274
27,580 26,401 Operating income (loss): 605
(1,013 ) (64 ) (2,127 ) Other (expense) income, net (10 ) 406 (239
) 328 Interest expense (85 ) (25 ) (171 )
(42 ) Income (loss) before (provision for) benefit from
income taxes 510 (632 ) (474 ) (1,841 ) (Provision for) benefit
from income taxes (409 ) 113 190
333 Net income (loss) $ 101 $ (519 ) $ (284 )
$ (1,508 ) Earnings (loss) per Share: Basic $ 0.01 $ (0.03 )
$ (0.02 ) $ (0.10 ) Diluted $ 0.01 $ (0.03 ) $ (0.02 ) $ (0.10 )
Weighted average shares outstanding Basic 15,584
15,612 15,541 15,473
Diluted 15,671 15,612
15,541 15,473
PAR TECHNOLOGY
CORPORATIONRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
RESULTS(in thousands, except per share data)(Unaudited)
For the three months ended June 30, 2015 For the
three months ended June 30, 2014
Reportedbasis (GAAP)
Adjustments
Comparablebasis (Non-GAAP)
Reported basis(GAAP)
Adjustments
Comparablebasis (Non-GAAP)
Net revenues $ 63,292 - 63,292 $ 57,402 - 57,402 Costs of
sales 48,765 85 48,680
45,141 - 45,141 Gross
Margin 14,527 85 14,612 12,261 - 12,261 Operating Expenses
Selling, general and administrative 9,253 346 8,907 9,513 278 9,235
Research and development 4,420 13 4,407 3,761 - 3,761 Acquisition
amortization 249 249 -
- - Total operating expenses
13,922 608 13,314 13,274 278 12,996 Operating income (loss) 605 693
1,298 (1,013 ) 278 (735 ) Other (expense) income, net (10 ) - (10 )
406 - 406 Interest expense (85 ) 25 (60
) (25 ) - (25 ) Income (loss) before
(provision for) benefit from income taxes 510 718 1,228 (632 ) 278
(354 ) (Provision for) benefit from income taxes (409 )
(266 ) (675 ) 113 (95 )
18 Net income (loss) $ 101 $ 452 $ 553
$ (519 ) $ 183 $ (336 ) Earnings (loss) per diluted share $
0.01 $ 0.04 $ (0.03 ) $ (0.02 )
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 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 second quarter of 2015, the Company recorded
severance and other related charges of $416,000, of which $85,000
is included in cost of sales, $13,000 is included in research and
development and $318,000 is included in selling, general and
administrative. Also included within selling, general and
administrative is equity based compensation charges of $28,000.
Lastly, related to the acquisition of Brink, the Company recognized
amortization of acquired intangible assets of $249,000 and accreted
interest of $25,000. During the second quarter of 2014, the Company
recorded a charge of $278,000 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/or are quantitatively and
qualitatively different from the Company’s core operations during
any particular period.
PAR TECHNOLOGY
CORPORATIONRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
RESULTS(in thousands, except per share data)(Unaudited)
For the six months ended June 30, 2015 For the
six months ended June 30, 2014
Reportedbasis (GAAP)
Adjustments
Comparablebasis (Non-GAAP)
Reported basis(GAAP)
Adjustments
Comparablebasis (Non-GAAP)
Net revenues $ 122,916 - $ 122,916 $ 113,943 - $ 113,943
Costs of sales 95,400 151 95,249
89,669 - 89,669
Gross Margin 27,516 151 27,667 24,274 - 24,274 Operating
Expenses
Selling, general and administrative
18,317 706 17,611 18,776 802 17,974 Research and development 8,765
13 8,752 7,625 7,625 Acquisition amortization 498
498 - - -
Total operating expenses 27,580 1,217 26,363 26,401 802
25,599 Operating income (loss) (64 ) 1,368 1,304 (2,127 ) 802
(1,325 ) Other (expense) income, net (239 ) - (239 ) 328 - 328
Interest expense (171 ) 51 (120 )
(42 ) - (42 ) Income (loss) before
(provision for) benefit from income taxes (474 ) 1,419 945 (1,841 )
802 (1,039 ) (Provision for) benefit from income taxes 190
(525 ) (335 ) 333 (273 )
60 Net income (loss) $ (284 ) $ 894 $ 610
$ (1,508 ) $ 529 $ (979 ) Earnings (loss) per diluted
share $ (0.02 ) $ 0.04 $ (0.10 ) $ (0.06 )
During the six months ended June 30, 2015, the Company recorded
severance and other related charges of $597,000, of which $151,000
is included in cost of sales, $13,000 is included in research and
development and $433,000 is included in selling, general and
administrative. Also included within selling, general and
administrative is equity based compensation charges of $273,000.
Lastly, related to the acquisition of Brink, the Company recognized
amortization of acquired intangible assets of $498,000 and accreted
interest of $51,000. During the six months ended June 30, 2014, the
Company recorded a charge of $802,000 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/or are quantitatively and
qualitatively different from the Company’s core operations during
any particular period.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150806006314/en/
PAR Technology CorporationChristopher R. Byrnes, 315-738-0600
ext. 6226cbyrnes@partech.comwww.partech.com
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