PAR Technology Corporation Announces 2013 Second Quarter Results from Continuing Operations

NEW HARTFORD, N.Y.--()--PAR Technology Corporation (NYSE: PAR) today announced results for the second quarter ended June 30, 2013. PAR reported revenues from continuing operations of $59.5 million and net income of $248,000 or $0.02 earnings per diluted share. During the second quarter of 2012, PAR reported revenue of $62.1 million and net loss of $511,000 or $0.03 loss per share.

Commenting on the second quarter, Ronald J. Casciano, Chief Executive Officer & President, stated, “Our continued focus this quarter has been on improving the operating performance of the Company and building a foundation for future revenue growth and improved performance. We are pleased that we are making progress to achieve this goal. Although impacted by lower year over year Government contract revenue, the second quarter results reflect our efforts to energize our customer and partner base as evidenced by our product revenue growth in the quarter in our Hospitality Technology business.”

“We are committed to being a leader in the markets we serve and our second quarter results demonstrate progress towards that effort. We believe that the investments in our new hardware and software products, along with continued success in our Government I/T business, will be the catalysts towards enhancing our opportunities for future revenue growth and improved profitability.”

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 has two operating segments:

  • PAR’s Hospitality segment has been a leading provider of restaurant and retail technology for more than 30 years. ParTech, Inc. offers technology solutions for the full spectrum of restaurant operations, from large chain and independent table service restaurants to international quick service chains. PAR Springer-Miller Systems, Inc. offers hotel management systems that provide a complete suite of powerful tools for guest management, recreation management, and timeshare/condo management. PAR Springer-Miller Systems also provides the spa industry a leading management application that was 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 comprised of PAR Government Systems Corporation, which provides system solutions to Federal/State Government agencies, and Rome Research Corporation, which is a leading provider of communications and information technology support services to the United States Department of Defense.

Visit www.partech.com for more information.

There will be a conference call at 10:00 a.m. (Eastern) on July 31, 2013, during which the Company’s management will discuss the financial results for the second quarter of 2013. If you would like to participate in this conference call, please dial 1-800-510-9691 approximately 10 minutes before the scheduled beginning and use the PAR passcode 64780242. 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 or by visiting CCBN’s individual investor center at www.companyboardroom.com or 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). If you are unable to participate in the conference call, an automatic replay will be available until August 7, 2013 via www.companyboardroom.com or via telephone by dialing 1-888-286-8010 and using the passcode 34195503 and also on the World Wide Web via www.companyboardroom.com until August 7, 2013 as well.

       
PAR TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

 
June 30, December 31,
Assets 2013 2012
Current assets:
Cash and cash equivalents $ 9,587 $ 19,475
Accounts receivable-net 29,965 29,890
Inventories-net 28,236 26,172
Deferred income taxes 12,877 11,037
Income taxes receivable 152 -
Other current assets   3,455   3,236
Total current assets 84,272 89,810
Property, plant and equipment - net 5,570 5,857
Deferred income taxes 5,146 6,280
Goodwill 6,852 6,852
Intangible assets - net 12,881 11,747
Other assets   2,861   3,219
Total Assets $ 117,582 $ 123,765
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of long-term debt $ 161 $ 159
Accounts payable 16,735 21,216
Accrued salaries and benefits 5,746 6,397
Accrued expenses 2,746 4,467
Customer deposits 886 1,380
Deferred service revenue 14,636 12,522
Income taxes payable   -   547
Total current liabilities   40,910   46,688
Long-term debt   1,004   1,084
Other long-term liabilities   3,460   3,030
Liabilities of discontinued operations   389   141
Total liabilities   45,763   50,943
Shareholders’ Equity:
Preferred stock, $.02 par value, 1,000,000 shares authorized - -

Common stock, $.02 par value, 29,000,000 shares authorized; 17,229,003 and 17,038,405 shares
issued;15,521,316 and 15,330,718 outstanding

344 341
Capital in excess of par value 43,431 43,661
Retained earnings 34,431 34,758
Accumulated other comprehensive loss (553) (104)
Treasury stock, at cost, 1,707,687 and 1,707,687 shares   (5,834)   (5,834)
Total shareholders’ equity   71,819   72,822
Total Liabilities and Shareholders’ Equity $ 117,582 $ 123,765
 
       
PAR TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 
For the three months For the six months
Ended June 30, Ended June 30,

 

2013

 

 

2012

 

2013

 

 

2012

Net revenues:
Product $ 22,257 $ 20,142 $ 46,173 $ 40,312
Service 15,314 16,014 31,334 31,393
Contract   21,945   25,929   48,683   45,973
  59,516   62,085   126,190   117,678
Costs of sales:
Product 14,841 14,041 31,314 25,018
Service 10,904 11,473 22,456 22,038
Contract   20,312   24,584   45,791   43,567
  46,057   50,098   99,561   90,623
Gross margin   13,459   11,987   26,629   27,055
Operating expenses:
Selling, general and administrative 9,494 9,291 19,699 19,434
Research and development 3,706 3,089 7,846 6,638
Amortization of identifiable intangible assets   -   150   -   303
  13,200   12,530   27,545   26,375
Operating income (loss) from continuing operations 259 (543) (916) 680
Other income (expense), net 255 (366) 221 207
Interest expense   (13)   (21)   (26)   (42)
Income (loss) from continuing operations before provision for income taxes 501 (930) (721) 845
Provision (benefit) for income taxes   253   (419)   (600)   321
Income (loss) from continuing operations 248 (511) (121) 524
Discontinued operations
Income (loss) on discontinued operations (net of tax)   (191)   (10)   (206)   1,420
Net Income (loss) $ 57 $ (521) $ (327) $ 1,944
Basic Earnings per Share:
Income (loss) from continuing operations 0.02 (0.03) (0.01) 0.03
Income (loss) from discontinued operations   (0.01)   (0.00)   (0.01)   0.09
Net Income (loss) $ 0.00 $ (0.03) $ (0.02) $ 0.13
Diluted Earnings per Share:
Income (loss) from continuing operations 0.02 (0.03) (0.01) 0.03
Income (loss) from discontinued operations   (0.01)   (0.00)   (0.01)   0.09
Net Income (loss) $ 0.00 $ (0.03) $ (0.02) $ 0.13
Weighted average shares outstanding
Basic   15,171   15,098   15,162   15,091
Diluted   15,340   15,098   15,162   15,163
 
         
PAR TECHNOLOGY CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
 
For the six months ended June 30, 2013

Reported
basis
(GAAP)

Adjustments

Comparable
basis (Non-
GAAP)

For the six
months ended
June 30, 2012

 
Net revenues $ 126,190 - $ 126,190 $ 117,678
Costs of sales   99,561     -   99,561     90,623  
Gross Margin 26,629 - 26,629 27,055
 
Operating Expenses
Selling, general and administrative 19,699 772 18,927 19,434
Research and development 7,846 106 7,740 6,638
Amortization of identifiable intangible assets   -     -   -     303  
Total operating expenses 27,545 878 26,667 26,375
 
Operating income (loss) from continuing operations (916 ) 878 (38 ) 680
Other income (expense), net 221 - 221 207
Interest expense   (26 )   -   (26 )   (42 )
Income (loss) from continuing operations before provision for income taxes (721 ) 878 157 845
Provision (benefit) for income taxes   (600 )   331   (269 )   321  
Income (loss) from continuing operations $ (121 ) $ 547 $ 426   $ 524  
Income (loss) from discontinued operations, (net of tax) $ (206 ) $ (206 ) $ 1,420  
Net Income (loss) $ (327 ) $ 220   $ 1,944  
Income (loss) per diluted share from continuing operations $ (0.01 ) $ 0.03   $ 0.03  
Income (loss) per diluted share from discontinued operations $ (0.01 ) $ (0.01 ) $ 0.09  

Income (loss) per diluted share

$ (0.02 ) $ 0.01   $ 0.13  
 

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 year, 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 first 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.

Contacts

PAR Technology Corporation
Christopher R. Byrnes, 315-738-0600 ext. 6226
cbyrnes@partech.com
www.partech.com

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Contacts

PAR Technology Corporation
Christopher R. Byrnes, 315-738-0600 ext. 6226
cbyrnes@partech.com
www.partech.com