PAR Technology Corporation Announces 2012 Fourth Quarter and Year End Results from Continuing Operat

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PAR Technology Corporation Announces 2012 Fourth Quarter and Year End Results from Continuing Operations

NEW HARTFORD, N.Y.--(BUSINESS WIRE)-- PAR Technology Corporation (NYS: PAR) today announced results for the fourth quarter and year ended December 31, 2012. The Company reported fourth quarter revenues of $66.4 million and a net loss from continuing operations of $3.6 million or $0.24 loss per share. This compares with prior year fourth quarter revenue of $60.1 million and net income from continuing operations of $1.8 million or $0.12 per diluted share. On a non-GAAP basis, the Company's net income from continuing operations for the fourth quarter was $1.2 million or $0.08 per diluted share. These non-GAAP results exclude special charges totaling $7.6 million during the fourth quarter primarily related to the Company's restructuring of its Hospitality product portfolio, as well as certain legal costs.


For fiscal year 2012, PAR reported total revenues from continuing operations of $245.2 million, a 7% increase from the $229.4 million reported for fiscal year 2011. The Company reported GAAP net loss from continuing operations of $1.8 million or $0.12 loss per share, compared to GAAP net loss from continuing operations of $13.4 million or $0.89 loss per share for fiscal year 2011. On a non-GAAP basis, excluding special charges, net income from continuing operations for the year was $3.0 million or $0.20 per diluted share, compared to net income from continuing operations of $5.5 million or $0.36 per diluted share for fiscal year 2011, also on a non-GAAP basis. A reconciliation and description of non-GAAP financial measures to their comparable GAAP financial measures are included in the tables following this news release.

"Even with a known reduction of $18 million in volume from our largest customer, consolidated revenues grew 7% for the year 2012. This was despite the fact the revenue streams associated with our new ATRIO® software and newly released hardware platforms are in their infancy," commented Paul B. Domorski, Chairman and Chief Executive Officer of PAR Technology Corporation. "Most of the charge in the quarter was non-cash and related to the reduction in the capitalized value of certain software development costs, enabling us to redirect resources to areas that will have the greatest impact on our results."

Domorski concluded, "We continue to enhance our ATRIO, SureCheck™ and PixelPoint® software solutions and have redesigned all of our hardware product offerings. We expect these efforts will provide new opportunities in 2013 and beyond. Our Government segment exceeded expectations in 2012 and we anticipate continued growth. As a Company, we will continue to apply a disciplined approach, investing only in those areas that will differentiate our Company going forward."

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 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 time on February 14, 2013, during which the Company's management will discuss the financial results for the fourth quarter of 2012. If you would like to participate in this conference please call 866-730-5764 approximately 10 minutes before the call is scheduled to begin and use the PAR pass code 62502630. 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 February 21, 2013 or dial 888-286-8010 and use the Pass Code number 33391322 until February 21, 2013 as well.

      
 

PAR TECHNOLOGY CORPORATION

CONSOLIDATED BALANCE SHEETS

 (in thousands, except share amounts)

 
December 31,
Assets20122011
Current assets:
Cash and cash equivalents$19,475$7,742
Accounts receivable-net29,89030,680
Inventories-net26,17225,260
Deferred income taxes11,18410,240
Other current assets3,2363,088
Escrow receivable 828  - 

Total current assets

90,78577,010
Property, plant and equipment - net5,8575,259
Deferred income taxes6,1335,605
Goodwill6,8526,852
Intangible assets - net11,74715,888
Other assets2,3912,147
Assets of discontinued operations -  3,182 
Total Assets$123,765 $115,943 
Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt$159$1,494
Accounts payable21,21615,773
Accrued salaries and benefits6,3977,002
Accrued expenses4,4672,609
Customer deposits1,3801,137
Deferred service revenue12,52210,412
Income taxes payable 547  138 
Total current liabilities46,68838,565
Long-term debt1,0841,249
Other long-term liabilities3,0302,837
Liabilities of discontinued operations141 925 
Total liabilities50,94343,576
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;
17,038,405 and 16,863,868 shares issued;
15,330,718 and 15,156,584 outstanding341337
Capital in excess of par value43,66142,990
Retained earnings34,75835,073
Accumulated other comprehensive loss(104)(201)
Treasury stock, at cost, 1,707,687 and 1,707,284 shares (5,834) (5,832)
Total shareholders' equity 72,822  72,367 
Total Liabilities and Shareholders' Equity$123,765 $115,943 
 
 

See accompanying notes to consolidated financial statements

 
 
        
 

PAR TECHNOLOGY CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

 (in thousands, except per share amounts)

 
For the three months endedFor the year ended
December 31,December 31,
2012  20112012  2011
Net revenues:
Product$27,872$22,121$90,524$90,998
Service18,03117,89066,14469,484
Contract 20,526  20,105  88,491  68,941 
 66,429  60,116  245,159  229,423 
 
Costs of sales:
Product25,60114,99165,30057,878
Service12,26012,56146,07356,736
Contract 18,690  18,535  82,841  64,347 
 56,551  46,087  194,214  178,961 
Gross margin 9,878  14,029  50,945  50,462 
Operating expenses:
Selling, general and administrative11,6328,04440,47635,774
Research and development3,7503,36913,69713,797
Impairment of goodwill and intangible assets300-30020,843
Amortization of identifiable intangible assets 14  173  455  840 
 15,696  11,586  54,928  71,254 
 
Operating income (loss) from continuing operations(5,818)2,443(3,983)(20,792)
Other income, net436311876203
Interest expense (5) (48) (69) (211)
 
Income (loss) from continuing operations before provision for income taxes(5,387)2,706(3,176)(20,800)
(Provision) benefit for income taxes 1,797  (878) 1,414  7,440 
Income (loss) from continuing operations(3,590)1,828(1,762)(13,360)
Discontinued operations
Income (loss) on discontinued operations (net of tax) (23) (1,119) 1,447  (2,172)
Net income (loss)$(3,613)$709 $(315)$(15,532)
Basic:
Income (loss) from continuing operations(0.24)0.12(0.12)(0.89)
Income (loss) from discontinued operations (.00) (0.07) 0.10  (0.15)
Net income (loss)
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