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

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,

Assets

2012

2011

Current assets:

Cash and cash equivalents

$

19,475

$

7,742

Accounts receivable-net

29,890

30,680

Inventories-net

26,172

25,260

Deferred income taxes

11,184

10,240

Other current assets

3,236

3,088

Escrow receivable

828

-

Total current assets

90,785

77,010

Property, plant and equipment - net

5,857

5,259

Deferred income taxes

6,133

5,605

Goodwill

6,852

6,852

Intangible assets - net

11,747

15,888

Other assets

2,391

2,147

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 payable

21,216

15,773

Accrued salaries and benefits

6,397

7,002

Accrued expenses

4,467

2,609

Customer deposits

1,380

1,137

Deferred service revenue

12,522

10,412

Income taxes payable

547

138

Total current liabilities

46,688

38,565

Long-term debt

1,084

1,249

Other long-term liabilities

3,030

2,837

Liabilities of discontinued operations

141

925

Total liabilities

50,943

43,576

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 outstanding

341

337

Capital in excess of par value

43,661

42,990

Retained earnings

34,758

35,073

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 ended

For the year ended

December 31,

December 31,

2012

2011

2012

2011

Net revenues:

Product

$

27,872

$

22,121

$

90,524

$

90,998

Service

18,031

17,890

66,144

69,484

Contract

20,526

20,105

88,491

68,941

66,429

60,116

245,159

229,423

Costs of sales:

Product

25,601

14,991

65,300

57,878

Service

12,260

12,561

46,073

56,736

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 administrative

11,632

8,044

40,476

35,774

Research and development

3,750

3,369

13,697

13,797

Impairment of goodwill and intangible assets

300

-

300

20,843

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, net

436

311

876

203

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)