PAR Technology Corporation Announces 2013 First Quarter Results from Continuing Operations

PAR Technology Corporation Announces 2013 First Quarter Results from Continuing Operations

NEW HARTFORD, N.Y.--(BUSINESS WIRE)-- PAR Technology Corporation (NYS: PAR) today announced results for the first quarter ended March 31, 2013. The Company reported first quarter revenues of $66.7 million and a net loss from continuing operations of $369,000 or $0.02 net loss per share. This compares with prior year first quarter revenue of $55.6 million and net income from continuing operations of $1.0 million or $0.07 per diluted share. On a non-GAAP basis, the Company's net income from continuing operations for the first quarter was $178,000 or $0.01 per diluted share. These non-GAAP results exclude specific charges primarily related to severance and legal costs incurred in the quarter.

"During the first quarter we increased revenues by 20% over the prior year's quarter with both of our business segments showing growth. In particular we had significant revenue growth with our newest hardware offering for restaurants and also realized a 33% growth in contract revenues from last year's corresponding quarter," said PAR Technology President and Chief Executive Officer Ronald J. Casciano. "We will continue to take the necessary steps to sharpen our focus on our core businesses and better position PAR to capitalize upon our competitive strengths in hospitality technology and Government I/T services. Our strong market presence, innovative software and hardware products, customer service and industry leading domain expertise will continue to differentiate PAR from other providers. Our solid balance sheet will support the execution of our strategies and will position us for growth for the remainder of 2013 and beyond."


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 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 4:30 p.m. eastern time on May 1, 2013, during which the Company's management will discuss the financial results for the first quarter of 2013. If you would like to participate in this conference please call 866-318-8615 approximately 10 minutes before the call is scheduled to begin and use the PAR pass code 14665237. 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 May 8, 2013 or dial 888-286-8010 and use the Pass Code number 17179887 until May 8, 2013 as well.

PAR TECHNOLOGY CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

March 31,

December 31,

Assets

2013

2012

Current assets:

Cash and cash equivalents

$

14,121

$

19,475

Accounts receivable-net

28,137

29,890

Inventories-net

25,835

26,172

Deferred income taxes

12,451

11,037

Other current assets

3,492

3,236

Escrow receivable

828

828

Total current assets

84,864

90,638

Property, plant and equipment - net

5,588

5,857

Deferred income taxes

5,726

6,280

Goodwill

6,852

6,852

Intangible assets - net

12,316

11,747

Other assets

2,605

2,391

Total Assets

$

117,951

$

123,765

Liabilities and Shareholders' Equity

Current liabilities:

Current portion of long-term debt

$

161

$

159

Accounts payable

16,393

21,216

Accrued salaries and benefits

6,544

6,397

Accrued expenses

2,542

4,467

Customer deposits

885

1,380

Deferred service revenue

14,789

12,522

Income taxes payable

288

547

Total current liabilities

41,602

46,688

Long-term debt

1,043

1,084

Other long-term liabilities

3,429

3,030

Liabilities of discontinued operations

104

141

Total liabilities

46,178

50,943

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;

17,043,128 and 17,038,405 shares issued;

15,335,441 and 15,330,718 outstanding

341

341

Capital in excess of par value

43,313

43,661

Retained earnings

34,374

34,758

Accumulated other comprehensive loss

(421

)

(104

)

Treasury stock, at cost, 1,707,687 and 1,707,687 shares

(5,834

)

(5,834

)

Total shareholders' equity

71,773

72,822

Total Liabilities and Shareholders' Equity

$

117,951

$

123,765

PAR TECHNOLOGY CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

For the months

ended March 31,

2013

2012

Net revenues:

Product

$

23,916

$

20,170

Service

16,020

15,379

Contract

26,738

20,044

66,674

55,593

Costs of sales:

Product

16,473

10,977

Service

11,552

10,565

Contract

25,479

18,983

53,504

40,525

Gross margin

13,170

15,068

Operating expenses:

Selling, general and administrative

10,205

10,143

Research and development

4,140

3,549

Amortization of identifiable intangible assets

-

153

14,345

13,845

Operating income (loss) from continuing operations

(1,175

)

1,223

Other income (expense), net

(34

)

573

Interest expense

(13

)

(21

)

Income (loss) from continuing operations before provision for income taxes

(1,222

)

1,775

Benefit (provision) for income taxes

853

(740

)

Income (loss) from continuing operations

(369

)

1,035

Discontinued operations

Income (loss) on discontinued operations (net of tax)

(15

)

1,430

Net Income (loss)

$

(384

)

$

2,465

Basic Earnings per Share:

Income (loss) from continuing operations

(.02

)

0.07

Income (loss) from discontinued operations

(.00

)

0.09

Net Income (loss)

$

(.03

)

$

0.16

Diluted Earnings per Share:

Income (loss) from continuing operations

(.02

)

0.07

Income (loss) from discontinued operations

(.00

)

0.09

Net Income (loss)

$

(.03

)

$

0.16

Weighted average shares outstanding

Basic

15,154

15,083

Diluted

15,154

15,162

PAR TECHNOLOGY CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(in thousands, except per share data)

For the three months ended March 31, 2013

Reported

basis

(GAAP)

Adjustments

Comparable

basis (Non-

GAAP)

For the three

months ended

March 31, 2012

Net revenues

$

66,674

-

$

66,674

$

55,593

Costs of sales

53,504

-

53,504

40,525

Gross Margin

13,170

-

13,170

15,068

Operating Expenses

Selling, general and administrative

10,205

772

9,433

10,143

Research and development

4,140

106

4,034

3,549

Amortization of identifiable intangible assets

-

-

-

153

Total operating expenses

14,345

878

13,467

13,845

Operating income (loss) from continuing operations

(1,175

)

878

(297

)

1,223

Other income (expense), net

(34

)

-

(34

)

573

Interest expense

(13

)

-

(13

)

(21

)

Income (loss) from continuing operations before provision for income taxes

(1,222

)

878

(344

)