PAR Technology Corporation Announces 2013 Second Quarter Results from Continuing Operations

PAR Technology Corporation Announces 2013 Second Quarter Results from Continuing Operations

NEW HARTFORD, N.Y.--(BUSINESS WIRE)-- PAR Technology Corporation (NYS: 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

)

-