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 | 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 | Adjustments | Comparable | For the six | ||||||||||||||
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 | ) | - | ||||||||||||||
