8-K 1 form8k072704.txt FORM 8K JULY 27, 2004 SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 27, 2004 PAR TECHNOLOGY CORPORATION -------------------------- (Exact name of registrant as specified in its charter) Delaware 1-09720 16-1434688 -------- ------- ---------- (State or other (Commission File (I.R.S. Employer jurisdiction of Number) incorporation or organization) Identification Number) PAR Technology Park 8383 Seneca Turnpike New Hartford, NY 13413-4991 ------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (315) 738-0600 Not Applicable -------------- (Former Name or Former Address, if changed since Last Report) Item 12. Results of Operations and Financial Condition. (a) The information, including Exhibits attached hereto, in this Current Report is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities and Exchange Act of 1934, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing. (b) On July 27, 2004, PAR Technology Corporation issued a press release announcing its results of operation for the quarterly period ending June 30, 2004. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. 99.1 Press Release dated July 27, 2004. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. PAR TECHNOLOGY CORPORATION -------------------------- (Registrant) Date: July 27, 2004 /s/RONALD J. CASCIANO --------------------------------------- Ronald J. Casciano Vice President, Chief Financial Officer and Treasurer EXHIBIT INDEX Exhibit Number Description -------------- ----------- 99.1 Press Release dated July 27, 2004. Exhibit 99.1 PAR TECHNOLOGY CORPORATION -REPORTS RECORD QUARTERLY RESULTS- Revenues Rise 34%, Highest Quarterly Revenue in Company's History Net Income Grows more than 300% EPS Rises to $0.14 versus $0.04 a year ago ---------------------------------------------------------------- NEW HARTFORD, NY, PAR TECHNOLOGY CORPORATION (NYSE:PTC) New Hartford, NY--July 27, 2004--PAR Technology Corporation (NYSE:PTC - News) today announced record results for the second quarter ended June 30, 2004. PAR reported second quarter revenues of $42.9 million, a 34% increase from the $32 million reported in the same period a year ago. Net income for the second quarter 2004 was $1.3 million or $0.14 diluted earnings per share. This compares to $308,000 net income and $0.04 diluted earnings per share in the second quarter 2003. For the six months ended June 30, 2004, PAR Technology Corporation reported revenues of $80.8 million, a 29% increase from the $62.6 million reported one year ago. The Company also reported net income for the first six months of 2004 of $2 million or $0.22 diluted earnings per share. This compares to net income of $537,000 and $0.06 diluted earnings per share for the first six months of 2003. John W. Sammon, PAR Chairman and CEO commented on the results "It was a very good quarter in all respects. The nearly $43 million in revenue is the highest revenue of any quarter in our Company's history. Our record results came from increases in sales of both Hospitality Technology solutions and services as well as increases in our Government business. I am proud of our organization as we continue to execute well, and maintain our strong position in excellent and diversified markets. Sammon concluded, "I am inspired by the accomplishments of the entire PAR team which resulted in the record results for the quarter. PAR will continue to focus upon improving our returns on capital and, ultimately, shareholder returns by investing in our selected markets and products." Certain Company information in this release or 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 -------------------- PAR Technology Corporation develops, markets and supports hardware and software products that improve the ability of business professionals to make timely, fact-based business decisions. The Company is the world's largest supplier of Point-of-Sale systems to the quick service restaurant market with over 35,000 systems installed in over 95 countries. In addition PAR is a leader in providing computer based system design and engineering services to the Department of Defense and Federal Government Agencies. PAR Technology Corporation's stock is traded on the New York Stock Exchange under the symbol PTC. For additional information visit PAR's website at www.partech.com.
PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands Except Share Amounts) (Unaudited) June 30, December 31, 2004 2003 -------- --------- Assets Current Assets: Cash .................................................. $ 2,619 $ 1,467 Accounts receivable-net ............................... 29,462 31,876 Inventories-net ....................................... 30,379 31,894 Deferred income taxes ................................. 6,320 6,486 Other current assets .................................. 2,086 2,472 Total assets of discontinued operation ................ -- 20 -------- -------- Total current assets .............................. 70,866 74,215 Property, plant and equipment - net ........................ 7,416 7,240 Deferred income taxes ...................................... 2,019 2,857 Other assets ............................................... 3,370 2,855 -------- -------- $ 83,671 $ 87,167 ======== ======== Liabilities and Shareholders' Equity Current Liabilities: Current portion of long-term debt ..................... $ 92 $ 89 Borrowings under lines of credit ...................... -- 6,989 Accounts payable ...................................... 10,162 8,301 Accrued salaries and benefits ......................... 5,985 5,461 Accrued expenses ...................................... 2,073 2,471 Deferred service revenue .............................. 5,321 5,947 Total liabilities of discontinued operation ........... 429 578 -------- -------- Total current liabilities ......................... 24,062 29,836 -------- -------- Long-term debt ............................................. 2,045 2,092 -------- -------- Commitments and contingent liabilities Shareholders' Equity: Preferred stock, $.02 par value, 1,000,000 shares authorized ......................... -- -- Common stock, $.02 par value, 19,000,000 shares authorized; 10,065,287 and 9,966,062 shares issued; 8,654,600 and 8,555,375 outstanding ................ 201 199 Capital in excess of par value ........................ 30,270 29,761 Retained earnings ..................................... 34,423 32,375 Accumulative other comprehensive loss ................. (277) (43) Treasury stock, at cost, 1,410,687 shares ............. (7,053) (7,053) -------- -------- Total shareholders' equity ........................ 57,564 55,239 -------- -------- $ 83,671 $ 87,167 ======== ========
PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In Thousands Except Per Share Amounts) (Unaudited) For the three months For the six months ended June 30, ended June 30, -------------------- -------------------- 2004 2003 2004 2003 -------- -------- -------- -------- Net revenues: Product ........................... $ 19,466 $ 13,059 $ 35,705 $ 25,412 Service ........................... 10,570 8,634 20,877 17,103 Contract .......................... 12,889 10,318 24,241 20,038 -------- -------- -------- -------- 42,925 32,011 80,823 62,553 -------- -------- -------- -------- Costs of sales: Product ........................... 13,231 8,528 24,268 16,590 Service ........................... 9,084 7,242 18,029 14,409 Contract .......................... 12,082 9,897 22,612 19,169 -------- -------- -------- -------- 34,397 25,667 64,909 50,168 -------- -------- -------- -------- Gross margin ................ 8,528 6,344 15,914 12,385 -------- -------- -------- -------- Operating expenses: Selling, general and administrative 5,245 4,700 10,261 9,111 Research and development .......... 1,302 1,262 2,645 2,421 -------- -------- -------- -------- 6,547 5,962 12,906 11,532 -------- -------- -------- -------- Operating income ....................... 1,981 382 3,008 853 Other income, net ...................... 187 313 398 389 Interest expense ....................... (46) (152) (119) (295) -------- -------- -------- -------- Income from continuing operations before provision for income taxes .... 2,122 543 3,287 947 Provision for income taxes ............. (810) (192) (1,239) (340) -------- -------- -------- -------- Income from continuing operations ...... 1,312 351 2,048 607 -------- -------- -------- -------- Discontinued operations: Loss from operations of discontinued component ......... -- (67) -- (109) Income tax benefit ................ -- 24 -- 39 -------- -------- -------- -------- Loss on discontinued operations ... -- (43) -- (70) -------- -------- -------- -------- Net income ............................. $ 1,312 $ 308 $ 2,048 $ 537 ======== ======== ======== ========
PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Continued) (In Thousands Except Per Share Amounts) (Unaudited) For the three months For the six months ended June 30, ended June 30, --------------------- --------------------- 2004 2003 2004 2003 --------- --------- --------- --------- Earnings per share: Basic: Income from continuing operations $ .15 $ .04 $ .24 $ .07 Loss from discontinued operations $ -- $ (.01) $ -- $ (.01) Net income ................ $ .15 $ .04 $ .24 $ .06 Diluted: Income from continuing operations $ .14 $ .04 $ .22 $ .07 Loss from discontinued operations $ -- $ -- $ -- $ (.01) Net income ................ $ .14 $ .04 $ .22 $ .06 Weighted average shares outstanding Basic ........................... 8,636 8,422 8,603 8,398 ========= ========= ========= ========= Diluted ......................... 9,192 8,765 9,156 8,766 ========= ========= ========= =========