EX-99.1 2 ex99-1.txt Exhibit 99.1 Press Release dated July 28, 2009. RELEASE: NEW HARTFORD, NY, July 28, 2009 CONTACT: Christopher R. Byrnes (315) 738-0600 ext. 226 cbyrnes@partech.com, www.partech.com PAR TECHNOLOGY CORPORATION -REPORTS SECOND QUARTER RESULTS- -------------------------------------------------------------------------------- NEW HARTFORD, NY, PAR TECHNOLOGY CORPORATION (NYSE:PTC) New Hartford, NY--July 28, 2009--PAR Technology Corporation (NYSE: PTC) today announced results for the second quarter ended June 30, 2009. PAR reported second quarter revenues of $54.5 million, a 4.8% decrease from the $57.2 million reported in the same period a year ago. Net income of $238,000 was reported for the second quarter 2009, compared with net income of $674,000 in the second quarter of 2008. Diluted earnings per share were $0.02 for the second quarter of 2009, compared to diluted earnings per share of $0.05 for the second quarter of last year. For the six months ended June 30, 2009, PAR reported revenues of $114.9 million, a 5.1% increase from the $109.3 million reported one year ago. The Company reported net income of $485,000 for the first six months of 2009 versus a net loss of $71,000 reported for the first six months of 2008 that resulted in earnings per diluted share of $0.03 in 2009 and $0.00 per diluted share over the same period in 2008. John W. Sammon, PAR Chairman & CEO commented, "Overall, we experienced steady performance in this difficult economic environment. A few sectors of our business struggled while the remaining filled in to achieve our results. We believe the steps taken over the last year across all our business lines have enabled us to put the Company on solid footing allowing future growth as the economy recovers." Sammon added, "Our Springer-Miller subsidiary (hotels/resorts/spas) continued to be the most impacted by the current recession, especially in high end resort markets. Sales to the independent table-serve market continue to be challenging in this economic environment. Fortunately, we have seen continued strength in certain segments of the quick-serve restaurant market which traditionally account for the largest portion of our total business. PAR's government business again provided a strong foundation for our business by delivering a solid quarterly performance. Finally, our Logistics Management business continued to show promise as we added important new accounts in the emerging "cold chain" market." 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 creates and markets products that help hospitality operators around the world to better manage money, materials, people and the guest experience. PAR has provided hardware, software and services to the world's largest restaurant chains and their franchisees for almost 30 years. Today the Company's extensive offering includes technology solutions for the full spectrum of hospitality operations, from boutique hotels and independent table service restaurants to international QSR chains, all backed by PAR's global service network. The Company has over 50,000 installations in 105 countries worldwide. PAR is also a leader in providing computer-based system design and engineering services to the Department of Defense and various federal agencies. Through PAR Logistics Management Systems, the Company is a provider of best of breed integrated solutions for shipping asset management and tracking. PAR Technology Corporation's stock is traded on the New York Stock Exchange under the symbol PTC. For more information visit the Company's website at www.partech.com. PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) (unaudited) June 30, December 31, 2009 2008 --------- ----------- Assets Current assets: Cash and cash equivalents ....................... $ 8,103 $ 6,227 Accounts receivable-net ......................... 38,310 53,582 Inventories-net ................................. 41,875 41,132 Income tax refunds .............................. 240 208 Deferred income taxes ........................... 5,273 5,301 Other current assets ............................ 2,659 3,588 --------- --------- Total current assets ........................ 96,460 110,038 Property, plant and equipment - net .................. 6,737 6,879 Deferred income taxes ................................ 989 1,525 Goodwill ............................................. 26,005 25,684 Intangible assets - net .............................. 7,604 8,251 Other assets ......................................... 1,583 1,611 --------- --------- Total Assets .............................. $ 139,378 $ 153,988 ========= ========= Liabilities and Shareholders' Equity Current liabilities: Current portion of long-term debt ............... $ 2,830 $ 1,079 Borrowings under lines of credit ................ 5,500 8,800 Accounts payable ................................ 10,759 15,293 Accrued salaries and benefits ................... 7,938 8,360 Accrued expenses ................................ 2,752 3,962 Customer deposits ............................... 2,276 6,157 Deferred service revenue ........................ 14,363 16,318 --------- --------- Total current liabilities ................... 46,418 59,969 --------- --------- Long-term debt ....................................... 3,600 5,852 --------- --------- Other long-term liabilities .......................... 1,867 1,910 --------- --------- Shareholders' Equity: Preferred stock, $.02 par value, 1,000,000 shares authorized ................... -- -- Common stock, $.02 par value, 29,000,000 shares authorized; 16,258,195 and 16,189,718 shares issued; 14,605,440 and 14,536,963 outstanding ........ 325 324 Capital in excess of par value .................. 40,733 40,173 Retained earnings ............................... 53,153 52,668 Accumulated other comprehensive loss ............ (1,209) (1,399) Treasury stock, at cost, 1,652,755 shares ....... (5,509) (5,509) --------- --------- Total shareholders' equity .................. 87,493 86,257 --------- --------- Total Liabilities and Shareholders' Equity $ 139,378 $ 153,988 ========= =========
PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) For the three months For the six months ended June 30, ended June 30, -------------------------------- -------------------------------- 2009 2008 2009 2008 -------------- -------------- -------------- -------------- Net revenues: Product ...................................... $ 17,178 $ 20,751 $ 37,415 $ 37,648 Service ...................................... 19,065 17,729 39,046 34,144 Contract ..................................... 18,216 18,754 38,466 37,549 -------------- -------------- -------------- -------------- 54,459 57,234 114,927 109,341 -------------- -------------- -------------- -------------- Costs of sales: Product ...................................... 11,485 12,612 24,553 22,037 Service ...................................... 13,385 12,877 27,862 25,360 Contract ..................................... 17,227 17,713 36,463 35,553 -------------- -------------- -------------- -------------- 42,097 43,202 88,878 82,950 -------------- -------------- -------------- -------------- Gross margin ........................... 12,362 14,032 26,049 26,391 -------------- -------------- -------------- -------------- Operating expenses: Selling, general and administrative .......... 8,647 8,742 18,242 17,803 Research and development ..................... 3,048 3,890 6,357 8,011 Amortization of identifiable intangible assets 368 389 733 779 -------------- -------------- -------------- -------------- 12,063 13,021 25,332 26,593 -------------- -------------- -------------- -------------- Operating income (loss) ........................... 299 1,011 717 (202) Other income, net ................................. 156 229 263 543 Interest expense .................................. (82) (121) (222) (470) -------------- -------------- -------------- -------------- Income (loss) before provision for income taxes 373 1,119 758 (129) (Provision) benefit for income taxes .............. (135) (445) (273) 58 -------------- -------------- -------------- -------------- Net income (loss) ................................. $ 238 $ 674 $ 485 $ (71) ============== ============== ============== ============== Earnings (loss) per share Basic ........................................ $ .02 $ .05 $ .03 $ (.00) Diluted ...................................... $ .02 $ .05 $ .03 $ (.00) Weighted average shares outstanding Basic ........................................ 14,501 14,394 14,487 14,386 ============== ============== ============== ============== Diluted ...................................... 14,787 14,798 14,757 14,386 ============== ============== ============== ==============