EX-99.1 2 ex99_1.htm EXHIBIT 99.1
Exhibit 99.1
Press Release dated October 30, 2013.
 
 
FOR RELEASE:
 
CONTACT:
New Hartford, NY, October 30, 2013
 
Christopher R. Byrnes (315) 738-0600 ext. 6226
cbyrnes@partech.com,  www.partech.com
 
PAR TECHNOLOGY CORPORATION ANNOUNCES
2013 THIRD QUARTER RESULTS FROM CONTINUING OPERATIONS

New Hartford, NY- October 30, 2013 – PAR Technology Corporation (NYSE: PAR) today announced results for the third quarter ended September 30, 2013.  PAR reported revenues from continuing operations of $55.5 million and net income of $445,000 or $0.03 earnings per diluted share.  This compares to revenue of $61.1 million and net income of $1.3 million or $0.09 earnings per share for the third quarter of 2012.
 
Commenting on the third quarter, Ronald J. Casciano, Chief Executive Officer & President, stated, “Overall the third quarter was challenging for our Company, but progress is being made on new product development and in adding incremental business in specific hospitality business lines. In our Government business we have identified additional opportunities with specific ISR (Intelligence, Surveillance & Reconnaissance) programs as demonstrated by the recently awarded $85 million U.S. Army contract. However, the timing of revenue from these contracts is often difficult to predict, as evidenced by the 17% drop in contract revenue for the quarter compared to same period last year. We expect improving business conditions into calendar year 2014, and we continue to invest in products and services that offer long-term organic growth opportunities that are consistent with our business strategy.”
 
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’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 10:00 a.m. (Eastern) on October 30, 2013, during which the Company’s management will discuss the financial results for the third quarter of 2013. If you would like to participate in this conference call, please dial 1-866-515-2912 approximately 10 minutes before the scheduled beginning and use the PAR passcode 99695171. 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. If you are unable to participate in the conference call, an automatic replay will be available on the World Wide Web via www.partech.com through November 6, 2013 or via telephone by dialing 1-888-286-8010 and using the passcode 33010704.
PAR TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)

 
  
September 30,
    
December 31,
  
Assets
  
2013
    
2012
  
Current assets:
  
   
 
Cash and cash equivalents
  
$
10,102
    
$
19,475
  
Accounts receivable-net
    
26,023
      
29,890
  
Inventories-net
    
25,299
      
26,172
  
Deferred income taxes
    
14,367
      
11,037
  
Income taxes receivable
    
463
      
-
  
Other current assets
    
3,723
      
3,236
  
Total current assets
    
79,977
      
89,810
  
Property, plant and equipment - net
    
5,507
      
5,857
  
Deferred income taxes
    
3,958
      
6,280
  
Goodwill
    
6,852
      
6,852
  
Intangible assets - net
    
14,069
      
11,747
  
Other assets
    
2,614
      
3,219
  
Total Assets
  
$
112,977
    
$
123,765
  
Liabilities and Shareholders’ Equity
                
Current liabilities:
                
Current portion of long-term debt
  
$
164
    
$
159
  
Accounts payable
    
12,425
      
21,216
  
Accrued salaries and benefits
    
6,404
      
6,397
  
Accrued expenses
    
2,176
      
4,467
  
Customer deposits
    
939
      
1,380
  
Deferred service revenue
    
13,713
      
12,522
  
Income taxes payable
    
-
      
547
  
Total current liabilities
    
35,821
      
46,688
  
Long-term debt
    
960
      
1,084
  
Other long-term liabilities
    
3,592
      
3,030
  
Liabilities of discontinued operations
    
-
      
141
  
Total liabilities
    
40,373
      
50,943
  
Shareholders’ Equity:
                
Preferred stock, $.02 par value, 1,000,000 shares authorized
    
-
      
-
  
Common stock, $.02 par value, 29,000,000 shares authorized; 17,229,425 and 17,038,405 shares issued;15,521,316 and 15,330,718 outstanding
    
344
      
341
  
Capital in excess of par value
    
43,628
      
43,661
  
Retained earnings
    
34,871
      
34,758
  
Accumulated other comprehensive loss
    
(403
)
    
(104
)
Treasury stock, at cost, 1,708,109 and 1,707,687 shares
    
(5,836
)
    
(5,834
)
Total shareholders’ equity
    
72,604
      
72,822
  
Total Liabilities and Shareholders’ Equity
  
$
112,977
    
$
123,765
  
 
PAR TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
 (in thousands, except per share amounts)

 
  
For the three months ended September 30,
    
For the three months ended September 30,
    
For the nine months ended September 30,
    
For the nine months ended September 30,
  
 
  
2013
    
2012
    
2013
    
2012
  
Net revenues:
  
   
   
   
 
Product
  
$
22,673
    
$
22,340
    
$
68,846
    
$
62,652
  
Service
    
14,697
      
16,720
      
46,031
      
48,113
  
Contract
    
18,168
      
21,992
      
66,851
      
67,965
  
 
    
55,538
      
61,052
      
181,728
      
178,730
  
Costs of sales:
                                
Product
    
15,492
      
14,681
      
46,806
      
39,699
  
Service
    
11,042
      
11,775
      
33,498
      
33,813
  
Contract
    
16,649
      
20,584
      
62,440
      
64,151
  
 
    
43,183
      
47,040
      
142,744
      
137,663
  
Gross margin
    
12,355
      
14,012
      
38,984
      
41,067
  
Operating expenses:
                                
Selling, general and administrative
    
8,616
      
9,410
      
28,315
      
28,844
  
Research and development
    
3,730
      
3,309
      
11,576
      
9,947
  
Amortization of identifiable intangible assets
    
-
      
138
      
-
      
441
  
 
    
12,346
      
12,857
      
39,891
      
39,232
  
Operating income (loss) from continuing operations
    
9
      
1,155
      
(907
)
    
1,835
  
Other income, net
    
152
      
233
      
373
      
440
  
Interest expense
    
(16
)
    
(22
)
    
(42
)
    
(64
)
Income (loss) from continuing operations before provision for income taxes
    
145
      
1,366
      
(576
)
    
2,211
  
Provision (benefit) for income taxes
    
(300
)
    
62
      
(900
)
    
383
  
Income from continuing operations
    
445
      
1,304
      
324
      
1,828
  
Discontinued operations
                                
Income (loss) on discontinued operations (net of tax)
    
(5
)
    
50
      
(211
)
    
1,470
  
Net Income
  
$
440
    
$
1,354
    
$
113
    
$
3,298
  
Basic Earnings per Share:
                                
Income from continuing operations
    
0.03
      
0.09
      
0.02
      
0.12
  
Income (loss) from discontinued operations
    
(0.00
)
    
0.00
      
(0.01
)
    
0.10
  
Net Income
  
$
0.03
    
$
0.09
    
$
0.01
    
$
0.22
  
Diluted Earnings per Share:
                                
Income from continuing operations
    
0.03
      
0.09
      
0.02
      
0.12
  
Income (loss) from discontinued operations
    
(0.00
)
    
0.00
      
(0.01
)
    
0.10
  
Net Income
  
$
0.03
    
$
0.09
    
$
0.01
    
$
0.22
  
Weighted average shares outstanding
                                
Basic
    
15,405
      
15,131
      
15,228
      
15,105
  
Diluted
    
15,446
      
15,207
      
15,253
      
15,179
  
 
PAR TECHNOLOGY CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)

 
  
For the nine months ended September 30, 2013
  
 
  
Reported basis
(GAAP)
    
Adjustments
    
Comparable basis
(Non-GAAP)
    
For the nine months ended September 30, 2012
  
 
  
   
   
   
 
Net revenues
  
$
181,728
      
-
    
$
181,728
    
$
178,730
  
Costs of sales
    
142,744
      
-
      
142,744
      
137,663
  
Gross Margin
    
38,984
      
-
      
38,984
      
41,067
  
 
                                
Operating Expenses
                                
Selling, general and administrative
    
28,315
      
772
      
27,543
      
28,844
  
Research and development
    
11,576
      
106
      
11,470
      
9,947
  
Amortization of identifiable intangible assets
    
-
      
-
      
-
      
441
  
Total operating expenses
    
39,891
      
878
      
39,013
      
39,232
  
 
                                
Operating income (loss) from continuing operations
    
(907
)
    
878
      
(29
)
    
1,835
  
Other income, net
    
373
      
-
      
373
      
440
  
Interest expense
    
(42
)
    
-
      
(42
)
    
(64
)
Income (loss) from continuing operations before provision for income taxes
    
(576
)
    
878
      
302
      
2,211
  
Provision (benefit) for income taxes
    
(900
)
    
331
      
(569
)
    
383
  
Income from continuing operations
  
$
324
    
$
547
    
$
871
    
$
1,828
  
Income (loss) from discontinued operations, (net of tax)
  
$
(211
)
          
$
(211
)
  
$
1,470
  
Net Income
  
$
113
            
$
660
    
$
3,298
  
Income per diluted share from continuing operations
  
$
0.02
            
$
0.06
    
$
0.12
  
Income (loss) per diluted share from discontinued operations
  
$
(0.01
)
          
$
(0.01
)
  
$
0.10
  
Income per diluted share
  
$
0.01
            
$
0.04
    
$
0.22
  

The Company reports its financial results in accordance with GAAP, which refers financial information presented in accordance with generally accepted accounting principles in the United States.  However, non-GAAP adjusted financial measures, as defined in the reconciliation table above, are provided herein because management uses such measures in evaluating the results of the continuing operations of the Company and believes this information provides investors better insight into underlying business trends and performance.  Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.
 
During the year, the Company recorded total charges of $878,000.  The most significant of the charges was $607,000 of separation related costs.  In addition to this charge, the Company incurred legal costs of $271,000 associated with an intellectual property matter that was settled during the first quarter.  The aforementioned charges, along with an associated adjustment to the Company’s provision for income taxes have been excluded in the Company’s non-GAAP measures because they are considered non-recurring in nature and are quantitatively and qualitatively different from the Company’s core operations during any particular period.