EX-99.1 2 ex99_1.htm EXHIBIT 99.1
Exhibit 99.1
FOR RELEASE:
  
NEW HARTFORD, NY, March 30, 2016
CONTACT:
  
Christopher R. Byrnes (315) 738-0600 ext. 6226
cbyrnes@partech.com,  www.partech.com

PAR TECHNOLOGY CORPORATION ANNOUNCES

2015 FOURTH QUARTER AND YEAR END RESULTS FROM CONTINUING OPERATIONS

 
·
Full Year 2015 Revenues of $229.0 million increase 5.1% over 2014
·
Fourth Quarter Revenues of $56.8 million declined 4.2% year-over-year
·
Fourth Quarter GAAP Earnings Per Share Reported at $0.08, compared to a loss of ($0.07) per share reported in Fourth Quarter 2014

New Hartford, NY- March 30, 2016 -- PAR Technology Corporation (NYSE: PAR) a leading provider of restaurant/retail management systems and Government contract services today announced results for the fourth quarter and year ended December 31, 2015.

Summary of Fiscal 2015 Fourth Quarter and Year End Financial Results From Continuing Operations

·
Revenue decreased 4.2% to $56.8 million, compared to $59.3 million in the fourth quarter of 2014 due to reductions in task orders surrounding the Eagle Intel-X contract quarter over quarter
·
GAAP net income from continuing operations in the fourth quarter of fiscal 2015 was $1.3 million, or $0.08 per diluted share, compared to net loss from continuing operations of ($1.0 million), or ($0.07) loss per share for the same period in 2014
·
Adjusted (non-GAAP) net income from continuing operations was $2.0 million, or $0.13 per diluted share, compared to adjusted (non-GAAP) net income from continuing operations of $1.8 million, or $0.11 per share, in the same period last year

·
Fiscal year 2015 revenues increased 5.1% to $229.0 million compared to $217.8 million reported in 2014
·
GAAP net income from continuing operations of $4.0 million or $0.26 per diluted share for fiscal 2015, compared to net income of $71,000 or $0.00 per diluted share reported for fiscal 2014
·
Adjusted (non-GAAP) net income from continuing operations was $6.1 million and $0.39 per diluted share compared to adjusted (non-GAAP) net income from continuing operations of $3.8 million or $0.24 per diluted share for 2014

A reconciliation and description of non-GAAP financial measures to their comparable GAAP financial measures are included in the tables following this news release.

“I am pleased to report improved fourth quarter and year end results.  Our restaurant technology business continues to see renewed strength from our Tier 1 customers, evidenced by the 6.6% product revenue growth in the fourth quarter when compared to the same period 2014.  We are seeing positive momentum with our cloud solutions, Brink POS® and SureCheck® within restaurants and retail/grocery enterprises and are encouraged by the growth in software and software related revenues in the quarter and for the year,” commented Karen E. Sammon, PAR’s President & CEO.  “PAR Government exceeded our internal plan for profit in the quarter while reporting lower revenues due to the higher than normal amount of task orders received in the fourth quarter 2014 that were not duplicated this year.  Our Government business ended the year with several new contract awards in the quarter and an improved backlog that provides a solid base for our 2016 plan.”
 
Sammon continued, “2015 was an important and transformational year for our Company.  Over the last twelve months we broadened our efficiencies as a company, continued to innovate with new technical solutions, strengthened our competitive position, divested an underperforming business unit and delivered improved results to our stakeholders.  As our Company’s new CEO, I am pleased with the operational, strategic and financial progress made by PAR throughout last year and remain keenly focused on enhancing shareholder value.”

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 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 35 years and offers technology solutions for the full spectrum of restaurant operations, from large global quick service chains and table service restaurants to fast casual and independent operators.  PAR’s products 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 mission services to the Department of Defense and various federal agencies.  Visit www.partech.com for more information.

###

There will be a conference call at 4:45 p.m. eastern time on March 30, 2016, during which the Company’s management will discuss the financial results for the fourth quarter of 2015.  If you would like to participate in this conference please call (866) 868-9502 approximately 10 minutes before the call is scheduled to begin, no passcode is necessary to access the call.  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.  In case you are unable to participate in the conference call, an automatic replay will be available on PAR’s website until April 6, 2016 or dial (855) 859-2056 and using conference ID 77961340 until April 6, 2016 as well.
 
PAR TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
(Unaudited)
 
   
December 31,
  
Assets
  
2015
    
2014
  
Current assets:
            
Cash and cash equivalents
  
$
8,024
    
$
9,867
  
Accounts receivable-net
    
29,530
      
29,674
  
Inventories-net
    
21,499
      
25,928
  
Deferred income taxes
    
6,741
      
4,512
  
Other current assets
    
3,808
      
4,018
  
Assets of discontinued operations
    
-
      
22,119
  
Total current assets
    
69,602
      
96,118
  
Property, plant and equipment - net
    
5,716
      
5,148
  
Note receivable
    
3,320
      
-
  
Deferred income taxes
    
11,038
      
11,357
  
Goodwill
    
11,051
      
11,051
  
Intangible assets - net
    
10,898
      
10,580
  
Other assets
    
3,687
      
3,043
  
Total Assets
  
$
115,312
    
$
137,297
  
Liabilities and Shareholders’ Equity
                
Current liabilities:
                
Current portion of long-term debt
  
$
2,103
    
$
3,173
  
Borrowings under line of credit
    
-
      
5,000
  
Accounts payable
    
11,729
      
19,258
  
Accrued salaries and benefits
    
5,727
      
5,726
  
Accrued expenses
    
6,705
      
6,492
  
Customer deposits and deferred revenue
    
10,819
      
11,630
  
Income taxes payable
    
279
      
475
  
Liabilities of discontinued operations
    
441
      
4,617
  
Total current liabilities
    
37,803
      
56,371
  
Long-term debt
    
566
      
2,566
  
Other long-term liabilities
    
8,883
      
8,847
  
Total liabilities
    
47,252
      
67,784
  
Commitments and contingencies
                
Shareholders’ Equity:
                
Preferred stock, $.02 par value, 1,000,000 shares authorized
    
-
      
-
  
Common stock, $.02 par value, 29,000,000 shares authorized; 17,352,198 and 17,274,708 shares issued, 15,644,729 and 15,566,599 outstanding at December 31, 2015 and 2014, respectively
    
347
      
346
  
Capital in excess of par value
    
45,753
      
44,854
  
Retained earnings
    
30,574
      
31,465
  
Accumulated other comprehensive loss
    
(2,778
)
    
(1,316
)
Treasury stock, at cost, 1,708,109 shares
   
(5,836
)
    
(5,836
)
Total shareholders’ equity
    
68,060
      
69,513
  
Total Liabilities and Shareholders’ Equity
  
$
115,312
    
$
137,297
  
 
PAR TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
 (in thousands, except per share amounts)
(Unaudited)
 
   
For the three months ended December 31,
    
For the year ended December 31,
  
   
2015
    
2014
    
2015
    
2014
  
Net revenues:
                        
Product
  
$
24,316
    
$
22,803
    
$
94,397
    
$
84,484
  
Service
    
12,067
      
12,151
      
46,754
      
45,690
  
Contract
    
20,414
      
24,329
      
87,852
      
87,689
  
     
56,797
      
59,283
      
229,003
      
217,863
  
Costs of sales:
                                
Product
    
18,057
      
16,327
      
68,192
      
58,889
  
Service
    
7,898
      
9,151
      
32,824
      
35,011
  
Contract
    
18,790
      
22,989
      
81,848
      
82,347
  
     
44,745
      
48,467
      
182,864
      
176,247
  
Gross margin
    
12,052
      
10,816
      
46,139
      
41,616
  
Operating expenses:
                                
Selling, general and administrative
    
7,287
      
6,478
      
28,276
      
28,974
  
Research and development
    
2,407
      
2,598
      
10,247
      
8,947
  
Acquisition amortization
    
241
      
248
      
987
      
279
  
     
9,935
      
9,324
      
39,510
      
38,200
  
Operating income from continuing operations
    
2,117
      
1,492
      
6,629
      
3,416
  
Other (expense) income, net
    
(742
)
    
260
      
(800
)
    
485
  
Interest expense
    
(56
)
    
(73
)
    
(308
)
    
(136
)
Income from continuing operations before provision for income taxes
    
1,319
      
1,679
      
5,521
      
3,765
  
Provision for income taxes
    
(30
)
    
(2,720
)
    
(1,500
)
    
(3,694
)
Income (Loss) from continuing operations
    
1,289
      
(1,041
)
    
4,021
      
71
  
Discontinued operations
                                
Loss on discontinued operations (net of tax)
    
(407
)
    
(993
)
    
(4,912
)
    
(3,722
)
Net Income (Loss)
  
$
882
    
$
(2,034
)
  
$
(891
)
  
$
(3,651
)
Basic Earnings per Share:
                                
Income (Loss) from continuing operations
    
0.08
      
(0.07
)
    
0.26
      
0.00
  
Loss from discontinued operations
    
(0.03
)
    
(0.06
)
    
(0.32
)
    
(0.24
)
Net Income (Loss)
  
$
0.06
    
$
(0.13
)
  
$
(0.06
)
  
$
(0.24
)
Diluted Earnings per Share:
                                
Income (Loss) from continuing operations
    
0.08
      
(0.07
)
    
0.26
      
0.00
  
Loss from discontinued operations
    
(0.03
)
    
(0.06
)
    
(0.32
)
    
(0.24
)
Net Income (Loss)
  
$
0.06
    
$
(0.13
)
  
$
(0.06
)
  
$
(0.24
)
Weighted average shares outstanding
                                
Basic
    
15,616
      
15,570
      
15,562
      
15,501
  
Diluted
    
15,732
      
15,570
      
15,666
      
15,582
  
 
PAR TECHNOLOGY CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(in thousands, except per share data)
(Unaudited)

   
For the three months ended December 31, 2015
    
For the three months ended December 31, 2014
  
   
Reported basis (GAAP)
    
Adjustments
    
Comparable basis (Non-GAAP)
    
Reported basis (GAAP)
    
Adjustments
    
Comparable basis (Non-GAAP)
  
                                     
Net revenues
  
$
56,797
      
-
      
56,797
    
$
59,283
      
-
      
59,283
  
Costs of sales
    
44,745
      
-
      
44,745
      
48,467
      
-
      
48,467
  
Gross Margin
    
12,052
      
-
      
12,052
      
10,816
      
-
      
10,816
  
                                                 
Operating Expenses
                                                
Selling, general and administrative
    
7,287
      
-
      
7,287
      
6,478
      
593
      
5,885
  
Research and development
    
2,407
              
2,407
      
2,598
      
-
      
2,598
  
Acquisition amortization
    
241
      
241
      
-
      
248
      
248
      
-
  
Total operating expenses
    
9,935
      
241
      
9,694
      
9,324
      
841
      
8,483
  
Operating income from continuing operations
    
2,117
      
241
      
2,358
      
1,492
      
841
      
2,333
  
Other (expense) income, net
    
(742
)
    
776
      
34
      
260
      
-
      
260
  
Interest expense
    
(56
)
    
26
      
(30
)
    
(73
)
    
-
      
(73
)
Income from continuing operations before provision for income taxes
    
1,319
      
1,043
      
2,362
      
1,679
      
841
      
2,520
  
Provision for income taxes
    
(30
)
    
(291
)
    
(321
)
    
(2,720
)
    
1,969
      
(751
)
Income (Loss) from continuing operations
  
$
1,289
    
$
752
    
$
2,041
    
$
(1,041
)
  
$
2,810
    
$
1,769
  
Loss from discontinued operations, (net of tax)
  
$
(406
)
          
$
(406
)
  
$
(993
)
          
$
(993
)
Net Income (Loss)
  
$
883
            
$
1,635
    
$
(2,034
)
          
$
776
  
Income (Loss) per diluted share from continuing operations
  
$
0.08
            
$
0.13
    
$
(0.07
)
          
$
0.11
  
Loss per share from discontinuing operations
  
$
(0.03
)
          
$
(0.03
)
  
$
(0.06
)
          
$
(0.06
)
Income (Loss) per diluted share
  
$
0.06
            
$
0.10
    
$
(0.13
)
          
$
0.05
  

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 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 fourth quarter of 2015, the Company recognized amortization of acquired intangible assets of $241,000 and accreted interest of $26,000 related to the acquisition of Brink.  Additionally, the Company recorded a write-off of $776,000 which represents the write-off of unauthorized transfer of Company funds that were made in contravention of the Company’s policies and procedures. The unauthorized transfers occurred during the period between September 25, 2015 and November 6, 2015.   As of December 31, 2015, the Company is uncertain of the collectability relating to these funds and as a result, reduced its fair value to zero.

The adjustments for the three months ended December 31, 2014 primarily relate to the Company’s stock compensation expense and other severance related charges included within the Company’s operating expenses.  During the fourth quarter of 2014, the Company recorded severance and other related charges of $324,000, acquisition related costs of $71,000, amortization of acquired intangible assets of $248,000 and equity based compensation charges of $198,000.  In addition, the Company recorded income tax expense of $1,969,000 primarily associated with the repatriation of earnings from a foreign, wholly owned subsidiary.    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.
 
PAR TECHNOLOGY CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(in thousands, except per share data)
(Unaudited)

   
For the year ended December 31, 2015
    
For the year ended December 31, 2014
  
   
Reported basis (GAAP)
    
Adjustments
    
Comparable basis (Non-GAAP)
    
Reported basis (GAAP)
    
Adjustments
    
Comparable basis (Non-GAAP)
  
                                     
Net revenues
  
$
229,003
      
-
    
$
229,003
    
$
217,863
      
-
    
$
217,863
  
Costs of sales
    
182,864
      
151
      
182,713
      
176,247
      
-
      
176,247
  
Gross Margin
    
46,139
      
151
      
46,290
      
41,616
      
-
      
41,616
  
                                                 
Operating Expenses
                                                
Selling, general and administrative
    
28,276
      
1,120
      
27,156
      
28,974
      
1,945
      
27,029
  
Research and development
    
10,247
      
13
      
10,234
      
8,947
              
8,947
  
Acquisition amortization
    
987
      
987
      
-
      
279
      
279
      
-
  
Total operating expenses
    
39,510
      
2,120
      
37,390
      
38,200
      
2,224
      
35,976
  
Operating income from continuing operations
    
6,629
      
2,271
      
8,900
      
3,416
      
2,224
      
5,640
  
Other (expense) income, net
    
(800
)
    
776
      
(24
)
    
485
      
-
      
485
  
Interest expense
    
(308
)
    
103
      
(205
)
    
(136
)
    
-
      
(136
)
Income from continuing operations before provision for income taxes
    
5,521
      
3,150
      
8,671
      
3,765
      
2,224
      
5,989
  
Provision for income taxes
    
(1,500
)
    
(1,071
)
    
(2,571
)
    
(3,694
)
    
1,510
      
(2,184
)
Income from continuing operations
  
$
4,021
    
$
2,079
    
$
6,100
    
$
71
    
$
3,734
    
$
3,805
  
Loss from discontinued operations, (net of tax)
  
$
(4,912
)
          
$
(4,912
)
  
$
(3,722
)
          
$
(3,722
)
Net (Loss) Income
  
$
(891
)
          
$
1,188
    
$
(3,651
)
          
$
83
  
Income per diluted share from continuing operations
  
$
0.26
            
$
0.39
    
$
0.00
            
$
0.24
  
Loss per share from discontinuing operations
  
$
(0.32
)
          
$
(0.32
)
  
$
(0.24
)
          
$
(0.24
)
(Loss) Income per diluted share
  
$
(0.06
)
          
$
0.08
    
$
(0.24
)
          
$
0.01
  
 
During the year ended December 31, 2015, the Company recorded severance and other related charges of $797,000, of which $151,000 is included in cost of sales, $13,000 is included in research and development and $633,000 is included in selling, general and administrative.  Also included within selling, general and administrative is equity based compensation charges of $487,000.  Lastly, related to the acquisition of Brink, the Company recognized amortization of acquired intangible assets of $987,000 and accreted interest of $103,000.

Additionally, the Company recorded a write-off of $776,000 which represents the write-off of unauthorized transfer of Company funds that were made in contravention of the Company’s policies and procedures. The unauthorized transfers occurred during the period between September 25, 2015 and November 6, 2015.   As of December 31, 2015, the Company is uncertain of the collectability relating to these funds and as a result, reduced its fair value to zero.

For the year ended December 31, 2014, the Company recorded total charges of $2,224,000, which included $1,185,000 of equity based compensation expense.  The remaining $1,039,000 expense related to severance charges of $597,000, acquisition related expenses of $163,000 and amortization of acquired intangible assets of $279,000.  In addition, the Company recorded income tax expense of $1,510,000 primarily associated with the repatriation of earnings from a foreign, wholly owned subsidiary.  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.