- New Brink Bookings in Q3 = 1,181 a 45% sequential increase
from Q2
- Total Company Revenues increase 20.7% vs. prior
year
PAR Technology Corporation (NYSE: PAR) ("PAR Technology" or the
"Company") today announced its results for its third quarter ended
September 30, 2020.
Summary of Fiscal 2020 Third Quarter
- Revenues were reported at $54.8 million for the third quarter
of 2020, compared to $45.4 million for the same period in 2019, a
20.7% increase. $7.2 million of the growth was driven by inorganic
growth related to our Drive-Thru and Restaurant Magic acquisitions,
that was partially offset by our divestiture of SureCheck.
- GAAP net loss for the third quarter of 2020 was $3.7 million,
or $0.20 loss per share, a decrease from GAAP net loss of $5.9
million, or $0.36 loss per share reported for the same period in
2019.
- Non-GAAP net loss for the third quarter of 2020 was $2.7
million, or $0.15 loss per share, compared to non-GAAP net loss of
$3.5 million, or $0.21 loss per share, for the same period in
2019.
Summary of Year-to-Date Financial Results
- Revenues were reported at $155.3 million for the first nine
months of 2020, compared to $134.3 million for the same period in
2019, a 15.6% increase. $16.3 million of the growth was driven by
inorganic growth related to our Drive-Thru and Restaurant Magic
acquisitions, that was partially offset by our divestiture of
SureCheck.
- GAAP net loss for the first nine months of 2020 was $23.6
million, or $1.30 loss per share, an increase from the GAAP net
loss of $9.7 million, or $0.61 loss per share reported for the same
period in 2019.
- Non-GAAP net loss for the first nine months of 2020 was $12.1
million, or $0.67 loss per share, compared to non-GAAP net loss of
$7.1 million or $0.44 loss per share, for the same period in
2019.
A reconciliation and description of non-GAAP financial measures
to corresponding GAAP financial measures are included in the tables
at the end of this press release.
“Our results in Q3 highlight the resiliency of the restaurant
industry and importantly the acceleration in cloud adoption. Q3
bookings were the most we’ve seen in almost three years and
highlights how quickly enterprise restaurants are reacting during
the Covid-19 pandemic. As the world stabilizes, we expect
activations and bookings to continue to grow,” commented Savneet
Singh, PAR Technology’s CEO & President. “Alongside our strong
software bookings were solid results in our hardware business. We
saw strong demand for our drive thru product line and a recovery in
our core terminal business. By design, our Company provides
business critical technology to the most resilient sector of the
restaurant industry. Our customers rely on PAR to consistently
provide the products and services they require to serve their
customers and improve their operations.”
Mr. Singh continued, “We are confident our Company is navigating
current market conditions from a position of strength. Our recent
capital raise in September gives us the strength and flexibility to
increase market share by both organic and inorganic means. The
pandemic continues to highlight the strength of our cloud solutions
and further validates the subscription economy within enterprise
restaurants. PAR remains well positioned to achieve our strategic
goals, even during the most challenging environment for restaurants
in history.”
Highlights of Brink - Third Quarter 2020: -- Brink ARR at end of
Q3 '20 totaled $22.9 million - an increase of $5.0 million, 29%
from end of Q3 '19 -- New store activations in Q3 totaled 761 sites
-- Brink bookings in Q3 ‘20 totaled 1,181 sites -- Brink Open
Orders (backlog) totaled 1,977 sites at end of Q3 '20 -- Active
Brink sites as of September 30th total 10,990 restaurants
Highlights Restaurant Magic - Third Quarter 2020: --Restaurant
Magic ARR at end of Q3 ’20 totaled $8.7 million --New store
activations in Q3 '20 totaled 473 sites --Restaurant Magic bookings
in Q3 ’20 totaled 506 sites --Active Restaurant Magic sites as of
September 30th total 5,723
Conference Call.
There will be a conference call at 9:00 a.m. (Eastern) on
November 6, 2020, during which the Company’s management will
discuss the financial results for the third quarter ended September
30, 2020. To participate in the call, please call 844-419-5412,
approximately 10 minutes in advance. No passcode is required to
participate in the live call or to listen to the replay version.
Investors will have the opportunity to listen to the conference
call/event over the internet by visiting the Company’s website at
www.partech.com/news. Alternatively, listeners may access an
archived version of the presentation call after 12:30 p.m. on
November 6, 2020 through November 13, 2020 by dialing 855-859-2056
and using conference ID 2508219.
About PAR Technology Corporation.
PAR Technology Corporation through its wholly owned subsidiary
ParTech, Inc., is a customer success-driven, global restaurant and
retail technology company with over 100,000 restaurants in more
than 110 countries using its point of sale hardware and software.
ParTech’s Brink POS® integration ecosystem enables quick service,
fast casual, table service, and cloud restaurants to improve their
operational efficiency by combining its cloud-based POS software
with the world’s leading restaurant technology platforms. PAR
Technology’s Government segment is a leader in providing
computer-based system design, engineering and technical services to
the Department of Defense and various federal agencies PAR
Technology’s stock is traded on the New York Stock Exchange under
the symbol PAR. For more information, visit www.partech.com or
connect with PAR Technology on Facebook or Twitter.
Forward-Looking Statements.
This press release contains "forward-looking statements" within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended, Section 27A of the Securities Act of 1933, as amended,
and the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are not historical in nature, but rather
are predictive of our future operations, financial condition,
business strategies and prospects. Forward-looking statements are
generally identified by words such as "anticipate," "believe,"
"belief," "continue," "could," "expect," "estimate," "intend,"
"may," "opportunity," "plan," "should," "will," "would," "will
likely result," and similar expressions. Forward-looking statements
are based on current expectations and assumptions that are subject
to a variety of risks and uncertainties, many of which are beyond
our control, which could cause our actual results to differ
materially from those expressed in or implied by forward-looking
statements contained in this press release, including
forward-looking statements relating to our expectations regarding
the impact of the COVID-19 pandemic on our business, operations,
financial condition, and financial results. Factors that could
cause our actual results to differ materially from those expressed
in or implied by forward-looking statements contained in this press
release are described in our most recent Annual Report on Form
10-K, as updated by our most recent quarterly report on Form 10-Q,
and other filings with the Securities and Exchange Commission.
PAR TECHNOLOGY CORPORATION AND
SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited, in
thousands, except share and per share amounts)
Assets
September 30, 2020
December 31, 2019
Current assets:
Cash and cash equivalents
$
55,755
$
28,036
Accounts receivable – net
40,106
41,774
Inventories – net
27,113
19,326
Other current assets
3,438
4,427
Total current assets
126,412
93,563
Property, plant and equipment – net
13,810
14,351
Goodwill
41,214
41,386
Intangible assets – net
34,247
32,948
Lease right-of-use assets
2,351
3,017
Other assets
3,767
4,347
Total Assets
$
221,801
$
189,612
Liabilities and Shareholders’
Equity
Current liabilities:
Current portion of long-term debt
$
657
$
630
Accounts payable
16,372
16,385
Accrued salaries and benefits
9,730
7,769
Accrued expenses
2,549
3,176
Lease liabilities - current portion
1,132
2,060
Customer deposits and deferred service
revenue
11,067
12,084
Total current liabilities
41,507
42,104
Lease liabilities - net of current
portion
1,300
1,021
Deferred revenue – noncurrent
1,646
3,916
Long-term debt
104,867
62,414
Other long-term liabilities
5,706
7,310
Total liabilities
155,026
116,765
Commitments and contingencies
Shareholders’ Equity:
Preferred stock, $.02 par value, 1,000,000
shares authorized
—
—
Common stock, $.02 par value, 58,000,000
and 29,000,000 shares authorized, 19,315,272 and 18,360,205 shares
issued, 18,263,416 and 16,629,177 outstanding at September 30, 2020
and December 31, 2019, respectively
386
367
Capital in excess of par value
109,772
94,372
(Accumulated deficit) retained
earnings
(33,741
)
(10,144
)
Accumulated other comprehensive loss
(5,059
)
(5,368
)
Treasury stock, at cost, 1,051,856 shares
and 1,731,028 shares at September 30, 2020 and December 31, 2019,
respectively
(4,583
)
(6,380
)
Total shareholders’ equity
66,775
72,847
Total Liabilities and Shareholders’
Equity
$
221,801
$
189,612
See notes to unaudited interim consolidated financial statements
included in the Company's quarterly report on Form 10-Q for the
quarter ended September 30, 2020 (the "Quarterly Report").
Note 1 - The balance sheet at December 31, 2019 has been derived
from the Company’s audited consolidated financial statements at
that date but does not include all of the information and footnotes
required by U.S. GAAP for complete financial statements. For
further information, please refer to the consolidated financial
statements and notes thereto included in the Company’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2019, as
filed with the U.S. Securities and Exchange Commission.
PAR TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands,
except per share amounts)
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
2020
2019
Net revenues:
Product
$
20,470
$
15,904
$
51,437
$
46,149
Service
16,877
13,937
50,952
41,514
Contract
17,500
15,539
52,881
46,646
54,847
45,380
155,270
134,309
Costs of sales:
Product
15,995
12,259
40,882
34,912
Service
11,252
9,482
33,810
29,868
Contract
15,929
14,643
48,781
42,679
43,176
36,384
123,473
107,459
Gross margin
11,671
8,996
31,797
26,850
Operating expenses:
Selling, general and administrative
10,512
9,539
31,988
27,162
Research and development
4,210
3,448
13,613
9,233
Amortization of identifiable intangible
assets
257
—
677
—
Adjustment to contingent consideration
liability
(2,310
)
—
(2,310
)
—
12,669
12,987
43,968
36,395
Operating loss
(998
)
(3,991
)
(12,171
)
(9,545
)
Other expense, net
(486
)
(401
)
(1,250
)
(1,205
)
Interest expense, net
(2,235
)
(1,588
)
(6,318
)
(2,978
)
Loss on extinguishment debt
—
—
(8,123
)
—
Loss before benefit from income taxes
(3,719
)
(5,980
)
(27,862
)
(13,728
)
Benefit from income taxes
8
78
4,265
3,988
Net loss
$
(3,711
)
$
(5,902
)
$
(23,597
)
$
(9,740
)
Basic Earnings per Share:
Net loss
$
(0.20
)
$
(0.36
)
$
(1.30
)
$
(0.61
)
Diluted Earnings per Share:
Net loss
$
(0.20
)
$
(0.36
)
$
(1.30
)
$
(0.61
)
Weighted average shares outstanding
Basic
18,250
16,300
18,145
16,086
Diluted
18,250
16,300
18,145
16,086
See notes to unaudited interim consolidated financial statements
included in the Quarterly Report.
PAR TECHNOLOGY CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(Unaudited, in thousands, except per share and footnote
amounts)
For the three months ended
For the three months ended
September 30, 2020
September 30, 2019
Reported basis (GAAP)
Adjustments
Comparable basis (Non-GAAP)
Reported basis (GAAP)
Adjustments
Comparable basis (Non-GAAP)
Net revenues
$
54,847
—
$
54,847
$
45,380
—
$
45,380
Operating loss
(998
)
(268
)
1
(1,266
)
(3,991
)
1,539
3
(2,452
)
Loss before benefit from (provision for)
income taxes
(3,719
)
1,015
1, 2
(2,704
)
(5,980
)
2,420
3, 4
(3,560
)
Net loss
(3,711
)
1,015
1, 2
(2,696
)
(5,902
)
2,420
3, 4
(3,482
)
Loss per diluted share
$
(0.20
)
$
(0.15
)
$
(0.36
)
$
(0.21
)
1
Adjustment reflects stock-based
compensation expense of $1,005,000; amortization expense of
acquired developed technology of $827,000; amortization expense of
acquired intangible assets of $210,000; and, a gain on reduction to
the fair value of contingent consideration related to the
acquisition of AccSys LLC (f/k/a AccSys, Inc., and otherwise known
as Restaurant Magic) (the "Restaurant Magic Acquisition") of
$2,310,000.
2
Adjustment reflects non-cash accretion of
interest expense and amortization of issuance costs related to the
Company's 4.5% Convertible Senior Notes due 2024 (the "2024 Notes")
and 2.875% Convertible Senior Notes due 2026 (the "2026 Notes") of
$1,283,000.
3
Adjustment reflects stock-based
compensation expense of $986,000; amortization expense of acquired
developed technology of $241,000; expenses related to the SureCheck
divestiture of $207,000; and, expenses related to the Company's
continued cooperation with the Singapore authorities in connection
with the findings of the completed internal investigation
undertaken by the Company related to conduct at its China and
Singapore offices (the "China/Singapore Investigation") of
$105,000.
4
Adjustment reflects accretion of interest
expense and amortization of issuance costs related to the 2024
Notes of $881,000.
About Non-GAAP Financial Measures
The Company reports its financial results in accordance with
GAAP. However, non-GAAP adjusted financial measures, as set forth
in the reconciliation table above, are provided because management
uses these non-GAAP financial measures in evaluating the results of
the Company's continuing operations and believes this information
provides investors supplemental insight into underlying business
trends and operating results. These non-GAAP financial measures are
not based on any comprehensive set of accounting rules or
principles and should not be considered a substitute for, or
superior to, financial measures calculated in accordance with GAAP.
In addition, these non-GAAP financial measures should be read in
conjunction with the Company’s financial statements prepared in
accordance with GAAP.
The Company's results of operations are impacted by certain
non-recurring charges, including equity based compensation,
acquisition and divestiture related expenditures, expense related
to the China/Singapore Investigation, and other non-recurring
charges that may not be indicative of the Company’s financial
performance. Management believes that adjusting its costs of sales,
operating expenses, operating loss, net loss and diluted loss per
share to remove non-recurring charges, provides a useful
perspective with respect to the Company's operating results and
provides supplemental information to both management and investors
by removing items that are difficult to predict and are often
unanticipated. While the Company believes the adjustments provide a
useful comparison, the reconciliations of non-GAAP financial
measures to corresponding GAAP measures should be carefully
evaluated.
PAR TECHNOLOGY CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(Unaudited, in thousands, except per share and footnote
amounts)
For the nine months ended
For the nine months ended
September 30, 2020
September 30, 2019
Reported basis (GAAP)
Adjustments
Comparable basis (Non-GAAP)
Reported basis (GAAP)
Adjustments
Comparable basis (Non-GAAP)
Net revenues
$
155,270
$
—
$
155,270
$
134,309
$
—
$
134,309
Operating loss
(12,171
)
4,504
1
(7,667
)
(9,545
)
5,100
4
(4,445
)
Loss before benefit from (provision for)
income taxes
(27,862
)
15,916
1, 2
(11,946
)
(13,728
)
6,727
4, 5
(7,001
)
Net loss
(23,597
)
11,508
1, 2, 3
(12,089
)
(9,740
)
2,662
4, 5, 6
(7,078
)
Loss per diluted share
$
(1.30
)
$
(0.67
)
$
(0.61
)
$
(0.44
)
1
Adjustment reflects stock-based
compensation expense of $3,217,000; amortization expense of
acquired developed technology of $2,482,000; amortization expense
of acquired intangible assets of $630,000; severance expense of
$359,000; expenses related to the China/Singapore Investigation of
$126,000; and, gain on reduction to the fair value of contingent
consideration related to the Restaurant Magic Acquisition of
$2,310,000.
2
Adjustment reflects loss on extinguishment
of debt related to the repurchase of approximately $66.3 million of
the 2024 Notes of $8,123,000; and, non-cash accretion of interest
expense and amortization of issuance costs related to the 2024
Notes and the 2026 Notes of $3,289,000.
3
Adjustment reflects reduction to benefit
from income tax of $4,408,000 to reflect the deferred tax benefit
impact of the 2026 Notes issuance.
4
Adjustments reflect stock-based
compensation expense of $1,837,000; expenses related to the
SureCheck divestiture of $1,577,000; amortization expense of
acquired intangible assets of $724,000; severance expense of
$567,000; and, expenses related to the China/Singapore
Investigation of $395,000.
5
Adjustment reflects accretion of interest
expense and amortization of issuance costs related to the 2024
Notes of $1,627,000.
6
Adjustment reflects reduction to benefit
from income tax of $4,065,000 to reflect the deferred tax benefit
impact of the 2024 Notes issuance.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201106005120/en/
Christopher R. Byrnes (315) 738-0600 ext. 6226
cbyrnes@partech.com, www.partech.com
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