2020 Fourth Quarter Net Sales of $7.8
Million
Full Year FST Recurring Revenues up 96% on a
Year-Over-Year Basis
Full Year FST Paid Terminals Up 107% on a
Year-Over-Year Basis
TransAct Technologies Incorporated (Nasdaq: TACT) (“TransAct” or
the “Company”), a global leader in software-driven technology and
printing solutions for high-growth markets, today reported
preliminary operating results for the fourth quarter and full year
ended December 31, 2020.
“Throughout our most challenging year ever we proved the agility
of our business model by posting sequentially stronger sales
quarters in the second half of 2020 and we finished the year with
momentum as we enter 2021. I could not be more proud of the entire
TransAct team and their resilience,” said Bart C. Shuldman,
Chairman and CEO of TransAct Technologies. “Our FST market has
picked up considerable steam and posted a 27% year-over-year
revenue gain despite the obvious challenges our customers were
facing, demonstrating the mission-critical nature of our BOHA!
solutions. We saw the number of paid terminals in the market jump
to 5,688 from 3,813 at the end of the third quarter of 2020, and we
expect this number to accelerate as we move through 2021 and drive
a sustainable base of recurring FST revenue. We are also starting
to see green shoots in our Casino and Gaming market as the pandemic
continues to subside and gambling floors begin to prepare for life
after COVID-19.”
Shuldman continued, “Finally, we launched our all-new, iOS
native BOHA! Restaurant Operations Platform, which is paired with
our BOHA! Workstation and iPad and we are beginning to see our
sales pipeline grow. Technology from BOHA! and Apple devices work
together to bring restaurants a bold, mobile-first solution to
automate back-of-house tasks, reduce labor costs, and drive
efficiencies.”
Fourth Quarter 2020 Financial Highlights
- Net Sales: Net Sales for the fourth quarter of 2020 were
$7.8 million, down 30% compared to $11.2 million for the fourth
quarter of 2019.
- FST Recurring Revenue: FST recurring revenue for the
fourth quarter of 2020 was $0.9 million, up 37% compared to $0.7
million for the fourth quarter of 2019.
- Gross Profit: Gross profit for the fourth quarter of
2020 was $2.4 million, resulting in gross margin of 30.6%, compared
to gross profit of $4.6 million for the fourth quarter of 2019,
which resulted in a 41.2% gross margin.
- Operating loss: Operating loss for the fourth quarter of
2020 was $(2.7) million, compared to operating loss of $(1.1)
million for the fourth quarter of 2019.
- Net loss: Net loss for the fourth quarter of 2020 was
$(1.9) million, or $(0.22) net loss per share, based on 8.7 million
weighted average common shares outstanding. Net loss for the
comparable 2019 period was $(0.8) million, or $(0.11) net loss per
share, based on 7.5 million weighted average common shares
outstanding.
- EBITDA: EBITDA loss was $(2.0) million for the fourth
quarter of 2020, compared to an EBITDA loss of $(0.3) million for
the fourth quarter of 2019.
- Adjusted EBITDA (loss): Adjusted EBITDA loss was $(1.7)
million for the fourth quarter of 2020, compared to adjusted EBITDA
loss of $(0.1) million for the fourth quarter of 2019.
Full Year 2020 Financial Highlights
- Net Sales: Net Sales for the 2020 year were $30.6
million, down 33% compared to $45.7 million for 2019.
- FST Recurring Revenue: FST recurring revenue for the
2020 year was $3.8 million, up 96% compared to $1.9 million for
2019.
- Gross Profit: Gross profit for the 2020 year was $12.9
million, resulting in gross margin of 42.3%, compared to gross
profit of $21.9 million in 2019, which resulted in 47.9% gross
margin.
- Operating income (loss): Operating loss for 2020 was
$(8.2) million, compared to operating income of $0.3 million for
2019.
- Net income (loss): Net loss for 2020 was $(5.6) million,
or $(0.72) net loss per share, based on 7.8 million weighted
average common shares outstanding. Net income for 2019 was $0.5
million, or $0.07 net income per share, based on 7.7 million
diluted weighted average common shares outstanding.
- EBITDA: EBITDA loss was $(6.8) million for the full year
2020, compared to EBITDA of $1.7 million for the full year
2019.
- Adjusted EBITDA (loss): Adjusted EBITDA loss was $(5.9)
million for full year 2020, compared to adjusted EBITDA of $2.4
million for full year 2019.
- Paid Terminals: Paid terminals in the market were 5,688
at December 31, 2020, compared to 2,750 as of December 31, 2019, an
increase of 107%.
2020 Fourth Quarter Conference Call and Webcast
TransAct is hosting a conference call and webcast today, March
9, 2021, beginning at 4:30 p.m. ET to discuss the Company’s
preliminary fourth quarter and full year 2020 results. Both the
call and the webcast are open to the general public. The conference
call number is 888-394-8218 and the conference ID number is 2578777
(domestic or international). Please call five minutes prior to the
presentation to ensure that you are connected.
Interested parties may also access the conference call live on
the Internet at www.transact-tech.com (select “Investor Relations”
followed by “Events & Presentations”). Approximately two hours
after the call has concluded, an archived version of the webcast
will be available for replay at the same location.
Non-GAAP Financial Measures
TransAct is providing certain non-GAAP financial measures
because the Company believes that these measures are helpful to
investors and others in assessing the ongoing nature of what the
Company’s management views as TransAct’s core operations. EBITDA
and adjusted EBITDA provide the Company with an understanding of
one aspect of earnings before the impact of investing and financing
charges and income taxes. The Company believes that these non-GAAP
financial measures provide relevant and useful information to an
investor evaluating the Company’s operating performance because
these measures are: (i) widely used by investors to measure a
company’s operating performance without regard to non-recurring
items excluded from the calculation of such measure; (ii) used as
financial measurements by lenders and other parties to evaluate
creditworthiness; and (iii) used by the Company’s management for
various purposes including strategic planning and forecasting,
assessing financial performance and paying incentive compensation.
The presentation of this non-GAAP information is not considered
superior to or a substitute for, and should be read in conjunction
with, the financial information prepared in accordance with
GAAP.
EBITDA is defined as net income (loss) before net interest
expense, income taxes, depreciation and amortization. A
reconciliation of EBITDA to net income (loss), the most comparable
GAAP financial measure, can be found attached to this release.
Adjusted EBITDA is defined as net income (loss) before net
interest expense, income taxes, depreciation and amortization and
is adjusted for share-based compensation. The Company adjusts
EBITDA for share-based compensation because the Company considers
share-based compensation to be a non-cash expense similar to
depreciation and amortization. A reconciliation of adjusted EBITDA
to net income (loss), the most comparable GAAP financial measure,
can be found attached to this release.
About TransAct Technologies Incorporated
TransAct Technologies Incorporated is a global leader in
developing software-driven technology and printing solutions for
high-growth markets including food service, casino and gaming, POS
automation, and oil and gas. The Company’s solutions are designed
from the ground up based on customer requirements and are sold
under the BOHA! ™, AccuDate™, EPICENTRAL®, Epic®, Ithaca® and
Printrex® brands. TransAct has sold over 3.5 million printers,
terminals and other hardware devices around the world and is
committed to providing world-class service, spare parts and
accessories to support its installed product base. Through the
TransAct Services Group, the Company also provides customers with a
complete range of supplies and consumable items both online at
http://www.transactsupplies.com and through its direct sales team.
TransAct is headquartered in Hamden, CT. For more information,
please visit http://www.transact-tech.com or call (203)
859-6800.
TransAct®, BOHA!™, AccuDate™, Epic, EPICENTRAL™, Ithaca® and
Printrex® are trademarks of TransAct Technologies Incorporated.
©2021 TRANSACT Technologies Incorporated. All rights reserved.
Cautionary Statement Regarding Preliminary Financial
Information
The Company has prepared the preliminary financial information
set forth below on a materially consistent basis with its
historical financial information and in good faith based upon its
internal reporting as of and for the three months and full year
ended December 31, 2020. This financial information is preliminary
and is thus inherently uncertain and subject to change as the
Company finalizes its financial results and related review for the
three months and audit for the full year ended December 31, 2020.
During the course of the preparation of the Company’s consolidated
financial statements and related notes as of and for the three
months and full year ended December 31, 2020, the Company may
identify items that could cause its final reported results to be
materially different from the preliminary financial information set
forth above. As a result, there can be no assurance that the
Company’s final results for this period will not differ from the
preliminary financial information.
This preliminary financial information should not be viewed as a
substitute for full financial statements prepared in accordance
with GAAP. In addition, this preliminary financial information is
not necessarily indicative of the results to be achieved for any
future period.
Forward-Looking Statements
Certain statements in this press release include forward-looking
statements. Forward-looking statements generally can be identified
by the use of forward-looking terminology, such as "may", "will",
"expect", "intend", "estimate", "anticipate", "believe", or
"continue", or the negative thereof, or other similar words. All
forward-looking statements involve risks and uncertainties,
including, but not limited to, the adverse effects of the COVID-19
pandemic on our business, operations, financial condition, results
of operations and capital resources, including as a result of
supply chain disruptions, shutdowns and/or operational restrictions
imposed on our customers, an inability of our customers to make
payments on time or at all, diversion of management attention,
necessary modifications to our business practices and operations,
cost cutting measures we have made and may continue to make, a
possible future reduction in the value of goodwill or other
intangible assets, inadequate manufacturing capacity or a shortfall
or excess of inventory as a result of difficulty in predicting
manufacturing requirements due to volatile economic conditions,
price increases or decreased availability of component parts or raw
materials, exchange rate fluctuations, volatility of and decreases
in trading prices of our common stock and the availability of
needed financing on acceptable terms or at all; our ability to
successfully develop new products that garner customer acceptance
and generate sales, both domestically and internationally, in the
face of substantial competition; our ability to successfully
transition our business into the food service technology market;
our ability to remediate the material weakness over internal
control over financial reporting; risks associated with potential
future acquisitions; general economic conditions; our dependence on
contract manufacturers for the assembly of a large portion of our
products in Asia; our dependence on significant suppliers; our
ability to recruit and retain quality employees as the Company
grows; our dependence on third parties for sales outside the United
States; our dependence on technology licenses from third parties;
marketplace acceptance of new products; risks associated with
foreign operations; the availability of third-party components at
reasonable prices; price wars or other significant pricing
pressures affecting the Company's products in the United States or
abroad; increased product costs or reduced customer demand for our
products due to changes in U.S. policy that may result in trade
wars or tariffs; our ability to protect intellectual property; the
effect of the United Kingdom’s withdrawal from the European Union;
and other risk factors detailed in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2019, Quarterly Reports
on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020
and September 30, 2020 and other reports filed with the Securities
and Exchange Commission. Actual results may differ materially from
those discussed in, or implied by, the forward-looking statements.
The forward-looking statements speak only as of the date of this
release, and the Company assumes no duty to update them to reflect
new, changing or unanticipated events or circumstances, except as
required by applicable law.
- Financial tables follow –
TRANSACT TECHNOLOGIES
INCORPORATED
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Preliminary and
Unaudited)
Three Months Ended
Year Ended
(In thousands, except per share
amounts)
December 31,
December 31,
2020
2019
2020
2019
Net sales
$7,763
$11,162
$30,595
$45,748
Cost of sales
5,391
6,563
17,666
23,813
Gross profit
2,372
4,599
12,929
21,935
Operating expenses:
Engineering, design and product
development
1,506
1,065
5,703
4,393
Selling and marketing
1,259
2,143
6,144
8,033
General and administrative
2,268
2,446
9,255
9,166
5,033
5,654
21,102
21,592
Operating (loss) income
(2,661)
(1,055)
(8,173)
343
Interest and other (expense) income:
Interest, net
(11)
2
(52)
(11)
Other, net
116
158
56
35
105
160
4
24
(Loss) income before income taxes
(2,556)
(895)
(8,169)
367
Income tax benefit
(638)
(95)
(2,539)
(149)
Net (loss) income
$(1,918)
$(800)
$(5,630)
$516
Net (loss) income per common share:
Basic
$(0.22)
$(0.11)
$(0.72)
$0.07
Diluted
$(0.22)
$(0.11)
$(0.72)
$0.07
Shares used in per share calculation:
Basic
8,704
7,470
7,827
7,466
Diluted
8,704
7,470
7,827
7,677
SUPPLEMENTAL INFORMATION –
SALES BY MARKET:
(Preliminary and
Unaudited)
Three months ended
Year ended
(In thousands)
December 31,
December 31,
2020
2019
2020
2019
Food service technology
$2,810
$1,817
$7,734
$6,104
POS automation and banking
989
1,323
3,770
5,758
Casino and gaming
2,679
5,341
10,979
21,529
Lottery
-
365
817
1,291
Printrex
68
243
300
1,166
TransAct Services Group
1,217
2,073
6,995
9,900
Total net sales
$7,763
$11,162
$30,595
$45,748
TRANSACT TECHNOLOGIES
INCORPORATED
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Preliminary and
Unaudited)
December 31,
December 31,
(In thousands)
2020
2019
Assets:
Current assets:
Cash and cash equivalents
$10,359
$4,203
Accounts receivable, net
3,377
6,418
Note receivable
100
1,017
Inventories, net
11,286
12,099
Prepaid income taxes
2,409
180
Prepaids and other current assets
644
998
Total current assets
28,175
24,915
Fixed assets, net
1,950
2,244
Note receivable, net of current
portion
1,584
-
Right-of-use asset
3,618
2,855
Goodwill
2,621
2,621
Deferred tax assets
2,939
2,565
Intangible assets, net
583
817
Other assets
777
44
14,072
11,146
Total assets
$42,247
$36,061
Liabilities and Shareholders’
Equity:
Current liabilities:
Accounts payable
$1,691
$2,960
Accrued liabilities
3,665
3,041
Lease liability
837
945
Deferred revenue
504
700
Total current liabilities
6,697
7,646
Long term debt
2,173
-
Deferred revenue, net of current
portion
111
219
Lease liability, net of current
portion
2,864
2,104
Other liabilities
166
166
5,314
2,489
Total liabilities
12,011
10,135
Shareholders’ equity:
Common stock
130
115
Additional paid-in capital
42,536
32,604
Retained earnings
19,718
25,348
Accumulated other comprehensive loss, net
of tax
(38)
(31)
Treasury stock, at cost
(32,110)
(32,110)
Total shareholders’ equity
30,236
25,926
Total liabilities and shareholders’
equity
$42,247
$36,061
TRANSACT TECHNOLOGIES
INCORPORATED
RECONCILIATION OF NET (LOSS)
INCOME TO EBITDA AND ADJUSTED EBITDA
NON-GAAP FINANCIAL
MEASURES
(Preliminary and
Unaudited)
Three Months Ended
Year Ended
(In thousands)
December 31,
December 31,
2020
2019
2020
2019
Net (loss) income
$(1,918)
$(800)
$(5,630)
$516
Interest expense (income), net
11
(2)
52
11
Income tax benefit
(638)
(95)
(2,539)
(149)
Depreciation and amortization
584
624
1,342
1,371
EBITDA
(1,961)
(273)
(6,775)
1,749
Share-based compensation expense
232
133
876
692
Adjusted EBITDA
$(1,729)
$(140)
$(5,899)
$2,441
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210309005934/en/
Investor Contact: Bart Shuldman Chairman and Chief
Executive Officer TransAct Technologies Incorporated
702-388-8180
Michael Bowen ICR, Inc. Michael.Bowen@icrinc.com
203-682-8299
Marc P. Griffin ICR, Inc. Marc.Griffin@icrinc.com
646-277-1290
TransAct Technologies (NASDAQ:TACT)
Historical Stock Chart
From Mar 2024 to Apr 2024
TransAct Technologies (NASDAQ:TACT)
Historical Stock Chart
From Apr 2023 to Apr 2024