2021 Second Quarter Net Sales of $9.3
Million
Record FST Recurring Revenue of $2.1 Million,
up 214% on a Year-Over-Year Basis
FST Paid Terminals Up 127% from June 30,
2020
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 quarter ended June 30,
2021.
“We are pleased to see a broad based recovery across TransAct’s
markets in the second quarter of 2021 due largely to domestic
re-openings. As America’s food service operators face mounting
challenges from ingredient inflation, labor shortage, and
continuing safety concerns, our BOHA! platform has picked up
considerable steam. We posted Food Service Technology (“FST”)
revenue of $3.1 million for the second quarter of 2021, which
represented a 155% increase year-over-year. Our substantial growth
within FST comes as a direct result of our rapidly expanding
hardware base which also helped fuel our record FST recurring
revenue of $2.1 million. To that point, we added over 900 paid
terminals during the quarter, bringing the total to 7,942 in
service and providing TransAct with a growing base of customers,”
said Bart C. Shuldman, Chairman and CEO of TransAct Technologies.
“We are also thrilled to see our Casino and Gaming market benefit
from domestic re-opening tailwinds with sales up 155%
year-over-year and 21% sequentially over the first quarter of 2021.
I am incredibly proud of our team’s execution, and our results
demonstrate that our industry leading BOHA! ecosystem and casino
products remain well positioned to capitalize on the re-opening of
the global economy. I believe that TransAct will continue to
execute at a high level on its initiatives and that the challenges
of safely re-opening only increase the value proposition of
TransAct’s solutions in a post-COVID economy.”
Second Quarter 2021 Financial Highlights
- Net Sales: Net sales for the second quarter of 2021 were
$9.3 million, up 76% compared to $5.3 million for the second
quarter of 2020.
- FST Recurring Revenue: FST recurring revenue for the
second quarter of 2021 was $2.1 million, up 214% compared to $0.7
million for the second quarter of 2020.
- Gross Profit: Gross profit for the second quarter of
2021 was $3.3 million, resulting in gross margin of 35.7%, compared
to gross profit of $2.3 million for the second quarter of 2020,
which resulted in a 43.3% gross margin.
- Operating loss: Operating loss for the second quarter of
2021 was $(2.8) million, compared to operating loss of $(2.7)
million for the second quarter of 2020.
- Net loss: Net loss for the second quarter of 2021 was
$(2.1) million, or $(0.24) net loss per share, based on 9.0 million
weighted average common shares outstanding. Net loss for the
comparable 2020 period was $(1.9) million, or $(0.25) net loss per
share, based on 7.5 million weighted average common shares
outstanding.
- EBITDA: EBITDA loss was $(2.5) million for the second
quarter of 2021, compared to an EBITDA loss of $(2.5) million for
the second quarter of 2020.
- Adjusted EBITDA loss: Adjusted EBITDA loss was $(2.1)
million for the second quarter of 2021, compared to adjusted EBITDA
loss of $(2.3) million for the second quarter of 2020.
- Paid Terminals: Paid terminals in the market were 7,942
on June 30, 2021, compared to 3,501 on June 30, 2020, an increase
of 127%.
2021 Second Quarter Conference Call and Webcast
TransAct is hosting a conference call and webcast today, August
3, 2021, beginning at 4:30 p.m. ET to discuss the Company’s
preliminary second quarter 2021 results and other matters. Both the
call and the webcast are open to the general public. The conference
call number is 888-220-8451 and the conference ID number is 8684634
(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 and
assessing financial performance. 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 loss before net interest expense,
income taxes, depreciation and amortization. A reconciliation of
EBITDA to net loss, the most comparable GAAP financial measure, can
be found attached to this release.
Adjusted EBITDA is defined as net 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 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 and six months ended
June 30, 2021. 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
and six months ended June 30, 2021. During the course of the
preparation of the Company’s consolidated financial statements and
related notes as of and for the three and six months ended June 30,
2021, 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, related vaccination rates and the emergence of virus
variants 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 reliance on an unrelated third
party to develop, maintain and host certain web-based food service
application software and develop and maintain selected components
of our downloadable software applications pursuant to a
non-exclusive license agreement, and the risk that interruptions in
our relationship with that third party could materially impair our
ability to provide services to our food service technology
customers on a timely basis or at all and could require substantial
expenditures to find or develop alternative software products; our
ability to successfully transition our business into the food
service technology market; our ability to fully remediate a
previously disclosed 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, 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
Six Months Ended
June 30,
June 30,
2021
2020
2021
2020
(In thousands, except per share
data)
Net sales
$9,325
$5,285
$17,626
$15,532
Cost of sales
6,000
2,995
11,112
8,324
Gross profit
3,325
2,290
6,514
7,208
Operating expenses:
Engineering, design and product
development
1,804
1,367
3,607
2,752
Selling and marketing
1,767
1,419
3,210
3,627
General and administrative
2,509
2,242
5,118
4,862
6,080
5,028
11,935
11,241
Operating loss
(2,755)
(2,738)
(5,421)
(4,033)
Interest and other expense:
Interest, net
(29)
(25)
(42)
(22)
Other, net
(17)
(11)
(100)
(176)
(46)
(36)
(142)
(198)
Loss before income taxes
(2,801)
(2,774)
(5,563)
(4,231)
Income tax benefit
(687)
(921)
(1,243)
(1,386)
Net loss
$(2,114)
$(1,853)
$(4,320)
$(2,845)
Net loss per common share:
Basic
$(0.24)
$(0.25)
$(0.48)
$(0.38)
Diluted
$(0.24)
$(0.25)
$(0.48)
$(0.38)
Shares used in per share calculation:
Basic
8,976
7,543
8,962
7,525
Diluted
8,976
7,543
8,962
7,525
SUPPLEMENTAL INFORMATION –
SALES BY MARKET:
(Preliminary and
Unaudited)
Three months ended
Six months ended
June 30,
June 30,
2021
2020
2021
2020
(In thousands)
Food service technology
$3,074
$1,204
$5,821
$2,575
POS automation
1,256
481
2,420
2,039
Casino and gaming
3,467
1,360
6,332
6,291
Lottery
-
817
-
817
Printrex
112
8
271
125
TransAct services group
1,416
1,415
2,782
3,685
Total net sales
$9,325
$5,285
$17,626
$15,532
TRANSACT TECHNOLOGIES
INCORPORATED
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Preliminary and
Unaudited)
June 30,
December 31,
2021
2020
(In thousands)
Assets:
Current assets:
Cash and cash equivalents
$7,960
$10,359
Accounts receivable, net
5,741
3,377
Note receivable
-
100
Inventories
8,734
11,286
Prepaid income taxes
2,499
2,409
Other current assets
864
644
Total current assets
25,798
28,175
Fixed assets, net
1,843
1,950
Note receivable, net of current
portion
-
1,584
Right-of-use asset
2,952
3,618
Goodwill
2,621
2,621
Deferred tax assets
4,147
2,939
Intangible assets, net
481
583
Other assets
573
777
12,617
14,072
Total assets
$38,415
$42,247
Liabilities and Shareholders’
Equity:
Current liabilities:
Accounts payable
$2,780
$1,691
Accrued liabilities
2,466
3,665
Lease liability
809
837
Deferred revenue
742
504
Total current liabilities
6,797
6,697
Long-term debt
2,173
2,173
Deferred revenue, net of current
portion
232
111
Lease liability, net of current
portion
2,167
2,864
Other liabilities
173
166
4,745
5,314
Total liabilities
11,542
12,011
Shareholders’ equity:
Common stock
130
130
Additional paid-in capital
43,408
42,536
Retained earnings
15,398
19,718
Accumulated other comprehensive income
(loss), net of tax
47
(38)
Treasury stock, at cost
(32,110)
(32,110)
Total shareholders’ equity
26,873
30,236
Total liabilities and shareholders’
equity
$38,415
$42,247
TRANSACT TECHNOLOGIES
INCORPORATED
RECONCILIATION OF NET LOSS TO
EBITDA AND ADJUSTED EBITDA
NON-GAAP FINANCIAL
MEASURES
(Preliminary and
Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2020
2021
2020
(In thousands)
Net loss
$(2,114)
$(1,853)
$(4,320)
$(2,845)
Interest expense, net
29
25
42
22
Income tax benefit
(687)
(921)
(1,243)
(1,386)
Depreciation and amortization
246
257
486
495
EBITDA
(2,526)
(2,492)
(5,035)
(3,714)
Share-based compensation expense
431
226
695
413
Adjusted EBITDA
$(2,095)
$(2,266)
$(4,340)
$(3,301)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210803005763/en/
Investor Contact: Bart Shuldman Chairman and Chief
Executive Officer TransAct Technologies Incorporated
Michael Bowen ICR, Inc. Michael.Bowen@icrinc.com
Ryan Gardella ICR, Inc. Ryan.Gardella@icrinc.com
TransAct Technologies (NASDAQ:TACT)
Historical Stock Chart
From Aug 2024 to Sep 2024
TransAct Technologies (NASDAQ:TACT)
Historical Stock Chart
From Sep 2023 to Sep 2024