COMPANY ALSO ANNOUNCES SALE OF ITS HOTEL TECHNOLOGY BUSINESS
Revenues Grow 10.3% in the Quarter – Adjusted Net-Income Rises 63% YTD Revenues Rise 8.6% from previous year – Adjusted YTD Net-Income increases by 100% to $4.1 million
New Hartford, NY- — PAR Technology Corporation (NYSE: PAR) a leading provider of hospitality/retail management systems and Government contract services today announced results from continuing operations for the third quarter and year to date ended September 30, 2015. The Company also announced that it has closed a transaction selling substantially all the assets of its hotel technology business operated under PAR Springer-Miller Systems, Inc. to affiliates of Constellation Software Inc. for a gross purchase price of $16.6 million cash. There is also an opportunity for additional payment of $1.5 million if certain sales targets are achieved. The transaction closed on November 4, 2015.
Summary of Fiscal 2015 Third Quarter and Year-to-Date Financial Results from Continuing Operations
- Revenue increased 10.3% to $58.1 million, compared to $52.6 million in the third quarter of fiscal 2014.
- Adjusted (non-GAAP) net income from continuing operations was $1.7 million, or $0.11 per diluted share, compared to adjusted (non-GAAP) income from continuing operations of $1.1 million, or $0.07 per diluted share, in the same period of 2014.
- GAAP net income from continuing operations in the third quarter of fiscal 2015 was $1.3 million, or $0.08 per diluted share, compared to net income of $0.7 million, or $0.04 per diluted share, in the same period of 2014.
- Year-to-date 2015 revenue increased 8.6% to $172.2 million compared to $158.6 million in the third quarter of fiscal 2014.
- Year-to-date 2015 adjusted (non-GAAP) net income from continuing operations was $4.1 million, or $0.26 per diluted share, compared to adjusted (non-GAAP) net income from continuing operations of $2.0 million, or $0.13 per diluted share, in the same period of 2014.
- Year-to-date 2015 GAAP net income from continuing operations was $2.7 million, or $0.17 per diluted share, compared to net income of $1.1 million or $0.07 per diluted share, in the same period of 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.
Ronald J. Casciano, Chief Executive Officer and President, commented “We are pleased to have delivered another quarter of improved performance, demonstrating the strength of our technology solutions in our Hospitality and Government segments. We are successfully executing our plan to grow revenue with new customers and also achieve our cost reduction objectives. These measurable improvements in results reflect the continued enhancements we have made to deliver cutting edge solutions to the markets we serve that continue to consistently exceed the customer’s requirements.”
Concerning the divestiture of the hotel/spa business, Casciano stated, “We believe selling the Springer-Miller business is the best way to focus on our core businesses to accelerate performance and growth. This sale provides the Company with the financial flexibility to explore future opportunities to enhance our strategic position and immediately strengthens our balance sheet.”
Casciano concluded, “Heading into 2016, I am confident that our strategy will enable PAR to become a consistent performer in delivering solid financial results. Our leadership is strong, we are focused on execution and ultimately understand what is required to deliver successful results. We have significant work ahead of us, but I am proud of the progress we have made to date to drive long-term growth and 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 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. 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 time on November 5th, 2015, during which the Company’s management will discuss the financial results for the third quarter of 2015. To participate in the call, please call 866-868-9502, approximately 10 minutes in advance. No passcode is required to participate in the live call or to listen to the replay version. Individual & Institutional Investors will have the opportunity to listen to the conference call/event over the internet by visiting PAR’s website at www.partech.com. Alternatively, listeners may access an archived version of the presentation call after 1:00 p.m. ET on November 5, 2015 through November 12, 2015 by dialing 855-859-2056.