New Hartford, NY- March 14, 2019 — PAR Technology Corporation (NYSE: PAR) (“Company” or “PAR”) today announced the Company’s results for its fourth quarter and full year ended December 31, 2018.
Summary of Fiscal 2018 Fourth Quarter and Full Year Financial Results
- Revenues were reported at $46.7 million for the fourth quarter of 2018, compared to $55.5 million for the same period in 2017, a 16.0% decrease.
- GAAP net loss for the fourth quarter of 2018 was $6.2 million, or $0.38 loss per diluted share, compared to the GAAP net loss of $5.3 million, or $0.33 loss per diluted share reported for the same period in 2017.
- Non-GAAP net loss for the fourth quarter of 2018 was $3.7 million, or $0.23 loss per diluted share, compared to non-GAAP net loss of $18,000, or $0.00 per diluted share, for the same period in 2017.
- Revenues were reported at $201.2 million for full year 2018, compared to $232.6 million for the same period in 2017, a 13.5% decrease.
- GAAP net loss for the full year 2018 was $24.1 million, or $1.50 loss per diluted share, compared to a loss of $3.4 million, or $0.22 per diluted share reported for the same period in 2017. GAAP net loss for 2018 was impacted by a one-time $14.9 million valuation allowance recorded to reduce the carrying value of deferred tax assets recorded to income tax expense.1
- Non-GAAP net loss for the full year 2018 was $5.0 million, or $0.31 loss per diluted share, compared to non-GAAP net income of $4.4 million, or $0.27 earnings per diluted share, for the same period in 2017.
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 fourth quarter results reflect both the strategic and operational challenges faced by the Company during this past year as we continue our transition from a cyclical business to our goal of being the industry leader in enterprise cloud solutions for the restaurant industry. We are taking the necessary steps to right size the Company during this transition and we initiated business, organizational and cost restructurings earlier this year”, commented Savneet Singh, PAR Technology Interim CEO & President. “In my brief tenure at PAR, I’ve spent considerable time with our customers who continue to highlight the value they find in our Brink SaaS solution. The heightened focus of our customers on Brink demonstrates the potential of this business for shareholder value creation. As a result, we plan to drive our capital allocation decisions through the lens of the Brink solution. In addition, we are working hard to deliver transparency to our shareholders, customers and employees and I look forward to updating you on our progress.”
1 See the within GAAP to Non-GAAP Reconciliations included in this press release for further detail on the valuation allowance.
There will be a conference call at 4:30 p.m. (Eastern) on March 14, 2019, during which the Company’s management will discuss the financial results for the fourth quarter and year ended December 31, 2018. 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. Individual & Institutional 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/about-us/investors. Alternatively, listeners may access an archived version of the presentation call after 7:30 p.m. on March 14, 2019 through March 21, 2019 by dialing 855-859-2056 and using conference ID 5893815.
About PAR Technology Corporation.
PAR Technology Corporation’s stock is traded on the New York Stock Exchange under the symbol “PAR”. PAR’s Restaurant/Retail segment has been a leading provider of restaurant and retail technology for more than 35 years. PAR offers management technology solutions for the full spectrum of restaurant operations, from large chain and independent table service restaurants to international quick service chains. PAR products can be found in retailers, cinemas, cruise lines, stadiums, and food service companies. PAR’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. For more information visit http://www.partech.com/about-us/investors or connect with us on Facebook and Twitter.
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements appear throughout this press release, including express or implied forward-looking statements relating to our expectations regarding anticipated financial performance, customer and product opportunities, and assumptions as to future events. Forward-looking statements are subject to a variety of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those contemplated in these statements. Risks and uncertainties that could cause the Company’s actual results to differ materially include: delays in new product development and/or product introduction; changes in customer base and product, and service demands, including changes in product or service demands by the two restaurant chain customers and the U.S. Department of Defense from each of whom a significant portion of our revenue is derived; risks associated with the internal investigation into conduct at our China and Singapore offices, including sanctions and fines that may be imposed by the U.S. Department of Justice, the Securities and Exchange Commission (“SEC”), and other governmental authorities; our ability to continue to fund current operations under the terms of our credit agreement, which provides for revolving loans in an amount equal to the lesser of $25 million and the borrowing base amount and not being able to obtain additional waivers or modifications to our credit agreement, if necessary; our need to secure alternative or additional sources of capital, which may be unavailable on acceptable terms, or at all; our ability to execute our business plan and grow our Brink business; significant changes in U.S. and international trade policies that restrict imports or increase tariffs on goods imported to the United States from China; and the other risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2018 and our other filings with the SEC. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.
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 tables below, 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 related expenditures, expense relating to the internal investigation into conduct in China and Singapore and the SEC document subpoena, and other non-recurring charges that may not be indicative of the Company’s financial performance. Management believes that adjusting its operating expenses, operating loss, net loss and diluted loss per share to remove non-recurring charges provides a useful perspective with respect to our 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.
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