New Hartford, NY- May 7, 2020 — PAR Technology Corporation (NYSE: PAR) (“PAR” or the “Company”) today announced its financial results for its first quarter ended March 31, 2020.
Summary of First Quarter 2020
- Revenues were reported at $54.7 million for the first quarter of 2020, an increase of 22.4%, compared to $44.7 million for the same period in 2019.
- GAAP net loss for the first quarter of 2020 was $10.9 million, or $0.61 loss per share, an increase from the GAAP net loss of $2.7 million, or $0.17 loss per share reported for the same period in 2019.
- Non-GAAP net loss for the first quarter of 2020 was $5.1 million, or $0.28 loss per share, compared to non-GAAP net loss of $1.5 million, or $0.09 loss per share, for the same period in 2019.
Included in the tables at the end of this press release is a reconciliation and description of non-GAAP financial measures to corresponding GAAP financial measures.
“Q1 of 2020 will go down as one of the most transformational in restaurant history. Due to the immediate impact of COVID-19 restrictions, restaurants went from business as usual, to the largest negative demand shock in the industry’s history. Today our customers, the global restaurant community, are on the front lines trying to feed a world frightened, uncertain and looking for comfort. Our brand promise is to deliver the solutions that connect people to the restaurants, meals and moments they love. We’re doing our part to hold true to this promise in 2020,” commented PAR CEO and President Savneet Singh. “Coming into March, Q1 was shaping up to be one of our best in history. By the middle of the month our bookings and installs came to a pause and that pause continued through April. While it is still unknown how this will ultimately play out for the restaurant industry as a whole, we have seen steady progress in restaurant sales from a potential bottom over the last couple weeks. In late April our customers’ businesses began to stabilize after steeply declining earlier in the month. In addition, PAR’s Government business delivered a strong first quarter and is expected to provide stable revenues and cash flows during this volatile business environment.”
Mr. Singh continued, “As to our Company, we believe we are navigating this situation from a position of strength. We strengthened our balance sheet in February and feel confident we can increase market share in a challenged market. This crisis has shed light on the strength of Brink and Restaurant Magic’s focus on the enterprise restaurant segment, and has proven the value of the digital first restaurant that could potentially lead to a more attractive M&A market. We will no doubt feel our share of pain, but our team deeply believes that just surviving is not winning. All that being said, the health and well-being of every PAR team member and their families, our customers and the communities in which we live and operate are our top priorities during these difficult days. We are and will continue to take all the necessary steps to protect our employees and our business.”
Highlights of Brink – First Quarter 2020:
— Brink ARR at end of Q1 ’20 totaled $22.2 million – an increase of $6.6 million, 42%, from end of Q1 ’19
— New store activations in Q1 totaled 970 sites
— Brink bookings in Q1 ‘20 totaled 725 sites
— Brink Open Orders (backlog) totaled 1,180 stores at end of Q1 ’20
— Active Brink sites as of March 31st now total 10,338 restaurants (net of churn)
Highlights Restaurant Magic – First Quarter 2020:
— Restaurant Magic ARR at end of Q1 ’20 totaled $8.6 million – an increase of $1.9 million, 28%, from end of Q1 ‘19
— New store activations in Q1 totaled 507 sites
— Restaurant Magic bookings in Q1 ’20 totaled 596 sites
— Active Restaurant Magic sites as of March 31st now total 5,408 restaurants (net of churn)
There will be a conference call at 4:30 p.m. (Eastern) on May 7, 2020, during which the Company’s management will discuss the financial results for the first quarter ended March 31, 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/investors. Alternatively, listeners may access an archived version of the presentation after 7:30 p.m. on May 7, 2020 through May 14, 2020 by dialing 855-859-2056 and using conference ID 7986656.
About PAR Technology Corporation.
PAR Technology Corporation 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. PAR’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. Through its Government segment, PAR provides intelligence, surveillance, and reconnaissance (“ISR”) solutions and mission systems support to the Department of Defense and other federal agencies. PAR Technology Corporation’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 on Facebook at www.facebook.com/parpointofsale or Twitter at www.twitter.com/Par_tech.
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 risks and uncertainties, which could cause our actual results to differ materially from those expressed in or implied by forward-looking statements contained in this press release. Factors that could cause or contribute to such differences include, but are not limited to: the adverse effect of the novel coronavirus, or COVID-19, pandemic on our business, operations and financial results. While we have taken precautionary measures intended to minimize the impact of COVID-19 to our employees and to our business, including: requiring all employees whose jobs permit to work remotely; the suspension of all non-essential travel; instituting a hiring freeze on non-essential positions; a reduction in the size of our workforce; a temporary furlough of employees and a temporary reduction in the salaries of others; increasing safety stock inventory and the use of alternative sources when possible; and a reduction in discretionary costs, there can be no assurances that these actions will be sufficient and that additional actions will not be required. Factors that have and will likely continue to adversely affect, and that could subsequently adversely impact, our business, operations and financial results, due to the COVID-19 pandemic include: temporary and permanent restaurant and store closures by customers, negatively impacting our sales and revenue; significant reductions or volatility in demand for our products and services, resulting in lost sales, delayed or canceled store implementations, decreased product adoptions and bookings, reduced hardware sales and installations, and delayed or a reprioritization of investments in technology or point-of-sale infrastructure; delayed or payment defaults by customers; business continuity risks due to our work-from-home arrangement and travel restrictions, including increased exposure to potential cybersecurity breaches and attacks, disruptions or delays in product assembly and fulfillment, limitations on our selling and marketing efforts, and strain on the management of our business; our ability to execute our business and growth strategies; the impact on our corporate culture and ability to attract, hire and retain necessary qualified employees to develop and expand our business; and the impairment of goodwill and other intangible assets in the event of a significant decline in our financial performance. The extent to which the COVID-19 pandemic will impact our business, operations, and financial results is uncertain and cannot be predicted, and there can be no assurance that the COVID-19 pandemic will not continue to have a material and adverse effect on our business, operations and financial results during any quarter or year in which we are affected. Other risk 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 filings with the Securities and Exchange Commission. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.
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