Revenues grew 5.5% to $59.6 million in the quarter
New Hartford, NY- April 30, 2015 — PAR Technology Corporation (NYSE: PAR) today reported first quarter revenues of $59.6 million, a 5.5% increase from the $56.5 million reported for the first quarter ended March 31, 2014. The reported net loss in the quarter was $385,000 or $0.02 net loss per share compared to net loss of $989,000 or $0.06 net loss per share for the first quarter last year. On a non-GAAP basis, the Company’s net income for the first quarter was $57,000 or $0.00 per diluted share, improving from the net loss of $644,000 and $0.04 net loss per share reported in the first quarter 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.
The Company also announced it continues to review strategic and operational improvements involving its hospitality segment. The Company, in an assessment of its operations and global delivery of its restaurant technology solutions, has initiated a restructuring to be more aligned with U.S. based operations. This reorganization is expected to increase efficiencies and reduce operating costs. In connection with these changes, PAR will recognize a pre-tax charge in this year’s second fiscal quarter of approximately $500,000. These initiatives are expected to provide ongoing annual savings of at least $2 million. The Company will continue to make necessary changes in its Hospitality segment to improve long-term shareholder value through improved profitability and cash flow.
“This year is off to a solid start with increased momentum in our business, led by growth in both our segments,” said Ronald J. Casciano, Chief Executive Officer & President of PAR Technology. “Our diversification strategy continues to gain traction, evidenced by the recently announced selection of our complete POS “Cloud” solution by Sonny’s BBQ® and the continued strength we see in our distribution channel revenues. We are encouraged with our performance in the quarter and we remain focused on the efficiency and management of our operations.”
Casciano continued, “The strategic realignment we announced this morning demonstrates the steps we continue to take as a Company to lower our operating costs and improve our financial performance. These actions will position us to create greater operating leverage. The realignment better-positions our Company to sharpen our strategic focus, optimize investments and execute on long-term growth and profitability objectives.”
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 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. PAR’s Hospitality business also provides hotel management systems with a complete suite of powerful tools for guest management, recreation management, and timeshare/condo management. In addition, PAR offers the spa industry a leading management application specifically designed to support the unique needs of the resort spa and day spa markets, a rapidly growing hospitality segment. 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.
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There will be a conference call at 10:00 a.m. eastern time on April 30, 2015, during which the Company’s management will discuss the financial results for the first quarter of 2015. If you would like to participate in this conference please call 877-415-3177 approximately 10 minutes before the call is scheduled to begin and use the PAR pass code 55286271. Individual & Institutional Investors will have the opportunity to listen to the conference call/event over the Internet. Investors can listen to the call by visiting PAR’s website at www.partech.com. In the event you are unable to participate in the conference call, an automatic replay will be available on the World Wide Web via www.partech.com until May 7, 2015 or dial 888-286-8010 and use the Pass Code number 78726218 until May 7, 2015 as well.