New Hartford, NY- March 13, 2017 — PAR Technology Corporation (NYSE: PAR) today announced its results of continuing operations for its fourth quarter and full year ended December 31, 2016.
Summary of Fiscal 2016 Fourth Quarter and Year End Financial Results
Fourth Quarter 2016
• Revenues were reported at $60.2 million in the fourth quarter of fiscal 2016, compared to $56.8 million in the same period in 2015, a 6% increase.
• GAAP net income in the fourth quarter of fiscal 2016 was $1.9 million, or $0.12 per diluted share, an increase from the GAAP net income of $1.3 million, or $0.08 earnings per diluted share reported in the same period in 2015.
• Non-GAAP net income in the fourth quarter of fiscal 2016 was $2.1 million, or $0.13 per diluted share, compared to non-GAAP net income of $2.0 million, or $0.13 earnings per diluted share, in the same period in 2015.
Full Year 2016
• Revenues were reported at $229.7 million in fiscal 2016, a slight increase from the $229.0 million in revenues reported for fiscal year 2015.
• GAAP net income for fiscal 2016 was $2.5 million or $0.16 earnings per diluted share, compared to GAAP net income of $4.0 million, or $0.26 earnings per diluted share, in the same period in 2015.
• Non-GAAP net income in fiscal 2016 was $5.3 million, or $0.33 per diluted share, compared to non-GAAP net income of $6.1 million or $0.39 earnings per diluted share, in the same period in 2015.
A reconciliation and description of non-GAAP financial measures to their comparable GAAP financial measures are included in the tables at the end of this press release.
“The fourth quarter was a strong close for 2016, with top line growth of 6% year-over-year. Although offset by reduced Government contract revenues, our fourth quarter performance was driven by higher demand for PAR hardware solutions from Tier 1 customers in our Restaurant and Retail segment and expanded deployments of our Brink cloud software solution. I am pleased to report we ended 2016 by achieving our target of deployed Brink sites,” commented Karen E. Sammon, PAR Technology Corporation President and Chief Executive Officer. “Our financial results reflect the progress we have made executing to our strategy and focusing on operational efficiency within our businesses. Our ability to grow revenues highlights the strength of our brand and the capabilities of our product and service offerings.”
Sammon continued, “With our focus on delivering innovation and customer success, and with operational adjustments, we continue to make necessary changes and drive execution that will position us to capitalize on the long-term growth opportunities for our Company.”
Internal Investigation; Update.
As previously disclosed, the Company is conducting an internal investigation into import/export and sales documentation activities at our China and Singapore offices discovered by management during the third quarter of 2016. The investigation, which is not complete, is being conducted under the oversight of our Audit Committee, with the assistance of outside counsel, and is focused on compliance with certain of our policies, including our Code of Business Conduct and Ethics, and the U.S. Foreign Corrupt Practices Act, or FCPA, and other applicable laws. The Company has voluntarily notified the U.S. Securities and Exchange Commission (“SEC”) and the U.S. Department of Justice (“DOJ”) of these matters, and intends to fully cooperate with both agencies. During the three months ended December 31, 2016, the Company recorded $1,323,000 of expenses relating to the investigation, including expenses of outside legal counsel and forensic accountants. While the investigation is substantially complete, the Company expects to incur additional expenses relating to its completion, as well as in connection with remedial measures being taken and to be taken by the Company to correct the material weaknesses identified in the Company’s internal control over financial reporting. We are presently unable to predict what, if any, actions the SEC, the DOJ, or other governmental agencies (including foreign governmental agencies) will take. The SEC, DOJ, and other governmental authorities have a broad range of civil and criminal sanctions including, injunctive relief, disgorgement, fines, penalties, modifications to our business practices, including the termination or modification of existing business relationships, the imposition of compliance programs and the retention of a monitor to oversee our future compliance. We cannot reasonably estimate the potential liability, if any, to the Company arising out of the China and Singapore matters. However, the imposition of sanctions, fines or remedial measures could have a material adverse effect on the Company’s business, prospects, reputation, financial condition, liquidity, results of operations or cash flows
There will be a conference call at 10:00 a.m. (Eastern) on March 13, 2017, during which the Company’s management will discuss the financial results for the fourth quarter of 2016. 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. on March 13, 2017 through March 20, 2017 by dialing 855-859-2056 and using conference ID 82600661.
About PAR Technology Corporation.
PAR Technology Corporation’s stock is traded on the New York Stock Exchange under the symbol “PAR”. PAR’s Restaurant and Retail segment has been a leading provider of restaurant and retail technology for more than 35 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. For more information visit https://www.partech.com 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, as amended, 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. Factors that could cause actual results to differ materially, include delays in new product development and/or product introduction, changes in customer product and service demands, concentration of revenues from a small group of customers, product and service competition, and the other factors discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. 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.