New Hartford, NY- March 15, 2018, — PAR Technology Corporation (NYSE: PAR) today announced its results of continuing operations for its fourth quarter and full year ended December 31, 2017.
Summary of Fiscal 2017 Fourth Quarter and Year-End Financial Results
Fourth Quarter 2017
• Revenues were reported at $55.5 million in the fourth quarter of fiscal 2017, compared to $60.2 million in the same period in 2016, a 7.8% decrease.
• GAAP net loss in the fourth quarter of fiscal 2017 was $(5.3) million, or $(0.33) per share, a decrease from the GAAP net income of $1.9 million, or $0.12 earnings per diluted share reported in the same period in 2016.
• Non-GAAP net loss in the fourth quarter of fiscal 2017 was $(59,000), or $0.00 per share, compared to non-GAAP net income of $2.1 million, or $0.13 earnings per diluted share, in the same period in 2016.
Full Year 2017
• Revenues were reported at $232.6 million in fiscal 2017, a 1.3% increase from the $229.7 million in revenues reported for the fiscal year 2016.
• GAAP net loss for fiscal 2017 was $(3.6) million or $(0.23) per share, compared to GAAP net income of $2.5 million, or $0.16 earnings per diluted share, in the same period in 2016.
• Non-GAAP net income in fiscal 2017 was $4.2 million, or $0.26 per diluted share, compared to non-GAAP net income of $5.3 million or $0.33 earnings per diluted share, in the same period in 2016.
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.
PAR Technology Corporation’s President & CEO, Dr. Donald H. Foley commented, “PAR is a company in the midst of transition and is investing for the future. PAR has made and will continue to make investments focusing on Brink, PAR’s leading cloud restaurant platform, on our Customer Success organization to ensure that our users are maximizing our solutions for their operations, and on our internal IT systems infrastructure to enable process improvement and cost-efficient automation of workflows.”
“In the fourth quarter, PAR successfully executed reductions in both our domestic and international businesses with an estimated annual savings of $3.5 million. The savings will be reinvested as described above. While our fourth-quarter revenue decreased year-over-year, revenues in the quarter increased $6.6 million sequentially over the third quarter of 2017.”
Dr. Foley concluded by highlighting two important leading indicators, “PAR’s Government segment returned to revenue growth in the quarter while continuing to increase profits. Secondly, PAR’s Restaurant / Retail segment recorded new Brink POS bookings of 1,467 stores in the fourth quarter as compared with new bookings of 426 stores in the sequential third quarter, as market interest in PAR’s Brink solution accelerated. As evidence of the success of our Brink strategy to invest in solutions for multi-unit operators, 70% of the fourth quarter bookings were tied to major accounts captured in 2017.”
There will be a conference call at 4:30 p.m. (Eastern) on March 15, 2018, during which the Company’s management will discuss the financial results for the fourth quarter and year ended December 31, 2017. 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 PAR’s website at www.partech.com. Alternatively, listeners may access an archived version of the presentation call after 7:00 p.m. on March 15, 2018, through March 22, 2018, by dialing 855-859-2056 and using conference ID 3585067.
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. Products from PAR also can be found in retailers, cinemas, cruise lines, stadiums, and foodservice 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 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 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 base and product and service demands, including changes in product or service demands by the two customers from whom a significant portion of our revenue is derived; risks associated with the internal investigation into conduct at our China and Singapore offices, including possible sanctions and fines that may be imposed by the Department of Justice or Securities and Exchange Commission (“SEC”); and the other factors discussed in our most recent Annual Report on Form 10-K and 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.
PAR TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
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PAR TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
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PAR TECHNOLOGY CORPORATION*The 2017 GAAP fourth quarter and full-year results include a one-time write-down of $4,490,000 of the Company’s deferred tax asset due to rate changes included in the Tax Cuts and Jobs Act of 2017.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
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