SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 27, 2004
PAR TECHNOLOGY CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-09720 16-1434688
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(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) incorporation or
organization) Identification Number)
PAR Technology Park
8383 Seneca Turnpike
New Hartford, NY 13413-4991
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (315) 738-0600
Not Applicable
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(Former Name or Former Address, if changed since Last Report)
Item 2.02 Results of Operations and Financial Condition.
(a) The information, including Exhibits attached hereto, in this Current Report
is being furnished and shall not be deemed "filed" for the purposes of
Section 18 of the Securities and Exchange Act of 1934, or otherwise subject
to the liabilities of that Section. The information in this Current Report
shall not be incorporated by reference into any registration statement or
other document pursuant to the Securities Act of 1933, as amended, except
as otherwise expressly stated in such filing.
(b) On October 27, 2004, PAR Technology Corporation issued a press release
announcing its results of operation for the quarterly period ending
September 30, 2004. A copy of the press release is attached hereto as
Exhibit 99.1 and is incorporated herein by reference.
99.1 Press Release dated October 27, 2004.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PAR TECHNOLOGY CORPORATION
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(Registrant)
Date: October 27, 2004
/s/RONALD J. CASCIANO
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Ronald J. Casciano
Vice President, Chief Financial Officer
and Treasurer
EXHIBIT INDEX
Exhibit Number Description
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99.1 Press Release dated October 27, 2004.
CONTACT: Christopher R. Byrnes (315) 738-0600 ext. 226
cbyrnes@partech.com, www.partech.com
PAR TECHNOLOGY CORPORATION REPORTS THIRD QUARTER RESULTS
- REVENUES GROW 18%
- EARNINGS PER SHARE RISE 111% TO $0.19 FROM $0.09
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NEW HARTFORD, NY, PAR TECHNOLOGY CORPORATION (NYSE:PTC)
(New Hartford, NY- October 27, 2004) PAR Technology Corporation (NYSE: PTC), a
provider of integrated hardware, software and service solutions to the
restaurant, hotel/resort, hospitality industries and information-technology
services to the United States Government, today reported third quarter financial
results.
For the third quarter ended September 30, 2004, PAR Technology Corporation
reported revenues of $42.6 million compared to $36 million in the third quarter
2003, an increase of 18%. Net income was reported at $1.7 million, compared to
the $813,000 earned in the third quarter one year ago. The Company reported
diluted net income per share of $0.19 for this past quarter, compared to the
$0.09 reported for the same period a year earlier, an increase of 111%.
For the nine months ended September 30, 2004, PAR Technology Corporation
reported revenues of $123.5 million, a 25% increase when compared to the $98.6
million reported one year ago. The Company also reported net income of $3.8
million in the first nine months of 2004 versus $1.3 million for the first nine
months of 2003. Diluted net income per share for the first nine months of 2004
was reported at $0.41, an increase of 173% when compared to diluted net income
per share of $0.15 reported for the same period in 2003.
"We are pleased both with the Company's third quarter performance and with the
continued broad acceptance of our technology products and services by our core
markets and customers. In addition to surpassing our financial plan for the
quarter, we continue to make operational and strategic gains. Strategically, the
recent acquisition of Springer-Miller Systems, Inc., which closed on October 1
of this year, will strengthen our competitive position across a broad array of
hospitality technology markets. Not only do we fully expect this to be an
accretive transaction, but we believe that the combination of our expertise and
knowledge in hospitality technology and strong relationships within the
marketplace will enable us to improve both the depth and breadth of our combined
businesses," said PAR Technology Chairman and CEO John W. Sammon.
"Operationally, our profitability continues to grow as we gained market share in
our core businesses. We attribute this growth to increasing demand for both our
hospitality technology solutions and our Government design and engineering
services business and believe that these trends will continue. We are confident
in the potential of our Company and our position as a leader in our markets and
remain secure in our ability to continue executing our strategic objectives."
Certain Company information in this release or 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
PAR Technology Corporation develops, markets and supports hardware and software
products that improve the ability of restaurant, hotels/resorts and retail
business professionals to make timely, fact-based business decisions. The
Company is the world's largest supplier of Point-of-Sale systems to the quick
service restaurant market with over 35,000 systems installed in over 95
countries. In addition PAR is a leader in providing computer based system design
and engineering services to the Department of Defense and Federal Government
Agencies. PAR Technology Corporation's stock is traded on the New York Stock
Exchange under the symbol PTC. For additional information visit PAR's website at
www.partech.com.
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PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands except share amounts)
(unaudited)
September 30 December 31,
2004 2003
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Assets
Current assets:
Cash .................................................. $ 5,505 $ 1,467
Accounts receivable-net ............................... 28,052 31,876
Inventories-net ....................................... 31,086 31,894
Deferred income taxes ................................. 6,102 6,486
Other current assets .................................. 2,658 2,472
Total assets of discontinued operation ................ -- 20
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Total current assets .............................. 73,403 74,215
Property, plant and equipment - net ........................ 7,307 7,240
Deferred income taxes ...................................... 1,467 2,857
Other assets ............................................... 3,397 2,855
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$ 85,574 $ 87,167
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Liabilities and Shareholders' Equity
Current Liabilities:
Current portion of long-term debt ..................... $ 87 $ 89
Borrowings under lines of credit ...................... -- 6,989
Accounts payable ...................................... 10,081 8,301
Accrued salaries and benefits ......................... 6,029 5,461
Accrued expenses ...................................... 2,074 2,471
Deferred service revenue .............................. 5,506 5,947
Total liabilities of discontinued operation ........... 390 578
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Total current liabilities ......................... 24,167 29,836
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Long-term debt ............................................. 2,027 2,092
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Commitments and contingent liabilities Shareholders' Equity:
Preferred stock, $.02 par value,
1,000,000 shares authorized ......................... -- --
Common stock, $.02 par value,
19,000,000 shares authorized;
10,080,182 and 9,966,062 shares issued;
8,669,495 and 8,555,375 outstanding ................ 202 199
Capital in excess of par value ........................ 30,309 29,761
Retained earnings ..................................... 36,157 32,375
Accumulated other comprehensive loss .................. (235) (43)
Treasury stock, at cost, 1,410,687 shares ............. (7,053) (7,053)
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Total shareholders' equity ........................ 59,380 55,239
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$ 85,574 $ 87,167
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PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share amounts)
(unaudited)
For the three months For the nine months
ended September 30, ended September 30,
----------------------- -----------------------
2004 2003 2004 2003
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Net revenues:
Product ........................... $ 18,507 $ 15,535 $ 54,212 $ 40,947
Service ........................... 11,613 10,104 32,490 27,207
Contract .......................... 12,515 10,367 36,756 30,405
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42,635 36,006 123,458 98,559
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Costs of sales:
Product ........................... 12,145 10,219 36,413 26,809
Service ........................... 10,050 8,380 28,079 22,789
Contract .......................... 11,633 9,887 34,245 29,056
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33,828 28,486 98,737 78,654
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Gross margin ................ 8,807 7,520 24,721 19,905
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Operating expenses:
Selling, general and administrative 4,882 4,702 15,143 13,813
Research and development .......... 1,269 1,418 3,914 3,839
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6,151 6,120 19,057 17,652
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Operating income ....................... 2,656 1,400 5,664 2,253
Other income, net ...................... 190 60 588 449
Interest expense ....................... (27) (117) (146) (412)
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Income from continuing operations
before provision for income taxes .... 2,819 1,343 6,106 2,290
Provision for income taxes ............. (1,085) (485) (2,324) (825)
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Income from continuing operations ...... 1,734 858 3,782 1,465
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Discontinued operations:
Loss from operations of
discontinued component ......... -- (71) -- (180)
Income tax benefit ................ -- 26 -- 65
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Loss on discontinued operations ... -- (45) -- (115)
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Net income ............................. $ 1,734 $ 813 $ 3,782 $ 1,350
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PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Continued)
(in thousands except per share amounts)
(unaudited)
For the three months For the nine months
ended September 30, ended September 30,
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2004 2003 2004 2003
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Earnings per share:
Basic:
Income from continuing operations $ 0.20 $ 0.10 $ 0.44 $ 0.17
Loss from discontinued operations $ -- $ (0.01) $ -- $ (0.01)
Net income $ 0.20 $ 0.10 $ 0.44 $ 0.16
Diluted:
Income from continuing operations $ 0.19 $ 0.10 $ 0.41 $ 0.17
Loss from discontinued operations $ -- $ (0.01) $ -- $ (0.01)
Net income $ 0.19 $ 0.09 $ 0.41 $ 0.15
Weighted average shares outstanding
Basic 8,669 8,446 8,625 8,414
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Diluted 9,164 8,889 9,159 8,810
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