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): February 12, 2009
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 February 12, 2009, PAR Technology Corporation issued a press release
announcing its results of operation for the quarterly period ending
December 31, 2008. A copy of the press release is attached hereto as
Exhibit 99.1 and is incorporated herein by reference.
99.1 Press Release dated February 12, 2009.
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: February 12, 2009
/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 February 12, 2009.
Exhibit 99.1 Press Release dated February 12, 2009.
FOR RELEASE: NEW HARTFORD, NY, February 12, 2009
CONTACT: Christopher R. Byrnes (315) 738-0600 ext. 226
cbyrnes@partech.com, www.partech.com
PAR TECHNOLOGY CORPORATION
-REPORTS FOURTH QUARTER RESULTS-
o Q4 Revenues rise 8.6% to record $65.4 million
o 2008 record revenues increase 11.1% to $232.7 million
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NEW HARTFORD, NY, PAR TECHNOLOGY CORPORATION (NYSE:PTC)
New Hartford, NY-- February 12, 2009 -- PAR Technology Corporation (NYSE: PTC),
a leader in providing integrated hardware, software and service solutions to the
hospitality industry, and provider of Government I/T solutions and services,
today reported financial results for the fourth quarter and year ended December
31, 2008.
For the fourth quarter ended December 31, 2008, PAR Technology Corporation
reported revenues of $65.4 million compared to $60.2 million in the fourth
quarter 2007, an increase of 8.6%. Net income in the period was $1.5 million
versus the $483,000 earned in the fourth quarter one year ago. The Company
reported diluted net earnings per share of $0.10 for this past quarter,
significantly higher than the $0.03 diluted net earnings per share reported for
the same period a year earlier.
For the year ended December 31, 2008, PAR Technology Corporation reported record
revenues of $232.7 million, an increase of 11.1% from the $209.5 million
reported one year ago. The Company also reported net income of $2.2 million in
2008 versus a net loss of $2.7 million last year. Diluted net earnings per share
in 2008 were reported at $0.15 compared to diluted net loss per share of $0.19
reported for the year 2007.
John W. Sammon, PAR Chairman & CEO commented, "Our continued improved
performance throughout 2008 demonstrated PAR's ability to successfully
capitalize upon our core businesses and their strength during these times of
economic uncertainties. Hospitality Technology and our Government business
segment both contributed to our record revenue achievement for both the quarter
and fiscal year. The quick-serve sector of restaurants and Government
outsourcing trend both appear to be resistant to the conditions which are
affecting much of our economy."
Sammon went on to say, "We do however, continue to face a number of challenges
in our hotel/resort/spa segment and the table-serve and casual dining restaurant
sector in light of the present economic challenges. We never-the-less are
pleased with our growth in the fourth quarter. We believe our market strength
and portfolio of customers, coupled with prudent R&D spending and the positive
fundamental drivers for each of our market niches, makes PAR a compelling choice
for our customers. Our 2008 growth, along with other indicators for our markets,
gives us confidence we are well positioned for the foreseeable future including
2009 and beyond."
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.
PAR Technology Corporation creates and markets products that help hospitality
operators around the world to better manage money, materials, people and the
guest experience. PAR has provided hardware, software and services to the
world's largest restaurant chains and their franchisees for almost 30 years.
Today the Company's extensive offering includes technology solutions for the
full spectrum of hospitality operations, from boutique hotels and independent
table service restaurants to international QSR chains, all backed by PAR's
global service network. The Company has over 50,000 installations in 105
countries worldwide. PAR is also 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 more information visit the
Company's website at www.partech.com.
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PAR TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
(Unaudited)
December 31,
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2008 2007
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Assets
Current assets:
Cash and cash equivalents ........................ $ 6,227 $ 4,431
Accounts receivable-net .......................... 53,582 43,608
Inventories-net .................................. 41,132 40,319
Income tax refunds ............................... 208 521
Deferred income taxes ............................ 5,301 5,630
Other current assets ............................. 3,588 3,370
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Total current assets ......................... 110,038 97,879
Property, plant and equipment - net ................... 6,879 7,669
Deferred income taxes ................................. 1,525 503
Goodwill .............................................. 25,684 26,998
Intangible assets - net ............................... 8,251 9,899
Other assets .......................................... 1,611 3,570
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Total Assets ............................... $ 153,988 $ 146,518
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Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt ................ $ 1,079 $ 772
Borrowings under lines of credit ................. 8,800 2,500
Accounts payable ................................. 15,293 16,978
Accrued salaries and benefits .................... 8,360 9,919
Accrued expenses ................................. 3,962 3,860
Customer deposits ................................ 6,157 3,898
Deferred service revenue ......................... 16,318 14,357
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Total current liabilities ................... 59,969 52,284
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Long-term debt ........................................ 5,852 6,932
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Other long-term liabilities ........................... 1,910 2,315
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Shareholders' Equity:
Preferred stock, $.02 par value,
1,000,000 shares authorized .................... -- --
Common stock, $.02 par value,
29,000,000 shares authorized;
16,189,718 and 16,047,818 shares issued;
14,536,963 and 14,395,063 outstanding .......... 324 321
Capital in excess of par value ................... 40,173 39,252
Retained earnings ................................ 52,668 50,451
Accumulated other comprehensive income (loss) .... (1,399) 472
Treasury stock, at cost, 1,652,755 shares ........ (5,509) (5,509)
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Total shareholders' equity .................. 86,257 84,987
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Total Liabilities and Shareholders' Equity $ 153,988 $ 146,518
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PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
For the three months For the year ended
ended December 31, December 31,
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2008 2007 2008 2007
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Net revenues:
Product ...................................... $ 23,197 $ 24,024 $ 81,763 $ 77,116
Service ...................................... 22,131 18,735 75,430 67,370
Contract ..................................... 20,051 17,440 75,494 64,998
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65,379 60,199 232,687 209,484
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Costs of sales:
Product ...................................... 15,387 13,947 49,440 45,635
Service ...................................... 14,595 13,788 54,421 51,078
Contract ..................................... 18,899 16,401 71,376 60,863
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48,881 44,136 175,237 157,576
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Gross margin ................................. 16,498 16,063 57,450 51,908
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Operating expenses:
Selling, general and administrative .......... 9,866 11,041 36,790 37,517
Research and development ..................... 3,724 4,392 15,295 17,155
Amortization of identifiable intangible assets 368 391 1,535 1,572
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13,958 15,824 53,620 56,244
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Operating income (loss) ........................... 2,540 239 3,830 (4,336)
Other income, net ................................. 162 483 921 1,227
Interest expense .................................. (431) (327) (1,176) (1,096)
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Income (loss) before provision for income taxes ... 2,271 395 3,575 (4,205)
(Provision) benefit for income taxes .............. (810) 88 (1,358) 1,497
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Net income (loss) ................................. $ 1,461 $ 483 $ 2,217 $ (2,708)
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Earnings (loss) per share
Basic ........................................ $ .10 $ .03 $ .15 $ (.19)
Diluted ...................................... $ .10 $ .03 $ .15 $ (.19)
Weighted average shares outstanding
Basic ........................................ 14,470 14,361 14,421 14,345
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Diluted ...................................... 14,689 14,772 14,761 14,345
========= ========= ========= =========