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 10, 2005
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 10, 2005, PAR Technology Corporation issued a press release
announcing its results of operation for the quarterly period ending
December 31, 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 February 10, 2005.
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 10, 2005
/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 Febuary 10, 2005.
CONTACT: Christopher R. Byrnes (315) 738-0600 ext. 226
cbyrnes@partech.com, www.partech.com
PAR TECHNOLOGY CORPORATION REPORTS RECORD FOURTH QUARTER
AND YEAR END RESULTS
-QUARTERLY REVENUES GROW 25% to RECORD $51.4 MILLION
-DILUTED FOURTH QUARTER EPS of $0.20 vs. $0.12; AN INCREASE OF 67%
-2004 RECORD REVENUES GROW 25% to $174.9 MILLION
-EPS INCREASES 126% FOR THE YEAR
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NEW HARTFORD, NY, PAR TECHNOLOGY CORPORATION (NYSE:PTC)
(New Hartford, NY- February 10, 2005) 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, 2004.
For the fourth quarter ended December 31, 2004, PAR Technology Corporation
reported net revenues of $51.4 million compared to $41.2 million in the fourth
quarter 2003, an increase of 25%. Net income rose 72% to $1.9 million versus the
$1.1 million earned in the fourth quarter one year ago. The Company reported
diluted net income per share of $0.20 for this past quarter, compared to the
$0.12 reported for the same period a year earlier, growing 67%.
For the year ended December 31, 2004, PAR Technology Corporation reported net
revenues of $174.9 million, a 25% increase from the $139.8 million reported one
year ago. The Company also reported net income of $5.6 million in 2004 versus
$2.4 million last year, an increase of 132%. Diluted net income per share in
2004 was reported at $0.61, an increase of 126% compared to diluted net income
per share of $0.27 reported for the year 2003.
"Our strategic initiatives aimed at accelerating growth across our business
segments and improving the fundamentals in our hospitality business
specifically, led the way toward achieving our record results," commented Dr.
John W. Sammon, PAR's Chairman & CEO. "During 2004 we increased product sales in
our hospitality business by nearly 29%, and service revenues grew a comparable
25%. Our government contract revenues rose 20% with both our IT Outsourcing and
applied technology sectors contributing equally to our ongoing success. This
segment of our business will remain strong as we exited the year with a $112
million dollar backlog."
Sammon continued, "This past quarter PAR completed the acquisition of
Springer-Miller Systems. This acquisition strengthens our software capabilities
and enables us to develop the next generation of hospitality management systems
for the hotel/resort market space. In summary, we are pleased with our financial
performance and business achievements of 2004. We have created strong momentum
in product development, marketing efforts and margin improvement initiatives as
we look ahead to 2005. It is the employees of PAR who continue to build value
for the Company's shareholders and strive to make our goals a reality."
This release contains forward-looking statements concerning the Company's
strategic plans, market opportunities, cash flows, liquidity, and future growth.
These forward looking statements are neither promises nor guarantees but are
subject to risks and uncertainties that could cause actual results to differ
materially from those set forth in the forward looking statements, including
without limitation, 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 and the hospitality technology
marketplace specifically, risks of intellectual property rights and litigation,
risks associated with foreign sales and high customer concentration and other
risks detailed in the Company's filings with the Securities and Exchange
Commission. The Company cautions investors not to place undue reliance on these
statements, which are current only as of the date of this release. The Company
disclaims any obligation to update or supplement these statements as a result of
changing circumstances or otherwise.
PAR Technology Corporation is a leading provider of professional services and
enterprise business intelligence software and hardware to the hospitality
industry. PAR develops, markets and supports hardware and software products that
improve the ability of hospitality business professionals to make timely,
fact-based business decisions. The Company is a premier provider of I/T
management solutions to hotel and restaurant companies, with over 40,000
installations worldwide in 100 countries. PAR has also been 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 please visit the Company's website at www.partech.com.
PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands except share amounts)
(unaudited)
December 31,
----------------------
2004 2003
Assets --------- ---------
Current assets:
Cash .................................... $ 8,696 $ 1,467
Accounts receivable-net ................. 32,702 31,876
Inventories ............................. 27,047 31,894
Deferred income taxes ................... 6,634 6,486
Other current assets .................... 2,617 2,472
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Total current assets ................ 77,696 74,195
Property, plant and equipment - net .......... 8,123 7,240
Deferred income taxes ........................ -- 2,857
Goodwill ..................................... 15,379 598
Intangible assets, net ....................... 9,235 1,772
Other assets ................................. 1,319 485
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$ 111,752 $ 87,147
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Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt ....... $ 90 $ 89
Borrowings under lines of credit ........ 10,246 6,989
Accounts payable ........................ 9,486 8,301
Accrued salaries and benefits ........... 8,072 5,461
Accrued expenses ........................ 2,998 2,471
Customer deposits ....................... 4,861 --
Deferred service revenue ................ 9,083 5,947
Net liabilities of discontinued operation 323 558
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Total current liabilities ........... 45,159 29,816
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Long-term debt ............................... 2,005 2,092
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Deferred income taxes ........................ 194 --
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Other long-term liabilities .................. 820 --
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Commitments and contingent liabilities
Shareholders' Equity:
Preferred stock, $.02 par value,
1,000,000 shares authorized ........... -- --
Common stock, $.02 par value,
19,000,000 shares authorized;
10,139,132 and 9,966,062 shares issued;
8,935,456 and 8,555,375 outstanding ... 203 199
Capital in excess of par value .......... 31,560 29,761
Retained earnings ....................... 38,010 32,375
Accumulated other comprehensive loss .... (181) (43)
Treasury stock, at cost, 1,203,676
and 1,410,687 shares .................. (6,018) (7,053)
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Total shareholders' equity .......... 63,574 55,239
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$ 111,752 $ 87,147
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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 year ended
ended December 31, December 31,
--------------------- ----------------------
2004 2003 2004 2003
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Net revenues:
Product ........................... $ 23,291 $ 19,276 $ 77,503 $ 60,223
Service ........................... 14,976 10,658 47,466 37,865
Contract .......................... 13,159 11,277 49,915 41,682
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51,426 41,211 174,884 139,770
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Costs of sales:
Product ........................... 14,874 12,215 51,287 39,024
Service ........................... 11,690 9,351 39,769 32,140
Contract .......................... 12,437 10,557 46,682 39,613
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39,001 32,123 137,738 110,777
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Gross margin ................ 12,425 9,088 37,146 28,993
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Operating expenses:
Selling, general and administrative 6,963 5,527 22,106 19,340
Research and development .......... 2,356 1,471 6,270 5,310
Amortization of identifiable
intangible assets ............... 245 -- 245 --
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9,564 6,998 28,621 24,650
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Operating income ....................... 2,861 2,090 8,525 4,343
Other income, net ...................... 547 133 1,134 582
Interest expense ....................... (149) (128) (295) (540)
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Income from continuing operations
before provision for income taxes .... 3,259 2,095 9,364 4,385
Provision for income taxes ............. (1,405) (768) (3,729) (1,593)
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Income from continuing operations ...... 1,854 1,327 5,635 2,792
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Discontinued operations:
Loss from operations of
discontinued component ......... -- (390) -- (570)
Income tax benefit ................ -- 142 -- 207
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Loss on discontinued operations ... -- (248) -- (363)
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Net income ............................. $ 1,854 $ 1,079 $ 5,635 $ 2,429
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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 year ended
ended December 31, December 31,
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2004 2003 2004 2003
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Earnings per share:
Basic:
Income from continuing operations $ 0.21 $ 0.16 $ 0.65 $ 0.33
Loss from discontinued operations $ -- $ (0.03) $ -- $(0.04)
Net income ................ $ 0.21 $ 0.13 $ 0.65 $ 0.29
Diluted:
Income from continuing operations $ 0.20 $ 0.15 $ 0.61 $ 0.32
Loss from discontinued operations $ -- $ (0.03) $ -- $(0.04)
Net income ................ $ 0.20 $ 0.12 $ 0.61 $ 0.27
Weighted average shares outstanding
Basic ........................... 8,909 8,509 8,696 8,438
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Diluted ......................... 9,454 8,990 9,230 8,861
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