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 14, 2006
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 14, 2006, PAR Technology Corporation issued a press release
announcing its results of operation for the quarterly period ending
December 31, 2005. 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 14, 2006.
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 14, 2006
/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 14, 2006.
Exhibit 99.1
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 to RECORD $53.5 MILLION
-DILUTED FOURTH QUARTER EPS of $0.22 vs. $0.13; AN INCREASE OF 69%
-2005 RECORD REVENUES GROW 18% to $205.6 MILLION
-DILUTED EPS INCREASES 56% FOR THE YEAR
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NEW HARTFORD, NY, PAR TECHNOLOGY CORPORATION (NYSE:PTC)
(New Hartford, NY- February 14, 2006) 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, 2005.
For the fourth quarter ended December 31, 2005, PAR Technology Corporation
reported net revenues of $53.5 million compared to $51.4 million in the fourth
quarter 2004, an increase of 4%. Net income rose 74% to $3.2 million versus the
$1.9 million earned in the fourth quarter one year ago. The Company reported
diluted net income per share of $0.22 for this past quarter, compared to the
$0.13 reported for the same period a year earlier, growing 69%.
For the year ended December 31, 2005, PAR Technology Corporation reported net
revenues of $205.6 million, an 18% increase from the $174.9 million reported one
year ago. The Company also reported net income of $9.4 million in 2005 versus
$5.6 million last year, an increase of 67%. Diluted net income per share in 2005
was reported at $0.64, an increase of 56% compared to diluted net income per
share of $0.41 reported for the year 2004.
"We are very pleased by our fourth quarter and full-year results in 2005, which
include record revenues for the fourth quarter and the entire year. Our
continued success is attributed to significant customer retention, contract and
margin expansions and core growth across all business lines," commented John W.
Sammon, Chairman and CEO. "Our hospitality technology business continued its
positive momentum for the fourth quarter and the year, posting revenue and
earnings growth and adding new accounts like Papa Murphy's Pizza chain and the
Sanibel Harbour Resort.
"The quarter's results were driven by the continued healthy performance across
all segments of the hospitality technology market and by the improved margins we
have been realizing due to the increase in software revenues. We closed on our
acquisition of PixelPoint Technologies this past October and strongly feel this
is a natural progression for our business as we now can market specific software
products to the table service restaurant segment of hospitality.
Internationally, we will continue to facilitate our customer's new store growth,
specifically in the Asia/Pacific region. The international segment experienced
strong growth both for the quarter and the year."
Sammon continued "Our government I/T services business also had strong results
in 2005. During the quarter we signed agreements to operate a Navy communication
facility in Lago Patria, Italy, which marked an expansion of our current
relationship in the European theatre. In 2005 we also extended our existing
program outside the military specifically with contract awards from the General
Services Administration and the International Broadcasting Bureau."
"As PAR Technology enters its next phase of growth and business opportunities,
it is extremely gratifying to look back on what our employees have achieved
during the past two years," said Sammon in closing. "Our team has created a
leading competitive position in hospitality technology that combines our
superior design and customer service skills, including our intimate knowledge of
hospitality markets with an intense focus on meeting our customers' needs. As a
result, we are now in a position to grow our leadership position in the various
hospitality markets we have identified."
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 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 more information
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,
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2005 2004
Assets --------- ----------
Current assets:
Cash and cash equivalents ..................... $ 4,982 $ 8,696
Accounts receivable-net ....................... 40,781 32,702
Inventories-net ............................... 29,562 27,047
Income tax refunds ............................ 879 --
Deferred income taxes ......................... 5,690 6,634
Other current assets .......................... 2,598 2,617
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Total current assets ...................... 84,492 77,696
Property, plant and equipment - net ................ 8,044 8,123
Goodwill ........................................... 20,622 15,379
Intangible assets - net ............................ 9,904 9,235
Other assets ....................................... 2,087 1,319
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$ 125,149 $ 111,752
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Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt ............. $ 76 $ 90
Borrowings under lines of credit .............. 3,500 10,246
Accounts payable .............................. 12,703 9,486
Accrued salaries and benefits ................. 9,725 8,072
Accrued expenses .............................. 2,203 2,998
Customer deposits ............................. 3,973 4,861
Deferred service revenue ...................... 11,332 9,083
Net liabilities of discontinued operation ..... 149 323
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Total current liabilities ................. 43,661 45,159
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Long-term debt ..................................... 1,948 2,005
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Deferred income taxes .............................. 201 194
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Other long-term liabilities ........................ 847 820
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Commitments and contingent liabilities
Shareholders' Equity:
Preferred stock, $.02 par value,
1,000,000 shares authorized ................. -- --
Common stock, $.02 par value,
19,000,000 shares authorized;
15,914,958 and 15,208,698 shares issued;
14,136,654 and 13,403,184 outstanding ....... 318 304
Capital in excess of par value ................ 37,271 31,459
Retained earnings ............................. 47,442 38,010
Accumulated other comprehensive loss .......... (611) (181)
Treasury stock, at cost,
1,778,304 and 1,805,514 shares .............. (5,928) (6,018)
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Total shareholders' equity ................ 78,492 63,574
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$ 125,149 $ 111,752
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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,
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2005 2004 2005 2004
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Net revenues:
Product ........................... $ 24,344 $ 23,291 $ 91,130 $ 77,503
Service ........................... 15,444 14,976 58,327 47,466
Contract .......................... 13,677 13,159 56,182 49,915
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53,465 51,426 205,639 174,884
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Costs of sales:
Product ........................... 13,435 14,874 53,443 51,287
Service ........................... 11,318 11,690 44,205 39,769
Contract .......................... 12,612 12,437 52,405 46,682
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37,365 39,001 150,053 137,738
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Gross margin ................ 16,100 12,425 55,586 37,146
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Operating expenses:
Selling, general and administrative 8,694 6,963 30,867 22,106
Research and development .......... 2,487 2,356 9,355 6,270
Amortization of identifiable
intangible assets ............... 294 245 1,030 245
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11,475 9,564 41,252 28,621
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Operating income ....................... 4,625 2,861 14,334 8,525
Other income, net ...................... 248 547 743 1,134
Interest expense ....................... (103) (149) (287) (295)
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Income before provision for income taxes 4,770 3,259 14,790 9,364
Provision for income taxes ............. (1,538) (1,405) (5,358) (3,729)
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Net income ............................. $ 3,232 $ 1,854 $ 9,432 $ 5,635
========= ========= ========= =========
Earnings per share:
Basic ............................. $ .23 $ .14 $ .68 $ .43
Diluted ........................... $ .22 $ .13 $ .64 $ .41
Weighted average shares outstanding
Basic ............................. 14,075 13,363 13,792 13,044
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Diluted ........................... 14,775 14,180 14,648 13,845
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