form8kdated020911.htm
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 9, 2011


PAR TECHNOLOGY CORPORATION
(Exact name of registrant as specified in its charter)



Delaware
1-09720
16-1434688
(State or other jurisdiction of organization)
(Commission File Number)
(I.R.S. Employer incorporation or Identification Number)


PAR Technology Park
8383 Seneca Turnpike
New Hartford, NY
 
 
 
13413-4991
(Address of principal executive offices)
 
(Zip Code)



Registrant's telephone number, including area code: (315) 738-0600


Not Applicable
 (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 9, 2011, PAR Technology Corporation issued a press release announcing its results of operation for the quarterly period ending December 31, 2010.  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 9, 2011.




 
 

 


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
   
(Registrant)
 
 
 
 
 
 
 
 
     
Date: February 9, 2011
 
/s/Ronald J. Casciano
   
Ronald J. Casciano
   
Vice President, Chief Financial Officer, Treasurer and Chief Accounting Officer





 
 

 


EXHIBIT INDEX


Exhibit Number
Description
 
 
99.1
 
Press Release dated February 9, 2011.






 
 

 


Exhibit 99.1
 Press Release dated February 9, 2011.
 





FOR RELEASE:
NEW HARTFORD, NY, February 9, 2011
CONTACT:
Christopher R. Byrnes (315) 738-0600 ext. 226
 
cbyrnes@partech.com, www.partech.com


PAR TECHNOLOGY CORPORATION ANNOUNCES

2010 FOURTH QUARTER & YEAR END RESULTS

Revenues grow 10.7% in Quarter and 7.6% for the year
 
_________________________________________________________________
 
 
NEW HARTFORD, NY, PAR TECHNOLOGY CORPORATION (NYSE:PAR)
 
New Hartford, NY- February 9, 2011 -- PAR Technology Corporation (NYSE: PAR), a provider of integrated hardware, software and service solutions to the restaurant, hotel/resort, and hospitality industries along with information technology services to the U.S. Department of Defense and federal and state government agencies, today reported fourth quarter and year end 2010 financial results.

For the fourth quarter ended December 31, 2010, PAR reported revenues of $64.4 million an increase of 10.7% when compared to the $58.2 million reported for the fourth quarter of 2009.  The Company reported net income of $1.2 million and diluted earnings per share of $0.08 for the period, versus a net loss of $4.9 million and loss per diluted share of $0.33 reported for the same period last year.

For fiscal year 2010, PAR reported total revenues of $239.9 million, an increase of 7.6% when compared to the $223 million reported for fiscal year 2009.  Net income for the year was $3.1 million, and $0.21 earnings per diluted share.  The results represent a dramatic increase from the net loss of $5.2 million and loss per diluted share of $0.36 for fiscal year 2009.

In 2009, fourth quarter and fiscal year results included one-time charges that reduced operating income by approximately $6.5 million, comprised of $1.2 million related to personnel actions, and $5.3 million related to inventory.  In addition the Company recorded a $1.4 million valuation allowance for certain deferred tax assets.

“Our improved fourth quarter sales and earnings were based on the strength of our product and service offerings along with the successful and continued implementation of the McDonald’s North American rollout.   In 2010, as the economy slowly improved, we experienced growth in most sectors of our hospitality business while some particular sectors remained flat to down awaiting still further economic improvement. While our government business’ growth was temporarily interrupted due to the timing of the contractual cycle, we expect growth to be restored in 2011,” said John W. Sammon, PAR Chairman and Chief Executive Officer. “During 2010 we continued to invest in several key initiatives to accelerate our long term sales growth.  NextGen investments in software for restaurants and hotels continue to make progress and we expect meaningful results in 2011 and beyond.  Our focus continues to be on expanding new business lines through channel growth, international reach and new product offerings.”
 
 
 

 

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 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 offerings include 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 U.S. Department of Defense and federal and state government agencies.  PAR Technology Corporation's stock is traded on the New York Stock Exchange under the symbol PAR.  For more information visit the Company’s website at www.partech.com.
 
 
###

 


 
 

 
PAR TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
 (in thousands, except share amounts)
 
 


   
December 31,
 
   
2010
   
2009
 
Assets
Current assets:
           
Cash and cash equivalents
  $ 6,781     $ 3,907  
Accounts receivable-net
    43,517       46,107  
Inventories-net
    38,707       32,867  
Income tax refunds
    152       438  
Deferred income taxes
    5,719       6,362  
Other current assets
    3,067       3,235  
Total current assets
    97,943       92,916  
Property, plant and equipment - net
    5,796       6,332  
Deferred income taxes
    1,079       1,202  
Goodwill
    26,954       26,635  
Intangible assets - net
    10,389       7,243  
Other assets
    2,124       1,775  
Total Assets
  $ 144,285     $ 136,103  
Liabilities and Shareholders’ Equity
               
Current liabilities:
               
Current portion of long-term debt
  $ 1,711     $ 1,404  
Borrowings under lines of credit
          2,000  
Accounts payable
    19,902       12,942  
Accrued salaries and benefits
    9,055       7,607  
Accrued expenses
    2,843       3,868  
Customer deposits
    2,286       1,782  
Deferred service revenue
    16,260       16,598  
Total current liabilities
    52,057       46,201  
Long-term debt
    2,744       4,455  
Other long-term liabilities
    2,725       2,212  
Shareholders’ Equity:
               
Preferred stock, $.02 par value,
               
1,000,000 shares authorized
           
Common stock, $.02 par value,
               
29,000,000 shares authorized;
               
16,746,618 and 16,449,695 shares issued;
               
         15,039,334 and 14,796,940 outstanding
    335       329  
Capital in excess of par value
    42,264       41,382  
Retained earnings
    50,605       47,482  
Accumulated other comprehensive loss
    (613 )     (449 )
Treasury stock, at cost, 1,707,284 and 1,652,755 shares
    (5,832 )     (5,509 )
Total shareholders’ equity
    86,759       83,235  
Total Liabilities and Shareholders’ Equity
  $ 144,285     $ 136,103  

 
 

 
PAR TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
 (in thousands, except per share amounts)


   
For the three months ended
   
For the year ended
 
   
ended December 31,
   
December 31,
 
   
2010
   
2009
   
2010
   
2009
 
                         
Net revenues:
                       
Product
  $ 29,209     $ 19,918     $ 101,394     $ 72,555  
Service
    18,563       17,989       71,932       74,046  
Contract
    16,663       20,300       66,613       76,447  
      64,435       58,207       239,939       223,048  
Costs of sales:
                               
Product
    19,278       14,367       66,534       48,945  
Service
    12,291       16,661       48,432       56,408  
Contract
    15,490       19,158       62,344       72,220  
      47,059       50,186       177,310       177,573  
Gross margin
    17,376       8,021       62,629       45,475  
Operating expenses:
                               
Selling, general and administrative
    11,478       9,386       40,794       36,207  
Research and development
    4,469       4,069       17,061       14,196  
Amortization of identifiable intangible assets
    236       233       939       1,337  
      16,183       13,688       58,794       51,740  
                                 
Operating income (loss)
    1,193       (5,667 )     3,835       (6,265 )
Other income (loss), net
    124       (109 )     640       165  
Interest expense
    (53 )     (72 )     (352 )     (400 )
                                 
Income (loss) before provision for income taxes
    1,264       (5,848 )     4,123       (6,500 )
(Provision) benefit for income taxes
    (110 )     955       (1,000 )     1,314  
Net income (loss)
  $ 1,154     $ (4,893 )   $ 3,123     $ (5,186 )
Earnings (loss) per share
                               
Basic
  $ .08     $ (.33 )   $ .21     $ (.36 )
Diluted
  $ .08     $ (.33 )   $ .21     $ (.36 )
Weighted average shares outstanding
                               
Basic
    14,905       14,666       14,822       14,547  
Diluted
    15,063       14,666       15,008       14,547