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, 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 October 27, 2005, PAR Technology Corporation issued a press release
announcing its results of operation for the quarterly period ending
September 30, 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 October 27, 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: October 27, 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 October 27, 2005.
Exhibit 99.1 Press Release dated October 27, 2005.
RELEASE: NEW HARTFORD, NY, October 27, 2005
CONTACT: Christopher R. Byrnes (315) 738-0600 ext. 226
cbyrnes@partech.com, www.partech.com
PAR TECHNOLOGY CORPORATION REPORTS THIRD QUARTER RESULTS
- REVENUES GROW 22%
- DILUTED EARNINGS PER SHARE RISE 37% TO $0.26 FROM $0.19
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NEW HARTFORD, NY, PAR TECHNOLOGY CORPORATION (NYSE:PTC)
(New Hartford, NY- October 27, 2005) 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, 2005, PAR Technology Corporation
reported revenues of $52.2 million compared to $42.6 million in the third
quarter 2004, an increase of 22%. Net income was reported at $2.5 million, a 47%
increase when compared to the $1.7 million earned in the third quarter one year
ago. The Company reported diluted earnings per share of $0.26 for this past
quarter, compared to the $0.19 reported for the same period a year earlier, an
increase of 37%.
For the nine months ended September 30, 2005, PAR Technology Corporation
reported revenues of $152.2 million, a 23% increase when compared to the $123.5
million reported one year ago. The Company also reported net income of $6.2
million in the first nine months of 2005 versus $3.8 million for the first nine
months of 2004, a 64% rise. Diluted earnings per share for the first nine months
of 2005 was reported at $0.64, an increase of 56% when compared to diluted net
income per share of $0.41 reported for the same period in 2004.
"We are very pleased with our third quarter performance across the board," said
PAR Chairman and CEO John W. Sammon. "Revenues grew at an impressive rate and
our earnings continue to grow at an accelerated pace. As the demand for our
products and services continues to grow we look to expand our business and
technology expertise to capitalize on new business opportunities. Based on our
sales pipeline and market momentum, we anticipate continued growth in our
business for the foreseeable future, as we further implement our strategy."
Sammon concluded, "At this point, our attention is squarely focused on the
execution of business fundamentals, continued revenue growth, new customer
signings, increased penetration in our existing markets and new product
development. We need to capitalize on our opportunities and leverage our growth
throughout all of our operations worldwide, while continuing to deliver
high-quality technology products to our customers on time. In addition, we must
also strive to bring new acquisitions on line quickly and effectively to meet
our high standards of operational excellence. We will continue on our current
course, pursue other strategic acquisitions similar to PixelPoint and
Springer-Miller Systems, the two we've completed in the last 12 months, and
explore other opportunities to enhance our shareholder value."
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 40,000 systems installed in over 100
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,
2005 2004
Assets ------------ ------------
Current assets:
Cash and cash equivalents ............... $ 4,894 $ 8,696
Accounts receivable-net .................. 36,821 32,702
Inventories - net ........................ 29,631 27,047
Deferred income taxes .................... 7,170 6,634
Other current assets ..................... 2,507 2,617
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Total current assets ................. 81,023 77,696
Property, plant and equipment - net ........... 8,141 8,123
Goodwill ...................................... 15,379 15,379
Intangible assets-net ......................... 8,409 9,235
Other assets .................................. 1,897 1,319
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$ 114,849 $ 111,752
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Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt ........ $ 82 $ 90
Borrowings under lines of credit ......... -- 10,246
Accounts payable ......................... 12,420 9,486
Accrued salaries and benefits ............ 8,282 8,072
Accrued expenses ......................... 2,190 2,998
Customer deposits ........................ 4,272 4,861
Deferred service revenue ................. 9,811 9,083
Net liabilities of discontinued operation 192 323
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Total current liabilities ............ 37,249 45,159
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Long-term debt ................................ 1,962 2,005
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Deferred income taxes ......................... 458 194
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Other long-term liabilities ................... 1,456 820
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Shareholders' Equity:
Preferred stock, $.02 par value,
1,000,000 shares authorized ............ -- --
Common stock, $.02 par value,
19,000,000 shares authorized;
10,532,255 and 10,139,132 shares issued;
9,328,579 and 8,935,456 outstanding .... 211 203
Capital in excess of par value ........... 35,908 31,560
Retained earnings ........................ 44,210 38,010
Accumulated other comprehensive loss ..... (587) (181)
Treasury stock, at cost, 1,203,676 shares (6,018) (6,018)
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Total shareholders' equity ........... 73,724 63,574
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$ 114,849 $ 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 nine months
ended September 30, ended September 30,
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2005 2004 2005 2004
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Net revenues:
Product ........................... $ 22,855 $ 18,507 $ 66,786 $ 54,212
Service ........................... 15,065 11,613 42,883 32,490
Contract .......................... 14,277 12,515 42,505 36,756
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52,197 42,635 152,174 123,458
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Costs of sales:
Product ........................... 13,239 12,145 40,008 36,413
Service ........................... 11,517 10,050 32,887 28,079
Contract .......................... 13,284 11,633 39,793 34,245
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38,040 33,828 112,688 98,737
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Gross margin ................ 14,157 8,807 39,486 24,721
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Operating expenses:
Selling, general and administrative 7,457 4,882 22,173 15,143
Research and development .......... 2,483 1,269 6,868 3,914
Amortization of identifiable
intangible assets ............... 246 -- 736 --
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10,186 6,151 29,777 19,057
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Operating income ....................... 3,971 2,656 9,709 5,664
Other income, net ...................... 191 190 495 588
Interest expense ....................... (41) (27) (184) (146)
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Income before provision for income taxes 4,121 2,819 10,020 6,106
Provision for income taxes ............. (1,578) (1,085) (3,820) (2,324)
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Net income ............................. $ 2,543 $ 1,734 $ 6,200 $ 3,782
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Earnings per share:
Basic ............................. $ .27 $ .20 $ .68 $ .44
Diluted ........................... $ .26 $ .19 $ .64 $ .41
Weighted average shares outstanding
Basic ............................. 9,319 8,669 9,131 8,625
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Diluted ........................... 9,834 9,164 9,736 9,159
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