Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

PAR Technology Corporation Announces 2022 First Quarter Results

PAR

  • Total revenues increase 47.4% year-over-year from Q1 '21
  • Software Annual Recurring Revenues (ARR)(1) grew to $94.4 million - a 172% increase from $34.6 million reported in Q1 '21

PAR Technology Corporation (NYSE: PAR) (“PAR Technology” or the “Company”) today announced its financial results for the first quarter ended March 31, 2022.

Summary of Fiscal 2022 First Quarter

  • Revenues were reported at $80.3 million for the first quarter of 2022, a 47.4% increase compared to $54.5 million for the same period in 2021. Punchh contributed $11.2 million of revenue for the first quarter of 2022.
  • Net loss for the first quarter of 2022 was $15.7 million, or $0.58 net loss per share, compared to a net loss of $8.3 million, or $0.38 net loss per share reported for the same period in 2021.
  • EBITDA for the first quarter of 2022 was a loss of $6.8 million compared a loss of $3.3 million for the same period in 2021.
  • Adjusted EBITDA for the first quarter of 2022 was a loss of $2.9 million compared to Adjusted EBITDA loss of $4.9 million for the same period in 2021.
  • Adjusted net loss for the first quarter of 2022 was $7.1 million, or $0.26 adjusted diluted net loss per share, compared to an adjusted net loss of $7.6 million, or $0.34 adjusted diluted net loss per share, for the same period in 2021.

A reconciliation and description of non-GAAP financial measures to corresponding GAAP financial measures are included in the tables at the end of this press release.

_______
(1) See “Key Performance Indicators and Non-GAAP Financial Measures” below

PAR Technology CEO, Savneet Singh commented, “PAR delivered a strong operating performance to begin 2022, delivering revenue growth of 47.4% and strong ARR growth in the quarter. ARR at end of Q1 2022 was $94.4 million, a 172% increase from the $34.6 million ARR reported in the first quarter last year. Punchh delivered year-over-year ARR growth of 39% in the quarter and Brink POS reported ARR growth of 35% from Q1 2021. Our product revenue in the quarter grew by 35% from Q1 last year, once again demonstrating strong demand from our enterprise restaurant customers for our unified commerce offerings. Our focus on efficiency has allowed the Company to improve our adjusted EBITDA by 42% from one year ago.”

Mr. Singh continued, “We are at an exciting time in our industry, as restaurants large and small transform and modernize to become software-driven, digital enterprises. Our Q1 results reflect the power of our platform and integrating Punchh with Brink and Data Central and we closed several large brands who chose multiple PAR solutions in the quarter. These recent customer wins demonstrate the accelerating demand for Unified Commerce where restaurants require simpler solutions, fewer integrations and more natively unified solutions."

Highlights of Brink POS - First Quarter 2022:

  • Brink POS ARR at end of Q1 '22 totaled $35.5 million
  • New store Activations in Q1 '22 totaled 1,244 sites
  • Brink POS Bookings in Q1 '22 totaled 1,090 sites
  • Brink POS open orders (backlog) totaled 1,621 sites at end of Q1 '22
  • Active Sites for Brink POS as of March 31, 2022 totaled 16,945 restaurants

Highlights of Punchh - First Quarter 2022:

  • Punchh ARR at end of Q1 '22 totaled $50.2 million
  • New store Activations in Q1 '22 totaled 1,509 sites
  • Active Sites for Punchh as of March 31, 2022 totaled 58,801 restaurants

Total Contracted ARR at end of Q1 '22 totaled more than $116 million

Conference Call.

There will be a conference call at 4:30 p.m. (Eastern) on May 10, 2022, during which the Company’s management will discuss the financial results for the first quarter ended March 31, 2022. To participate in the call, please call 844-419-5412, approximately 10 minutes in advance. No passcode is required to participate in the live call or to listen to the replay version. Investors will have the opportunity to listen to the conference call/event over the internet by visiting the Company’s website at https://www.partech.com/investor-relations/. Alternatively, listeners may access an archived version of the conference call and presentation after 7:30 p.m. on May 10, 2022 through May 17, 2022 by dialing 855-859-2056 and using conference ID 8688754.

About PAR Technology Corporation.

For more than 40 years, PAR Technology Corporation’s (NYSE: PAR) cutting-edge products and services have helped bold and passionate restaurant brands build lasting guest relationships. We are the partner enterprise restaurants rely on when they need to serve amazing moments from open to close, during the most hectic rush hours, and when the world forces them to adapt and overcome. More than 100,000 restaurants in more than 110 countries use PAR’s restaurant software, hardware and services. With the acquisition of Punchh Inc., a leading SaaS-based customer engagement and loyalty solutions provider, PAR has become a unified commerce cloud platform for enterprise restaurants. To learn more, visit www.partech.com or connect with us on LinkedIn, Twitter, Facebook, and Instagram.

Key Performance Indicators and Non-GAAP Financial Measures.

We monitor certain operating data and non-GAAP financial measures in the evaluation and management of our business; certain key operating data and non-GAAP financial measures have been provided as we believe these to be useful in facilitating period-to-period comparisons of our business performance. Operating data and non-GAAP financial measures do not reflect and should be viewed independently of our financial performance determined in accordance with GAAP. Operating data and non-GAAP financial measures are not forecasts or indicators of future or expected results and should not have undue reliance placed upon them by investors.

Where non-GAAP financial measures are included in this press release, the most directly comparable GAAP financial measures and a detailed reconciliation between GAAP and non-GAAP financial measures is included in this press release under “About Non-GAAP Financial Measures”.

Unless otherwise indicated, financial and operating data included in this presentation is as of March 31, 2022.

As used in this press release:

Annualized Recurring Revenue or "ARR” is the annualized revenue from SaaS and related revenue of our software products. We calculate ARR by annualizing the monthly recurring revenue for all active sites as of the last day of each month for the respective reporting period. ARR also includes recurring payment processing services revenue, net of expenses.

“Active Sites” represent locations active on PAR’s SaaS software as of the last day of the respective fiscal period.

“Activations” are calculated as of the end of each month based on the number of SaaS customers that have initiated use of our software products/platforms. Once “activated”, PAR begins to invoice/bill the customer. In specific cases with Punchh, invoicing takes place before activation take place.

“Booking” is a customer purchase order for SaaS; upon PAR's acceptance, the customer is obligated to purchase the SaaS and pay PAR for the services. In specific cases with Punchh, bookings are added at the time of execution of the relevant master services agreement.

“Contracted ARR”, or “CARR” is ARR that includes signed/booked sites that have yet to be activated.

Trademarks.

“PARTM,” “Brink POS®,” “Punchh®,” “Data Central®,” “Restaurant Magic®,” “PAR PhaseTM,” “PixelPoint®” and other trademarks appearing in this press release belong to us.

Forward-Looking Statements.

This press release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, Section 27A of the Securities Act of 1933, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical in nature, but rather are predictive of our future operations, financial condition, financial results, business strategies and prospects. Forward-looking statements are generally identified by words such as “anticipate,” “believe,” “belief,” “continue,” “could,” “expect,” “estimate,” “intend,” “may,” “opportunity,” “plan,” “should,” “will,” “would,” “will likely result,” and similar expressions. Forward-looking statements are based on management's current expectations and assumptions that are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from those expressed in or implied by forward-looking statements contained in this press release on our business, financial condition, and results of operations. Factors that could cause our actual results to differ materially from those expressed in or implied by forward-looking statements contained in this press release include the COVID-19 pandemic and the actions taken by governmental authorities, businesses and individuals in response, macroeconomic trends and geopolitical events (including the effects of the Russia-Ukraine conflict), the competitive marketplace for talent and its impact on employee recruitment and retention, component shortages and/or manufacturing disruptions and logistics challenges, and the other factors discussed in our filings with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except share amounts)

Assets

March 31, 2022

December 31, 2021

Current assets:

Cash and cash equivalents

$

163,207

$

188,419

Accounts receivable – net

54,571

49,978

Inventories

40,930

35,078

Other current assets

11,379

9,532

Total current assets

270,087

283,007

Property, plant and equipment – net

13,429

13,709

Goodwill

457,433

457,306

Intangible assets – net

114,579

118,763

Lease right-of-use assets

3,935

4,348

Other assets

12,233

11,016

Total assets

$

871,696

$

888,149

Liabilities and Shareholders’ Equity

Current liabilities:

Current portion of long-term debt

$

533

$

705

Accounts payable

22,623

20,845

Accrued salaries and benefits

12,718

17,265

Accrued expenses

3,943

5,042

Lease liabilities – current portion

2,153

2,266

Customer deposits and deferred service revenue

16,367

14,394

Total current liabilities

58,337

60,517

Lease liabilities – net of current portion

2,116

2,440

Long-term debt

387,681

305,845

Deferred service revenue – noncurrent

6,463

7,597

Other long-term liabilities

5,629

7,405

Total liabilities

460,226

383,804

Shareholders’ equity:

Preferred stock, $.02 par value, 1,000,000 shares authorized, none outstanding

Common stock, $.02 par value, 58,000,000 shares authorized, 28,278,562 and 28,094,333 shares issued, 27,052,454 and 26,924,397 outstanding at March 31, 2022 and December 31, 2021, respectively

565

562

Additional paid in capital

578,628

640,937

Accumulated deficit

(151,535

)

(122,505

)

Accumulated other comprehensive loss

(3,192

)

(3,704

)

Treasury stock, at cost, 1,226,108 shares and 1,181,449 shares at March 31, 2022 and December 31, 2021, respectively

(12,996

)

(10,945

)

Total shareholders’ equity

411,470

504,345

Total Liabilities and Shareholders’ Equity

$

871,696

$

888,149

See notes to unaudited interim condensed consolidated financial statements included in the Company's quarterly report on Form 10-Q for the quarter ended March 31, 2022 (the “Quarterly Report”).

PAR TECHNOLOGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share amounts)

Three Months Ended March 31,

2022

2021

Revenues, net:

Product

$

25,073

$

18,556

Service

33,773

18,028

Contract

21,439

17,883

Total revenues, net

80,285

54,467

Costs of sales:

Product

19,997

14,885

Service

19,796

12,695

Contract

19,879

16,687

Total cost of sales

59,672

44,267

Gross margin

20,613

10,200

Operating expenses:

Selling, general and administrative

22,368

14,537

Research and development

10,841

5,809

Amortization of identifiable intangible assets

213

275

Gain on insurance proceeds

(4,400

)

Total operating expenses

33,422

16,221

Operating loss

(12,809

)

(6,021

)

Other expense, net

(368

)

(51

)

Interest expense, net

(2,463

)

(2,160

)

Loss on extinguishment of debt

Loss before provision for income taxes

(15,640

)

(8,232

)

Provision for income taxes

(10

)

(39

)

Net loss

$

(15,650

)

$

(8,271

)

Net loss per share (basic and diluted)

$

(0.58

)

$

(0.38

)

Weighted average shares outstanding (basic and diluted)

26,970

21,929

See notes to unaudited interim condensed consolidated financial statements included in the Quarterly Report.

PAR TECHNOLOGY CORPORATION

SUPPLEMENTAL INFORMATION

(Unaudited)

The following table sets forth certain unaudited supplemental financial data for the five trailing quarters indicated (in thousands):

Segment Revenue by Product Line:

2022

2021

Q1

Q4

Q3

Q2

Q1

Restaurant/Retail

Hardware

$

24,653

$

31,207

$

29,669

$

23,355

$

17,835

Software

19,347

17,710

17,168

15,100

7,876

Services

14,846

13,905

12,984

12,669

10,873

Total Restaurant/Retail

$

58,846

$

62,822

$

59,821

$

51,124

$

36,584

Government

Intelligence, Surveillance, and Reconnaissance

$

12,290

$

9,861

$

9,619

$

9,284

$

9,547

Mission Systems

8,915

8,482

8,237

8,338

8,131

Product Services

234

434

183

204

205

Total Government

$

21,439

$

18,777

$

18,039

$

17,826

$

17,883

Total Revenue

$

80,285

$

81,599

$

77,860

$

68,950

$

54,467

About Non-GAAP Financial Measures

The Company reports its financial results in accordance with GAAP. However, non-GAAP adjusted financial measures, as set forth in the reconciliation tables below, are provided because management uses these non-GAAP financial measures in evaluating the results of the Company's continuing operations and believes this information provides investors supplemental insight into underlying business trends and operating results. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. While we believe that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. In addition, these non-GAAP financial measures should be read in conjunction with the Company’s unaudited interim condensed consolidated financial statements prepared in accordance with GAAP.

Within this press release, the Company makes reference to EBITDA, adjusted EBITDA, adjusted net loss, and adjusted diluted net loss per share which are non-GAAP financial measures. EBITDA represents net loss before income taxes, interest expense and depreciation and amortization. Adjusted EBITDA and adjusted net loss, net of tax, represent EBITDA as adjusted to exclude certain non-cash and non-recurring charges, including stock-based compensation, acquisition and integration expense, certain pending litigation expenses and other non-recurring charges that may not be indicative of the Company’s financial performance.

The Company is presenting adjusted EBITDA and adjusted net loss because we believe that they provide a more meaningful comparison than EBITDA and net loss of the Company's core business operating results and those of other similar companies. Management believes that adjusted EBITDA and adjusted net loss, when viewed with the Company's results of operations in accordance with GAAP and the accompanying reconciliations in the tables below, provide useful information about operating performance and period-over-period growth, and provide additional information that is useful for evaluating the operating performance of the Company's core business without regard to potential distortions. Additionally, management believes that adjusted EBITDA permits investors to gain an understanding of the factors and trends affecting its ongoing cash earnings, from which capital investments are made and debt is serviced.

However, EBITDA, adjusted EBITDA and adjusted net loss are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as alternatives to net income (loss) from operations or cash flow from operating activities as indicators of operating performance or liquidity. Also, these measures may not be comparable to similarly titled captions of other companies. The tables below provide reconciliations between net loss and EBITDA, adjusted EBITDA and adjusted net loss.

The Company's results of operations are impacted by certain non-cash and non-recurring charges, including stock-based compensation, acquisition and divestiture related expenditures, expense related to the Company's efforts to resolve a regulatory matter, and other non-recurring charges that may not be indicative of the Company’s financial performance. Management believes that adjusting its costs of sales, operating expenses, operating loss, net loss and diluted loss per share to remove non-recurring charges, provides a useful perspective with respect to the Company's operating results and provides supplemental information to both management and investors by removing items that are difficult to predict and are often unanticipated.

The following tables set forth certain unaudited supplemental financial and other data for the periods indicated (in thousands, except per share and footnote amounts):

Three Months Ended March 31,

2022

2021

Reconciliation of EBITDA and Adjusted EBITDA

Net loss

$

(15,650

)

$

(8,271

)

Provision for income taxes

10

39

Interest expense

2,463

2,160

Depreciation and amortization

6,384

2,810

EBITDA

$

(6,793

)

$

(3,262

)

Stock-based compensation expense (1)

3,537

1,320

Regulatory matter (2)

275

Pending Litigation expense (3)

475

Acquisition and integration costs (4)

686

Gain on insurance proceeds (5)

(4,400

)

Other expense – net (6)

368

51

Adjusted EBITDA

$

(2,888

)

$

(4,855

)

1

Adjustments reflect stock-based compensation expense within selling, general and administrative expenses and cost of contracts of $3.5 million and $1.3 million for the three months ended March 31, 2022 and 2021, respectively.

2

Adjustment reflects the expenses related to our efforts to resolve a regulatory matter and other non-recurring charges of $0.3 million for the three months ended March 31, 2021.

3

Adjustment reflects the expenses accrued for a legal matter of $0.5 million for the three months ended March 31, 2021.

4

Adjustment reflects the expenses incurred in the acquisition and integration of Punchh of $0.7 million for the three months ended March 31, 2021.

5

Adjustment represents the gain on insurance proceeds stemming from a legacy claim of $4.4 million for the three months ended March 31, 2021.

6

Adjustment reflects foreign currency transaction gains and losses, rental income and losses, and other non-recurring expenses recorded in other expense, net in the accompanying statements of operations.

Three Months Ended March 31,

2022

2021

Reconciliation of Adjusted Net Loss/Adjusted Diluted Loss per Share:

Net loss/diluted loss per share

$

(15,650

)

$

(0.58

)

$

(8,271

)

$

(0.38

)

Non-cash interest expense (1)

486

0.02

1,174

0.06

Acquired intangible assets amortization (2)

4,114

0.15

1,139

0.05

Stock-based compensation expense (3)

3,537

0.13

1,320

0.06

Regulatory matter (4)

275

0.01

Litigation expense (5)

475

0.02

Acquisition and integration costs (6)

686

0.03

Gain on insurance proceeds (7)

(4,400

)

(0.20

)

Other expense – net (8)

368

0.01

51

0.01

Adjusted net loss/adjusted diluted loss per share

$

(7,145

)

$

(0.26

)

$

(7,551

)

$

(0.34

)

Adjusted weighted average common shares outstanding

26,970

21,929

1

Adjustment reflects non-cash accretion of interest expense and amortization of issuance costs related to the 4.500% Convertible Senior Notes due 2024, 2.875% Convertible Senior Notes due 2026 and 1.500% Convertible Senior Notes due 2027 of $0.5 million and $1.2 million for the three months ended March 31, 2022 and 2021, respectively.

2

Adjustment amortization expense of acquired developed technology within gross margin of $3.7 million and $0.9 million for the three months ended March 31, 2022 and 2021, respectively; and amortization expense of acquired intangible assets of $0.5 million and $0.3 million for the three months ended March 31, 2022 and 2021, respectively.

3

Adjustments reflect stock-based compensation expense within selling, general and administrative expenses and cost of contracts of $3.5 million and $1.3 million for the three months ended March 31, 2022 and 2021, respectively.

4

Adjustment reflects the expenses related to our efforts to resolve a regulatory matter and other non-recurring charges of $0.3 million for the three months ended March 31, 2021.

5

Adjustment reflects the expenses accrued for a legal matter of $0.5 million for the three months ended March 31, 2021.

6

Adjustment reflects the expenses incurred in the acquisition and integration of Punchh of $0.7 million for the three months ended March 31, 2021.

7

Adjustment represents the gain on insurance proceeds stemming from a legacy claim of $4.4 million for the three months ended March 31, 2021.

8

Adjustment reflects foreign currency transaction gains and losses, rental income and losses, and other non-recurring expenses recorded in other expense, net in the accompanying statements of operations.

Tags:


Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today