Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PAR TECHNOLOGY CORP | |
Entity Central Index Key | 708821 | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 15,515,847 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net revenues: | ||
Product | $21,686 | $18,592 |
Service | 14,102 | 14,250 |
Contract | 23,836 | 23,699 |
Revenue, net | 59,624 | 56,541 |
Costs of sales: | ||
Product | 14,841 | 12,903 |
Service | 9,320 | 9,553 |
Contract | 22,474 | 22,072 |
Cost of goods and services sold | 46,635 | 44,528 |
Gross margin | 12,989 | 12,013 |
Operating expenses: | ||
Selling, general and administrative | 9,064 | 9,263 |
Research and development | 4,345 | 3,864 |
Amortization of identifiable intangible assets | 249 | 0 |
Operating expenses | 13,658 | 13,127 |
Operating loss | -669 | -1,114 |
Other expense, net | -229 | -78 |
Interest expense | -86 | -17 |
Loss before benefit from income taxes | -984 | -1,209 |
Benefit for income taxes | 599 | 220 |
Net loss | ($385) | ($989) |
Earnings Per Share: | ||
Basic (in dollars per share) | ($0.02) | ($0.06) |
Diluted (in dollars per share) | ($0.02) | ($0.06) |
Weighted average shares outstanding | ||
Basic (in shares) | 15,596 | 15,499 |
Diluted (in shares) | 15,596 | 15,499 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) [Abstract] | ||
Net loss | ($385) | ($989) |
Other comprehensive loss, net of applicable tax: | ||
Foreign currency translation adjustments | -255 | 10 |
Comprehensive loss | ($640) | ($979) |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $5,968 | $10,167 |
Accounts receivable - net | 32,383 | 31,445 |
Inventories-net | 27,227 | 25,922 |
Deferred income taxes | 5,689 | 4,512 |
Other current assets | 5,225 | 4,597 |
Total current assets | 76,492 | 76,643 |
Property, plant and equipment - net | 6,070 | 6,135 |
Deferred income taxes | 11,235 | 11,357 |
Goodwill | 17,167 | 17,167 |
Intangible assets - net | 22,825 | 22,952 |
Other assets | 3,158 | 3,043 |
Total Assets | 136,947 | 137,297 |
Current liabilities: | ||
Current portion of long-term debt | 3,174 | 3,173 |
Borrowings under line of credit | 1,227 | 5,000 |
Accounts payable | 16,103 | 19,676 |
Accrued salaries and benefits | 5,509 | 6,429 |
Accrued expenses | 5,536 | 6,578 |
Customer deposits | 6,143 | 2,345 |
Deferred service revenue | 18,635 | 12,695 |
Income taxes payable | 321 | 475 |
Total current liabilities | 56,648 | 56,371 |
Long-term debt | 2,548 | 2,566 |
Other long-term liabilities | 8,739 | 8,847 |
Total liabilities | 67,935 | 67,784 |
Commitments and contingencies | ||
Shareholders' Equity: | ||
Preferred stock, $.02 par value, 1,000,000 shares authorized | 0 | 0 |
Common stock, $.02 par value, 29,000,000 shares authorized; 17,240,340 and 17,274,708 shares issued, 15,532,231 and 15,566,599 outstanding at March 31, 2015 and December 31, 2014, respectively | 345 | 346 |
Capital in excess of par value | 44,994 | 44,854 |
Retained earnings | 31,080 | 31,465 |
Accumulated other comprehensive loss | -1,571 | -1,316 |
Treasury stock, at cost, 1,708,109 shares | -5,836 | -5,836 |
Total shareholders' equity | 69,012 | 69,513 |
Total Liabilities and Shareholders' Equity | $136,947 | $137,297 |
CONSOLIDATED_BALANCE_SHEETS_Un1
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Shareholders Equity: | ||
Preferred stock, par value (in dollars per share) | $0.02 | $0.02 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, par value (in dollars per share) | $0.02 | $0.02 |
Common stock, authorized (in shares) | 29,000,000 | 29,000,000 |
Common stock, issued (in shares) | 17,240,340 | 17,274,708 |
Common stock, outstanding (in shares) | 15,532,231 | 15,566,599 |
Treasury stock, at cost (in shares) | 1,708,109 | 1,708,109 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net loss | ($385) | ($989) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 1,143 | 830 |
Provision for bad debts | 150 | 242 |
Provision for obsolete inventory | 421 | 826 |
Equity based compensation | 245 | 523 |
Deferred income tax | -1,055 | -221 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -1,088 | -3,706 |
Inventories | -1,726 | 795 |
Income tax payable | -154 | -265 |
Other current assets | -628 | 140 |
Other assets | -115 | -157 |
Accounts payable | -3,573 | 737 |
Accrued salaries and benefits | -920 | -1,319 |
Accrued expenses | -1,042 | 479 |
Customer deposits | 3,798 | -79 |
Deferred service revenue | 5,940 | 4,115 |
Other long-term liabilities | -108 | -42 |
Deferred tax equity based compensation | -105 | 0 |
Net cash provided by operating activities | 798 | 1,909 |
Cash flows from investing activities: | ||
Capital expenditures | -303 | -591 |
Capitalization of software costs | -622 | -994 |
Net cash used in investing activities | -925 | -1,585 |
Cash flows from financing activities: | ||
Payments of long-term debt | -43 | -55 |
Payments of other borrowings | -3,773 | 0 |
Proceeds and excess tax benefits from stock awards, net | -1 | 2 |
Net cash used in financing activities | -3,817 | -53 |
Effect of exchange rate changes on cash and cash equivalents | -255 | 10 |
Net increase (decrease) in cash and cash equivalents | -4,199 | 281 |
Cash and cash equivalents at beginning of period | 10,167 | 10,015 |
Cash and equivalents at end of period | 5,968 | 10,296 |
Cash paid during the period for: | ||
Interest | 54 | 17 |
Income taxes, net of (refunds) | $154 | $268 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 — Summary of Significant Accounting Policies |
The accompanying unaudited interim consolidated financial statements have been prepared by PAR Technology Corporation (the “Company” or “PAR”) in accordance with U.S. generally accepted accounting principles for interim financial statements and with the instructions to Form 10-Q and Regulation S-X pertaining to interim financial statements. Accordingly, these interim financial statements do not include all information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of the Company, such unaudited statements include all adjustments (which comprise only normal recurring accruals) necessary for a fair presentation of the results for such periods. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results of operations to be expected for any future period. The consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2014 included in the Company’s December 31, 2014 Annual Report to the Securities and Exchange Commission on Form 10-K. | |
The preparation of consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include: the carrying amount of property, plant and equipment, identifiable intangible assets and goodwill, equity based compensation, and valuation allowances for receivables, inventories and deferred income taxes. Actual results could differ from those estimates. | |
The current economic conditions and the continued financial volatility in the U.S. and in many other countries in which the Company operates could contribute to decreased consumer confidence and continued economic uncertainty which may adversely impact the Company’s operating performance. The Company continues to see strength in the markets which it serves; however the continued instability in the global economy could have an impact on purchases of the Company’s products, which could result in a reduction of sales, operating income and cash flows. A decline in these results could have a material adverse impact on the underlying estimates used in deriving the fair value of the Company’s reporting units used in support of its annual goodwill impairment test. These conditions may result in an impairment charge in future periods. | |
Certain amounts for prior periods have been reclassified to conform to the current period classification. |
Acquisition
Acquisition | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Acquisition [Abstract] | |||||
Acquisition | Note 2 — Acquisition | ||||
On September 18, 2014, PAR and its wholly-owned subsidiary, ParTech, Inc. ("ParTech"), entered into and closed a definitive agreement with Brink Software Inc. ("Brink") and all the shareholders of Brink pursuant to which ParTech has purchased the equity interest of Brink in a two-step closing. This acquisition was to expand the Company’s cloud based POS software offerings to complement the Company’s existing infrastructure. The guaranteed portion of the purchase price for Brink’s shares will total $10 million in cash, which is payable over a period of two years with $5.0 million paid at closing, $3.0 million payable on the first year anniversary of close, and $2.0 million payable on the second year anniversary of close. In addition to the guaranteed payments, there is a contingent consideration of up to $7.0 million payable to the former owners of Brink based on the achievement of certain conditions as defined in the definitive agreement. | |||||
The payment of $5.0 million on September 18, 2014, was for the purchase of 51% of Brink’s outstanding shares. The remaining 49% will be purchased and transferred on September 18, 2015, the first anniversary of the initial closing date, for a purchase price of $5.0 million, $3.0 million of which will be payable at the second closing and the $2.0 million balance will be payable on September 18, 2016. The Company has a current note payable included within the Consolidated Balance Sheet of $3.0 million for payment at the second close. The estimated fair value of the long term portion of the note payable due on September 18, 2016 is approximately $1.8 million and is included within long-term debt in PAR’s consolidated balance sheet. Per the stock purchase agreement, Brink shareholders assigned their voting rights of the remaining 49% of Brink shares to PAR. As a result, PAR controls 100% of the Brink shares and fully consolidates the financial results of Brink in accordance with ASC Topic 805. The agreement also provides for up to $1.0 million of the purchase price to be delivered into escrow if one or more claims arise within the first twelve months of the transaction. Such escrow will serve as a source of payment for any indemnification obligations that may arise. | |||||
The contingent purchase price maximum of $7.0 million can be earned through fiscal year 2018, based upon the achievement of certain conditions as defined in the definitive agreement. The estimated fair value of this contingent consideration is approximately $5.0 million and is included within non-current liabilities in PAR’s consolidated balance sheet. | |||||
On an unaudited proforma basis, assuming the completed acquisition had occurred as of the beginning of the period presented, the consolidated results of the Company would have been as follows (in thousands, except per share amounts): | |||||
For the three months | |||||
ended March 31, 2014 | |||||
Revenues | 56,903 | ||||
Net loss | (1,246 | ) | |||
Earnings per share: | |||||
Basic | (0.08 | ) | |||
Diluted | (0.08 | ) | |||
The unaudited proforma financial information presented above gives effect to purchase accounting adjustments which have resulted or are expected to result from the acquisition. This proforma information is not necessarily indicative of the results that would actually have been obtained had the companies combined for the periods presents. |
Accounts_Receivable
Accounts Receivable | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounts Receivable [Abstract] | |||||||||
Accounts Receivable | Note 3 — Accounts Receivable | ||||||||
The Company’s net accounts receivable consist of: | |||||||||
(in thousands) | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Government segment: | |||||||||
Billed | $ | 11,265 | $ | 9,340 | |||||
Advanced billings | (770 | ) | (450 | ) | |||||
10,495 | 8,890 | ||||||||
Hospitality segment: | |||||||||
Accounts receivable - net | 21,888 | 22,555 | |||||||
$ | 32,383 | $ | 31,445 | ||||||
At March 31, 2015 and December 31, 2014, the Company had recorded allowances for doubtful accounts of $711,000 and $582,000, respectively, against Hospitality accounts receivable. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventories [Abstract] | |||||||||
Inventories | Note 4 — Inventories | ||||||||
Inventories are primarily used in the manufacture, maintenance and service of Hospitality segment systems. The components of inventories-net are: | |||||||||
(in thousands) | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Finished Goods | $ | 14,378 | $ | 13,609 | |||||
Work in process | 317 | 457 | |||||||
Component parts | 4,334 | 3,748 | |||||||
Service parts | 8,198 | 8,108 | |||||||
$ | 27,227 | $ | 25,922 |
Identifiable_intangible_assets
Identifiable intangible assets | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Identifiable intangible assets [Abstract] | |||||||||
Identifiable intangible assets | Note 5 — Identifiable intangible assets | ||||||||
The Company’s identifiable intangible assets represent intangible assets acquired from the Brink acquisition as well as internally developed software costs. The Company capitalizes certain costs related to the development of computer software sold by its Hospitality segment. Software development costs incurred prior to establishing technological feasibility are charged to operations and included in research and development costs in the period the costs are incurred. Software development costs incurred after establishing technological feasibility (as defined within ASC 985-20) are capitalized and amortized on a product-by-product basis when the product is available for general release to customers. Software costs capitalized during the three months ended March 31, 2015 were $622,000. Software costs capitalized during the three ended March 31, 2014 were $994,000. | |||||||||
Annual amortization, charged to cost of sales when the product is available for general release to customers, is computed using the greater of (a) the straight-line method over the remaining estimated economic life of the product, generally three to seven years or (b) the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product. Amortization of capitalized software costs for the three months ended March 31, 2015 were $500,000. Amortization costs for the three months ended March 31, 2014 were $464,000. | |||||||||
During the three months ended March 31, 2015, the Company recorded $249,000 of amortization expense associated with acquired identifiable intangible assets from the acquisition of Brink Software. The Company did not record any amortization expense associated with acquired identifiable intangible assets for the three months ended March 31, 2014. | |||||||||
The components of identifiable intangible assets are: | |||||||||
(in thousands) | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Acquired and internally developed software costs | $ | 26,756 | $ | 26,134 | |||||
Customer Relationships | 160 | 160 | |||||||
Non-competition agreements | 30 | 30 | |||||||
Trademarks, trade names (non-amortizable) | 2,200 | 2,200 | |||||||
29,146 | 28,524 | ||||||||
Less accumulated amortization | (6,321 | ) | (5,572 | ) | |||||
$ | 22,825 | $ | 22,952 | ||||||
The expected future amortization of these intangible assets assuming straight-line amortization of capitalized software costs and acquisition related intangibles is as follows, (in thousands): | |||||||||
2015 | $ | 2,418 | |||||||
2016 | 3,580 | ||||||||
2017 | 3,479 | ||||||||
2018 | 3,377 | ||||||||
2019 | 3,069 | ||||||||
Thereafter | 4,702 | ||||||||
Total | $ | 20,625 |
Stock_Based_Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2015 | |
Stock Based Compensation [Abstract] | |
Stock Based Compensation | Note 6 — Stock Based Compensation |
The Company applies the fair value recognition provisions of ASC Topic 718 Stock-Based Compensation. The Company recorded stock based compensation of $245,000 and $523,000 for the three months ended March 31, 2015 and March 31, 2014, respectively. The amount recorded for the three months ended March 31, 2015 was recorded net of benefits of $28,000 as a result of forfeitures of unvested stock awards prior to the completion of the requisite service period. At March 31, 2015, the aggregate unrecognized compensation expense related to non-vested equity awards was $1.3 million (net of estimated forfeitures), which is expected to be recognized as compensation expense in fiscal years 2015 through 2018. | |
For the three month period ended March 31, 2015, the Company recognized compensation expense related to the performance awards based on its estimate of the probability of achievement in accordance with ASC Topic 718. |
Earnings_per_share
Earnings per share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings per share [Abstract] | |||||||||
Earnings per share | Note 7 — Earnings per share | ||||||||
Earnings per share are calculated in accordance with ASC Topic 260, which specifies the computation, presentation and disclosure requirements for earnings per share (EPS). It requires the presentation of basic and diluted EPS. Basic EPS excludes all dilution and is based upon the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. | |||||||||
For the three months ended March 31, 2015 and 2014 there was no anti-dilutive stock options outstanding as the Company reported a net loss for both periods. | |||||||||
The following is a reconciliation of the weighted average shares outstanding for the basic and diluted EPS computations (in thousands, except per share data): | |||||||||
For the three months | |||||||||
ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net loss | $ | (385 | ) | $ | (989 | ) | |||
Basic: | |||||||||
Shares outstanding at beginning of period | 15,592 | 15,473 | |||||||
Weighted average shares issued during the period, net | 4 | 26 | |||||||
Weighted average common shares, basic | 15,596 | 15,499 | |||||||
Net loss per common share, basic | $ | (0.02 | ) | $ | (0.06 | ) | |||
Diluted: | |||||||||
Weighted average common shares, basic | 15,596 | 15,499 | |||||||
Dilutive impact of stock options and restricted stock awards | - | - | |||||||
Weighted average common shares, diluted | 15,596 | 15,499 | |||||||
Net loss per common share, diluted | $ | (0.02 | ) | $ | (0.06 | ) | |||
Segment_and_Related_Informatio
Segment and Related Information | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment and Related Information [Abstract] | |||||||||
Segment and Related Information | Note 8 — Segment and Related Information | ||||||||
The Company’s reportable segments are strategic business units that have separate management teams and infrastructures that offer different products and services. | |||||||||
The Company has two reportable segments, Hospitality and Government. The Hospitality segment offers integrated solutions to the hospitality industry. These offerings include industry leading hardware and software applications utilized at the point-of-sale, back of store and corporate office, property management, spa and activity applications and includes the acquisition of Brink Software. This segment also offers customer support including field service, installation, and twenty-four hour telephone support and depot repair. The Government segment performs complex technical studies, analysis, and experiments, develops innovative solutions, and provides on-site engineering in support of advanced defense, security, and aerospace systems. This segment also provides expert on-site services for operating and maintaining U.S. Government-owned communication assets. | |||||||||
Information noted as “Other” primarily relates to the Company’s corporate, home office operations. | |||||||||
Information as to the Company's segments is set forth below. | |||||||||
(in thousands) | |||||||||
For the three months | |||||||||
ended March 31, | |||||||||
2015 | 2014 | ||||||||
Revenues: | |||||||||
Hospitality | $ | 35,788 | $ | 32,842 | |||||
Government | 23,836 | 23,699 | |||||||
Total | $ | 59,624 | $ | 56,541 | |||||
Operating income (loss): | |||||||||
Hospitality | $ | (1,641 | ) | $ | (2,061 | ) | |||
Government | 1,245 | 1,487 | |||||||
Other | (273 | ) | (540 | ) | |||||
(669 | ) | (1,114 | ) | ||||||
Other income, net | (229 | ) | (78 | ) | |||||
Interest expense | (86 | ) | (17 | ) | |||||
Loss before benefit from income taxes | $ | (984 | ) | $ | (1,209 | ) | |||
Depreciation, amortization and accretion: | |||||||||
Hospitality | $ | 1,062 | $ | 745 | |||||
Government | 12 | 13 | |||||||
Other | 69 | 72 | |||||||
Total | $ | 1,143 | $ | 830 | |||||
Capital expenditures including software costs: | |||||||||
Hospitality | $ | 865 | $ | 1,441 | |||||
Government | - | 26 | |||||||
Other | 60 | 118 | |||||||
Total | $ | 925 | $ | 1,585 | |||||
Revenues by country: | |||||||||
United States | $ | 53,253 | $ | 49,555 | |||||
Other Countries | 6,371 | 6,986 | |||||||
Total | $ | 59,624 | $ | 56,541 | |||||
The following table represents identifiable assets by business segment: | |||||||||
(in thousands) | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Hospitality | $ | 102,514 | $ | $104,027 | |||||
Government | 12,958 | 11,221 | |||||||
Other | 21,475 | 22,049 | |||||||
Total | $ | 136,947 | $ | $137,297 | |||||
The following table represents assets by country based on the location of the assets: | |||||||||
(in thousands) | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
United States | $ | 121,991 | $ | 116,155 | |||||
Other Countries | 14,956 | 21,142 | |||||||
Total | $ | 136,947 | $ | 137,297 | |||||
The following table represents Goodwill by business segment: | |||||||||
(in thousands) | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Hospitality | $ | 16,431 | $ | 16,431 | |||||
Government | 736 | 736 | |||||||
Total | $ | 17,167 | $ | 17,167 | |||||
Customers comprising 10% or more of the Company's total revenues are summarized as follows: | |||||||||
For the Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Hospitality segment: | |||||||||
McDonald’s Corporation | 16 | % | 14 | % | |||||
Yum! Brands, Inc. | 7 | % | 11 | % | |||||
Government segment: | |||||||||
U.S. Department of Defense | 40 | % | 42 | % | |||||
All Others | 37 | % | 33 | % | |||||
100 | % | 100 | % | ||||||
No other customer within All Others represented more than 10% of the Company’s total revenue for the three months ended March 31, 2015 or 2014. | |||||||||
Acquisition_Tables
Acquisition (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Acquisition [Abstract] | |||||
Schedule of unaudited proforma information | On an unaudited proforma basis, assuming the completed acquisition had occurred as of the beginning of the period presented, the consolidated results of the Company would have been as follows (in thousands, except per share amounts): | ||||
For the three months | |||||
ended March 31, 2014 | |||||
Revenues | 56,903 | ||||
Net loss | (1,246 | ) | |||
Earnings per share: | |||||
Basic | (0.08 | ) | |||
Diluted | (0.08 | ) |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounts Receivable [Abstract] | |||||||||
Accounts receivable | The Company’s net accounts receivable consist of: | ||||||||
(in thousands) | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Government segment: | |||||||||
Billed | $ | 11,265 | $ | 9,340 | |||||
Advanced billings | (770 | ) | (450 | ) | |||||
10,495 | 8,890 | ||||||||
Hospitality segment: | |||||||||
Accounts receivable - net | 21,888 | 22,555 | |||||||
$ | 32,383 | $ | 31,445 | ||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventories [Abstract] | |||||||||
Components of inventory | Inventories are primarily used in the manufacture, maintenance and service of Hospitality segment systems. The components of inventories-net are: | ||||||||
(in thousands) | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Finished Goods | $ | 14,378 | $ | 13,609 | |||||
Work in process | 317 | 457 | |||||||
Component parts | 4,334 | 3,748 | |||||||
Service parts | 8,198 | 8,108 | |||||||
$ | 27,227 | $ | 25,922 |
Identifiable_intangible_assets1
Identifiable intangible assets (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Identifiable intangible assets [Abstract] | |||||||||
Components of identifiable intangible assets | The components of identifiable intangible assets are: | ||||||||
(in thousands) | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Acquired and internally developed software costs | $ | 26,756 | $ | 26,134 | |||||
Customer Relationships | 160 | 160 | |||||||
Non-competition agreements | 30 | 30 | |||||||
Trademarks, trade names (non-amortizable) | 2,200 | 2,200 | |||||||
29,146 | 28,524 | ||||||||
Less accumulated amortization | (6,321 | ) | (5,572 | ) | |||||
$ | 22,825 | $ | 22,952 | ||||||
Future amortization of intangible assets | The expected future amortization of these intangible assets assuming straight-line amortization of capitalized software costs and acquisition related intangibles is as follows, (in thousands): | ||||||||
2015 | $ | 2,418 | |||||||
2016 | 3,580 | ||||||||
2017 | 3,479 | ||||||||
2018 | 3,377 | ||||||||
2019 | 3,069 | ||||||||
Thereafter | 4,702 | ||||||||
Total | $ | 20,625 |
Earnings_per_share_Tables
Earnings per share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings per share [Abstract] | |||||||||
Reconciliation of the weighted average shares outstanding for the basic and diluted EPS computations | The following is a reconciliation of the weighted average shares outstanding for the basic and diluted EPS computations (in thousands, except per share data): | ||||||||
For the three months | |||||||||
ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net loss | $ | (385 | ) | $ | (989 | ) | |||
Basic: | |||||||||
Shares outstanding at beginning of period | 15,592 | 15,473 | |||||||
Weighted average shares issued during the period, net | 4 | 26 | |||||||
Weighted average common shares, basic | 15,596 | 15,499 | |||||||
Net loss per common share, basic | $ | (0.02 | ) | $ | (0.06 | ) | |||
Diluted: | |||||||||
Weighted average common shares, basic | 15,596 | 15,499 | |||||||
Dilutive impact of stock options and restricted stock awards | - | - | |||||||
Weighted average common shares, diluted | 15,596 | 15,499 | |||||||
Net loss per common share, diluted | $ | (0.02 | ) | $ | (0.06 | ) | |||
Segment_and_Related_Informatio1
Segment and Related Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment and Related Information [Abstract] | |||||||||
Information of the Company's segments | Information noted as “Other” primarily relates to the Company’s corporate, home office operations. | ||||||||
Information as to the Company's segments is set forth below. | |||||||||
(in thousands) | |||||||||
For the three months | |||||||||
ended March 31, | |||||||||
2015 | 2014 | ||||||||
Revenues: | |||||||||
Hospitality | $ | 35,788 | $ | 32,842 | |||||
Government | 23,836 | 23,699 | |||||||
Total | $ | 59,624 | $ | 56,541 | |||||
Operating income (loss): | |||||||||
Hospitality | $ | (1,641 | ) | $ | (2,061 | ) | |||
Government | 1,245 | 1,487 | |||||||
Other | (273 | ) | (540 | ) | |||||
(669 | ) | (1,114 | ) | ||||||
Other income, net | (229 | ) | (78 | ) | |||||
Interest expense | (86 | ) | (17 | ) | |||||
Loss before benefit from income taxes | $ | (984 | ) | $ | (1,209 | ) | |||
Depreciation, amortization and accretion: | |||||||||
Hospitality | $ | 1,062 | $ | 745 | |||||
Government | 12 | 13 | |||||||
Other | 69 | 72 | |||||||
Total | $ | 1,143 | $ | 830 | |||||
Capital expenditures including software costs: | |||||||||
Hospitality | $ | 865 | $ | 1,441 | |||||
Government | - | 26 | |||||||
Other | 60 | 118 | |||||||
Total | $ | 925 | $ | 1,585 | |||||
Revenues by country: | |||||||||
United States | $ | 53,253 | $ | 49,555 | |||||
Other Countries | 6,371 | 6,986 | |||||||
Total | $ | 59,624 | $ | 56,541 | |||||
Identifiable assets by business segment | The following table represents identifiable assets by business segment: | ||||||||
(in thousands) | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Hospitality | $ | 102,514 | $ | $104,027 | |||||
Government | 12,958 | 11,221 | |||||||
Other | 21,475 | 22,049 | |||||||
Total | $ | 136,947 | $ | $137,297 | |||||
Identifiable assets by geographic area | The following table represents assets by country based on the location of the assets: | ||||||||
(in thousands) | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
United States | $ | 121,991 | $ | 116,155 | |||||
Other Countries | 14,956 | 21,142 | |||||||
Total | $ | 136,947 | $ | 137,297 | |||||
Goodwill by business segment | The following table represents Goodwill by business segment: | ||||||||
(in thousands) | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Hospitality | $ | 16,431 | $ | 16,431 | |||||
Government | 736 | 736 | |||||||
Total | $ | 17,167 | $ | 17,167 | |||||
Revenue percentage by customer/segment | Customers comprising 10% or more of the Company's total revenues are summarized as follows: | ||||||||
For the Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Hospitality segment: | |||||||||
McDonald’s Corporation | 16 | % | 14 | % | |||||
Yum! Brands, Inc. | 7 | % | 11 | % | |||||
Government segment: | |||||||||
U.S. Department of Defense | 40 | % | 42 | % | |||||
All Others | 37 | % | 33 | % | |||||
100 | % | 100 | % | ||||||
No other customer within All Others represented more than 10% of the Company’s total revenue for the three months ended March 31, 2015 or 2014. | |||||||||
Acquisition_Details
Acquisition (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2015 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Revenues | $56,903,000 | |
Net loss | -1,246,000 | |
Earnings per share [Abstract] | ||
Basic (in dollars per share) | ($0.08) | |
Diluted (in dollars per share) | ($0.08) | |
Brink Software Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Payments for the acquisition | 10,000,000 | |
Period of purchase price payable | 2 years | |
Contingent liability payable, Maximum | 7,000,000 | |
Percentage of equity interest (in hundredths) | 100.00% | |
Contingent purchase agreement escrow provision | 1,000,000 | |
Net cash paid for purchase of business | 5,000,000 | |
Estimated fair value liability for contingent consideration | 5,000,000 | |
Fair value of the long term portion of the note payable | 1,800,000 | |
Brink Software Inc. [Member] | Tranche One [Member] | ||
Business Acquisition [Line Items] | ||
Payments for the acquisition | 5,000,000 | |
Percentage of equity interest (in hundredths) | 51.00% | |
Brink Software Inc. [Member] | Tranche Two [Member] | ||
Business Acquisition [Line Items] | ||
Payments for the acquisition | 3,000,000 | |
Percentage of equity interest (in hundredths) | 49.00% | |
Brink Software Inc. [Member] | Tranche Three [Member] | ||
Business Acquisition [Line Items] | ||
Payments for the acquisition | $2,000,000 |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Accounts Receivable [Abstract] | ||
Accounts receivable - net | $32,383,000 | $31,445,000 |
Allowances for doubtful accounts | 711,000 | 582,000 |
Government segment [Member] | ||
Accounts Receivable [Abstract] | ||
Accounts receivable - net | 10,495,000 | 8,890,000 |
Government segment [Member] | Billed [Member] | ||
Accounts Receivable [Abstract] | ||
Accounts receivable - net | 11,265,000 | 9,340,000 |
Government segment [Member] | Advance billings [Member] | ||
Accounts Receivable [Abstract] | ||
Accounts receivable - net | -770,000 | -450,000 |
Hospitality segment [Member] | ||
Accounts Receivable [Abstract] | ||
Accounts receivable - net | $21,888,000 | $22,555,000 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Component of inventory use in hospitality product [Abstract] | ||
Finished goods | $14,378 | $13,609 |
Work in process | 317 | 457 |
Component parts | 4,334 | 3,748 |
Service parts | 8,198 | 8,108 |
Inventory net | $27,227 | $25,922 |
Identifiable_intangible_assets2
Identifiable intangible assets (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Software costs capitalized | $622,000 | $994,000 | |
Amortization of capitalized software costs | 500,000 | 464,000 | |
Amortization of identifiable intangible assets | 249,000 | 0 | |
Components of identifiable intangible assets [Abstract] | |||
Intangible assets - gross | 29,146,000 | 28,524,000 | |
Less accumulated amortization | -6,321,000 | -5,572,000 | |
Intangible assets - net | 22,825,000 | 22,952,000 | |
Future amortization of intangible assets assuming straight-line amortization of capitalized software costs [Abstract] | |||
2015 | 2,418,000 | ||
2016 | 3,580,000 | ||
2017 | 3,479,000 | ||
2018 | 3,377,000 | ||
2019 | 3,069,000 | ||
Thereafter | 4,702,000 | ||
Total | 20,625,000 | ||
Acquired and internally developed software costs [Member] | |||
Components of identifiable intangible assets [Abstract] | |||
Intangible assets - gross | 26,756,000 | 26,134,000 | |
Customer Relationships [Member] | |||
Components of identifiable intangible assets [Abstract] | |||
Intangible assets - gross | 160,000 | 160,000 | |
Non-competition Agreements [Member] | |||
Components of identifiable intangible assets [Abstract] | |||
Intangible assets - gross | 30,000 | 30,000 | |
Trademarks, Trade Names (non-amortizable) [Member] | |||
Components of identifiable intangible assets [Abstract] | |||
Intangible assets - gross | $2,200,000 | $2,200,000 | |
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Remaining estimated economic life of the product | 3 years | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Remaining estimated economic life of the product | 7 years |
Stock_Based_Compensation_Detai
Stock Based Compensation (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Stock Based Compensation [Abstract] | ||
Total stock-based compensation expense (benefit) | $245,000 | $523,000 |
Stock-based compensation expense, tax benefit | 28,000 | |
Unrecognized compensation expense | $1,300,000 |
Earnings_per_share_Details
Earnings per share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings per share [Abstract] | ||
Anti-dilutive stock options outstanding (in shares) | 0 | 0 |
Reconciliation of the weighted average shares outstanding for the basic and diluted EPS computations [Abstract] | ||
Net loss | ($385) | ($989) |
Basic: [Abstract] | ||
Shares outstanding at beginning of period (in shares) | 15,592,000 | 15,473,000 |
Weighted average shares issued during the period, net (in shares) | 4,000 | 26,000 |
Weighted average common shares, basic (in shares) | 15,596,000 | 15,499,000 |
Net loss per common share, basic | ($0.02) | ($0.06) |
Diluted: [Abstract] | ||
Weighted average common shares, basic (in shares) | 15,596,000 | 15,499,000 |
Dilutive impact of stock options and restricted stock awards (in shares) | 0 | 0 |
Weighted average common shares, diluted (in shares) | 15,596,000 | 15,499,000 |
Net loss per common share, diluted | ($0.02) | ($0.06) |
Segment_and_Related_Informatio2
Segment and Related Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
H | ||
Segment | ||
Segment and Related Information [Abstract] | ||
Number of reportable segments | 2 | |
Number of hours of telephone support for hospitality segment (in hours) | 24 | |
Information as to the Company's segments [Abstract] | ||
Revenues | $59,624 | $56,541 |
Operating income (loss) | -669 | -1,114 |
Other income, net | -229 | -78 |
Interest expense | -86 | -17 |
Loss before benefit from income taxes | -984 | -1,209 |
Depreciation, amortization and accretion | 1,143 | 830 |
Capital expenditures including software costs | 925 | 1,585 |
United States [Member] | Reportable Geographical Components [Member] | ||
Information as to the Company's segments [Abstract] | ||
Revenues | 53,253 | 49,555 |
Other Countries [Member] | Reportable Geographical Components [Member] | ||
Information as to the Company's segments [Abstract] | ||
Revenues | 6,371 | 6,986 |
Hospitality [Member] | Reportable Segments [Member] | ||
Information as to the Company's segments [Abstract] | ||
Revenues | 35,788 | 32,842 |
Operating income (loss) | -1,641 | -2,061 |
Depreciation, amortization and accretion | 1,062 | 745 |
Capital expenditures including software costs | 865 | 1,441 |
Government [Member] | Reportable Segments [Member] | ||
Information as to the Company's segments [Abstract] | ||
Revenues | 23,836 | 23,699 |
Operating income (loss) | 1,245 | 1,487 |
Depreciation, amortization and accretion | 12 | 13 |
Capital expenditures including software costs | 0 | 26 |
Other [Member] | ||
Information as to the Company's segments [Abstract] | ||
Operating income (loss) | -273 | -540 |
Depreciation, amortization and accretion | 69 | 72 |
Capital expenditures including software costs | $60 | $118 |
Segment_and_Related_Informatio3
Segment and Related Information, Reconciliation of Segment Assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Identifiable assets by geographic area [Abstract] | ||
Identifiable assets | $136,947 | $137,297 |
Goodwill by business segment [Abstract] | ||
Goodwill | 17,167 | 17,167 |
United States [Member] | Reportable Geographical Components [Member] | ||
Identifiable assets by geographic area [Abstract] | ||
Identifiable assets | 121,991 | 116,155 |
Other Countries [Member] | Reportable Geographical Components [Member] | ||
Identifiable assets by geographic area [Abstract] | ||
Identifiable assets | 14,956 | 21,142 |
Hospitality [Member] | Reportable Segments [Member] | ||
Identifiable assets by geographic area [Abstract] | ||
Identifiable assets | 102,514 | 104,027 |
Goodwill by business segment [Abstract] | ||
Goodwill | 16,431 | 16,431 |
Government [Member] | Reportable Segments [Member] | ||
Identifiable assets by geographic area [Abstract] | ||
Identifiable assets | 12,958 | 11,221 |
Goodwill by business segment [Abstract] | ||
Goodwill | 736 | 736 |
Other [Member] | ||
Identifiable assets by geographic area [Abstract] | ||
Identifiable assets | $21,475 | $22,049 |
Segment_and_Related_Informatio4
Segment and Related Information, Revenue By Major Customer (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenue, Major Customer [Line Items] | ||
Percentage of revenue generated by customer (in hundredths) | 100.00% | 100.00% |
Hospitality segment [Member] | McDonald's Corporation [Member] | Reportable Segments [Member] | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenue generated by customer (in hundredths) | 16.00% | 14.00% |
Hospitality segment [Member] | Yum! Brands, Inc. [Member] | Reportable Segments [Member] | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenue generated by customer (in hundredths) | 7.00% | 11.00% |
Government segment [Member] | U.S. Department of Defense [Member] | Reportable Segments [Member] | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenue generated by customer (in hundredths) | 40.00% | 42.00% |
All Others [Member] | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenue generated by customer (in hundredths) | 37.00% | 33.00% |