Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 11, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PAR TECHNOLOGY CORP | |
Entity Central Index Key | 708,821 | |
Current Fiscal Year End Date | --12-31 | |
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 | 15,907,281 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net revenues: | ||||
Product | $ 32,682 | $ 21,444 | $ 69,888 | $ 43,528 |
Service | 15,034 | 11,804 | 29,377 | 23,508 |
Contract | 14,545 | 19,410 | 28,861 | 40,927 |
Revenue, net | 62,261 | 52,658 | 128,126 | 107,963 |
Costs of sales: | ||||
Product | 24,389 | 16,137 | 51,961 | 32,579 |
Service | 9,766 | 8,219 | 19,651 | 16,818 |
Contract | 12,909 | 17,857 | 25,656 | 37,512 |
Cost of goods and services sold | 47,064 | 42,213 | 97,268 | 86,909 |
Gross margin | 15,197 | 10,445 | 30,858 | 21,054 |
Operating expenses: | ||||
Selling, general and administrative | 8,917 | 7,058 | 18,527 | 14,600 |
Research and development | 3,284 | 2,793 | 6,853 | 5,555 |
Amortization of identifiable intangible assets | 242 | 242 | 483 | 483 |
Operating expenses | 12,443 | 10,093 | 25,863 | 20,638 |
Operating income from continuing operations | 2,754 | 352 | 4,995 | 416 |
Other income (expense), net | 54 | (210) | (194) | (280) |
Interest (expense) income, net | (13) | 3 | (45) | 32 |
Income from continuing operations before provision for income taxes | 2,795 | 145 | 4,756 | 168 |
Provision for income taxes | (818) | (45) | (1,515) | (53) |
Net income from continuing operations | 1,977 | 100 | 3,241 | 115 |
Discontinued operation | ||||
(Loss on) income from discontinued operations (net of tax) | 0 | (26) | 183 | (26) |
Net income | $ 1,977 | $ 74 | $ 3,424 | $ 89 |
Basic Earnings per Share: | ||||
Income from continuing operations (in dollars per share) | $ 0.12 | $ 0.01 | $ 0.20 | $ 0.01 |
(Loss on) income from discontinued operations, net of tax | 0 | 0 | 0.01 | 0 |
Net income (in dollars per share) | 0.12 | 0.01 | 0.21 | 0.01 |
Diluted Earnings per Share: | ||||
Income from continuing operations (in dollars per share) | 0.12 | 0.01 | 0.20 | 0.01 |
(Loss on) income from discontinued operations, net of tax | 0 | 0 | 0.01 | 0 |
Net income (in dollars per share) | $ 0.12 | $ 0.01 | $ 0.21 | $ 0.01 |
Weighted average shares outstanding | ||||
Basic (in shares) | 15,919 | 15,615 | 15,893 | 15,651 |
Diluted (in shares) | 16,179 | 15,670 | 16,146 | 15,717 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) [Abstract] | ||||
Net income | $ 1,977 | $ 74 | $ 3,424 | $ 89 |
Other comprehensive loss, net of applicable tax: | ||||
Foreign currency translation adjustments | (197) | (28) | (156) | (150) |
Comprehensive income (loss) | $ 1,780 | $ 46 | $ 3,268 | $ (61) |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 3,282 | $ 9,055 |
Accounts receivable - net | 33,807 | 30,705 |
Inventories-net | 28,845 | 26,237 |
Note receivable | 0 | 3,510 |
Income taxes receivable | 0 | 261 |
Other current assets | 4,246 | 4,027 |
Assets of discontinued operations | 0 | 462 |
Total current assets | 70,180 | 74,257 |
Property, plant and equipment - net | 9,854 | 7,035 |
Deferred income taxes | 16,403 | 17,417 |
Goodwill | 11,051 | 11,051 |
Intangible assets - net | 11,886 | 10,966 |
Other assets | 3,833 | 3,785 |
Total Assets | 123,207 | 124,511 |
Current liabilities: | ||
Current portion of long-term debt | 191 | 187 |
Borrowings on line of credit | 1,000 | 0 |
Accounts payable | 14,163 | 16,687 |
Accrued salaries and benefits | 6,411 | 5,470 |
Accrued expenses | 4,752 | 4,682 |
Customer deposits and deferred service revenue | 14,513 | 19,814 |
Total current liabilities | 41,030 | 46,840 |
Long-term debt | 283 | 379 |
Other long-term liabilities | 7,764 | 7,712 |
Total liabilities | 49,077 | 54,931 |
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; 17,615,390 and 17,479,454 shares issued, 15,907,281 and 15,771,345 outstanding at June 30, 2017 and December 31, 2016, respectively | 352 | 350 |
Capital in excess of par value | 47,354 | 46,203 |
Retained earnings | 35,598 | 32,357 |
Accumulated other comprehensive loss | (3,338) | (3,494) |
Treasury stock, at cost, 1,708,109 shares | (5,836) | (5,836) |
Total shareholders' equity | 74,130 | 69,580 |
Total Liabilities and Shareholders' Equity | $ 123,207 | $ 124,511 |
CONSOLIDATED BALANCE SHEETS (U5
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
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) | 17,615,390 | 17,479,454 |
Common stock, outstanding (in shares) | 15,907,281 | 15,771,345 |
Treasury stock, at cost (in shares) | 1,708,109 | 1,708,109 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 3,424 | $ 89 |
(Income) loss from discontinued operations | (183) | 26 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation, amortization and accretion | 1,852 | 1,606 |
Provision for bad debts | 315 | 397 |
Provision for obsolete inventory | 1,528 | 970 |
Equity based compensation | 238 | 207 |
Deferred income tax | 1,014 | 52 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | (3,417) | (329) |
Inventories | (4,136) | (4,863) |
Income tax receivable/(payable) | 261 | (490) |
Other current assets | (219) | (751) |
Other assets | (48) | (105) |
Accounts payable | (2,524) | 4,802 |
Accrued salaries and benefits | 941 | 137 |
Accrued expenses | 70 | (1,488) |
Customer deposits and deferred service revenue | (5,301) | 913 |
Other long-term liabilities | 52 | (124) |
Deferred tax equity based compensation | 0 | (9) |
Net cash (used in) provided by operating activities-continuing operations | (6,133) | 1,040 |
Net cash provided by (used in) operating activities-discontinued operations | 462 | (299) |
Net cash (used in) provided by operating activities | (5,671) | 741 |
Cash flows from investing activities: | ||
Capital expenditures | (3,497) | (984) |
Capitalization of software costs | (2,148) | (1,220) |
Acquisition related consideration paid | 0 | (977) |
Net cash used in investing activities | (5,645) | (3,181) |
Cash flows from financing activities: | ||
Payments of long-term debt | (92) | (89) |
Payments of other borrowings | (14,150) | (107,907) |
Proceeds from other borrowings | 15,150 | 107,907 |
Proceeds from stock awards | 915 | 29 |
Proceeds from note receivable | 3,794 | 0 |
Net cash provided by (used in) financing activities | 5,617 | (60) |
Effect of exchange rate changes on cash and cash equivalents | (74) | (150) |
Net decrease in cash and cash equivalents | (5,773) | (2,650) |
Cash and cash equivalents at beginning of period | 9,055 | 8,024 |
Cash and equivalents at end of period | 3,282 | 5,374 |
Less cash and cash equivalents of discontinued operations at end of period | 0 | 0 |
Cash and cash equivalents of continuing operations at end of period | 3,282 | 5,374 |
Cash paid during the period for: | ||
Interest | 60 | 21 |
Income taxes, net of refunds | $ 56 | $ 551 |
Basis of presentation
Basis of presentation | 6 Months Ended |
Jun. 30, 2017 | |
Basis of presentation [Abstract] | |
Basis of presentation | Note 1 — Basis of presentation The accompanying unaudited interim consolidated financial statements of PAR Technology Corporation (the “Company” or “PAR”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and the instructions to Form 10-Q and Article 8 of Regulation S-X pertaining to interim financial statements. Accordingly, they do not include all information and footnotes required by GAAP for annual financial statements. In the opinion of the management, such unaudited interim consolidated financial statements include all normal and recurring adjustments necessary for a fair presentation of the results for the interim periods included in this Quarterly Report on Form 10-Q (“Quarterly Report”). Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results of operations that may be expected for any future period. Certain amounts for prior periods have been reclassified to conform to the current period classification. The preparation of unaudited interim consolidated financial statements requires management of the Company to make a number of estimates, judgements and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited interim consolidated financial statements and the reported amount of revenues and expenses during the period. Primary areas where financial information is subject to the use of estimates, assumptions and the application of judgment include revenue recognition, accounts receivable, inventories, accounting for business combinations, contingent consideration, goodwill and intangible assets, and taxes. Actual results could differ from those estimates. The unaudited interim consolidated financial statements and related notes should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission (“SEC”) on April 17, 2017. |
Divestiture and Discontinued Op
Divestiture and Discontinued Operations | 6 Months Ended |
Jun. 30, 2017 | |
Divestiture and Discontinued Operations [Abstract] | |
Divestiture and Discontinued Operations | Note 2 — Divestiture and Discontinued Operations On November 4, 2015, the Company sold substantially all of the assets of its hotel/spa technology business operated by PAR Springer-Miller Systems, Inc., Springer-Miller International, LLC, and Springer-Miller Canada, ULC (collectively, “PSMS”) pursuant to an asset purchase agreement (the “PSMS APA”) dated on even date therewith among PSMS and Gary Jonas Computing Ltd., SMS Software Holdings LLC, and Jonas Computing (UK) Ltd. (the “Purchasers”). Accordingly, the results of operations of PSMS have been classified as discontinued operations in the Consolidated Statements of Operations (unaudited) and Consolidated Statements of Cash Flows (unaudited) in accordance with Accounting Standards Codification (“ASC”) ASC 205-20 (Presentation of Financial Statements – Discontinued Operations). Additionally, the assets and associated liabilities have been classified as discontinued operations in the Consolidated Balance Sheets (unaudited). Total consideration to be received from the sale is $16.6 million in cash (the “Base Purchase Price”), with $12.1 million paid at the closing of the asset sale and up to $4.5 million payable 18 months following the closing (the “Holdback Amount”). On May 5, 2017, the Company received payment of $4.2 million of the Holdback Amount, the unpaid balance is reflective of a negative purchase price adjustment based on the net tangible asset calculation provided under the PSMS APA. In addition to the Base Purchase Price, contingent consideration of up to $1.5 million (the “Earn-Out”) could be received by the Company based on the achievement of certain agreed-upon revenue and earnings targets for calendar years 2016, 2017 and 2018 (up to $500,000 per calendar year), subject to setoff for PSMS and ParTech, Inc. indemnification obligations thereunder and unresolved claims. The Company received no Earn-Out payment for calendar year 2016 and, as of June 30, 2017, the Company did not record any amount associated with calendar years 2017 and 2018, as the Company does not believe achievement of the related revenue and earnings targets is probable. Summarized financial position for the Company’s discontinued operations is as follows (in thousands): (in thousands) June 30, December, 31 Assets Other current assets $ - $ 462 Assets of discontinued operations $ - $ 462 Summarized financial operating results for the Company’s discontinued operations is as follows (in thousands): For the three months ended June 30, For the six months ended June 30, 2017 2016 2017 2016 Operations Total revenues $ - $ - $ - $ - (Loss) income from discontinued operations before income taxes $ - $ (38 ) $ 284 $ (38 ) Benefit from (provision for) income taxes - 12 (101 ) 12 (Loss) income from discontinued operations, net of taxes $ - $ (26 ) $ 183 $ (26 ) |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2017 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | Note 3 — Accounts Receivable The Company’s net accounts receivable consists of: (in thousands) June 30, 2017 December 31, 2016 Government segment: Billed $ 7,778 $ 6,779 Advanced billings (1,662 ) (1,599 ) 6,116 5,180 Restaurant/Retail segment: Accounts receivable - net 27,691 25,525 $ 33,807 $ 30,705 At June 30, 2017 and December 31, 2016, the Company had recorded allowances for doubtful accounts of $1.1 million and $0.9 million, respectively, against Restaurant/Retail segment accounts receivable. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2017 | |
Inventories [Abstract] | |
Inventories | Note 4 — Inventories Inventories are primarily used in the manufacture, maintenance and service of Restaurant/Retail segment products. The components of inventories (net) consist of the following: (in thousands) June 30, 2017 December 31, 2016 Finished goods $ 10,912 $ 9,423 Work in process 701 443 Component parts 10,623 10,386 Service parts 6,609 5,985 $ 28,845 $ 26,237 At June 30, 2017 and December 31, 2016, the Company had recorded inventory reserves of $7.6 million and $9.2 million, respectively, against Restaurant/Retail inventories, which relates primarily to service parts. |
Identifiable Intangible Assets
Identifiable Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2017 | |
Identifiable Intangible Assets and Goodwill [Abstract] | |
Identifiable Intangible Assets and Goodwill | Note 5 — Identifiable Intangible Assets and Goodwill The Company’s identifiable intangible assets represent intangible assets in connection with the Brink Software Inc. acquisition in 2014 and internally developed software costs. The Company capitalizes certain costs related to the development of computer software used in its Restaurant/Retail segment. Software development costs incurred prior to establishing technological feasibility are charged to operations and included in research and development costs. The technological feasibility of a computer software product is established when the Company has completed all planning, designing, coding, and testing activities that are necessary to establish that the product meets its design specifications including functionality, features, and technical performance requirements. Software development costs incurred after establishing feasibility for software sold as a perpetual license, as defined within ASC 985-20 (Software – Costs of Software to be sold, Leased, or Marketed) and for software as a service (“SAAS”), as defined within ASC-350-40 (Intangibles – Goodwill and Other – Internal – Use Software) are capitalized and amortized on a product-by-product basis when the product is available for general release to customers. Software costs capitalized within continuing operations during the three and six months ended June 30, 2017 were $1.1 million and $2.1 million, respectively. Software costs capitalized within continuing operations during the three and six months ended June 30, 2016 were $0.5 million and $1.2 million, respectively. Annual amortization, charged to cost of sales when a 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 the product bear to the total of current and anticipated future gross revenues for the product. Amortization of capitalized software costs from continuing operations for the three and six months ended June 30, 2017 were $0.4 million and $0.7 million, respectively. Amortization of capitalized software costs from continuing operations for the three and six months ended June 30, 2016 were $0.3 million and $0.5 million, respectively. Amortization of intangible assets acquired from the Brink Software Inc. acquisition amounted to $0.2 million and $0.5 million for the three and six months ended June 30, 2017, respectively. Amortization of intangible assets acquired in the Brink Software Inc. acquisition for the three and six months ended June 30, 2016 were $0.2 million and $0.5 million, respectively. The components of identifiable intangible assets, excluding discontinued operations, are: (in thousands) June 30, 2017 December 31, 2016 Estimated Useful Life Acquired and internally developed software costs $ 18,032 $ 15,884 3 - 7 years Customer relationships 160 160 7 years Non-competition agreements 30 30 1 year 18,222 16,074 Less accumulated amortization (6,736 ) (5,508 ) $ 11,486 $ 10,566 Trademarks, trade names (non-amortizable) 400 400 N/A $ 11,886 $ 10,966 The expected future amortization of our intangible assets, assuming straight-line amortization of capitalized software costs and acquisition related intangibles, is as follows (in thousands): 2017 $ 1,168 2018 2,196 2019 1,722 2020 1,396 2021 1,028 Thereafter 3,976 Total $ 11,486 The Company tests goodwill for impairment on an annual basis, or more often if events or circumstances indicate that there may be impairment. The Company operates in two reportable business segments, Restaurant/Retail and Government. Goodwill impairment testing is performed at the reporting unit level. Goodwill is assigned to a specific reporting unit at the date the goodwill is initially recorded. Once goodwill has been assigned to a specific reporting unit, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. The amount of goodwill carried by the Restaurant/Retail and Government reporting unit is $10.3 million and $0.7 million, respectively, at June 30, 2017 and December 31, 2016. |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Stock Based Compensation [Abstract] | |
Stock Based Compensation | Note 6 — Stock Based Compensation The Company applies the fair value recognition provisions of ASC Topic 718. The Company recorded stock based compensation of $62,000 and $238,000 for the three and six months ended June 30, 2017, respectively. The Company recorded stock based compensation of $141,000 and $207,000 for the three and six months ended June 30, 2016, respectively. The amount recorded for the three and six months ended June 30, 2017 was recorded net of benefits of $10,000 and $10,000, respectively, as a result of forfeitures of unvested stock awards prior to the completion of the requisite service period and/or performance criteria.. The amount recorded for the three and six months ended June 30, 2016 was recorded net of benefits of $22,000 and $48,000, respectively, as a result of forfeitures of unvested stock awards prior to the completion of the requisite service period and /or performance criteria. At June 30, 2017, the aggregate unrecognized compensation expense related to non-vested equity awards was $0.4 million (net of estimated forfeitures), which is expected to be recognized as compensation expense in fiscal years 2017 through 2019. For the three and six month periods ended June 30, 2017, the Company recognized compensation expense related to performance awards based on its estimate of the probability of achievement in accordance with ASC Topic 718. |
Net Income per share
Net Income per share | 6 Months Ended |
Jun. 30, 2017 | |
Net Income per share [Abstract] | |
Net Income per share | Note 7 — Net Income 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 shares of common stock 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 and six months ended June 30, 2017 there were no anti-dilutive stock options outstanding. For the three and six months ended June 30, 2016 there were 38,000 and 26,000 anti-dilutive stock options outstanding. The following is a reconciliation of the weighted average of shares of common stock outstanding for the basic and diluted EPS computations (in thousands, except share and per share data): For the three months ended June 30, 2017 2016 Net income from continuing operations $ 1,977 $ 100 Basic: Shares outstanding at beginning of period 15,811 15,607 Weighted average shares issued during the period, net 108 8 Weighted average common shares, basic 15,919 15,615 Net income from continuing operations per common share, basic $ 0.12 $ 0.01 Diluted: Weighted average common shares, basic 15,919 15,615 Dilutive impact of stock options and restricted stock awards 260 55 Weighted average common shares, diluted 16,179 15,670 Net income from continuing operations per common share, diluted $ 0.12 $ 0.01 For the six months ended June 30, 2017 2016 Net income from continuing operations $ 3,241 $ 115 Basic: Shares outstanding at beginning of period 15,771 15,645 Weighted average shares issued during the period, net 122 6 Weighted average common shares, basic 15,893 15,651 Net income from continuing operations per common share, basic $ 0.20 $ 0.01 Diluted: Weighted average common shares, basic 15,893 15,651 Dilutive impact of stock options and restricted stock awards 253 66 Weighted average common shares, diluted 16,146 15,717 Net income from continuing operations per common share, diluted $ 0.20 $ 0.01 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Contingencies [Abstract] | |
Contingencies | Note 8 — Contingencies The Company is subject to legal proceedings, which arise in the ordinary course of business. Additionally, U.S. Government contract costs are subject to periodic audit and adjustment. The Company is investigating whether certain import/export and sales documentation activities at the Company’s China and Singapore offices were improper and in possible violation of the U.S. Foreign Corrupt Practices Act (“FCPA”) and other applicable laws and certain Company policies. The Company voluntarily notified, and is fully cooperating with, the SEC and the U.S. Department of Justice (“DOJ”) of these activities. On May 1, 2017, the Company received a subpoena from the SEC for documents relating to the Company’s investigation. The SEC’s investigation is a non-public, fact-finding inquiry and it is not clear what action, if any, the SEC intends to take with respect to the information it gathers. If the SEC, DOJ, or other governmental agencies (including foreign governmental agencies) determine that violations of certain laws or regulations occurred, the Company could be exposed to a broad range of civil and criminal sanctions. The potential liability arising out of the China and Singapore matters or the SEC investigation cannot currently be reasonably estimated; however, the imposition of sanctions, fines or remedial measures could have a material adverse effect on the Company’s business, prospects, reputation, financial condition, liquidity, results of operations or cash flows. |
Segment and Related Information
Segment and Related Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment and Related Information [Abstract] | |
Segment and Related Information | Note 9 — Segment and Related Information The Company is organized in two reportable business segments, Restaurant/Retail and Government. The Company’s chief operating decision maker is the Company’s Chief Executive Officer. Management views the Restaurant/Retail and Government segments separately in operating its business, as the products and services are different for each segment. The Restaurant/Retail segment offers integrated solutions to restaurants and retail, including in the fast casual, quick serve and table service restaurant categories, and speciality retail outlets. These offerings include industry leading hardware and cloud and on-premise software applications utilized at the point-of-sale, back of store and corporate office and includes the Brink cloud-based point-of-sale software. This segment also offers customer support including field service, installation, and twenty-four-hour telephone support and depot repair. With our SureCheck solution, we continue to expand our business into big box retailers, grocery stores and contract food management organizations. 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. Amounts below exclude discontinued operations. (in thousands) For the three months ended June 30, (in thousands) For the six months ended June 30, 2017 2016 2017 2016 Revenues: Restaurant/Retail $ 47,716 $ 33,248 $ 99,265 $ 67,036 Government 14,545 19,410 28,861 40,927 Total $ 62,261 $ 52,658 $ 128,126 $ 107,963 Operating income: Restaurant/Retail $ 1,795 $ (800 ) $ 4,161 $ (1,300 ) Government 1,587 1,496 3,098 3,303 Other (628 ) (344 ) (2,264 ) (1,587 ) 2,754 352 4,995 416 Other income (loss), net 54 (210 ) (194 ) (280 ) Interest (expense) income, net (13 ) 3 (45 ) 32 Income before provision for income taxes $ 2,795 $ 145 $ 4,756 $ 168 Depreciation, amortization and accretion: Restaurant/Retail $ 821 $ 756 $ 1,595 $ 1,488 Government 4 10 11 19 Other 129 63 246 99 Total $ 954 $ 829 $ 1,852 $ 1,606 Capital expenditures including software costs: Restaurant/Retail $ 1,256 $ 702 $ 2,331 $ 1,650 Government 7 32 7 39 Other 1,033 489 3,307 515 Total $ 2,296 $ 1,223 $ 5,645 $ 2,204 Revenues by country: United States $ 57,621 $ 47,571 $ 119,188 $ 97,790 Other Countries 4,640 5,087 8,938 10,173 Total $ 62,261 $ 52,658 $ 128,126 $ 107,963 The following table represents identifiable assets by business segment. Amounts below exclude discontinued operations. (in thousands) June 30, 2017 December 31, 2016 Restaurant/Retail $ 87,553 $ 87,672 Government 7,613 6,504 Other 28,041 29,873 Total $ 123,207 $ 124,049 The following table represents assets by country based on the location of the assets. Amounts below exclude discontinued operations. (in thousands) June 30, 2017 December 31, 2016 United States $ 107,293 $ 110,369 Other Countries 15,914 13,680 Total $ 123,207 $ 124,049 The following table represents Goodwill by reporting unit. Amounts below exclude discontinued operations. (in thousands) June 30, 2017 December 31, 2016 Restaurant/Retail $ 10,315 $ 10,315 Government 736 736 Total $ 11,051 $ 11,051 Customers comprising 10% or more of the Company’s total revenues, excluding discontinued operations, are summarized as follows: For the three months ended June 30, For the six months ended June 30 , 2017 2016 2017 2016 Hospitality segment McDonald’s Corporation 36 % 24 % 40 % 21 % Yum! Brands, Inc. 14 % 10 % 13 % 11 % Government segment U.S. Department of Defense 23 % 37 % 23 % 38 % All Others 27 % 29 % 24 % 30 % 100 % 100 % 100 % 100 % No other customer within All Others represented more than 10% of the Company’s total revenue for the three and six months ended June 30, 2017 or 2016. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | Note 10 — Fair Value of Financial Instruments The Company’s financial instruments have been recorded at fair value using available market information and valuation techniques. The fair value hierarchy is based upon three levels of input, which are: Level 1 − quoted prices in active markets for identical assets or liabilities (observable) Level 2 − inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in inactive markets, or other inputs that are observable market data for essentially the full term of the asset or liability (observable) Level 3 − unobservable inputs that are supported by little or no market activity, but are significant to determining the fair value of the asset or liability (unobservable) The Company’s financial instruments consist primarily of cash and cash equivalents, trade receivables, trade payables, debt instruments and deferred compensation assets and liabilities. For cash and cash equivalents, trade receivables and trade payables, the carrying amounts of these financial instruments as of June 30, 2017 and December 31, 2016 were considered representative of their fair values. The estimated fair value of the Company’s long-term debt and line of credit at June 30, 2017 and December 31, 2016 was based on variable and fixed interest rates at June 30, 2017 and December 31, 2016, respectively, for new issues with similar remaining maturities and approximates the respective carrying values at June 30, 2017 and December 31, 2016. The deferred compensation assets and liabilities primarily relate to the Company’s deferred compensation plan, which allows for pre-tax salary deferrals for certain key employees. Changes in the fair value of the deferred compensation liabilities are derived using quoted prices in active markets of the asset selections made by the participants. The deferred compensation liabilities are classified within Level 2, as defined under U.S. GAAP, because their inputs are derived principally from observable market data by correlation to the hypothetical investments. The Company holds insurance investments to partially offset the Company’s liabilities under its deferred compensation plan, which are recorded at fair value each period using the cash surrender value of the insurance investments. The Company has obligations, to be paid in cash, to the former owners of Brink Software Inc., based on the achievement of certain conditions defined in the September 18, 2014 stock purchase agreement governing the Brink Software, Inc. acquisition. The fair value of this contingent consideration payable was estimated using a discounted cash flow method, with significant inputs that are not observable in the market and thus represents a Level 3 fair value measurement as defined in ASC 820, Fair Value Measurements and Disclosures. The significant inputs in the Level 3 measurement not supported by market activity included the Company’s probability assessments of expected future cash flows related to the Company’s acquisition of Brink Software Inc. during the contingent consideration period, appropriately discounted considering the uncertainties associated with the obligation, and calculated in accordance with the terms of the definitive agreement. Any change in the fair value adjustment is recorded in the earnings of that period. Changes in the fair value of the contingent consideration obligations may result from changes in probability assumptions with respect to the likelihood of achieving the various contingent payment obligations. Significant increases or decreases in the inputs noted above in isolation would result in a significantly lower or higher fair value measurement. The following table presents a summary of changes in fair value of the Company’s Level 3 assets and liabilities that are measured at fair value on a recurring basis (in thousands), and are recorded as a component of other long-term liabilities on the consolidated balance sheet: Level 3 Inputs Liabilities Balance at December 31, 2016 $ 4,000 New level 3 liability - Total gains (losses) reported in earnings - Transfers into or out of Level 3 - Balance at June 30, 2017 $ 4,000 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 11 — Related Party Transactions The Company leases its corporate wellness facility to related parties at a current rate of $9,775 per month. The Company receives a complimentary membership to this facility which is provided to all employees. The Company received rental income amounting to $29,325 and $58,650 for each of the three and six months ended June 30, 2017 and June 30, 2016. In October 2016, the Company entered into a statement of work (“SOW”) with Xpanxion LLC for software development services. For the six months ended June 30, 2017 we incurred approximately $742,000 of expenses to Xpanxion, LLC under the SOW. The Company did not incur any expenses to Xpanxion during the six month period ended June 30, 2016. Until his retirement on June 30, 2017, Paul Eurek, a director of the Company, was President of Xpanxion LLC. |
Divestiture and Discontinued 18
Divestiture and Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Divestiture and Discontinued Operations [Abstract] | |
Summarized financial information of discontinued operations | Summarized financial position for the Company’s discontinued operations is as follows (in thousands): (in thousands) June 30, December, 31 Assets Other current assets $ - $ 462 Assets of discontinued operations $ - $ 462 Summarized financial operating results for the Company’s discontinued operations is as follows (in thousands): For the three months ended June 30, For the six months ended June 30, 2017 2016 2017 2016 Operations Total revenues $ - $ - $ - $ - (Loss) income from discontinued operations before income taxes $ - $ (38 ) $ 284 $ (38 ) Benefit from (provision for) income taxes - 12 (101 ) 12 (Loss) income from discontinued operations, net of taxes $ - $ (26 ) $ 183 $ (26 ) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounts Receivable [Abstract] | |
Accounts Receivable, net | The Company’s net accounts receivable consists of: (in thousands) June 30, 2017 December 31, 2016 Government segment: Billed $ 7,778 $ 6,779 Advanced billings (1,662 ) (1,599 ) 6,116 5,180 Restaurant/Retail segment: Accounts receivable - net 27,691 25,525 $ 33,807 $ 30,705 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventories [Abstract] | |
Components of inventory | The components of inventories (net) consist of the following: (in thousands) June 30, 2017 December 31, 2016 Finished goods $ 10,912 $ 9,423 Work in process 701 443 Component parts 10,623 10,386 Service parts 6,609 5,985 $ 28,845 $ 26,237 |
Identifiable Intangible Asset21
Identifiable Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Identifiable Intangible Assets and Goodwill [Abstract] | |
Components of identifiable intangible assets | The components of identifiable intangible assets, excluding discontinued operations, are: (in thousands) June 30, 2017 December 31, 2016 Estimated Useful Life Acquired and internally developed software costs $ 18,032 $ 15,884 3 - 7 years Customer relationships 160 160 7 years Non-competition agreements 30 30 1 year 18,222 16,074 Less accumulated amortization (6,736 ) (5,508 ) $ 11,486 $ 10,566 Trademarks, trade names (non-amortizable) 400 400 N/A $ 11,886 $ 10,966 |
Future amortization of intangible assets | The expected future amortization of our intangible assets, assuming straight-line amortization of capitalized software costs and acquisition related intangibles, is as follows (in thousands): 2017 $ 1,168 2018 2,196 2019 1,722 2020 1,396 2021 1,028 Thereafter 3,976 Total $ 11,486 |
Net Income per share (Tables)
Net Income per share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Net Income 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 of shares of common stock outstanding for the basic and diluted EPS computations (in thousands, except share and per share data): For the three months ended June 30, 2017 2016 Net income from continuing operations $ 1,977 $ 100 Basic: Shares outstanding at beginning of period 15,811 15,607 Weighted average shares issued during the period, net 108 8 Weighted average common shares, basic 15,919 15,615 Net income from continuing operations per common share, basic $ 0.12 $ 0.01 Diluted: Weighted average common shares, basic 15,919 15,615 Dilutive impact of stock options and restricted stock awards 260 55 Weighted average common shares, diluted 16,179 15,670 Net income from continuing operations per common share, diluted $ 0.12 $ 0.01 For the six months ended June 30, 2017 2016 Net income from continuing operations $ 3,241 $ 115 Basic: Shares outstanding at beginning of period 15,771 15,645 Weighted average shares issued during the period, net 122 6 Weighted average common shares, basic 15,893 15,651 Net income from continuing operations per common share, basic $ 0.20 $ 0.01 Diluted: Weighted average common shares, basic 15,893 15,651 Dilutive impact of stock options and restricted stock awards 253 66 Weighted average common shares, diluted 16,146 15,717 Net income from continuing operations per common share, diluted $ 0.20 $ 0.01 |
Segment and Related Informati23
Segment and Related Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment and Related Information [Abstract] | |
Information of the Company's segments | Information as to the Company’s segments is set forth below. Amounts below exclude discontinued operations. (in thousands) For the three months ended June 30, (in thousands) For the six months ended June 30, 2017 2016 2017 2016 Revenues: Restaurant/Retail $ 47,716 $ 33,248 $ 99,265 $ 67,036 Government 14,545 19,410 28,861 40,927 Total $ 62,261 $ 52,658 $ 128,126 $ 107,963 Operating income: Restaurant/Retail $ 1,795 $ (800 ) $ 4,161 $ (1,300 ) Government 1,587 1,496 3,098 3,303 Other (628 ) (344 ) (2,264 ) (1,587 ) 2,754 352 4,995 416 Other income (loss), net 54 (210 ) (194 ) (280 ) Interest (expense) income, net (13 ) 3 (45 ) 32 Income before provision for income taxes $ 2,795 $ 145 $ 4,756 $ 168 Depreciation, amortization and accretion: Restaurant/Retail $ 821 $ 756 $ 1,595 $ 1,488 Government 4 10 11 19 Other 129 63 246 99 Total $ 954 $ 829 $ 1,852 $ 1,606 Capital expenditures including software costs: Restaurant/Retail $ 1,256 $ 702 $ 2,331 $ 1,650 Government 7 32 7 39 Other 1,033 489 3,307 515 Total $ 2,296 $ 1,223 $ 5,645 $ 2,204 Revenues by country: United States $ 57,621 $ 47,571 $ 119,188 $ 97,790 Other Countries 4,640 5,087 8,938 10,173 Total $ 62,261 $ 52,658 $ 128,126 $ 107,963 |
Identifiable assets by business segment | The following table represents identifiable assets by business segment. Amounts below exclude discontinued operations. (in thousands) June 30, 2017 December 31, 2016 Restaurant/Retail $ 87,553 $ 87,672 Government 7,613 6,504 Other 28,041 29,873 Total $ 123,207 $ 124,049 |
Identifiable assets by geographic area | The following table represents assets by country based on the location of the assets. Amounts below exclude discontinued operations. (in thousands) June 30, 2017 December 31, 2016 United States $ 107,293 $ 110,369 Other Countries 15,914 13,680 Total $ 123,207 $ 124,049 |
Goodwill by reporting unit | The following table represents Goodwill by reporting unit. Amounts below exclude discontinued operations. (in thousands) June 30, 2017 December 31, 2016 Restaurant/Retail $ 10,315 $ 10,315 Government 736 736 Total $ 11,051 $ 11,051 |
Revenue percentage by customer/segment | Customers comprising 10% or more of the Company’s total revenues, excluding discontinued operations, are summarized as follows: For the three months ended June 30, For the six months ended June 30 , 2017 2016 2017 2016 Hospitality segment McDonald’s Corporation 36 % 24 % 40 % 21 % Yum! Brands, Inc. 14 % 10 % 13 % 11 % Government segment U.S. Department of Defense 23 % 37 % 23 % 38 % All Others 27 % 29 % 24 % 30 % 100 % 100 % 100 % 100 % |
Fair Value of Financial Instr24
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Summary of changes in fair value of the Company's Level 3 assets and liabilities that are measured at fair value on a recurring basis | The following table presents a summary of changes in fair value of the Company’s Level 3 assets and liabilities that are measured at fair value on a recurring basis (in thousands), and are recorded as a component of other long-term liabilities on the consolidated balance sheet: Level 3 Inputs Liabilities Balance at December 31, 2016 $ 4,000 New level 3 liability - Total gains (losses) reported in earnings - Transfers into or out of Level 3 - Balance at June 30, 2017 $ 4,000 |
Divestiture and Discontinued 25
Divestiture and Discontinued Operations (Details) - USD ($) $ in Thousands | May 05, 2017 | Nov. 04, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Operations [Abstract] | |||||||
(Loss) income from discontinued operations, net of taxes | $ 0 | $ (26) | $ 183 | $ (26) | |||
PAR Springer Miller Systems Inc [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Total consideration | $ 16,600 | ||||||
Consideration received | $ 4,200 | 12,100 | |||||
Consideration payable period from closing date | 18 months | ||||||
Consideration could be received upon achievement of targets | 1,500 | ||||||
Consideration could be received upon achievement of targets per year | $ 500 | ||||||
Assets [Abstract] | |||||||
Other current assets | 0 | 0 | $ 462 | ||||
Assets of discontinued operations | 0 | 0 | $ 462 | ||||
Operations [Abstract] | |||||||
Total revenues | 0 | 0 | 0 | 0 | |||
(Loss) income from discontinued operations before income taxes | 0 | (38) | 284 | (38) | |||
Benefit from (provision for) income taxes | 0 | 12 | 101 | 12 | |||
(Loss) income from discontinued operations, net of taxes | $ 0 | $ (26) | $ 183 | $ (26) | |||
PAR Springer Miller Systems Inc [Member] | Maximum [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Consideration receivable | $ 4,500 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts Receivable [Abstract] | ||
Accounts receivable - net | $ 33,807 | $ 30,705 |
Government Segment [Member] | ||
Accounts Receivable [Abstract] | ||
Accounts receivable - net | 6,116 | 5,180 |
Government Segment [Member] | Billed [Member] | ||
Accounts Receivable [Abstract] | ||
Accounts receivable - net | 7,778 | 6,779 |
Government Segment [Member] | Advanced Billings [Member] | ||
Accounts Receivable [Abstract] | ||
Accounts receivable - net | (1,662) | (1,599) |
Restaurant/Retail Segment [Member] | ||
Accounts Receivable [Abstract] | ||
Accounts receivable - net | 27,691 | 25,525 |
Allowances for doubtful accounts | $ 1,100 | $ 900 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Component of inventory use in Restaurant/Retail products [Abstract] | ||
Finished goods | $ 10,912 | $ 9,423 |
Work in process | 701 | 443 |
Component parts | 10,623 | 10,386 |
Service parts | 6,609 | 5,985 |
Inventory net | 28,845 | 26,237 |
Inventory reserves | $ 7,600 | $ 9,200 |
Identifiable Intangible Asset28
Identifiable Intangible Assets and Goodwill (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)SegmentUnit | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||||
Software costs capitalized | $ 1,100 | $ 500 | $ 2,100 | $ 1,200 | |
Amortization of capitalized software costs | 400 | 300 | 700 | 500 | |
Amortization of identifiable intangible assets | 242 | $ 242 | $ 483 | $ 483 | |
Number of operating segments | Segment | 2 | ||||
Number of reporting units | Unit | 2 | ||||
Goodwill | 11,051 | $ 11,051 | $ 11,051 | ||
Components of identifiable intangible assets [Abstract] | |||||
Intangible assets - gross | 18,222 | 18,222 | 16,074 | ||
Less accumulated amortization | (6,736) | (6,736) | (5,508) | ||
Total | 11,486 | 11,486 | 10,566 | ||
Total intangible assets, net | 11,886 | 11,886 | 10,966 | ||
Future amortization of intangible assets assuming straight-line amortization of capitalized software costs [Abstract] | |||||
2,017 | 1,168 | 1,168 | |||
2,018 | 2,196 | 2,196 | |||
2,019 | 1,722 | 1,722 | |||
2,020 | 1,396 | 1,396 | |||
2,021 | 1,028 | 1,028 | |||
Thereafter | 3,976 | 3,976 | |||
Total | 11,486 | $ 11,486 | 10,566 | ||
Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated Useful Life | 3 years | ||||
Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated Useful Life | 7 years | ||||
Acquired and Internally Developed Software Costs [Member] | |||||
Components of identifiable intangible assets [Abstract] | |||||
Intangible assets - gross | 18,032 | $ 18,032 | 15,884 | ||
Acquired and Internally Developed Software Costs [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated Useful Life | 3 years | ||||
Acquired and Internally Developed Software Costs [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated Useful Life | 7 years | ||||
Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated Useful Life | 7 years | ||||
Components of identifiable intangible assets [Abstract] | |||||
Intangible assets - gross | 160 | $ 160 | 160 | ||
Non-competition Agreement [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated Useful Life | 1 year | ||||
Components of identifiable intangible assets [Abstract] | |||||
Intangible assets - gross | 30 | $ 30 | 30 | ||
Restaurant/Retail [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | 10,300 | 10,300 | 10,300 | ||
Government [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | 700 | 700 | 700 | ||
Trademarks, Trade Names [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Indefinite-lived non-amortizable intangible assets | $ 400 | $ 400 | $ 400 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stock Based Compensation [Abstract] | ||||
Total stock-based compensation expense | $ 62 | $ 141 | $ 238 | $ 207 |
Stock-based compensation expense, tax benefit | 10 | $ 22 | 10 | $ 48 |
Unrecognized compensation expense | $ 400 | $ 400 |
Net Income per share (Details)
Net Income per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of the weighted average shares outstanding for the basic and diluted EPS computations [Abstract] | ||||
Net income from continuing operations | $ 1,977 | $ 100 | $ 3,241 | $ 115 |
Basic [Abstract] | ||||
Shares outstanding at beginning of period (in shares) | 15,811,000 | 15,607,000 | 15,771,000 | 15,645,000 |
Weighted average shares issued during the period, net | 108,000 | 8,000 | 122,000 | 6,000 |
Weighted average common shares, basic (in shares) | 15,919,000 | 15,615,000 | 15,893,000 | 15,651,000 |
Net income from continuing operations per common share, basic (in dollars per share) | $ 0.12 | $ 0.01 | $ 0.20 | $ 0.01 |
Diluted [Abstract] | ||||
Weighted average common shares, basic (in shares) | 15,919,000 | 15,615,000 | 15,893,000 | 15,651,000 |
Dilutive impact of stock options and restricted stock awards (in shares) | 260,000 | 55,000 | 253,000 | 66,000 |
Weighted average common shares, diluted (in shares) | 16,179,000 | 15,670,000 | 16,146,000 | 15,717,000 |
Net income from continuing operations per common share, diluted (in dollars per share) | $ 0.12 | $ 0.01 | $ 0.20 | $ 0.01 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive stock options outstanding (in shares) | 0 | 38,000 | 0 | 26,000 |
Segment and Related Informati31
Segment and Related Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)SegmentUnith | Jun. 30, 2016USD ($) | |
Segment and Related Information [Abstract] | ||||
Number of reporting units | Unit | 2 | |||
Number of reportable segments | Segment | 2 | |||
Number of hours of telephone support for restaurant and retail segment | h | 24 | |||
Information as to the Company's segments [Abstract] | ||||
Revenues | $ 62,261 | $ 52,658 | $ 128,126 | $ 107,963 |
Operating (loss) income | 2,754 | 352 | 4,995 | 416 |
Other income (loss), net | 54 | (210) | (194) | (280) |
Interest (expense) income, net | (13) | 3 | (45) | 32 |
Income from continuing operations before provision for income taxes | 2,795 | 145 | 4,756 | 168 |
Depreciation, amortization and accretion | 954 | 829 | 1,852 | 1,606 |
Capital expenditures including software costs | 2,296 | 1,223 | 5,645 | 2,204 |
Other [Member] | ||||
Information as to the Company's segments [Abstract] | ||||
Operating (loss) income | (628) | (344) | (2,264) | (1,587) |
Depreciation, amortization and accretion | 129 | 63 | 246 | 99 |
Capital expenditures including software costs | 1,033 | 489 | 3,307 | 515 |
Reportable Segments [Member] | Restaurant/Retail Segment [Member] | ||||
Information as to the Company's segments [Abstract] | ||||
Revenues | 47,716 | 33,248 | 99,265 | 67,036 |
Operating (loss) income | 1,795 | (800) | 4,161 | (1,300) |
Depreciation, amortization and accretion | 821 | 756 | 1,595 | 1,488 |
Capital expenditures including software costs | 1,256 | 702 | 2,331 | 1,650 |
Reportable Segments [Member] | Government [Member] | ||||
Information as to the Company's segments [Abstract] | ||||
Revenues | 14,545 | 19,410 | 28,861 | 40,927 |
Operating (loss) income | 1,587 | 1,496 | 3,098 | 3,303 |
Depreciation, amortization and accretion | 4 | 10 | 11 | 19 |
Capital expenditures including software costs | 7 | 32 | 7 | 39 |
Reportable Geographical Components [Member] | United States [Member] | ||||
Information as to the Company's segments [Abstract] | ||||
Revenues | 57,621 | 47,571 | 119,188 | 97,790 |
Reportable Geographical Components [Member] | Other Countries [Member] | ||||
Information as to the Company's segments [Abstract] | ||||
Revenues | $ 4,640 | $ 5,087 | $ 8,938 | $ 10,173 |
Segment and Related Informati32
Segment and Related Information, Reconciliation of Segment Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Identifiable assets by geographic area [Abstract] | ||
Identifiable assets | $ 123,207 | $ 124,049 |
Goodwill by business segment [Abstract] | ||
Goodwill | 11,051 | 11,051 |
Restaurant/Retail [Member] | ||
Goodwill by business segment [Abstract] | ||
Goodwill | 10,300 | 10,300 |
Government [Member] | ||
Goodwill by business segment [Abstract] | ||
Goodwill | 700 | 700 |
Other [Member] | ||
Identifiable assets by geographic area [Abstract] | ||
Identifiable assets | 28,041 | 29,873 |
Reportable Segments [Member] | Restaurant/Retail [Member] | ||
Identifiable assets by geographic area [Abstract] | ||
Identifiable assets | 87,553 | 87,672 |
Goodwill by business segment [Abstract] | ||
Goodwill | 10,315 | 10,315 |
Reportable Segments [Member] | Government [Member] | ||
Identifiable assets by geographic area [Abstract] | ||
Identifiable assets | 7,613 | 6,504 |
Goodwill by business segment [Abstract] | ||
Goodwill | 736 | 736 |
Reportable Geographical Components [Member] | United States [Member] | ||
Identifiable assets by geographic area [Abstract] | ||
Identifiable assets | 107,293 | 110,369 |
Reportable Geographical Components [Member] | Other Countries [Member] | ||
Identifiable assets by geographic area [Abstract] | ||
Identifiable assets | $ 15,914 | $ 13,680 |
Segment and Related Informati33
Segment and Related Information, Revenue By Major Customer (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue generated by customer | 100.00% | 100.00% | 100.00% | 100.00% |
All Others [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue generated by customer | 27.00% | 29.00% | 24.00% | 30.00% |
Reportable Segments [Member] | Hospitality Segment [Member] | McDonald's Corporation [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue generated by customer | 36.00% | 24.00% | 40.00% | 21.00% |
Reportable Segments [Member] | Hospitality Segment [Member] | Yum! Brands, Inc. [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue generated by customer | 14.00% | 10.00% | 13.00% | 11.00% |
Reportable Segments [Member] | Government Segment [Member] | U.S. Department of Defense [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue generated by customer | 23.00% | 37.00% | 23.00% | 38.00% |
Fair Value of Financial Instr34
Fair Value of Financial Instruments (Details) - Contingent Consideration Liability [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Balance at beginning of period | $ 4,000 |
New level 3 liability | 0 |
Total gains (losses) reported in earnings | 0 |
Transfers into or out of Level 3 | 0 |
Balance at end of period | $ 4,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Xpansion LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Software development costs | $ 742,000 | $ 0 | ||
Wellness Facility Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Monthly rental income from related parties | 9,775 | |||
Rental income received | $ 29,325 | $ 29,325 | $ 58,650 | $ 58,650 |