TACT - Earnings call transcript Q4 2020 | TransAct Technologies Incorporated

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Operator

Good day, everyone. Welcome to the TransAct Technologies Fourth Quarter 2020 Earnings Call. Today’s conference is being recorded. At this time, I would like to turn things over to Mr. Marc Griffin, Investor Relations. sir. ahead, go Please

Marc Griffin

after afternoon. end to we’ll XXXX announced release the Good quarter be Technologies and results issued press our year earnings in market And you. close. TransAct welcome fourth discussing the Thank call. Today

company today results. Today’s initiatives, CEO, DeMartino. Bart Chairman us we operating these financial include will fourth details a President Joining on for participants the are CFO, strategies, company’s on and key and and open will the and our the from to Then Steve call Shuldman; discussion of quarter progress call questions.

materially. conference As deemed a be Statements reminder, our contains this in this which on call as expectations, forward-looking events are nature. forward-looking future differ and and may about actual call statements may results

to directly GAAP measures that, financial inherent reports reflect presented today’s statements on obligation within non-GAAP me SEC Regulation most XX-K undertakes after of and all this with For business to to update let call. of well company’s calculated G. webcast the Today’s Bart. revise measure refer call please of TransAct forward-looking over circumstances full and include Form press its can company’s with to turn as non-GAAP company, be financial list as SEC including or the financial found events occurred no the in And to release, the will required, or accordance a and measures risks to the the website. When that meaning and reconciliation comparable in call XX-Q. filings, the a any on

Bart Shuldman

this call to you thank joining today. and on us Marc, you, Thank everyone

change we starting key answering accelerating, pandemic to customers global calling process are markets markets are a We beginning markets in our and improvement you As see the grow. environment all business our were the to and vaccination with calls. sense in in again remains the are confidence do as our in our persistent. aware, But

difficulties experienced becoming the all pandemic, While associated about we with that more we’re have optimistic global future ahead. a lies

year on with throughout execution We are XXXX challenging with better our note this we and ended pleased an improved quarter. a

momentum I hardware paid to particularly of technology and terminals saw If all workstations the XXXX. I the our in have -- the year. accelerating are with pleased good investors which ended as we market, our fiscal year terminals throughout about a X,XXX how growth We for in many times, we the over said of and installed TransAct growth with compared market, the to installation many ended the XXX% it’s strong news, foodservice

discuss delivered in this revenue fourth will with Steve in $X during of million $X.X to is $X.XX share. detail We As later call, line we $X.X loss year-over-year recorded net and of XX% quarterly adjusted $X.X EBITDA XX.X% of $X million an of million to EPS million a guidance preliminary quarter diluted for gross and our loss our million. declined profit and margin loss EBITDA the total quarter

XXXX up foodservice its recurring fiscal versus XXXX. and Joining in XX% about good the XXXX, installations the technology we terminal revenue fiscal FY continued growth our ended news

grow recurring and recurring revenue million, $X.X revenue market, Hardware last the stream in the revenue being exponentially. as foodservice period was revenue up sequentially. time by are stores up from the during increase expanded technology the terminals But the lifeblood once Now and the virus market we slowdown pandemic same we still restaurants of the were again. quarter let’s impact the recurring our number XX% the workstations our closed significant XX%, at experienced fourth on the on remember, the as of Total terminals in sales year and almost Christmas in year and and we our will earlier XXX%. and

the from way additional market the lead for up an XXXX. to quarter our fiscal XX% revenues and to half hardware about equates X,XXX terminals hardware revenue almost quarter, things in fourth of fiscal all XXXX. period the This our of in terminals were I strong paid a of year paid During ago and of year X,XXX fourth total note system the Two XXXX. our the by need BOHA! running end of on extremely

shipped X,XXX and First, we our terminals installed that customer. to went Sushi almost new

December, in but installations. we However, not would the from the a expect. This the corresponding not lot end recurring of so led lot terminals at very occurred to label those the installation did market, receive sales of a revenue we more

We expect XXXX. these amount to terminals drive in a of revenue recurring solid

lasting COVID-XX of virus the due in and the to transaction again declines unfortunate the our winter, customers October in experienced in starting months Second, spread of many volumes.

labels store convenience had in of realized in quarter. customer third purchased the visits they fourth to who really large XXXX of customer as slow lot overbought started a the their quarter Our

the So in quarter, our labels chose they to any not recurring fluctuation fourth purchase causing revenue. some in

And the started orders customers’ it have on convenience impact we While economy and large our during see customer ship in about this first rate vaccination increases, anything the and virus the new terminals to we to XXXX, and we expect has customer, continues once from cannot store again. do year. more label come spreading pick in of nicely sales improve quarter as this up label workstations we and to the

some good restaurant progress as operations platform seen new Our has well.

all our provides the first procedures safety quarter, using of operations processes the offered sale reminder, started which built announced was our and platform first XXXX. back operational native in officially with platform, house to operators restaurant track quarter we book we Late operations customers digitized and in iPad. an a to restaurant in our new restaurant food manage to to platform September, a and iOS As single

our restaurants operations of the BOHA! purchase restaurant platform. we service of after This XX is part closed full first market Now order multi-concept for a our company. are restaurant restaurant announced today, that

our We’re really order first ROP. see BOHA! for restaurant pleased to

involved sales million roughly more half potential a Now deals. lead been of potential generation in $XXX far currently those in incredible. is has phenomenal than our partner Apple We has so Apple their and and in revenue been have pipeline

know, has our Apple markets you decided really and business is in to world. is expand other on focused here market building As good around the to very news. Apple our some the restaurant relationship

very excited the with joining Apple globe. are them to to around We be expand

at let’s and convenience will use XXX market the review an XXX to will locations the to food of generation of can our across system. eventually -- regional store COVID-XX, system will more chain opportunities quarter. notable BOHAX impact of chains Despite chain A BOHA! third-party branded and privately fresh to the locations. store A food continue earlier to offerings from use recent the some in business over support ecosystem be about we’ll wins foodservice support will by significant expand full with this why ecosystem store see regional upgrade convenience locations, over our in us. international And the XX and use front program So to chain very our BOHA! the labeling at and locations especially to you we Canada. their U.S. excited fresh XXX the convenience

their a casino to $X.X our the casino and gaming mild on markets gaming business million, we global focus are floor. to casinos see during on remain quarter starting in challenged but year-over-year. Moving printer The the spending recovery as quarter, we was XX% Revenue gaming and down and Epicentral. the

with shutdowns first to localities international more required of We large the the been as half times. Our recovery challenged than close. experienced first due XXXX to in the extensive Europe moderate more capacity non-gaming limited second travel, markets saw the limited curtailed reopen, Casinos which pandemic. limited see but in clearly albeit half. remaining -- casino Asian of remain In a U.S., market remain. gaming XXXX. part capacity we’re is to U.S., has continue challenge as The starting most throughout attractions reopen, and the casinos the

to in XXXX, third our slight the in down remained gaming benefit a we and volumes receiving from from activity year. casinos our in on XX% domestic fourth are quarter in quarter last XX% the revenue as but QX We accordingly improved focus XXXX

in continue projects coming throughout improve continue XXXX, QX XXXX growth revenue pandemic a stagnation thereafter in prove -- with in we However, begin the its stronger we CapEx winter, experiencing After back sequentially quarter optimistic new before. our faster pandemic the will that and second increased floor XXXX. the are to cautiously improve of every hitting to quarter spend the the from sales feel head will conditions than and and will while rearing that gaming

has gaming to of industry testament the chosen their XXX TransAct their & Circa opening selected use in Casino printers, third floor. and gambling Vegas since the new leading all-new for XXXX, in Derek all to Resort Circa the slot Stevens, support of Circa the CEO and Sports. Resort Las technology, Vegas Casino downtown Vegas Circa our TransAct a X,XXX Epic Edge, property the all both was of is casino first Las & As by Casino in new Epic opening industry-leading of is Las Resort machines. &

work the best possible and with entire casino We we team this are through Derek the honored Circa guests to products. the edge our aim provide experience cutting of to as

we’re though once We are even increase to is excited we and the in now the gaming travel gaming positioned activity of position industry resumes. well worldwide, about in our know benefit activity

sales to I our business-to-business Steve, in industry grow Randall extensive restaurant a scale and the welcome will and activities. turn in Directors. and our knowledge over Friedman asset we be of has restaurants call marketing marketing I the Board BOHA! to deep want and of the experience Before market to foodservice huge as Randall’s

Additionally, and our dedicated his his will I wisdom and service want Steve? retirement. XX to greatly company make Schwarz truly years review fourth for results, the me Tom the full over his best I’ll extensive quarter before guidance Board. summary I remarks of some questions-and-answers. given and has Tom call thank humor and after With the he I his miss will year to all opening wish that, during XXXX Steve, on our which

Steve DeMartino

afternoon, Thanks, everyone. Bart. Good

quarter We’re made challenging of the the pleased and XXXX. have TransAct the throughout fourth with in year progress

QX. $X.X from our compared our the results, million million year. foodservice fourth in technology net from sequentially but in quarter fourth up up which to sales XX% to the fourth $X.X market, down was was of Net X% million, for $X.X or XX% sales million of year, quarter last last to was quarter $XX.X FST Turning

sales ended paid $X.X Our period the terminals to million X,XXX and the with FST the million increased year quarter in XX% market. we $X.X hardware from ago in

approximately operator X,XXX included of the terminals by During the terminal announced BOHA! to units, we Sushi quarter, our we in which increased July. account paid shipments X,XXX

which period. software sales subscriptions, consumable fourth from the the FST $XXX,XXX as in well year Our was the XX% up at which came ago in quarter, reported recurring in and service as label we sales include $XXX,XXX

quarter, order from store customer. stated from benefited convenience last QX large largest our As a stocking

negatively customers’ they their during affected any As that transaction explained, fourth quarter fourth quarter. the uptick impacted this labels business, during volume was purchase COVID-XX by Bart so of didn’t the

time revenue can service will begun of placing QX. said, ramping XXXX. of size and FST stocking We placement QX the QX recurring the as orders $X.XX our BOHA! increasing and orders orders, have terminals really timing That market. they averaged the QX for Averaging over demand. two having based However, individual labeled of that of per label terminal again FST would both both and total good effect this our quarters, the customer’s quarter-to-quarter, shifts the service QX over customers. the well is annualized number software their news terminal as covered We believe this increase cumulative believe and million for fluctuate about label recurring demonstrates we that by believe in and from in on QX and hardware have order revenue revenue large recurring

QX factors. ARPU by impacted For was two our

from end impact the QX QX stocking the that shipped of QX. in we order in near the recur label Difficulty] [Technical First, large right didn’t

small of So we were able to fourth this the quarter. a related customer revenue recognize amount recurring in only to

the quarter for the the averages revenues much recurring quarter, order pandemic. analyzed of and sales $X.XX were with result, quarter XX% on fourth decline quarter up large label sequentially quarters, quarter have due sales down of POS as XX% fourth fourth casinos XXXX, COVID-XX fourth printer of a impact XX% third terminal million $XXX domestic but revised began approximately of were was XX% relative $XXX from our terminal to the from business. been but than and from to As for would XX% of from QX. recurring pre-COVID-XX stocking Automation the year QX was the normalized Casino amount lower to the over revenue two for the reopen, activity per times. $XXX,XXX lower in improvement revenue Using were banking ‘XX, McDonald’s the the prior down sequentially ARPU our this per which $X.X and albeit Breaking quarter. international Ithaca of down revenues about a third X,XXX our worldwide POS down on further, the a to XX% their for significantly million, gaming of our sales

XX% the Looking compared to sales, at Printrex period. to were $XX,XXX down revenues prior year

Difficulty] legacy parts, inkjet such TSG revenues to products focusing to [Technical legacy Since our to we compared rolls impact as service the of sales, period. million XX.X% sales year-over-year consumable to paper the expect TSG, we additional continue products, printers. experience Services While expect HP deemphasize in and the we prior continue declines our down on recovers Printrex in market, finally, on $X.X or still legacy spare receive from and in sales TransAct to this decline were as our we longer cartridges the year to Group as time we’re banking of customers orders COVID-XX. continue no over contracts to from legacy XX% industry And

for shipped the down $XXX,XXX X% lower from XX% Our sequentially sales as operating in impacted order the and a gross tooling negatively the year-over-year. XX% terminal was the XXXX or quarter. third million, decline, margin large by the $XXX,XXX quarter as that write-off for of margin expenses and on the XXXX $X we overall were fourth $XXX,XXX well an quarter of increase the or quarter fourth Total

lower expenses year, sharp steps our and controls As XX% QX pandemic structure year-over-year $XXX,XXX our the cost The all we to or to took of April, significant in due down XXXX. number from to other run the ban, we attributed of maintain in as ongoing and well have reduced throughout those to planned commissions, and pandemic. outlined portion earlier marketing a trade the Selling were COVID-XX rate COVID-XX marketing and expense the elimination primarily decline programs, million. the shows was a $X.X of as due employee sales to terminations all travel

to year-over-year significant million. the been workstations and Sushi centered the expenditures platform continue relationship to $X.X BOHA! declined XXXX, we balance the cash for to we sheet. of PPP of iOS XXXX up legal, expenses year the quarter our design compared turning debt for and quarter fourth December product pandemic, to native with the investments into or sales, during operator. Apple. In for ROP we the mainly for see to EBITDA general, of launch G&A software reductions development to the net the announced to as XX% loss discretionary XX.X% of And $X.X accounting development a and large or to share We compared incurred and compared in other due finally, $X.X expenses growth Despite quarter, the as solutions. $XXX,XXX million head those operating additional was $XXX,XXX sales well specific last quarter an the development the bottomline, over invest expenses $XXX,XXX restaurant recorded QX, year. per We recently the recent to ago in quarter our outside opportunity to in we of we And in or share sales of XXXX period. loan. new XXXX, incurred $XX.X In net $XXX,XXX fourth making of net accordingly, the in past or and were iPad. year fourth were growing for COVID-XX. million under loss net we or have million of in period. operating on plan our As functionalities per with loss of the million, $X.XX down needed in in fees professional the the fourth BOHA! BOHA! begin support the of BOHA! the X.X% negative X% marketing engineering, $X.X million the with of expenses operations with year $X.X all during or quarter year-over-year ago as in $X.X other Apple loss And partnership ended XXXX on a $X.X for million, $X.XX and negative Adjusted million

October share. completed per of $X.XX the reminder, we overallotment full X.XX of in the an at exercise public a XXXX, million shares, underwritten in option As including offering

net give Bart I’d expenses approximately back We generated this the call for And closing after remarks. also to $X.X at point, to Bart? like million. proceeds some of

Bart Shuldman

job. Great Steve. Thanks,

forward confident we and we are the seeing momentum about remain restaurant largest in ever As pace markets, on that towards XXXX, to BOHA! optimistic look -- the our opportunity. convenience are and our generating revenue we store is become

Our position our to and our focus determined emerging the Remember, this market is success grow for the we’ve all terminals. leverage on for to BOHA!, business significant create shareholders. it’s long-term about value as driving in

XXth. associate on like Finally, I’d to you’d Please over Conference we’ll point, Roth see this information March and the listeners. participate. our participating turn there. Roth questions-and-answers like Clearly, if XXrd the be call to XXth to I’ll Annual be more Operator? At in for to your

Operator

you. today with Instructions] Martin first Roth hear [Operator Thank We’ll from Jeff Capital Partners.

Jeff Martin

Hope Bart Steve. afternoon, both Good and well. Thanks. doing you

Bart Shuldman

Thanks.

Steve DeMartino

Hi, Jeff.

You too.

Jeff Martin

to start you’ve it of means your something explain potential Apple, those secondly, it pilot that customer you I differently? pipeline, of And might sale definition of you defined you in what prospects any could is prospective pipeline. or made first with stage there? when as $XX One, -- with terms the with in any idea was of and the revenue close in that contact million wanted are first the is

Bart Shuldman

Yeah.

in a our have and So little the we’re we a our potential we year, pipeline that force are orders sales we kind And use. it revamped -- want last on. over program sales so we numbers what that of this only working

all in they was could be to a There the is make meeting be different that non-disclosure. convenience shipped we gates. They a have our to with to and call new down while we that our show goes order still have many sales we’re between customer, What the and and many contact do only comes TransAct the then closed a into to, they them true following orders that we’ve sign have That’s coming it’s the team and with potential spreadsheet. terminals pipeline it. way could of phase moving list go. in number. not look you -- a different it is if store phone instance, that forward okay, not them. multiple and discussion them thousands so answer and For a thousands to and interest us That’s at Then

a they phase together meetings and different a So where their amount could the system They close. opportunities and got and items all putting the have been all means range in menu items they’ve data. an there’s working here. be test. we’re fact, gates. a we The into number That I menu then of -- then for there pilot, then And their there’s evaluation is that on getting sheet have, given and data from made set, and our through it biggest us of qualification, that a their ready right

Now pilot be it be and close. goes could could to then, a of evaluation, or course, it

restaurants. excited customers to the in where tend mean that Doesn’t XX that’s There’s few pretty somebody truly and little of are. move very got we’re very a than or close Apple year. a working going some XX it’s they expect to slower business this this pipeline would working excited we on. of But I help we’re identified and -- big that restaurants we’re with much it that some of So long-term. we’ve to is close

the tests I category. the this be on some But going the the might in close having know that bigger they conversations They year. and to would not small are might in medium expect that, on, that category. to we’re You based be

Jeff Martin

just expanding Okay. markets. relationship other they in what you are I Great. at? their then, looking am And markets curious to interested Apple’s mentioned,

Bart Shuldman

all. Exactly

with with in opportunity Asia working opportunity. on Europe So them them we’re now right and working an on an in we’re

So they’ve introduced global to their TransAct team. sales

we’re a of sale team together, be have type that customers team the identifying this right technology. sales Europe they and So in Asia. in certain for will And

and can we’re minute actually plan be only there’s that restaurant is to their executives April tell video three somewhere us around attend And a done the Apple we’ll seminar excited. attending meeting. for to then restaurant and the you to companies between this, are very invite seven I We’ve holding of So presenting presenting. is in many a them. XXX restaurant

and then you in relationship all or hard at opportunities they what Sometimes us it’s it thought focused restaurant in but I sometimes just for boss point change, in Jeff, look us big and I this it the you this have will keep working the suddenly, some but stack new telling nothing our promised they They happened, company, nothing set with have world and going in we’re say, amazingly say, get in the leads Apple, get direction, they’re long-haul, interesting, and shown us they’ve direction they’re business. comes could they stayed point, a involved together. a different on they then the at growing with shown and us the marketplace. the the to this

So be at this more I could now, stand the time, with thrilled today, right I not relationship. where

Jeff Martin

us Any if and you side some path well? on up plans hiring sales the the other lead of have where give you’re service of start things to into a as expectation you point you staffing things. to could of Are still to or at either support ahead need at you going do insight are or progressing or

Bart Shuldman

to Well, I going international us. challenge think, opportunities the

things we technology, looks out those rest we them have of support U.S. we’re again about have to December, market Jeff, when one and were leads in, that difficult, out. are September, to this as came marketplace will were the a real our and whole when down, pandemic we going because was to winter, larger we of to was was really amount slowing that it that’s what the world October, the conversations We’d add. there them, than November, would much starting you alone haven’t what I analyzed thing stacked slowing at what that tell and X.X say we to help use in to So action not million the see come opportunities looking was have yet, out hit very up. And be ago. we -- we’re down Because it that picking in want excited we year to of mean a what was even the to the I then the took was support like pandemic do to to But just in right? there’s another pandemic them even how the off closely like.

So that down. about kind the slowed our on. slow of one this. hiring excited again, get let’s because said through extremely for We I’m let’s down vaccinations that are going

We We we it’s now are know whether states see on starting But opinion too to open. have or have our early XX% population could that the not. do vaccinated. all of

So tunnel light the we’ve have end much seen. people at the the virus. There’s ever of many brighter than had

as see to we that develop. So continue

We us about are they’re again -- customers our calling we calls. probably how keep how are talking and answering internally

think tough So marketing we a comment see I big office, add made side, so we can’t will it we’re the both and I’ve zoom somebody’s that to where of and And as it’s couple continue side. this develop, still marketing. is right, that doing when to of the meetings we sales on into team lot we need times on a get

magazine. of us marketing We -- quarter. with So the to pretty spend marketing the you’re and a decision speakers, spend have we’re one up trade as to up backing event this that do in major really pick Apple’s the for see next restaurants going with our good

coming people hiring leads from we pick software because see on in the that Apple people, from we sales our is the probably again, side. come will more can the But on spend the marketing marketing need installation will do Where event. the also So and up. spend you’ll without and

Jeff Martin

next QX spend then we say marketing QX, pickup is And increased and Okay. and quarter…

Bart Shuldman

QX.

Jeff Martin

sure, quarter… mean, am …I this I not

Bart Shuldman

QX.

Jeff Martin

Okay.

Bart Shuldman

we’re go going up to that’s say, I’d marry going to Apple’s event major in So April. to on

Jeff Martin

but couple it. to I’m I’ve circle going stop here to Got going but around questions back in I [ph]. am got more a

Bart Shuldman

Okay.

Operator

Barrington We’ll Howe hear next with Research. from Chris

Chris Howe

Bart Steve. and evening, Good

Bart Shuldman

[Inaudible] Okay.

Chris Howe

could Perhaps I Yeah. the first initially more restaurant full of the you within more potential concept restaurants, color, some just this deal restaurant XX company? is service full how first multi-concept about? on color came after company. this provide restaurant sale, on some guess, this And part this for off, there

Bart Shuldman

Yeah.

So commitment. We field is of good because at BOHA! clearly our full use technology. some could this restaurant to come we that technology wanted We any location we need a new our this we asked our if workstation and really to to in, said, story, that. trial test new actually a is ROP, you’d we like all without a our company

we’d like there. those start of got like night. other too. so we locations. we with at them. We’ve labeling. working look, do when up. we restaurants to the and two and restaurants side a of said, in And it have us our chain -- And a out ran did in we’re good a And with actually test came all to came with the We we’ve one But of and XX solutions how system got bunch testing that, systems willing was business sort XX that’s sign we’d to tech and is, news didn’t done got of last whole And the out to out they purchase roll understanding

wasn’t call, last So the in came literally and an for order earnings purchase on done waiting this purpose night.

to shareholders. that as thrilled be share possible So we quickly were to as with able our

is a So release -- and -- about press company bought if loved lot. you they need have they part us we as that gave in the much this restaurant so the test to And it seen in bought it that they it they it opportunity. marketplace bought and opportunity best the

temperature taking into measuring to do the labeling. the going We’re temperature and walk freezers and and be

So the fair amount of technology that we’re rolling out restaurants. in these XX

Chris Howe

scope the going of that expanding question, that following about markets? Apple, the an That’s have partnership reopening. along great. include path color. global to Jeff’s just up question to seems it appreciate of Europe I uneven And or on the

for this? think should be hands global this not back expectations we outreach out and Asia Will things we and opportunity coming on have America. deck How basis? all will be concentrate a geographic be is the seems more the domestically to that further about than case North or could faster on markets a global

Bart Shuldman

Yes.

for our true. easy the an in so no, pipeline, looking This is is that’s working all answer opportunity Japan, it. everything There that one over in to somebody oh, So jump -- at not comes on. we’re -- in with domestic is, force going instance, if we’re in Europe sales

to early with are say if get So okay, what takes a point that, back of conversations What domestic. would does office. the have you How be I have? do months couple I a our first conversation get replace to lot It in and we let’s matter technology wins forth. There’s started but that or domestic of work? customer, it’s that the it, a and to it going test doesn’t the back forth added to international. a When goes

away we’re months that. a from year from So half away not that, if

this to were and because not it’s piece just strong more the bring Chris, that is think about year, But we’re willing into months what a we’ll international that the beginning. to us to XX me, story to that lot do. they a willing they the that’s felt XX talk market, was months technology about cycle that is I sales Apple easily exciting our that

total world available which So the expands to on, does our is rest technology. market work us all our for give but it of the

do work by in humbled markets. doing that to very We like a it we’re like and in see to like the So want what the of to regards what We company at saying, I kind other in the world. of you we U.S. Apple look, large in we like rest we’d look being with these

humbled pretty that. I’m by So

Chris Howe

a how series great. announcements that sounds last convenience channel. question, looking great had to in My of the store develops. forward I’m That we’ve

of should rollout potential convenience focused announcements of announcements, that to rest think versus As expect announced locations? from there you the comparison that of XXX If handful on customers the specifically, across been look portfolio, be about rollouts faster to in of maybe total these of we cadence others? are a specific my with at look rollout of store at we customers or each recent we in somewhat each has to the a convenience any the international eyes operator indication the consistent or they thoughts a be store your

Bart Shuldman

Yeah.

their mercy So we’re of at the rollout.

talk rolled they’ve initiative. their this a two because to that. rollout. a fresh other then would stores about will food food roll and take where they out their XXX to that I all one guess let’s technology Then XXX in as take, after So the breather normally, they’ll quarter committed to doing though, XXX, over fresh they’ve rollout we’ll that’s stores,

So, nicely with unpredictable. very it’s end customer. terminals. kind be like is we’ve We convenience or We good believe at be nothing this to going large the got but We last rollout. a by backlog. of news not could terminals But that’s year. to the it’s been X,XXX that the going And XX,XXX predictable I close ended over the X,XXX, looked grow to linear we year mean, do our and year. of

Chris Howe

Yeah.

Bart Shuldman

good recurring the that believe good also as going the We is, we revenue, really restaurant much back. buy the But it’s labels. what witnessed when what witness we because the bad wasn’t did going pandemic thing look the be witnessed that’s we’ve than other software will at more and it’s more when We they recurring the predictable, you summer, label come revenue gets have when to to eventually side, bad there been sales, it in that’s like through.

so really because many that of walking we’ll software the because how labels, side more people more it’s many that’s the predictable, be the are them the the they’re transactions to and some And are label will stores than how And lot month lot in business using build of every to food. software for a door. and hostage and we’ll a they’re where we’re buy of convenience going kind just that then labels, doing

are of is stations. don’t the that they they faces gas issues have so company convenience One

something, October, or of hit, in some to stopped to pick in there pandemic not a people a if you and while you’re gas pick again off get it when going took November, lot up something really the get up when but might gas. might to So you get coffee, muffin you’re

station. So and to they But more convenience I think there’s still others their -- a business close. than gas because was have just store companies more impacted don’t

all, but So, to convenience get customers But have there’s for will of we them need they’re get label don’t all and you yet. clearly more them technology. in

more go. to there’s So

Chris Howe

taking my the back Great in for questions. hop and queue. thanks I’ll

Bart Shuldman

Chris. Thanks, Yeah.

Operator

with Management. Asset to Mitchell Sacks We’ll move Grand Slam next

Mitchell Sacks

Yeah.

restaurant relationships attacking machines, the how about slot casinos, kind part talk and obviously, operations with is but dealing could your respect So the with their question of on the opportunity you that? to of you’re with opportunity there the

Bart Shuldman

So, certain casino last we the technology, our really one that in to group technology quite ground with to that but got in where below using all the successful pandemic, and a down. say, shut were conversations everything getting use had week about we food. have group casino during their commissaries they Mitch, prepare I

and the indicate hard than I other to see again at open technology restaurant to to looking the and able volume again. are people it’s be going for of travel and machines -- slot casinos of So, the and to when the for be tables waiting kind casinos happen see see

You’re Restaurants are one XXXX probably talking story. to thing.

Florida mean, can’t street reservation go we have You down in and I restaurant. can parts where here certain drive a the a you get Florida, of to anymore.

that many go thing another for us. out plane and to that’s got travel. the So people and in when I It’s vaccinated, you to are they’re been willing have and get packed restaurants think the great about

But think have I they’ve lag back just healthier. like I go it our of until introduced being they the to restaurant casinos to looking story effect them. been we’ll XXXX technology. it’s because So we at -- and they’re of what probably of think, more how haven’t not see rest through the Mitch, a to It’s a much

Mitchell Sacks

terms contrast has in customers the and the with maybe walk kind the of apps. saw to of chain second through just from C-store us chain. in taking their development the and we Can restaurant with question then that And is order the apps? restaurant different you of at where Okay. that today they’re taking The do

Bart Shuldman

Yeah.

you we seeing multiple and one, can us easy from them of release casino pull to So order restaurant, of and lots restaurants charging the do with press Mitch. for in times labeling. just of what we’ve is up package Clearly, I the if the that that is the that an we things stores -- that’s labels. look are not start software service the contract. use this that, a package the restaurant software should to will back right? at Convenience will So of C-store customer And many What of it. the we’re right? is do right? ROP the a Convenience said It’s value see restaurants, all stores

However, when is you which look system, at what we’ve sense, done timer, with includes checklist, ROP temp, labeling, manager. this media one restaurant, it our

that’s whole charging they’re we’re lot a that they functionality. one because than So what get for stores, all And getting they because need functionality, price. convenience that that’s more that us from a money program all

In hardware see saw right? addition, also selling sells, the workstation. was what you You of a lot that we’re

BOHA! selling see we’re sensors. You communicate our to to order work in that it’s -- that to you the see And for sensors got we BOHA! gateway.

that So the even you sale is right? terminal. $XXX not hardware the the value higher, of see selling We’re

and and We’re and sensors terminals all selling gateways that.

it that hardware this They and They were all. because So And we does You portal, They me happened, happened. test. want it functions. buy checklist. to you into that’s restaurants okay, one How They say, be confusing much thing to ROP And look, it. confuse They the want labeling. initial ROP, all think work? higher. one why want I But you this right? typical you right? you see went That we the Well, put confused,, we you’re restaurants, the want together go we put it for all want they want because with the is this should what portal happened, okay, whole see that’s see and this well, we’ll got they dimer. it. portal, together, did I

all BOHA! apps. BOHA! the labeling they’re provided function, time They labeling. With BOHA! function, longer attempt checklist So function. with the BOHAX sense functions. the no the There’s function, are a BOHA! function, convenience stores

that software label food as selling they’re of because a so but that functions lot less less see sales. can they’re much Does get you getting because of Mitch? help we grab-and-go, So

Mitchell Sacks

Very Yeah. you. much. Thank

Bart Shuldman

Mitch, look now. out we’re a years out a okay, why, we look couple when and have That’s going and to mixture you say,

to label Let’s the while XX-XX stores, say go sales we restaurants could convenience fluctuated.

the another through, be. be never But restaurant on we when monthly slow hope see what all because we predictable and a they’re go down get doesn’t and and that’s it’d will Let’s cadence going that fee pandemic they’re software went and that what buying the to, side, away. orders into of we’ll

hostage So to that of transactions it’s they’re doing. the volume not

Mitchell Sacks

Thanks. Super.

Bart Shuldman

Yeah. Thanks, Mitch.

Operator

Jeff hear will We from with Bernstein Cowen. next

Jeff Bernstein

from Steve. to Hey, Bart and you hear guys. Nice

and quarter think Can know don’t there? I gross you we in on how should to there ‘XX? gross it actually minute. think question a a and about for the how margin, quick a bit just you impacts mix talk anything Just for cut the was it little in about out about if unusual margin

Bart Shuldman

Yeah.

So I…

Steve DeMartino

The gross okay, Bart. -- margin

Bart Shuldman

ahead. start. Go You No. Go ahead. Go ahead.

Steve DeMartino

for answer say to Jeff. going that quarter on fourth I’m the question,

itself impacted two we pretty low. I -- yeah, sales in mean, quarter. So, the we obviously, did were by things volume the was

margin. also in is impacts charge. -- -- fixed for at we quarter, we the unusual margins. have And lower tooling tooling big of got which a a about order overhead was the we We $XXX,XXX the amount that have But terminals of so worth some overall wrote-off

I we’re the our where that’s software. pricing the of is versus talk heading think hardware what now probably Bart with is going on kind to about

ahead go Bart So [ph].

Bart Shuldman

Yeah. Yeah.

up year that us revenue. So, so Jeff, can marketplace, we all the recurring that the get we to quickly into question is, comes terminals the how following the get

had order the package we to think we the don’t replace wanted for an what’s of to will go the terminal, out, the important we lose terminals, And us XX,XXX, customer have -- But we Sushi because I to as a if though goes negotiation And We a like price. booked Company fact, actually monthly. revenue. terminal existing they’re even we win the recurring open us whatever for that we for wasn’t an X,XXX. long it. as As to package XX,XXX It’s get because with do. actually case, how us in is terminal opportunity software in them. paying They’re on I’m sale an monthly. Jeff, money we have the this do after paying working

customer, we But didn’t the and lose will This the the on with lose write-off it. of of was working money and customers. weren’t don’t money And some we margin order. And we’re the should God, order size We that because of all Because course, the XX% just of all very get any go, revenue not sizable we higher depending size on our can hopefully we my a isn’t but more gross going of we with this at some Don’t to following that they expect there X,XXX oh, margin. revenue. this couple much year, at negotiate that look close customers. terminals won’t sit you’re recurring these tooling. hard, recurring and

much marketplace. in into keep and the look, on end telling out we you’re of of the revenue then and I every the is Company year, we the higher full we’re terminal, getting motion once into there, lot that at to terminals as that’s in this terminals, investor, going when announced with how on the December, got they’re Sushi that many get revenue a Because margin. get So middle focus recurring and question at focus didn’t recurring off of have they see

into So, the goal is marketplace. the get to terminals

Jeff Bernstein

That’s great.

large a As that with shareholder, model. happy we’re

Bart Shuldman

three years. It’s four fantastic. out years, go There you

Jeff Bernstein

Great, guys. Thanks.

Bart Shuldman

Thanks, Jeff.

Jeff Bernstein

Welcome.

Operator

with Martin Jeff go will We Partners. to back Capital Roth

Jeff Martin

in sense QX I what you’ve so experience I with was far and sales to of seen get -- Thanks. a your wanted in QX? sense the I to what wanted wanted a over pipeline, C-store quarter-to-date get to switch C-stores

Bart Shuldman

you So to a grab-and-go. get top of you C-stores, Once us XX, XX, much have as one. get won C-stores the down the XXX,XXX towards that drives What fair that we’ve We stores. big seven is C-store fresh eight them. as or knowing country, and doing a amount in won they’re past XX food

we’re what things, So is two focusing Jeff. on

doing food the or the opportunity. the grab-and-go, of were need label they are then First, type and fresh some size they of

our thing we’re like interesting them that with we’re we’re The close I said, working about the a right them and kind top we to restaurant some into talk starting and now like -- very So to marketplace we technology. are couple with is, try that you And have on the they as sizable to large the working industry, of past get companies. small. seven get or eight, once the get restaurant now

hunt every opportunity where really size opportunities, is farm trying time. We’re so because to good takes and there

C-store the to A lot for has came us. but of it market us. directly good So, been

And quarter. we’re we close So working our list this think, we’ve on that with. couple got I as a two you see,

right are So sales we’ll pipeline. remaining try continue our and on the ones to now close that

Jeff Martin

more Okay. if a And the two is question. I may, part one first got I

come year and First to and this XX,XXX year terminals get of part end that this much or will a of C-store rollout have even come or they if then, were of year? and to you the how much from by X,XXX to ROP? the X/XX how picture And with clearer plan, respect will for you next the is given year, from that secondly,

Bart Shuldman

more so, X/XX. a That’s a we’ve half half Wow, closed bunch restaurants. go wow, considering great a got we to for and and C-stores say, C-stores question. of I would

Jeff Martin

with this respect this then year, given out plan asking? much X/XX on visibility have have clear, am And what I they Okay. next to roll year, have for we indication, a you

Bart Shuldman

do being in and no couple would running up years, because they’re behind that. They give We’ve -- over they steady goes. it’s we going But we’re three right? stores roll a XXXX fell doubt we us to everybody buying to back told to It’s behind, don’t as actually closed where mean, here’s we just of I the the pandemic, years, XXXX. going us But be. and don’t fell in there’s they a all an I always it’s what think they order, indication. out years. -- say, thought be four give purchase And they they

to be And go so we’ve it. happy seem to keep got very a and rolling couple they out to more with it years

how business do every So the and XX,XXX include to as to hear many That will them, then from to the Jeff? many waiting be speedways. be year they do? we know, will do speedways get so they We it’s goal -- don’t of their to question they increase XX,XXX going

heard have We yet? not

Jeff Martin

Apple that. Okay. look get Great. Good seminar luck on at with to I’d April. the

Bart Shuldman

of job We Yeah. on Good. will some our of be Yes. Yeah. soon. it did beautiful great a video and website

website. the on testimonials customer see will you So

technology the You’ll see and a website. demonstration on

the we once for stuff through we’ll So then you. -- up events, you’ll Apple putting start get

see to change starting our You’re to website. a

another server, four old right us go take you an in but change, will changed. that it’s if now, corporate stuck which months, see months of been kind to We’re website three probably you’ll to our

click can start all of C-stores serve and casual sections that, then and some different testimonials the seeing on you click look and quick can you eventually can You too. foodservice technology, on and you’ll our there restaurants on customer

be website. post all to ends once to event Apple on the that we’ll quite up excited the So able be and

Jeff Martin

Great.

Looking your forward Bart. for that. to seeing time, Thanks

Bart Shuldman

Yeah. Jeff. Yeah. Thanks,

Operator

And this gentlemen, things at Bart time, you to turn to closing I’d for like remarks. back

Bart Shuldman

Again, say Capital. that a Really for opportunity in thing an going California. at those join Roth appreciate only Yeah. hour. is call. Well, Southern Tuesday, to to next The being about have miss been us can the it’s week I’m Hey. great I Monday, It’s the it.

that there again. best think really people the everybody’s throw together of I hopefully But Roth we’ll Capital one best be one conferences able support. day and the to do all parties be and is appreciate and to

You we can in see horrible, that front see March this of one and of horrible, and April excitement us, beginning May, the the despite through pandemic.

we came think about out if not we’re I excited and the future. of it as strong stronger just

So Roth If Conference. look at the everybody forward talking you talk conference Thanks, to everybody. call. next I’ll not, to to

Operator

does today’s us. that for Again, conclude And conference. you thank all joining

TransAct Technologies (TACT) 10 Mar 212020 Q4 Earnings call transcript