PAR - Earnings call transcript Q3 2018 | PAR Technology Corporation

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Operator

Good afternoon, ladies and gentlemen, and welcome to the PAR Technology FY 2018 Third Quarter Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Chris Byrnes, Vice President of Business and Financial Relations. Please go ahead.

Chris Byrnes

good and Rusty, you, afternoon, everyone. Thank like for PAR's also to results welcome call the to today XXXX you review. I'd third financial quarter our of be at The results p.m. press in X:XX disclosure today release complete issued our found can X-K as SEC. to related the furnished well our as in Form Investor at the and www.partech.com. the access News section details, please the To and financial of press see release Relations our website like in time, I'd to regards the this of details take At certain today. to call care are call recording it the be should afternoon, for that we call on and the Participants will playback. aware this available be Also, we the are broadcasting Wide via the conference World call Web. to expectations conference call based like includes management's available participants currently reflect data. that I'd that on remind forward-looking this statements

call be results forward-looking to filings However, are this related with the in upon uncertainties. relied annual future projections subject in The release earnings quarterly or included subject afternoon harbor statements statement and and safe other our to this our the may actual events to and conference information SEC. on and

me All the on Bryan will Financial the listen of call Chief throughout and today. President call on the PAR's Menar, Foley; PAR's Officer. Dr. only is Donald be participants will CEO, no be and during duration call call. into Joining There Q&A today's conference the today the

As to Foley. a I turn recorded. PAR's reminder, like and this CEO, Don conference now the to would is being President call over

Dr. Donald Foley

us on today. afternoon, Good Chris. call and thanks for to the you, joining of Thank one each you

take and a loss quarter XXXX. look our were over As a in million our cash million basis, million, our of Menar, review compared financials and update will loss to and of flow. $X.XX $X.XX the third GAAP then our third reported On XXXX. Bryan quarter to share CFO, of third net loss I third who of quarter, closer decrease usual, results overview a $XX.X per in compared the to I an loss begin share at quarter providing per net quarter will revenues we by X.X% the highlighting the and call of $XX.X by the a $X.X financial To a business. will for turn QX

GAAP reduce was to of value tax allowance carrying tax assets a valuation $XX.X the onetime non-cash Our million our to the loss quarter. recorded by income for deferred expense impacted recorded

services later reported Our of we a CFO for further the $X from decline or and by call. per X our was POS business will results The in reflect quarter service basis, $X.XX provide the the higher This a color net On Brink the and revenues. loss non-GAAP loss our SaaS quarter Brink offset purchasing hardware patterns million Tier of contract traditional only share. customers. difficult-to-predict a in finally, our hardware our Government associated segment and partially revenues of our revenues Brink business,

from the the business September last third of exiting we an third a XX% Now XXX new same quarter with Total activated revenue Brink. third $XXX,XXX, quarter XX% highlights. increase Starting quarter, a in the sites, approximately from to the update on increase recurring was month review In monthly XXXX. year. period the customer

Brink the both unit, the are we SaaS call revenue SaaS ARPU, -- The Our Brink now annual revenue and way revenue. per unit report ARPU, per center for average we including annual totals the revenue $X,XXX. Brink

now XX% increase SaaS to quarter, using from third the In of the end at QX of Brink, $XX.X increase SaaS a At revenues, the year. Brink had approximately XXXX. revenues, addition, XX% same end annual period compared last is an the similar the X,XXX million, recurring we QX restaurants of

might in add, from second and, increase increase I quarter. third restaurants, New XXXX totaled bookings the in year's from XXX quarter the XX% quarter XXX% a this representing same

making are our announced are will and the while be services the pleased strengthening investments to restaurant solid merchant in position. produce solutions our management solution, Brink In and our progress confident revenue our we Brink I of our significant initiatives customer by the continue mean Brink competitive that stores. are Steaks Philly we nearly Brink returns, and with complete addition and quarter, we SaaS, deploying new We complete, Brink and the Charleys hardware a our to of XXX Brink the selected win services, currently as

currently with be the the integrated overall to of increasing Cloud multi-unit reflected continue segment the the for restaurant leader, industry offerings our early hardware restaurant multi-unit I'm part phase, segment Again, customers. industry. clearly the adoption and new POS by solutions to referring installed base, PAR strategy. is Our coupled an in software-led the of is important our of

turning PAR's components distinct SureCheck SureCheck. an independently and sold three now currently integrated task digital safety that has food solution. to as Now management be or can solution,

to efficiencies. food increase operations solutions solution with safety restaurants our solution, digital task deployed These the our everyday of So and lower and other cost solution. labor ability in our management are to food outlets, stores IoT the providing and

several been teams Over SureCheck focus on successfully management version the version, SaaS we to sales new account is that of our solution. the XX.X, and last assisting SureCheck validate has quarters, continue our as our

the our segment pleased I grew third quarter performance. Now am revenues Government as to XX% in third again quarter the strong quarter last review report to a versus year.

grew QX. contracts of the PAR like to our significant in basis Contract Several an grew $XX increase backlog at to increase resulting in ago. book-to-bill X.X. was At XX.X%, quarter remained awarded quarter, just QX million grew number, I'd with XX.X% the book-to-bill was that systems year over while trailing reported a quarter, the backlog. from the a versus the million margins business Government end contract significant $XXX XXXX. points in XX.X% increased end quarter, closed $XXX at XX-month our trailing strong the that XXXX a from third solutions X.X. intel repeat multi-year XX-month were line the of Our million, mission the at new of XXX

opportunities like would confident Bryan, for to cloud-based I to continue our reiterate over solutions. market call that the the to be long-term we turning Before in

poised sales systems. management base We our grow customer It broader to cloud-based industry is restaurant to important moves restaurant that to the are toward and as the point point out adoption of continue of revenues associated Brink In XX-month of Brink total with XXXX, attributed Restaurant/Retail XX% million. total. QX our on our business total revenues represented revenue business basis total the a $XX.X reached to trailing our

service again, partners I in organization investors Once employees, the dominant our wanted as mission building industry. food both we and their growing move current of meeting technology of support thank position our and As to segments. market and on our through industry remainder capitalize for we opportunities of restaurant focus XXXX, customers pursue leadership to remains the the our on needs within business future the our

cash for Now I call Bryan? us the XXXX. financial CFO, our quarter of walk will performance over third flow, through turn our key the to to Bryan and indicators, including details Menar,

Bryan Menar

results. Thank surrounding you, some quarter afternoon, our provide third to additional I good Don, would and like everyone. details opportunity this now take to

projections As experiencing determining Don tax The of deferred is growth future subjective growth stated established the during plans September years this The in negative ended valuation and the to factor cumulative three allowance the as continue GAAP loss line. investment XXXX. allowance months XXXX, cumulative full of limits fund the of evidence as to incurred ASC the objective ability valuation on by assets businesses. quarter. our increase was for reduce performance income tax of in a weight the business recorded additional Brink assets if XXX future given the as in strategic such form valuation Company's for status deferred the negative longer Company the has establishment evidence such its earlier, the carrying for two Company's million September present impacted in lines losses value no objective expense of significant net The the onetime is these losses of that expenses XX.X Company to is a for the of subjective to fund the of growth. various past has Such Brink and year to years. tax in be three losses investments recent allowance value outpaced of the of consider factor main The projection and from nine loss evidence, valuation of XX, other most evidence, losses the tax been carrying the allowance indicates had reversed XX, FASB evaluation assets. its of can to growth. our Based in is foreseeable on operating the future. line for operating Company business deferred A a

was quarter. QX revenue Product the quarter a the million, million, for compared revenue to XX.X% down on decrease X.X XX.X Now XXXX. to for

X.X September million, mission a was compared from in reconnaissance $X.X Government exit million, revenue Tier from increase due the The of our quarter to sales hardware X prior X.X increase due increase in million the related million up XX.X% an intelligence, reporting to segment of XXXX. in support increase revenue XX.X XXXX. in a as with line. X.X a million, in XX% This and by were SaaS for Hardware million, segment XX% million Our surveillance of XX.X operating increase services. quarter the annual The compared line Brink, customers. X.X XXXX. QX service to million, our in increase our sales Contract Brink Service recurring base $X.X support driven XXXX. driven million, unfavorable sales versus up XXXX. versus to a were was and million contracts related was with to offset QX was XX, to a SaaS revenue revenue revenue down September traditional to year domestic and from increase installment Brink increase Brink international XX% by business was and in increase by up systems primarily We XX, to increase decrease our XX.X a X.X related QX XXXX hardware December X.X% a Restaurant/Retail compared business

SaaS X.X% to revenue. product XXXX, Don The backlog noting of increase over in of growth As to of was due for in XX.X% XX% year-over-year to the inventory. was $XXX quarter, quarter to due in and contract a In reserves decrease be revenue the compared to to increase SureCheck the performance compared the QX by mentioned, margin compared The XXXX. backlog contract in primarily as QX million is driven increases XX, the for Government in healthy, quarter mix, is trailing increase total X.X. XX.X% product QX rates XXXX. product ISR margin XX.X% margin regards margin product product continues primarily favorable book-to-bill September sales. margin to in Service XX-month for for The XXXX. related XX.X% to a margin to quarter due in in the the are margin in was for

SG&A total operating QX million, XXXX. investigation $X.X Brink reduce $X QX $X.X million, sales XXXX was XXXX, GAAP revenue to business by cost, to Research versus The increase million equity-based adjustments SG&A increasing compensation China versus $X.X million, $X.X expenses. for Brink related SG&A and of while driven Company current marketing Non-GAAP Non-GAAP expenses million million SG&A to line. development million $X.X were by QX $X $X.X include million. Now million in was for and able the in versus was for and conduct offices, and $X.X $X.X our down severance down support future Singapore growth an XXXX. costs. the and QX investments up million to in

provide sheet information and balance cash flow to the Now Company's on position.

September ended of we capitalized XX, in partially ended offset the in XX, $X.X the capitalized $X.X in XXXX, cash planning and costs $X.X the was primarily XX, XX, versus CapEx systems associated and million ended financing September million months driven XXXX. the with activities XXXX, September million million our ended XX, by versus was in versus months infrastructure million software primarily options. resource a in working decrease system $X.X the cash for was by $X In million line September ended used by period loss, implementation XXXX. to our credit period the the Cash in decrease with for stock for same line proceeds exercised million, For by was information same in operations million the of activities from net down a capital XXXX, was associated months $X segment XX, ended for requirements. Restaurant/Retail XXXX, $X.X our of XXXX. costs months enterprise period employee with a platforms, the decrease XXXX. X borrowings million of in used same the investing of provided months XXXX, Non-software with Cash X X operating net $X.X X X used investments related The September $X in from September X months

$X down to of XX XXXX, September $XX.X the days remarks. million, as million of from between as the XX, December balance operations. for of million increase XX% decreased and Accounts from $X.X million to receivable December XXXX XX, This XX our from segment million. increased balance $X.X outstanding days international concludes decreased The were XX XX, XXXX. turns segment from June segment prepared of or $XX.X days Xx of December million of of Inventory September The As $X.X million a was $XX.X days of days inventory of December outstanding XXXX. as sales decrease and Government of Restaurant/Retail Restaurant/Retail September domestic XX, as XXXX. sales XX to XXXX, and was compared an XXXX XXXX. our Government broken receivable days

our directly. issued about in results, can the found earnings just I information today. PAR. earlier third XXXX contact you be interest any for thank your If the questions you Chris' contact quarter want to release Company continued please on have

Operator

and Thank you a today's Ladies wonderful concludes have this for gentlemen, participation, conference. your day. and

You may all now disconnect.

PAR Technology (PAR) 10 Nov 182018 Q3 Earnings call transcript