PAR(US:PAR)2024-08-08 20:06Company Overview - As of August 6, 2024, PAR Technology Corporation has 36,283,935 shares of common stock outstanding[2]. - The company is classified as a Large Accelerated Filer, indicating a significant market presence and regulatory compliance[2]. Financial Performance - Total revenues for the three months ended June 30, 2024, were $78,150,000, an increase of 12.3% compared to $69,529,000 for the same period in 2023[12]. - Subscription service revenue increased by 47.8% to $44,872,000 for the three months ended June 30, 2024, compared to $30,372,000 in the prior year[12]. - Gross margin for the six months ended June 30, 2024, was $58,086,000, representing a 45.5% increase from $40,098,000 for the same period in 2023[12]. - The company reported a net income of $54,190,000 for the three months ended June 30, 2024, compared to a net loss of $19,702,000 for the same period in 2023[12]. - Total revenues for the six months ended June 30, 2024, were $148.2 million, a 7.3% increase from $138.1 million in the same period of 2023[91]. - The company reported a net income from discontinued operations of $79.9 million for the six months ended June 30, 2024, compared to $5.3 million in the same period last year, indicating a significant increase[91]. Cash and Assets - Cash and cash equivalents increased significantly to $114,928,000 as of June 30, 2024, from $37,183,000 at December 31, 2023[10]. - Total assets grew to $1,056,684,000 as of June 30, 2024, up from $802,606,000 at the end of 2023[10]. - The company’s goodwill increased to $623,875,000 as of June 30, 2024, compared to $488,918,000 at December 31, 2023[10]. - Total cash held on behalf of customers increased to $12.8 million as of June 30, 2024, from $10.2 million on December 31, 2023[24]. Acquisitions and Strategic Initiatives - The company is actively pursuing acquisitions, including Stuzo Holdings, LLC and TASK Group Holdings Limited, to expand its service capabilities[7]. - The Stuzo Acquisition was completed for a total consideration of approximately $170.5 million in cash and $19.2 million in stock, aimed at expanding the Company's presence in the convenience store market[38]. - The acquisition of TASK Group Holdings Limited was completed for a total consideration of $245.5 million, enhancing the company's service offerings[81]. Operational Challenges - PAR is facing risks related to macroeconomic trends, including inflation and geopolitical events, which could impact its financial performance[7]. - The company is navigating challenges related to supply chain management and manufacturing disruptions, which could affect product availability[7]. Internal Controls and Compliance - The company emphasizes the importance of maintaining effective internal controls over financial reporting to ensure accuracy[8]. - The report includes certifications from the Principal Financial Officer and Principal Executive Officer as per the Securities Exchange Act of 1934[31.2][32.1][32.2]. Future Outlook - PAR's management is focused on enhancing product offerings and market strategies to improve future operations and financial results[6]. - The company plans to continue focusing on market expansion and new product development to drive future growth[131]. Revenue Breakdown - Revenue from hardware for the six months ended June 30, 2024, was $38.3 million, compared to $53.2 million for the same period in 2023, indicating a decline of 28.0%[37]. - Subscription service revenues increased to $83.3 million, up $24.9 million or 42.7% from $58.3 million in the prior year, driven by Engagement Cloud services and the Stuzo Acquisition[98]. Expenses and Liabilities - General and Administrative (G&A) expenses for the six months ended June 30, 2024, were $50.5 million, an increase of $15.1 million or 42.8% compared to $35.4 million in the prior year[110]. - The company incurred capital expenditures of $407 for the six months ended June 30, 2024, compared to $3,023 in the same period of 2023[18]. Stock and Financing - The company raised approximately $200 million through a private placement of common stock at a 10% discount, resulting in net proceeds of approximately $194.4 million after issuance costs[62]. - The company secured a $90.0 million Credit Facility to finance the TASK acquisition, maturing by July 5, 2029[80].