PAR Technology Corporation

Transcription

1 PAR Technology Corporation

2 Safe Harbor Disclosure 2 This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of Forward-looking statements appear throughout this presentation, including express or implied forward-looking statements relating to our expectations regarding anticipated financial performance, customer and product opportunities, and assumptions as to future events. Forwardlooking statements are subject to a variety of risks and uncertainties, many of which are beyond the Company s control, that could cause actual results to differ materially from those contemplated in these statements. Factors that could cause actual results to differ materially, include delays in new product development and/or product introduction, changes in customer product and service demands, concentration of revenues from a small group of customers, product and service competition, risks associated with our ongoing internal investigation into possible violations of the FCPA and similar laws, including sanctions, fines or remedial measures that may be imposed by the DOJ or SEC, additional expenses related to remedial measures, risks associated with our identified material weakness in internal control over financial reporting and any other failure to maintain effective internal controls, and the other factors discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

3 PAR Technology Corporation 3 PAR Technology Corporation (NYSE: PAR) Restaurant/Retail Management Technology Cloud Software Hardware & Peripherals Integration Services Lifecycle Support Government Technology Intelligence Solutions Mission Systems Integration Services

4 Who is PAR? 4 $229M 2016 Revenue 400,000+ Terminals Deployed 30,000+ Software Locations 18,000+ SureCheck Devices, IoT 1,000 PARtners (employees) 110 Countries

5 PAR Key Facts 5 NYSE Company Significant growth in Annual Recurring Revenues with New Cloud Solutions Recent Realignment of Restaurant Technology Business and Upcoming New ERP system will produce significant annual operating savings Divested underperforming business unit November 2015 Appointed new CEO April 2017, New CFO January 2017

6 PAR s Core Competencies 6 Food & Beverage Management Technology PAR Technology Corporation (NYSE: PAR) Government Technology IoT Cloud Digital Restaurant/Retail Technology Management 35+ year relationships Restaurant Grocery Contract Food & Distribution Global Services Infrastructure Technology Innovation Experience/Deep Market Knowledge Relationships Customer Success & Satisfaction Algorithm development Intelligence Solutions Mission Systems 48+ Year Relationship Department of Defense Global Services Infrastructure

7 PAR s Technology Transfer 7 Algorithms Micro Processors Cloud IoT

8 How you should know PAR World Class Customers! HARDWARE & SERVICES BRINK SOFTWARE PIXELPOINT SOFTWARE SURECHECK WORKFORCE EFFICIENCY/ FOODSAFETY GOVERNMENT CONTRACTS

9 Restaurant Management Technology Market Overview 9 North America, 1,000,000 Restaurants Globally 73% plan to upgrade store technology in 2017 * Concepts Quick Serve / Fast Casual, 60% Quick Serve / Fast Casual All Others Rest of World Rest of World, 5,500,000 North America Segments QSR Bar/Nightclub ISV FC Grocery Table Food Distribution Casual Contract Food

10 Workforce Efficiency Target Market Overview 10 Targeted Global Addressable Market Food Distribution, 30,000 Grocery, 75,000 Restaurant, 1,256,000 Contract Food/Food Service, 1,475,500 Grocery Restaurant Contract Food/Food Service Food Distribution Segments Grocery Restaurant Food Service Contract Food/ Food Service

11 Evolution and Transformation Strategic Framework 11 Improve Extend Transform Diversify customer base by penetrating lower tier restaurant markets and retail/grocer segment with Cloud software offerings Diversify to Dominate Elevate the Customer Experience Raise the Bar Increase recurring software and associated revenues Migrating to Software as a Service (SaaS) model Exploiting Internet of Things (IoT) Mobile Solutions Maintain and grow installed base of Tier 1 restaurant chains

12 Restaurant Retail Solutions 12

13 Restaurant Technology Exploiting the Cloud 13 PAR s Brink POS is a Cloud based restaurant management solution specifically designed for fast casual and quick service chains. Brink uses cutting edge technology to track sales, enter in-store and online orders, implement effective customer loyalty programs, and manage kitchen operations. All for a monthly subscription price.

14 Recent Trends in our Restaurant Technology Business 14 Brink POS Driving New Customer Wins in non-traditional Markets Predominantly Fast Casual (Fastest Growing Segment in Restaurants) Software Related Revenues Grew 44% in the last reported quarter Pic here Recurring Revenue now makes up 18% of Restaurant Business Total Diversification Strategy Gaining Traction

15 Brink Growth Sites (Est) 2018 (Est) Sites

16 Recent Brink New Customer Wins store Hamburger Concept Deploying Complete PAR solution Software, POS Terminals, Tablets and Lifecycle Support 500 store Sandwich Concept founded in Kingston, Ontario Deploying Brink POS Software to US Restaurants 67 store Tex Mex Fast Casual concept based in Midwest Deploying Brink POS Software 122 store BBQ concept based in the southeast US Deploying Software, PAR POS Terminals and PAR Tablets

17 PAR s Workforce Efficiency Cloud Solution 17

18 The Competition 18

19 Advantage of SureCheck 19 Drivers of Adoption Workforce and Task Management Multi-Channel Support Operational Efficiencies and Cost Reductions Food Safety & Quality Elimination of Food Waste Trust SureCheck is deployed in over 6000 locations And operating in network of 90+ stores

20 SureCheck Growth Devices (est)

21 Recent SureCheck Customer Wins (#PARwins) 21 High End Grocery Store Chain with 28 locations concentrated in the Midwest, and principally Minnesota. Lunds & Byerlys has an unwavering focus on exceeding expectations through extraordinary food, exceptional service and passionate expertise. A privately owned company operating 21 stores throughout Wisconsin. Festival Foods is dedicated to serving their communities by providing outstanding service and a quality assured selection of food and products

22 What PAR also provides Hardware Solution 22 EverServ 8000 Reshoring of Product -- Introduced family of Mobile POS devices SureCheck Advantage iot

23 PAR Customer Services 23

24 PAR Customer Services 24 Professional Services Technical expertise and industry experience to provide the highest level of service and support throughout the deployment process System Maintenance Support all PAR hardware and software as well as several thirdparty hardware and software applications Help Desk A highly experienced team of passionate professionals are on call 24x7x365 to troubleshoot system issues to resolution Remote Care Remotely manages your information technology (IT) infrastructure such as POS terminals and workstations Managed Services Relieves an organization of the burden of managing and supporting their own IT infrastructure Account Management Highly skilled professionals who help ensure that your issues are resolved quickly by proactively facilitating support services

25 Government Solutions 25

26 PAR s Government Business 26 PAR Provides Essential Services and Solutions for National Defense and Intelligence Mission Systems Significant backlog at end Q1 2017= $113M Annualized Revenues Approx. $70M Margin Model Shifting Higher with ISR Contracts Intelligence Solutions

27 Trends and Strategic Initiatives 27

28 Strong Balance Sheet -- Financial Condition as of 12/31/16 28 CASH ON HAND $9M OPERATING CASH FLOW $11M WORKING CAPITAL $35.8M LONG TERM DEBT $0.4M SHAREHOLDERS EQUITY $70.2M

29 Last Reported Quarter Q and YTD Q Revenues -- $65.8Million 19.1% increase from Q Adjusted Net Income -- $2.2 Million vs. $925,000 reported in 2016 Adjusted Earnings Per Share -- $0.14 vs. $0.06 in the same period one year earlier Fiscal Year 2016 Revenues -- $229.7 Million Adjusted Net Income -- $5.4 Million Adjusted Earnings Per Share -- $0.34

30 Recent Trends in our Business Q1 Revenues Grew 19% in 2017 vs (Tier 1 hardware project in Q1) $55.3M $65.9M 0 In Thousands

31 Recent Trends in our Business 31 Adjusted Operating Income from Continuing Operations Q4 & Q1 2,500 2,000 1,500 1, ,000 In Thousands Q Q Q Q1 2017

32 PAR Growth Drivers 32 Key Drivers Complete solution provider for Restaurants & Retail Software + Hardware + Services Native Cloud applications Recurring Revenue Growth Annuitizing Business Global Sales & Service infrastructure Government business 40+ years of profitable growth delivering Intel solutions Higher defense spending expected under Trump Administration

33 Takeaways 33 Cloud Solutions upcycle in full swing Aggressive growth targets for Brink Doubling installs in 2017 to 5K Doubling again to 10K installs by end of 2018 Providing affordable solutions and technologies aligned with customer priorities Focused on satisfying customers growing revenues, margins and EPS Delivering predictable and consistent results Realignment of Restaurant Business and New ERP System will yield significant savings Government Services business is solid Corporate asset with strategic possibilities

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