Q1 2020 Earnings Call

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Ladies and gentlemen, this is the operators today's conference is scheduled to begin momentarily.

Feel that time your life will again be placed on music hold thank you for your patience.

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Good afternoon, My name is Diana and I will be your conference operator today.

This time I would like to welcome everyone to the F. why 2021st quarter Financial results Conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question. During this time simply press Star then.

The one on your telephone keypad, if you would like to withdraw your question first the pound Keith. Thank you at this time I would like to turn the conference over to Mr., Chris Burns you may begin Sir.

Thank you Donna and good afternoon, everyone I hope during these crazy days that everyone is a healthy along with their families.

I'd like to take this opportunity to welcome you today also onto the call for part of 2021st quarter results review.

Complete disclosure of our results today can be found in our press release issued this afternoon as well as in our related form 8-K birds the FCC.

To access the press release in the financial results details. Please see the Investor Relations a new section of our website at www dot protect dotcom.

At this time I'd like to take care of certain detailed in regard to the call today.

Participants on the call should be where the recording the call. This afternoon and it will be available for playback.

Also we are broadcasting the conference call, we had a worldwide web. So please be advised if you ask the question. It will be included in both our life conference and any future use with record.

I'd also like to remind participants that this conference call includes forward looking statements that reflect management's expectation based on currently available data.

However, actual results are subject to future events and uncertainties, especially during these times for example statements relating to our business and financial condition into our expectations are subject to the uncertainties about the future impact of the cobot 19 pandemic and there can be no assurance that the Kobin 18, pandemic will not have a material or adverse effect.

Yes.

Information on this conference call related to projections or other forward looking statements may be relied upon and subject to the safe Harbor statements included in the earnings released this afternoon and in our annual and quarterly filings with the FCC.

Joining me on the call today, it's part CEO and President 70 thing and Brian Minnaar parts Chief Financial Officer.

I'd now like to turn the call over to 70 for the formal remarks portion of the call, which will be followed by general Queuing day.

70.

Thank you, Chris and good afternoon, everyone. Thank you for joining our call today.

All of you and your families are staying healthy and say he's are unprecedented times that we will be taking somewhat of a different approach where color commentary today.

They call will now review our business performance and financial results for the first quarter. We'll also shared with you the impact that accretive virus epidemic had on our business. What we're doing to address the associated challenges how to strength of our business model. This is that for a long term success.

Again in two of your Q1 performance. Our total revenues grew 22.4% to $54.7 million reported a GAAP net loss of $10.9 million and a loss per share 61 cents as compared to a net loss of $2.7 million in a loss per share 17 cents. The same period last year.

On an adjusted basis, the non-GAAP net loss for the quarter $5.1 million and a lot for share 28 cents.

The net loss of $1.5 million in a loss per share of nine cents in Q1 2019.

On the GAAP to non-GAAP adjustments are included in today's press release.

Brian will give additional color the numbers for the quarter.

Now to address the current inspiring our company's addressing the challenges associated with the cold in 19, but the same period intellectual maker in fact based analysis that we've employed for 50 years since part was founded.

We are focused on three thing the health and safety of our key levers anything leadership by continues to sell their customers. Most pressing issue in building long term value to shareholders.

Unique capabilities, including adaptable business model in a in a robust client they have shaped hard leading market position.

Despite the expected near term headwinds for restaurants were serving thousands of essential businesses and their customers as they continue to operate to serve a general public.

Brand promise, it's the this solutions that connect people restaurant, Neil enormous that what we're doing our best to hold true that promise in 2020.

Our customer base has been extremely resilient in this difficult time most of our customers are quick service or fast casual restaurants in a high number approximately 85% have been able to remain open to maintain their operation you try to kind of shirt and delivery, even while interventions are closed.

While the initial impact to the cobot 19 restriction within that would you just looking back at the company 19 restriction our customers same store sales have impacted by as much as 40% versus prior year. However over the last four weeks, we're seeing a rebound in sales for our customers have expanded operations and drive efficiencies and try to pickup and delivery along with limited menus, we just operating hours.

In maximizing stoppable everyday we are seeing close stores start to reopen.

Par entered this crisis in a position of great sense, we ended the quarter with $60 million in cash and cash equivalents in short term investment we feel very comfortable our cash position. In addition, we initiated cost savings plan totaling more than $10 million and savings against our annual plan designed to protect their liquidity flexibility enable us increased investment in growth areas.

Most of our employees have been working from home since the initiation of shelter in place orders in mid March with the exception number operation team that has definitely continue to work on site to continue delivering hardware platform to our global customers.

New York State and Dean par at an essential business do you see the strategic and critical services, we provide the restaurant.

For over 40 years parts service restaurant clients across the globe and time to crisis.

We have long demonstrate our ability to pivot quickly to address our client plus the telling issue and we're demonstrating that agility and need to kind of ours once again.

Now I'd like to turn the call over to our Chief Financial Officer, Brian The NRE for a view of the quarter's financial.

Brian.

Thank you Stephanie and good afternoon, everyone.

I'd now like to take this opportunity to provide some additional details surrounding our first quarter results.

I simply previously stated reported revenues of 54.7 million for the quarter of 22.4% from 44.7 million reported for Q1 2019.

Our net loss was 10.9 million or 61 cents per diluted share for the quarter versus net loss of 2.7 million or 17 cents loss than share for Q1 2019.

Unfavorable year over year results from operations.

Primarily driven by corporate financing charges, including an 8.1 million loss on extinguishment of debt related to the partially purchase.

And 24 notes and an additional 1.8 million of interest expense related to 2024 nodes and in 2026 months.

Operating segment revenue for the three months ended March 31st 2020, or 37.4 million for the restaurant retail segment.

An increase in 27% from 29.6 million recorded Q1 2019.

And 17.3 million for the government reporting segment, an increased 15%.

From a 15.1 million recorded for Q1 2019.

Restaurant retail revenue for Q1 2020 by business line consisted of.

By 2.9 billion for core which included 3.5 million for drive through.

17.5 million for Brent, which included 2.2 million per restaurant magic.

Restaurant retail revenue for choose on 2019 by business line was 18.7 million for core.

9.5 million for Brent and 1.4 million for sure check.

Government revenue for Q1 2020 by business line consisted of.

8.1 billion for Eyesore 8.5 million for mission systems, and point 1 million for product for product sales compared to Q1 2019 revenue.

Business line of 6.3 million Eyesore 8.5 million for mission systems and point Threemillion product sales.

Product revenue for the quarter was 18.6 million up 3.1 million were 20% compared to Q1 2019.

Our hardware sales in the restaurant retail reporting segment rub versus prior year, primarily driven by growth.

Brent and also harbor cells from a new drive through product line.