PAR Technology Corporation

Good afternoon. My name is Dai Hanna and I will be your conference operator today. At this time, I would like to welcome everyone to the FY 2020 first 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 number one on your telephone keypad. If you would like to withdraw your question, press the pound key. Thank you. At this time, I would like to turn the conference over to Mr. Chris Byrnes. You may begin, sir.

Thank you, Diana, and good afternoon, everyone. I hope during these crazy days that everyone is safe, healthy, along with their families. I'd like to take this opportunity to welcome you today also to the call for part of 2020 first 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 8K to the SEC. To access the press release and the financial result details, please see the investor relations and news section of our website at www.partech.com. At this time, I'd like to take care of certain details in regards to the call today. Participants on the call should be aware that we're recording the call this afternoon, and it will be available for playback. Also, we are broadcasting the conference call via the World Wide Web, so please be advised, if you ask a question, it will be included in both our live conference and any future use of the recording. 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 and to our expectations are subject to the uncertainties about the future impact of the COVID-19 pandemic. And there can be no assurance that the COVID-19 pandemic will not have a material or adverse effect on our business. The information on this conference call related to projections or other forward-looking statements may be relied upon and subject to the safe harbor statement included in the earnings release this afternoon and in our annual and quarterly filings with the SEC. Joining me on the call today is PAR's CEO and President, Savneet Singh, and Bryan Menar, PAR's Chief Financial Officer. I'd now like to turn the call over to Savneet for the formal remarks portion of the call, which will be followed by general Q&A. Savneet?

Thank you, Chris, and good afternoon, everyone. Thank you for joining our call today. I hope that all of you and your families are staying healthy and safe. These are unprecedented times, so we will be taking somewhat of a different approach to our call commentary today. On today's call, we'll not only review our business performance and financial results for the first quarter, but we'll also share with you the impact that the coronavirus pandemic has had on our business, what we are doing to address the associated challenges, and how the strength of our business model positions us for long-term success. To begin and to review our Q1 performance, our total revenues grew 22.4% to $54.7 million and reported a gap net loss of $10.9 million and a loss per share of 61 cents. as compared to a net loss of $2.7 million in a loss per share of 17 cents in the same period last year. On an adjusted basis, the non-GAAP net loss for the quarter was $5.1 million in a loss per share of 28 cents versus a net loss of $1.5 million in a loss per share of 9 cents in Q1 2019. Details on the GAAP to non-GAAP adjustments are included in today's press release. Bryan will give additional color on the numbers for the quarter. Now to address the current business environment. Our company is addressing the challenges associated with COVID-19 with the same seriousness, intellectual rigor, and fast-paced analysis that we've employed for over 50 years since PAR was founded. We are focused on three things, the health and safety of our team members, demonstrating leadership by continuing to solve our customers' most pressing issues, and building long-term value to shareholders. Our unique capabilities include an adaptable business model and a robust client base that has shaped PAR's leading market position. Despite the expected near-term headwinds for restaurants, we are serving thousands of essential businesses and their customers as they continue to operate to serve the general public. Our brand promise is to deliver solutions that connect people to the restaurants, meals, and moments they love. We're doing our best to hold true to 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, and a high number, approximately 85%, have been able to remain open and maintain their operations through drive-thru, counter service, and delivery, even while in-store dining rooms are closed. With the initial impact of the COVID-19 restrictions, our customers' same-store sales have been impacted by as much as 40% versus prior year. However, over the last four weeks, we are seeing a rebound in sales for our customers as they streamline their operations and drive efficiencies with drive-through pickup and delivery, along with limited menus, reduced operating hours, and maximizing staff levels. Every day, we are seeing closed stores start to reopen. PAR entered this crisis in a position of great strength. We ended the quarter with $60 million in cash and cash equivalents in short-term investments. We feel very comfortable with our cash position. In addition, we initiated a cost savings plan totaling more than $10 million in savings against our annual plan, designed to protect our liquidity flexibility and enable us to increase investment and growth areas of our business. Most of our employees have been working from home since the initiation of shelter-in-place orders in mid-March, with the exception of our operations team that have valiantly continued to work on-site to continue delivering hardware platforms to our global customers. New York State has deemed PARA as an essential business due to the strategic and critical services we provide to restaurants. For over 40 years, PARA has serviced restaurant clients across the globe in times of crisis. We have long demonstrated our ability to pivot quickly to address our clients' most compelling issues, and we are demonstrating that agility amid the coronavirus once again. Now I'd like to turn the call over to our Chief Financial Officer, Bryan Menar, for a review of the quarter's financials.