(State or other jurisdiction of incorporation) |
(Commission file number) |
(I.R.S. employer identification no.) |
(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Item 2.02 | Results of Operations and Financial Condition. |
99.1 | Press Release dated November 5, 2020 of TransAct Technologies Incorporated |
TRANSACT TECHNOLOGIES INCORPORATED |
|||||
By: |
/s/ David B. Peters |
||||
David B. Peters |
|||||
Vice President & Chief Accounting Officer |
•
|
Net Sales:
Net sales for the third quarter of 2020 were $7.3 million, down 38% compared to $11.7 million for the third quarter of 2019. FST net sales for the third quarter of 2020 were $2.3 million, up 20% compared to $2.0 million for the third quarter
of 2019.
|
•
|
Gross Profit:
Gross profit for the third quarter of 2020 was $3.3 million, resulting in gross margin of 45.9%, compared to gross profit of $5.5 million for the third quarter of 2019, which resulted in a 47.5% gross margin.
|
•
|
Operating
income (loss): Operating loss for the third quarter of 2020 was $1.5 million, compared to operating income of $0.3 million for the third quarter of 2019.
|
•
|
Net income
(loss): Net loss for the third quarter of 2020 was $0.9 million, or $0.11 net loss per diluted share, based on 7.5 million diluted weighted average common shares outstanding. Net income for the comparable 2019 period was $0.4
million, or $0.05 net income per diluted share, based on 7.8 million diluted weighted average common shares outstanding.
|
•
|
EBITDA:
EBITDA was negative $1.1 million for the third quarter of 2020, compared to positive EBITDA of $0.5 million for the third quarter of 2019.
|
•
|
Adjusted
EBITDA: Adjusted EBITDA was negative $0.9 million for the third quarter of 2020, compared to positive adjusted EBITDA of $0.7 million for the third quarter of 2019.
|
Bart Shuldman
Chairman and Chief Executive Officer
TransAct Technologies Incorporated
702-388-8180
|
Michael Bowen
ICR, Inc.
Michael.Bowen@icrinc.com
203-682-8299
|
Marc P. Griffin
ICR, Inc.
Marc.Griffin@icrinc.com
646-277-1290
|
TRANSACT TECHNOLOGIES INCORPORATED
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||
(Preliminary and Unaudited)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
(In thousands, except per share amounts)
|
September 30,
|
September 30,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Net sales
|
$
|
7,300
|
$
|
11,686
|
$
|
22,832
|
$
|
34,586
|
||||||||
Cost of sales
|
3,951
|
6,140
|
12,275
|
17,250
|
||||||||||||
Gross profit
|
3,349
|
5,546
|
10,557
|
17,336
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Engineering, design and product development
|
1,445
|
1,048
|
4,197
|
3,328
|
||||||||||||
Selling and marketing
|
1,258
|
1,947
|
4,885
|
5,890
|
||||||||||||
General and administrative
|
2,125
|
2,239
|
6,987
|
6,720
|
||||||||||||
4,828
|
5,234
|
16,069
|
15,938
|
|||||||||||||
Operating (loss) income
|
(1,479
|
)
|
312
|
(5,512
|
)
|
1,398
|
||||||||||
Interest and other income (expense):
|
||||||||||||||||
Interest, net
|
(19
|
)
|
-
|
(41
|
)
|
(13
|
)
|
|||||||||
Other, net
|
116
|
(71
|
)
|
(60
|
)
|
(123
|
)
|
|||||||||
97
|
(71
|
)
|
(101
|
)
|
(136
|
)
|
||||||||||
(Loss) income before income taxes
|
(1,382
|
)
|
241
|
(5,613
|
)
|
1,262
|
||||||||||
Income tax benefit
|
(515
|
)
|
(143
|
)
|
(1,901
|
)
|
(54
|
)
|
||||||||
Net (loss) income
|
$
|
(867
|
)
|
$
|
384
|
$
|
(3,712
|
)
|
$
|
1,316
|
||||||
Net (loss) income per common share:
|
||||||||||||||||
Basic
|
$
|
(0.11
|
)
|
$
|
0.05
|
$
|
(0.49
|
)
|
$
|
0.18
|
||||||
Diluted
|
$
|
(0.11
|
)
|
$
|
0.05
|
$
|
(0.49
|
)
|
$
|
0.17
|
||||||
Shares used in per share calculation:
|
||||||||||||||||
Basic
|
7,548
|
7,470
|
7,533
|
7,464
|
||||||||||||
Diluted
|
7,548
|
7,753
|
7,533
|
7,658
|
||||||||||||
SUPPLEMENTAL INFORMATION – SALES BY MARKET:
(Preliminary and Unaudited)
|
||||||||||||||||
Three months ended
|
Nine months ended
|
|||||||||||||||
(In thousands)
|
September 30,
|
September 30,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Food service technology
|
$
|
2,349
|
$
|
1,951
|
$
|
4,924
|
$
|
4,287
|
||||||||
POS automation and banking
|
742
|
1,514
|
2,781
|
4,435
|
||||||||||||
Casino and gaming
|
2,009
|
5,074
|
8,300
|
16,188
|
||||||||||||
Lottery
|
-
|
95
|
817
|
926
|
||||||||||||
Printrex
|
107
|
296
|
232
|
923
|
||||||||||||
TransAct Services Group
|
2,093
|
2,756
|
5,778
|
7,827
|
||||||||||||
Total net sales
|
$
|
7,300
|
$
|
11,686
|
$
|
22,832
|
$
|
34,586
|
TRANSACT TECHNOLOGIES INCORPORATED
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
(Preliminary and Unaudited)
|
||||||||
September 30,
|
December 31,
|
|||||||
(In thousands)
|
2020
|
2019
|
||||||
Assets:
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
947
|
$
|
4,203
|
||||
Accounts receivable, net
|
4,918
|
6,418
|
||||||
Note receivable
|
100
|
1,017
|
||||||
Inventories
|
12,503
|
12,099
|
||||||
Prepaids and other current assets
|
1,301
|
1,178
|
||||||
Total current assets
|
19,769
|
24,915
|
||||||
Fixed assets, net
|
2,339
|
2,244
|
||||||
Note receivable, net of current portion
|
1,566
|
-
|
||||||
Right-of-use asset
|
3,794
|
2,855
|
||||||
Goodwill
|
2,621
|
2,621
|
||||||
Deferred tax assets
|
4,574
|
2,565
|
||||||
Intangible assets, net
|
634
|
817
|
||||||
Other assets
|
192
|
44
|
||||||
15,720
|
11,146
|
|||||||
Total assets
|
$
|
35,489
|
$
|
36,061
|
||||
Liabilities and Shareholders’ Equity:
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
2,458
|
$
|
2,960
|
||||
Accrued liabilities
|
3,053
|
3,041
|
||||||
Lease liability
|
857
|
945
|
||||||
Deferred revenue
|
479
|
700
|
||||||
Total current liabilities
|
6,847
|
7,646
|
||||||
Long term debt
|
2,173
|
-
|
||||||
Deferred revenue, net of current portion
|
120
|
219
|
||||||
Lease liability, net of current portion
|
3,053
|
2,104
|
||||||
Other liabilities
|
128
|
166
|
||||||
5,474
|
2,489
|
|||||||
Total liabilities
|
12,321
|
10,135
|
||||||
Shareholders’ equity:
|
||||||||
Common stock
|
116
|
115
|
||||||
Additional paid-in capital
|
33,560
|
32,604
|
||||||
Retained earnings
|
21,636
|
25,348
|
||||||
Accumulated other comprehensive loss, net of tax
|
(34
|
)
|
(31
|
)
|
||||
Treasury stock, at cost
|
(32,110
|
)
|
(32,110
|
)
|
||||
Total shareholders’ equity
|
23,168
|
25,926
|
||||||
Total liabilities and shareholders’ equity
|
$
|
35,489
|
$
|
36,061
|
||||
TRANSACT TECHNOLOGIES INCORPORATED
|
RECONCILIATION OF NET (LOSS) INCOME TO EBITDA AND ADJUSTED EBITDA
NON-GAAP FINANCIAL MEASURES
|
(Preliminary and Unaudited)
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
(In thousands)
|
September 30,
|
September 30,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Net (loss) income
|
$
|
(867
|
)
|
$
|
384
|
$
|
(3,712
|
)
|
$
|
1,316
|
||||||
Interest expense, net
|
19
|
-
|
41
|
13
|
||||||||||||
Income tax benefit
|
(515
|
)
|
(143
|
)
|
(1,901
|
)
|
(54
|
)
|
||||||||
Depreciation and amortization
|
263
|
259
|
758
|
747
|
||||||||||||
EBITDA
|
(1,100
|
)
|
500
|
(4,814
|
)
|
2,022
|
||||||||||
Share-based compensation expense
|
231
|
173
|
644
|
559
|
||||||||||||
Adjusted EBITDA
|
$
|
(869
|
)
|
$
|
673
|
$
|
(4,170
|
)
|
$
|
2,581
|
||||||