(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 March 9, 2021 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 fourth quarter of 2020 were $7.8 million, down 30% compared to $11.2 million for the fourth quarter of 2019.
|
•
|
FST
Recurring Revenue: FST recurring revenue for the fourth quarter of 2020 was $0.9 million, up 37% compared to $0.7 million for the fourth quarter of 2019.
|
•
|
Gross Profit:
Gross profit for the fourth quarter of 2020 was $2.4 million, resulting in gross margin of 30.6%, compared to gross profit of $4.6 million for the fourth quarter of 2019, which resulted in a 41.2% gross margin.
|
•
|
Operating
loss: Operating loss for the fourth quarter of 2020 was $(2.7) million, compared to operating loss of $(1.1) million for the fourth quarter of 2019.
|
•
|
Net loss:
Net loss for the fourth quarter of 2020 was $(1.9) million, or $(0.22) net loss per share, based on 8.7 million weighted average common shares outstanding. Net loss for the comparable 2019 period was $(0.8) million, or $(0.11) net loss per
share, based on 7.5 million weighted average common shares outstanding.
|
•
|
EBITDA:
EBITDA loss was $(2.0) million for the fourth quarter of 2020, compared to an EBITDA loss of $(0.3) million for the fourth quarter of 2019.
|
•
|
Adjusted
EBITDA (loss): Adjusted EBITDA loss was $(1.7) million for the fourth quarter of 2020, compared to adjusted EBITDA loss of $(0.1) million for the fourth quarter of 2019.
|
•
|
Net Sales:
Net Sales for the 2020 year were $30.6 million, down 33% compared to $45.7 million for 2019.
|
•
|
FST
Recurring Revenue: FST recurring revenue for the 2020 year was $3.8 million, up 96% compared to $1.9 million for 2019.
|
•
|
Gross Profit:
Gross profit for the 2020 year was $12.9 million, resulting in gross margin of 42.3%, compared to gross profit of $21.9 million in 2019, which resulted in 47.9% gross margin.
|
•
|
Operating
income (loss): Operating loss for 2020 was $(8.2) million, compared to operating income of $0.3 million for 2019.
|
•
|
Net income
(loss): Net loss for 2020 was $(5.6) million, or $(0.72) net loss per share, based on 7.8 million weighted average common shares outstanding. Net income for 2019 was $0.5 million, or $0.07 net income per share, based on 7.7 million
diluted weighted average common shares outstanding.
|
•
|
EBITDA: EBITDA
loss was $(6.8) million for the full year 2020, compared to EBITDA of $1.7 million for the full year 2019.
|
•
|
Adjusted
EBITDA (loss): Adjusted EBITDA loss was $(5.9) million for full year 2020, compared to adjusted EBITDA of $2.4 million for full year 2019.
|
•
|
Paid
Terminals: Paid terminals in the market were 5,688 at December 31, 2020, compared to 2,750 as of December 31, 2019, an increase of 107%.
|
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
|
Year Ended
|
|||||||||||||||
(In thousands, except per share amounts)
|
December 31,
|
December 31,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Net sales
|
$
|
7,763
|
$
|
11,162
|
$
|
30,595
|
$
|
45,748
|
||||||||
Cost of sales
|
5,391
|
6,563
|
17,666
|
23,813
|
||||||||||||
Gross profit
|
2,372
|
4,599
|
12,929
|
21,935
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Engineering, design and product development
|
1,506
|
1,065
|
5,703
|
4,393
|
||||||||||||
Selling and marketing
|
1,259
|
2,143
|
6,144
|
8,033
|
||||||||||||
General and administrative
|
2,268
|
2,446
|
9,255
|
9,166
|
||||||||||||
5,033
|
5,654
|
21,102
|
21,592
|
|||||||||||||
Operating (loss) income
|
(2,661
|
)
|
(1,055
|
)
|
(8,173
|
)
|
343
|
|||||||||
Interest and other (expense) income:
|
||||||||||||||||
Interest, net
|
(11
|
)
|
2
|
(52
|
)
|
(11
|
)
|
|||||||||
Other, net
|
116
|
158
|
56
|
35
|
||||||||||||
105
|
160
|
4
|
24
|
|||||||||||||
(Loss) income before income taxes
|
(2,556
|
)
|
(895
|
)
|
(8,169
|
)
|
367
|
|||||||||
Income tax benefit
|
(638
|
)
|
(95
|
)
|
(2,539
|
)
|
(149
|
)
|
||||||||
Net (loss) income
|
$
|
(1,918
|
)
|
$
|
(800
|
)
|
$
|
(5,630
|
)
|
$
|
516
|
|||||
Net (loss) income per common share:
|
||||||||||||||||
Basic
|
$
|
(0.22
|
)
|
$
|
(0.11
|
)
|
$
|
(0.72
|
)
|
$
|
0.07
|
|||||
Diluted
|
$
|
(0.22
|
)
|
$
|
(0.11
|
)
|
$
|
(0.72
|
)
|
$
|
0.07
|
|||||
Shares used in per share calculation:
|
||||||||||||||||
Basic
|
8,704
|
7,470
|
7,827
|
7,466
|
||||||||||||
Diluted
|
8,704
|
7,470
|
7,827
|
7,677
|
||||||||||||
SUPPLEMENTAL INFORMATION – SALES BY MARKET:
(Preliminary and Unaudited)
|
||||||||||||||||
Three months ended
|
Year ended
|
|||||||||||||||
(In thousands)
|
December 31,
|
December 31,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Food service technology
|
$
|
2,810
|
$
|
1,817
|
$
|
7,734
|
$
|
6,104
|
||||||||
POS automation and banking
|
989
|
1,323
|
3,770
|
5,758
|
||||||||||||
Casino and gaming
|
2,679
|
5,341
|
10,979
|
21,529
|
||||||||||||
Lottery
|
-
|
365
|
817
|
1,291
|
||||||||||||
Printrex
|
68
|
243
|
300
|
1,166
|
||||||||||||
TransAct Services Group
|
1,217
|
2,073
|
6,995
|
9,900
|
||||||||||||
Total net sales
|
$
|
7,763
|
$
|
11,162
|
$
|
30,595
|
$
|
45,748
|
TRANSACT TECHNOLOGIES INCORPORATED
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
(Preliminary and Unaudited)
|
||||||||
December 31,
|
December 31,
|
|||||||
(In thousands)
|
2020
|
2019
|
||||||
Assets:
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
10,359
|
$
|
4,203
|
||||
Accounts receivable, net
|
3,377
|
6,418
|
||||||
Note receivable
|
100
|
1,017
|
||||||
Inventories, net
|
11,286
|
12,099
|
||||||
Prepaid income taxes
|
2,409
|
180
|
||||||
Prepaids and other current assets
|
644
|
998
|
||||||
Total current assets
|
28,175
|
24,915
|
||||||
Fixed assets, net
|
1,950
|
2,244
|
||||||
Note receivable, net of current portion
|
1,584
|
-
|
||||||
Right-of-use asset
|
3,618
|
2,855
|
||||||
Goodwill
|
2,621
|
2,621
|
||||||
Deferred tax assets
|
2,939
|
2,565
|
||||||
Intangible assets, net
|
583
|
817
|
||||||
Other assets
|
777
|
44
|
||||||
14,072
|
11,146
|
|||||||
Total assets
|
$
|
42,247
|
$
|
36,061
|
||||
Liabilities and Shareholders’ Equity:
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
1,691
|
$
|
2,960
|
||||
Accrued liabilities
|
3,665
|
3,041
|
||||||
Lease liability
|
837
|
945
|
||||||
Deferred revenue
|
504
|
700
|
||||||
Total current liabilities
|
6,697
|
7,646
|
||||||
Long term debt
|
2,173
|
-
|
||||||
Deferred revenue, net of current portion
|
111
|
219
|
||||||
Lease liability, net of current portion
|
2,864
|
2,104
|
||||||
Other liabilities
|
166
|
166
|
||||||
5,314
|
2,489
|
|||||||
Total liabilities
|
12,011
|
10,135
|
||||||
Shareholders’ equity:
|
||||||||
Common stock
|
130
|
115
|
||||||
Additional paid-in capital
|
42,536
|
32,604
|
||||||
Retained earnings
|
19,718
|
25,348
|
||||||
Accumulated other comprehensive loss, net of tax
|
(38
|
)
|
(31
|
)
|
||||
Treasury stock, at cost
|
(32,110
|
)
|
(32,110
|
)
|
||||
Total shareholders’ equity
|
30,236
|
25,926
|
||||||
Total liabilities and shareholders’ equity
|
$
|
42,247
|
$
|
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
|
Year Ended
|
|||||||||||||||
(In thousands)
|
December 31,
|
December 31,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Net (loss) income
|
$
|
(1,918
|
)
|
$
|
(800
|
)
|
$
|
(5,630
|
)
|
$
|
516
|
|||||
Interest expense (income), net
|
11
|
(2
|
)
|
52
|
11
|
|||||||||||
Income tax benefit
|
(638
|
)
|
(95
|
)
|
(2,539
|
)
|
(149
|
)
|
||||||||
Depreciation and amortization
|
584
|
624
|
1,342
|
1,371
|
||||||||||||
EBITDA
|
(1,961
|
)
|
(273
|
)
|
(6,775
|
)
|
1,749
|
|||||||||
Share-based compensation expense
|
232
|
133
|
876
|
692
|
||||||||||||
Adjusted EBITDA
|
$
|
(1,729
|
)
|
$
|
(140
|
)
|
$
|
(5,899
|
)
|
$
|
2,441
|
|||||