Author Topic: PAR - PAR Technology Corporation  (Read 9696 times)

walkie518

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Re: PAR - PAR Technology Corporation
« Reply #20 on: December 10, 2018, 07:00:45 AM »
What can ADW really do? I've spoken with Adam and he's sharp, takes big positions, and is loud about them, but I've yet to see him actually affect any change anywhere, especially when dealing with a founder.

I find the whole thing odd. We have an activist saying that Brink is worth $2 billion in 2020 (3x the share price today), but that same activist wants to have the company sold today? Why would you do that? What PE firm looking for a bargain is going to give you say a 100% premium today to make this worthwhile?

We have another firm saying that shares are at least worth $30, but what PE firm is going to want to pay fair value for the assets? I'd see a buyout at $25 maybe, but that's 30% upside for me as a shareholder coupled to a company with no EBITDA, low gross margins, etc. Don't see how that's so asymmetric.

If it were me, I'd be asking for new management and a new board, and get some smart people on it who can build this business.
you don't think Singh fits the bill?

or do you see his appointment as a means to effect that change?

He is a temporary CEO.

I don't think that makes a difference?

Singh was on the board and has experience building.  Even if it's temporary, he will see through the first fund raise and finding his replacement. 


wisowis

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Re: PAR - PAR Technology Corporation
« Reply #21 on: April 10, 2019, 06:19:55 PM »
Market isn't happy they are offering $70 million in convertible notes: https://www.businesswire.com/news/home/20190410005919/en/PAR-Technology-Corporation-Announces-Pricing-70-Million/

I listened to their 2018 year-end conference call and thought it was good: https://edge.media-server.com/m6/p/8kidrzre

Savneet talks about capital allocation, incentives, etc. Andrew from ADW Capital asks some questions after noting "...this [conference call] is going a lot different [better] than the last one."

tripleoptician

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Re: PAR - PAR Technology Corporation
« Reply #22 on: April 10, 2019, 09:38:05 PM »
I bought more today

Been a holder of this company since Voss Capital wrote it up about 2 years ago.
I pared back on the holding once old management (Foley/Sammons) looked like they were going to underfund the Brink opportunity. They ducked out of a conference call having Q and A for having to deal with Wyden asking legitimate questions on their poor capital allocation decisions and not sourcing more capital to speed up the Brink transition.
 
Savneet not only had a good conference call, his background IS SAAS and optimizing capital allocation. His mindset appears quite focused on why Saas/sticky costumer products are one of the optimal businesses to run.
I think this convertible debt deal is a good move because it allows adequate capital to fund the transition to on-board big Tier 1 players onto Brink POS. There is no way to take on a huge # of franchises from a Tier 1 when your staffing for the transition is suboptimal and takes 2-3 years to process them.

Once a Tier 1 has picked Brink, they wont be changing their POS again unless it is woefully underperforming. All signs point to Brink being an above average product with Tier 1 relationships from its legacy hardware business and operating on a PC/Windows infrastructure like all the entrenched Tier 1 s will be on.

As a CSU long, I really appreciate someone like Savneet at the helm who has studied Leonard and appears thoughtful on capital allocation. This deal will prove fruitful in the long term.

whistlerbumps

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Re: PAR - PAR Technology Corporation
« Reply #23 on: April 11, 2019, 11:39:09 AM »
Agreed and bought more as well.  Converts almost always hammer the price in the ST due to convert buyers hedging.  This debt allows them to get out from the restrictive credit facility and gives them capital to more aggressively build Brink.  Signing more Tier 1s for Brink will add tremendous value and they were resource constrained previously so I believe this is a very good deal.

whatdadil9

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Re: PAR - PAR Technology Corporation
« Reply #24 on: April 11, 2019, 04:12:14 PM »
4m shares traded in two days. Thats 4x the most ever traded in Company's history on super positive news.

On 8300 locations installed and 2k ARPU that's 17mm ARR. DQ is 6k units. Its our understanding that ARPU on DQ is like 280 a month and they are giving 5k subsidies to adopt brink. Coca cola is also giving 2,500 a year for 10 years.. Pretty wild. So 3400 per year ARPU x 6k units is 20.4m SaaS right there... I think realistically this thing can be 25k restaurants installed year end 2020 at 3k ARPU.. Upside to payments. Upside to M&A. Stock flat for 9months...80mm of capital and outsider CEO too good to be true...

wisowis

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Re: PAR - PAR Technology Corporation
« Reply #25 on: April 27, 2019, 07:10:17 AM »

lotsofguts

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Re: PAR - PAR Technology Corporation
« Reply #26 on: April 27, 2019, 12:10:45 PM »
I haven't looked deeply into PAR but I think what's interesting about PAR is that it seems to be more focused on restaurant chains.

The problem with many restaurant POS systems is the churn rate which is naturally high as ~60% of restaurants fail within the first 3 years. By focusing on established chains, I'd expect the churn rate to be much lower (higher LTV) but it comes at the expense of a much longer sales cycle.

cameronfen

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Re: PAR - PAR Technology Corporation
« Reply #27 on: April 27, 2019, 12:52:29 PM »
One question i had regarding chains is will they use Brinks payment platform?  My guess is large chains have robust payment platforms already compared to small chains so using the conversion rate for a company like Toast and applying to brink may be highly overestimating.  I havent researched this so I'm curious if anyone else has any information. 

walkie518

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Re: PAR - PAR Technology Corporation
« Reply #28 on: April 29, 2019, 05:02:50 PM »
One question i had regarding chains is will they use Brinks payment platform?  My guess is large chains have robust payment platforms already compared to small chains so using the conversion rate for a company like Toast and applying to brink may be highly overestimating.  I havent researched this so I'm curious if anyone else has any information.
Right, but GRUB can provide that too and delivery services...why not sign up for Caviar, Doordash, or Ubereats?

Food is fragmented outside of the chains and this business has growing competition, but the market is growing rapidly and PAR has been installing an ever-increasing number of kiosks...

cameronfen

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Re: PAR - PAR Technology Corporation
« Reply #29 on: April 29, 2019, 05:51:12 PM »
One question i had regarding chains is will they use Brinks payment platform?  My guess is large chains have robust payment platforms already compared to small chains so using the conversion rate for a company like Toast and applying to brink may be highly overestimating.  I havent researched this so I'm curious if anyone else has any information.
Right, but GRUB can provide that too and delivery services...why not sign up for Caviar, Doordash, or Ubereats?

Food is fragmented outside of the chains and this business has growing competition, but the market is growing rapidly and PAR has been installing an ever-increasing number of kiosks...

I'm not sure im following.  Part of the bull thesis is proving a PoS payments service for restaraunts through Brink for Brink restaruants.  This is where the bulk of the valuation comes from in Brink's case correct?  My point is its easier for Toast to convert their PoS customers to payments because their target restauant is an independent operator with likely insufficient playment platform.  However it's likely that large chains will already have a payments platform they are confortable with and will not switch to Brink payements unless their payment service disrupts the payment industry in the same way their cloud PoS was an advancement over earlier hardware based PoS software (which seems unlikely as cloud/software based payment providers like square exist already).