|By Marketwired .||
|May 15, 2014 09:16 AM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 05/15/14 -- Broadview Capital Management sent the following letter to the Board of Directors of PAR Technology Corporation yesterday requesting direct shareholder input into filling the soon to be vacant board seats and the expeditious formation of a strategic review committee.
Below is the full text of Broadview Capital Management's letter to the Company:
May 14, 2014
Dr. John Sammon Mr. Ron Casciano Board of Directors PAR Technology Corp.
As long-term shareholders of PAR Technology Corporation ("PAR"), Broadview Capital Management is deeply frustrated with the Company's lack of progress in monetizing its massive research & development spending or justifying its conglomerate-like structure. It is Broadview's belief that these two factors are most responsible for a stock price that languishes far below any reasonable estimate of PAR's true intrinsic value. We simply can no longer blame this poor performance on an inefficient or indifferent market.
Years of heightened spending have yielded far too little in the way of tangible returns. Promising technologies such as SureCheck® and ATRIO® from years past remain just that - promising, yet not yielding anything meaningful for shareholders. Furthermore, PAR has taken no further steps since its divestment of the LMS business in June of 2012 to simplify the company's conglomerate structure.
At a time when comparable businesses in hospitality technology are commanding aggressive multiples to revenue and EBITDA, PAR's share price is struggling barely above book value. We have lost faith that this situation will improve under the current direction. Long-suffering shareholders deserve a board of directors that is willing to take dramatic steps to close the gap between the share price and the company's private market value. The time has come for PAR to be managed as a true public company for the benefit of all shareholders.
The announced departure of the three independent board members provides the opportunity for true and substantive change. We encourage the company to re-constitute its board of directors with three new members mutually agreed upon by the company and concerned shareholders. Furthermore, we would ask that once this new board is formed it commence immediately with the creation of a committee to review PAR's strategic alternatives. In our view, such a review should begin with a fulsome analysis of the merits of a sale of all or parts of the Company.
From our recent conversations, we believe an appropriate board capable of carrying out a strategic review process can be constructed in short order without undue animosity or more aggressive shareholder activism.
We thank you for your attention to this letter and look forward to your response.
Lee Matheson Anthony Hammill Portfolio Manager Portfolio Manager
Broadview Capital Management Inc. as portfolio manager of the Broadview Dark Horse L.P., and its principals control roughly 333,500 shares of PAR Technology Corp. representing 2.2% of the current shares outstanding.