TransAct Technologies reports 2015 4Q and full year results

Highlights include:

Reports 2015 Fourth Quarter Revenue of $12.1 Million and $0.07 GAAP Diluted EPS
2015 Fourth Quarter Adjusted Diluted EPS Increases 133% to $0.07 from $0.03
2015 Full-Year Revenue Rises 12% to $59.7 Million
2015 Full-Year GAAP Diluted EPS of $0.39
Adjusted Diluted EPS for 2015 Full Year Rises to $0.54 from $0.13

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For the 2015 full year, we nearly doubled sales of our AccuDate food safety terminals and generated consistent market share gains in our domestic casino and gaming printer business, saidBart Shuldman, Chairman and Chief Executive Officer of TransAct.

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Bart Shuldman, Chairman and Chief Executive Officer of TransAct, commented, “TransAct’s fourth quarter financial results again benefitted from the diversification of our product portfolio to include higher margin products that address new market opportunities. As a result, the 160 basis point improvement in fourth quarter gross margin more than offset a slight decline in net sales and led to an over two-fold increase in adjusted operating income, a 50% increase in adjusted EBITDA, and a 133% rise in adjusted diluted EPS compared to the fourth quarter of 2014. For the 2015 full year, we nearly doubled sales of our AccuDate food safety terminals and generated consistent market share gains in our domestic casino and gaming printer business. Our focus on and success with sales execution, combined with our prudent management of costs and the increase in gross margin led to a 12% increase in 2015 full year sales, solid year-over-year increases in adjusted operating income and adjusted EBITDA, and a nearly four-fold increase in adjusted net income.

“Restaurant and food service operators are increasingly recognizing the unique functionality and value proposition of our AccuDate product lineup as reflected in the consistent sales growth of our AccuDate 9700, including a substantial recent rollout with a major quick service chain operation, and growing sales of our AccuDate PRO following its introduction in May 2015. Reflecting this interest, our AccuDate terminals are generating consistent sales momentum; with sales increasing sequentially every quarter in 2015 and full year sales almost double what they were in 2014. Given this success and momentum, we continue to devote resources towards further development and innovation in our AccuDate portfolio as we focus on being the product leader in this attractive growth market by offering solutions that address opportunities across the global restaurant and foodservice industry. Our food safety terminal business is poised to generate near and long-term growth including an opportunity to add an attractive recurring revenue business component to the business line.

“In our casino and gaming business, we remain focused on the growing number of opportunities for our Epicentral promotion and bonusing system while further expanding our domestic casino printer market share. The features and reliability of our Epic® gaming printers and our commitment to the highest levels of customer support are valued by operators as reflected in the 40% year-over-year increase in domestic casino printer sales in the 2015 fourth quarter. Epicentral, an easy to use solution that allows casino operators to directly target their players by printing coupons and promotions in real-time at the gaming device, helping drive increased player visits and incremental play, is also gaining traction with casino operators. Epicentral recently went live on approximately 1,900 electronic gaming devices at Foxwoods Resort Casino as part of their new FoxPerx slot rewards program and we are delighted to aid this valued customer in their efforts to connect even more closely with their guests in order to grow their business.

“We also expect to benefit from our recent agreement to integrate Epicentral with Aristocrat’s Oasis 360 slot management system. With the technical integration now complete, we are working closely with Aristocrat’s sales team to ensure we collectively optimize their extensive reach as they begin to demonstrate the features and functionality made possible by this agreement to their large North American gaming operator customer base.”

Mr. Shuldman concluded, “TransAct has built a strong foundation for further success in 2016 and beyond based on our initiatives to diversify our product line to include new, higher-margin offerings. This strategy is already benefitting our financial results while offsetting the impact of the significant challenges in our oil and gas printer market and our decision to transition our focus away from our traditional point of sale and banking market. In 2016 we are strategically investing in our newer, high-margin AccuDate and Epicentral product lines to further grow their contribution to our overall sales mix. Furthermore, with the continued penetration of our newer products into customer opportunities around the world, we expect gross margins to reach the mid-40% level in 2016 and expect to generate another year of solid financial results.”