2021 Third Quarter Net Sales of $10.6 Million

FST Recurring Revenue of $2.0 Million, up 28% on a Year-Over-Year Basis

FST Paid Terminals Up 129% from September 30, 2020

HAMDEN, Conn.--(BUSINESS WIRE)--Nov. 9, 2021-- TransAct Technologies Incorporated (Nasdaq: TACT) (“TransAct” or the “Company”), a global leader in software-driven technology and printing solutions for high-growth markets, today reported preliminary operating results for the quarter ended September 30, 2021.

“Our results mark the highest quarterly net sales since the fourth quarter of 2019, due to sustained momentum in BOHA! and our key Food Service Technology (“FST”) business, and a fantastic rebound in our domestic casino and gaming markets. We posted another quarter of over $2 million in recurring FST revenue, including gains in our high margin software and label recurring revenues, even in the face of a then-surging Delta variant. We also saw some solid BOHA! terminal additions, and we ended the quarter at 8,749 paid terminals in the market, representing over 3,000 added during the first nine months of 2021. Even though we are only in the early stages of our BOHA! growth story, we are already seeing the power of our recurring revenue base beginning to drive consistent results. We are also experiencing continued strong interest in our BOHA! solution to help with the labor shortages faced by our FST customers,” said Bart C. Shuldman, Chairman and CEO of TransAct. “In addition, we are really pleased with the encouraging trends in the casino and gaming market, with sales up over 100% year-over-year to $4 million for the third quarter of 2021. The domestic rebound is leading the way, courtesy of the continued reinvestment in the casino floor, as the American gamer clearly has been very eager to return to business as usual.”

Third Quarter 2021 Financial Highlights

Net Sales: Net sales for the third quarter of 2021 were $10.6 million, up 46% compared to $7.3 million for the third quarter of 2020.
FST Recurring Revenue: FST recurring revenue for the third quarter of 2021 was $2.0 million, up 28% compared to $1.6 million for the third quarter of 2020.
Gross Profit: Gross profit for the third quarter of 2021 was $4.3 million, resulting in gross margin of 40.6%, compared to gross profit of $3.3 million for the third quarter of 2020, which resulted in a 45.9% gross margin.
Operating loss: Operating loss for the third quarter of 2021 was $(1.6) million, compared to operating loss of $(1.5) million for the third quarter of 2020.
Net income (loss): Net income for the third quarter of 2021 was $0.9 million, or $0.09 per share, based on 9.8 million weighted average common shares outstanding. Net loss for the comparable 2020 period was $(0.9) million, or $(0.11) net loss per diluted share, based on 7.5 million weighted average common shares outstanding.
Adjusted net income (loss): Adjusted net loss for the third quarter of 2021 was $(1.3) million, or $(0.13) net loss per share compared to adjusted net loss for the third quarter of 2020 of $(0.9) million, or $(0.11) net loss per share.
EBITDA: EBITDA was $0.7 million for the third quarter of 2021, compared to an EBITDA loss of $(1.1) million for the third quarter of 2020.
Adjusted EBITDA loss: Adjusted EBITDA loss was $(1.2) million for the third quarter of 2021, compared to adjusted EBITDA loss of $(0.9) million for the third quarter of 2020.
Paid Terminals: Paid terminals in the market were 8,749 on September 30, 2021, compared to 3,813 on September 30, 2020, an increase of 129%.

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