Exhibit 99.1


TransAct Technologies Reports Preliminary Second Quarter 2020 Financial Results

2020 Second Quarter Net Sales of $5.3 Million
Food Service Technology Revenues up 7% on a Year-Over-Year Basis

Hamden, CT – August 5, 2020 –
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 June 30, 2020.

“TransAct’s second quarter performance was relatively solid given the challenges presented by the COVID-19 pandemic. Notwithstanding these challenges and during the heart of the pandemic in Q2 2020, our Food Service Technology (“FST”) recurring revenue, which includes software, labels and service sales, increased over 100% from Q2 2019. Additionally, we continue to invest in our technology to enhance our position in the FST market. Our most recent addition to the BOHA! solution suite is BOHA! Employee Wellness. BOHA! Employee Wellness offers a safe and secure digital process with its mobile app to conduct wellness screenings that will either greenlight employees that can work or identify employees that must go home to recover,” said Bart C. Shuldman, Chairman and CEO of TransAct. “Although the near-term business environment is uncertain, we continue to be excited by the momentum of our BOHA! solution and the long-term opportunities it provides us. Our BOHA! solution continues to resonate with customers and orders for Q3 are projected to grow from the Q2 trough.  Most exciting is our projection that BOHA! recurring revenue may exceed $1 million in the third quarter, which would be a first for TransAct. As the headwinds from COVID continue to abate our solutions will be ready to drive measurable improvement across restaurant and foodservice operators’ bottom line.”


Second Quarter 2020 Financial Highlights
Net Sales: Net Sales for the second quarter of 2020 were $5.3 million, down 53% compared to $11.4 million for the second quarter of 2019.
Gross Profit: Gross profit for the second quarter of 2020 was $2.3 million, resulting in gross margin of 43.3%, compared to gross profit of $5.7 million in the second quarter of 2019, which resulted in a 50.3% gross margin.
Operating income (loss): Operating loss for the second quarter of 2020 was $2.7 million, compared to operating income of $0.3 million in the second quarter of 2019.
Net income (loss): Net loss for the second quarter of 2020 was $1.9 million, or $0.25 net loss per share, based on 7.5 million diluted weighted average common shares outstanding. Net income for the comparable 2019 period was $0.2 million, or $0.02 net income per share, based on 7.6 million diluted weighted average common shares outstanding.
EBITDA: EBITDA was negative $2.5 million for the second quarter of 2020, compared to positive EBITDA of $0.4 million in the second quarter of 2019.
Adjusted EBITDA: Adjusted EBITDA was negative $2.3 million for the second quarter of 2020, compared to positive adjusted EBITDA of $0.6 million in the second quarter of 2019.



2020 Second Quarter Conference Call and Webcast
TransAct is hosting a conference call and webcast today, August 5, 2020, beginning at 4:30 p.m. ET to discuss the Company’s second quarter 2020 preliminary results and other matters. Both the call and the webcast are open to the general public. The conference call number is 888-394-8218 and the conference ID number is 6185035 (domestic or international). Please call five minutes prior to the presentation to ensure that you are connected.

Interested parties may also access the conference call live on the Internet at www.transact-tech.com (select “Investor Relations” followed by “Events & Presentations”). Approximately two hours after the call has concluded, an archived version of the webcast will be available for replay at the same location.

Non-GAAP Financial Measures
TransAct is providing certain non-GAAP financial measures because the Company believes that these measures are helpful to investors and others in assessing the ongoing nature of what the Company’s management views as TransAct’s core operations. EBITDA and adjusted EBITDA provide the Company with an understanding of one aspect of earnings before the impact of investing and financing charges and income taxes. The Company believes that these non-GAAP financial measures provide relevant and useful information to an investor evaluating the Company’s operating performance because these measures are: (i) widely used by investors to measure a company’s operating performance without regard to non-recurring items excluded from the calculation of such measure; (ii) used as financial measurements by lenders and other parties to evaluate creditworthiness; and (iii) used by the Company’s management for various purposes including strategic planning and forecasting, assessing financial performance and paying incentive compensation. The presentation of this non-GAAP information is not considered superior to or a substitute for, and should be read in conjunction with, the financial information prepared in accordance with GAAP.

EBITDA is defined as net income before net interest expense, income taxes, depreciation and amortization. A reconciliation of EBITDA to net income, the most comparable GAAP financial measure, can be found attached to this release.

Adjusted EBITDA is defined as net income before net interest expense, income taxes, depreciation and amortization and is adjusted for share-based compensation. The Company adjusts EBITDA for share-based compensation because the Company considers share-based compensation to be a non-cash expense similar to depreciation and amortization. A reconciliation of adjusted EBITDA to net income, the most comparable GAAP financial measure, can be found attached to this release.

About TransAct Technologies Incorporated
TransAct Technologies Incorporated is a global leader in developing software-driven technology and printing solutions for high-growth markets including food service, casino and gaming, POS automation, and oil and gas. The Company’s solutions are designed from the ground up based on customer requirements and are sold under the BOHA! ™, AccuDate™, EPICENTRAL®, Epic®, Ithaca® and Printrex® brands. TransAct has sold over 3.4 million printers and terminals around the world and is committed to providing world-class service, spare parts and accessories to support its installed product base. Through the TransAct Services Group, the Company also provides customers with a complete range of supplies and consumable items both online at http://www.transactsupplies.com and through its direct sales team. TransAct is headquartered in Hamden, CT. For more information, please visit http://www.transact-tech.com or call (203) 859-6800.

TransAct®, BOHA!™, AccuDate™, Epic, EPICENTRAL™, Ithaca® and Printrex® are trademarks of TransAct Technologies Incorporated. ©2019 TRANSACT Technologies Incorporated. All rights reserved.


Cautionary Statement Regarding Preliminary Financial Information
The Company has prepared the preliminary financial information set forth above on a materially consistent basis with its historical financial information and in good faith based upon its internal reporting as of and for the three months ended June 30, 2020. This financial information is preliminary and is thus inherently uncertain and subject to change as the Company finalizes its financial results and related reviews for the three months ended June 30, 2020. During the course of the preparation of the Company’s condensed consolidated financial statements and related notes as of and for the three months ended June 30, 2020, the Company may identify items that could cause its final reported results to be materially different from the preliminary financial information set forth above.  As a result, there can be no assurance that the Company’s final results for this period will not differ from the preliminary financial information.

This preliminary financial information should not be viewed as a substitute for full interim financial statements prepared in accordance with GAAP. In addition, this preliminary financial information is not necessarily indicative of the results to be achieved for any future period.

Forward-Looking Statements
Certain statements in this press release include forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology, such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", or "continue", or the negative thereof, or other similar words. All forward-looking statements involve risks and uncertainties, including, but not limited to, risks, uncertainties and other factors related to the COVID-19 pandemic, including the extent and duration of the pandemic and any resurgences thereof and governmental responses thereto, disruptions in operations of manufacturers that we rely on for the manufacturing and assembly of our printers and terminals as well as travel restrictions and a reduction in consumer spending impacting the Company’s supply, sales and delivery of its products, sales prices of the Company’s common stock, access to capital, and availability of funds under the Company’s credit facility; our ability to successfully develop new products that garner customer acceptance and generate sales, both domestically and internationally, in the face of substantial competition; our ability to successfully transition our business towards the food service technology market;  our ability to remediate the material weaknesses over internal control over financial reporting; risks associated with potential future acquisitions; our dependence on a significant customer; general economic conditions; our dependence on contract manufacturers for the assembly of a large portion of our products in Asia; our dependence on significant suppliers;  dependence on third parties for sales outside the United States; marketplace acceptance of new products; risks associated with foreign operations; the availability of third-party components at reasonable prices; price wars or other significant pricing pressures affecting the Company's products in the United States or abroad; increased product costs or reduced customer demand for our products due to changes in U.S. policy that may result in trade wars or tariffs; our ability to protect intellectual property; the effect of the United Kingdom’s withdrawal from the European Union;  and other risk factors detailed in the Company’s annual report on Form 10-K for the year ended December 31, 2019, quarterly report for the quarter ended March 31, 2020 and other reports filed with the Securities and Exchange Commission. Actual results may differ materially from those discussed in, or implied by, the forward-looking statements. The forward-looking statements speak only as of the date of this release, and the Company assumes no duty to update them to reflect new, changing or unanticipated events or circumstances, except as required by applicable law.

# # #

Investor Contact:
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


- Financial tables follow –




TRANSACT TECHNOLOGIES INCORPORATED
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
(Preliminary and Unaudited)
 
         
   
Three Months Ended
   
Six Months Ended
 
(In thousands, except per share amounts)
 
June 30,
   
June 30,
 
   
2020
   
2019
   
2020
   
2019
 
Net sales
 
$
5,285
   
$
11,350
   
$
15,532
   
$
22,900
 
Cost of sales
   
2,995
     
5,646
     
8,324
     
11,110
 
Gross profit
   
2,290
     
5,704
     
7,208
     
11,790
 
                                 
Operating expenses:
                               
Engineering, design and product development
   
1,367
     
1,115
     
2,752
     
2,280
 
Selling and marketing
   
1,419
     
2,089
     
3,627
     
3,943
 
General and administrative
   
2,242
     
2,191
     
4,862
     
4,481
 
     
5,028
     
5,395
     
11,241
     
10,704
 
Operating (loss) income
   
(2,738
)
   
309
     
(4,033
)
   
1,086
 
                                 
Interest and other expense:
                               
Interest, net
   
(25
)
   
(7
)
   
(22
)
   
(13
)
Other, net
   
(11
)
   
(142
)
   
(176
)
   
(52
)
     
(36
)
   
(149
)
   
(198
)
   
(65
)
                                 
(Loss) Income before income taxes
   
(2,774
)
   
160
     
(4,231
)
   
1,021
 
Income tax (benefit) provision
   
(921
)
   
(26
)
   
(1,386
)
   
89
 
Net (loss) income
 
$
(1,853
)
 
$
186
   
$
(2,845
)
 
$
932
 
                                 
Net income (loss) per common share:
                               
Basic
 
$
(0.25
)
 
$
0.02
   
$
(0.38
)
 
$
0.12
 
Diluted
 
$
(0.25
)
 
$
0.02
   
$
(0.38
)
 
$
0.12
 
                                 
Shares used in per share calculation:
                               
Basic
   
7,543
     
7,462
     
7,525
     
7,461
 
Diluted
   
7,543
     
7,597
     
7,525
     
7,607
 
                                 

SUPPLEMENTAL INFORMATION – SALES BY MARKET:
(Preliminary and Unaudited)
 
   
Three months ended
   
Six months ended
 
(In thousands)
 
June 30,
   
June 30,
 
   
2020
   
2019
   
2020
   
2019
 
Food service technology
 
$
1,204
   
$
1,123
   
$
2,575
   
$
2,336
 
POS automation and banking
   
481
     
1,644
     
2,039
     
2,921
 
Casino and gaming
   
1,360
     
5,631
     
6,291
     
11,114
 
Lottery
   
817
     
134
     
817
     
831
 
Printrex
   
8
     
285
     
125
     
627
 
TransAct Services Group
   
1,415
     
2,533
     
3,685
     
5,071
 
Total net sales
 
$
5,285
   
$
11,350
   
$
15,532
   
$
22,900
 



TRANSACT TECHNOLOGIES INCORPORATED
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(Preliminary and Unaudited)
 
             
   
June 30,
   
December 31,
 
(In thousands)
 
2020
   
2019
 
Assets:
           
Current assets:
           
Cash and cash equivalents
 
$
3,082
   
$
4,203
 
Accounts receivable, net
   
3,290
     
6,418
 
Note receivable
   
100
     
1,017
 
Inventories, net
   
11,905
     
12,099
 
Prepaids and other current assets
   
1,096
     
1,178
 
Total current assets
   
19,473
     
24,915
 
                 
Fixed assets, net
   
2,396
     
2,244
 
Note receivable, net of current portion
   
1,547
     
-
 
Right-of-use asset
   
3,970
     
2,855
 
Goodwill
   
2,621
     
2,621
 
Deferred tax assets
   
4,057
     
2,565
 
Intangible assets, net
   
692
     
817
 
Other assets
   
218
     
44
 
     
15,501
     
11,146
 
Total assets
 
$
34,974
   
$
36,061
 
                 
Liabilities and Shareholders’ Equity:
               
Current liabilities:
               
Accounts payable
 
$
1,316
   
$
2,960
 
Accrued liabilities
   
2,638
     
3,041
 
Revolving bank loan payable
   
6
     
-
 
Lease liability
   
878
     
945
 
Deferred revenue
   
519
     
700
 
Total current liabilities
   
5,357
     
7,646
 
                 
Long term debt
   
2,173
     
-
 
Deferred revenue, net of current portion
   
145
     
219
 
Lease liability, net of current portion
   
3,241
     
2,104
 
Other liabilities
   
170
     
166
 
     
5,729
     
2,489
 
Total liabilities
   
11,086
     
10,135
 
                 
Shareholders’ equity:
               
Common stock
   
116
     
115
 
Additional paid-in capital
   
33,329
     
32,604
 
Retained earnings
   
22,503
     
25,348
 
Accumulated other comprehensive income (loss), net of tax
   
50
     
(31
)
Treasury stock, at cost
   
(32,110
)
   
(32,110
)
Total shareholders’ equity
   
23,888
     
25,926
 
Total liabilities and shareholders’ equity
 
$
34,974
   
$
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
   
Six Months Ended
 
(In thousands)
 
June 30,
   
June 30,
 
   
2020
   
2019
   
2020
   
2019
 
Net (loss) income
 
$
(1,853
)
 
$
186
   
$
(2,845
)
 
$
932
 
                                 
Interest expense, net
   
25
     
7
     
22
     
13
 
Income tax provision (benefit)
   
(921
)
   
(26
)
   
(1,386
)
   
89
 
Depreciation and amortization
   
257
     
236
     
495
     
488
 
                                 
EBITDA
   
(2,492
)
   
403
     
(3,714
)
   
1,522
 
                                 
Share-based compensation expense
   
226
     
213
     
413
     
386
 
                                 
Adjusted EBITDA
 
$
(2,266
)
 
$
616
   
$
(3,301
)
 
$
1,908
 
                                 


The following information was filed by Transact Technologies Inc (TACT) on Wednesday, August 5, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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