ROCHESTER, N.Y., Aug.16, 2012
/PRNewswire/ -- Harris Interactive Inc. (NASDAQ: HPOL), a leading
global market research firm, today announced its fourth quarter and
full year fiscal 2012 financial results.
(Logo: http://photos.prnewswire.com/prnh/20100518/NY06801LOGO
)
Al Angrisani, President and Chief
Executive Officer of Harris Interactive, commented, "I am pleased
to report that we exceeded our full year fiscal 2012 guidance with
$12.1 million of adjusted EBIDTA with
add backs. This represents more than a 70% improvement in adjusted
EBITDA with add backs from the previous year and the completion of
a successful first year of the turnaround effort." Angrisani
continued, "Our efforts in year two of the turnaround will be
focused on profitably growing Harris, with emphasis in the U.S.
on the Harris Poll, our Custom Solutions Group and
the Harris Interactive Service Bureau, as well as select areas
of our international business."
Key Financial Statistics (1)
|
USD in
millions – unaudited
|
For the
Three Months
Ended June
30,
|
For the
Twelve Months
Ended June
30,
|
|
2012
|
2011
|
2012
|
2011
|
|
Revenue
(2)
|
$
36.5
|
$
44.2
|
$
147.5
|
$
160.7
|
|
Operating
loss (3)(4)
|
$
(0.5)
|
$
(4.0)
|
$
(2.8)
|
$
(6.0)
|
|
Loss from
continuing operations
|
$
(0.9)
|
$
(4.5)
|
$
(3.7)
|
$
(7.7)
|
|
Loss from
discontinued operations
|
$
----
|
$
(0.6)
|
$
(1.9)
|
$
(0.8)
|
|
Net
loss
|
$
(0.9)
|
$
(5.1)
|
$
(5.6)
|
$
(8.5)
|
|
Fully
diluted net loss per share – continuing operations
|
$
(0.02)
|
$
(0.08)
|
$
(0.07)
|
$
(0.14)
|
|
Fully
diluted net loss per share – discontinued operations
|
$
----
|
$
(0.01)
|
$
(0.03)
|
$
(0.01)
|
|
Fully
diluted net loss per share
|
$
(0.02)
|
$
(0.09)
|
$
(0.10)
|
$
(0.15)
|
|
|
|
|
|
|
Adjusted
EBITDA (4)(5)
|
$
1.5
|
$
(2.1)
|
$
4.6
|
$
2.0
|
|
Adjusted
EBITDA with add-back of restructuring and other charges
(4)(5)
|
$
3.7
|
$
1.9
|
$
12.1
|
$
7.1
|
|
|
|
|
|
|
Cash
provided by operations
|
$
0.3
|
$
2.9
|
$
3.9
|
$
4.0
|
|
|
Bookings
(6)
|
$
28.5
|
$
34.0
|
$
145.3
|
$
161.9
|
|
At June
30:
|
2012
|
2011
|
|
|
Cash and
cash equivalents
|
$
11.5
|
$
14.1
|
|
|
Outstanding debt
|
$
6.0
|
$
10.8
|
|
|
Secured
revenue (7)
|
$
42.5
|
$
44.7
|
|
|
(1)
|
All
amounts shown reflect our Asian operations as discontinued
operations.
|
|
|
|
(2)
|
Amounts
include the impact of foreign currency exchange rate differences.
Excluding the impact of foreign currency exchange rate differences,
revenue for the three and twelve months ended June 30, 2012
decreased by 15% and 8%, respectively, over the same prior year
periods.
|
|
|
|
(3)
|
Operating
loss for the three months ended June 30, 2012 included
restructuring and other charges of $2.2 million, compared with $4.0
million for the same prior year period. Operating loss for the
twelve months ended June 30, 2012 included restructuring and other
charges of $7.5 million, compared with $5.1 million for the same
prior year period.
|
|
|
|
(4)
|
During the
three and twelve months ended June 30, 2011, the Company recorded
$338 thousand and $150 thousand, respectively, in French research
and development credits and initially presented those credits
within the provision for income taxes line of its consolidated
statement of operations. During the three and twelve months ended
June 30, 2012, the Company recorded $124 thousand in such credits
and presented them in the selling, general and administrative line
of its consolidated statement of operations based on the determined
refundable nature of these credits. The prior year presentation has
been revised to conform to the current year
presentation.
|
|
|
|
(5)
|
EBITDA is
a non-GAAP measure. Adjusted EBITDA, also a non-GAAP measure, is
EBITDA with stock-based compensation added back.
|
|
|
|
(6)
|
Amounts
include the impact of foreign currency exchange rate differences.
Excluding the impact of foreign currency exchange rate differences,
bookings for the three and twelve months ended June 30, 2012
decreased by 11% and 8%, respectively, over the same prior year
periods.
|
|
|
|
(7)
|
Amounts
include the impact of foreign currency exchange rate differences.
Excluding the impact of foreign currency exchange rate differences,
secured revenue at June 30, 2012 decreased by 3% over the same
prior year period.
|
Fourth Quarter and Full Year Fiscal 2012 Results Conference
Call and Webcast Access
Al Angrisani, President and
Chief Executive Officer, will host a conference call to discuss
these results on Thursday, August 16,
2012, at 5:00 p.m. ET. Formal
remarks will be followed by a question and answer session.
To access the conference call, please dial toll-free
877.303.9858 in the United
States and Canada, or
408.337.0139 internationally.
A live webcast of the conference call also will be accessible
via the Investor Relations section of our website at
http://ir.harrisinteractive.com/, where an archived replay of the
webcast will be available for 30 days following the call. No
telephone replay of the conference call will be provided. This
media release will be available under the Investor Relations
section of our website at http://ir.harrisinteractive.com/ prior to
the call.
Cautionary Note Regarding Forward Looking Statements
Certain statements in this press release and oral
statements made by the Company on its conference call constitute
forward-looking statements for purposes of the safe harbor
provisions under The Private Securities Litigation Reform Act of
1995. These statements include, among others, statements as to
future economic performance, projections as to financial items,
estimates, and plans and objectives for future operations, products
and services. In some cases, you can identify forward-looking
statements by terminology such as, "may", "should", "expects",
"plans", "anticipates", "feel", "believes", "estimates",
"predicts", "potential", "continue", "consider", "possibility", or
the negative of these terms or other comparable terminology. These
forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially
from those in the forward looking statements. Such risks and
uncertainties include, without limitation, risks detailed in the
"Risk Factors" section of the Company's most recent Annual Report
on Form 10-K, as updated quarterly in our Quarterly Reports on Form
10-Q to reflect additional material risks. The Company has filed
its reports on Forms 10-K and 10-Q with the Securities and Exchange
Commission, and they are available under the Investor Relations
section of our website at http://ir.harrisinteractive.com/. Risks
and uncertainties also include the continued volatility of the
global macroeconomic environment and its impact on the Company and
its clients, the Company's ability to sustain and grow its revenue
base, the Company's ability to maintain and improve cost efficient
operations, the impact of reorganization, restructuring and related
charges, quarterly variations in financial results, the Company's
ability to maintain compliance with certain NASDAQ listing
requirements, actions of competitors, the Company's ability to
develop and maintain products and services attractive to the
market, and the Company's ability to remain in compliance with the
financial covenants in its credit agreement.
You are urged to consider these factors carefully in evaluating
such forward-looking statements and are cautioned not to place
undue reliance on them. The forward-looking statements are
qualified in their entirety by this cautionary statement.
About Harris Interactive
Harris Interactive is one of the world's leading market research
firms, leveraging research, technology, and business acumen to
transform relevant insight into actionable foresight. Known widely
for the Harris Poll® and for pioneering innovative
research methodologies, Harris offers proprietary solutions in the
areas of market and customer insight, corporate brand and
reputation strategy, and marketing, advertising, public relations
and communications research. Harris possesses expertise in a wide
range of industries including health care, technology, public
affairs, energy, telecommunications, financial services, insurance,
media, retail, restaurant, and consumer package goods.
Additionally, Harris has a portfolio of multi-client offerings that
complement our custom solutions while maximizing our client's
research investment. Serving clients in more than 215 countries and
territories through our North American and European offices, Harris
specializes in delivering research solutions that help us - and our
clients - stay ahead of what's next. For more information, please
visit www.harrisinteractive.com.
HPOL – E
|
HARRIS
INTERACTIVE INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(In
thousands, except share and per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
June
30,
|
|
|
|
|
|
2012
|
2011
|
|
Assets
|
|
Cash and cash equivalents
|
$
11,456
|
$
14,084
|
|
Accounts receivable, net
|
19,940
|
25,046
|
|
Unbilled receivables
|
7,513
|
7,580
|
|
Prepaids and other current
assets
|
3,859
|
3,588
|
|
Deferred tax assets
|
243
|
306
|
|
Assets from discontinued
operations
|
-
|
2,361
|
|
Total
current assets
|
43,011
|
52,965
|
|
|
|
|
|
|
|
|
Property, plant and equipment,
net
|
2,500
|
3,291
|
|
Other intangibles, net
|
10,795
|
14,041
|
|
Other assets
|
1,080
|
1,551
|
|
Total
assets
|
$
57,386
|
$
71,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
Accounts payable
|
$
7,628
|
$
9,308
|
|
Accrued expenses
|
21,643
|
20,924
|
|
Current portion of long-term
debt
|
4,794
|
4,794
|
|
Deferred revenue
|
10,088
|
13,397
|
|
Liabilities from discontinued
operations
|
181
|
1,013
|
|
Total
current liabilities
|
44,334
|
49,436
|
|
|
|
|
|
|
|
|
Long-term debt
|
1,199
|
5,993
|
|
Deferred tax liabilities
|
1,696
|
2,195
|
|
Other long-term liabilities
|
4,072
|
2,752
|
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
6,085
|
11,472
|
|
Total
liabilities and stockholders' equity
|
$
57,386
|
$
71,848
|
|
HARRIS
INTERACTIVE INC.
|
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
(In
thousands, except share and per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three
months ended
|
Twelve
months ended
|
|
|
|
June
30,
|
June
30,
|
|
|
|
2012
(4)
|
2011
(4)
|
2012
(4)
|
2011
(4)
|
|
|
|
|
|
|
|
|
Revenue
from services
|
$
36,501
|
$
44,178
|
$
147,503
|
$
160,664
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Cost of services
|
23,103
|
29,340
|
91,902
|
105,976
|
|
Selling,
general and administrative
|
10,691
|
13,396
|
46,270
|
49,701
|
|
Depreciation and amortization
|
1,005
|
1,443
|
4,607
|
5,921
|
|
Restructuring and other charges
|
2,182
|
3,974
|
7,530
|
5,100
|
|
Total
operating expenses
|
36,981
|
48,153
|
150,309
|
166,698
|
|
Operating
loss
|
(480)
|
(3,975)
|
(2,806)
|
(6,034)
|
|
Operating
margin
|
-1.3%
|
-9.0%
|
-1.9%
|
-3.8%
|
|
Interest
expense, net
|
133
|
238
|
689
|
1,171
|
|
Loss from continuing operations
before income taxes
|
(613)
|
(4,213)
|
(3,495)
|
(7,205)
|
|
Provision
for income taxes
|
319
|
292
|
234
|
492
|
|
Loss from continuing
operations
|
(932)
|
(4,505)
|
(3,729)
|
(7,697)
|
|
Loss from discontinued
operations
|
-
|
(620)
|
(1,854)
|
(756)
|
|
Net loss
|
$
(932)
|
$
(5,125)
|
$
(5,583)
|
$
(8,453)
|
|
|
|
|
|
|
|
|
Basic net
loss per share:
|
|
|
|
|
|
Continuing operations
|
$
(0.02)
|
$
(0.08)
|
$
(0.07)
|
$
(0.14)
|
|
Discontinued operations
|
-
|
(0.01)
|
(0.03)
|
(0.01)
|
|
Basic net
loss per share
|
$
(0.02)
|
$
(0.09)
|
$
(0.10)
|
$
(0.15)
|
|
|
|
|
|
|
|
|
Diluted
net loss per share:
|
|
|
|
|
|
Continuing operations
|
$
(0.02)
|
$
(0.08)
|
$
(0.07)
|
$
(0.14)
|
|
Discontinued operations
|
-
|
(0.01)
|
(0.03)
|
(0.01)
|
|
Diluted
net loss per share
|
$
(0.02)
|
$
(0.09)
|
$
(0.10)
|
$
(0.15)
|
|
|
|
|
|
|
|
Weighted
average shares outstanding -
|
|
|
|
|
|
Basic
|
55,733,313
|
54,716,529
|
55,383,780
|
54,566,590
|
|
Diluted
|
55,733,313
|
54,716,529
|
55,383,780
|
54,566,590
|
|
|
|
|
|
|
|
|
Three
and Twelve Months Ended June 30, 2012
|
|
Reconciliation of GAAP Net Loss to EBITDA and
Adjusted EBITDA
|
|
Amounts in thousands of USD
|
|
|
|
|
|
|
Three
months ended
|
Twelve months ended
|
|
June
30,
|
June
30,
|
|
2012
(4)
|
2011
(4)
|
2012
(4)
|
2011
(4)
|
|
GAAP net
loss
|
$
(932)
|
$
(5,125)
|
$
(5,583)
|
$
(8,453)
|
|
Loss
from discontinued operations
|
-
|
620
|
1,854
|
756
|
|
Interest
expense, net
|
133
|
238
|
689
|
1,171
|
|
Provision
for income taxes
|
319
|
292
|
234
|
492
|
|
Depreciation and amortization
|
1,182
|
1,699
|
5,555
|
7,331
|
|
EBITDA
|
$
702
|
$
(2,276)
|
$
2,749
|
$
1,297
|
|
Stock-based compensation (8)
|
830
|
160
|
1,827
|
683
|
|
Adjusted
EBITDA
|
$
1,532
|
$
(2,116)
|
$
4,576
|
$
1,980
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
1,532
|
$
(2,116)
|
$
4,576
|
$
1,980
|
|
Add-back
of restructuring and other charges
|
2,182
|
3,974
|
7,530
|
5,100
|
|
Adjusted
EBITDA with add-back of restructuring and other charges
|
$
3,714
|
$
1,858
|
$
12,106
|
$
7,080
|
|
|
|
|
|
|
(8)
|
Stock-based compensation expense represents the cost
of stock-based compensation accounted for under the FASB guidance
for stock-based compensation
|
Press Contact:
Michael T. Burns
Investor
Relations
Harris Interactive Inc.
800-866-7655 x7328
mburns@harrisinteractive.com
SOURCE Harris Interactive Inc.