Harris Interactive® Reports Fourth Quarter and Full Year Fiscal 2012 Results
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)
For the For the
Three Months Twelve Months
USD in millions -
unaudited Ended June 30, 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.
