NEW YORK, May 2, 2012 /PRNewswire/ -- Harris
Interactive Inc. (NASDAQ: HPOL), a global custom market research
firm, today announced its third quarter fiscal 2012 financial
results.
(Logo:
http://photos.prnewswire.com/prnh/20100518/NY06801LOGO)
Al Angrisani, President and Chief
Executive Officer of Harris Interactive, commented, "We have made
progress over the last three quarters executing our turnaround
program. Profitability has improved through our efforts to
rightsize the Company's cost structure and sell higher margin
research services, and liquidity has stabilized as we continue to
closely manage our cash. Although global bookings were up 3% in
constant currency compared to last year's third quarter, largely
attributable to timing differences, it will take several quarters
before we know the outcome of our efforts to address the systemic
sales challenges that exist in certain areas of our business."
Key Financial Statistics (1)
|
USD in
millions – unaudited
|
For the
Three Months
Ended March 31,
|
For the
Nine Months
Ended March 31,
|
|
2012
|
2011
|
2012
|
2011
|
|
Revenue
(2)
|
$
34.1
|
$
37.0
|
$
111.0
|
$
116.5
|
|
Operating
loss (3)
|
$
(0.4)
|
$
(1.8)
|
$
(2.3)
|
$
(2.2)
|
|
Loss from
continuing operations
|
$
(0.5)
|
$
(2.2)
|
$
(2.8)
|
$
(3.2)
|
|
Income
(loss) from discontinued operations
|
$
0.2
|
$
(0.1)
|
$
(1.9)
|
$
(0.1)
|
|
Net
loss
|
$
(0.3)
|
$
(2.3)
|
$
(4.7)
|
$
(3.3)
|
|
Fully
diluted net loss per share – continuing operations
|
$
(0.01)
|
$
(0.04)
|
$
(0.05)
|
$
(0.06)
|
|
Fully
diluted net income (loss) per share – discontinued
operations
|
$
0.00
|
$
(0.00)
|
$
(0.03)
|
$
(0.00)
|
|
Fully
diluted net loss per share
|
$
(0.01)
|
$
(0.04)
|
$
(0.08)
|
$
(0.06)
|
|
|
|
|
|
|
Adjusted
EBITDA (4)
|
$
1.5
|
$
0.1
|
$
3.0
|
$
3.9
|
|
Adjusted
EBITDA with add-back of restructuring and other charges
(4)
|
$
1.5
|
$
0.6
|
$
8.4
|
$
5.0
|
|
|
|
|
|
|
Cash
provided by operations
|
$
0.0
|
$
0.1
|
$
3.5
|
$
1.1
|
|
|
Bookings
(5)
|
$
39.5
|
$
39.0
|
$
116.8
|
$
127.9
|
|
|
|
|
|
|
At
March 31:
|
2012
|
2011
|
|
|
Cash and
cash equivalents
|
$
13.2
|
$
12.4
|
|
|
Outstanding debt
|
$
7.2
|
$
12.0
|
|
|
Secured
revenue (6)
|
$
50.5
|
$
54.9
|
|
________
|
(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
nine months ended March 31, 2012 decreased by 7.9% and 5.4%,
respectively, over the same prior year periods.
|
|
(3) Operating loss for the three months
ended March 31, 2012 included restructuring and other charges of
$(19) thousand, compared with $0.4 million for the same prior
year period. Operating loss for the nine months ended March 31,
2012 included restructuring and other charges of $5.3 million,
compared with $1.1 million for the same prior year
period.
|
|
(4) EBITDA is a non-GAAP measure. Adjusted
EBITDA, also a non-GAAP measure, is EBITDA with stock-based
compensation added back.
|
|
(5) Amounts include the impact of foreign
currency exchange rate differences. Excluding the impact of foreign
currency exchange rate differences, bookings for the three and
nine months ended March 31, 2012 increased by 3.4% and decreased by
7.2%, respectively, over the same prior year periods.
|
|
(6) Amounts include the impact of foreign
currency exchange rate differences. Excluding the impact of foreign
currency exchange rate differences, secured revenue at March
31, 2012 decreased by 7.0% over the same prior year
period.
|
Full Year Fiscal 2012 Guidance
Eric Narowski, Chief Financial
Officer of Harris Interactive, commented, "Based on current market
conditions and forecasts, the Company now projects Adjusted EBITDA
after the effect of restructuring and other charges to be between
$10.5 and $11.5 million for the
fiscal year ending June 30,
2012."
Third Quarter 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 Wednesday, May 2, 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 custom 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 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. Serving clients in
more than 215 countries and territories through our North American
and European offices and a network of independent market research
firms, 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.
Press Contact:
Michael T. Burns
Investor
Relations
Harris Interactive Inc.
800-866-7655 x7328
mburns@harrisinteractive.com
HPOL - E
|
HARRIS
INTERACTIVE INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(In
thousands, except share and per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
June
30,
|
|
|
|
|
|
2012
|
2011
|
|
Assets
|
|
Cash and
cash equivalents
|
|
|
$
13,167
|
$
14,084
|
|
Accounts
receivable, net
|
|
|
18,673
|
25,046
|
|
Unbilled
receivables
|
|
|
6,882
|
7,580
|
|
Prepaids
and other current assets
|
|
4,834
|
3,588
|
|
Deferred
tax assets
|
|
|
621
|
306
|
|
Assets
from discontinued operations
|
-
|
2,361
|
|
Total
current assets
|
|
|
44,177
|
52,965
|
|
|
|
|
|
|
|
|
Property,
plant and equipment, net
|
1,946
|
3,291
|
|
Other
intangibles, net
|
|
|
11,615
|
14,041
|
|
Other
assets
|
|
|
|
875
|
1,551
|
|
Total
assets
|
|
|
$
58,613
|
$
71,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
Accounts
payable
|
|
|
|
$
7,028
|
$
9,308
|
|
Accrued
expenses
|
|
|
|
20,585
|
20,924
|
|
Current
portion of long-term debt
|
|
4,794
|
4,794
|
|
Deferred
revenue
|
|
|
|
11,467
|
13,397
|
|
Liabilities from discontinued operations
|
184
|
1,013
|
|
Total
current liabilities
|
|
44,058
|
49,436
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
|
2,397
|
5,993
|
|
Deferred
tax liabilities
|
|
|
2,002
|
2,195
|
|
Other
long-term liabilities
|
|
|
3,398
|
2,752
|
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
6,758
|
11,472
|
|
Total
liabilities and stockholders' equity
|
$
58,613
|
$
71,848
|
|
|
|
|
|
|
|
|
HARRIS
INTERACTIVE INC.
|
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
(In
thousands, except share and per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three
months ended
|
Nine
months ended
|
|
|
|
March
31,
|
March
31,
|
|
|
|
2012
|
2011
|
2012
|
2011
|
|
|
|
|
|
|
|
|
Revenue
from services
|
|
|
$
34,117
|
$
36,989
|
$
111,002
|
$
116,486
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of services
|
|
|
20,791
|
24,401
|
68,799
|
76,640
|
|
Selling, general and administrative
|
|
|
12,580
|
12,469
|
35,579
|
36,490
|
|
Depreciation and amortization
|
|
|
1,136
|
1,490
|
3,602
|
4,478
|
|
Restructuring and other charges
|
|
|
(19)
|
448
|
5,348
|
1,127
|
|
Total operating expenses
|
|
|
34,488
|
38,808
|
113,328
|
118,735
|
|
Operating loss
|
|
|
(371)
|
(1,819)
|
(2,326)
|
(2,249)
|
|
Operating margin
|
|
|
-1.1%
|
-4.9%
|
-2.1%
|
-1.9%
|
|
Interest
expense, net
|
|
|
196
|
235
|
557
|
932
|
|
Loss from continuing operations
before income taxes
|
(567)
|
(2,054)
|
(2,883)
|
(3,181)
|
|
Provision
(benefit) for income taxes
|
|
|
(88)
|
177
|
(85)
|
12
|
|
Loss from continuing
operations
|
|
|
(479)
|
(2,231)
|
(2,798)
|
(3,193)
|
|
Income (loss) from discontinued
operations
|
156
|
(104)
|
(1,854)
|
(137)
|
|
Net loss
|
|
|
$
(323)
|
$
(2,335)
|
$
(4,652)
|
$
(3,330)
|
|
|
|
|
|
|
|
|
Basic net
income (loss) per share:
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
(0.01)
|
$
(0.04)
|
$
(0.05)
|
$
(0.06)
|
|
Discontinued operations
|
|
|
0.00
|
(0.00)
|
(0.03)
|
(0.00)
|
|
Basic net
loss per share
|
|
|
$
(0.01)
|
$
(0.04)
|
$
(0.08)
|
$
(0.06)
|
|
|
|
|
|
|
|
|
Diluted
net income (loss) per share:
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
(0.01)
|
$
(0.04)
|
$
(0.05)
|
$
(0.06)
|
|
Discontinued operations
|
|
|
0.00
|
(0.00)
|
(0.03)
|
(0.00)
|
|
Diluted
net loss per share
|
|
|
$
(0.01)
|
$
(0.04)
|
$
(0.08)
|
$
(0.06)
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding -
|
|
|
|
|
|
Basic
|
|
55,572,845
|
54,658,105
|
55,287,089
|
54,516,793
|
|
Diluted
|
|
55,572,845
|
54,658,105
|
55,287,089
|
54,516,793
|
|
|
|
|
|
|
|
Three
and Nine Months Ended March 31, 2012
|
|
|
|
|
|
Reconciliation of GAAP Net Loss to EBITDA and
Adjusted EBITDA
|
|
|
|
|
Amounts in thousands of USD
|
|
|
|
|
|
|
|
|
|
|
Three
months ended
|
Nine
months ended
|
|
March
31,
|
March
31,
|
|
2012
|
2011
|
2012
|
2011
|
|
GAAP net
loss
|
$
(323)
|
$
(2,335)
|
$
(4,652)
|
$
(3,330)
|
|
(Income) Loss from discontinued
operations
|
(156)
|
104
|
1,854
|
137
|
|
Interest
expense, net
|
196
|
235
|
557
|
932
|
|
Provision
(benefit) for income taxes
|
(88)
|
177
|
(85)
|
12
|
|
Depreciation and amortization
|
1,393
|
1,793
|
4,373
|
5,632
|
|
EBITDA
|
$
1,022
|
$
(26)
|
$
2,047
|
$
3,383
|
|
Stock-based compensation (1)
|
447
|
173
|
997
|
523
|
|
Adjusted
EBITDA
|
$
1,469
|
$
147
|
$
3,044
|
$
3,906
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
1,469
|
$
147
|
$
3,044
|
$
3,906
|
|
Add-back
of restructuring and other charges
|
(19)
|
448
|
5,348
|
1,127
|
|
Adjusted
EBITDA with add-back of restructuring and other charges
|
$
1,450
|
$
595
|
$
8,392
|
$
5,033
|
|
|
|
|
|
|
(1)
Stock-based compensation expense represents the cost of stock-based
compensation
accounted for under the FASB guidance for stock-based
compensation
|
|
Full
Year Fiscal 2012 Guidance
|
|
|
|
|
Reconciliation of GAAP Net Loss to EBITDA and
Adjusted EBITDA (1)
|
|
|
|
Amounts in millions of USD
|
|
|
|
|
|
|
|
|
|
|
For the
Fiscal Year
Ending
June 30, 2012 (2)(3)
|
For the
Fiscal Year
Ended
June 30, 2011
|
|
|
GAAP net
loss
|
$
(4.5)
|
$
(8.5)
|
|
|
Loss from
discontinued operations, net of tax
|
1.9
|
0.8
|
|
|
Interest
expense, net
|
0.8
|
1.2
|
|
|
Provision
for income taxes
|
0.1
|
0.2
|
|
|
Depreciation and amortization
|
5.6
|
7.3
|
|
|
EBITDA
|
$
3.9
|
$
1.0
|
|
|
Stock-based compensation (4)
|
1.7
|
0.7
|
|
|
Adjusted
EBITDA
|
$
5.6
|
$
1.7
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
5.6
|
$
1.7
|
|
|
Add-back
of restructuring and other charges
|
5.4
|
5.1
|
|
|
Adjusted
EBITDA with add-back of restructuring and other charges
|
$
11.0
|
$
6.8
|
|
|
|
|
|
|
(1)
Results shown above reflect the reclassification of our Asian
operations as discontinued operations for all periods
shown.
|
|
|
|
|
|
(2) This
reconciliation is based on the midpoint of the Adjusted EBITDA
guidance range provided in this press release.
|
|
|
|
|
|
(3) The
amounts expressed in this column are based on current estimates as
of the date of this press release.
|
|
|
|
|
|
(4)
Stock-based compensation expense represents the cost of stock-based
compensation accounted for under the
FASB guidance for stock-based compensation.
|
SOURCE Harris Interactive Inc.