Harris Interactive® Reports Second Quarter Fiscal 2013 Results and
Provides Full Fiscal Year Guidance
ROCHESTER, N.Y., Feb. 6, 2013 /PRNewswire/ -- Harris
Interactive Inc. (NASDAQ: HPOL), a leading global market research
firm, today announced its second quarter fiscal 2013 financial
results.
(Logo: http://photos.prnewswire.com/prnh/20100518/NY06801LOGO
)
Al Angrisani, President and Chief
Executive Officer of Harris Interactive, commented, "Today's
announcement of improved earnings guidance over last year's
earnings is a strong indication that the turnaround is progressing
on schedule. Our improved profitability has allowed us to continue
to de-leverage our balance sheet and position ourselves to pay off
all remaining bank debt by fiscal year end. As our turnaround
continues, the major task that remains is to continue to strengthen
the sales engine of the Company by focusing our sales efforts on
our core product strengths as well as some of our new product
offerings."
Key Financial Statistics (1)
|
USD in
millions – unaudited
|
For the
Three Months
Ended December 31,
|
For the
Six Months
Ended December 31,
|
|
2012
|
2011
|
2012
|
2011
|
|
Revenue
(2)
|
$
37.1
|
$
39.1
|
$
70.1
|
$
76.9
|
|
Operating
income (loss) (3)
|
$
3.0
|
$
2.3
|
$
4.8
|
$
(2.0)
|
|
Net income
(loss)
|
$
2.9
|
$
1.6
|
$
4.6
|
$
(4.3)
|
|
Fully
diluted net income (loss) per share
|
$
0.05
|
$
0.03
|
$
0.08
|
$
(0.08)
|
|
|
Adjusted
EBITDA (4)
|
$
4.8
|
$
4.0
|
$
8.3
|
$
1.6
|
|
Adjusted
EBITDA with add-back of restructuring and other charges
(4)
|
$
4.8
|
$
4.0
|
$
8.3
|
$
6.9
|
|
|
Cash
provided by operations
|
$
1.6
|
$
3.3
|
$
1.9
|
$
3.5
|
|
|
Bookings
(5)
|
$
47.8
|
$
45.2
|
$
81.7
|
$
77.3
|
|
|
At
December 31:
|
2012
|
2011
|
|
|
Cash and
cash equivalents
|
$
11.1
|
$
14.1
|
|
|
Outstanding debt
|
$
3.6
|
$
8.4
|
|
|
Secured
revenue (6)
|
$
54.1
|
$
45.1
|
|
________
|
(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 six months ended December 31, 2012
decreased by 5% and 8%, respectively, over the same prior year
periods.
|
|
(3)
|
Operating
income for the three and six months ended December 31, 2012 did not
include any restructuring or other charges, compared with $(0.1)
million and $5.4 million, respectively, for the same prior
year periods.
|
|
(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 six months ended December 31, 2012
increased by 5% for both current periods, 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 December 31, 2012 increased by 19% over the same
prior year period.
|
Full Year Fiscal 2013 Guidance
Eric Narowski, Chief Financial
Officer of Harris Interactive, commented, "Based on current market
conditions and forecasts, the Company projects Adjusted EBITDA to
be between $13.5 and $14.5 million
for the fiscal year ending June 30,
2013."
Second Quarter Fiscal 2013 Results Conference Call and
Webcast Access
Al Angrisani, President and Chief
Executive Officer, will host a conference call to discuss these
results on Wednesday, February 6,
2013, 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 196 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
June
30,
|
|
|
|
|
|
|
2012
|
2012
|
|
|
Assets
|
|
|
Cash and cash equivalents
|
|
|
$
11,085
|
$
11,456
|
|
|
Accounts receivable, net
|
|
|
27,234
|
19,940
|
|
|
Unbilled receivables
|
|
|
6,512
|
7,513
|
|
|
Prepaids and other current
assets
|
|
3,663
|
3,859
|
|
|
Deferred tax assets
|
|
|
156
|
243
|
|
|
Total
current assets
|
|
|
48,650
|
43,011
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment,
net
|
2,335
|
2,500
|
|
|
Other intangibles, net
|
|
|
9,551
|
10,795
|
|
|
Other assets
|
|
|
|
1,131
|
1,080
|
|
|
Total
assets
|
|
|
$
61,667
|
$
57,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
Accounts payable
|
|
|
|
$
9,122
|
$
7,628
|
|
|
Accrued expenses
|
|
|
|
17,343
|
21,643
|
|
|
Current portion of long-term
debt
|
|
3,596
|
4,794
|
|
|
Deferred revenue
|
|
|
|
14,264
|
10,088
|
|
|
Liabilities from discontinued
operations
|
-
|
181
|
|
|
Total
current liabilities
|
|
44,325
|
44,334
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
-
|
1,199
|
|
|
Deferred tax liabilities
|
|
|
1,497
|
1,696
|
|
|
Other long-term liabilities
|
|
|
3,165
|
4,072
|
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
12,680
|
6,085
|
|
|
Total
liabilities and stockholders' equity
|
$
61,667
|
$
57,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HARRIS
INTERACTIVE INC.
|
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
(In
thousands, except share and per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Six
Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2012
|
2011
|
|
2012
|
2011
|
|
|
|
|
|
|
|
|
|
Revenue
from services
|
|
|
$
37,087
|
$
39,115
|
|
$
70,097
|
$
76,884
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Cost of services
|
|
|
21,898
|
24,380
|
|
41,353
|
48,010
|
|
Selling,
general and administrative
|
|
|
11,207
|
11,308
|
|
21,985
|
22,973
|
|
Depreciation and amortization
|
|
|
963
|
1,197
|
|
1,911
|
2,490
|
|
Restructuring and other charges
|
|
|
-
|
(72)
|
|
-
|
5,368
|
|
Total
operating expenses
|
|
|
34,068
|
36,813
|
|
65,249
|
78,841
|
|
Operating
income (loss)
|
|
|
3,019
|
2,302
|
|
4,848
|
(1,957)
|
|
Operating
margin
|
|
|
8.1%
|
5.9%
|
|
6.9%
|
-2.5%
|
|
Interest
expense, net
|
|
|
69
|
204
|
|
170
|
361
|
|
Income (loss) from continuing
operations before
income taxes
|
2,950
|
2,098
|
|
4,678
|
(2,318)
|
|
Provision
for income taxes
|
|
|
58
|
283
|
|
43
|
3
|
|
Income (loss) from continuing
operations
|
2,892
|
1,815
|
|
4,635
|
(2,321)
|
|
Loss from discontinued
operations
|
|
|
-
|
(190)
|
|
-
|
(2,011)
|
|
Net income (loss)
|
|
|
$
2,892
|
$
1,625
|
|
$
4,635
|
$
(4,332)
|
|
|
|
|
|
|
|
|
|
Basic net
income (loss) per share:
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
0.05
|
$
0.03
|
|
$
0.08
|
$
(0.04)
|
|
Discontinued operations
|
|
|
-
|
(0.00)
|
|
-
|
(0.04)
|
|
Basic net
income (loss) per share
|
|
|
$
0.05
|
$
0.03
|
|
$
0.08
|
$
(0.08)
|
|
|
|
|
|
|
|
|
|
Diluted
net income (loss) per share:
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
0.05
|
$
0.03
|
|
$
0.08
|
$
(0.04)
|
|
Discontinued operations
|
|
|
-
|
(0.00)
|
|
-
|
(0.04)
|
|
Diluted
net income (loss) per share
|
|
|
$
0.05
|
$
0.03
|
|
$
0.08
|
$
(0.08)
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
56,152,326
|
55,272,335
|
|
56,171,401
|
55,149,610
|
|
Diluted
|
|
|
57,412,623
|
55,294,426
|
|
57,395,320
|
55,149,610
|
|
|
|
|
|
|
|
|
|
Harris
Interactive Inc.
|
|
|
|
|
|
|
Three
and Six Months Ended December 31, 2012
|
|
|
|
|
|
|
Reconciliation of GAAP Net Income (Loss) to EBITDA
and Adjusted EBITDA
|
|
|
|
|
Amounts in thousands of USD
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Six
Months Ended
|
|
December 31,
|
|
December 31,
|
|
2012
|
2011
|
|
2012
|
2011
|
|
GAAP net
income (loss)
|
$
2,892
|
$
1,625
|
|
$
4,635
|
$
(4,332)
|
|
Loss
from discontinued operations
|
-
|
190
|
|
-
|
2,011
|
|
Interest
expense, net
|
69
|
204
|
|
170
|
361
|
|
Provision
for income taxes
|
58
|
283
|
|
43
|
3
|
|
Depreciation and amortization
|
1,127
|
1,462
|
|
2,243
|
2,980
|
|
EBITDA
|
$
4,146
|
$
3,764
|
|
$
7,091
|
$
1,023
|
|
Stock-based compensation (7)
|
679
|
271
|
|
1,248
|
550
|
|
Adjusted
EBITDA
|
$
4,825
|
$
4,035
|
|
$
8,339
|
$
1,573
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
4,825
|
$
4,035
|
|
$
8,339
|
$
1,573
|
|
Add-back
of restructuring and other charges
|
-
|
(72)
|
|
-
|
5,368
|
|
Adjusted
EBITDA with add-back of restructuring and other charges
|
$
4,825
|
$
3,963
|
|
$
8,339
|
$
6,941
|
|
|
|
|
|
|
|
(7)
Stock-based compensation expense represents the cost of stock-based
compensation
accounted for under the FASB guidance for stock-based
compensation.
|
|
Full
Year Fiscal 2013 Guidance
|
|
|
|
|
Reconciliation of GAAP Net Income (Loss) to EBITDA
and Adjusted EBITDA
|
|
|
|
Amounts in millions of USD
|
|
|
|
|
|
|
|
|
|
|
For the
Fiscal Year Ending June 30, 2013 (1)(2)
|
For the
Fiscal Year Ended June 30, 2012
|
|
|
GAAP net
income (loss)
|
$
7.0
|
$
(5.6)
|
|
|
Loss from
discontinued operations, net of tax
|
-
|
1.9
|
|
|
Interest
expense, net
|
0.2
|
0.7
|
|
|
Provision
for income taxes
|
0.1
|
0.2
|
|
|
Depreciation and amortization
|
4.4
|
5.6
|
|
|
EBITDA
|
$
11.7
|
$
2.8
|
|
|
Stock-based compensation (3)
|
2.3
|
1.8
|
|
|
Adjusted
EBITDA
|
$
14.0
|
$
4.6
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
14.0
|
$
4.6
|
|
|
Add-back
of restructuring and other charges
|
-
|
7.5
|
|
|
Adjusted
EBITDA with add-back of restructuring and other charges
|
$
14.0
|
$
12.1
|
|
|
|
|
|
|
(1) This
reconciliation is based on the midpoint of the Adjusted EBITDA
guidance range provided in this press release.
|
|
|
|
|
|
(2) The
amounts expressed in this column are based on current estimates as
of the date of this press release.
|
|
|
|
|
|
(3)
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