NEW YORK, Aug. 19 /PRNewswire-FirstCall/ -- Harris
Interactive Inc. (Nasdaq: HPOL), a leading innovative global market
research firm, today announced its fourth quarter and full year
fiscal 2010 financial results. Kimberly Till, President and
Chief Executive Officer of Harris Interactive, said, "During fiscal
2010, we continued to make progress in improving our financial
performance, despite challenging market conditions. Despite a
9% revenue decrease from fiscal 2009, we improved our Adjusted
EBITDA, with the add-back of restructuring and other charges, from
$6.9 million, or 3.7% of revenue, in
fiscal 2009 to $8.9 million, or 5.3%
of revenue, in fiscal 2010 and, from an operating standpoint, we
essentially achieved break even performance on a consolidated basis
for the fiscal year. Additionally, we were able to contain
the revenue decline to the first half of the fiscal year."
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Till continued, "In addition to improving our financial
performance, we accomplished many key initiatives during fiscal
2010, including launching four new commercial products, most
notably Research Lifestreaming, a cutting edge research platform
with social media and mobile components, hiring several leading
market research professionals with extensive expertise in critical
areas of our business, and renegotiating our credit agreement to
obtain more favorable terms."
Financial
Highlights
|
|
|
For the Three Months Ended June
30,
|
For the Twelve Months Ended June
30,
|
|
$ in millions –
unaudited
|
2010
|
2009
|
2010
|
2009
|
|
|
|
|
|
|
|
Revenue
|
$
43.6
|
$
43.5
|
$ 168.4
|
$ 184.3
|
|
Operating income
(loss)
|
$
0.2
|
$
(0.1)
|
$
(0.5)
|
$ (56.4)
|
|
Net loss
|
$
(1.3)
|
$
(0.7)
|
$
(2.2)
|
$ (75.3)
|
|
Fully diluted net loss per
share
|
$
(0.02)
|
$
(0.01)
|
$ (0.04)
|
$ (1.41)
|
|
|
|
|
|
|
|
Adjusted EBITDA*
|
$
2.3
|
$
2.3
|
$
8.3
|
$
(5.1)
|
|
Adjusted EBITDA* with add-back
of restructuring and other charges
|
$
2.3
|
$
2.5
|
$
8.9
|
$
6.9
|
|
*EBITDA is a non-GAAP measure.
Adjusted EBITDA, also a non-GAAP measure, is EBITDA less
stock-based compensation and non-cash goodwill impairment
charges.
|
|
|
|
|
|
|
Key Financial Statistics
- Total revenue for the fourth quarter of fiscal 2010 was
$43.6 million, as compared with
$43.5 million for the same prior
year period. Total revenue was $168.4
million for fiscal 2010, as compared with $184.3 million for fiscal 2009. Foreign
currency exchange rate differences had a neutral impact on revenue
for the fourth quarter and full year fiscal 2010, as compared with
the same prior year periods.
- Operating income for the fourth quarter of fiscal 2010 was
$0.2 million, as compared with an
operating loss of $(0.1) million for
the same prior year period. Our operating loss for fiscal
2010 was $(0.5) million, as compared
with an operating loss of $(56.4)
million for fiscal 2009.
- Net loss for the fourth quarter of fiscal 2010 was $(1.3) million, or $(0.02) per fully diluted share, as compared with
a net loss of $(0.7) million, or
$(0.01) per fully diluted share for
the same prior year period. Our net loss for fiscal 2010 was
$(2.2) million, or $(0.04) per fully diluted share, as compared with
a net loss of $(75.3) million, or
$(1.41) per fully diluted share for
fiscal 2009. Our net loss for the fourth quarter and full
fiscal year 2010 includes a $0.7
million loss on extinguishment of debt in connection with
amending and restating our credit agreement.
- As of June 30, 2010, we had cash
of $14.2 million and $15.6 million in outstanding debt. We
reduced the amount of our outstanding debt by $6.9 million during fiscal 2010.
- Cash from operations for the fourth quarter of fiscal 2010 was
$4.5 million, as compared with
$3.4 million for the same prior year
period. For fiscal 2010, cash from operations was
$6.5 million, as compared with
$(4.3) million for fiscal 2009.
- Bookings for the fourth quarter of fiscal 2010 were
$35.7 million, as compared with
$36.3 million for the same prior year
period. Excluding foreign currency exchange rate differences,
bookings for the fourth quarter were up 5% compared with the same
prior year period.
- Secured revenue (formerly referred to as backlog) for the
fourth quarter of fiscal 2010 was $46.6 million as compared with $48.8 million for the same prior year
period. Secured revenue for the fourth quarter of fiscal 2010
included a $1.0 million unfavorable
foreign currency impact, as compared with the same prior year
period.
- Non-GAAP Adjusted EBITDA* with add-back of restructuring and
other charges for the fourth quarter of fiscal 2010 was
$2.3 million, as compared with
$2.5 million for the same prior
year period. Non-GAAP Adjusted EBITDA* with add-back of
restructuring and other charges for fiscal 2010 was $8.9 million, as compared with $6.9 million for fiscal 2009.
Ms. Till continued, "Looking back at fiscal 2010, I believe we
have made significant progress in stabilizing the U.S. and
Asia businesses. France had
a strong year and is well positioned for growth and Germany is on track. Although we still
need to improve our performance in Canada and the U.K., we are developing and
implementing plans that should bring these businesses to
profitability on a sustainable basis in the coming quarters.
Once this happens, every business worldwide should be
profitable and the first phase of our roadmap, turning around all
parts of the business, will be accomplished."
Ms. Till concluded, "Our number one focus for fiscal 2011 is
rebuilding revenue. Key drivers of revenue growth include our
new products and capabilities, particularly Research Lifestreaming,
the new leadership we put in place in underperforming areas of our
business, and improved sales resources and processes. We
intend to exploit the Research Lifestreaming platform, which has
been received positively by our clients, to grow incremental
revenue and drive sales of our existing offerings, including brand
and corporate reputation. Further, we expect that our
improved leadership and enhanced sales resources and processes will
increase our sales and delivery capabilities, and in turn, lead to
revenue growth. We also continue to focus on our cost structure and
have several operational initiatives underway that should
contribute to improved profitability in fiscal 2011."
Fourth Quarter and Full Year Fiscal 2010 Results Conference
Call and Webcast Access
Kimberly Till, President and CEO,
will host a conference call to discuss these results on
Thursday, August 19, 2010, 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 in relation to this
release 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 and restructuring and
related charges, quarterly variations in financial results, actions
of competitors, the Company's ability to develop and maintain
products and services attractive to the market, and uncertainties
surrounding compliance with certain NASDAQ listing
requirements.
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 healthcare, technology, public affairs,
energy, telecommunications, financial services, insurance, media,
retail, restaurant, and consumer package goods. Serving clients in
over 215 countries and territories through our North American,
European, and Asian 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.
HPOL – E
HARRIS INTERACTIVE
INC.
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
(In thousands, except share and
per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
June 30,
|
June 30,
|
|
|
|
2010
|
2009
|
|
Assets
|
|
Cash and cash
equivalents
|
$14,158
|
$16,752
|
|
Marketable
securities
|
-
|
1,010
|
|
Accounts receivable,
net
|
23,735
|
23,163
|
|
Unbilled
receivables
|
7,566
|
6,520
|
|
Prepaids and other
current assets
|
3,722
|
7,244
|
|
Deferred tax
assets
|
375
|
632
|
|
|
Total current assets
|
49,556
|
55,321
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
5,626
|
8,015
|
|
Other intangibles,
net
|
16,382
|
18,540
|
|
Deferred tax
assets
|
-
|
284
|
|
Other assets
|
1,566
|
2,367
|
|
|
Total assets
|
$73,130
|
$84,527
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
Accounts
payable
|
$ 8,952
|
$ 6,738
|
|
Accrued
expenses
|
16,768
|
18,349
|
|
Current portion of
long-term debt
|
4,794
|
6,925
|
|
Deferred
revenue
|
11,612
|
12,531
|
|
|
Total current
liabilities
|
42,126
|
44,543
|
|
|
|
|
|
|
Long-term debt
|
10,787
|
15,581
|
|
Deferred tax
liabilities
|
2,391
|
3,163
|
|
Other long-term
liabilities
|
1,792
|
3,117
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
16,034
|
18,123
|
|
|
Total liabilities and
stockholders' equity
|
$73,130
|
$84,527
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
|
|
|
|
|
Revenue from services
|
$
43,648
|
$
43,477
|
$
168,415
|
$
184,334
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
Cost of
services
|
28,182
|
27,760
|
107,266
|
115,235
|
|
Selling, general and
administrative
|
13,694
|
13,794
|
54,335
|
65,678
|
|
Depreciation and
amortization
|
1,586
|
1,783
|
6,714
|
7,610
|
|
Restructuring and other
charges
|
-
|
198
|
623
|
12,010
|
|
Goodwill impairment
charge
|
-
|
-
|
-
|
40,250
|
|
Total operating
expenses
|
43,462
|
43,535
|
168,938
|
240,783
|
|
Operating income
(loss)
|
186
|
(58)
|
(523)
|
(56,449)
|
|
Operating margin
|
0.4%
|
-0.1%
|
-0.3%
|
-30.6%
|
|
|
|
|
|
|
|
Interest and other
income
|
(1)
|
(21)
|
(58)
|
(400)
|
|
Loss on extinguishment of
debt
|
724
|
-
|
724
|
-
|
|
Interest expense
|
469
|
955
|
2,029
|
3,433
|
|
Loss from
operations before income taxes
|
(1,006)
|
(992)
|
(3,218)
|
(59,482)
|
|
Provision (benefit) for income
taxes
|
303
|
(257)
|
(1,052)
|
15,849
|
|
Net loss
|
$
(1,309)
|
$
(735)
|
$
(2,166)
|
$
(75,331)
|
|
|
|
|
|
|
|
Basic and diluted net loss per
share
|
$
(0.02)
|
$
(0.01)
|
$
(0.04)
|
$
(1.41)
|
|
|
|
|
|
|
|
Basic and diluted weighted
average shares outstanding
|
54,278,345
|
53,749,156
|
54,089,971
|
53,547,670
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Income to
EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Three months
ended
|
Twelve months
ended
|
|
|
June 30,
|
June 30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
GAAP net loss
|
$
(1,309)
|
$
(735)
|
$
(2,166)
|
$(75,331)
|
|
Interest income
|
(1)
|
(21)
|
(58)
|
(400)
|
|
Loss on extinguishment of
debt
|
724
|
-
|
724
|
-
|
|
Interest expense
|
469
|
955
|
2,029
|
3,433
|
|
Provision (benefit) for income
taxes
|
303
|
(257)
|
(1,052)
|
15,849
|
|
Depreciation and
amortization
|
1,920
|
2,182
|
8,144
|
9,125
|
|
EBITDA
|
$
2,106
|
$ 2,124
|
$
7,621
|
$(47,324)
|
|
Goodwill impairment
charge
|
-
|
-
|
-
|
40,250
|
|
Stock-based compensation
(1)
|
157
|
212
|
680
|
1,965
|
|
Adjusted EBITDA
|
$
2,263
|
$ 2,336
|
$
8,301
|
$ (5,109)
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
2,263
|
$ 2,336
|
$
8,301
|
$ (5,109)
|
|
Add-back of restructuring and
other charges
|
-
|
198
|
623
|
12,010
|
|
Adjusted EBITDA with add-back of
specified GAAP charges
|
$
2,263
|
$ 2,534
|
$
8,924
|
$ 6,901
|
|
|
|
|
|
|
|
(1) Stock-based compensation
expense represents the cost of stock-based compensation awarded by
the Company to its employees 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.
Copyright . 19 PR Newswire