NEW YORK, Jan. 27, 2011 /PRNewswire/ -- Harris Interactive
Inc. (Nasdaq: HPOL), a leading innovative global market research
firm, today announced its second quarter fiscal 2011 financial
results, which show growth in revenue, bookings, and operating
income compared with the same prior year period. Excluding foreign
exchange rate differences, revenue was up 2%, driven by growth in
the U.K., Canada, France, Germany, and Asia, and bookings grew 4% as a result of
strong sales performance in Canada, France, and Germany. Operating income improved by nearly
47%, making the second quarter the company's most profitable
quarter in three years.
(Logo:
http://photos.prnewswire.com/prnh/20100518/NY06801LOGO )
Kimberly Till, President and
Chief Executive Officer of Harris Interactive, said, "As these
results indicate, we have made progress in stabilizing our overall
business. Further, consistent with one of our key strategic
initiatives, we are developing new products and solutions that
leverage technology and will provide us with new revenue streams.
Our new, social intelligence platform, Research Lifestreaming, and
its associated products and solutions, are generating both direct
and indirect sales. In addition, we are very focused on the mobile
space and are beginning to implement our strategy of exploiting
mobile devices for real-time data feeds, polling, and insights for
our clients."
Financial
Highlights
|
|
|
For the
Three Months
Ended
December 31,
|
For the Six
Months
Ended
December 31,
|
|
$ in millions –
unaudited
|
2010
|
2009
|
2010
|
2009
|
|
|
|
|
|
|
|
Revenue
|
$ 44.9
|
$ 44.6
|
$ 82.0
|
$ 83.6
|
|
Operating income
(loss)
|
$ 0.9
|
$ 0.6
|
$ (0.4)
|
$ 0.2
|
|
Net income (loss)
|
$ 0.3
|
$ 1.3
|
$ (1.0)
|
$ 0.7
|
|
Fully diluted net income (loss)
per share
|
$ 0.01
|
$ 0.02
|
$ (0.02)
|
$ 0.01
|
|
|
|
|
|
|
|
Adjusted EBITDA*
|
$ 3.0
|
$ 2.8
|
$ 3.8
|
$ 4.8
|
|
Adjusted EBITDA* with add-back
of restructuring and other charges
|
$ 3.7
|
$ 3.2
|
$ 4.5
|
$ 5.3
|
|
*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 second quarter of fiscal 2011 was
$44.9 million, as compared with
$44.6 million for the same prior
year period. Excluding foreign currency exchange rate differences,
revenue for the second quarter was up 2% compared with the same
prior year period.
- Operating income for the second quarter of fiscal 2011 was
$0.9 million, as compared with
operating income of $0.6 million for
the same prior year period.
- Net income for the second quarter of fiscal 2011 was
$0.3 million, or $0.01 per fully diluted share, as compared with
net income of $1.3 million, or
$0.02 per fully diluted share for the
same prior year period. Net income for the second quarter of fiscal
2010 included the favorable impact of a tax law change that
resulted in a $1.1 million tax
benefit.
- As of December 31, 2010, we had
$13.5 million in cash and
$13.2 million in outstanding debt.
During the first six months of fiscal 2011, we have made
$2.4 million in debt principal
payments.
- Cash provided by operations for the second quarter of fiscal
2011 was $3.3 million, as compared
with $2.6 million provided by
operations for the same prior year period.
- Bookings for the second quarter of fiscal 2011 were
$55.3 million, as compared with
$53.2 million for the same prior year
period. Excluding foreign currency exchange rate differences,
bookings for the second quarter were up 4% compared with the same
prior year period.
- Secured revenue (formerly referred to as backlog) for the
second quarter of fiscal 2011 was $55.4 million, as compared with $51.1 million for the same prior year
period. Excluding foreign currency exchange rate differences,
secured revenue for the second quarter was up 9% compared with the
same prior year period.
- Non-GAAP adjusted EBITDA* with add-back of restructuring and
other charges for the second quarter of fiscal 2011 was
$3.7 million, as compared with
$3.2 million for the same prior
year period.
Ms. Till continued, "On a country by country basis, we are
making progress in fixing the U.S. business, having rebuilt several
industry verticals and applying a proven approach to improve
performance in the others. Regarding Canada, I am pleased that our recent
restructuring of the business has had a positive impact on
performance, as we achieved meaningful year over year bookings,
revenue, and operating income growth in the quarter for the first
time since we acquired the business in August 2007. Germany, France and Asia also performed well in the quarter.
Although we have more work to do in the U.K., having lost a large
tracking study during the quarter, we are beginning to execute on
our plan to reposition the business and get it back on track over
the next few quarters."
Ms. Till concluded, "Over the past two years, we have made
substantial improvements in our product offerings, pricing, work
processes, global panel and survey platforms, financial stability,
and talent at all levels of the company. While these improvements
take time to impact the numbers, I believe that our business is in
the strongest position since we began the turnaround."
Second Quarter Fiscal 2011 Results Conference Call and
Webcast Access
Kimberly Till, President and
Chief Executive Officer, will host a conference call to discuss
these results on Thursday, January 27,
2011, 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)
|
|
|
|
|
|
|
|
|
December
31,
|
June
30,
|
|
|
|
2010
|
2010
|
|
Assets
|
|
Cash and cash
equivalents
|
$
13,499
|
$ 14,158
|
|
Accounts receivable,
net
|
28,463
|
23,735
|
|
Unbilled
receivables
|
7,400
|
7,566
|
|
Prepaids and other
current assets
|
4,235
|
3,722
|
|
Deferred tax
assets
|
430
|
375
|
|
|
Total current assets
|
54,027
|
49,556
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
4,392
|
5,626
|
|
Other intangibles,
net
|
15,644
|
16,382
|
|
Other assets
|
1,435
|
1,566
|
|
|
Total assets
|
$
75,498
|
$ 73,130
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholders' Equity
|
|
Accounts
payable
|
$
7,616
|
$
8,952
|
|
Accrued
expenses
|
16,841
|
16,768
|
|
Current portion of
long-term debt
|
4,794
|
4,794
|
|
Deferred
revenue
|
16,474
|
11,612
|
|
|
Total current
liabilities
|
45,725
|
42,126
|
|
|
|
|
|
|
Long-term debt
|
8,390
|
10,787
|
|
Deferred tax
liabilities
|
2,238
|
2,391
|
|
Other long-term
liabilities
|
1,687
|
1,792
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
17,458
|
16,034
|
|
|
Total liabilities and
stockholders' equity
|
$
75,498
|
$ 73,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
|
|
|
|
|
|
Revenue from services
|
$
44,940
|
$
44,629
|
$
81,954
|
$
83,564
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
Cost of
services
|
|
29,560
|
28,085
|
53,753
|
52,514
|
|
Selling, general and
administrative
|
12,312
|
13,849
|
24,876
|
26,811
|
|
Depreciation and
amortization
|
1,515
|
1,718
|
3,043
|
3,474
|
|
Restructuring and other
charges
|
679
|
383
|
679
|
531
|
|
Total operating
expenses
|
44,066
|
44,035
|
82,351
|
83,330
|
|
Operating income
(loss)
|
874
|
594
|
(397)
|
234
|
|
Operating
margin
|
1.9%
|
1.3%
|
-0.5%
|
0.3%
|
|
|
|
|
|
|
|
|
Interest and other
income
|
(8)
|
(12)
|
(23)
|
(27)
|
|
Interest expense
|
|
316
|
499
|
785
|
1,036
|
|
Income (loss) from
operations before income taxes
|
566
|
107
|
(1,159)
|
(775)
|
|
Provision (benefit) for income
taxes
|
223
|
(1,227)
|
(165)
|
(1,476)
|
|
Net income
(loss)
|
|
$
343
|
$
1,334
|
$
(994)
|
$
701
|
|
|
|
|
|
|
|
|
Basic net income (loss) per
share
|
$
0.01
|
$
0.02
|
$
(0.02)
|
$
0.01
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per
share
|
$
0.01
|
$
0.02
|
$
(0.02)
|
$
0.01
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding -
|
|
|
|
|
|
|
Basic
|
54,472,556
|
53,939,876
|
54,447,673
|
53,919,859
|
|
|
Diluted
|
54,542,596
|
54,060,635
|
54,447,673
|
54,050,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Income to
EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
|
December
31,
|
December
31,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
GAAP net income
(loss)
|
$
343
|
$
1,334
|
$ (994)
|
$ 701
|
|
Interest income
|
(8)
|
(12)
|
(23)
|
(27)
|
|
Interest expense
|
316
|
499
|
785
|
1,036
|
|
Provision (benefit) for income
taxes
|
223
|
(1,227)
|
(165)
|
(1,476)
|
|
Depreciation and
amortization
|
1,937
|
2,077
|
3,895
|
4,214
|
|
EBITDA
|
$
2,811
|
$
2,671
|
$ 3,498
|
$ 4,448
|
|
Stock-based compensation
(1)
|
171
|
162
|
350
|
321
|
|
Adjusted EBITDA
|
$
2,982
|
$
2,833
|
$ 3,848
|
$ 4,769
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
2,982
|
$
2,833
|
$ 3,848
|
$ 4,769
|
|
Add-back of restructuring and
other charges
|
679
|
383
|
679
|
531
|
|
Adjusted EBITDA with add-back of
restructuring and other charges
|
$
3,661
|
$
3,216
|
$ 4,527
|
$ 5,300
|
|
|
|
|
|
|
|
(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