NEW YORK, April 28, 2011 /PRNewswire/ -- Harris Interactive
Inc. (NASDAQ: HPOL), a leading innovative global market research
firm, today announced its third quarter fiscal 2011 financial
results. Excluding foreign exchange rate differences, revenue was
down 9%, driven by declines in the U.K. and U.S., and bookings
decreased 13% as a result of declines in the U.K., U.S.,
Canada and Asia. The Company's operating loss grew from
$0.9 million for last year's third
quarter to $1.9 million for the third
quarter of fiscal 2011, and was largely caused by the decline in
revenue for the quarter.
(Logo: http://photos.prnewswire.com/prnh/20110412/MM81191
)
Kimberly Till, President and
Chief Executive Officer of Harris Interactive, said, "While Q3 has
traditionally been a weak quarter seasonally, our results were very
disappointing and it is clear that we have more work to do to
achieve acceptable operating performance. We are in the process of
thoroughly reviewing our operations and business model to identify
the changes we need to make to address this problem. To assist in
this review, we engaged the services of Angrisani Turnarounds, LLC,
led by Al Angrisani, who previously
served as the President and Chief Operating Officer of Harris
Interactive and Chief Executive Officer of Greenfield Online until its 2008 sale to
Microsoft. Mr. Angrisani has presented the Company with a report
with specific recommendations that we are currently evaluating as
part of our efforts to improve our operating profitability."
Financial Highlights
|
|
|
For the
Three
Months
Ended
March
31,
|
For the
Nine
Months
Ended
March
31,
|
|
$ in millions –
unaudited
|
2011
|
2010
|
2011
|
2010
|
|
|
|
|
|
|
|
Revenue
|
$ 38.1
|
$ 41.2
|
$ 120.0
|
$ 124.8
|
|
Operating loss
|
$ (1.9)
|
$ (0.9)
|
$ (2.3)
|
$ (0.7)
|
|
Net loss
|
$ (2.3)
|
$ (1.6)
|
$ (3.3)
|
$ (0.9)
|
|
Fully diluted net loss per
share
|
$ (0.04)
|
$ (0.03)
|
$ (0.06)
|
$ (0.02)
|
|
|
|
|
|
|
|
Adjusted EBITDA*
|
$
0.1
|
$
1.3
|
$
4.0
|
$
6.0
|
|
Adjusted EBITDA* with add-back
of restructuring and other charges
|
$
0.6
|
$
1.4
|
$
5.1
|
$
6.7
|
|
*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 third quarter of fiscal 2011 was
$38.1 million, as compared with
$41.2 million for the same prior
year period. Excluding foreign currency exchange rate differences,
revenue for the third quarter was down 9% compared with the same
prior year period. Total revenue for the first nine months of
fiscal 2011 was $120.0 million, as
compared with $124.8 million for the
same prior year period. Excluding foreign currency exchange rate
differences, revenue for the first nine months of fiscal 2011 was
down 4% compared with the same prior year period.
- Operating loss for the third quarter of fiscal 2011 was
$(1.9) million, as compared with an
operating loss of $(0.9) million for
the same prior year period. Our operating loss for the third
quarter of fiscal 2011 included $0.4
million of restructuring and other charges, as compared with
$0.1 million for the same prior year
period. Our operating loss for the first nine months of fiscal 2011
was $(2.3) million, as compared with
an operating loss of $(0.7) million
for the same prior year period. Our operating loss for the first
nine months of fiscal 2011 included $1.1
million of restructuring and other charges, as compared with
$0.6 million for the same prior year
period.
- Net loss for the third quarter of fiscal 2011 was $(2.3) million, or $(0.04) per fully diluted share, as compared with
a net loss of $(1.6) million, or
$(0.03) per fully diluted share for
the same prior year period. Out net loss for the first nine months
of fiscal 2011 was $(3.3) million, or
$(0.06) per fully diluted share, as
compared with a net loss of $(0.9)
million, or $(0.02) per fully
diluted share, for the same prior year period.
- As of March 31, 2011, we had
$12.5 million in cash and
$12.0 million in outstanding debt.
During the first nine months of fiscal 2011, we made
$3.6 million in debt principal
payments.
- Cash provided by operations for the third quarter of fiscal
2011 was $0.1 million, as compared
with $0.9 million provided by
operations for the same prior year period. Cash provided by
operations for the first nine months of fiscal 2011 was
$1.1 million, as compared with
$2.0 million provided by operations
for the same prior year period.
- Bookings for the third quarter of fiscal 2011 were $40.9 million, as compared with $44.9 million for the same prior year period.
Excluding foreign currency exchange rate differences, bookings for
the third quarter were down 13% compared with the same prior year
period.
- Secured revenue for the third quarter of fiscal 2011 was
$56.5 million, as compared with
$52.9 million for the same prior
year period. Excluding foreign currency exchange rate differences,
secured revenue for the third quarter was up 5% compared with the
same prior year period.
- Non-GAAP adjusted EBITDA* with add-back of restructuring and
other charges for the third quarter of fiscal 2011 was
$0.6 million, as compared with $1.4 million for the same prior year period.
Non-GAAP adjusted EBITDA* with add-back of restructuring and other
charges for the first nine months of fiscal 2011 was $5.1 million, as compared with $6.7 million for the same prior year period.
Third 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, April 28,
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, 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
June
30,
|
|
|
|
|
|
|
2011
|
2010
|
|
Assets
|
|
Cash and cash
equivalents
|
|
|
$
12,500
|
$ 14,158
|
|
Accounts receivable,
net
|
|
|
23,614
|
23,735
|
|
Unbilled receivables
|
|
|
8,200
|
7,566
|
|
Prepaids and other current
assets
|
|
4,682
|
3,722
|
|
Deferred tax assets
|
|
|
547
|
375
|
|
|
Total current assets
|
|
|
49,543
|
49,556
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment,
net
|
3,964
|
5,626
|
|
Other intangibles,
net
|
|
|
15,217
|
16,382
|
|
Other assets
|
|
|
|
1,589
|
1,566
|
|
|
Total assets
|
|
|
$
70,313
|
$ 73,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholders' Equity
|
|
Accounts payable
|
|
|
|
$
6,742
|
$
8,952
|
|
Accrued expenses
|
|
|
|
16,697
|
16,768
|
|
Current portion of long-term
debt
|
|
4,794
|
4,794
|
|
Deferred revenue
|
|
|
|
14,942
|
11,612
|
|
|
Total current
liabilities
|
|
43,175
|
42,126
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
7,191
|
10,787
|
|
Deferred tax
liabilities
|
|
|
2,363
|
2,391
|
|
Other long-term
liabilities
|
|
|
1,518
|
1,792
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
16,066
|
16,034
|
|
|
Total liabilities and
stockholders' equity
|
$
70,313
|
$ 73,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
|
|
|
|
|
|
|
Revenue from services
|
|
|
$
38,087
|
$
41,203
|
$
120,041
|
$
124,767
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
Cost of
services
|
|
|
25,138
|
26,569
|
78,892
|
79,083
|
|
Selling, general and
administrative
|
12,870
|
13,829
|
37,745
|
40,641
|
|
Depreciation and
amortization
|
|
1,517
|
1,656
|
4,560
|
5,130
|
|
Restructuring and other
charges
|
|
448
|
92
|
1,127
|
623
|
|
Total operating
expenses
|
|
39,973
|
42,146
|
122,324
|
125,477
|
|
Operating loss
|
|
|
(1,886)
|
(943)
|
(2,283)
|
(710)
|
|
Operating
margin
|
|
|
-5.0%
|
-2.3%
|
-1.9%
|
-0.6%
|
|
|
|
|
|
|
|
|
|
Interest and other
income
|
|
(13)
|
(30)
|
(35)
|
(57)
|
|
Interest expense
|
|
|
285
|
524
|
1,070
|
1,560
|
|
Loss from
operations before income taxes
|
(2,158)
|
(1,437)
|
(3,318)
|
(2,213)
|
|
Provision (benefit) for income
taxes
|
177
|
121
|
12
|
(1,354)
|
|
Net loss
|
|
|
$
(2,335)
|
$
(1,558)
|
$
(3,330)
|
$
(859)
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per
share
|
$
(0.04)
|
$
(0.03)
|
$
(0.06)
|
$
(0.02)
|
|
|
|
|
|
|
|
|
|
Basic and diluted weighted
average shares outstanding
|
54,658,105
|
54,247,286
|
54,516,793
|
54,027,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Net Loss
to EBITDA and Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
Nine months
ended
|
|
|
March
31,
|
March
31,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
GAAP net loss
|
$
(2,335)
|
$
(1,558)
|
$ (3,330)
|
$ (859)
|
|
Interest income
|
(13)
|
(30)
|
(35)
|
(57)
|
|
Interest expense
|
285
|
524
|
1,070
|
1,560
|
|
Provision (benefit) for income
taxes
|
177
|
121
|
12
|
(1,354)
|
|
Depreciation and
amortization
|
1,820
|
2,011
|
5,715
|
6,225
|
|
EBITDA
|
$
(66)
|
$
1,068
|
$ 3,432
|
$ 5,515
|
|
Stock-based compensation
(1)
|
173
|
203
|
523
|
523
|
|
Adjusted EBITDA
|
$
107
|
$
1,271
|
$ 3,955
|
$ 6,038
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
107
|
$
1,271
|
$ 3,955
|
$ 6,038
|
|
Add-back of restructuring and
other charges
|
448
|
92
|
1,127
|
623
|
|
Adjusted EBITDA with add-back of
restructuring and other charges
|
$
555
|
$
1,363
|
$ 5,082
|
$ 6,661
|
|
|
|
|
|
|
|
(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