NEW YORK, Sept. 28, 2011 /PRNewswire/ -- Harris Interactive
Inc. (NASDAQ: HPOL), a global custom market research firm, today
announced its fourth quarter and full year fiscal 2011 financial
results.
(Logo:
http://photos.prnewswire.com/prnh/20100518/NY06801LOGO )
Al Angrisani, Interim Chief
Executive Officer of Harris Interactive commented, "It has been
approximately 100 days since I assumed the role of Interim CEO and
initiated a turnaround program. The financial results below are the
product of a previous turnaround effort that was not successful.
Putting this disappointing fiscal 2011 behind us, we are now
focused on remedying the major challenges that face the Company as
we attempt to restore the Company's business model back to
viability and begin the process of creating shareholder value.
Unfortunately, this is not going to be a quick or easy fix."
Financial
Snapshot
|
|
|
For the
Three
Months Ended
June 30,
|
For the
Twelve
Months Ended
June 30,
|
|
$ in millions –
unaudited
|
2011
|
2010
|
2011
|
2010
|
|
|
|
|
|
|
|
Revenue
|
$ 45.2
|
$ 43.6
|
$ 165.3
|
$ 168.4
|
|
Operating income
(loss)
|
$
(4.7)
|
$
0.2
|
$ (7.0)
|
$ (0.5)
|
|
Net loss
|
$
(5.1)
|
$ (1.3)
|
$ (8.5)
|
$ (2.2)
|
|
Fully diluted net loss per
share
|
$ (0.09)
|
$ (0.02)
|
$ (0.15)
|
$ (0.04)
|
|
|
|
|
|
|
|
Adjusted EBITDA*
|
$
(2.8)
|
$
2.3
|
$
1.1
|
$ 8.3
|
|
Adjusted EBITDA* with add-back
of
restructuring and other
charges
|
$
1.5
|
$
2.3
|
$
6.5
|
$ 8.9
|
|
|
|
|
|
|
|
|
*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 2011 was
$45.2 million, as compared with
$43.6 million for the same prior
year period. Excluding foreign currency exchange rate differences,
revenue for the fourth quarter was down 1% compared with the same
prior year period.
- Operating loss for the fourth quarter of fiscal 2011 was
$(4.7) million, as compared with
operating income of $0.2 million for
the same prior year period. Our operating loss for the fourth
quarter of fiscal 2011 included $4.3
million of restructuring and other charges, as compared with
no such charges for the same prior year period.
- Net loss for the fourth quarter of fiscal 2011 was $(5.1) million, or $(0.09) per fully diluted share, as compared with
a net loss of $(1.3) million, or
$(0.02) per fully diluted share for
the same prior year period.
- At June 30, 2011, we had
$14.2 million in cash and
$10.8 million in outstanding debt.
During fiscal 2011, we made $4.8
million in debt principal payments. At June 30, 2011, we were not in compliance with
certain financial covenants under our credit agreement. On
September 27, 2011, we amended our
credit agreement and received a permanent waiver of such
non-compliance. For additional information regarding the waiver and
amended credit agreement, please see the Form 8-K filed today with
the Securities and Exchange Commission.
- Cash provided by operations for the fourth quarter of fiscal
2011 was $2.9 million, as compared
with $4.5 million provided by
operations for the same prior year period.
- Bookings for the fourth quarter of fiscal 2011 were
$34.6 million, as compared with
$35.7 million for the same prior year
period. Excluding foreign currency exchange rate differences,
bookings for the fourth quarter were down 10% compared with the
same prior year period.
- Secured revenue for the fourth quarter of fiscal 2011 was
$45.9 million, as compared with
$44.9 million for the same prior
year period. Excluding foreign currency exchange rate differences,
secured revenue for the fourth quarter was down 2% 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 2011 was
$1.5 million, as compared with
$2.3 million for the same prior
year period.
Fourth Quarter and Full Year Fiscal 2011 Conference Call and
Webcast Access
The Company has scheduled a conference call on Tuesday,
October 4, 2011 at 8:30 am ET to
discuss these results. Al Angrisani,
Interim Chief Executive Officer, will host the conference call.
Formal remarks will be followed by a question and answer
session.
Details regarding the conference call and webcast access will be
provided separately.
Cautionary Note Regarding Forward Looking Statements
Certain statements in this press 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, the Company's ability to
remain in compliance with the financial covenants in its credit
agreement, 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,
|
|
|
2011
|
2010
|
|
Assets
|
|
Cash and cash
equivalents
|
$
14,224
|
$ 14,158
|
|
Accounts receivable,
net
|
26,480
|
23,735
|
|
Unbilled
receivables
|
7,580
|
7,566
|
|
Prepaid expenses and
other current assets
|
3,619
|
3,722
|
|
Deferred tax
assets
|
306
|
375
|
|
|
Total current assets
|
52,209
|
49,556
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
3,447
|
5,626
|
|
Other intangibles,
net
|
14,582
|
16,382
|
|
Other assets
|
1,610
|
1,566
|
|
|
Total assets
|
$
71,848
|
$ 73,130
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholders' Equity
|
|
Accounts
payable
|
$
9,521
|
$
8,952
|
|
Accrued
expenses
|
21,249
|
16,768
|
|
Current portion of
outstanding debt
|
4,794
|
4,794
|
|
Deferred
revenue
|
13,872
|
11,612
|
|
|
Total current
liabilities
|
49,436
|
42,126
|
|
|
|
|
|
|
Long-term debt
|
5,993
|
10,787
|
|
Deferred tax
liabilities
|
2,195
|
2,391
|
|
Other long-term
liabilities
|
2,752
|
1,792
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
11,472
|
16,034
|
|
|
Total liabilities and
stockholders' equity
|
$
71,848
|
$ 73,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
|
|
|
|
|
Revenue from services
|
$
45,223
|
$
43,648
|
$
165,264
|
$
168,415
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
Cost of
services
|
29,995
|
28,182
|
108,887
|
107,266
|
|
Selling, general and
administrative
|
14,188
|
13,694
|
51,932
|
54,335
|
|
Depreciation and
amortization
|
1,480
|
1,586
|
6,040
|
6,714
|
|
Restructuring and other
charges
|
4,266
|
-
|
5,392
|
623
|
|
Total operating
expenses
|
49,929
|
43,462
|
172,251
|
168,938
|
|
Operating loss
|
(4,706)
|
186
|
(6,987)
|
(523)
|
|
Operating
margin
|
-10.4%
|
0.4%
|
-4.2%
|
-0.3%
|
|
|
|
|
|
|
|
Interest and other
income
|
(12)
|
(1)
|
(47)
|
(58)
|
|
Loss on
extinguishment
|
-
|
724
|
-
|
724
|
|
Interest expense
|
289
|
469
|
1,359
|
2,029
|
|
Loss from
operations before income taxes
|
(4,983)
|
(1,006)
|
(8,299)
|
(3,218)
|
|
Provision (benefit) for income
taxes
|
142
|
303
|
154
|
(1,052)
|
|
Net loss
|
$
(5,125)
|
$
(1,309)
|
$
(8,453)
|
$
(2,166)
|
|
|
|
|
|
|
|
Basic and diluted net loss per
share
|
$
(0.09)
|
$
(0.02)
|
$
(0.15)
|
$
(0.04)
|
|
|
|
|
|
|
|
Basic and diluted weighted
average shares outstanding
|
54,716,529
|
54,278,345
|
54,566,590
|
54,089,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Net Loss
to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Three months
ended
|
Twelve
months ended
|
|
|
June
30,
|
June
30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
GAAP net loss
|
$
(5,125)
|
$
(1,309)
|
$
(8,453)
|
$ (2,166)
|
|
Interest income
|
(12)
|
(1)
|
(47)
|
(58)
|
|
Loss on extinguishment of
debt
|
-
|
724
|
-
|
724
|
|
Interest expense
|
289
|
469
|
1,359
|
2,029
|
|
Provision (benefit) for income
taxes
|
142
|
303
|
154
|
(1,052)
|
|
Depreciation and
amortization
|
1,736
|
1,920
|
7,451
|
8,144
|
|
EBITDA
|
$
(2,970)
|
$
2,106
|
$
464
|
$ 7,621
|
|
Stock-based compensation
(1)
|
160
|
157
|
682
|
680
|
|
Adjusted EBITDA
|
$
(2,810)
|
$
2,263
|
$
1,146
|
$ 8,301
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
(2,810)
|
$
2,263
|
$
1,146
|
$ 8,301
|
|
Add-back of restructuring and
other charges
|
4,266
|
-
|
5,392
|
623
|
|
Adjusted EBITDA with add-back of
restructuring and
other charges
|
$
1,456
|
$
2,263
|
$
6,538
|
$ 8,924
|
|
|
|
|
|
|
|
(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