NEW YORK, Nov. 1, 2011 /PRNewswire/ -- Harris Interactive
Inc. (NASDAQ: HPOL), a global custom market research firm, today
announced its first quarter fiscal 2012 financial results.
(Logo:
http://photos.prnewswire.com/prnh/20100518/NY06801LOGO)
Al Angrisani, Interim Chief
Executive Officer of Harris Interactive commented, "Although we
have made some progress this quarter in rightsizing our business,
rationalizing our organizational structure, and improving our
liquidity, there are major challenges remaining. One of the core
challenges is solving systemic sales problems at the company that
have led to sales declines over the last several years, including
in this quarter. As I have said previously, the resolution of these
challenges will not occur quickly or easily as we continue to
implement our turnaround plan."
Key Financial Statistics
|
|
|
USD in millions –
unaudited
|
For the
Three Months Ended September 30,
|
|
|
2011
|
2010
|
|
|
Revenue (1)
|
$ 38.3
|
$ 37.0
|
|
|
Operating loss (2)
|
$
(5.9)
|
$
(1.3)
|
|
|
Net loss
|
$
(6.0)
|
$
(1.3)
|
|
|
Fully diluted net loss per
share
|
$ (0.11)
|
$ (0.02)
|
|
|
|
|
|
|
Adjusted EBITDA (3)
|
$
(4.1)
|
$
0.9
|
|
|
Adjusted EBITDA with add-back of
restructuring and other charges (3)
|
$
2.8
|
$
0.9
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$ 12.4
|
$ 11.3
|
|
|
Outstanding debt
|
$
9.6
|
$ 14.4
|
|
|
Cash provided by (used in)
operations
|
$
0.2
|
$
(2.2)
|
|
|
|
|
|
|
Bookings (4)
|
$ 31.4
|
$ 35.4
|
|
|
Secured revenue (5)
|
$ 39.0
|
$ 43.3
|
|
|
|
|
(1) Amounts include the impact
of foreign currency exchange rate differences. Excluding the impact
of foreign currency exchange rate differences, revenue for the
three months ended September 30, 2011 increased by 1% over the same
prior year period.
|
|
|
(2) Operating loss for the three
months ended September 30, 2011 included restructuring and other
charges of $6.9 million. There were no such charges for the same
prior year period.
|
|
|
(3) EBITDA is a non-GAAP
measure. Adjusted EBITDA, also a non-GAAP measure, is EBITDA less
stock-based compensation.
|
|
|
(4) Amounts include the impact
of foreign currency exchange rate differences. Excluding the impact
of foreign currency exchange rate differences, bookings for the
three months ended September 30, 2011 decreased by 9% over the same
prior year period. Bookings for the three months ended September
30, 2011 included negative bookings of $0.7 million for projects
that were cancelled in connection with the closure of our Asia
operations in September 2011.
|
|
|
(5) Amounts include the impact
of foreign currency exchange rate differences. Excluding the impact
of foreign currency exchange rate differences, secured revenue for
the three months ended September 30, 2011 decreased by 10% over the
same prior year period.
|
|
|
|
|
First Quarter Fiscal 2012 Results Conference Call and Webcast
Access
Al Angrisani, Interim Chief
Executive Officer, will host a conference call to discuss these
results on Tuesday, November 1, 2011,
at 8:30 a.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, 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 health care, technology, public affairs,
energy, telecommunications, financial services, insurance, media,
retail, restaurant, and consumer package goods. Serving clients in
more than 215 countries and territories through our North American
and European 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
June
30,
|
|
|
|
|
|
2011
|
2011
|
|
|
Assets
|
|
|
Cash and cash
equivalents
|
|
|
$
12,372
|
$ 14,224
|
|
|
Accounts receivable,
net
|
|
|
21,397
|
26,480
|
|
|
Unbilled
receivables
|
|
|
7,614
|
7,580
|
|
|
Prepaid expenses and
other current assets
|
3,789
|
3,619
|
|
|
Deferred tax
assets
|
|
|
634
|
306
|
|
|
Total current assets
|
|
|
45,806
|
52,209
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,481
|
3,447
|
|
|
Other intangibles,
net
|
|
|
12,719
|
14,582
|
|
|
Other assets
|
|
|
1,522
|
1,610
|
|
|
Total assets
|
|
|
$
62,528
|
$ 71,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholders' Equity
|
|
|
Accounts
payable
|
|
|
$
8,330
|
$
9,521
|
|
|
Accrued
expenses
|
|
|
21,858
|
21,249
|
|
|
Current portion of
outstanding debt
|
4,794
|
4,794
|
|
|
Deferred
revenue
|
|
|
11,992
|
13,872
|
|
|
Total current
liabilities
|
|
46,974
|
49,436
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
4,794
|
5,993
|
|
|
Deferred tax
liabilities
|
|
|
1,884
|
2,195
|
|
|
Other long-term
liabilities
|
|
|
4,616
|
2,752
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
4,260
|
11,472
|
|
|
Total liabilities and
stockholders' equity
|
$
62,528
|
$ 71,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HARRIS
INTERACTIVE INC.
|
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
(In
thousands, except share and per share data)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
September
30,
|
|
|
|
|
2011
|
2010
|
|
|
|
|
|
|
|
|
Revenue from services
|
|
|
$
38,262
|
$
37,015
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
Cost of
services
|
|
|
23,997
|
24,193
|
|
|
Selling, general and
administrative
|
|
|
11,985
|
12,564
|
|
|
Depreciation and
amortization
|
|
|
1,293
|
1,527
|
|
|
Restructuring and other
charges
|
|
|
6,879
|
-
|
|
|
Total operating
expenses
|
|
|
44,154
|
38,284
|
|
|
Operating
loss
|
|
|
(5,892)
|
(1,269)
|
|
|
Interest and other
income
|
|
|
(48)
|
(14)
|
|
|
Interest expense
|
|
|
242
|
470
|
|
|
Loss from
continuing operations before income taxes
|
(6,086)
|
(1,725)
|
|
|
Provision (benefit) for income
taxes
|
|
|
(130)
|
(388)
|
|
|
Net loss
|
|
|
$
(5,956)
|
$
(1,337)
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per
share
|
|
|
$
(0.11)
|
$
(0.02)
|
|
|
|
|
|
|
|
|
Basic and diluted weighted
average shares outstanding
|
55,026,885
|
54,422,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Net Loss
to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
September
30,
|
|
|
2011
|
2010
|
|
|
GAAP net loss
|
$
(5,956)
|
$
(1,337)
|
|
|
Interest income
|
(48)
|
(14)
|
|
|
Interest expense
|
242
|
470
|
|
|
Provision (benefit) for income
taxes
|
(130)
|
(388)
|
|
|
Depreciation and
amortization
|
1,543
|
1,957
|
|
|
EBITDA
|
$
(4,349)
|
$
688
|
|
|
Stock-based compensation
(1)
|
279
|
179
|
|
|
Adjusted EBITDA
|
$
(4,070)
|
$
867
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
(4,070)
|
$
867
|
|
|
Add-back of restructuring and
other charges
|
6,879
|
-
|
|
|
Adjusted EBITDA with add-back of
restructuring and other charges
|
$
2,809
|
$
867
|
|
|
|
|
|
|
(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.