NEW YORK, Feb. 2, 2012 /PRNewswire/ -- Harris Interactive
Inc. (NASDAQ: HPOL), a global custom market research firm, today
announced its second quarter fiscal 2012 financial results.
(Logo: http://photos.prnewswire.com/prnh/20100518/NY06801LOGO
)
Al Angrisani, Interim Chief
Executive Officer of Harris Interactive, commented, "We made
progress this quarter in improving our liquidity and profitability
as a result of closely managing cash and our rightsizing efforts,
both of which are core elements of our turnaround program. Looking
ahead, we continue to face and seek to address sales challenges in
certain areas of our business, in part by replacing low margin work
with projects that yield appropriate margins. Addressing these
challenges is not a quick or easy process and in the interim will
put downward pressure on revenue."
Key Financial Statistics
|
|
USD in millions –
unaudited
|
For the
Three Months Ended December 31,
|
For the Six
Months Ended December 31,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
Revenue (1)
|
$ 39.1
|
$ 44.9
|
$ 77.4
|
$ 82.0
|
|
|
Operating income (loss)
(2)
|
$
2.1
|
$
0.9
|
$ (3.8)
|
$ (0.4)
|
|
|
Net income (loss)
|
$
1.6
|
$
0.3
|
$ (4.3)
|
$ (1.0)
|
|
|
Fully diluted net income (loss)
per share
|
$ 0.03
|
$ 0.01
|
$ (0.08)
|
$ (0.02)
|
|
|
|
|
Adjusted EBITDA (3)
|
$
3.8
|
$
3.0
|
$ (0.2)
|
$
3.8
|
|
|
Adjusted EBITDA with add-back of
restructuring and other charges (3)
|
$
3.8
|
$
3.7
|
$
6.6
|
$
4.5
|
|
|
|
|
Cash provided by (used in)
operations
|
$
3.3
|
$
3.3
|
$
3.5
|
$
1.0
|
|
|
|
|
Bookings (4)
|
$ 45.2
|
$ 55.3
|
$ 76.5
|
$ 90.7
|
|
|
|
|
At December 31:
|
2011
|
2010
|
|
|
|
Cash and cash
equivalents
|
$
14.1
|
$ 13.5
|
|
|
|
Outstanding debt
|
$
8.4
|
$ 13.2
|
|
|
|
Secured revenue (5)
|
$
45.1
|
$ 53.7
|
|
|
|
|
|
(1) Amounts include the impact
of foreign currency exchange rate differences. Excluding the impact
of foreign currency exchange rate differences, revenue for the
three and six months ended December 31, 2011 decreased by 12.8% and
6.6%, respectively, over the same prior year periods.
|
|
|
(2) Operating income for the
three months ended December 31, 2011 included restructuring and
other charges of $(0.1) million, compared with $0.7 million for the
same prior year period. Operating income for the six months ended
December 31, 2011 included restructuring and other charges of $6.8
million, compared with $0.7 million 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 and six months ended December 31, 2011 decreased by 18.1% and
14.4%, respectively, over the same prior year periods. Bookings for
the six months ended December 31, 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 at
December 31, 2011 decreased by 15.6% over the same prior year
period.
|
|
|
|
|
|
|
Second 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 Thursday, February 2,
2012, 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 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 the Company's ability to
regain 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
June
30,
|
|
|
|
|
|
2011
|
2011
|
|
|
Assets
|
|
|
Cash and cash
equivalents
|
|
$
14,053
|
$ 14,224
|
|
|
Accounts receivable,
net
|
|
24,001
|
26,480
|
|
|
Unbilled
receivables
|
|
5,882
|
7,580
|
|
|
Prepaids and other
current assets
|
|
3,808
|
3,619
|
|
|
Deferred tax
assets
|
|
523
|
306
|
|
|
Total current assets
|
|
48,267
|
52,209
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
2,334
|
3,447
|
|
|
Other intangibles,
net
|
|
12,133
|
14,582
|
|
|
Other assets
|
|
1,229
|
1,610
|
|
|
Total assets
|
|
$
63,963
|
$
71,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholders' Equity
|
|
|
Accounts
payable
|
|
$
9,770
|
$ 9,521
|
|
|
Accrued
expenses
|
|
19,979
|
21,249
|
|
|
Current portion of
long-term debt
|
|
4,794
|
4,794
|
|
|
Deferred
revenue
|
|
13,491
|
13,872
|
|
|
Total current
liabilities
|
|
48,034
|
49,436
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
3,596
|
5,993
|
|
|
Deferred tax
liabilities
|
|
1,993
|
2,195
|
|
|
Other long-term
liabilities
|
|
4,167
|
2,752
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
6,173
|
11,472
|
|
|
Total liabilities and
stockholders' equity
|
|
$
63,963
|
$ 71,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
|
|
|
|
|
|
Revenue from services
|
$
39,115
|
$
44,940
|
$
77,378
|
$
81,954
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
Cost of
services
|
24,470
|
29,560
|
48,467
|
53,753
|
|
|
Selling, general and
administrative
|
11,393
|
12,312
|
23,379
|
24,876
|
|
|
Depreciation and
amortization
|
1,197
|
1,515
|
2,490
|
3,043
|
|
|
Restructuring and other
charges
|
(57)
|
679
|
6,823
|
679
|
|
|
Total operating
expenses
|
37,003
|
44,066
|
81,159
|
82,351
|
|
|
Operating income
(loss)
|
2,112
|
874
|
(3,781)
|
(397)
|
|
|
Operating
margin
|
5.4%
|
1.9%
|
-4.9%
|
-0.5%
|
|
|
Interest expense, net
|
204
|
308
|
398
|
762
|
|
|
Income (loss) from
operations before income taxes
|
1,908
|
566
|
(4,179)
|
(1,159)
|
|
|
Provision (benefit) for income
taxes
|
283
|
223
|
153
|
(165)
|
|
|
Net income
(loss)
|
$
1,625
|
$
343
|
$
(4,332)
|
$
(994)
|
|
|
|
|
|
|
|
|
Basic net income (loss) per
share
|
$
0.03
|
$
0.01
|
$
(0.08)
|
$
(0.02)
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per
share
|
$
0.03
|
$
0.01
|
$
(0.08)
|
$
(0.02)
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding -
|
|
|
|
|
|
|
Basic
|
55,272,335
|
54,472,556
|
55,149,610
|
54,447,673
|
|
|
Diluted
|
55,294,426
|
54,542,596
|
55,149,610
|
54,447,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Income to
EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
|
December
31,
|
December
31,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
GAAP net income
(loss)
|
$ 1,625
|
$ 343
|
$ (4,332)
|
$ (994)
|
|
|
Interest expense, net
|
204
|
308
|
398
|
762
|
|
|
Provision (benefit) for income
taxes
|
283
|
223
|
153
|
(165)
|
|
|
Depreciation and
amortization
|
1,462
|
1,937
|
3,005
|
3,895
|
|
|
EBITDA
|
$ 3,574
|
$ 2,811
|
$ (776)
|
$ 3,498
|
|
|
Stock-based compensation
(1)
|
271
|
171
|
550
|
350
|
|
|
Adjusted EBITDA
|
$ 3,845
|
$ 2,982
|
$ (226)
|
$ 3,848
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$ 3,845
|
$ 2,982
|
$ (226)
|
$ 3,848
|
|
|
Add-back of restructuring and
other charges
|
(57)
|
679
|
6,823
|
679
|
|
|
Adjusted EBITDA with add-back of
restructuring and other charges
|
$ 3,788
|
$ 3,661
|
$ 6,597
|
$ 4,527
|
|
|
|
|
|
|
|
|
(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.