Rochester, N.Y., Nov. 14, 2013 /PRNewswire/ -- Harris
Interactive Inc. (NASDAQ: HPOL), a leading global market research
firm, today announced its first quarter fiscal 2014 financial
results.
(Logo:
http://photos.prnewswire.com/prnh/20100518/NY06801LOGO )
Al Angrisani, President and Chief
Executive Officer of Harris Interactive, commented, "Overall, our
Q1 results were on plan, with sales up and revenue essentially flat
as compared with Q1 of last fiscal year. Q1 was impacted by some
planned investments in the business, as I discussed on our last
earnings call, and an increase in our cost of data acquisition due
to business mix. These two factors contributed to our lower
adjusted EBITDA in the quarter versus the same prior year period.
Nevertheless, we generated a healthy adjusted EBITDA margin of
approximately 9% of revenue in Q1."
Eric Narowski, Chief Financial
Officer of Harris Interactive, commented, "Based on current market
conditions and forecasts for the fiscal year ending June 30, 2014, the Company is reaffirming its
previously issued fiscal 2014 adjusted EBITDA guidance of between
$14.5 and $16.5 million."
Key Financial
Statistics
|
USD in millions –
unaudited
|
For the Three
Months
Ended
September 30,
|
|
2013
|
2012
|
Revenue
(1)
|
$
32.4
|
$
33.0
|
Operating
income
|
$
1.3
|
$
1.8
|
Net income
|
$
1.3
|
$
1.7
|
Fully diluted net
income per share
|
$
0.02
|
$
0.03
|
|
|
|
Adjusted EBITDA
(2)
|
$
2.8
|
$
3.5
|
Adjusted EBITDA with
add-back of restructuring and other charges (2)
|
$
2.8
|
$
3.5
|
|
|
|
Cash provided by
operations
|
$
0.1
|
$
0.3
|
|
|
|
Bookings
(3)
|
$
34.8
|
$
33.9
|
|
|
|
At September
30:
|
2013
|
2012
|
Cash and cash
equivalents
|
$
15.9
|
$
10.6
|
Outstanding
debt
|
$
----
|
$
4.8
|
Secured revenue
(4)
|
$
48.9
|
$
43.4
|
________
|
(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, 2013 decreased by 2% over
the same prior year period.
|
(2) EBITDA is a
non-GAAP measure. Adjusted EBITDA, also a non-GAAP measure, is
EBITDA with stock-based compensation added back.
|
(3) 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, 2013 increased by 2% over
the same prior year period.
|
(4) Amounts include
the impact of foreign currency exchange rate differences. Excluding
the impact of foreign currency exchange rate differences, secured
revenue at September 30, 2013 increased by 13% over the same prior
year period.
|
First Quarter Fiscal 2014 Results Conference Call and Webcast
Access
Al Angrisani, President and Chief
Executive Officer, will host a conference call to discuss these
results on Thursday, November 14,
2013, 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, the Company's
ability to maintain compliance with certain NASDAQ listing
requirements, actions of competitors and the Company's ability to
develop and maintain products and services attractive to the
market.
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 market research
firms, leveraging research, technology, and business acumen to
transform relevant insight into actionable foresight. Known widely
for The Harris Poll®, Harris offers proprietary
solutions in the areas of market and customer insight, corporate
brand and reputation strategy, and marketing, advertising, public
relations and communications research across a wide range of
industries. Additionally, Harris has a portfolio of multi-client
offerings that complement our custom solutions while maximizing a
client's research investment. Serving clients worldwide through our
North American and European offices, Harris specializes in
delivering research solutions that help 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,
|
|
|
|
|
|
|
2013
|
2013
|
|
Assets
|
|
Cash and
cash equivalents
|
|
|
$
15,888
|
$
15,744
|
|
Accounts
receivable, net
|
|
|
18,904
|
19,286
|
|
Unbilled
receivables
|
|
|
7,717
|
8,215
|
|
Prepaids
and other current assets
|
|
|
3,896
|
3,890
|
|
Deferred
tax assets
|
|
|
760
|
755
|
|
Total current assets
|
|
|
47,165
|
47,890
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
2,500
|
2,466
|
|
Other
intangibles, net
|
|
|
7,632
|
8,061
|
|
Other
assets
|
|
|
|
530
|
536
|
|
Total assets
|
|
|
$
57,827
|
$
58,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
Accounts
payable
|
|
|
|
$
7,543
|
$
7,273
|
|
Accrued
expenses
|
|
|
|
16,439
|
19,934
|
|
Deferred
revenue
|
|
|
|
11,746
|
11,584
|
|
Deferred
tax liabilities
|
|
|
253
|
253
|
|
Total
current liabilities
|
|
|
35,981
|
39,044
|
|
|
|
|
|
|
|
|
|
Deferred
tax liabilities
|
|
|
1,750
|
1,737
|
|
Other
long-term liabilities
|
|
|
2,201
|
2,569
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
17,895
|
15,603
|
|
Total liabilities and stockholders' equity
|
|
|
$
57,827
|
$
58,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HARRIS INTERACTIVE
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In thousands,
except share and per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
September
30,
|
|
|
|
2013
|
2012
|
|
|
|
|
|
Revenue from
services
|
|
|
$ 32,370
|
$ 33,010
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Cost of
services
|
|
|
20,179
|
19,455
|
Selling, general and
administrative
|
|
|
10,029
|
10,778
|
Depreciation and
amortization
|
|
|
832
|
948
|
Total operating
expenses
|
|
|
31,040
|
31,181
|
Operating
income
|
|
|
1,330
|
1,829
|
Operating
margin
|
|
|
4.1%
|
5.5%
|
Interest expense,
net
|
|
|
-
|
101
|
Income from
continuing operations before income taxes
|
1,330
|
1,728
|
Provision (benefit)
for income taxes
|
|
|
33
|
(15)
|
Net
income
|
|
|
$ 1,297
|
$ 1,743
|
|
|
|
|
|
Basic net income per
share
|
|
|
$ 0.02
|
$ 0.03
|
|
|
|
|
|
Diluted net income
per share
|
|
|
$ 0.02
|
$ 0.03
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
Basic
|
|
|
56,727,373
|
55,952,534
|
Diluted
|
|
|
59,194,212
|
56,878,991
|
|
|
|
|
|
Three Months Ended
September 30, 2013
|
|
|
Reconciliation of
GAAP Net Income to EBITDA and Adjusted EBITDA
|
|
Amounts in
thousands of USD
|
|
|
|
|
|
|
Three months
ended
|
|
September
30,
|
|
2013
|
2012
|
GAAP net
income
|
$
1,297
|
$
1,743
|
Interest expense,
net
|
-
|
101
|
Provision (benefit)
for income taxes
|
33
|
(15)
|
Depreciation and
amortization
|
936
|
1,116
|
EBITDA
|
$
2,266
|
$
2,945
|
Stock-based
compensation (5)
|
536
|
569
|
Adjusted
EBITDA
|
$
2,802
|
$
3,514
|
|
|
|
Adjusted
EBITDA
|
$
2,802
|
$
3,514
|
Add-back of
restructuring and other charges
|
-
|
-
|
Adjusted EBITDA with
add-back of restructuring and other charges
|
$
2,802
|
$
3,514
|
|
|
|
(5) Stock-based
compensation expense represents the cost of stock-based
compensation accounted for under the FASB guidance for stock-based
compensation
|
|
|
|
Full Year Fiscal
2014 Guidance
|
|
|
Reconciliation of
GAAP Net Income to EBITDA and Adjusted EBITDA
|
|
Amounts in
millions of USD
|
|
|
|
|
|
|
|
|
|
For the Fiscal
Year
Ending June
30,
2014
(1)(2)
|
|
GAAP net
income
|
$
9.3
|
|
Interest expense,
net
|
-
|
|
Provision for income
taxes
|
0.6
|
|
Depreciation and
amortization
|
3.7
|
|
EBITDA
|
$
13.6
|
|
Stock-based
compensation (3)
|
1.9
|
|
Adjusted
EBITDA
|
$
15.5
|
|
|
|
|
Adjusted
EBITDA
|
$
15.5
|
|
Add-back of
restructuring and other charges
|
-
|
|
Adjusted EBITDA with
add-back of restructuring and other charges
|
$
15.5
|
|
|
|
|
(1) This
reconciliation is based on the midpoint of the Adjusted EBITDA
guidance range provided in this press release.
|
|
|
|
(2) The amounts
expressed in this column are based on current estimates as of the
date of this press release.
|
|
|
|
(3) Stock-based
compensation expense represents the cost of stock-based
compensation accounted for 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.