Kronos Continues to Change the Game in Workforce Management; Reports Strong Fiscal 2012 Financial Performance

  Kronos Continues to Change the Game in Workforce Management; Reports Strong
  Fiscal 2012 Financial Performance

Business Wire

CHELMSFORD, Mass. -- November 12, 2012

Kronos Incorporated today announced financial results, company advancements,
and customer successes for Fiscal 2012 which closed Sept. 30. Kronos revenues
for the fiscal year increased 9 percent to $870 million. Earnings before
interest, tax, depreciation, and amortization (EBITDA) increased to $266

“We are thrilled with our company’s financial performance. We are growing
across all strategic aspects of our business – in the cloud, through product
innovation, in the small and midsize business market, in the enterprise
market, across our targeted vertical industries, and globally,” said Aron Ain,
Kronos chief executive officer. “As we celebrate 35 years of innovation, we
reflect upon our accomplishments – and, more importantly – look ahead toward a
continued aggressive growth trajectory. As the pace-setter and game-changer in
the workforce management market, we will continue to deliver exceptional value
to customers around the globe.”

Fourth Quarter News Facts

  *In the last quarter of Fiscal 2012, Kronos signed agreements with
    organizations around the world such as: CBS Interactive China, the largest
    vertical media group in China; Celadon Group, Inc., one of North America’s
    leading transportation companies; City of Tulsa, the second-largest city
    in the state of Oklahoma; Clemson University, a major land-grant, science-
    and engineering-oriented research university that maintains a strong
    commitment to teaching and student success; ESCO Corporation,  a leading
    independent designer, manufacturer, and provider of highly engineered wear
    parts and replacement products used in mining, infrastructure development,
    power generation, aerospace and industrial applications; Gate Gourmet, the
    world’s largest independent provider of catering and provisioning services
    for airlines and railroads; Jerry’s Enterprises, Inc., an operator of
    Jerry’s Foods, County Market, Cub Foods, and Save-a-Lot grocery stores;
    RaceTrac Petroleum, Inc., operator of a chain of convenience stores across
    the Southern U.S.; Rail Corporation New South Wales (RailCorp),
    Australian-provider of metropolitan passenger rail services;
    Renault-Nissan Automotive India, the India subsidiary of Renault-Nissan;
    Supermercados Peruanos, the second-largest supermarket and hypermarket
    chain in Peru; Takshasila Healthcare, a joint venture between Kirloskar,
    Secom, and Toyota Tsusho of Japan; The Medical University of South
    Carolina, the oldest medical school in the Southern U.S.; The Pentagon
    Force Protection Agency, a civilian defense agency within the U.S.
    Department of Defense; The YMCA of Greater Charlotte, a United Way member
    agency comprised of 19 branches and 2 resident camps; University College
    London Hospitals NHS Foundation Trust (UCLH), one of the largest NHS
    Trusts in the U.K. that provides first-class acute and specialist services
    in seven hospitals in London; York Region Police, one of the largest law
    enforcement organizations in the Greater Toronto area serving 1.1 million
    residents; and YRC Worldwide Ind., a Fortune 500 company headquartered in
    Overland Park, Kan., the holding company for a portfolio of brands
    including YRC Freight, YRC Reimer, Holland, Reddaway, and New Penn.

Fiscal 2012 News Facts

  *Growth in the Cloud

       *More than 6,000 organizations are now successfully deployed in the
         Kronos Cloud. Kronos Cloud generates a fast return on investment
         while alleviating the need to invest in and manage additional
         infrastructure and staff. By choosing the Kronos Cloud, organizations
         free their staff to focus on other business objectives. Kronos now
         offers Workforce Central^® in the Kronos Cloud for medium and large
         enterprises and Workforce Ready^™ in the Kronos Cloud for small and
         midsize businesses.

  *Growth Through Product Innovation

       *Workforce Central – Latest version (Workforce Central 6.3) balances
         rich functionality with unprecedented ease-of-use and includes
         innovative new features and consumer-driven enhancements to meet the
         needs of global customers, further improve usability, and expand
         functionality for absence management and scheduling.
       *Kronos InTouch^™  – Revolutionary time clock built for the modern
         workforce, Kronos InTouch delivers an unrivaled user experience;
         seamless integration to check accrual balances, request time off, and
         view schedules; a cloud-based architecture; and the first and only
         application platform devoted to improving productivity of the
         frontline workforce.
       *Workforce Mobile^™ – Latest version of Kronos’ award-winning mobile
         applications enables organizations to improve productivity by making
         it easier for managers and employees to complete a wide range of
         workforce-related tasks using a variety of mobile devices.
         Enhancements include MobileViews, enabling the writing of custom
         applications; advanced labor detail functionality; barcode scanning
         capabilities; simplified timecard approvals; and GPS data collection.
       *Workforce Analytics^™ – Enhanced labor analytics solution enables
         organizations to easily access and leverage their workforce data to
         identify, predict, and manage opportunities for cost savings and
         productivity gains. Vertical-specific analytics applications include
         real-time visibility into workforce and operational issues so
         concerns about labor costs and workforce needs can be addressed
         immediately; an intuitive, graphical management dashboard;
         sophisticated security features that provide personalized
         intelligence; and interoperability with an organization’s existing
         business intelligence tool.
       *TeleStaff^™ – Latest version of the Kronos TeleStaff public safety
         scheduling and notification solution includes enhancements that allow
         deployment on Microsoft SQL; new shift-bidding statuses enabling
         employees to view and monitor the status of their bids for shifts;
         and advanced reporting features.
       *Workforce Tablet^™ – Today at KronosWorks, Kronos announced
         availability of Workforce Tablet, a sleek, easy-to-use tablet app
         that delivers real-time, location-specific workforce information to
         frontline managers so they can more effectively manage in the moment.
       *Workforce Task Management^™ – Today at KronosWorks, Kronos announced
         availability of Workforce Task Management, a solution that simplifies
         store execution by providing end-users with a streamlined approach to
         create, approve, execute, and verify tasks. This drives productivity
         by streamlining communication between corporate and stores as well as
         increases sales and customer satisfaction by ensuring tasks are
         completed on time and consistently across locations.

  *Growth in Small and Midsize Business (SMB) Market

       *SaaShr^™ acquisition – By acquiring, Kronos significantly
         broadened its product portfolio and gained access to an extensive
         network of partners and resellers. SaaShr offers a
         software-as-a-service (SaaS) workforce management suite for SMBs.
         Through its well-established network of payroll service bureaus,
         professional employer organizations, human resources outsourcers, and
         value-added resellers, SaaShr’s solutions are used in thousands of
         organizations across a wide variety of industries. Built from the
         ground up to operate in the cloud, SaaShr’s multi-tenant architecture
         delivers a consistent user experience across its suite of time and
         attendance, human resources, and payroll applications.
       *Workforce Ready – Accelerating its cloud strategy, Kronos delivered a
         new suite of workforce management solutions for SMBs. Built from the
         ground up and designed to run in the cloud with its hosted
         multi-tenant architecture, Workforce Ready shares a common technology
         platform for time and attendance, human resources, and payroll
         applications; a universal employee record; and single user interface
         across its entire suite of applications.

  *Growth in Enterprise Market and Targeted Vertical Industries

       *Large enterprise deployments – Kronos booked its greatest-ever number
         of large orders in excess of $1 million. Kronos’ vertical-specific
         expertise and the company’s innovative product offerings are often
         cited as top reasons these organizations selected Kronos. These large
         transactions included significant orders from new and existing
         customers including one of the top ten largest discount retailers; a
         global warehouse retailer; a leading international hotel chain; one
         of the largest, most comprehensive less-than-truckload networks in
         North America; the second-largest chicken producer in the world; a
         leading provider of emergency medical services in the U.S.; and one
         of the top 25 national public universities.
       *OptiLink^™ acquisition – Accelerates Kronos healthcare workforce
         management leadership by adding an industry-leading acuity-based
         staffing solution, OptiLink, to its workforce management suite.
         Kronos now offers the most advanced, clinically focused workforce
         management suite to help healthcare organizations deliver
         high-quality patient care.

  *Growth Internationally

       *SMART^™ acquisition – Supporting its aggressive international growth
         strategy and strengthening its presence in the Europe, Middle East,
         and Africa (EMEA) region, Kronos acquired U.K.-based SMART Computer
         Holdings and its Spanish affiliate SMART Human Logistics. As a
         result, Kronos now offers the leading workforce management solution
         for National Health Service (NHS) organizations in the U.K., and
         established a physical presence in Spain.
       *Reseller agreements – Kronos extended its reach in the Middle East
         through reseller agreements with Health Matrix Corporation and OCSHI,
         providers of technology solutions to the healthcare sector,
         delivering an enhanced distribution network in the region, as well as
         local knowledge and support for new healthcare customer deployments.
         In addition, Kronos extended its reach in the India market through a
         strategic alliance with Qimpro, leveraging the company’s leadership
         in consulting to drive workforce transformation in India.
       *Support for Multinationals – With deployments in more than 100
         countries, Kronos is proficient at supporting large multinational
         organizations. Kronos accommodates a vast array of region-specific
         pay rules, bringing ease to the highly complex task of paying
         employees around the world. Multinationals are increasingly choosing
         Kronos for its global expertise and global product capabilities.

  *35 Years of Innovation – In October, Kronos celebrated 35 years of
    innovation. Since its founding in 1977, the company has grown to be the
    global leader in the workforce management software market.

Supporting Resources

  *Connect with Kronos via Facebook, Twitter, Google+, LinkedIn, and YouTube.
  *Subscribe to our workforce management blogs.
  *Take a look at the lighter side of workforce management in our Time Well
    Spent cartoons.

About Kronos Incorporated

Kronos is the global leader in delivering workforce management solutions in
the cloud. Tens of thousands of organizations in more than 100 countries —
including more than half of the Fortune 1000^® — use Kronos to control labor
costs, minimize compliance risk, and improve workforce productivity. Learn
more about Kronos industry-specific time and attendance, scheduling, absence
management, HR and payroll, hiring, and labor analytics applications at Kronos: Workforce Innovation That Works^™.

© 2012 Kronos Incorporated. All rights reserved. Kronos and Workforce Central
are registered trademarks and Workforce Ready, InTouch, Workforce Mobile,
Workforce Analytics, TeleStaff, Workforce Tablet, Workforce Task Management,
SaaShr, OptiLink, and SMART are trademarks of Kronos Incorporated or a related
company. All other trademarks are property of their respective owners.

Footnote: This press release contains non-GAAP financial measures. Kronos
believes that non-GAAP measures of financial results provide useful
information regarding certain financial and business trends relating to
Kronos’ results of operations. Non-GAAP revenue consists of GAAP revenue
excluding the effect of: (1) the write-down of deferred revenue associated
with purchase accounting for certain acquisitions. EBITDA consists of GAAP
income from operations excluding: (1) share-based compensation expense for
stock options and stock awards in accordance with ASC 718; (2) amortization of
capitalized software development costs (3) depreciation of property, plant and
equipment; (4) amortization of acquired intangible assets; (5)
acquisition-related expenses including advisory, legal, accounting, acquired
employee-related costs, and integration costs; and (6) consulting expenses
that are excluded from the definition of EBITDA under the terms of the
Company’s Credit Agreement.


Kronos Incorporated
Michele Glorie, +1 978-947-2855
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