Harris Interactive® Reports Third Quarter Fiscal 2013 Results

        Harris Interactive® Reports Third Quarter Fiscal 2013 Results

Raises Adjusted EBITDA Guidance; Introduces Fiscal 2013 Revenue Guidance

PR Newswire

ROCHESTER, N.Y., May 2, 2013

ROCHESTER, N.Y., May 2, 2013 /PRNewswire/ --Harris Interactive Inc. (NASDAQ:
HPOL), a leading global market research firm, today announced its third
quarter fiscal 2013 financial results.

(Logo: http://photos.prnewswire.com/prnh/20100518/NY06801LOGO)

Al Angrisani, President and Chief Executive Officer of Harris Interactive,
commented, "Raising adjusted EBITDA guidance on strong Q3 results demonstrates
further improvement in our business model and the turnaround effort. Sales
remain a challenge, but essentially flat year-to-date sales versus the prior
year are indicative of a gradual improvement across many, but not all, of our
business units."

Eric Narowski, Chief Financial Officer of Harris Interactive, commented,
"Based on current market conditions and forecasts, we are raising our adjusted
EBITDA guidance for the fiscal year ending June 30, 2013 to between $14.0 and
$15.0 million. Additionally, we are introducing full fiscal 2013 revenue
guidance of between $139.0 and $141.0 million. Performance at these levels
will allow us to continue to improve our balance sheet and pay off our
remaining bank debt by fiscal year end."



Key Financial Statistics
(1)

                                                    

                            For the Three Months     For the Nine Months Ended
                           Ended March 31,          March 31,

USD in millions – unaudited
                            2013        2012         2013         2012
Revenue (2)                 $   33.6  $   34.1   $  103.7    $ 111.0
Operating income (loss) (3) $    1.1 $   (0.4) $   6.0    $  (2.3)
Net income (loss)           $    1.0 $   (0.3) $   5.6    $  (4.7)
Fully diluted net income    $   0.02  $  (0.01)  $  0.10     $ (0.08)
(loss) per share
Adjusted EBITDA (4)         $    2.7 $   1.5   $  11.1    $   3.0
Adjusted EBITDA with
add-back of restructuring   $    2.7 $   1.5   $  11.1    $   8.4
and other charges (4)
Cash provided by operations $    5.5 $   0.1   $   7.4   $   3.6
Bookings (5)                $   34.4  $  39.5    $ 116.1     $ 116.8
At March 31:                2013        2012
Cash and cash equivalents   $   14.9 $  13.2
Outstanding debt            $        $   7.2
                            2.4
Secured revenue (6)         $   55.0 $  50.5

________

1.All amounts shown reflect our Asian operations as discontinued operations.
2.Amounts include the impact of foreign currency exchange rate differences.
    Excluding the impact of foreign currency exchange rate differences,
    revenue for the three and nine months ended March 31, 2013 decreased by 1%
    and 6%, respectively, over the same prior year periods.
3.Operating income for the three and nine months ended March 31, 2013 did
    not include any restructuring or other charges, compared with $(19)
    thousand and $5.3 million, respectively, for the same prior year periods.
4.EBITDA is a non-GAAP measure. Adjusted EBITDA, also a non-GAAP measure, is
    EBITDA with stock-based compensation added back.
5.Amounts include the impact of foreign currency exchange rate differences.
    Excluding the impact of foreign currency exchange rate differences,
    bookings for the three and nine months ended March 31, 2013 decreased by
    10% and 0.2%, respectively, over the same prior year periods.
6.Amounts include the impact of foreign currency exchange rate differences.
    Excluding the impact of foreign currency exchange rate differences,
    secured revenue at March 31, 2013 increased by 10% over the same prior
    year period.

Third Quarter Fiscal 2013 Results Conference Call and Webcast Access

Al Angrisani, President and Chief Executive Officer, will host a conference
call to discuss these results on Thursday, May 2, 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 30days 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,
the Company's ability to develop and maintain products and services attractive
to the market, and the Company's ability to remain in compliance with the
financial covenants in its credit agreement.

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 forthe Harris Poll®and for
pioneering innovative research methodologies, 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. Harris possesses 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. Additionally, Harris has a portfolio of
multi-client offerings that complement our custom solutions while maximizing
our client's research investment. Serving clients in more than 196 countries
and territories through our North American and European offices, Harris
specializes in delivering research solutions that help us - and our
clients-stay ahead of what's next. For more information, please
visitwww.harrisinteractive.com.

HPOL – E

HARRIS INTERACTIVE INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
                                                  March 31,      June 30,
                                                  2013           2012
Assets
 Cash and cash equivalents                      $          $  11,456
                                                  14,947
 Accounts receivable, net                       20,220         19,940
 Unbilled receivables                           6,317          7,513
 Prepaids and other current assets              4,425          3,859
 Deferred tax assets                            161            243
            Total current assets                  46,070         43,011
 Property, plant and equipment, net             2,315          2,500
 Other intangibles, net                         8,766          10,795
 Other assets                                   513            1,080
            Total assets                          $          $  57,386
                                                  57,664
Liabilities and Stockholders' Equity
 Accounts payable                               $         $   7,628
                                                  6,878
 Accrued expenses                               17,839         21,643
 Current portion of long-term debt              2,397          4,794
 Deferred revenue                               12,373         10,088
 Liabilities from discontinued operations       -              181
            Total current liabilities             39,487         44,334
 Long-term debt                                 -              1,199
 Deferred tax liabilities                       1,491          1,696
 Other long-term liabilities                    2,870          4,072
            Total stockholders' equity            13,816         6,085
            Total liabilities and stockholders'   $          $  57,386
            equity                                57,664



HARRIS INTERACTIVE INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
                                Three Months Ended      Nine Months Ended
                                March 31,               March 31,
                                2013        2012        2013        2012
Revenue from services           $        $        $         $  
                                33,554      34,117      103,650     111,002
Operating expenses:
 Cost of services             20,013      20,791      61,366      68,799
Selling, general and            11,501      12,580      33,487      35,579
administrative
Depreciation and                902         1,136       2,813       3,602
amortization
Restructuring and other         -           (19)        -           5,348
charges
Total operating expenses        32,416      34,488      97,666      113,328
Operating income (loss)         1,138       (371)       5,984       (2,326)
Operating margin                3.4%        -1.1%       5.8%        -2.1%
Interest expense, net           67          196         237         557
 Income (loss) from
continuing operations before    1,071       (567)       5,747       (2,883)
income taxes
Provision (benefit) for         118         (88)        161         (85)
income taxes
 Income (loss) from           953         (479)       5,586       (2,798)
continuing operations
 Income (loss) from           -           156         -           (1,854)
discontinued operations
 Net income (loss)            $      $       $       $   
                                953        (323)      5,586       (4,652)
Basic net income (loss) per
share:
 Continuing operations        $      $       $      $    
                                0.02        (0.01)      0.10        (0.05)
 Discontinued operations      -           0.00        -           (0.03)
Basic net income (loss) per     $      $       $      $    
share                           0.02        (0.01)      0.10        (0.08)
Diluted net income (loss)
per share:
 Continuing operations        $      $       $      $    
                                0.02        (0.01)      0.10        (0.05)
 Discontinued operations      -           0.00        -           (0.03)
Diluted net income (loss)       $      $       $      $    
per share                       0.02        (0.01)      0.10        (0.08)
Weighted average shares
outstanding:
 Basic                      56,301,471  55,572,845  56,134,161  55,287,089
 Diluted                    58,206,271  55,572,845  57,846,756  55,287,089



Harris Interactive Inc.
Three and Nine Months Ended March
31, 2013
Reconciliation of GAAP Net Income (Loss) to
EBITDA and Adjusted EBITDA
Amounts in thousands of USD
                                   Three Months Ended     Nine Months Ended
                                   March 31,              March 31,
                                   2013        2012       2013      2012
GAAP net income (loss)             $       $       $  5,586 $ (4,652)
                                   953         (323)
(Income) loss from discontinued   -           (156)      -         1,854
operations
Interest expense, net              67          196        237       557
Provision (benefit) for income     118         (88)       161       (85)
taxes
Depreciation and amortization      1,034       1,393      3,277     4,373
EBITDA                             $        $        $  9,261 $  2,047
                                   2,172       1,022
Stock-based compensation (7)       569         447        1,817     997
Adjusted EBITDA                    $        $        $ 11,078  $  3,044
                                   2,741       1,469
Adjusted EBITDA                    $        $        $ 11,078  $  3,044
                                   2,741       1,469
Add-back of restructuring and      -           (19)       -         5,348
other charges
Adjusted EBITDA with add-back of   $        $        $ 11,078  $  8,392
restructuring and other charges    2,741       1,450
(7) Stock-based compensation expense represents the cost of stock-based
compensation accounted for under the FASB guidance for stock-based
compensation.



Full Year Fiscal 2013 Guidance
Reconciliation of GAAP Net Income (Loss) to EBITDA and
Adjusted EBITDA
Amounts in millions of USD
                                     For the Fiscal       For the Fiscal
                                     Year Ending          Year Ended
                                     June 30,             June 30, 2012
                                     2013 (1)(2)
GAAP net income (loss)               $           $      
                                      7.3                (5.6)
Loss from discontinued operations,   -                    1.9
net of tax
Interest expense, net                0.3                  0.7
Provision for income taxes           0.2                  0.2
Depreciation and amortization        4.3                  5.6
EBITDA                               $           $       
                                     12.1                 2.8
Stock-based compensation (3)         2.4                  1.8
Adjusted EBITDA                      $           $       
                                     14.5                 4.6
Adjusted EBITDA                      $           $       
                                     14.5                 4.6
Add-back of restructuring and other  -                    7.5
charges
Adjusted EBITDA with add-back of     $           $      
restructuring and other charges      14.5                 12.1
(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.



SOURCE Harris Interactive

Website: http://www.harrisinteractive.com
 
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