Kronos Cloud Growing at Breathtaking Rate; Kronos Reports Outstanding Second-Quarter Results

  Kronos Cloud Growing at Breathtaking Rate; Kronos Reports Outstanding
  Second-Quarter Results

Business Wire

CHELMSFORD, Mass. -- May 08, 2013

Kronos Incorporated, the global leader in delivering workforce management
solutions in the cloud, today announced financial results, company
advancements, and customer successes for the second quarter of Fiscal 2013.
Kronos revenue for the quarter increased 13 percent to $234.4 million.
Earnings before interest, tax, depreciation, and amortization (EBITDA)
increased 21 percent to $75.3 million.^1

“We delivered outstanding growth in our second quarter – including a
119-percent increase in workforce management cloud revenue,” said Aron Ain,
Kronos chief executive officer. “Kronos continues to grow significantly faster
than the global workforce management market, with double-digit growth in
revenue and a rapid pace of new customer adoption. Kronos is leading the
global workforce management market through an incredibly invigorating
transition whereby organizations are enthusiastically adopting the cloud,
mobile, and big data labor analytics to more effectively manage in the moment.
We are thrilled to be leading this exciting transformation.”

Second-Quarter News Facts

  *Kronos Cloud a major growth engine – The Kronos Cloud is growing at a
    breathtaking rate. More than 8,000 organizations now leverage the Kronos
    Cloud, the industry’s most robust and comprehensive workforce management
    cloud platform. Kronos continues to experience a tremendous customer
    response to its new Workforce Ready^™ suite in the Kronos Cloud for small
    and midsize businesses (SMBs), as well as its Workforce Central^® suite in
    the Kronos Cloud for medium and large enterprise organizations.
  *Exceptional momentum in SMB sector – Kronos experienced another
    exceptional quarter in the SMB sector, driven by an accelerated pace of
    adoption for its Workforce Ready suite in the cloud. During the quarter,
    Kronos delivered an enhanced version of its fast-selling Workforce Ready
    cloud solution. Also driving growth in the SMB sector is significant
    customer and channel growth expansion through the Kronos SMB partner
    network, with the addition of thousands of new organizations to its 
    workforce management platform.
  *Strong international performance – International product bookings
    experienced double-digit growth year on year, with excellent momentum in
    Australia as both new customers signed on and existing customers expanded
    their use of Kronos. Europe performed very well, including a major
    contract with an existing multinational retail customer that is
    centralizing its 100,000+ employees around the world on a Kronos solution.
    India had its strongest quarter to date, with significant growth in new
    customers and two major global car manufacturers going live with their
    implementations. All international regions are seeing strong demand for
    the Kronos Cloud.
  *Affordable Care Act compliance driving demand – As the January 1, 2014
    deadline for Affordable Care Act (ACA) compliance draws closer,
    organizations in every corner of the U.S. are turning to Kronos for help.
    Kronos is actively educating organizations about how automating with
    Kronos can directly impact their ACA compliance efforts by: having the
    data necessary to determine benefit eligibility; gaining the ability to
    create, monitor, and analyze employee schedules and time records, and
    initiate benefits enrollment; and leveraging comprehensive auditing and
    reporting features.
  *Enabling omni-channel strategies in retail – As brick and mortar and
    online retail channels merge, store operations executives are struggling
    with how to gain visibility into incoming online demand, and how to align
    this demand with in-store labor. Kronos and Manhattan Associates formed a
    relationship to address this concern and help retailers profitably
    integrate their stores into their digital selling strategy to increase
    customer satisfaction and drive sales by freeing up trapped inventory in
    the store, while managing labor costs.
  *Customer successes around the globe – In the second quarter of Fiscal
    2013, Kronos signed agreements with organizations around the world such
    as: Bupa (Australia), the largest private-aged care provider with 60 homes
    caring for more than 5,000 residents; Callaway Golf Company,  manufacturer
    and seller of golf clubs, golf balls, and golf accessories under the
    Callaway Golf and Odyssey brands worldwide; Catholic Health,  a
    non-profit, faith-based healthcare system serving patients throughout
    Western New York; Co-operative Food, with 80,000 colleagues and 2,300
    retail outlets in the UK; Forever 21, Inc., a specialty retailer of
    women’s, men’s, and girl’s clothing and accessories; IHC, New Zealand’s
    largest provider of services to people with intellectual disabilities and
    their families; Ladbrokes Ltd (UK), a world leader in online betting and
    gaming; New York Methodist Hospital (NYM), a voluntary, acute-care
    teaching facility; South Jersey Healthcare,  a nonprofit, integrated
    healthcare system serving the medical and healthcare needs of southern New
    Jersey residents; The Baldwin County Board of Education, which  oversees
    all public schools in Baldwin County, Alabama; The Methodist Hospital
    System, a nonprofit healthcare system comprised of five hospitals in the
    greater Houston area; Village Roadshow Theme Parks (VRTP), a division of
    Village Roadshow Limited, owner and operator of Australia’s most popular
    theme parks and Wet ‘n’ Wild branded water parks in the U.S.; and West
    Palm Beach, a city in and the county seat of Palm Beach County, Florida.
  *Industry recognizes Kronos for success and innovation

       *Forbes profiled Kronos CEO Aron Ain in an article that highlights
         success and innovation at Kronos, stating that “Thirty-five years
         young, time seems to be on Kronos’ side, making it a company worth
       *The Dennis Miller Show hosted Ain for a radio interview about how
         Kronos helps organizations effectively manage their workforce in the
       *MicroStrategy recognized Kronos for excellence in analytics and its
         innovative approach to solving critical business issues for
       *The Today Show and USA Today featured a survey conducted by The
         Workforce Institute at Kronos about workplace absenteeism associated
         with sporting events.

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^™.

© 2013 Kronos Incorporated.  All rights reserved.  Kronos and Workforce
Central are trademarks and Workforce Ready is a trademark 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 the write-down of deferred revenue associated with
purchase accounting for certain acquisitions and includes timing adjustments
related to international product deliveries which management includes when
evaluating operating results.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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