Harris Interactive, Inc. (
F1Q12 Earnings Call
November 01, 2011, 08:30 a.m. ET
Michael Burns - VP, IR and External Reporting
Al Angrisani - Interim CEO
Eric Narowski - Interim CFO, Principal Accounting Officer, and SVP, Global Controller
Steve Kohl - Mangrove
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» Harris Interactive CEO Discusses F1Q2011 Results – Earnings Call Transcript
Good day ladies and gentlemen and welcome to your First Quarter 2012 Harris Interactive Earnings Conference Call. At this time all participants are in listen-only mode. Later we will conduct the question-and-answer session and instructions given at that time. (Operator Instructions) As a reminder this conference call is being recorded.
I’d now like to turn the call over to your host, Mr. Michael Burns, Vice President, Investor Relations and External Reporting. Sir, you may begin.
Good morning and thank you for joining us to discuss Harris Interactive’ first quarter fiscal 2012 financial results. With me today are Al Angrisani, our Interim Chief Executive Officer; and Eric Narowski, our Interim Chief Financial Officer.
The format for today’s call will include a brief recap of the quarter by Eric, followed by Al’s commentary; after the formal remarks both Eric and Al will be available for questions.
A webcast replay of this entire call will be accessible via the Investor Relations section of our corporate website later today, and will be archived there for at least 30 days. However, no telephone replay of this call will be provided. We will post a transcript of this call as soon as we can after the call.
We would like to take this opportunity to remind you that certain statements made during this conference call are forward-looking statements for purposes of the Safe Harbor provision under the Private Securities Litigation Reform Act of 1995. These statements include belief, predictions and expectations related to the company’s future financial performance of their business and operating metrics as well as statements regarding the company’s future plans and operations. They involve a number of risks known and unknown that could cause actual results, performance and/or achievements of the company to be materially different from the beliefs, predictions and expectations discussed on this call.
Factors that could cause the company’s results to materially differ from the forward-looking statements made today and which are incorporated by reference herein are more fully described in today’s press release as well as the company’s SEC filings, particularly under the risk factor section of the company’s most recent Annual Report on Form 10-K. You are urged to consider these factors carefully in evaluating such forward-looking statements and are cautioned not to place undue reliance on them. Forward-looking statements are only made as of the date of this presentation and the company undertakes no obligation to publicly update them to reflect subsequent events or circumstances.
We will also be discussing non-GAAP financial measures including adjusted EBITDA with the add back or restructuring than other charges. These items are reconciled to GAAP financial measures in today’s press release and are posted on the Investor Relations section of our website.
I’d now like to turn today’s call over to Eric Narowski. Eric.
Thanks Mike. Good morning everyone and thank you for joining us. Let me give you a brief overview of our financial performance for Q1. Q1 revenue was 38.3 million up 3% from 37 million for last year's Q1, excluding foreign exchange rate differences, Q1 revenue was up 1% compared with last year's Q1. Putting revenue for the quarter into context, in local currency we saw a 5% increase in U.S. revenue mainly as a result of product mix which resulted in projects with shorter delivery times when compared with last year's Q1. A 14% increase in Canadian revenue mainly as a result of the revenue impact of the large financial services tracking study, one in Q2 of last fiscal year.
A 31% decline in UK revenue mainly as a result of the revenue impact of a tracking study loss in the prior year and the effect of our restructuring activities and new focused sales approach in the UK. A 14% increase in France driven primarily by continued success in selling to new and existing clients across several sectors. A 27% increase in Germany mainly driven by success in selling to new and existing clients across several sectors in recent quarters. A 52% decline in Asia as a result of winding down our operations in the region throughout the quarter.
Our operating loss for Q1 was 5.9 million compared with an operating loss of 1.3 million for last year's Q1. Q1’s operating loss included restructuring and other charges of 6.9 million as a result of headcount reductions in the U.S. and UK, scaling down of our facilities footprint in Princeton, New Jersey; Rochester, New York; Brentford, UK; and Ottawa, Canada. And closing our operations in Asia. Q1 of fiscal 2011 had no restructuring and other charges.
Our net loss for the quarter was $6 million or $0.11 per fully diluted share driven in large part by the restructuring and other charges I just mentioned compared with a net loss of 1.3 million or $0.02 per fully diluted share for last year's Q1.
At September 30, 2011 we had 12.4 million in cash and 9.6 million in outstanding debt, and we are in compliance with our financial covenants under our credit agreement. Cash provided by operations for Q1 was 175,000 as compared with 2.2 million used in operations for last year's Q1.