Kronos Continues to Grow; Announces Strong First-Quarter Results
CHELMSFORD, Mass., Feb. 2 , 2011 — Kronos Incorporated today announced financial results, company advancements, and customer successes for the first quarter of Fiscal 2011. Kronos® revenues for the quarter were approximately $176.4 million. Earnings before interest, tax, and amortization (EBITA) were approximately $36.8 million.1
"We are pleased with our first-quarter performance. Our market presence continues to grow around the world, as evidenced by a 150-percent year-over-year increase in new customer contracts. We also experienced strong performance in many of our major vertical markets and fantastic momentum with our managed services offering," said Aron Ain, Kronos chief executive officer. "We're excited about our opportunities for growth in Fiscal 2011, which we expect will be fueled in part through the market's enthusiastic reaction to our next generation of workforce management solutions."
First-Quarter News Facts
- In the first quarter of Fiscal 2011, Kronos signed agreements with organizations around the world such as: Banner Health, Arizona’s leading healthcare provider and second-largest private employer; Beaver Dam Community Hospitals, Inc., a non-profit health system serving Dodge, Columbia, and Fond du Lac counties in Wisconsin; Brandywine Senior Living, provider of senior living services including independent, assisted living, and rehabilitation services throughout the East coast; Brightpoint, a global leader in providing supply chain solutions to leading stakeholders in the wireless industry; Chesapeake Energy Corporation, the second-largest producer of natural gas and the most active driller of new wells in the U.S.; Dynamic Industries, a Gulf Coast-based company with offices and fabrication facilities in Louisiana and Texas; Forward Air, operator of the largest and most comprehensive network of surface transportation of deferred air freight; Harden Healthcare, provider of healthcare services, primarily for seniors, with operations in 13 states; MeadWestvaco Corporation, provider of packaging solutions to many of the world’s most-admired brands; Municipality of Anchorage, the largest city in the state of Alaska; Northeast Health Systems, a regional, comprehensive, not-for-profit network of healthcare, supportive housing, and community services; Pala Casino Spa & Resort, a Las Vegas-style casino and hotel in California; P.H. Glatfelter, global supplier and leading manufacturer of quality printing papers, specialty papers, and engineered and composite fibers products; Piedmont HealthCare, one of the largest physician-owned and directed, multi-specialty groups in North Carolina and the Southeast region; Sprenger Health Care Centers, a family of nine rehabilitation and retirement communities located throughout Northeast Ohio; Stanley Convergent Security Solutions, part of Stanley Black & Decker, the second-largest electronic security company; The Nebraska Medical Center, the state’s largest healthcare facility and teaching hospital with respected transplant, oncology, neurology, cardiology, and women’s services programs; Valitas Health Services, one of the largest providers of clinical contract staffing and related healthcare management services in the U.S.; and Vanderbilt University Medical Center, a comprehensive healthcare facility dedicated to patient care, research, and biomedical education.
- New customer adoption increases significantly in many major vertical markets – The healthcare, manufacturing, and services verticals delivered particularly strong results including significant orders from the largest catholic healthcare system and largest nonprofit provider in the U.S.; a major automotive manufacturing facility in the Southeast; and Fifth Third Bancorp, a diversified financial services company headquartered in Cincinnati, Ohio.
- Managed services offering achieving tremendous momentum – The four largest customer agreements signed during the quarter included Kronos' managed services offering to maximize their investment in workforce management technology. Kronos’ managed services offering enables IT departments to focus resources on other projects as the Kronos team performs all configuration, maintenance, upgrades, and support of the Kronos solution as well as hosts the Kronos application.
- Next generation user interface receiving remarkable response – Kronos continues to invest aggressively in harnessing the ease of use and intuitiveness of consumer-oriented technologies to help organizations better manage their workforce. Kronos has shipped its new next generation user interface software to be used by more than 1.7 million employees in a variety of vertical markets. The company continues to lead the market in delivery of innovative mobile technology, having recently announced availability of mobile applications for managers and employees.
- Global expansion – Kronos continues to execute its aggressive global expansion strategy, and is seeing increasing momentum in the Europe, Middle East, and Africa (EMEA) region fueled by growing demand for workforce management solutions. China had a particularly strong quarter, with an 85-percent year-over-year increase in revenue with organizations such as Chengdu Tianbao Heavy Industry Co., Ltd. purchasing a Kronos solution and Schneider China Group expanding its rollout to additional factories in Shanghai and Xiamen.
About Kronos Incorporated
Kronos is the global leader in workforce management solutions that enable organizations to control labor costs, minimize compliance risk, and improve workforce productivity. Tens of thousands of organizations in 60 countries — including more than half of the Fortune 1000® — use Kronos time and attendance, scheduling, absence management, HR and payroll, hiring, and labor analytics applications. To learn how Kronos uniquely delivers complete automation and high-quality information in an easy-to-use solution, visit www.kronos.com.
© 2011 Kronos Incorporated. All rights reserved. Kronos is a registered trademark of Kronos Incorporated or a related company. All other trademarks are property of their respective owners.
Footnote 1: Revenue excludes purchase accounting adjustments related to the company going private in June 2007 and its acquisitions since June 2007. EBITA excludes purchase accounting adjustments, FAS 123R charges, and non-recurring, unusual charges