Strong Business Demand Drives Exceptional Financial Performance for Kronos in First Quarter
CHELMSFORD, Mass., Feb. 8, 2012 — Kronos Incorporated today announced financial results, company advancements, and customer successes for the first quarter of Fiscal 2012. Kronos revenues for the quarter increased 8 percent to $197.9 million. Earnings before interest, tax, and amortization (EBITA) increased 21 percent to $49.2 million.1 Product bookings growth of 20 percent for the quarter clearly indicates Kronos’ increasing market share.
"Kronos performed exceptionally well in the first quarter," said Aron Ain, Kronos chief executive officer. "There's no doubt that our strategy of innovation is creating business demand, driving our financial performance, and completely transforming the way organizations manage their workforce. We fully anticipate a continuation of this momentum throughout Fiscal 2012."
First-Quarter News Facts
- In the first quarter of Fiscal 2012, Kronos signed agreements with organizations around the world such as: ARAMARK, a global leader in providing award-winning professional services; Best Buy Mexico, a leading electronics retailer; Continuum Health Partners, parent company of four distinguished voluntary teaching hospitals including Beth Israel Medical Center, St. Luke's Hospital, Roosevelt Hospital, and New York Eye & Ear Infirmary; El Paso County in east central Colorado; Gaylord Entertainment, a leading hospitality and entertainment company based in Nashville, Tenn.; Harrison County Board of Supervisors in Harrison County, Mississippi, located along the Mississippi Gulf Coast; Hannaford Bros Co., a supermarket chain operating in New England and upstate New York; INTEGRIS Health,Oklahoma's largest health system; Lehigh Hanson, one of the largest construction materials companies in North America and part of the Heidelberg Cement Group; Maryland Live! Casino, a gaming and entertainment destination located in Maryland; Palm Beach County Fire Rescue, the largest fire/rescue agency in Palm Beach County, Florida; Peet's Coffee & Tea, specialty coffee roaster and retailer; Pep Boys, a full-service and tire automotive aftermarket chain; Prestige Care, assisted living skilled nursing and retirement communities in eight Western states; Purdue University, located in West Lafayette, Ind., the flagship university of the six-campus Purdue University system; Ridgeview Medical Center, an independent, regional health care network serving the west-metro area in Minnesota; Sainsbury's, a leading food retailer with more than 150,000 colleagues across more than 1,000 sites in the UK; Saint Luke's Hospital of Kansas City, a faith-based, not-for-profit health system; SEHA (Abu Dhabi Health Services Company), an independent public joint stock company founded to manage the curative activities of the public hospitals and clinics of the Emirate of Abu Dhabi; The City of Nashua, the second-largest city in New Hampshire; TheChildren’s Hospital of Philadelphia(CHOP), one of the largest and oldest children's hospitals in the world; Tru Blu Beverages, a leading Sydney, Australia-based manufacturer of juices, mineral waters, soft drinks, and energy drinks; and Winter Haven Hospital, serving as the major medical center for east Polk and Highlands counties in Florida.
- Sales of revolutionary new time clock exceed expectations – The new Kronos InTouch™ time clock reshapes the way organizations think about, and employees interact with, their workforce management solutions. Kronos booked nearly 4,000 units of InTouch in the first 45 days, as organizations across all targeted vertical markets begin to embrace the time clock's unrivaled user experience, seamless integration, cloud readiness, application platform, and rock-solid reliability.
- Product revenue growth continues – For the past two years, Kronos has been delivering on its vision for the next generation of workforce management, innovating faster than ever before by delivering unprecedented functionality and ease of use. Its new user interface, mobile applications, and InTouch time clock are quickly achieving widespread adoption, contributing to product revenue growth in the first quarter. As another indication of its innovative product offerings, in a year-over-year comparison, Kronos closed more transactions with new customers during the quarter. In addition, sales of its labor analytics, human resources and payroll, and scheduling products significantly increased year over year. During the quarter, Kronos delivered the latest version of its award-winning mobile applications and a major new release of its Workforce Central® suite.
- Million-dollar orders on the rise – Kronos closed a significant number of million-dollar orders in the quarter, with significant orders from new and existing customers including a leading international hotel chain; multinational healthcare products manufacturer; leading food retailer; multinational food service and facilities management company; highly respected university; and several state department of transportation groups.
- Vertical expertise as a competitive differentiator – Kronos' vertical-specific approach to software and services continues to deliver enormous benefits to organizations seeking to control labor costs, minimize compliance risk, and improve workforce productivity. Continued expansion took place within all industry groups, with significant acceleration in retail, hospitality, public sector, manufacturing, and long-term care.
- Cloud services continues steady growth – Annual contract bookings increased 88 percent year over year, as organizations increasingly embrace Kronos' cloud services offering including application hosting and system management and monitoring. Today Kronos hosts its application for hundreds of current customers.
- Strong contribution from international regions – International product bookings increased a stunning 48 percent year on year. Significant product wins occurred around the globe including meaningful customer expansion in the Middle East, UK, South Africa, India, and Mexico. Today Kronos is the only workforce management provider with a true global solution that meets complex work rules in more than 80 countries where Kronos products are installed.
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 80 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.
© 2012 Kronos Incorporated. All rights reserved. Kronos and Workforce Central are registered trademarks and InTouch is a 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.