Kronos Reports Outstanding Third-Quarter Results; Product Bookings Increase 26 Percent
CHELMSFORD, Mass.--(BUSINESS WIRE)-- Kronos Incorporated, the global leader in delivering workforce management solutions in the cloud, today announced financial results, company advancements, and customer successes for the third quarter of Fiscal 2013. Kronos revenue for the quarter increased 10 percent to $248 million with product bookings increasing 26 percent. Earnings before interest, tax, depreciation, and amortization (EBITDA) increased 14 percent to $78.8 million.1
"With an outstanding 26 percent year-over-year increase in product bookings - an all-time Kronos record - Kronos is clearly experiencing remarkable momentum," said Aron Ain, Kronos chief executive officer. "We are 'firing on all cylinders', executing beautifully across all aspects of our business. The Kronos Cloud remains the fastest-growing aspect of our business, with workforce management cloud bookings doubling and rapid adoption in a broad spectrum of industry segments. Tremendous growth in the SMB sector continues to exceed company expectations, having a very positive impact on our company's trajectory. Moving into the final quarter of Fiscal 2013 - and based on enthusiastic adoption of our innovative workforce management solutions across all targeted industries - we are on track to surpass our financial targets and report another record year."
Third-Quarter News Facts
Kronos Cloud expanding rapidly - The Kronos Cloud continues to grow at a breathtaking rate. New customers are rapidly embracing the industry's most robust and comprehensive workforce management cloud platform, while existing customers are increasingly moving their on-premise deployments into the Kronos Cloud. More than 8,000 organizations now leverage the Kronos Cloud, seizing the vast benefits of cloud computing.
Groundbreaking products - Kronos delivered Workforce Central® 7 during the quarter - a groundbreaking release designed to make workforce management easier than ever. A product of the expertise and vision of Kronos staff guided by input, advice, and direction from the world's largest user base of workforce management solutions, Workforce Central 7 expands on the unrivaled Kronos user experience and contains hundreds of enhancements to further simplify the day-to-day lives of managers and employees. From managing in the moment via the device of choice, to finding value in big data, to helping organizations effectively manage a global workforce and all its complexities with ease, Workforce Central 7 delivers on all fronts.
Accelerated SMB sector performance - In the past 15 months, Kronos launched its SMB partner network and its Workforce Ready™ SaaS offering for the SMB sector. By all measures, the company is outperforming expectations in the SMB sector, bringing hundreds of new organizations onto the workforce management platforms every quarter. The latest release of the fast-selling Workforce Ready suite makes it easier than ever for SMBs to gain competitive advantage by more effectively managing their workforces.
Global workforce management momentum - International product bookings increased year over year, with excellent momentum in Australia as both new customers signed on and existing customers expanded their use of Kronos. China also had a very strong quarter, including a major win with a global operator of theme parks. All international regions are seeing strong demand for the Kronos Cloud.
Unique cloud partnership for global workforce management - Expanding the company's global opportunities, during the quarter, Kronos and SuccessFactors, an SAP company, formed a partnership to help global organizations more effectively manage their workforces through integrated workforce management, human resources, payroll, and talent management in the cloud.
Tremendous demand for time clocks - While organizations are increasingly choosing Kronos mobile solutions to capture employee time-worked data from employees any time, any place, time clocks remain the data collection option of choice for many employers around the world. During the quarter, Kronos sold a record-breaking number of time clocks, in part driven by enthusiastic adoption of the Kronos InTouch® time clock. InTouch offers an unrivaled user experience that is reshaping the way organizations think about - and employees interact with - their workforce management solution.
Customer successes around the globe - In the third quarter of Fiscal 2013, Kronos signed agreements with organizations around the world such as: Aloha Petroleum Ltd., a petroleum marketer and convenience store operator in Hawaii; Anglican Aged Care Services Group t/a Benetas (Australia), a leading not-for-profit aged care service provider; Best Yet Market Inc., a chain of grocery stores located throughout New York Tri-State Area; Buc-ee's, a chain of convenience stores in Texas; Corizon Health, provider of healthcare services at correctional facilities in the U.S.; Family Dollar,a chain of more than 7,800 stores providing everyday low prices on merchandise to customers across 45 states; Fresno Community Hospital and Medical Center, a healthcare provider operating three hospital in California; Geisinger Health System, an integrated health services organization in Pennsylvania; Genesee County, Michigan's fifth-most populous county; Hinds Community College, the largest community college in Mississippi; Lehigh Hanson, one of the largest construction materials companies in North America and a part of HeidelbergCement Group, the global market leader in aggregates with leading positions in cement, concrete, and other downstream activities; Life Time Fitness Inc.,The Healthy Way of Life Company®, an operator of sports, professional fitness, family recreation and resort/spa destinations and programming in the U.S. and Canada; Maricopa Integrated Health System, a healthcare system inclusive of a teaching hospital, medical centers, and clinics in Arizona; Metropolitan Government of Nashville and Davidson County, a government servicing residents of the city of Nashville and Davidson County and Metropolitan Nashville Public Schools, the nation's 42nd largest district; Nespresso, the worldwide pioneer and reference in premium portioned, single-serve coffee; Norton Healthcare, a leading not-for-profit healthcare system based in Kentucky; Ridley Corporation Limited, Australia's premium provider of high performance animal nutrition solutions; Sodexo Ltd (UK), a global food services and facilities management company; State of Alabama - State Business Systems, a cross-discipline unit that supports state-wide business processes; Tesla Motors Inc., a manufacturer and designer of electric vehicles; and Treasury Wine Estates Australia Ltd, a global winemaking and distribution company.
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 www.kronos.com. Kronos: Workforce Innovation That Works™.
© 2013 Kronos Incorporated.All rights reserved.Kronos, Workforce Central, and InTouch are registered trademarks and Workforce Ready and Workforce Innovation That Works are trademarks 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. Product bookings represent gross product value of product orders and the product equivalent value of SaaS orders. 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.
Michele Glorie, +1 978-947-2855
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