Skip navigation
Skip navigation
You are using an outdated browser. Please upgrade your browser.

CHELMSFORD, Mass., Oct 29, 2002 (BUSINESS WIRE) -- Kronos(R) Incorporated (Nasdaq: KRON), today reported that on a GAAP basis, net income for the fourth quarter of Fiscal 2002 was $10.4 million, or $.52 per diluted share, as compared to $10.3 million, or $.52 per diluted share, for the same period a year ago. Pro forma net income for the same period last year was $11.3 million, or $.57 per diluted share. For comparability, the pro forma net income and per diluted share results for the fourth quarter of the prior fiscal year have been adjusted to eliminate $1.5 million related to the impact of new accounting provisions relative to the amortization of goodwill. Kronos adopted the new accounting provisions effective Oct. 1, 2001. Revenue for the fourth quarter rose 14 percent to $99.2 million as compared to $86.7 million for the same period a year ago.

For the twelve-month period, net income on a GAAP basis increased 75 percent to $28.8 million, or $1.42 per diluted share, compared to $16.5 million, or $.85 per diluted share, for the same period last year. On a pro forma basis, net income for the twelve-month period of the previous year was $22.7 million or $1.17 per diluted share. For comparability, the pro forma net income and per diluted share results for the twelve-month period last year have been adjusted to eliminate a $3.7 million special charge related to the termination of Kronos' CrossWind operations, the cost of severance and other benefits related to a workforce reduction and $5.2 million attributable to the amortization of goodwill. Revenue for the twelve-month period was up 16 percent to $342.4 million as compared to $295.3 million for the twelve months of the prior year.

"We are pleased to have finished the year with such strong momentum, especially during what was a challenging twelve months for so many other companies," said Mark S. Ain, Kronos' chief executive officer. "We are also pleased to end the fiscal year with a record $74.7 million in cash and investments, which is especially noteworthy considering that we spent $31.9 million on acquisitions and an additional $25.2 million on stock buy backs during the year.

We believe several strategies enabled us to grow the business and cross the $300 million revenue mark. First, our steady investment in research and development has improved our competitiveness. Second, the sheer nature of what we offer - tools that help trim labor costs and improve productivity - is receiving utmost attention as organizations search for ways to maneuver through lagging economic conditions. But perhaps the most significant contributor to our success is that we have tens of thousands of customers who find considerable value in our products and services. It's great to have built such a strong platform for us to address the opportunity ahead."

For the fourth quarter, earnings before interest expense, taxes, depreciation and amortization (EBITDA) was $22.1 million or $1.11 per diluted share as compared to pro forma EBITDA of $22.4 million or $1.13 per diluted share for the same quarter a year ago. For the twelve months of this year, EBITDA increased 25 percent to $66.5 million or $3.27 per diluted share, from pro forma EBITDA of $53.2 million or $2.75 per diluted share for the same period last year. Cash flow from operations was $27.5 million for the quarter compared to $20.1 million for the fourth quarter of the previous year. For the twelve-month period, cash flow from operations was $70.2 million compared to $54.4 million for the previous twelve months. Days sales outstanding (DSO) for trade accounts receivable, excluding receivables obtained from acquisitions and leases, were 60 days at the end of the quarter.

"At a time when so many companies are shrinking, we are experiencing growth in our core business," continued Ain. "We are very proud that some of our growth came from carefully planned and well-executed acquisitions. We recognized early on as the economy weakened that we could sustain our growth by accelerating our new product development and by making acquisitions."

This marks Kronos' 91st consecutive quarter of revenue growth compared to the same period in the previous year, and 62nd consecutive quarter of profitability.

Fiscal 2003 Outlook

"We are optimistic about our path ahead and confident that we have the solutions, resources and people to be successful. We remain committed to delivering more value to our customers and shareholders, and we will continue to work hard to sustain our record of comparable revenue and earnings growth," concluded Ain. Assuming that the economy does not worsen, and despite our substantial investment in HRMS which will significantly impact profitability early in the year, we expect to report Fiscal 2003 revenue in the range of $375-385 million and earnings in the range of $1.55-1.65 per share. For the first quarter of the new fiscal year we anticipate revenues between $84-88 million with earnings per share between $.30-.34."

About Kronos Incorporated

Kronos Incorporated is a single-source provider of integrated human resources, payroll and labor
management solutions. Kronos products and services help organizations align their people, processes and technology to improve individual productivity and boost overall business performance. Capitalizing on deep-rooted expertise honed over 25 years, Kronos empowers more than 40,000 organizations worldwide to better manage their workforce. Learn more at http://www.kronos.com

Safe Harbor Statement

This press release contains forward-looking statements that involve a number of risks and uncertainties, including the performance estimates and statements relating to earnings and revenue growth, the ability to close potential product sales transactions and the market acceptance of our new products, our ability to monitor and manage discretionary costs, growth in the market for our products and within the economy generally, and potential acquisitions. Among the important factors that could cause actual operating results to differ materially from those indicated by such forward-looking statements are delays in product development, including enhancements to existing products, product performance issues, competitive pressures, general economic conditions, possible disruption in commercial activities caused by terrorist activity and armed conflict, such as changes in logistics and security arrangements and the risk factors detailed in the company's periodic reports and registration statements filed with the Securities and Exchange Commission. The timing of the release of new products or product enhancements will take place if and when available and at the sole discretion of Kronos.


For more information

Jacqui Freeman
JD Marketing
0208297 5388

Or email jacquif@jdmarketing.co.uk

This press release was distributed by ResponseSource Press Release Wire on behalf of JD Marketing in the following categories: Consumer Technology, Personal Finance, Business & Finance, Computing & Telecoms, for more information visit https://pressreleasewire.responsesource.com/about.