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Incorporated today announced financial results, company
advancements, and customer successes for Fiscal 2012 which closed Sept.
30. Kronos revenues for the fiscal year increased 9 percent to $870
million. Earnings before interest, tax, depreciation, and amortization
(EBITDA) increased to $266 million.1
“We are thrilled with our company’s financial performance. We are
growing across all strategic aspects of our business – in the cloud,
through product innovation, in the small and midsize business market, in
the enterprise market, across our targeted vertical industries, and
globally,” said Aron Ain, Kronos chief executive officer. “As we
celebrate 35 years of innovation, we reflect upon our accomplishments –
and, more importantly – look ahead toward a continued aggressive growth
trajectory. As the pace-setter and game-changer in the workforce
management market, we will continue to deliver exceptional value to
customers around the globe.”
Fourth Quarter News Facts
In the last quarter of Fiscal 2012, Kronos signed agreements with
organizations around the world such as: CBS Interactive China,
the largest vertical media group in China; Celadon Group, Inc.,
one of North America’s leading transportation companies; City of
Tulsa, the second-largest city in the state of Oklahoma; Clemson
University, a major land-grant, science- and engineering-oriented
research university that maintains a strong commitment to teaching and
student success; ESCO Corporation,a leading independent
designer, manufacturer, and provider of highly engineered wear parts
and replacement products used in mining, infrastructure development,
power generation, aerospace and industrial applications; Gate
Gourmet, the world’s largest independent provider of catering and
provisioning services for airlines and railroads; Jerry’s
Enterprises, Inc., an operator of Jerry’s Foods, County Market, Cub
Foods, and Save-a-Lot
grocery stores; RaceTrac Petroleum, Inc., operator of a chain
of convenience stores across the Southern U.S.; Rail Corporation
New South Wales (RailCorp), Australian-provider of metropolitan
passenger rail services; Renault-Nissan Automotive India, the
India subsidiary of Renault-Nissan; Supermercados Peruanos, the
second-largest supermarket and hypermarket chain in Peru; Takshasila
Healthcare, a joint venture between Kirloskar, Secom, and Toyota
Tsusho of Japan; The Medical University of South Carolina, the
oldest medical school in the Southern U.S.; The Pentagon Force
Protection Agency, a civilian defense agency within the U.S.
Department of Defense; The YMCA of Greater Charlotte, a
United Way member agency comprised of 19 branches
and 2 resident camps; University College London Hospitals NHS
Foundation Trust (UCLH), one of the largest NHS Trusts in the U.K.
that provides first-class acute and specialist services in seven
hospitals in London; York Region Police, one of the largest law
enforcement organizations in the Greater Toronto area serving 1.1
million residents; and YRC Worldwide Ind., a Fortune 500
company headquartered in Overland Park, Kan., the holding company for
a portfolio of brands including YRC Freight, YRC Reimer, Holland,
Reddaway, and New Penn.
Fiscal 2012 News Facts
Growth in the Cloud
More than 6,000 organizations are now successfully deployed in the Kronos
Cloud. Kronos Cloud generates a fast return on investment
while alleviating the need to invest in and manage additional
infrastructure and staff. By choosing the Kronos Cloud,
organizations free their staff to focus on other business
objectives. Kronos now offers Workforce Central® in the
Kronos Cloud for medium and large enterprises and Workforce Ready™
in the Kronos Cloud for small and midsize businesses.
Growth Through Product Innovation
Workforce Central – Latest version (Workforce
Central 6.3) balances rich functionality with unprecedented
ease-of-use and includes innovative new features and
consumer-driven enhancements to meet the needs of global
customers, further improve usability, and expand functionality for
absence management and scheduling.
Kronos InTouch™– Revolutionary
time clock built for the modern workforce, Kronos
InTouch delivers an unrivaled user experience; seamless
integration to check accrual balances, request time off, and view
schedules; a cloud-based architecture; and the first and only
application platform devoted to improving productivity of the
Workforce Mobile™ – Latest version of
Kronos’ award-winning mobile
applications enables organizations to improve productivity by
making it easier for managers and employees to complete a wide
range of workforce-related tasks using a variety of mobile
devices. Enhancements include MobileViews, enabling the writing of
custom applications; advanced labor detail functionality; barcode
scanning capabilities; simplified timecard approvals; and GPS data
Workforce Analytics™ – Enhanced
labor analytics solution enables organizations to easily
access and leverage their workforce data to identify, predict, and
manage opportunities for cost savings and productivity gains.
Vertical-specific analytics applications include real-time
visibility into workforce and operational issues so concerns about
labor costs and workforce needs can be addressed immediately; an
intuitive, graphical management dashboard; sophisticated security
features that provide personalized intelligence; and
interoperability with an organization’s existing business
TeleStaff™ – Latest version of the Kronos TeleStaff
public safety scheduling and notification solution includes
enhancements that allow deployment on Microsoft SQL; new
shift-bidding statuses enabling employees to view and monitor the
status of their bids for shifts; and advanced reporting features.
Workforce Tablet™ – Today at KronosWorks,
Kronos announced availability of Workforce
Tablet, a sleek, easy-to-use tablet app that delivers
real-time, location-specific workforce information to frontline
managers so they can more effectively manage in the moment.
Workforce Task Management™ – Today at
KronosWorks, Kronos announced availability of Workforce
Task Management, a solution that simplifies store execution by
providing end-users with a streamlined approach to create,
approve, execute, and verify tasks. This drives productivity by
streamlining communication between corporate and stores as well as
increases sales and customer satisfaction by ensuring tasks are
completed on time and consistently across locations.
Growth in Small and Midsize Business (SMB) Market
SaaShr™ acquisition – By acquiring SaaShr.com,
Kronos significantly broadened its product portfolio and gained
access to an extensive network of partners and resellers. SaaShr
offers a software-as-a-service (SaaS) workforce management suite
for SMBs. Through its well-established network of payroll service
bureaus, professional employer organizations, human resources
outsourcers, and value-added resellers, SaaShr’s solutions
are used in thousands of organizations across a wide variety of
industries. Built from the ground up to operate in the cloud, SaaShr’s
multi-tenant architecture delivers a consistent user experience
across its suite of time and attendance, human resources, and
Workforce Ready – Accelerating its cloud strategy, Kronos
delivered a new suite of workforce management solutions for SMBs.
Built from the ground up and designed to run in the cloud with its
hosted multi-tenant architecture, Workforce
Ready shares a common technology platform for time and
attendance, human resources, and payroll applications; a universal
employee record; and single user interface across its entire suite
Growth in Enterprise Market and Targeted Vertical Industries
Large enterprise deployments – Kronos booked its
greatest-ever number of large orders in excess of $1 million.
Kronos’ vertical-specific expertise and the company’s innovative
product offerings are often cited as top reasons these
organizations selected Kronos. These large transactions included
significant orders from new and existing customers including one
of the top ten largest discount retailers; a global warehouse
retailer; a leading international hotel chain; one of the largest,
most comprehensive less-than-truckload networks in North America;
the second-largest chicken producer in the world; a leading
provider of emergency medical services in the U.S.; and one of the
top 25 national public universities.
OptiLink™ acquisition –
Accelerates Kronos healthcare workforce management leadership by
adding an industry-leading acuity-based staffing solution, OptiLink,
to its workforce management suite. Kronos now offers the most
advanced, clinically focused workforce management suite to help
healthcare organizations deliver high-quality patient care.
SMART™ acquisition – Supporting
its aggressive international growth strategy and strengthening its
presence in the Europe, Middle East, and Africa (EMEA) region,
Kronos acquired U.K.-based SMART
Computer Holdings and its Spanish affiliate SMART Human
Logistics. As a result, Kronos now offers the leading workforce
management solution for National Health Service (NHS)
organizations in the U.K., and established a physical presence in
Reseller agreements – Kronos extended its reach in the
Middle East through reseller agreements with Health
Matrix Corporation and OCSHI,
providers of technology solutions to the healthcare sector,
delivering an enhanced distribution network in the region, as well
as local knowledge and support for new healthcare customer
deployments. In addition, Kronos extended its reach in the India
market through a strategic alliance with Qimpro,
leveraging the company’s leadership in consulting to drive
workforce transformation in India.
Support for Multinationals – With deployments in more than
100 countries, Kronos is proficient at supporting large
multinational organizations. Kronos accommodates a vast array of
region-specific pay rules, bringing ease to the highly complex
task of paying employees around the world. Multinationals are
increasingly choosing Kronos for its global expertise and global
35 Years of Innovation – In October, Kronos celebrated
35 years of innovation. Since its founding in 1977, the company
has grown to be the global leader in the workforce management software
Take a look at the lighter side of workforce management in our Time
Well Spent cartoons.
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™.
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: (1) the write-down of deferred
revenue associated with purchase accounting for certain acquisitions.
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.
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