[July 23, 2015] |
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Kronos Reports Exceptional Third-Quarter Results; Majority of Customers Now in the Kronos Cloud; Company Continues to be Recognized as Great Place to Work
Kronos
Incorporated today announced financial results, company
advancements, and customer successes for the third quarter of Fiscal
2015. Kronos (News - Alert) recognized revenue for the quarter increased to $274.2
million. Earnings before interest, tax, depreciation, and amortization
(EBITDA) increased to $88.8 million1.
"Kronos continues to operate like a start-up company even after nearly
38 years in business with exciting momentum, expansion, and agility,"
said Aron Ain, Kronos chief executive officer. "Among the many
highlights of our third quarter include: 84 percent of new customer
product bookings were from an array of Kronos Cloud offerings; our
largest-ever SaaS (News - Alert) transaction; a major new release of our flagship
Workforce Central platform; shipment of our one-millionth time clock;
and yet more external recognition of our inspiring work culture. I am so
proud of our accomplishments, all of which ultimately help organizations
around the globe to best manage their most strategic asset - their
workforces."
Third-Quarter News Facts
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Kronos Cloud expansion - More than 15,000 organizations now run
in the Kronos Cloud, representing the majority of Kronos' global
customer base. During the quarter, Kronos software-as-a-service (SaaS)
bookings increased 74 percent and workforce management cloud revenue
increased 58 percent as new customers deploy in the cloud and existing
customers move their on-premise instances to the cloud at an
accelerating pace.
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New customer bookings in the quarter were from an array of Kronos
Cloud offerings, including almost all of the largest transactions.
Kronos secured its largest-ever new SaaS transaction during the
quarter, representing $22 million over a multi-year period.
Additional new Kronos Cloud customers announced during the quarter
include Crayola
LLC; Mercy
Hospital, Iowa City; Murray-Calloway
County Hospital; Smoothie
King; Willamette
Dental Group; and YMCA
of Greater Boston.
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The pace of existing customers converting from on-premise
instances to a Kronos Cloud offering is exceeding Kronos' high
expectations. Due to this continued high demand, Kronos announced
a Kronos
Cloud Readiness assessment service to help new and existing
customers maximize the value of migrating to the Kronos Cloud,
which allows customers to rely on Kronos to maintain their
workforce management solution, freeing up IT resources to focus on
other aspects of the business.
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Employer of choice - Kronos has become widely recognized as an
employer of choice according to its employee
engagement survey results and external recognition such as:
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Growth through innovation - Kronos software bookings increased
17 percent year over year1.
-
Kronos not only announced the latest release
of its Workforce Ready suite for small and midsize businesses
(SMBs), it also reimagined workforce management with the release
of Workforce Central 8. This latest release of the company's
flagship product suite combines a reimagined user experience with
unmatched industry-specific functionality, powerful analytics,
comprehensive global capabilities, and proven cloud delivery for a
complete, uncompromised solution that allows organizations to
control labor costs, minimize compliance risk, improve workforce
productivity, and increase employee engagement - regardless of an
organization's industry or where they do business.
-
While Kronos revenues are primarily derived from software and
services, during the quarter the company also achieved a hardware
milestone by shipping its one-millionth time clock.
-
Global successes - Kronos international product bookings
increased 21 percent year over year2.
-
Kronos continues to invest in regions where it sees strong growth
potential. Soon after the opening of its new Latin America
headquarters in Mexico City, Kronos relocated its Delhi/Noida,
India operations to a new 93,000 square-foot space to support its
growing software development, Kronos Cloud, professional services,
finance, and information technology functions. In the coming
weeks, Kronos will unveil its new and expanded UK headquarters in
Bracknell, England.
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Recognition of customer service excellence - Kronos was again
recognized by Omega Management Group Corp. as one of only two
companies to earn a NorthFace
ScoreBoard Award for 15 consecutive years. This award is presented
annually to organizations that consistently exceed customer
expectations, as rated by their customers.
-
Market adoption in the SMB sector - Momentum (News - Alert) in the SMB sector
was driven by sales of the Kronos Workforce Ready and Kronos Workforce
Central suites, and included sales to new customers as well as the
migration of existing Kronos customers to Workforce Ready. Kronos also
continues to experience significant traction in the Kronos SaaShr
partner channel.
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Expansion in the enterprise and within targeted industry segments
- The largest transactions during the quarter included new and
existing customers, such as one of the largest cities in Canada, which
selected a Kronos solution for use by approximately 12,000 employees
to complement its SAP HR implementation; a leading waste management
company that migrated its Kronos solution to the Kronos Cloud for use
by approximately 34,000 employees; a global technology and industrial
leader that extended its use of Kronos to accommodate an additional
10,000 employees in the Kronos Cloud; a world-class entertainment and
hospitality company that selected a Kronos solution for approximately
8,000 employees; and a major financial institution that purchased a
Kronos solution for use by its entire 30,000-employee population in
the Kronos Cloud.
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Kronos experienced one of its best-ever quarters in the company's
history in its healthcare vertical, with bookings well beyond
expectations. During the quarter, Kronos
also acquired physician scheduling vendor Productive Scheduling
Solutions to further extend its leadership in helping
healthcare organizations manage their workforces by leveraging a
complete, enterprise-wide workforce management solution.
Additionally, according to a new global study published by IHS (News - Alert)
Technology, Kronos
ranked as the market share leader in the medical human capital
management market.
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All other targeted vertical markets performed well, with momentum
across retail and hospitality, manufacturing, public sector, and
services and distribution.
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Customer success around the globe - In the third quarter of
Fiscal 2015, Kronos signed agreements with organizations around the
world, including: Alave Soluciones Aéreas, a provider of
comprehensive aviation services to airports in various Mexican cities; Con-Way
Inc., a leader in the transportation and logistics industry; Dallas/Fort
Worth International Airport, the primary international airport
serving the Dallas/Fort Worth area in Texas; Deer Park ISD, a
public school district in Deer Park, Texas; Golden Gate Bridge,
Highway & Transportation District, operator of the Golden Gate
Bridge, Golden Gate Transit buses, and Golden Gate Ferry; Hsu Fu
Chi International, a leading Chinese manufacturer of confectionary
products; Lafarge India Pvt Ltd., a world leader in building
materials and a major player in the cement, aggregates, and concrete
businesses; Lutheran Homes Society Inc., a
not-for-profit provider of senior living, youth, and outpatient
services in northwest Ohio and southeast Michigan; Montefiore
Medicine Academic Health System Inc., a premier academic
health system and the university hospital for the Albert Einstein
College of Medicine; Munson Healthcare, an nine-hospital,
not-for-profit system serving all of northern Michigan; Red Hawk
Casino, a casino in northern California; Saputo, a
producer, marketer, and distributor of a wide array of dairy
products; Start People, a specialized HR and recruitment
company based in Belgium; United Breweries Limited, a
market leader in the beer business in India with more than 50 percent
market share and a portfolio of winning brands, including its flagship
Kingfisher, a leading Indian beer brand around the world;
University Hospitals, serving patients through an integrated
network of hospitals, outpatient health centers, and physician offices
in northeast Ohio; The University of Texas MD Anderson Cancer Center,
an academic treatment and research center located in Houston; Wowprime, a
food and beverage company with 300 locations in Taiwan, China, and
South Asia; Vancouver Airport Authority, a community-based,
not-for-profit organization that manages Vancouver International
Airport (YVR); and Zeus Industrial Products, a leading
manufacturer of industrial tubing.
Supporting Resources
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™.
© 2015 Kronos Incorporated. All rights reserved. Kronos and the Kronos
logo are registered trademarks and Workforce Innovation That Works is a
trademark of Kronos Incorporated or a related company. See a complete
list of Kronos
trademarks. All other trademarks, if any, are property of their
respective owners.
Footnote 1: All financial information within this press release is
presented using 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 and compensation expenses
related to ordinary dividends; (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 and
other financing-related expenses that are excluded from the definition
of EBITDA under the terms of the company's Credit Agreement.
Footnote 2: Constant currency.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150723005647/en/
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