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Kronos Continues to Change the Game in Workforce Management; Reports Strong Fiscal 2012 Financial Performance

Kronos 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 frontline workforce.
    • 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 collection.
    • Workforce AnalyticsEnhanced 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 intelligence tool.
    • 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 payroll applications.
    • 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 of applications.
  • 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.
  • Growth Internationally
    • 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 Spain.
    • 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 product capabilities.
  • 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 market.

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.

© 2012 Kronos Incorporated. All rights reserved. Kronos and Workforce Central are registered trademarks and Workforce Ready, InTouch, Workforce Mobile, Workforce Analytics, TeleStaff, Workforce Tablet, Workforce Task Management, SaaShr, OptiLink, and SMART 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: (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.

About Business Wire
Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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