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8-K - FORM 8-K - MONSTER WORLDWIDE, INC.c95504e8vk.htm
EX-2.1 - EXHIBIT 2.1 - MONSTER WORLDWIDE, INC.c95504exv2w1.htm
EX-99.3 - EXHIBIT 99.3 - MONSTER WORLDWIDE, INC.c95504exv99w3.htm
EX-99.1 - EXHIBIT 99.1 - MONSTER WORLDWIDE, INC.c95504exv99w1.htm
Exhibit 99.2
(MONSTERWORLDWIDE LOGO)
Monster Worldwide Reports Fourth Quarter and Full Year 2009 Results
Revenue of $213 Million; Deferred Revenue of $306 Million Increases 15% Over Third Quarter 2009 Balance
Diluted Loss per Share from Continuing Operations of $0.02; Non-GAAP Diluted Loss Per Share of $0.01
Non-GAAP Operating Expenses of $213 Million Decline 15% Over Prior Year
Net Cash and Securities Increases $16 Million Sequentially to $250 Million at Year End
Monster Enters into Agreement to Acquire Yahoo! HotJobs and Enters Multi-Year Traffic Agreement with Yahoo!
New York, February 3, 2010— Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the fourth quarter and full year ended December 31, 2009.
Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide, said, “We ended the year with a strong sales quarter as our major geographic markets showed signs of continued stability and improvement. Our new resume search product, powered by our precision 6Sense™ technology, was successfully introduced to US customers in late October. The proposed acquisition of HotJobs and the traffic agreement with Yahoo! will allow Monster to add relevant job seekers efficiently while significantly expanding our customer base. We are excited about our progress in building Monster as we enter 2010 and are confident we are well positioned to capture additional market share as the global economy recovers.”
Fourth Quarter Results
Total revenue declined 27% to $213 million compared with $293 million, on a pro-forma basis, in the comparable quarter of 2008. Monster Worldwide generated 42% of its revenue outside the United States and total revenue was positively impacted by approximately $8 million from foreign exchange rates.

 

 


 

Total Careers revenue decreased 30% to $179 million. Careers-North America generated revenue of $91 million compared with $135 million in the prior year period, a 33% decline. Careers-International revenue decreased 28% to $88 million compared to the prior year period. Internet Advertising & Fees generated revenue of $34 million, a slight increase over the $33 million reported in last year’s fourth quarter.
Consolidated operating expenses were $210 million, and the loss from continuing operations was $2 million, or $0.02 per diluted share, compared to income from continuing operations of $29 million, or $0.24 per diluted share, in last year’s fourth quarter. Foreign exchange rates negatively impacted consolidated operating expenses by approximately $6 million.
Income from continuing operations for the quarter ended December 31, 2009 included pre-tax pro forma adjustments of $2.7 million, or $0.6 million net of tax. These pre-tax pro forma adjustments consist of the following: a $6.1 million charge resulting from the settlement of litigation and an other-than-temporary impairment relating to the Company’s remaining auction rate securities; a $2.9 million charge resulting from global staff consolidation; a $1.7 million charge related to facilities consolidation; and an $8.0 million benefit associated with payments from former officers as part of the litigation settlement related to historical stock option grant practices. These pro forma items are fully described in the “Notes Regarding the Use of Non-GAAP Financial Measures” and are reconciled to the GAAP measure in the accompanying tables.
On a non-GAAP basis, Monster Worldwide recorded $213 million of operating expenses. The loss from continuing operations was $1 million, or $0.01 per diluted share, compared to income of $28 million, or $0.24 per diluted share, in the comparable prior year period.
Cash generated from operating activities was $33 million in the fourth quarter of 2009. The Company’s overall net cash position increased $16 million during the quarter. Capital expenditures were $10 million, down from $22 million in last year’s fourth quarter and $12 million in the prior quarter of 2009.

 

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Monster Worldwide’s deferred revenue balance at December 31, 2009 was $306 million, compared with last year’s fourth quarter balance of $414 million, and $266 million reported for the third quarter of 2009.
Monster ended the fourth quarter of 2009 with total available liquidity of $549 million, and net cash and securities of $250 million, compared with net cash and securities of $234 million at the end of the 2009 third quarter.
Monster Enters into Agreement to Acquire Yahoo! HotJobs and Enters Multi-Year Traffic Agreement with Yahoo!
In a separate news release, Monster Worldwide announced that it has entered into a definitive agreement with Yahoo! under which the Company will acquire the assets of Yahoo! HotJobs, a leading online recruitment website. Additionally, Monster and Yahoo! have entered into a multi-year commercial traffic agreement, effective upon the closing of the acquisition, in which Monster will become Yahoo!’s provider of career and job content on the Yahoo! homepage in the United States and Canada. The transaction combines Monster’s online career expertise and history of innovation with Yahoo!’s vast network of traffic and provides significant benefits to millions of job seekers and customers globally.
Full Year Results
Monster Worldwide reported total revenue of $905 million for the full year ended December 31, 2009 compared to $1.3 billion last year, a 33% decrease, or 29% excluding the impact of foreign exchange rates. Monster Careers revenue declined to $773 million compared with $1.2 billion in 2008. Internet Advertising & Fees reported revenue of $133 million, a slight increase over the $130 million reported in the prior year. The Company reported income from continuing operations of $19 million, or $0.16 per diluted share, compared to income from continuing operations of $114 million, or $0.94 per diluted share in the prior year period.
Supplemental Financial Information
The Company has made available certain supplemental financial information, in a separate document that can be accessed directly at: http://about-monster.com/sites/default/files/q409_supplement.pdf or through the Company’s Investor Relations website at http://ir.monster.com.

 

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Webcast Information
Fourth quarter 2009 results will be discussed on Monster Worldwide’s quarterly conference call taking place on February 3, 2010 at 5:00 PM ET.  To join the conference call, please dial (877) 760-8985 at 4:50 PM ET and reference conference ID# 52168293.  For those outside the United States, please dial (706) 758-9636 and reference the same conference ID#.  The call will begin promptly at 5:00 PM ET.  Individuals can also access Monster Worldwide’s quarterly conference call online through the Investor Relations section of the Company’s website at http://ir.monster.com.  For a replay of the call, please dial (800) 642-1687 or outside the United States dial (706) 645-9291 and reference ID #52168293.  This number is valid until midnight on Feb 10, 2009.  
Contacts
Investors: Robert Jones, (212) 351-7032, Robert.Jones@monsterworldwide.com
Media: Matt Henson, (978) 823-2627, Matthew.Henson@monster.com
About Monster Worldwide
Monster Worldwide, Inc. (NYSE: MWW), parent company of Monster(R), the premier global online employment solution for more than a decade, strives to inspire people to improve their lives. With a local presence in key markets in North America, Europe, Asia and Latin America, Monster works for everyone by connecting employers with quality job seekers at all levels and by providing personalized career advice to consumers globally. Through online media sites and services, Monster delivers vast, highly targeted audiences to advertisers. Monster Worldwide is a member of the S&P 500 index. To learn more about Monster’s industry-leading products and services, visit www.monster.com.
Notes Regarding the Use of Non-GAAP Financial Measures
The Company has provided certain non-GAAP financial information as additional information for its operating results. These measures are not in accordance with, or an alternative for, generally accepted accounting principles (“GAAP”) and may be different from non-GAAP measures reported by other companies. The Company believes that its presentation of non-GAAP measures provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations.
Non-GAAP revenue, operating expenses, operating income, operating margin, income from continuing operations and diluted earnings per share all exclude certain pro forma adjustments including: net costs associated with the Company’s historical stock option grant practices, related litigation and potential fines or settlements; severance costs for former executive officers incurred in the second quarter of 2007; costs related to the measures taken by the Company in response to a security breach in August 2007; the strategic restructuring actions initiated in the third quarter of 2007; severance and facility charges primarily related to the product and technology global reorganization; the fair value adjustment to deferred revenue in connection with the acquisition of ChinaHR; realized and unrealized losses on available for sale securities; and a net non-cash benefit relating to the reversal of an income tax liability for uncertain tax positions. The Company uses these non-GAAP measures for reviewing the ongoing results of the Company’s core business operations and in certain instances, for measuring performance under certain of the Company’s incentive compensation plans. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

 

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Operating income before depreciation and amortization (“OIBDA”) is defined as income from operations before depreciation, amortization of intangible assets, amortization of stock based compensation and non-cash costs incurred in connection with the Company’s restructuring program. The Company considers OIBDA to be an important indicator of its operational strength. This measure eliminates the effects of depreciation, amortization of intangible assets, amortization of stock based compensation and non-cash restructuring costs from period to period, which the Company believes is useful to management and investors in evaluating its operating performance. OIBDA is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies.
Free cash flow is defined as cash flow from operating activities less capital expenditures. Free cash flow is considered a liquidity measure and provides useful information about the Company’s ability to generate cash after investments in property and equipment. Free cash flow reflected herein is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies. Free cash flow does not reflect the total change in the Company’s cash position for the period and should not be considered a substitute for such a measure.
Net cash and securities is defined as cash and cash equivalents plus short-term and long-term marketable securities, less total debt. Total available liquidity is defined as cash and cash equivalents, plus short-term and long-term marketable securities plus unused borrowings under our credit facility. The Company considers net cash and securities and total available liquidity to be important measures of liquidity and indicators of its ability to meet its ongoing obligations. The Company also uses net cash and securities and total available liquidity, among other measures, in evaluating its choices for capital deployment. Net cash and securities and total available liquidity are presented herein as non-GAAP measures and may not be comparable to similarly titled measures used by other companies.
Special Note: Except for historical information contained herein, the statements made in this release, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risks and uncertainties, including statements regarding the Company’s strategic direction, prospects and future results. Certain factors, including factors outside of our control, may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, risks associated with acquisitions or dispositions, competition, and the other risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated into this release by reference.

 

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MONSTER WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
                                 
    Three Months Ended December 31,     Twelve Months Ended December 31,  
    2009     2008     2009     2008  
 
                               
Revenue
  $ 213,149     $ 290,672     $ 905,142     $ 1,343,627  
 
                       
 
                               
Salaries and related
    115,047       130,435       463,749       543,268  
Office and general
    49,472       61,608       231,288       282,699  
Marketing and promotion
    45,260       52,684       209,661       291,198  
(Reversal of) Provision for legal settlements, net
                (6,850 )     40,100  
Restructuring and other special charges
          3,156       16,105       16,407  
 
                       
Total operating expenses
    209,779       247,883       913,953       1,173,672  
 
                       
 
                               
Operating income (loss)
    3,370       42,789       (8,811 )     169,955  
 
                               
Interest and other, net
    (7,059 )     1,560       (5,828 )     17,283  
 
                       
 
                               
(Loss) income from continuing operations before income taxes and equity interests
    (3,689 )     44,349       (14,639 )     187,238  
 
                               
(Benefit from) provision for Income Taxes
    (2,420 )     14,880       (37,883 )     64,910  
Loss in equity interests, net
    (844 )     (339 )     (4,317 )     (7,839 )
 
                       
 
                               
(Loss) income from continuing operations
    (2,113 )     29,130       18,927       114,489  
 
                               
(Loss) income from discontinued operations, net of tax
          (536 )           10,304  
 
                       
 
                               
Net (loss) income
  $ (2,113 )   $ 28,594     $ 18,927     $ 124,793  
 
                       
 
                               
Basic (loss) earnings per share:*
                               
 
                               
(Loss) income from continuing operations
  $ (0.02 )   $ 0.25     $ 0.16     $ 0.95  
Income from discontinued operations, net of tax
                      0.09  
 
                       
Basic (loss) earnings per share
  $ (0.02 )   $ 0.24     $ 0.16     $ 1.04  
 
                       
 
                               
Diluted (loss) earnings per share:
                               
 
                               
(Loss) income from continuing operations
  $ (0.02 )   $ 0.24     $ 0.16     $ 0.94  
Income from discontinued operations, net of tax
                      0.09  
 
                       
Diluted (loss) earnings per share
  $ (0.02 )   $ 0.24     $ 0.16     $ 1.03  
 
                       
 
                               
Weighted average shares outstanding:
                               
 
                               
Basic
    119,575       118,601       119,359       120,557  
 
                       
 
                               
Diluted
    119,575       119,380       121,170       121,167  
 
                       
 
                               
Operating income before depreciation and amortization:
                               
 
                               
Operating income (loss)
  $ 3,370     $ 42,789     $ (8,811 )   $ 169,955  
Depreciation and amortization of intangibles
    17,849       17,517       68,533       58,020  
Amortization of stock-based compensation
    9,572       7,224       39,921       28,692  
Restructuring non-cash expenses
          924       4,723       4,857  
 
                       
 
                               
Operating income before depreciation and amortization
  $ 30,791     $ 68,454     $ 104,366     $ 261,524  
 
                       
     
*   Earnings per share may not add in certain periods due to rounding.

 

 


 

MONSTER WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
                 
    Year Ended December 31,  
    2009     2008  
Cash flows provided by operating activities:
               
Net income
  $ 18,927     $ 124,793  
 
           
Adjustments to reconcile net income to net cash provided by operating activities:
               
(Income) from discontinued operations, net of tax
          (10,304 )
Depreciation and amortization
    68,533       58,020  
(Reversal of) Provision for legal settlements, net
    (6,850 )     40,100  
Provision for doubtful accounts
    10,154       16,231  
Non-cash compensation
    39,921       29,853  
Loss in equity interests
    4,317       7,839  
Non-cash restructuring write-offs, accelerated amortization and other
    8,960       3,933  
Deferred income taxes
    1,189       7,430  
Changes in assets and liabilities, net of acquisitions:
               
Accounts receivable
    80,462       112,520  
Prepaid and other
    (2,669 )     23,168  
Deferred revenue
    (111,634 )     (118,299 )
Payments for legal settlements, net
          (29,887 )
Accounts payable, accrued liabilities and other
    (66,585 )     (32,714 )
Net cash used for operating activities of discontinued operations
          (6,849 )
 
           
Total adjustments
    25,798       101,041  
 
           
Net cash provided by operating activities
    44,725       225,834  
 
           
 
               
Cash flows provided by (used for) investing activities:
               
Capital expenditures
    (48,677 )     (93,627 )
Payments for acquisitions and intangible assets, net of cash acquired
    (300 )     (292,836 )
Purchase of marketable securities
    (8,585 )     (183,932 )
Sales and maturities of marketable securities
    70,977       539,286  
Cash funded to equity investee
    (6,299 )     (6,402 )
Dividends received from unconsolidated investee
    763       1,011  
Net cash used in investing activities of discontinued operations
           
 
           
Net cash provided by (used for) investing activities
    7,879       (36,500 )
 
           
 
               
Cash flows (used for) provided by financing activities:
               
Proceeds from borrowings on credit facilities short-term
    199,203       251,971  
Payments for borrowings on credit facilities short-term
    (256,196 )     (197,893 )
Repurchase of common stock
    (4,571 )     (128,165 )
Cash received from the exercise of employee stock options
    67       1,461  
Excess tax benefits from stock-based compensation
    79       1,003  
Proceeds on borrowings from term loan
    50,000        
Payments on capitalized leases and other debt obligations
          (171 )
 
           
Net cash (used for) provided by financing activities
    (11,418 )     (71,794 )
 
           
 
               
Effects of exchange rates on cash
    12,001       (25,024 )
 
               
Net increase in cash and cash equivalents
    53,187       92,516  
Cash and cash equivalents, beginning of period
    222,260       129,744  
 
           
Cash and cash equivalents, end of year
  $ 275,447     $ 222,260  
 
           
 
               
Free cash flow:
               
 
               
Net cash provided by operating activities
  $ 44,725     $ 225,834  
Less: Capital expenditures
    (48,677 )     (93,627 )
 
           
Free cash flow
  $ (3,952 )   $ 132,207  
 
           

 

 


 

MONSTER WORLDWIDE, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
                 
    December 31, 2009     December 31, 2008  
Assets:
               
 
               
Cash and cash equivalents
  $ 275,447     $ 222,260  
Marketable securities, current
    9,259       1,425  
Accounts receivable, net
    287,698       376,720  
Marketable securities, non — current
    15,410       90,347  
Property and equipment, net
    143,727       161,282  
Goodwill and intangibles, net
    969,621       946,881  
Other assets
    126,028       117,675  
 
           
Total assets
  $ 1,827,190     $ 1,916,590  
 
           
 
               
Liabilities and Stockholders’ equity:
               
 
               
Accounts payable, accrued expenses and other current liabilities
  $ 196,248     $ 254,425  
Deferred revenue
    305,898       414,312  
Current portion of long-term debt and borrowings under credit facilities
    5,010       54,971  
Long-term income taxes payable
    87,343       119,951  
Long-term debt
    45,000        
Other long-term liabilities
    54,527       25,658  
 
           
Total liabilities
  $ 694,026     $ 869,317  
 
           
 
               
Stockholders’ equity
    1,133,164       1,047,273  
 
               
 
           
Total liabilities and stockholders’ equity
  $ 1,827,190     $ 1,916,590  
 
           

 

 


 

MONSTER WORLDWIDE, INC.
UNAUDITED OPERATING SEGMENT INFORMATION
(in thousands)
                                         
                    Internet              
    Careers-     Careers-     Advertising &     Corporate        
Three Months Ended December 31, 2009   North America     International     Fees     Expenses     Total  
 
                                       
Revenue
  $ 90,932     $ 88,477     $ 33,740             $ 213,149  
Operating income (loss)
    1,866       (1,412 )     4,540     $ (1,624 )     3,370  
OIBDA
    12,988       9,024       7,573       1,206       30,791  
 
                                       
Operating margin
    2.1 %     -1.6 %     13.5 %             1.6 %
OIBDA margin
    14.3 %     10.2 %     22.4 %             14.4 %
                                         
                    Internet              
    Careers-     Careers-     Advertising &     Corporate        
Three Months Ended December 31, 2008   North America     International     Fees     Expenses     Total  
 
                                       
Revenue
  $ 135,135     $ 122,796     $ 32,741             $ 290,672  
Operating income
    34,025       12,938       3,715     $ (7,889 )     42,789  
OIBDA
    44,138       23,833       6,293       (5,810 )     68,454  
 
                                       
Operating margin
    25.2 %     10.5 %     11.3 %             14.7 %
OIBDA margin
    32.7 %     19.4 %     19.2 %             23.6 %
                                         
                    Internet              
    Careers-     Careers-     Advertising &     Corporate        
Twelve Months Ended December 31, 2009   North America     International     Fees     Expenses     Total  
 
                                       
Revenue
  $ 407,118     $ 365,478     $ 132,546             $ 905,142  
Operating income (loss)
    19,670       (6,283 )     18,114     $ (40,312 )     (8,811 )
OIBDA
    64,228       36,313       30,123       (26,298 )     104,366  
 
                                       
Operating margin
    4.8 %     -1.7 %     13.7 %             -1.0 %
OIBDA margin
    15.8 %     9.9 %     22.7 %             11.5 %
                                         
                    Internet              
    Careers-     Careers-     Advertising &     Corporate        
Twelve Months Ended December 31, 2008   North America     International     Fees     Expenses     Total  
 
                                       
Revenue
  $ 638,118     $ 575,182     $ 130,327             $ 1,343,627  
Operating income
    175,255       84,727       11,666     $ (101,693 )     169,955  
OIBDA
    211,892       119,916       22,018       (92,302 )     261,524  
 
                                       
Operating margin
    27.5 %     14.7 %     9.0 %             12.6 %
OIBDA margin
    33.2 %     20.8 %     16.9 %             19.5 %

 

 


 

MONSTER WORLDWIDE, INC.
UNAUDITED NON-GAAP STATEMENTS OF OPERATIONS AND RECONCILIATIONS
(in thousands, except per share amounts)
                                                                 
    Three Months Ended December 31, 2009     Three Months Ended December 31, 2008  
            Proforma                             Proforma                
    As Reported     Adjustments             Non-GAAP     As Reported     Adjustments             Non-GAAP  
 
                                                               
Revenue
  $ 213,149     $             $ 213,149     $ 290,672     $ 2,213  a           $ 292,885  
 
                                                               
Salaries and related
    115,047       (2,866 ) e             112,181       130,435                     130,435  
Office and general
    49,472       6,287  b, f             55,759       61,608       6,682  b             68,290  
Marketing and promotion
    45,260                     45,260       52,684                     52,684  
(Reversal of) Provision for legal settlements, net
                                                   
Restructuring and other special charges
                              3,156       (3,156 ) d              
 
                                                   
Total operating expenses
    209,779       3,421               213,200       247,883       3,526               251,409  
 
                                                   
Operating income
    3,370       (3,421 )             (51 )     42,789       (1,313 )             41,476  
Operating margin
    1.6 %                     0.0 %     14.7 %                     14.2 %
 
                                                               
Interest and other, net
    (7,059 )     6,150  i             (909 )     1,560                     1,560  
 
                                                   
 
                                                               
(Loss) income from continuing operations before income taxes and equity interests
    (3,689 )     2,729               (960 )     44,349       (1,313 )             43,036  
 
                                                               
(Benefit from) provision for Income Taxes
    (2,420 )     2,103  g, h             (317 )     14,880       (441 ) g             14,439  
Losses in equity interests, net
    (844 )                   (844 )     (339 )                   (339 )
 
                                                   
(Loss) Income from continuing operations
  $ (2,113 )   $ 626             $ (1,487 )   $ 29,130     $ (872 )           $ 28,258  
 
                                                   
 
                                                               
Diluted (loss) earnings per share from continuing operations *
  $ (0.02 )   $ 0.01             $ (0.01 )   $ 0.24     $ (0.01 )           $ 0.24  
 
                                                   
 
                                                               
Weighted average shares outstanding:
                                                               
Diluted
    119,575       119,575               119,575       119,380       119,380               119,380  
                                                                 
    Twelve Months Ended December 31, 2009     Twelve Months Ended December 31, 2008  
            Proforma                             Proforma                
    As Reported     Adjustments             Non-GAAP     As Reported     Adjustments             Non-GAAP  
 
                                                               
Revenue
  $ 905,142     $ 2,271  a           $ 907,413     $ 1,343,627       2,213  a           $ 1,345,840  
 
                                                               
Salaries and related
    463,749       (8,773 ) e             454,976       543,268       93  b             543,361  
Office and general
    231,288       (311 ) b, f             230,977       282,699       (4,976 ) b             277,723  
Marketing and promotion
    209,661                     209,661       291,198                     291,198  
(Reversal of) Provision for legal settlements, net
    (6,850 )     6,850  c                   40,100       (40,100 ) c              
Restructuring and other special charges
    16,105       (16,105 ) d                   16,407       (16,407 ) d              
 
                                                   
Total operating expenses
    913,953       (18,339 )             895,614       1,173,672       (61,390 )             1,112,282  
 
                                                   
Operating (loss) income
    (8,811 )     20,610               11,799       169,955       63,603               233,558  
Operating margin
    -1.0 %                     1.3 %     12.6 %                     17.4 %
 
                                                               
Interest and other, net
    (5,828 )     6,150  i             322       17,283                     17,283  
 
                                                   
 
                                                               
(Loss) income from continuing operations before income taxes and equity interests
    (14,639 )     26,760               12,121       187,238       63,603               250,841  
 
                                                               
(Benefit from) provision for Income Taxes
    (37,883 )     41,605  g, h             3,722       64,910       22,288  g             87,198  
Losses in equity interests, net
    (4,317 )                   (4,317 )     (7,839 )                   (7,839 )
 
                                                   
Income from continuing operations
  $ 18,927     $ (14,845 )           $ 4,082     $ 114,489     $ 41,315             $ 155,804  
 
                                                   
 
                                                               
Diluted earnings per share from continuing operations *
  $ 0.16     $ (0.12 )           $ 0.03     $ 0.94     $ 0.34             $ 1.29  
 
                                                   
 
                                                               
Weighted average shares outstanding:
                                                               
Diluted
    121,170       121,170               121,170       121,167       121,167               121,167  
Note Regarding ProForma Adjustments:
The financial information included herein contains certain non-GAAP financial measures. This information is not intended to be used in place of the financial information prepared and presented in accordance with GAAP, nor is it intended to be considered in isolation. We believe that the above presentation of non-GAAP measures provide useful information to management and investors regarding certain core operating and business trends relating to our results of operations, exclusive of certain restructuring related and other special charges.
ProForma adjustments consist of the following:
     
a   Deferred revenue fair value adjustment required under existing purchase accounting rules relating to our acquisition of China HR.
 
b   Costs associated with the ongoing investigation into the Company’s historical stock option granting practices, net of reimbursements as well as costs associated with the security breach incurred in 2008.
 
c   (Reversal of) provision for costs associated with the proposed legal settlements related to the stock option litigation, net of recoveries.
 
d   Restructuring related charges pertaining to the strategic restructuring actions that the Company announced on July 30, 2007. These charges include costs related to the reduction in the Company’s workforce, fixed asset write-offs, costs relating to the consolidation of certain office facilities, contract termination costs, relocation costs and professional fees.
 
e   Severance charges primarily related to the reorganization of the Product & Technology groups on a global basis.
 
f   Charges related to the consolidation of certain facilities primarily resulting from the reorganization of the Product and Technology groups.
 
g   Income tax adjustment is calculated using the effective tax rate of the reported period multiplied by the ProForma adjustment to income from continuing operations before income taxes and equity interests.
 
h   Income tax adjustment includes the reversal of income tax reserves, net.
 
i   Net realized/unrealized loss on available for sale securities.
 
*   Diluted earnings per share may not add in certain periods due to rounding.

 

 


 

MONSTER WORLDWIDE, INC.
UNAUDITED NON-GAAP OPERATING SEGMENT INFORMATION
(in thousands)
                                         
                    Internet              
    Careers -     Careers -     Advertising &     Corporate        
Three Months Ended December 31, 2009   North America     International     Fees     Expenses     Total  
 
                                       
Revenue — GAAP
  $ 90,932     $ 88,477     $ 33,740             $ 213,149  
Proforma Adjustments
                               
 
                               
Revenue — Non GAAP
  $ 90,932     $ 88,477     $ 33,740             $ 213,149  
 
                               
 
                                       
Operating income (loss) — GAAP
  $ 1,866     $ (1,412 )   $ 4,540     $ (1,624 )   $ 3,370  
Proforma Adjustments
    2,360       1,709       453       (7,943 )     (3,421 )
 
                             
Operating income (loss) — Non GAAP
  $ 4,226     $ 297     $ 4,993     $ (9,567 )   $ (51 )
 
                             
 
                                       
Operating margin — GAAP
    2.1 %     -1.6 %     13.5 %             1.6 %
Operating margin — Non GAAP
    4.6 %     0.3 %     14.8 %             0.0 %
                                         
                    Internet              
    Careers -     Careers -     Advertising &     Corporate        
Three Months Ended December 31, 2008   North America     International     Fees     Expenses     Total  
 
                                       
Revenue
  $ 135,135     $ 122,796     $ 32,741             $ 290,672  
Proforma Adjustments
          2,213                     2,213  
 
                               
Revenue — Non GAAP
  $ 135,135     $ 125,009     $ 32,741             $ 292,885  
 
                               
 
                                       
Operating income — GAAP
  $ 34,025     $ 12,938     $ 3,715     $ (7,889 )   $ 42,789  
Proforma Adjustments
    289       4,773       30       (6,405 )     (1,313 )
 
                             
Operating income — Non GAAP
  $ 34,314     $ 17,711     $ 3,745     $ (14,294 )   $ 41,476  
 
                             
 
                                       
Operating margin — GAAP
    25.2 %     10.5 %     11.3 %             14.7 %
Operating margin — Non GAAP
    25.4 %     14.2 %     11.4 %             14.2 %
                                         
                    Internet              
    Careers -     Careers -     Advertising &     Corporate        
Twelve Months Ended December 31, 2009   North America     International     Fees     Expenses     Total  
 
                                       
Revenue — GAAP
  $ 407,118     $ 365,478     $ 132,546             $ 905,142  
Proforma Adjustments
          2,271                     2,271  
 
                               
Revenue — Non GAAP
  $ 407,118     $ 367,749     $ 132,546             $ 907,413  
 
                               
 
                                       
Operating income (loss) — GAAP
  $ 19,670     $ (6,283 )   $ 18,114     $ (40,312 )   $ (8,811 )
Proforma Adjustments
    9,580       16,758       2,484       (8,212 )     20,610  
 
                             
Operating income — Non GAAP
  $ 29,250     $ 10,475     $ 20,598     $ (48,524 )   $ 11,799  
 
                             
 
                                       
Operating margin — GAAP
    4.8 %     -1.7 %     13.7 %             -1.0 %
Operating margin — Non GAAP
    7.2 %     2.8 %     15.5 %             1.3 %
                                         
                    Internet              
    Careers -     Careers -     Advertising &     Corporate        
Twelve Months Ended December 31, 2008   North America     International     Fees     Expenses     Total  
 
                                       
Revenue
  $ 638,118     $ 575,182     $ 130,327             $ 1,343,627  
Proforma Adjustments
          2,213                     2,213  
 
                               
Revenue — Non GAAP
  $ 638,118     $ 577,395     $ 130,327             $ 1,345,840  
 
                               
 
                                       
Operating income — GAAP
  $ 175,255     $ 84,727     $ 11,666     $ (101,693 )   $ 169,955  
Proforma Adjustments
    5,120       11,712       1,441       45,330       63,603  
 
                             
Operating income — Non GAAP
  $ 180,375     $ 96,439     $ 13,107     $ (56,363 )   $ 233,558  
 
                             
 
                                       
Operating margin — GAAP
    27.5 %     14.7 %     9.0 %             12.6 %
Operating margin — Non GAAP
    28.3 %     16.7 %     10.1 %             17.4 %