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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
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 years 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 years 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 Companys 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
Companys overall net cash position increased $16 million during the quarter. Capital expenditures
were $10 million, down from $22 million in last years fourth quarter and $12 million in the prior
quarter of 2009.
2
Monster Worldwides deferred revenue balance at December 31, 2009 was $306 million, compared with
last years 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 Monsters 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 Companys Investor Relations website at http://ir.monster.com.
3
Webcast Information
Fourth quarter 2009 results will be discussed on Monster Worldwides 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 Worldwides quarterly conference call online
through the Investor Relations section of the Companys 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 Monsters 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 Companys 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 Companys core
business operations and in certain instances, for measuring performance under certain of the
Companys incentive compensation plans. These non-GAAP measures may not be comparable to similarly
titled measures reported by other companies.
4
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 Companys 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 Companys
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 Companys 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 Companys 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.
5
MONSTER WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
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)
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)
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)
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 Companys 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 Companys 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)
UNAUDITED NON-GAAP OPERATING SEGMENT INFORMATION
(in thousands)
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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 | % |
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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 | % |
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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 | % |
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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 | % |