Attached files
file | filename |
---|---|
8-K - FORM 8-K - MONSTER WORLDWIDE, INC. | c95504e8vk.htm |
EX-2.1 - EXHIBIT 2.1 - MONSTER WORLDWIDE, INC. | c95504exv2w1.htm |
EX-99.2 - EXHIBIT 99.2 - MONSTER WORLDWIDE, INC. | c95504exv99w2.htm |
EX-99.1 - EXHIBIT 99.1 - MONSTER WORLDWIDE, INC. | c95504exv99w1.htm |
Exhibit 99.3
FINANCIAL SUPPLEMENT
December 31, 2009
Monster Worldwide, Inc. (together with its consolidated subsidiaries, the Company, Monster,
we, our or us) provides this supplement to assist investors in evaluating the Companys
financial and operating metrics. We suggest that the notes to this supplement be read in
conjunction with the financial tables. The financial information included in this supplement
contains certain non-GAAP financial measures. These measures should be considered in addition to
results prepared in accordance with generally accepted accounting principles (GAAP), but are not
a substitute for, or superior to, GAAP results. The non-GAAP measures included in this supplement
have been reconciled to the most comparable GAAP measure. The Company intends to update the
financial supplement on a quarterly basis.
Notes to Financial Supplement
Presentation
Provision for (Reversal of) Legal Settlements, net
In the second quarter of 2008, the Company recorded a $40.1 million provision for legal
settlements, net, relating to estimated settlements, costs and expenses arising out of the legal
actions regarding the Companys historical stock option granting practices.
The provision for legal settlements, net in the second quarter of 2008 included approximately $25.1
million for the settlement of the securities class action regarding the Companys historical stock
option granting practices. In July 2008, the Company agreed to settle the securities class action,
subject to court approval. Court approval was received in October 2008. Under the terms of the
settlement, the defendants paid $47.5 million to the class, of which the Companys cost was
approximately $25.1 million, net of its insurance recovery and contribution from another defendant.
Also recorded in the provision for legal settlements, net, in the second quarter of 2008 was
approximately $15.0 million for estimated expenses relating to the other outstanding litigation in
connection with the Companys historical stock option grant practices.
In May 2009, the Company agreed, without admitting or denying wrongdoing, to pay a $2.5 million
penalty to the United States Securities and Exchange Commission (the SEC) to settle claims
arising out of the SECs inquiry into the Companys stock option granting practices.
In September 2009, the Company entered into a memorandum of understanding with the plaintiffs in
the ERISA class action, and in November 2009, the Company entered into a settlement agreement with
the plaintiffs in the ERISA class action. The settlement agreement provides for a payment of $4.3
million in full satisfaction of the claims asserted in the ERISA Class Action, a substantial
majority of which will be paid by insurance and contribution from another defendant. The
effectiveness of the settlement agreement is subject to Court approval and certification of the
proposed class. On December 3, 2009, the Court granted preliminary approval of the proposed
settlement, which included certification of the class members. Notice to the class has been sent
and a final hearing on the merits of the proposed settlement is expected to occur in the near
future.
Upon the conclusion of the settlement of the ERISA Class Action, all of the actions seeking
recoveries from the Company as an outgrowth of the Companys historical stock option grant
practices will have been settled. As a result, in the quarterly period ended September 30, 2009,
the Company reversed a previously recorded accrual of $6.9 million relating to these matters.
Auction Rate Securities
In November 2009, the Company entered into a settlement agreement related to its litigation against
RBC Capital Markets Corporation (RBC) with respect to the auction rate securities (ARS)
purchased from RBC. Among other terms, the settlement agreement provided for RBC to immediately
repurchase ARS at a certain discount to their par value. Additionally, the Company shall receive
certain additional monies from RBC if, within a certain time period of the date of the execution of
the settlement agreement, any of the ARS still held by RBC are redeemed or refinanced by its issuer
for sums higher than the amounts RBC paid the Company to repurchase the ARS. As part of the
settlement
agreement, the Company dismissed its lawsuit against RBC and released claims related to RBCs sale
of the ARS to the Company. As a result of the settlement with RBC, the Company no longer
classifies losses on its remaining auction rate securities as temporary and, accordingly, all
losses are reflected in the consolidated statement of operations.
2
As such,
the Company recorded a total charge of $6.1 million in the fourth quarter of 2009, which
was reflected in interest and other, net in the consolidated statement of operations for the three
and twelve months ended December 31, 2009, relating to the settlement with RBC as well as
unrealized losses on the auction rate securities still owned by the Company.
Professional Fees
For the three and twelve months ended December 31, 2009, we recorded net benefits of $8.0 million
and $10.1 million, respectively, primarily resulting from payments from former executives of the
Company relating to our historical stock option granting practices. For the three and twelve months
ended December 31, 2008, we recorded a net benefit of $6.7 million and a net charge of $4.4
million, respectively, of professional fees as a direct result of payments from former executives
of the Company and payments for ongoing matters relating to our historical stock option grant
practices. These costs primarily relate to legal fees and are a component of office and general
in our consolidated statement of operations. In addition, we have incurred costs related to
litigation, an informal investigation by the SEC and an investigation by the United States Attorney
for the Southern District of New York.
As a consequence of the Companys entry into the settlement agreement with respect to the ERISA
class action and settlement of the Companys claims against a former member of senior management,
we do not expect to continue to incur significant professional fees or legal fees paid on behalf of
former employees and former members of senior management related to or in connection with matters
relating to our historical stock option grant practices.
Restructuring Actions
On July 30, 2007, we announced a strategic restructuring plan intended to position the Company for
sustainable long-term growth in the rapidly evolving global online recruitment and advertising
industry.
The restructuring plan was originally designed to reduce the Companys workforce by approximately
800 associates. Subsequent to the announcement of this plan, the Company made a strategic decision
to in-source customer service and identified 100 associates who will be staying with the Company.
Through June 30, 2009, when all the initiatives relating to the 2007 restructuring plan were
complete, the Company had notified or terminated approximately 700 associates and approximately 140
associates had voluntarily left the Company. The plan also included fixed asset write-offs,
accelerated depreciation for assets to be phased out, costs relating to the consolidation of
certain office facilities, contract termination costs, relocation costs and professional fees. The
restructuring plan arose out of a review commencing in the second quarter of 2007 by our current
executive management team of our cost structure and organizational structure. The restructuring was
intended to realign the structure to permit investment in key areas that will improve the customer
experience and foster revenue growth and long-term operating margin expansion. Since the inception
of the 2007 restructuring program through the completion of the program in the second quarter of
2009, the Company has incurred $49.1 million of restructuring expenses.
For the three months ended December 31, 2009 and 2008, we recorded $0 and $3.2 million of
restructuring costs, respectively, primarily related to severance costs in 2008. For the years
ended December 31, 2009 and 2008, we recorded $16.1 million and $16.4 million of restructuring
costs, respectively, primarily related to severance, fixed asset write-offs and office
consolidations.
3
Severance and Facility Charges
For the three months ended December 31, 2009, the Company incurred charges of $2.9 million for
severance and $1.7 million for costs relating to exited facilities. For the year ended December 31,
2009, the Company incurred charges of $8.8 million for severance and $3.5 million for costs
relating to exited facilities. These charges primarily relate to certain organizational changes
within the Companys product and technology group designed to enable the Company to shift or add
talent and skills to support the Companys innovation strategy and other targeted headcount
reductions. The organizational changes included establishing a new Technology Center of Excellence
and Innovation located in Cambridge, Massachusetts, which was opened in the third quarter of 2009.
As a result of these and other targeted organizational changes, the Company incurred severance
costs related to the elimination of certain positions and charges related to the exiting of certain
facilities on a global basis.
Income Tax Reversal
In the three and twelve months ended December 31, 2009, the Company recorded net reversals of $1.2
million and $32.9 million, respectively, of accrued tax and related interest and penalties. These
reversals in 2009 primarily related to the expiration of statutes of limitations on uncertain tax
positions.
Deferred revenue related to acquisitions
During the fourth quarter of 2008, we completed the acquisition of ChinaHR. In accordance with
existing purchase accounting rules, we are required to write down a portion of ChinaHRs deferred
revenue to its fair value. Consequently, in post acquisition periods, we do not recognize the full
amount of this deferred revenue. When measuring the performance of our business, however, we add
back the revenue resulting from this fair value adjustment as we believe that the inclusion of this
revenue provides useful information to our management, as well as to investors. For the three and
twelve months ended December 31, 2009, the fair value adjustment to ChinaHRs deferred revenue was
$0 million and $2.3 million, respectively. For the three and twelve months ended December 31,
2008, the fair value adjustment to ChinaHRs deferred revenue was $2.2 million.
Wind-down of Internet Advertising & Fees Tickle Business
In May 2008, we announced our intentions to wind-down the operations of Tickle, a business included
in the Internet Advertising & Fees segment. As a result of this action, we have reclassified our
quarterly financial information to reflect the wind-down as discontinued operations in all periods
presented. The financial results from continuing operations, presented herein, reflect the results
of the remaining and ongoing portion of our business.
Security Breach
In August 2007, we announced a security breach related to unauthorized access to our resume
database. We took remediation measures, including the procurement of the capability to assist any
potentially affected customers. For the three months ended March 31, 2008, we recorded $0.5 million
related to the breach, which was recorded as a component of office and general in the consolidated
statement of operations.
Reclassifications
Certain reclassifications of prior year amounts have been made for consistent presentation.
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, 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.
4
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 product and technology global
reorganization; the fair value adjustment to deferred revenue in connection with the acquisition of
ChinaHR; realized and unrealized losses on marketable 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.
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 are 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.
5
Selected financial ratios
We have included selected financial ratios in this financial supplement in order to assist
investors to further evaluate our business. Our definitions and calculations are as follows:
Annualized return on equity
Annualized return on equity measures our effectiveness and ability to generate future profitability
on the earnings that we retain. In addition, the ratio is a strong indicator of how well we
utilize shareholders investments in our business. We calculate annualized return on equity as
follows:
Annualized net income / Average stockholders equity
Book value per share
Book value per share is a market value indicator that we utilize when analyzing our stockholders
equity. We calculate book value per share as follows:
Stockholders equity / Total shares outstanding
Cash and marketable securities per share
We calculate cash and marketable securities per share as follows:
(Cash and cash equivalents + Current marketable securities + Non-current marketable securities) /
Total shares outstanding
6
Monster Worldwide, Inc.
Statements of Operations
(unaudited, in thousands, except per share amounts)
Statements of Operations
(unaudited, in thousands, except per share amounts)
Trended Quarterly Data | Full Year Data | |||||||||||||||||||||||||||||||||||||||||||
Summary P&L Information | Q4 2007 | Q1 2008 | Q2 2008 | Q3 2008 | Q4 2008 | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | 12M 2008 | 12M 2009 | |||||||||||||||||||||||||||||||||
Monster Careers |
$ | 316,877 | $ | 336,810 | $ | 320,953 | $ | 297,606 | $ | 257,931 | $ | 222,849 | $ | 190,397 | $ | 179,941 | $ | 179,409 | $ | 1,213,300 | $ | 772,596 | ||||||||||||||||||||||
Internet Advertising & Fees |
30,970 | 29,662 | 33,341 | 34,583 | 32,741 | 31,554 | 32,660 | 34,592 | 33,740 | 130,327 | 132,546 | |||||||||||||||||||||||||||||||||
Revenue |
347,847 | 366,472 | 354,294 | 332,189 | 290,672 | 254,403 | 223,057 | 214,533 | 213,149 | 1,343,627 | 905,142 | |||||||||||||||||||||||||||||||||
Salary and related |
127,666 | 135,115 | 127,346 | 128,904 | 123,211 | 112,037 | 103,564 | 102,752 | 105,475 | 514,576 | 423,828 | |||||||||||||||||||||||||||||||||
Office and general |
56,708 | 61,710 | 61,754 | 57,124 | 44,091 | 45,793 | 42,917 | 42,422 | 31,623 | 224,679 | 162,755 | |||||||||||||||||||||||||||||||||
Marketing and promotion |
76,818 | 111,854 | 68,976 | 57,684 | 52,684 | 73,691 | 44,953 | 45,757 | 45,260 | 291,198 | 209,661 | |||||||||||||||||||||||||||||||||
Provision for (Reversal of) legal settlements, net |
| | 40,100 | | | | | (6,850 | ) | | 40,100 | (6,850 | ) | |||||||||||||||||||||||||||||||
Restructuring and other special charges |
5,442 | 6,927 | 2,732 | 3,592 | 3,156 | 11,008 | 5,097 | | | 16,407 | 16,105 | |||||||||||||||||||||||||||||||||
Depreciation expense |
10,589 | 10,803 | 12,330 | 13,336 | 14,761 | 13,769 | 14,479 | 15,230 | 15,639 | 51,230 | 59,117 | |||||||||||||||||||||||||||||||||
Amortization of restricted stock and RSU Plan |
3,623 | 5,206 | 8,351 | 7,437 | 7,046 | 10,149 | 9,816 | 9,924 | 9,417 | 28,040 | 39,306 | |||||||||||||||||||||||||||||||||
Non-cash stock option expense |
105 | 127 | 182 | 165 | 178 | 199 | 104 | 157 | 155 | 652 | 615 | |||||||||||||||||||||||||||||||||
Amortization of intangibles |
1,457 | 1,386 | 1,274 | 1,374 | 2,756 | 2,551 | 2,466 | 2,189 | 2,210 | 6,790 | 9,416 | |||||||||||||||||||||||||||||||||
Operating expenses |
282,408 | 333,128 | 323,045 | 269,616 | 247,883 | 269,197 | 223,396 | 211,581 | 209,779 | 1,173,672 | 913,953 | |||||||||||||||||||||||||||||||||
Operating income (loss) |
65,439 | 33,344 | 31,249 | 62,573 | 42,789 | (14,794 | ) | (339 | ) | 2,952 | 3,370 | 169,955 | (8,811 | ) | ||||||||||||||||||||||||||||||
Interest and other, net |
6,799 | 7,383 | 3,057 | 5,283 | 1,560 | 1,203 | 76 | (48 | ) | (7,059 | ) | 17,283 | (5,828 | ) | ||||||||||||||||||||||||||||||
Income (loss) from cont. operations, pre-tax |
72,238 | 40,727 | 34,306 | 67,856 | 44,349 | (13,591 | ) | (263 | ) | 2,904 | (3,689 | ) | 187,238 | (14,639 | ) | |||||||||||||||||||||||||||||
Provision for (benefit from) Income taxes |
25,310 | 15,143 | 12,153 | 22,734 | 14,880 | (4,489 | ) | (83 | ) | (30,891 | ) | (2,420 | ) | 64,910 | (37,883 | ) | ||||||||||||||||||||||||||||
Losses in equity interests, net |
(838 | ) | (1,822 | ) | (3,592 | ) | (2,086 | ) | (339 | ) | (1,239 | ) | (1,190 | ) | (1,044 | ) | (844 | ) | (7,839 | ) | (4,317 | ) | ||||||||||||||||||||||
Income (loss) from continuing operations |
46,090 | 23,762 | 18,561 | 43,036 | 29,130 | (10,341 | ) | (1,370 | ) | 32,751 | (2,113 | ) | 114,489 | 18,927 | ||||||||||||||||||||||||||||||
(Loss) income from disc. operations, net of tax(1) |
(1,090 | ) | (1,171 | ) | 12,269 | (258 | ) | (536 | ) | | | | | 10,304 | | |||||||||||||||||||||||||||||
Net income (loss) |
$ | 45,000 | $ | 22,591 | $ | 30,830 | $ | 42,778 | $ | 28,594 | $ | (10,341 | ) | $ | (1,370 | ) | $ | 32,751 | $ | (2,113 | ) | $ | 124,793 | $ | 18,927 | |||||||||||||||||||
Basic earnings (loss) per share: |
||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations |
$ | 0.37 | $ | 0.19 | $ | 0.15 | $ | 0.36 | $ | 0.25 | $ | (0.09 | ) | $ | (0.01 | ) | $ | 0.27 | $ | (0.02 | ) | $ | 0.95 | $ | 0.16 | |||||||||||||||||||
Net income (loss) |
$ | 0.36 | $ | 0.18 | $ | 0.26 | $ | 0.36 | $ | 0.24 | $ | (0.09 | ) | $ | (0.01 | ) | $ | 0.27 | $ | (0.02 | ) | $ | 1.04 | $ | 0.16 | |||||||||||||||||||
Diluted earnings (loss) per share: |
||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations |
$ | 0.36 | $ | 0.19 | $ | 0.15 | $ | 0.36 | $ | 0.24 | $ | (0.09 | ) | $ | (0.01 | ) | $ | 0.27 | $ | (0.02 | ) | $ | 0.94 | $ | 0.16 | |||||||||||||||||||
Net income (loss) |
$ | 0.36 | $ | 0.18 | $ | 0.25 | $ | 0.35 | $ | 0.24 | $ | (0.09 | ) | $ | (0.01 | ) | $ | 0.27 | $ | (0.02 | ) | $ | 1.03 | $ | 0.16 | |||||||||||||||||||
Weighted avg. shares outstanding: |
||||||||||||||||||||||||||||||||||||||||||||
Basic shares |
125,504 | 122,711 | 120,885 | 120,057 | 118,601 | 118,855 | 119,274 | 119,473 | 119,575 | 120,557 | 119,359 | |||||||||||||||||||||||||||||||||
Diluted shares |
126,704 | 123,332 | 121,541 | 120,722 | 119,380 | 118,855 | 119,274 | 121,676 | 119,575 | 121,167 | 121,170 | |||||||||||||||||||||||||||||||||
Global employees (ones) |
5,112 | 5,164 | 5,396 | 5,669 | 6,961 | 6,295 | 5,999 | 5,779 | 5,687 | 6,961 | 5,687 | |||||||||||||||||||||||||||||||||
Annualized revenue per average employee |
$ | 272.1 | $ | 285.3 | $ | 268.4 | $ | 240.2 | $ | 184.1 | $ | 153.5 | $ | 145.1 | $ | 145.7 | $ | 148.7 | $ | 231.8 | $ | 152.4 |
(1) | Gain from discontinued operations, net of tax in the second quarter of 2008 includes tax benefits of $29.4 million and long-lived asset write-offs of $13.1 million related to the wind-down of the Tickle business included in our Internet Advertising & Fees business segment. |
Monster Worldwide, Inc.
Trailing Twelve Months Statistics Statements of Operations
(unaudited, in thousands, except per share amounts)
Trailing Twelve Months Statistics Statements of Operations
(unaudited, in thousands, except per share amounts)
Summary P&L Information | Q4 2007 | Q1 2008 | Q2 2008 | Q3 2008 | Q4 2008 | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | |||||||||||||||||||||||||||
Monster Careers |
$ | 1,195,422 | $ | 1,242,009 | $ | 1,271,636 | $ | 1,272,246 | $ | 1,213,300 | $ | 1,099,339 | $ | 968,783 | $ | 851,118 | $ | 772,596 | ||||||||||||||||||
Internet Advertising & Fees |
128,382 | 126,437 | 127,119 | 128,556 | 130,327 | 132,219 | 131,538 | 131,547 | 132,546 | |||||||||||||||||||||||||||
Revenue |
1,323,804 | 1,368,446 | 1,398,755 | 1,400,802 | 1,343,627 | 1,231,558 | 1,100,321 | 982,665 | 905,142 | |||||||||||||||||||||||||||
Salary and related |
496,472 | 514,585 | 514,092 | 519,031 | 514,576 | 491,498 | 467,716 | 441,564 | 423,828 | |||||||||||||||||||||||||||
Office and general |
224,935 | 227,895 | 237,793 | 237,296 | 224,679 | 208,762 | 189,925 | 175,223 | 162,755 | |||||||||||||||||||||||||||
Marketing and promotion |
294,479 | 333,824 | 329,232 | 315,332 | 291,198 | 253,035 | 229,012 | 217,085 | 209,661 | |||||||||||||||||||||||||||
Provision for (Reversal of) legal settlements, net |
| | 40,100 | 40,100 | 40,100 | 40,100 | | (6,850 | ) | (6,850 | ) | |||||||||||||||||||||||||
Restructuring and other special charges |
16,597 | 23,524 | 26,256 | 18,693 | 16,407 | 20,488 | 22,853 | 19,261 | 16,105 | |||||||||||||||||||||||||||
Depreciation expense |
38,207 | 41,150 | 44,130 | 47,058 | 51,230 | 54,196 | 56,345 | 58,239 | 59,117 | |||||||||||||||||||||||||||
Amortization of restricted stock and RSU Plan |
27,739 | 28,769 | 20,051 | 24,617 | 28,040 | 32,983 | 34,448 | 36,935 | 39,306 | |||||||||||||||||||||||||||
Non-cash stock option expense |
442 | 383 | 518 | 579 | 652 | 724 | 646 | 638 | 615 | |||||||||||||||||||||||||||
Amortization of intangibles |
5,701 | 5,693 | 5,554 | 5,491 | 6,790 | 7,955 | 9,147 | 9,962 | 9,416 | |||||||||||||||||||||||||||
Operating expenses |
1,104,572 | 1,175,823 | 1,217,726 | 1,208,197 | 1,173,672 | 1,109,741 | 1,010,092 | 952,057 | 913,953 | |||||||||||||||||||||||||||
Operating income (loss) |
219,232 | 192,623 | 181,029 | 192,605 | 169,955 | 121,817 | 90,229 | 30,608 | (8,811 | ) | ||||||||||||||||||||||||||
Interest and other, net |
25,622 | 27,592 | 23,746 | 22,522 | 17,283 | 11,103 | 8,122 | 2,791 | (5,828 | ) | ||||||||||||||||||||||||||
Income (loss) from continuing operations, pre-tax |
244,854 | 220,215 | 204,775 | 215,127 | 187,238 | 132,920 | 98,351 | 33,399 | (14,639 | ) | ||||||||||||||||||||||||||
Provision for (benefit from) Income taxes |
86,461 | 78,514 | 73,080 | 75,340 | 64,910 | 45,278 | 33,042 | (20,583 | ) | (37,883 | ) | |||||||||||||||||||||||||
Losses in equity interests, net |
(8,298 | ) | (8,700 | ) | (9,326 | ) | (8,338 | ) | (7,839 | ) | (7,256 | ) | (4,854 | ) | (3,812 | ) | (4,317 | ) | ||||||||||||||||||
Income from continuing operations |
150,095 | 133,001 | 122,369 | 131,449 | 114,489 | 80,386 | 60,455 | 50,170 | 18,927 | |||||||||||||||||||||||||||
Income (loss) from disc. operations, net of tax |
(3,696 | ) | (3,493 | ) | 9,353 | 9,750 | 10,304 | 11,475 | (794 | ) | (536 | ) | | |||||||||||||||||||||||
Net income |
$ | 146,399 | $ | 129,508 | $ | 131,722 | $ | 141,199 | $ | 124,793 | $ | 91,861 | $ | 59,661 | $ | 49,634 | $ | 18,927 | ||||||||||||||||||
Basic earnings per share: |
||||||||||||||||||||||||||||||||||||
Income from continuing operations |
$ | 1.17 | $ | 1.05 | $ | 0.98 | $ | 1.07 | $ | 0.95 | $ | 0.67 | $ | 0.51 | $ | 0.42 | $ | 0.16 | ||||||||||||||||||
Net income |
$ | 1.14 | $ | 1.02 | $ | 1.06 | $ | 1.15 | $ | 1.04 | $ | 0.77 | $ | 0.50 | $ | 0.42 | $ | 0.16 | ||||||||||||||||||
Diluted earnings per share: |
||||||||||||||||||||||||||||||||||||
Income from continuing operations |
$ | 1.15 | $ | 1.04 | $ | 0.97 | $ | 1.07 | $ | 0.94 | $ | 0.67 | $ | 0.51 | $ | 0.42 | $ | 0.16 | ||||||||||||||||||
Net income |
$ | 1.12 | $ | 1.01 | $ | 1.05 | $ | 1.15 | $ | 1.03 | $ | 0.76 | $ | 0.50 | $ | 0.41 | $ | 0.16 | ||||||||||||||||||
Weighted avg. shares outstanding: |
||||||||||||||||||||||||||||||||||||
Basic shares |
128,785 | 127,064 | 124,650 | 122,289 | 120,557 | 119,600 | 119,197 | 119,051 | 119,294 | |||||||||||||||||||||||||||
Diluted shares |
130,755 | 128,479 | 125,584 | 123,075 | 121,167 | 120,125 | 119,558 | 119,796 | 119,845 |
Monster Worldwide, Inc.
Statements of Cash Flows
(unaudited, in thousands, except per share amounts)
Statements of Cash Flows
(unaudited, in thousands, except per share amounts)
Trended Quarterly Data | Full Year Data | |||||||||||||||||||||||||||||||||||||||||||
Q4 2007 | Q1 2008 | Q2 2008 | Q3 2008 | Q4 2008 | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | 12M 2008 | 12M 2009 | ||||||||||||||||||||||||||||||||||
Cash flows provided by (used for) operating activities: |
||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) |
$ | 45,000 | $ | 22,591 | $ | 30,830 | $ | 42,778 | $ | 28,594 | $ | (10,341 | ) | $ | (1,370 | ) | $ | 32,751 | $ | (2,113 | ) | $ | 124,793 | $ | 18,927 | |||||||||||||||||||
Adjustments to reconcile net income (loss) to cash provided by operating activities: |
||||||||||||||||||||||||||||||||||||||||||||
Loss (income) from discontinued operations, net of tax |
1,090 | 1,171 | (12,269 | ) | 258 | 536 | | | | | (10,304 | ) | | |||||||||||||||||||||||||||||||
Depreciation and amortization |
12,046 | 12,189 | 13,604 | 14,710 | 17,517 | 16,320 | 16,945 | 17,419 | 17,849 | 58,020 | 68,533 | |||||||||||||||||||||||||||||||||
Provision for (Reversal of) legal settlements, net |
| | 40,100 | | | | | (6,850 | ) | | 40,100 | (6,850 | ) | |||||||||||||||||||||||||||||||
Receipts and (payments) for legal settlements, net |
| | | 5,700 | (35,587 | ) | | | | | (29,887 | ) | | |||||||||||||||||||||||||||||||
Provision for doubtful accounts |
4,453 | 3,564 | 3,207 | 4,403 | 5,057 | 4,072 | 2,812 | 1,682 | 1,588 | 16,231 | 10,154 | |||||||||||||||||||||||||||||||||
Non-cash compensation |
3,728 | 6,495 | 8,533 | 7,602 | 7,223 | 10,348 | 9,920 | 10,081 | 9,572 | 29,853 | 39,921 | |||||||||||||||||||||||||||||||||
Deferred income taxes |
(2,762 | ) | (7,319 | ) | (12,263 | ) | 12,440 | 14,572 | (2,488 | ) | (3,933 | ) | 12,160 | (4,550 | ) | 7,430 | 1,189 | |||||||||||||||||||||||||||
Non-cash restructuring write-offs, accelerated amortization, and other |
3 | 1,649 | 436 | 924 | 924 | 3,690 | 1,051 | 3 | 4,216 | 3,933 | 8,960 | |||||||||||||||||||||||||||||||||
Loss in equity interests |
838 | 1,822 | 3,592 | 2,086 | 339 | 1,239 | 1,190 | 1,044 | 844 | 7,839 | 4,317 | |||||||||||||||||||||||||||||||||
Changes in assets and liabilities, net of acquisitions: |
||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable |
(101,843 | ) | 37,848 | 44,812 | 49,231 | (19,371 | ) | 72,347 | 47,892 | 7,284 | (47,061 | ) | 112,520 | 80,462 | ||||||||||||||||||||||||||||||
Prepaid and other |
(12,766 | ) | 1,025 | 18,073 | 2,522 | 1,548 | 3,246 | 13,615 | (16,005 | ) | (3,525 | ) | 23,168 | (2,669 | ) | |||||||||||||||||||||||||||||
Deferred revenue |
89,650 | (2,458 | ) | (51,465 | ) | (58,644 | ) | (5,732 | ) | (63,383 | ) | (61,153 | ) | (28,152 | ) | 41,054 | (118,299 | ) | (111,634 | ) | ||||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities |
27,091 | (289 | ) | (13,308 | ) | 8,673 | (27,790 | ) | (21,237 | ) | (40,657 | ) | (19,574 | ) | 14,883 | (32,714 | ) | (66,585 | ) | |||||||||||||||||||||||||
Net cash (used for) provided by operating activities of discontinued operations |
(2,344 | ) | (560 | ) | (2,569 | ) | (962 | ) | (2,758 | ) | (77 | ) | 77 | | | (6,849 | ) | | ||||||||||||||||||||||||||
Total adjustments |
19,184 | 55,137 | 40,483 | 48,943 | (43,522 | ) | 24,077 | (12,241 | ) | (20,908 | ) | 34,870 | 101,041 | 25,798 | ||||||||||||||||||||||||||||||
Net cash provided by (used for) operating activities |
64,184 | 77,728 | 71,313 | 91,721 | (14,928 | ) | 13,736 | (13,611 | ) | 11,843 | 32,757 | 225,834 | 44,725 | |||||||||||||||||||||||||||||||
Cash flows provided by (used for) investing activities: |
||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures |
(16,240 | ) | (20,559 | ) | (29,654 | ) | (21,011 | ) | (22,403 | ) | (14,922 | ) | (11,457 | ) | (12,285 | ) | (10,013 | ) | (93,627 | ) | (48,677 | ) | ||||||||||||||||||||||
Purchase of marketable securities |
(415,025 | ) | (149,249 | ) | (7,633 | ) | (25,265 | ) | (1,785 | ) | (992 | ) | (6,484 | ) | | (1,109 | ) | (183,932 | ) | (8,585 | ) | |||||||||||||||||||||||
Sale and maturities of marketable securities |
478,068 | 414,453 | 21,852 | 66,000 | 36,981 | 1,425 | 1,892 | | 67,660 | 539,286 | 70,977 | |||||||||||||||||||||||||||||||||
Payments for acquisitions and intangible assets, net of cash acquired |
(610 | ) | (61,567 | ) | | (64,628 | ) | (166,641 | ) | | | (300 | ) | | (292,836 | ) | (300 | ) | ||||||||||||||||||||||||||
Dividends received from unconsolidated investee |
| | 1,011 | | | | 763 | | | 1,011 | 763 | |||||||||||||||||||||||||||||||||
Cash funded to equity investee |
| (5,000 | ) | | | (1,402 | ) | (1,428 | ) | (1,886 | ) | (1,639 | ) | (1,346 | ) | (6,402 | ) | (6,299 | ) | |||||||||||||||||||||||||
Net cash used for investing activities of discontinued operations |
| | | | | | | | | | | |||||||||||||||||||||||||||||||||
Net cash provided by (used for) investing activities |
46,193 | 178,078 | (14,424 | ) | (44,904 | ) | (155,250 | ) | (15,917 | ) | (17,172 | ) | (14,224 | ) | 55,192 | (36,500 | ) | 7,879 | ||||||||||||||||||||||||||
Cash flows (used for) provided by financing activities: |
||||||||||||||||||||||||||||||||||||||||||||
Proceeds from borrowings on credit facilities short-term |
| | | 247,000 | 4,971 | 199,203 | | | | 251,971 | 199,203 | |||||||||||||||||||||||||||||||||
Payments on borrowings on credit facilities short-term |
| | | | (197,893 | ) | | (157,173 | ) | (99,023 | ) | | (197,893 | ) | (256,196 | ) | ||||||||||||||||||||||||||||
Repurchase of common stock |
(97,761 | ) | (79,469 | ) | (6,858 | ) | (41,806 | ) | (32 | ) | (1,907 | ) | (528 | ) | (1,869 | ) | (267 | ) | (128,165 | ) | (4,571 | ) | ||||||||||||||||||||||
Net borrowings (payments) under capital lease obligations and other debt |
(42 | ) | (80 | ) | (67 | ) | (9 | ) | (15 | ) | (5 | ) | (1 | ) | 50,006 | | (171 | ) | 50,000 | |||||||||||||||||||||||||
Payments on acquisition debt |
(1,500 | ) | | | | | | | | | | | ||||||||||||||||||||||||||||||||
Cash received from the exercise of employee stock options |
838 | 418 | 628 | 110 | 305 | 9 | | 46 | 12 | 1,461 | 67 | |||||||||||||||||||||||||||||||||
Excess tax benefits from (provisions for) stock-based compensation |
(155 | ) | 61 | 59 | 861 | 22 | 4 | | 8 | 67 | 1,003 | 79 | ||||||||||||||||||||||||||||||||
Net cash (used for) provided by financing activities |
(98,620 | ) | (79,070 | ) | (6,238 | ) | 206,156 | (192,642 | ) | 197,304 | (157,702 | ) | (50,832 | ) | (188 | ) | (71,794 | ) | (11,418 | ) | ||||||||||||||||||||||||
Effects of exchange rates on cash |
772 | 10,256 | (1,933 | ) | (13,303 | ) | (20,044 | ) | (6,327 | ) | 13,681 | 4,438 | 209 | (25,024 | ) | 12,001 | ||||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents |
12,529 | 186,992 | 48,718 | 239,670 | (382,864 | ) | 188,796 | (174,804 | ) | (48,775 | ) | 87,970 | 92,516 | 53,187 | ||||||||||||||||||||||||||||||
Cash and cash equivalents, beginning of period |
117,215 | 129,744 | 316,736 | 365,454 | 605,124 | 222,260 | 411,056 | 236,252 | 187,477 | 129,744 | 222,260 | |||||||||||||||||||||||||||||||||
Cash and cash equivalents, end of period |
$ | 129,744 | $ | 316,736 | $ | 365,454 | $ | 605,124 | $ | 222,260 | $ | 411,056 | $ | 236,252 | $ | 187,477 | $ | 275,447 | $ | 222,260 | $ | 275,447 | ||||||||||||||||||||||
Non-GAAP Free cash flow (1): |
||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used for) operating activities |
$ | 64,184 | $ | 77,728 | $ | 71,313 | $ | 91,721 | $ | (14,928 | ) | $ | 13,736 | $ | (13,611 | ) | $ | 11,843 | $ | 32,757 | $ | 225,834 | $ | 44,725 | ||||||||||||||||||||
Less: Capital expenditures |
(16,240 | ) | (20,559 | ) | (29,654 | ) | (21,011 | ) | (22,403 | ) | (14,922 | ) | (11,457 | ) | (12,285 | ) | (10,013 | ) | (93,627 | ) | (48,677 | ) | ||||||||||||||||||||||
Free cash flow |
$ | 47,944 | $ | 57,169 | $ | 41,659 | $ | 70,710 | $ | (37,331 | ) | $ | (1,186 | ) | $ | (25,068 | ) | $ | (442 | ) | $ | 22,744 | $ | 132,207 | $ | (3,952 | ) | |||||||||||||||||
(1) | See notes to financial supplement for further explanation of non-GAAP measures. |
Monster Worldwide, Inc.
Consolidated Condensed Balance Sheets
(unaudited, in thousands, except selected financial ratios)
Consolidated Condensed Balance Sheets
(unaudited, in thousands, except selected financial ratios)
Trended Quarterly Data | ||||||||||||||||||||||||||||||||||||
Q4 2007 | Q1 2008 | Q2 2008 | Q3 2008 | Q4 2008 | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | ||||||||||||||||||||||||||||
ASSETS |
||||||||||||||||||||||||||||||||||||
Current assets: |
||||||||||||||||||||||||||||||||||||
Cash and cash equivalents |
$ | 129,744 | $ | 316,736 | $ | 365,454 | $ | 605,124 | $ | 222,260 | $ | 411,056 | $ | 236,252 | $ | 187,477 | $ | 275,447 | ||||||||||||||||||
Marketable securities, current |
448,703 | 79,236 | 68,579 | 33,823 | 1,425 | 992 | 14,533 | 20,482 | 9,259 | |||||||||||||||||||||||||||
Accounts Receivable, net |
499,854 | 458,447 | 410,427 | 358,214 | 376,720 | 294,449 | 249,004 | 243,033 | 287,698 | |||||||||||||||||||||||||||
Prepaid and other |
106,664 | 97,929 | 121,093 | 111,754 | 82,416 | 82,710 | 73,866 | 87,058 | 73,089 | |||||||||||||||||||||||||||
Total current assets |
1,184,965 | 952,348 | 965,553 | 1,108,915 | 682,821 | 789,207 | 573,655 | 538,050 | 645,493 | |||||||||||||||||||||||||||
Marketable securities, non-current |
| 102,716 | 99,330 | 93,728 | 90,347 | 89,196 | 81,272 | 75,953 | 15,410 | |||||||||||||||||||||||||||
Property and equipment, net |
123,397 | 138,182 | 149,048 | 152,352 | 161,282 | 154,559 | 153,942 | 150,963 | 143,727 | |||||||||||||||||||||||||||
Goodwill |
615,334 | 702,598 | 690,161 | 707,164 | 894,546 | 886,970 | 897,561 | 930,231 | 925,758 | |||||||||||||||||||||||||||
Intangibles, net |
35,351 | 34,308 | 32,696 | 36,694 | 52,335 | 49,533 | 47,420 | 45,893 | 43,863 | |||||||||||||||||||||||||||
Investment in unconsolidated affiliates |
50,871 | 49,049 | 44,446 | 42,360 | 1,843 | 1,315 | 517 | 525 | 546 | |||||||||||||||||||||||||||
Other assets |
53,162 | 67,218 | 70,475 | 61,761 | 33,416 | 33,314 | 35,100 | 32,617 | 52,393 | |||||||||||||||||||||||||||
Non-current assets of discontinued operations |
14,730 | 13,959 | | | | | | | | |||||||||||||||||||||||||||
Total assets |
$ | 2,077,810 | $ | 2,060,378 | $ | 2,051,709 | $ | 2,202,974 | $ | 1,916,590 | $ | 2,004,094 | $ | 1,789,467 | $ | 1,774,232 | $ | 1,827,190 | ||||||||||||||||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||||||||||||||||||||||||||||||
Current liabilities: |
||||||||||||||||||||||||||||||||||||
Accounts payable, accrued expenses and other |
$ | 304,146 | $ | 297,932 | $ | 321,077 | $ | 328,546 | $ | 254,407 | $ | 225,630 | $ | 192,266 | $ | 204,402 | $ | 196,248 | ||||||||||||||||||
Deferred revenue |
524,331 | 521,873 | 470,408 | 411,764 | 414,312 | 344,905 | 289,818 | 265,573 | 305,898 | |||||||||||||||||||||||||||
Borrowings on credit facility short-term |
| | | 247,000 | 54,971 | 254,174 | 97,000 | | | |||||||||||||||||||||||||||
Current portion of long-term debt |
184 | 158 | 142 | 26 | 18 | 27 | 23 | 5,017 | 5,010 | |||||||||||||||||||||||||||
Total current liabilities |
828,661 | 819,963 | 791,627 | 987,336 | 723,708 | 824,736 | 579,107 | 474,992 | 507,156 | |||||||||||||||||||||||||||
Non-current income taxes payable |
111,108 | 116,376 | 119,360 | 115,318 | 119,951 | 123,385 | 125,991 | 82,963 | 87,343 | |||||||||||||||||||||||||||
Long-term debt |
| | | | | | | 45,000 | 45,000 | |||||||||||||||||||||||||||
Other liabilities |
17,264 | 16,254 | 17,449 | 23,699 | 25,658 | 29,838 | 30,971 | 36,394 | 54,527 | |||||||||||||||||||||||||||
Non-current liabilities of discontinued operations |
4,276 | 4,067 | | | | | | | | |||||||||||||||||||||||||||
Total liabilities |
961,309 | 956,660 | 928,436 | 1,126,353 | 869,317 | 977,959 | 736,069 | 639,349 | 694,026 | |||||||||||||||||||||||||||
Common stock and class B common stock |
133 | 133 | 134 | 134 | 133 | 134 | 134 | 134 | 134 | |||||||||||||||||||||||||||
Additional paid-in capital |
1,468,808 | 1,395,991 | 1,397,281 | 1,363,655 | 1,367,373 | 1,374,049 | 1,382,649 | 1,388,609 | 1,395,969 | |||||||||||||||||||||||||||
Accumulated other comprehensive income |
118,387 | 155,830 | 143,264 | 87,460 | 25,801 | 8,327 | 28,360 | 71,133 | 64,167 | |||||||||||||||||||||||||||
Accumulated deficit |
(470,827 | ) | (448,236 | ) | (417,406 | ) | (374,628 | ) | (346,034 | ) | (356,375 | ) | (357,745 | ) | (324,993 | ) | (327,106 | ) | ||||||||||||||||||
Total stockholders equity |
1,116,501 | 1,103,718 | 1,123,273 | 1,076,621 | 1,047,273 | 1,026,135 | 1,053,398 | 1,134,883 | 1,133,164 | |||||||||||||||||||||||||||
Total liabilities and stockholders equity |
$ | 2,077,810 | $ | 2,060,378 | $ | 2,051,709 | $ | 2,202,974 | $ | 1,916,590 | $ | 2,004,094 | $ | 1,789,467 | $ | 1,774,232 | $ | 1,827,190 | ||||||||||||||||||
Selected Financial Ratios(1) |
||||||||||||||||||||||||||||||||||||
- Annualized return on equity |
15.8 | % | 8.1 | % | 11.1 | % | 15.6 | % | 10.8 | % | -4.0 | % | -0.5 | % | 12.0 | % | -0.7 | % | ||||||||||||||||||
- Book value per share |
$ | 9.02 | $ | 9.13 | $ | 9.30 | $ | 9.08 | $ | 8.83 | $ | 8.61 | $ | 8.83 | $ | 9.49 | $ | 9.48 | ||||||||||||||||||
- Cash and marketable securities per share |
$ | 4.67 | $ | 4.13 | $ | 4.42 | $ | 6.18 | $ | 2.65 | $ | 4.20 | $ | 2.78 | $ | 2.37 | $ | 2.51 | ||||||||||||||||||
- Net cash and securities |
$ | 578,032 | $ | 498,353 | $ | 533,095 | $ | 485,632 | $ | 259,033 | $ | 247,038 | $ | 235,034 | $ | 233,895 | $ | 250,106 |
(1) | See notes to financial supplement for definitions and calculations of selected financial ratios. |
Monster Worldwide, Inc.
Segment Information and Margin Analysis Non-GAAP
(unaudited, in thousands)
Segment Information and Margin Analysis Non-GAAP
(unaudited, in thousands)
Trended Quarterly Data | Full Year Data | |||||||||||||||||||||||||||||||||||||||||||
Q4 2007 | Q1 2008 | Q2 2008 | Q3 2008 | Q4 2008 | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | 12M 2008 | 12M 2009 | ||||||||||||||||||||||||||||||||||
Segment OIBDA(1): |
||||||||||||||||||||||||||||||||||||||||||||
Careers North America |
$ | 60,410 | $ | 47,602 | $ | 67,636 | $ | 52,516 | $ | 44,138 | $ | 12,272 | $ | 22,066 | $ | 16,902 | $ | 12,988 | $ | 211,892 | $ | 64,228 | ||||||||||||||||||||||
Careers International |
29,980 | 16,662 | 40,361 | 39,060 | 23,833 | 10,749 | 8,386 | 8,154 | 9,024 | 119,916 | 36,313 | |||||||||||||||||||||||||||||||||
Careers OIBDA (1) |
90,390 | 64,264 | 107,997 | 91,576 | 67,971 | 23,021 | 30,452 | 25,056 | 22,012 | 331,808 | 100,541 | |||||||||||||||||||||||||||||||||
Internet Advertising & Fees OIBDA(1) |
3,118 | 792 | 7,508 | 7,425 | 6,293 | 6,364 | 7,939 | 8,247 | 7,573 | 22,018 | 30,123 | |||||||||||||||||||||||||||||||||
Total Monster OIBDA(1) |
$ | 93,508 | $ | 65,056 | $ | 115,505 | $ | 99,001 | $ | 74,264 | $ | 29,385 | $ | 38,391 | $ | 33,303 | $ | 29,585 | $ | 353,826 | $ | 130,664 | ||||||||||||||||||||||
Corporate expenses before D&A(1) |
$ | (11,032 | ) | $ | (12,104 | ) | $ | (61,196 | ) | $ | (13,192 | ) | $ | (5,810 | ) | $ | (13,843 | ) | $ | (10,810 | ) | $ | (2,851 | ) | $ | 1,206 | $ | (92,302 | ) | $ | (26,298 | ) | ||||||||||||
Proforma operating income(1): |
||||||||||||||||||||||||||||||||||||||||||||
Careers North America |
$ | 56,482 | $ | 42,955 | $ | 59,335 | $ | 43,771 | $ | 34,314 | $ | 3,100 | $ | 12,405 | $ | 9,519 | $ | 4,226 | $ | 180,375 | $ | 29,250 | ||||||||||||||||||||||
Careers International |
28,699 | 12,945 | 33,316 | 32,467 | 17,711 | 7,413 | 1,983 | 782 | 297 | 96,439 | 10,475 | |||||||||||||||||||||||||||||||||
Careers Proforma operating income(1) |
85,181 | 55,900 | 92,651 | 76,238 | 52,025 | 10,513 | 14,388 | 10,301 | 4,523 | 276,814 | 39,725 | |||||||||||||||||||||||||||||||||
Internet Advertising & Fees ProForma operating income (loss)(1) |
2,658 | (609 | ) | 4,994 | 4,977 | 3,745 | 4,003 | 5,096 | 6,506 | 4,993 | 13,107 | 20,598 | ||||||||||||||||||||||||||||||||
Total Monster Proforma income(1) |
$ | 87,839 | $ | 55,291 | $ | 97,645 | $ | 81,215 | $ | 55,770 | $ | 14,516 | $ | 19,484 | $ | 16,807 | $ | 9,516 | $ | 289,921 | $ | 60,323 | ||||||||||||||||||||||
Corporate Proforma expenses(1) |
$ | (12,177 | ) | $ | (11,586 | ) | $ | (19,308 | ) | $ | (11,175 | ) | $ | (14,294 | ) | $ | (14,288 | ) | $ | (11,756 | ) | $ | (12,913 | ) | $ | (9,567 | ) | $ | (56,363 | ) | $ | (48,524 | ) | |||||||||||
Segment operating income (loss):(1) |
||||||||||||||||||||||||||||||||||||||||||||
Careers North America |
$ | 52,950 | $ | 39,701 | $ | 58,409 | $ | 43,120 | $ | 34,025 | $ | 828 | $ | 10,919 | $ | 6,057 | $ | 1,866 | $ | 175,255 | $ | 19,670 | ||||||||||||||||||||||
Careers International |
24,753 | 9,643 | 31,916 | 30,230 | 12,938 | (671 | ) | (2,019 | ) | (2,181 | ) | (1,412 | ) | 84,727 | (6,283 | ) | ||||||||||||||||||||||||||||
Careers operating income (loss) |
77,703 | 49,344 | 90,325 | 73,350 | 46,963 | 157 | 8,900 | 3,876 | 454 | 259,982 | 13,387 | |||||||||||||||||||||||||||||||||
Internet Advertising & Fees operating income (loss) |
1,383 | (1,431 | ) | 4,656 | 4,726 | 3,715 | 3,557 | 4,926 | 5,091 | 4,540 | 11,666 | 18,114 | ||||||||||||||||||||||||||||||||
Total Monster operating income (loss) |
$ | 79,086 | $ | 47,913 | $ | 94,981 | $ | 78,076 | $ | 50,678 | $ | 3,714 | $ | 13,826 | $ | 8,967 | $ | 4,994 | $ | 271,648 | $ | 31,501 | ||||||||||||||||||||||
Corporate expenses |
$ | (13,647 | ) | $ | (14,569 | ) | $ | (63,732 | ) | $ | (15,503 | ) | $ | (7,889 | ) | $ | (18,508 | ) | $ | (14,165 | ) | $ | (6,015 | ) | $ | (1,624 | ) | $ | (101,693 | ) | $ | (40,312 | ) | |||||||||||
Margin Analysis: |
||||||||||||||||||||||||||||||||||||||||||||
Careers North America OIBDA margin |
34.8 | % | 25.9 | % | 41.2 | % | 33.8 | % | 32.7 | % | 10.3 | % | 21.7 | % | 17.8 | % | 14.3 | % | 33.2 | % | 15.8 | % | ||||||||||||||||||||||
Careers North America Proforma operating margin |
32.5 | % | 23.4 | % | 36.1 | % | 28.2 | % | 25.4 | % | 2.6 | % | 12.2 | % | 10.0 | % | 4.6 | % | 28.3 | % | 7.2 | % | ||||||||||||||||||||||
Careers North America operating margin |
30.5 | % | 21.6 | % | 35.6 | % | 27.8 | % | 25.2 | % | 0.7 | % | 10.7 | % | 6.4 | % | 2.1 | % | 27.5 | % | 4.8 | % | ||||||||||||||||||||||
Careers International OIBDA margin |
20.9 | % | 10.9 | % | 25.8 | % | 27.4 | % | 19.4 | % | 10.4 | % | 9.5 | % | 9.6 | % | 10.2 | % | 20.8 | % | 9.9 | % | ||||||||||||||||||||||
Careers International Proforma operating margin |
20.0 | % | 8.4 | % | 21.3 | % | 22.8 | % | 14.2 | % | 7.1 | % | 2.2 | % | 0.9 | % | 0.3 | % | 16.7 | % | 2.8 | % | ||||||||||||||||||||||
Careers International operating margin |
17.3 | % | 6.3 | % | 20.4 | % | 21.2 | % | 10.5 | % | -0.6 | % | -2.3 | % | -2.6 | % | -1.6 | % | 14.7 | % | -1.7 | % | ||||||||||||||||||||||
Careers OIBDA margin |
28.5 | % | 19.1 | % | 33.6 | % | 30.8 | % | 26.4 | % | 10.3 | % | 16.0 | % | 13.9 | % | 12.3 | % | 27.3 | % | 13.0 | % | ||||||||||||||||||||||
Careers Proforma operating margin |
26.9 | % | 16.6 | % | 28.9 | % | 25.6 | % | 20.0 | % | 4.7 | % | 7.5 | % | 5.7 | % | 2.5 | % | 22.8 | % | 5.1 | % | ||||||||||||||||||||||
Careers operating margin |
24.5 | % | 14.7 | % | 28.1 | % | 24.6 | % | 18.2 | % | 0.1 | % | 4.7 | % | 2.2 | % | 0.3 | % | 21.4 | % | 1.7 | % | ||||||||||||||||||||||
Internet Advertising & Fees OIBDA margin |
10.1 | % | 2.7 | % | 22.5 | % | 21.5 | % | 19.2 | % | 20.2 | % | 24.3 | % | 23.8 | % | 22.4 | % | 16.9 | % | 22.7 | % | ||||||||||||||||||||||
Internet Advertising & Fees Proforma operating margin |
8.6 | % | -2.1 | % | 15.0 | % | 14.4 | % | 11.4 | % | 12.7 | % | 15.6 | % | 18.8 | % | 14.8 | % | 10.1 | % | 15.5 | % | ||||||||||||||||||||||
Internet Advertising & Fees operating margin |
4.5 | % | -4.8 | % | 14.0 | % | 13.7 | % | 11.3 | % | 11.3 | % | 15.1 | % | 14.7 | % | 13.5 | % | 9.0 | % | 13.7 | % |
(1) | See notes to financial supplement for further explanation of non-GAAP measures. |
Monster Worldwide, Inc.
Statements of Operations
(unaudited)
Statements of Operations
(unaudited)
Trended Quarterly Data | Full Year Data | |||||||||||||||||||||||||||||||||||||||||||
Summary P&L Information | Q4 2007 | Q1 2008 | Q2 2008 | Q3 2008 | Q4 2008 | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | 12M 2008 | 12M 2009 | |||||||||||||||||||||||||||||||||
Monster Careers |
91.1 | % | 91.9 | % | 90.6 | % | 89.6 | % | 88.7 | % | 87.6 | % | 85.4 | % | 83.9 | % | 84.2 | % | 90.3 | % | 85.4 | % | ||||||||||||||||||||||
Internet Advertising & Fees |
8.9 | % | 8.1 | % | 9.4 | % | 10.4 | % | 11.3 | % | 12.4 | % | 14.6 | % | 16.1 | % | 15.8 | % | 9.7 | % | 14.6 | % | ||||||||||||||||||||||
Revenue |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||
Salary and related |
36.7 | % | 36.9 | % | 35.9 | % | 38.8 | % | 42.4 | % | 44.0 | % | 46.4 | % | 47.9 | % | 49.5 | % | 38.3 | % | 46.8 | % | ||||||||||||||||||||||
Office and general |
16.3 | % | 16.8 | % | 17.4 | % | 17.2 | % | 15.2 | % | 18.0 | % | 19.2 | % | 19.8 | % | 14.8 | % | 16.7 | % | 18.0 | % | ||||||||||||||||||||||
Marketing and promotion |
22.1 | % | 30.5 | % | 19.5 | % | 17.4 | % | 18.1 | % | 29.0 | % | 20.2 | % | 21.3 | % | 21.2 | % | 21.7 | % | 23.2 | % | ||||||||||||||||||||||
Provision for (Reversal of) legal settlements, net |
0.0 | % | 0.0 | % | 11.3 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | -3.2 | % | 0.0 | % | 3.0 | % | -0.8 | % | ||||||||||||||||||||||
Restructuring and other special charges |
1.6 | % | 1.9 | % | 0.8 | % | 1.1 | % | 1.1 | % | 4.3 | % | 2.3 | % | 0.0 | % | 0.0 | % | 1.2 | % | 1.8 | % | ||||||||||||||||||||||
Depreciation expense |
3.0 | % | 2.9 | % | 3.5 | % | 4.0 | % | 5.1 | % | 5.4 | % | 6.5 | % | 7.1 | % | 7.3 | % | 3.8 | % | 6.5 | % | ||||||||||||||||||||||
Amortization of restricted stock and RSU Plan |
1.0 | % | 1.4 | % | 2.4 | % | 2.2 | % | 2.4 | % | 4.0 | % | 4.4 | % | 4.6 | % | 4.4 | % | 2.1 | % | 4.3 | % | ||||||||||||||||||||||
Non-cash stock option expense |
0.0 | % | 0.0 | % | 0.1 | % | 0.0 | % | 0.1 | % | 0.1 | % | 0.0 | % | 0.1 | % | 0.1 | % | 0.0 | % | 0.1 | % | ||||||||||||||||||||||
Amortization of intangibles |
0.4 | % | 0.4 | % | 0.4 | % | 0.4 | % | 0.9 | % | 1.0 | % | 1.1 | % | 1.0 | % | 1.0 | % | 0.5 | % | 1.0 | % | ||||||||||||||||||||||
Operating expenses |
81.2 | % | 90.9 | % | 91.2 | % | 81.2 | % | 85.3 | % | 105.8 | % | 100.2 | % | 98.6 | % | 98.4 | % | 87.4 | % | 101.0 | % | ||||||||||||||||||||||
Operating income (loss) |
18.8 | % | 9.1 | % | 8.8 | % | 18.8 | % | 14.7 | % | -5.8 | % | -0.2 | % | 1.4 | % | 1.6 | % | 12.6 | % | -1.0 | % | ||||||||||||||||||||||
Interest and other, net |
2.0 | % | 2.0 | % | 0.9 | % | 1.6 | % | 0.5 | % | 0.5 | % | 0.0 | % | 0.0 | % | -3.3 | % | 1.3 | % | -0.6 | % | ||||||||||||||||||||||
Income (loss) from continuing operations, pre-tax |
20.8 | % | 11.1 | % | 9.7 | % | 20.4 | % | 15.3 | % | -5.3 | % | -0.1 | % | 1.4 | % | -1.7 | % | 13.9 | % | -1.6 | % | ||||||||||||||||||||||
Income taxes (benefit from) |
7.3 | % | 4.1 | % | 3.4 | % | 6.8 | % | 5.1 | % | -1.8 | % | 0.0 | % | -14.4 | % | -1.1 | % | 4.8 | % | -4.2 | % | ||||||||||||||||||||||
Losses in equity interests, net |
-0.2 | % | -0.5 | % | -1.0 | % | -0.6 | % | -0.1 | % | -0.5 | % | -0.5 | % | -0.5 | % | -0.4 | % | -0.6 | % | -0.5 | % | ||||||||||||||||||||||
Income from continuing operations |
13.3 | % | 6.5 | % | 5.2 | % | 13.0 | % | 10.0 | % | -4.1 | % | -0.6 | % | 15.3 | % | -1.0 | % | 8.5 | % | 2.1 | % | ||||||||||||||||||||||
(Loss) income from disc. operations, net of tax |
-0.3 | % | -0.3 | % | 3.5 | % | -0.1 | % | -0.2 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.8 | % | 0.0 | % | ||||||||||||||||||||||
Net income (loss) |
12.9 | % | 6.2 | % | 8.7 | % | 12.9 | % | 9.8 | % | -4.1 | % | -0.6 | % | 15.3 | % | -1.0 | % | 9.3 | % | 2.1 | % | ||||||||||||||||||||||
Monster Worldwide, Inc.
Statements of Operations Reconciliation of Non-GAAP Measures
(unaudited, in thousands, except per share amounts)
Statements of Operations Reconciliation of Non-GAAP Measures
(unaudited, in thousands, except per share amounts)
Trended Quarterly Data | Full Year Data | |||||||||||||||||||||||||||||||||||||||||||
Summary P&L Information | Q4 2007 | Q1 2008 | Q2 2008 | Q3 2008 | Q4 2008 | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | 12M 2008 | 12M 2009 | |||||||||||||||||||||||||||||||||
Proforma revenue (1) |
$ | 347,847 | $ | 366,472 | $ | 354,294 | $ | 332,189 | $ | 292,885 | $ | 255,397 | $ | 223,782 | $ | 215,085 | $ | 213,149 | $ | 1,345,840 | $ | 907,413 | ||||||||||||||||||||||
Deferred revenue related to acquisitions |
| | | | 2,213 | 994 | 725 | 552 | | 2,213 | 2,271 | |||||||||||||||||||||||||||||||||
Revenue |
$ | 347,847 | $ | 366,472 | $ | 354,294 | $ | 332,189 | $ | 290,672 | $ | 254,403 | $ | 223,057 | $ | 214,533 | $ | 213,149 | $ | 1,343,627 | $ | 905,142 | ||||||||||||||||||||||
OIBDA (1) |
$ | 82,476 | $ | 52,952 | $ | 54,309 | $ | 85,809 | $ | 68,454 | $ | 15,542 | $ | 27,581 | $ | 30,452 | $ | 30,791 | $ | 261,524 | $ | 104,366 | ||||||||||||||||||||||
Depreciation expense |
10,589 | 10,803 | 12,330 | 13,336 | 14,761 | 13,769 | 14,479 | 15,230 | 15,639 | 51,230 | 59,117 | |||||||||||||||||||||||||||||||||
Amortization of restricted stock and RSU Plan |
3,623 | 5,206 | 8,351 | 7,437 | 7,046 | 10,149 | 9,816 | 9,924 | 9,417 | 28,040 | 39,306 | |||||||||||||||||||||||||||||||||
Non-cash stock option expense |
105 | 127 | 182 | 165 | 178 | 199 | 104 | 157 | 155 | 652 | 615 | |||||||||||||||||||||||||||||||||
Restructuring non-cash compensation expense |
| 1,162 | | | | | | | | 1,162 | | |||||||||||||||||||||||||||||||||
Restructuring non-cash write-offs |
1,263 | 924 | 923 | 924 | 924 | 3,668 | 1,055 | | | 3,695 | 4,723 | |||||||||||||||||||||||||||||||||
Amortization of intangibles |
1,457 | 1,386 | 1,274 | 1,374 | 2,756 | 2,551 | 2,466 | 2,189 | 2,210 | 6,790 | 9,416 | |||||||||||||||||||||||||||||||||
Operating income (loss) |
$ | 65,439 | $ | 33,344 | $ | 31,249 | $ | 62,573 | $ | 42,789 | $ | (14,794 | ) | $ | (339 | ) | $ | 2,952 | $ | 3,370 | $ | 169,955 | $ | (8,811 | ) | |||||||||||||||||||
Proforma operating income (1) |
$ | 75,662 | $ | 43,705 | $ | 78,337 | $ | 70,040 | $ | 41,476 | $ | 228 | $ | 7,728 | $ | 3,894 | $ | (51 | ) | $ | 233,558 | $ | 11,799 | |||||||||||||||||||||
Provision for (Reversal of) legal settlements, net |
| | 40,100 | | | | | (6,850 | ) | | 40,100 | (6,850 | ) | |||||||||||||||||||||||||||||||
Stock option investigation |
1,392 | 2,983 | 4,256 | 3,875 | (6,682 | ) | 3,020 | 2,245 | (474 | ) | (8,037 | ) | 4,432 | (3,246 | ) | |||||||||||||||||||||||||||||
Security breach |
3,389 | 451 | | | | | | | | 451 | | |||||||||||||||||||||||||||||||||
Non-Gaap severance |
| | | | | | | 5,907 | 2,866 | | 8,773 | |||||||||||||||||||||||||||||||||
Non-Gaap facilities |
| | | | | | | 1,807 | 1,750 | | 3,557 | |||||||||||||||||||||||||||||||||
Deferred revenue related to acquisitions |
| | | | 2,213 | 994 | 725 | 552 | | 2,213 | 2,271 | |||||||||||||||||||||||||||||||||
Restructuring non-cash compensation expense |
| 1,162 | | | | | | | | 1,162 | | |||||||||||||||||||||||||||||||||
Restructuring program non-cash write-offs |
1,263 | 924 | 923 | 924 | 924 | 3,668 | 1,055 | | | 3,695 | 4,723 | |||||||||||||||||||||||||||||||||
Restructuring expenses, less non-cash items |
4,179 | 4,841 | 1,809 | 2,668 | 2,232 | 7,340 | 4,042 | | | 11,550 | 11,382 | |||||||||||||||||||||||||||||||||
Operating income (loss) |
$ | 65,439 | $ | 33,344 | $ | 31,249 | $ | 62,573 | $ | 42,789 | $ | (14,794 | ) | $ | (339 | ) | $ | 2,952 | $ | 3,370 | $ | 169,955 | $ | (8,811 | ) | |||||||||||||||||||
(1) | See notes to financial supplement for further explanation of non-GAAP measures. |