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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-99.2 - EXHIBIT 99.2 - MONSTER WORLDWIDE, INC.c95504exv99w2.htm
EX-99.1 - EXHIBIT 99.1 - MONSTER WORLDWIDE, INC.c95504exv99w1.htm
Exhibit 99.3
(MONSTER WORLDWIDE LOGO)
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 Company’s 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.

 

 


 

(MONSTER WORLDWIDE LOGO)
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 Company’s 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 Company’s 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 Company’s 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 Company’s 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 SEC’s inquiry into the Company’s 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 Company’s 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 RBC’s 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.

 

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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 Company’s entry into the settlement agreement with respect to the ERISA class action and settlement of the Company’s 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 Company’s 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.

 

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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 Company’s product and technology group designed to enable the Company to shift or add talent and skills to support the Company’s 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 ChinaHR’s 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 ChinaHR’s 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 ChinaHR’s 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.

 

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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 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 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.
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 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.

 

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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

 

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Monster Worldwide, Inc.
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)
                                                                         
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)
                                                                                         
    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)
                                                                         
    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)
                                                                                         
    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)
                                                                                         
    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)
                                                                                         
    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.