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EX-99.1 - EXHIBIT 99.1 - MONSTER WORLDWIDE, INC. | c11540exv99w1.htm |
8-K - FORM 8-K - MONSTER WORLDWIDE, INC. | c11540e8vk.htm |
Exhibit 99.2
FINANCIAL SUPPLEMENT
December 31, 2010
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
Acquisition of the HotJobs Assets from Yahoo! Inc.
On August 24, 2010, pursuant to an Asset Purchase Agreement dated as of February 3, 2010 (the
Asset Purchase Agreement) by and between Monster and Yahoo! Inc. (Yahoo!), Monster
completed the acquisition of substantially all of the assets exclusive to Yahoo! HotJobs (the
HotJobs Assets) from Yahoo! The purchase price for the HotJobs Assets was $225.0 million. We
acquired the HotJobs Assets, among other objectives, to expand our business in the North
American online recruitment market. The results of operations attributable to the HotJobs
Assets have been included in our consolidated financial statements since August 24, 2010.
Concurrent with the closing of the acquisition, Monster and Yahoo! entered into a three year
commercial traffic agreement whereby Monster became Yahoo!s exclusive provider of career and
job content on the Yahoo! homepage in the United States and Canada.
The Company funded the purchase of the HotJobs Assets with available cash and proceeds from the
Companys revolving credit facility. In the three and twelve months ended December 31, 2010,
the Company incurred $6.1 million and $24.3 million, respectively, of acquisition and integration-related
costs associated with the acquisition of the HotJobs Assets, which were expensed as incurred
and are included in office and general expenses and salary and related expenses in the consolidated statement of operations.
These costs primarily relate to legal fees, professional fees and other integration costs
associated with the acquisition. We expect to continue to incur significant acquisition and
integration-related costs in the first quarter of 2011 relating to the acquisition of the
HotJobs Assets.
Deferred Revenue Related to Acquisitions
During the third quarter of 2010, we completed the acquisition of the HotJobs Assets. In accordance
with existing purchase accounting rules, we are required to write-down to fair value a portion of
the deferred revenue attributable to the HotJobs Assets. 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 months and twelve months ended December 31,
2010, the fair value adjustment to deferred revenue was $3.3 million and $5.1 million,
respectively.
During the fourth quarter of 2008, we completed the acquisition of ChinaHR.com Holdings Ltd.
(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 year ended December 31, 2009, the fair value
adjustment to ChinaHRs deferred revenue was $2.3 million.
Severance Charges
For the three months ended December 31, 2010 and 2009, the Company incurred $0.5 million and $2.9
million, respectively, of severance costs relating to targeted global headcount reductions. For
the year ended December 31, 2010 and 2009, the Company incurred $7.9 million and $8.8 million,
respectively, of severance costs relating to targeted global headcount reductions. These global
headcount reductions were introduced to reduce operating expenses and provide funding for
investments to further position the Company for sustainable long-term growth in the global online
recruitment and advertising industry.
2
Auction Rate Securities
In November 2009, the Company entered into a settlement agreement with RBC Capital Markets
Corporation (RBC) with respect to auction rate securities purchased from RBC. Pursuant to the
terms of the settlement agreement, RBC immediately repurchased the subject auction rate securities
from the Company at a certain discount to their par value. The Company will 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 auction rate securities still held by RBC are redeemed or
refinanced by the issuer for sums higher than the amounts RBC paid the Company to repurchase such
auction rate securities. As part of the settlement agreement, the Company dismissed a lawsuit it
had filed against RBC in connection with, and released claims related to, RBCs sale of the auction
rate securities to the Company. As a result of the settlement with RBC, beginning in the fourth
quarter of 2009, the Company no longer classified losses on its remaining auction rate securities
as temporary and, accordingly, all losses are reflected in the consolidated statement of
operations. As such, the Company recorded a total charge of $6.3 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.
In the year ended December 31, 2010, the Company received $1.4 million from RBC relating to auction
rate securities which were redeemed by the issuer or sold by RBC for sums higher than the amounts
RBC paid the Company to repurchase such auction rate securities. The Companys receipt of $1.4
million from RBC resulted in a $1.4 million benefit recorded in interest and other, net, in the
consolidated statement of operations for the year ended December 31, 2010
Additionally, in the year ended December 31, 2010, the Company received at par value issuer
redemptions of auction rate securities, resulting in a $1.0 million benefit which was recorded in
interest and other, net, in the consolidated statement of operations.
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. Additionally in 2010, we reversed $1.2 million of accrued tax and related interest
related to a favorable resolution of a tax examination.
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. 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. The Company will not incur any new charges relating to this program.
For the year ended December 31, 2009, we recorded $16.1 million of restructuring costs, primarily
related to severance, fixed asset write-offs and office consolidations.
Reversal of Legal Settlements, net
In the third quarter of 2009, the Company reversed a previously recorded accrual of $6.9 million
relating to settlement of all actions seeking recoveries from the Company as an outgrowth of the
Companys historical stock option grant practices.
3
Facility Charges
For the three and twelve months ended December 31, 2009, the Company incurred charges of $1.8
million and $3.6 million, respectively, for costs relating to exited facilities. These charges primarily related
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.
The organizational changes included plans for a new Technology Center of Excellence and Innovation
located in Cambridge, Massachusetts.
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, of professional fees relating to our historical stock option
granting practices. These costs primarily related 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. 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.
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.
Non-GAAP revenue, operating expenses, operating income, operating margin,
net income or loss and diluted earnings per share all exclude certain pro forma adjustments including: net
costs associated with the Companys historical stock option grant practices, related litigation and
potential fines or settlements; severance costs for former executive officers incurred in the
second quarter of 2007; costs related to the measures taken by the Company in response to a
security breach in August 2007; the strategic restructuring actions initiated in the third quarter
of 2007; severance and facility charges primarily related to the product and technology global
reorganization; the fair value adjustment to deferred revenue in connection with the acquisition of
ChinaHR and the HotJobs Assets; realized and unrealized gains and losses on marketable securities;
transaction costs related to the acquisition of the HotJobs Assets; 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.
Earnings before interest, taxes, depreciation and amortization (EBITDA) is defined as net income
or loss before interest income or expense, income tax expense or benefit, net gain or loss in
equity interests, depreciation and amortization and non-cash compensation expense. The Company
considers EBITDA to be an important indicator of its operational strength which the Company
believes is useful to management and investors in evaluating its operating performance. EBITDA is a
non-GAAP measure and may not be comparable to similarly titled measures reported by other
companies.
Operating income before depreciation
and amortization (OIBDA) is defined as net income or loss 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.
4
Bookings represent the dollar value of contractual orders received in the relevant period.
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.
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
5
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 2008 | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | 12M 2009 | 12M 2010 | |||||||||||||||||||||||||||||||||
Monster Careers |
$ | 257,931 | $ | 222,849 | $ | 190,397 | $ | 179,941 | $ | 179,409 | $ | 182,582 | $ | 183,808 | $ | 193,912 | $ | 222,689 | $ | 772,596 | $ | 782,991 | ||||||||||||||||||||||
Internet Advertising & Fees |
32,741 | 31,554 | 32,660 | 34,592 | 33,740 | 32,723 | 31,109 | 34,930 | 32,380 | 132,546 | 131,142 | |||||||||||||||||||||||||||||||||
Revenue |
290,672 | 254,403 | 223,057 | 214,533 | 213,149 | 215,305 | 214,917 | 228,842 | 255,069 | 905,142 | 914,133 | |||||||||||||||||||||||||||||||||
Salary and related |
123,211 | 112,037 | 103,564 | 102,752 | 105,475 | 118,183 | 104,089 | 105,764 | 115,564 | 423,828 | 443,600 | |||||||||||||||||||||||||||||||||
Office and general |
44,091 | 45,793 | 42,917 | 42,422 | 31,623 | 45,544 | 41,214 | 46,790 | 42,153 | 162,755 | 175,701 | |||||||||||||||||||||||||||||||||
Marketing and promotion |
52,684 | 73,691 | 44,953 | 45,757 | 45,260 | 59,581 | 46,925 | 51,661 | 64,399 | 209,661 | 222,566 | |||||||||||||||||||||||||||||||||
Reversal of legal settlements, net |
| | | (6,850 | ) | | | | | | (6,850 | ) | | |||||||||||||||||||||||||||||||
Restructuring and other special charges |
3,156 | 11,008 | 5,097 | | | | | | | 16,105 | | |||||||||||||||||||||||||||||||||
Depreciation expense |
14,761 | 13,769 | 14,479 | 15,230 | 15,639 | 14,521 | 13,782 | 13,975 | 14,204 | 59,117 | 56,482 | |||||||||||||||||||||||||||||||||
Amortization of restricted stock units and awards |
7,046 | 10,149 | 9,816 | 9,924 | 9,417 | 10,124 | 10,744 | 13,398 | 12,380 | 39,306 | 46,646 | |||||||||||||||||||||||||||||||||
Amortization of stock options |
178 | 199 | 104 | 157 | 155 | 143 | 133 | 135 | 134 | 615 | 545 | |||||||||||||||||||||||||||||||||
Amortization of intangibles |
2,756 | 2,551 | 2,466 | 2,189 | 2,210 | 2,083 | 1,910 | 2,507 | 4,114 | 9,416 | 10,614 | |||||||||||||||||||||||||||||||||
Operating expenses |
247,883 | 269,197 | 223,396 | 211,581 | 209,779 | 250,179 | 218,797 | 234,230 | 252,948 | 913,953 | 956,154 | |||||||||||||||||||||||||||||||||
Operating income (loss) |
42,789 | (14,794 | ) | (339 | ) | 2,952 | 3,370 | (34,874 | ) | (3,880 | ) | (5,388 | ) | 2,121 | (8,811 | ) | (42,021 | ) | ||||||||||||||||||||||||||
Interest and other, net |
1,560 | 1,203 | 76 | (48 | ) | (7,059 | ) | (653 | ) | 901 | (1,286 | ) | (835 | ) | (5,828 | ) | (1,873 | ) | ||||||||||||||||||||||||||
Income (loss) from cont. operations, pre-tax |
44,349 | (13,591 | ) | (263 | ) | 2,904 | (3,689 | ) | (35,527 | ) | (2,979 | ) | (6,674 | ) | 1,286 | (14,639 | ) | (43,894 | ) | |||||||||||||||||||||||||
Provison for (benefit from) income taxes |
14,880 | (4,489 | ) | (83 | ) | (30,891 | ) | (2,420 | ) | (12,179 | ) | (829 | ) | (1,823 | ) | 426 | (37,883 | ) | (14,405 | ) | ||||||||||||||||||||||||
Loss in equity interests, net |
(339 | ) | (1,239 | ) | (1,190 | ) | (1,044 | ) | (844 | ) | (831 | ) | (807 | ) | (873 | ) | (359 | ) | (4,317 | ) | (2,870 | ) | ||||||||||||||||||||||
Income (loss) from continuing operations |
29,130 | (10,341 | ) | (1,370 | ) | 32,751 | (2,113 | ) | (24,179 | ) | (2,957 | ) | (5,724 | ) | 501 | 18,927 | (32,359 | ) | ||||||||||||||||||||||||||
Loss from disc. operations, net of tax |
(536 | ) | | | | | | | | | | | ||||||||||||||||||||||||||||||||
Net income (loss) |
$ | 28,594 | $ | (10,341 | ) | $ | (1,370 | ) | $ | 32,751 | $ | (2,113 | ) | $ | (24,179 | ) | $ | (2,957 | ) | $ | (5,724 | ) | $ | 501 | $ | 18,927 | $ | (32,359 | ) | |||||||||||||||
Basic earnings (loss) per share: |
||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations |
$ | 0.25 | $ | (0.09 | ) | $ | (0.01 | ) | $ | 0.27 | $ | (0.02 | ) | $ | (0.20 | ) | $ | (0.02 | ) | $ | (0.05 | ) | $ | | $ | 0.16 | $ | (0.27 | ) | |||||||||||||||
Net income (loss) |
$ | 0.24 | $ | (0.09 | ) | $ | (0.01 | ) | $ | 0.27 | $ | (0.02 | ) | $ | (0.20 | ) | $ | (0.02 | ) | $ | (0.05 | ) | $ | | $ | 0.16 | $ | (0.27 | ) | |||||||||||||||
Diluted earnings (loss) per share: |
||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations |
$ | 0.24 | $ | (0.09 | ) | $ | (0.01 | ) | $ | 0.27 | $ | (0.02 | ) | $ | (0.20 | ) | $ | (0.02 | ) | $ | (0.05 | ) | $ | | $ | 0.16 | $ | (0.27 | ) | |||||||||||||||
Net income (loss) |
$ | 0.24 | $ | (0.09 | ) | $ | (0.01 | ) | $ | 0.27 | $ | (0.02 | ) | $ | (0.20 | ) | $ | (0.02 | ) | $ | (0.05 | ) | $ | | $ | 0.16 | $ | (0.27 | ) | |||||||||||||||
Weighted avg. shares outstanding: |
||||||||||||||||||||||||||||||||||||||||||||
Basic shares |
118,601 | 118,855 | 119,274 | 119,473 | 119,575 | 120,032 | 120,701 | 120,796 | 120,892 | 119,359 | 120,608 | |||||||||||||||||||||||||||||||||
Diluted shares |
119,380 | 118,855 | 119,274 | 121,676 | 119,575 | 120,032 | 120,701 | 120,796 | 124,525 | 121,170 | 120,608 | |||||||||||||||||||||||||||||||||
Global employees (ones) |
6,961 | 6,295 | 5,999 | 5,779 | 5,687 | 5,518 | 5,546 | 5,792 | 5,847 | 5,687 | 5,847 | |||||||||||||||||||||||||||||||||
Annualized revenue per average employee |
$ | 184.1 | $ | 153.5 | $ | 145.1 | $ | 145.7 | $ | 148.7 | $ | 153.7 | $ | 155.4 | $ | 161.5 | $ | 175.3 | $ | 152.4 | $ | 161.5 | ||||||||||||||||||||||
Net Bookings |
289,650 | 186,899 | 175,468 | 185,920 | 258,620 | 219,054 | 208,202 | 235,025 | 330,157 | 806,907 | 992,438 |
6
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 2008 | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | |||||||||||||||||||||||||||
Monster Careers |
$ | 1,213,300 | $ | 1,099,339 | $ | 968,783 | $ | 851,118 | $ | 772,596 | $ | 732,329 | $ | 725,740 | $ | 739,711 | $ | 782,991 | ||||||||||||||||||
Internet Advertising & Fees |
130,327 | 132,219 | 131,538 | 131,547 | 132,546 | 133,715 | 132,164 | 132,502 | 131,142 | |||||||||||||||||||||||||||
Revenue |
1,343,627 | 1,231,558 | 1,100,321 | 982,665 | 905,142 | 866,044 | 857,904 | 872,213 | 914,133 | |||||||||||||||||||||||||||
Salary and related |
514,576 | 491,498 | 467,716 | 441,564 | 423,828 | 429,974 | 430,499 | 433,511 | 443,600 | |||||||||||||||||||||||||||
Office and general |
224,679 | 208,762 | 189,925 | 175,223 | 162,755 | 162,506 | 160,803 | 165,171 | 175,701 | |||||||||||||||||||||||||||
Marketing and promotion |
291,198 | 253,035 | 229,012 | 217,085 | 209,661 | 195,551 | 197,523 | 203,427 | 222,566 | |||||||||||||||||||||||||||
Provision for (reversal of) legal settlements, net |
40,100 | 40,100 | | (6,850 | ) | (6,850 | ) | (6,850 | ) | (6,850 | ) | | | |||||||||||||||||||||||
Restructuring and other special charges |
16,407 | 20,488 | 22,853 | 19,261 | 16,105 | 5,097 | | | | |||||||||||||||||||||||||||
Depreciation expense |
51,230 | 54,196 | 56,345 | 58,239 | 59,117 | 59,869 | 59,172 | 57,917 | 56,482 | |||||||||||||||||||||||||||
Amortization of restricted stock units and awards |
28,040 | 32,983 | 34,448 | 36,935 | 39,306 | 39,281 | 40,209 | 43,683 | 46,646 | |||||||||||||||||||||||||||
Amortization of stock options |
652 | 724 | 646 | 638 | 615 | 559 | 588 | 566 | 545 | |||||||||||||||||||||||||||
Amortization of intangibles |
6,790 | 7,955 | 9,147 | 9,962 | 9,416 | 8,948 | 8,392 | 8,710 | 10,614 | |||||||||||||||||||||||||||
Operating expenses |
1,173,672 | 1,109,741 | 1,010,092 | 952,057 | 913,953 | 894,935 | 890,336 | 912,985 | 956,154 | |||||||||||||||||||||||||||
Operating income (loss) |
169,955 | 121,817 | 90,229 | 30,608 | (8,811 | ) | (28,891 | ) | (32,432 | ) | (40,772 | ) | (42,021 | ) | ||||||||||||||||||||||
Interest and other, net |
17,283 | 11,103 | 8,122 | 2,791 | (5,828 | ) | (7,684 | ) | (6,859 | ) | (8,097 | ) | (1,873 | ) | ||||||||||||||||||||||
Income (loss) from continuing operations, pre-tax |
187,238 | 132,920 | 98,351 | 33,399 | (14,639 | ) | (36,575 | ) | (39,291 | ) | (48,869 | ) | (43,894 | ) | ||||||||||||||||||||||
Provision for (benefit from) income taxes |
64,910 | 45,278 | 33,042 | (20,583 | ) | (37,883 | ) | (45,573 | ) | (46,319 | ) | (17,251 | ) | (14,405 | ) | |||||||||||||||||||||
Loss in equity interests, net |
(7,839 | ) | (7,256 | ) | (4,854 | ) | (3,812 | ) | (4,317 | ) | (3,909 | ) | (3,526 | ) | (3,355 | ) | (2,870 | ) | ||||||||||||||||||
Income (loss) from continuing operations |
114,489 | 80,386 | 60,455 | 50,170 | 18,927 | 5,089 | 3,502 | (34,973 | ) | (32,359 | ) | |||||||||||||||||||||||||
Income (loss) from disc. operations, net of tax |
10,304 | 11,475 | (794 | ) | (536 | ) | | | | | | |||||||||||||||||||||||||
Net income (loss) |
$ | 124,793 | $ | 91,861 | $ | 59,661 | $ | 49,634 | $ | 18,927 | $ | 5,089 | $ | 3,502 | $ | (34,973 | ) | $ | (32,359 | ) | ||||||||||||||||
Basic earnings (loss) per share: |
||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations |
$ | 0.95 | $ | 0.67 | $ | 0.51 | $ | 0.42 | $ | 0.16 | $ | 0.04 | $ | 0.03 | $ | (0.29 | ) | $ | (0.27 | ) | ||||||||||||||||
Net income (loss) |
$ | 1.04 | $ | 0.77 | $ | 0.50 | $ | 0.42 | $ | 0.16 | $ | 0.04 | $ | 0.03 | $ | (0.29 | ) | $ | (0.27 | ) | ||||||||||||||||
Diluted earnings (loss) per share: |
||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations |
$ | 0.94 | $ | 0.67 | $ | 0.51 | $ | 0.42 | $ | 0.16 | $ | 0.04 | $ | 0.03 | $ | (0.29 | ) | $ | (0.27 | ) | ||||||||||||||||
Net income (loss) |
$ | 1.03 | $ | 0.76 | $ | 0.50 | $ | 0.41 | $ | 0.16 | $ | 0.04 | $ | 0.03 | $ | (0.29 | ) | $ | (0.27 | ) | ||||||||||||||||
Weighted avg. shares outstanding: |
||||||||||||||||||||||||||||||||||||
Basic shares |
120,557 | 119,600 | 119,197 | 119,051 | 119,294 | 119,588 | 119,945 | 120,276 | 120,605 | |||||||||||||||||||||||||||
Diluted shares |
121,167 | 120,125 | 119,558 | 119,796 | 119,845 | 120,139 | 120,496 | 120,276 | 121,513 |
7
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 2008 | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | 12M 2009 | 12M 2010 | ||||||||||||||||||||||||||||||||||
Cash flows (used for) provided by operating activities: |
||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) |
$ | 28,594 | $ | (10,341 | ) | $ | (1,370 | ) | $ | 32,751 | $ | (2,113 | ) | $ | (24,179 | ) | $ | (2,957 | ) | $ | (5,724 | ) | $ | 501 | $ | 18,927 | $ | (32,359 | ) | |||||||||||||||
Adjustments to reconcile net income (loss) to cash (used for) provided by operating activities: |
||||||||||||||||||||||||||||||||||||||||||||
Loss from discontinued operations, net of tax |
536 | | | | | | | | | | | |||||||||||||||||||||||||||||||||
Depreciation and amortization |
17,517 | 16,320 | 16,945 | 17,419 | 17,849 | 16,604 | 15,692 | 16,482 | 18,318 | 68,533 | 67,096 | |||||||||||||||||||||||||||||||||
Reversal of legal settlements, net |
| | | (6,850 | ) | | | | | | (6,850 | ) | | |||||||||||||||||||||||||||||||
Payments for legal settlements, net |
(35,587 | ) | | | | | | | | | | | ||||||||||||||||||||||||||||||||
Provision for doubtful accounts |
5,057 | 4,072 | 2,812 | 1,682 | 1,588 | 1,149 | 398 | 489 | 911 | 10,154 | 2,947 | |||||||||||||||||||||||||||||||||
Non-cash compensation |
7,223 | 10,348 | 9,920 | 10,081 | 9,572 | 10,267 | 10,877 | 13,533 | 12,514 | 39,921 | 47,191 | |||||||||||||||||||||||||||||||||
Deferred income taxes |
14,572 | (2,488 | ) | (3,933 | ) | 12,160 | (4,550 | ) | (14,713 | ) | (2,872 | ) | (8,509 | ) | (1,796 | ) | 1,189 | (27,890 | ) | |||||||||||||||||||||||||
Non-cash restructuring write-offs, accelerated amortization, and other |
924 | 3,690 | 1,051 | 3 | 35 | | 144 | 19 | 92 | 4,779 | 255 | |||||||||||||||||||||||||||||||||
Loss in equity interests, net |
339 | 1,239 | 1,190 | 1,044 | 844 | 831 | 807 | 873 | 359 | 4,317 | 2,870 | |||||||||||||||||||||||||||||||||
Losses (gains) on auction rate securities |
| | | | 4,181 | (200 | ) | (1,904 | ) | (311 | ) | | 4,181 | (2,415 | ) | |||||||||||||||||||||||||||||
Changes in assets and liabilities, net of acquisitions: |
||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable |
(19,371 | ) | 72,347 | 47,892 | 7,284 | (47,061 | ) | 17,631 | 16,930 | (21,282 | ) | (66,834 | ) | 80,462 | (53,555 | ) | ||||||||||||||||||||||||||||
Prepaid and other |
1,548 | 3,246 | 13,615 | (16,005 | ) | (3,525 | ) | 1,589 | (2,201 | ) | 720 | (16,598 | ) | (2,669 | ) | (16,490 | ) | |||||||||||||||||||||||||||
Deferred revenue |
(5,732 | ) | (63,383 | ) | (61,153 | ) | (28,152 | ) | 41,054 | 4,668 | (19,725 | ) | 12,471 | 65,074 | (111,634 | ) | 62,488 | |||||||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities |
(27,790 | ) | (21,237 | ) | (40,657 | ) | (19,574 | ) | 14,883 | 22,569 | (8,491 | ) | 9,849 | 19,007 | (66,585 | ) | 42,934 | |||||||||||||||||||||||||||
Net cash (used for) provided by operating activities of discontinued operations |
(2,758 | ) | (77 | ) | 77 | | | | | | | | | |||||||||||||||||||||||||||||||
Total adjustments |
(43,522 | ) | 24,077 | (12,241 | ) | (20,908 | ) | 34,870 | 60,395 | 9,655 | 24,334 | 31,047 | 25,798 | 125,431 | ||||||||||||||||||||||||||||||
Net cash (used for) provided by operating activities |
(14,928 | ) | 13,736 | (13,611 | ) | 11,843 | 32,757 | 36,216 | 6,698 | 18,610 | 31,548 | 44,725 | 93,072 | |||||||||||||||||||||||||||||||
Cash flows (used for) provided by investing activities: |
||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures |
(22,403 | ) | (14,922 | ) | (11,457 | ) | (12,285 | ) | (10,013 | ) | (8,536 | ) | (11,939 | ) | (16,181 | ) | (20,470 | ) | (48,677 | ) | (57,126 | ) | ||||||||||||||||||||||
Purchase of marketable securities |
(1,785 | ) | (992 | ) | (6,484 | ) | | (1,109 | ) | | | | | (8,585 | ) | | ||||||||||||||||||||||||||||
Sale and maturities of marketable securities and other |
36,981 | 1,425 | 1,892 | | 67,660 | 3,414 | 11,120 | 8,461 | 4,094 | 70,977 | 27,089 | |||||||||||||||||||||||||||||||||
Payments for acquisitions and intangible assets, net of cash acquired |
(166,641 | ) | | | (300 | ) | | | | (225,000 | ) | (795 | ) | (300 | ) | (225,795 | ) | |||||||||||||||||||||||||||
Dividends received from unconsolidated investee |
| | 763 | | | 220 | | | | 763 | 220 | |||||||||||||||||||||||||||||||||
Cash funded to equity investee |
(1,402 | ) | (1,428 | ) | (1,886 | ) | (1,639 | ) | (1,346 | ) | (1,345 | ) | (1,555 | ) | (1,524 | ) | (1,224 | ) | (6,299 | ) | (5,648 | ) | ||||||||||||||||||||||
Net cash (used for) provided by investing activities |
(155,250 | ) | (15,917 | ) | (17,172 | ) | (14,224 | ) | 55,192 | (6,247 | ) | (2,374 | ) | (234,244 | ) | (18,395 | ) | 7,879 | (261,260 | ) | ||||||||||||||||||||||||
Cash flows (used for) provided by financing activities: |
||||||||||||||||||||||||||||||||||||||||||||
Proceeds from borrowings on credit facilities short-term |
4,971 | 199,203 | | | | | | 90,000 | | 199,203 | 90,000 | |||||||||||||||||||||||||||||||||
Payments on borrowings on credit facilities short-term |
(197,893 | ) | | (157,173 | ) | (99,023 | ) | | | | (5,000 | ) | (10,500 | ) | (256,196 | ) | (15,500 | ) | ||||||||||||||||||||||||||
Repurchase
of common stock and tax withholdings on net share settlement of restricted stock awards and units |
(32 | ) | (1,907 | ) | (528 | ) | (1,869 | ) | (267 | ) | (6,359 | ) | (2,856 | ) | (589 | ) | (4,423 | ) | (4,571 | ) | (14,227 | ) | ||||||||||||||||||||||
Net borrowings (payments) under capital lease obligations and other debt |
(15 | ) | (5 | ) | (1 | ) | 50,006 | | | | | | 50,000 | | ||||||||||||||||||||||||||||||
Proceeds from the exercise of employee stock options |
305 | 9 | | 46 | 12 | 27 | 39 | | 234 | 67 | 300 | |||||||||||||||||||||||||||||||||
Excess tax benefits from equity compensation plans |
22 | 4 | | 8 | 67 | | | | | 79 | | |||||||||||||||||||||||||||||||||
Net cash (used for) provided by financing activities |
(192,642 | ) | 197,304 | (157,702 | ) | (50,832 | ) | (188 | ) | (6,332 | ) | (2,817 | ) | 84,411 | (14,689 | ) | (11,418 | ) | 60,573 | |||||||||||||||||||||||||
Effects of exchange rates on cash |
(20,044 | ) | (6,327 | ) | 13,681 | 4,438 | 209 | (7,932 | ) | (3,930 | ) | 9,207 | (2,008 | ) | 12,001 | (4,663 | ) | |||||||||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents |
(382,864 | ) | 188,796 | (174,804 | ) | (48,775 | ) | 87,970 | 15,705 | (2,423 | ) | (122,016 | ) | (3,544 | ) | 53,187 | (112,278 | ) | ||||||||||||||||||||||||||
Cash and cash equivalents, beginning of period |
605,124 | 222,260 | 411,056 | 236,252 | 187,477 | 275,447 | 291,152 | 288,729 | 166,713 | 222,260 | 275,447 | |||||||||||||||||||||||||||||||||
Cash and cash equivalents, end of period |
$ | 222,260 | $ | 411,056 | $ | 236,252 | $ | 187,477 | $ | 275,447 | $ | 291,152 | $ | 288,729 | $ | 166,713 | $ | 163,169 | $ | 275,447 | $ | 163,169 | ||||||||||||||||||||||
Non GAAP Free cash flow (1): |
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Net cash (used for) provided by operating activities |
$ | (14,928 | ) | $ | 13,736 | $ | (13,611 | ) | $ | 11,843 | $ | 32,757 | $ | 36,216 | $ | 6,698 | $ | 18,610 | $ | 31,548 | $ | 44,725 | $ | 93,072 | ||||||||||||||||||||
Less: Capital expenditures |
(22,403 | ) | (14,922 | ) | (11,457 | ) | (12,285 | ) | (10,013 | ) | (8,536 | ) | (11,939 | ) | (16,181 | ) | (20,470 | ) | (48,677 | ) | (57,126 | ) | ||||||||||||||||||||||
Free cash flow |
$ | (37,331 | ) | $ | (1,186 | ) | $ | (25,068 | ) | $ | (442 | ) | $ | 22,744 | $ | 27,680 | $ | (5,241 | ) | $ | 2,429 | $ | 11,078 | $ | (3,952 | ) | $ | 35,946 | ||||||||||||||||
(1) | - See notes to financial supplement for further explanation of non-GAAP measures. |
8
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 2008 | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | ||||||||||||||||||||||||||||
ASSETS |
||||||||||||||||||||||||||||||||||||
Current assets: |
||||||||||||||||||||||||||||||||||||
Cash and cash equivalents |
$ | 222,260 | $ | 411,056 | $ | 236,252 | $ | 187,477 | $ | 275,447 | $ | 291,152 | $ | 288,729 | $ | 166,713 | $ | 163,169 | ||||||||||||||||||
Marketable securities, current |
1,425 | 992 | 14,533 | 20,482 | 9,259 | 8,150 | 8,300 | | | |||||||||||||||||||||||||||
Accounts Receivable, net |
376,720 | 294,449 | 249,004 | 243,033 | 287,698 | 263,589 | 242,199 | 282,274 | 346,751 | |||||||||||||||||||||||||||
Prepaid and other |
82,416 | 82,710 | 73,866 | 87,058 | 73,089 | 70,229 | 68,487 | 66,301 | 75,451 | |||||||||||||||||||||||||||
Total current assets |
682,821 | 789,207 | 573,655 | 538,050 | 645,493 | 633,120 | 607,715 | 515,288 | 585,371 | |||||||||||||||||||||||||||
Marketable securities, non-current |
90,347 | 89,196 | 81,272 | 75,953 | 15,410 | 13,110 | 4,094 | 4,094 | | |||||||||||||||||||||||||||
Property and equipment, net |
161,282 | 154,559 | 153,942 | 150,963 | 143,727 | 136,487 | 136,821 | 143,973 | 150,147 | |||||||||||||||||||||||||||
Goodwill |
894,546 | 886,970 | 897,561 | 930,231 | 925,758 | 917,187 | 892,008 | 1,123,834 | 1,122,951 | |||||||||||||||||||||||||||
Intangibles, net |
52,335 | 49,533 | 47,420 | 45,893 | 43,863 | 41,173 | 39,029 | 70,067 | 66,184 | |||||||||||||||||||||||||||
Investment in unconsolidated affiliates |
1,843 | 1,315 | 517 | 525 | 546 | 330 | 640 | 745 | 1,359 | |||||||||||||||||||||||||||
Other assets |
33,416 | 33,314 | 35,100 | 32,617 | 52,393 | 50,884 | 52,411 | 52,108 | 51,990 | |||||||||||||||||||||||||||
Total assets |
$ | 1,916,590 | $ | 2,004,094 | $ | 1,789,467 | $ | 1,774,232 | $ | 1,827,190 | $ | 1,792,291 | $ | 1,732,718 | $ | 1,910,109 | $ | 1,978,002 | ||||||||||||||||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||||||||||||||||||||||||||||||
Current liabilities: |
||||||||||||||||||||||||||||||||||||
Accounts payable, accrued expenses and other |
$ | 254,407 | $ | 225,630 | $ | 192,266 | $ | 204,402 | $ | 196,248 | $ | 217,671 | $ | 203,227 | $ | 213,562 | $ | 225,876 | ||||||||||||||||||
Deferred revenue |
414,312 | 344,905 | 289,818 | 265,573 | 305,898 | 304,993 | 279,809 | 312,952 | 376,448 | |||||||||||||||||||||||||||
Borrowings on credit facility short-term |
54,971 | 254,174 | 97,000 | | | | | 90,000 | 79,500 | |||||||||||||||||||||||||||
Current portion of long-term debt |
18 | 27 | 23 | 5,017 | 5,010 | 5,003 | 5,000 | 5,000 | 5,000 | |||||||||||||||||||||||||||
Total current liabilities |
723,708 | 824,736 | 579,107 | 474,992 | 507,156 | 527,667 | 488,036 | 621,514 | 686,824 | |||||||||||||||||||||||||||
Long-term income taxes payable |
119,951 | 123,385 | 125,991 | 82,963 | 87,343 | 89,101 | 90,813 | 95,464 | 95,390 | |||||||||||||||||||||||||||
Long-term debt, less current portion |
| | | 45,000 | 45,000 | 45,000 | 45,000 | 40,000 | 40,000 | |||||||||||||||||||||||||||
Other liabilities |
25,658 | 29,838 | 30,971 | 36,394 | 54,527 | 38,288 | 38,325 | 27,398 | 27,138 | |||||||||||||||||||||||||||
Total liabilities |
869,317 | 977,959 | 736,069 | 639,349 | 694,026 | 700,056 | 662,174 | 784,376 | 849,352 | |||||||||||||||||||||||||||
Common stock |
133 | 134 | 134 | 134 | 134 | 135 | 135 | 136 | 136 | |||||||||||||||||||||||||||
Additional paid-in capital |
1,367,373 | 1,374,049 | 1,382,649 | 1,388,609 | 1,395,970 | 1,394,915 | 1,404,043 | 1,416,547 | 1,424,815 | |||||||||||||||||||||||||||
Accumulated other comprehensive income |
25,801 | 8,327 | 28,360 | 71,133 | 64,167 | 48,470 | 20,608 | 69,016 | 63,165 | |||||||||||||||||||||||||||
Accumulated deficit |
(346,034 | ) | (356,375 | ) | (357,745 | ) | (324,993 | ) | (327,107 | ) | (351,285 | ) | (354,242 | ) | (359,966 | ) | (359,466 | ) | ||||||||||||||||||
Total stockholders equity |
1,047,273 | 1,026,135 | 1,053,398 | 1,134,883 | 1,133,164 | 1,092,235 | 1,070,544 | 1,125,733 | 1,128,650 | |||||||||||||||||||||||||||
Total liabilities and stockholders equity |
$ | 1,916,590 | $ | 2,004,094 | $ | 1,789,467 | $ | 1,774,232 | $ | 1,827,190 | $ | 1,792,291 | $ | 1,732,718 | $ | 1,910,109 | $ | 1,978,002 | ||||||||||||||||||
Selected Financial Ratios(1) |
||||||||||||||||||||||||||||||||||||
- Annualized return on equity |
10.8 | % | -4.0 | % | -0.5 | % | 12.0 | % | -0.7 | % | -8.7 | % | -1.1 | % | -2.1 | % | 0.2 | % | ||||||||||||||||||
- Book value per share |
$ | 8.83 | $ | 8.61 | $ | 8.83 | $ | 9.49 | $ | 9.47 | $ | 9.05 | $ | 8.87 | $ | 9.32 | $ | 9.32 | ||||||||||||||||||
- Cash and marketable securities per share |
$ | 2.65 | $ | 4.20 | $ | 2.78 | $ | 2.37 | $ | 2.51 | $ | 2.59 | $ | 2.49 | $ | 1.41 | $ | 1.35 | ||||||||||||||||||
- Net cash and securities |
$ | 259,033 | $ | 247,038 | $ | 235,034 | $ | 233,895 | $ | 250,106 | $ | 262,409 | $ | 251,123 | $ | 35,807 | $ | 38,669 |
(1) | - See notes to financial supplement for definitions and calculations of selected
financial ratios. |
9
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 2008 | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | 12M 2009 | 12M 2010 | ||||||||||||||||||||||||||||||||||
Segment OIBDA(1): |
||||||||||||||||||||||||||||||||||||||||||||
Careers North America |
$ | 44,138 | $ | 12,272 | $ | 22,066 | $ | 16,902 | $ | 12,988 | $ | 5,671 | $ | 26,825 | $ | 29,734 | $ | 28,033 | $ | 64,228 | $ | 90,263 | ||||||||||||||||||||||
Careers International |
23,833 | 10,749 | 8,386 | 8,154 | 9,024 | (3,089 | ) | 5,583 | 5,170 | 11,539 | 36,313 | 19,203 | ||||||||||||||||||||||||||||||||
Careers OIBDA (1) |
67,971 | 23,021 | 30,452 | 25,056 | 22,012 | 2,582 | 32,408 | 34,904 | 39,572 | 100,541 | 109,466 | |||||||||||||||||||||||||||||||||
Internet Advertising & Fees OIBDA(1) |
6,293 | 6,364 | 7,939 | 8,247 | 7,573 | 4,764 | 4,056 | 5,673 | 4,346 | 30,123 | 18,839 | |||||||||||||||||||||||||||||||||
Total Monster OIBDA(1) |
$ | 74,264 | $ | 29,385 | $ | 38,391 | $ | 33,303 | $ | 29,585 | $ | 7,346 | $ | 36,464 | $ | 40,577 | $ | 43,918 | $ | 130,664 | $ | 128,305 | ||||||||||||||||||||||
Corporate expenses before D&A(1) |
$ | (5,810 | ) | $ | (13,843 | ) | $ | (10,812 | ) | $ | (2,851 | ) | $ | 1,206 | $ | (15,349 | ) | $ | (13,775 | ) | $ | (15,950 | ) | $ | (10,965 | ) | $ | (26,300 | ) | $ | (56,039 | ) | ||||||||||||
Proforma operating income(1): |
||||||||||||||||||||||||||||||||||||||||||||
Careers North America |
$ | 34,314 | $ | 3,100 | $ | 12,405 | $ | 9,519 | $ | 4,226 | $ | (491 | ) | $ | 17,500 | $ | 20,744 | $ | 18,701 | $ | 29,250 | $ | 56,454 | |||||||||||||||||||||
Careers International |
17,711 | 7,413 | 1,983 | 782 | 297 | (11,269 | ) | (3,989 | ) | (5,576 | ) | 288 | 10,475 | (20,546 | ) | |||||||||||||||||||||||||||||
Careers Proforma operating income(1) |
52,025 | 10,513 | 14,388 | 10,301 | 4,523 | (11,760 | ) | 13,511 | 15,168 | 18,989 | 39,725 | 35,908 | ||||||||||||||||||||||||||||||||
Internet Advertising & Fees ProForma operating income (loss)(1) |
3,745 | 4,003 | 5,096 | 6,506 | 4,993 | 2,145 | 561 | 1,937 | 559 | 20,598 | 5,202 | |||||||||||||||||||||||||||||||||
Total Monster Proforma income(1) |
$ | 55,770 | $ | 14,516 | $ | 19,484 | $ | 16,807 | $ | 9,516 | $ | (9,615 | ) | $ | 14,072 | $ | 17,105 | $ | 19,548 | $ | 60,323 | $ | 41,110 | |||||||||||||||||||||
Corporate Proforma expenses(1) |
$ | (14,294 | ) | $ | (14,288 | ) | $ | (11,756 | ) | $ | (12,913 | ) | $ | (9,567 | ) | $ | (14,528 | ) | $ | (12,223 | ) | $ | (11,554 | ) | $ | (7,612 | ) | $ | (48,524 | ) | $ | (45,917 | ) | |||||||||||
Segment operating income (loss)(1): |
||||||||||||||||||||||||||||||||||||||||||||
Careers North America |
$ | 34,025 | $ | 828 | $ | 10,919 | $ | 6,057 | $ | 1,866 | $ | (3,772 | ) | $ | 17,454 | $ | 18,773 | $ | 15,328 | $ | 19,670 | $ | 47,783 | |||||||||||||||||||||
Careers International |
12,938 | (671 | ) | (2,019 | ) | (2,181 | ) | (1,412 | ) | (13,412 | ) | (4,536 | ) | (5,882 | ) | 258 | (6,283 | ) | (23,572 | ) | ||||||||||||||||||||||||
Careers operating income (loss) |
46,963 | 157 | 8,900 | 3,876 | 454 | (17,184 | ) | 12,918 | 12,891 | 15,586 | 13,387 | 24,211 | ||||||||||||||||||||||||||||||||
Internet Advertising & Fees operating income (loss) |
3,715 | 3,557 | 4,926 | 5,091 | 4,540 | 1,236 | 546 | 1,880 | 562 | 18,114 | 4,224 | |||||||||||||||||||||||||||||||||
Total Monster operating income (loss) |
$ | 50,678 | $ | 3,714 | $ | 13,826 | $ | 8,967 | $ | 4,994 | $ | (15,948 | ) | $ | 13,464 | $ | 14,771 | $ | 16,148 | $ | 31,501 | $ | 28,435 | |||||||||||||||||||||
Corporate expenses |
$ | (7,889 | ) | $ | (18,508 | ) | $ | (14,165 | ) | $ | (6,015 | ) | $ | (1,624 | ) | $ | (18,926 | ) | $ | (17,344 | ) | $ | (20,159 | ) | $ | (14,027 | ) | $ | (40,312 | ) | $ | (70,456 | ) | |||||||||||
Margin Analysis: |
||||||||||||||||||||||||||||||||||||||||||||
Careers North America OIBDA margin |
32.7 | % | 10.3 | % | 21.7 | % | 17.8 | % | 14.3 | % | 5.8 | % | 27.7 | % | 27.7 | % | 23.2 | % | 15.8 | % | 21.4 | % | ||||||||||||||||||||||
Careers North America Proforma operating margin |
25.4 | % | 2.6 | % | 12.2 | % | 10.0 | % | 4.6 | % | -0.5 | % | 18.1 | % | 19.0 | % | 15.0 | % | 7.2 | % | 13.2 | % | ||||||||||||||||||||||
Careers North America operating margin |
25.2 | % | 0.7 | % | 10.7 | % | 6.4 | % | 2.1 | % | -3.9 | % | 18.0 | % | 17.5 | % | 12.7 | % | 4.8 | % | 11.3 | % | ||||||||||||||||||||||
Careers International OIBDA margin |
19.4 | % | 10.4 | % | 9.5 | % | 9.6 | % | 10.2 | % | -3.6 | % | 6.4 | % | 6.0 | % | 11.4 | % | 9.9 | % | 5.3 | % | ||||||||||||||||||||||
Careers International Proforma operating margin |
14.2 | % | 7.1 | % | 2.2 | % | 0.9 | % | 0.3 | % | -13.2 | % | -4.6 | % | -6.4 | % | 0.3 | % | 2.8 | % | -5.7 | % | ||||||||||||||||||||||
Careers International operating margin |
10.5 | % | -0.6 | % | -2.3 | % | -2.6 | % | -1.6 | % | -15.7 | % | -5.2 | % | -6.8 | % | 0.3 | % | -1.7 | % | -6.5 | % | ||||||||||||||||||||||
Careers OIBDA margin |
26.4 | % | 10.3 | % | 16.0 | % | 13.9 | % | 12.3 | % | 1.4 | % | 17.6 | % | 18.0 | % | 17.8 | % | 13.0 | % | 14.0 | % | ||||||||||||||||||||||
Careers Proforma operating margin |
20.0 | % | 4.7 | % | 7.5 | % | 5.7 | % | 2.5 | % | -6.4 | % | 7.4 | % | 7.8 | % | 8.4 | % | 5.1 | % | 4.6 | % | ||||||||||||||||||||||
Careers operating margin |
18.2 | % | 0.1 | % | 4.7 | % | 2.2 | % | 0.3 | % | -9.4 | % | 7.0 | % | 6.6 | % | 7.0 | % | 1.7 | % | 3.1 | % | ||||||||||||||||||||||
Internet Advertising & Fees OIBDA margin |
19.2 | % | 20.2 | % | 24.3 | % | 23.8 | % | 22.4 | % | 14.6 | % | 13.0 | % | 16.2 | % | 13.4 | % | 22.7 | % | 14.4 | % | ||||||||||||||||||||||
Internet Advertising & Fees Proforma operating margin |
11.4 | % | 12.7 | % | 15.6 | % | 18.8 | % | 14.8 | % | 6.6 | % | 1.8 | % | 5.5 | % | 1.7 | % | 15.5 | % | 4.0 | % | ||||||||||||||||||||||
Internet Advertising & Fees operating margin |
11.3 | % | 11.3 | % | 15.1 | % | 14.7 | % | 13.5 | % | 3.8 | % | 1.8 | % | 5.4 | % | 1.7 | % | 13.7 | % | 3.2 | % |
(1) | - See notes to financial supplement for further explanation of non-GAAP measures. |
10
Monster Worldwide, Inc.
Statements of Operations
(unaudited)
Statements of Operations
(unaudited)
Trended Quarterly Data | Full Year Data | |||||||||||||||||||||||||||||||||||||||||||
Summary P&L Information | Q4 2008 | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | 12M 2009 | 12M 2010 | |||||||||||||||||||||||||||||||||
Monster Careers |
88.7 | % | 87.6 | % | 85.4 | % | 83.9 | % | 84.2 | % | 84.8 | % | 85.5 | % | 84.7 | % | 87.3 | % | 85.4 | % | 85.7 | % | ||||||||||||||||||||||
Internet Advertising & Fees |
11.3 | % | 12.4 | % | 14.6 | % | 16.1 | % | 15.8 | % | 15.2 | % | 14.5 | % | 15.3 | % | 12.7 | % | 14.6 | % | 14.3 | % | ||||||||||||||||||||||
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 |
42.4 | % | 44.0 | % | 46.4 | % | 47.9 | % | 49.5 | % | 54.9 | % | 48.4 | % | 46.2 | % | 45.3 | % | 46.8 | % | 48.5 | % | ||||||||||||||||||||||
Office and general |
15.2 | % | 18.0 | % | 19.2 | % | 19.8 | % | 14.8 | % | 21.2 | % | 19.2 | % | 20.4 | % | 16.5 | % | 18.0 | % | 19.2 | % | ||||||||||||||||||||||
Marketing and promotion |
18.1 | % | 29.0 | % | 20.2 | % | 21.3 | % | 21.2 | % | 27.7 | % | 21.8 | % | 22.6 | % | 25.2 | % | 23.2 | % | 24.3 | % | ||||||||||||||||||||||
Reversal of legal settlements, net |
0.0 | % | 0.0 | % | 0.0 | % | -3.2 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | -0.8 | % | 0.0 | % | ||||||||||||||||||||||
Restructuring and other special charges |
1.1 | % | 4.3 | % | 2.3 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 1.8 | % | 0.0 | % | ||||||||||||||||||||||
Depreciation expense |
5.1 | % | 5.4 | % | 6.5 | % | 7.1 | % | 7.3 | % | 6.7 | % | 6.4 | % | 6.1 | % | 5.6 | % | 6.5 | % | 6.2 | % | ||||||||||||||||||||||
Amortization of restricted stock units and awards |
2.4 | % | 4.0 | % | 4.4 | % | 4.6 | % | 4.4 | % | 4.7 | % | 5.0 | % | 5.9 | % | 4.9 | % | 4.3 | % | 5.1 | % | ||||||||||||||||||||||
Amortization of stock options |
0.1 | % | 0.1 | % | 0.0 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | ||||||||||||||||||||||
Amortization of intangibles |
0.9 | % | 1.0 | % | 1.1 | % | 1.0 | % | 1.0 | % | 1.0 | % | 0.9 | % | 1.1 | % | 1.6 | % | 1.0 | % | 1.2 | % | ||||||||||||||||||||||
Operating expenses |
85.3 | % | 105.8 | % | 100.2 | % | 98.6 | % | 98.4 | % | 116.2 | % | 101.8 | % | 102.4 | % | 99.2 | % | 101.0 | % | 104.6 | % | ||||||||||||||||||||||
Operating income (loss) |
14.7 | % | -5.8 | % | -0.2 | % | 1.4 | % | 1.6 | % | -16.2 | % | -1.8 | % | -2.4 | % | 0.8 | % | -1.0 | % | -4.6 | % | ||||||||||||||||||||||
Interest and other, net |
0.5 | % | 0.5 | % | 0.0 | % | 0.0 | % | -3.3 | % | -0.3 | % | 0.4 | % | -0.6 | % | -0.3 | % | -0.6 | % | -0.2 | % | ||||||||||||||||||||||
Income (loss) from continuing operations, pre-tax |
15.3 | % | -5.3 | % | -0.1 | % | 1.4 | % | -1.7 | % | -16.5 | % | -1.4 | % | -2.9 | % | 0.5 | % | -1.6 | % | -4.8 | % | ||||||||||||||||||||||
Provision for (benefit from) income taxes |
5.1 | % | -1.8 | % | 0.0 | % | -14.4 | % | -1.1 | % | -5.7 | % | -0.4 | % | -0.8 | % | 0.2 | % | -4.2 | % | -1.6 | % | ||||||||||||||||||||||
Loss in equity interests, net |
-0.1 | % | -0.5 | % | -0.5 | % | -0.5 | % | -0.4 | % | -0.4 | % | -0.4 | % | -0.4 | % | -0.1 | % | -0.5 | % | -0.3 | % | ||||||||||||||||||||||
Income (loss) from continuing operations |
10.0 | % | -4.1 | % | -0.6 | % | 15.3 | % | -1.0 | % | -11.2 | % | -1.4 | % | -2.5 | % | 0.2 | % | 2.1 | % | -3.5 | % | ||||||||||||||||||||||
(Loss) income from disc. operations, net of tax |
-0.2 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||||||
Net income (loss) |
9.8 | % | -4.1 | % | -0.6 | % | 15.3 | % | -1.0 | % | -11.2 | % | -1.4 | % | -2.5 | % | 0.2 | % | 2.1 | % | -3.5 | % | ||||||||||||||||||||||
11
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 2008 | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | 12M 2009 | 12M 2010 | |||||||||||||||||||||||||||||||||
Proforma revenue (1) |
$ | 292,885 | $ | 255,397 | $ | 223,782 | $ | 215,085 | $ | 213,149 | $ | 215,305 | $ | 214,917 | $ | 230,630 | $ | 258,334 | $ | 907,413 | $ | 919,186 | ||||||||||||||||||||||
Deferred revenue related to acquisitions |
2,213 | 994 | 725 | 552 | | | | 1,788 | 3,265 | 2,271 | 5,053 | |||||||||||||||||||||||||||||||||
Revenue |
$ | 290,672 | $ | 254,403 | $ | 223,057 | $ | 214,533 | $ | 213,149 | $ | 215,305 | $ | 214,917 | $ | 228,842 | $ | 255,069 | $ | 905,142 | $ | 914,133 | ||||||||||||||||||||||
OIBDA (1) |
$ | 68,454 | $ | 15,542 | $ | 27,579 | $ | 30,452 | $ | 30,791 | $ | (8,003 | ) | $ | 22,689 | $ | 24,627 | $ | 32,953 | $ | 104,364 | $ | 72,266 | |||||||||||||||||||||
Depreciation expense |
14,761 | 13,769 | 14,479 | 15,230 | 15,639 | 14,521 | 13,782 | 13,975 | 14,204 | 59,117 | 56,482 | |||||||||||||||||||||||||||||||||
Amortization of restricted stock units and awards |
7,046 | 10,149 | 9,816 | 9,924 | 9,417 | 10,124 | 10,744 | 13,398 | 12,380 | 39,306 | 46,646 | |||||||||||||||||||||||||||||||||
Amortization of stock options |
178 | 199 | 104 | 157 | 155 | 143 | 133 | 135 | 134 | 615 | 545 | |||||||||||||||||||||||||||||||||
Restructuring non-cash write-offs |
924 | 3,668 | 1,053 | | | | | | | 4,721 | | |||||||||||||||||||||||||||||||||
Amortization of intangibles |
2,756 | 2,551 | 2,466 | 2,189 | 2,210 | 2,083 | 1,910 | 2,507 | 4,114 | 9,416 | 10,614 | |||||||||||||||||||||||||||||||||
Operating income (loss) |
$ | 42,789 | $ | (14,794 | ) | $ | (339 | ) | $ | 2,952 | $ | 3,370 | $ | (34,874 | ) | $ | (3,880 | ) | $ | (5,388 | ) | $ | 2,121 | $ | (8,811 | ) | $ | (42,021 | ) | |||||||||||||||
Proforma operating income (loss) (1) |
$ | 41,476 | $ | 228 | $ | 7,728 | $ | 3,894 | $ | (51 | ) | $ | (24,143 | ) | $ | 1,849 | $ | 5,551 | $ | 11,936 | $ | 11,799 | $ | (4,807 | ) | |||||||||||||||||||
Reversal of legal settlements, net |
| | | (6,850 | ) | | | | | | (6,850 | ) | | |||||||||||||||||||||||||||||||
Stock option investigation |
(6,682 | ) | 3,020 | 2,245 | (474 | ) | (8,037 | ) | | | | | (3,246 | ) | | |||||||||||||||||||||||||||||
Non-Gaap severance |
| | | 5,907 | 2,866 | 6,360 | 494 | 546 | 456 | 8,773 | 7,856 | |||||||||||||||||||||||||||||||||
Non-Gaap facilities |
| | | 1,807 | 1,750 | | | | | 3,557 | | |||||||||||||||||||||||||||||||||
Non-Gaap Integration fees |
| | | | | 4,371 | 5,235 | 8,605 | 4,668 | | 22,879 | |||||||||||||||||||||||||||||||||
Non-Gaap Integration fees Salary |
| | | | | | | | 1,426 | | 1,426 | |||||||||||||||||||||||||||||||||
Deferred revenue related to acquisitions |
2,213 | 994 | 725 | 552 | | | | 1,788 | 3,265 | 2,271 | 5,053 | |||||||||||||||||||||||||||||||||
Restructuring program non-cash write-offs |
924 | 3,668 | 1,053 | | | | | | | 4,721 | | |||||||||||||||||||||||||||||||||
Restructuring expenses, less non-cash items |
2,232 | 7,340 | 4,044 | | | | | | | 11,384 | | |||||||||||||||||||||||||||||||||
Operating income (loss) |
$ | 42,789 | $ | (14,794 | ) | $ | (339 | ) | $ | 2,952 | $ | 3,370 | $ | (34,874 | ) | $ | (3,880 | ) | $ | (5,388 | ) | $ | 2,121 | $ | (8,811 | ) | $ | (42,021 | ) | |||||||||||||||
(1) | - See notes to financial supplement for further explanation of non-GAAP measures. |
12