Attached files

file filename
EX-99.1 - EXHIBIT 99.1 - MONSTER WORLDWIDE, INC.c11540exv99w1.htm
8-K - FORM 8-K - MONSTER WORLDWIDE, INC.c11540e8vk.htm
Exhibit 99.2
(MONSTER WORLDWIDE LOGO)
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 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
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 Company’s 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 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 year ended December 31, 2009, the fair value adjustment to ChinaHR’s 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, RBC’s 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 Company’s 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 Company’s 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 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. 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 Company’s historical stock option grant practices, related litigation and potential fines or settlements; severance costs for former executive officers incurred in the second quarter of 2007; costs related to the measures taken by the Company in response to a security breach in August 2007; the strategic restructuring actions initiated in the third quarter of 2007; severance and facility charges primarily related to the product and technology global reorganization; the fair value adjustment to deferred revenue in connection with the acquisition of ChinaHR 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 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.
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 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.

 

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 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.
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)
                                                                                         
    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)
                                                                         
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)
                                                                                         
    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):
                                                                                       
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)
                                                                         
    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)
                                                                                         
    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)
                                                                                         
    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)
                                                                                         
    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