Attached files

file filename
8-K - FORM 8-K - MONSTER WORLDWIDE, INC.c16133e8vk.htm
EX-99.1 - EXHIBIT 99.1 - MONSTER WORLDWIDE, INC.c16133exv99w1.htm
Exhibit 99.2
(MONSTER WORLDWIDE LOGO)
FINANCIAL SUPPLEMENT
March 31, 2011
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 America online recruitment market. The results of operations attributable to the HotJobs Assets have been included in our consolidated financial statements since August 24, 2010.
In the three months ended March 31, 2011 and 2010, the Company incurred $4.6 million and $4.4 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 salaries and related expenses in the consolidated statement of operations. These costs primarily relate to professional fees and other integration costs associated with the acquisition. We do not expect to continue to incur significant integration-related costs in future periods 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. As of March 31, 2011 the fair value write-down has been completed. For the three months ended March 31, 2011, the fair value adjustment to deferred revenue was $2.7 million.
Severance Charges
For the three months ended March 31, 2011 and 2010, the Company incurred $0.4 million and $6.4 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.
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 previously 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. As part of the settlement agreement, 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. Additionally, 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. In the quarter ended March 31, 2011, the Company received $1.1 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, which is reflected in interest and other, net in the consolidated statements of operations for the quarter ended March 31, 2011. In the quarter ended March 31, 2010, the Company received $0.2 million relating to the redemption of separate auction rate bonds held by a broker.

 

2


 

Facility Charges
For the three months ended March 31, 2011, the Company incurred $3.0 million of charges related to changes in sublet assumptions on previously exited facilities.
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 (loss), operating margin, net income or loss and diluted earnings (loss) per share all exclude certain pro forma adjustments including: reversal of legal settlements, net; net costs associated with the Company’s historical option grant practices, severance and facility charges primarily related to the product and technology global reorganization and changes in sublet assumptions on previously exited facilities; transaction costs related to the acquisition of the HotJobs Assets; 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; 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.
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.

 

3


 

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

 

4


 

Monster Worldwide, Inc.
Consolidated Statements of Operations
(unaudited, in thousands, except per share amounts)
                                                                         
    Trended Quarterly Data
Summary P&L Information   Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010     Q3 2010     Q4 2010     Q1 2011  
 
                                                                       
Monster Careers
  $ 222,849     $ 190,397     $ 179,941     $ 179,409     $ 182,582     $ 183,808     $ 193,912     $ 222,689     $ 228,292  
Internet Advertising & Fees
    31,554       32,660       34,592       33,740       32,723       31,109       34,930       32,380       33,090  
 
                                                     
Revenue
    254,403       223,057       214,533       213,149       215,305       214,917       228,842       255,069       261,382  
 
                                                                       
Salary and related
    112,037       103,564       102,752       105,475       118,183       104,089       105,764       115,564       122,481  
Office and general
    45,793       42,917       42,422       31,623       45,544       41,214       46,790       42,153       48,169  
Marketing and promotion
    73,691       44,953       45,757       45,260       59,581       46,925       51,661       64,399       57,698  
Reversal of legal settlements, net
                (6,850 )                                    
Restructuring and other special charges
    11,008       5,097                                            
Depreciation expense
    13,769       14,479       15,230       15,639       14,521       13,782       13,975       14,204       14,373  
Amortization of restricted stock and RSU Plan
    10,149       9,816       9,924       9,417       10,124       10,744       13,398       12,380       13,028  
Non-cash stock option expense
    199       104       157       155       143       133       135       134       152  
Amortization of intangibles
    2,551       2,466       2,189       2,210       2,083       1,910       2,507       4,114       4,028  
 
                                                     
Operating expenses
    269,197       223,396       211,581       209,779       250,179       218,797       234,230       252,948       259,929  
 
                                                                       
Operating (loss) income
    (14,794 )     (339 )     2,952       3,370       (34,874 )     (3,880 )     (5,388 )     2,121       1,453  
Interest and other, net
    1,203       76       (48 )     (7,059 )     (653 )     901       (1,286 )     (835 )     (441 )
 
                                                     
(Loss) income before income taxes and loss in equity interests
    (13,591 )     (263 )     2,904       (3,689 )     (35,527 )     (2,979 )     (6,674 )     1,286       1,012  
 
                                                                       
(Benefit from) provision for income taxes
    (4,489 )     (83 )     (30,891 )     (2,420 )     (12,179 )     (829 )     (1,823 )     426       356  
Loss in equity interests, net
    (1,239 )     (1,190 )     (1,044 )     (844 )     (831 )     (807 )     (873 )     (359 )     (578 )
 
                                                     
 
                                                                       
Net (loss) income
  $ (10,341 )   $ (1,370 )   $ 32,751     $ (2,113 )   $ (24,179 )   $ (2,957 )   $ (5,724 )   $ 501     $ 78  
 
                                                     
 
                                                                       
Basic (loss) income per share:
  $ (0.09 )   $ (0.01 )   $ 0.27     $ (0.02 )   $ (0.20 )   $ (0.02 )   $ (0.05 )   $     $  
 
                                                     
 
                                                                       
Diluted (loss) income per share:
  $ (0.09 )   $ (0.01 )   $ 0.27     $ (0.02 )   $ (0.20 )   $ (0.02 )   $ (0.05 )   $     $  
 
                                                     
 
                                                                       
Weighted avg. shares outstanding:
                                                                       
Basic shares
    118,855       119,274       119,473       119,575       120,032       120,701       120,796       120,892       121,425  
Diluted shares
    118,855       119,274       121,676       119,575       120,032       120,701       120,796       124,525       124,636  
 
                                                                       
Global employees (ones)
    6,295       5,999       5,779       5,687       5,518       5,546       5,792       5,847       5,909  
Annualized revenue per average employee
  $ 153.5     $ 145.1     $ 145.7     $ 148.7     $ 153.7     $ 155.4     $ 161.5     $ 175.3     $ 177.9  
 
                                                                       
Net Bookings
    186,899       175,468       185,920       258,620       219,054       208,202       235,025       330,157       272,472  

 

5


 

Monster Worldwide, Inc.
Consolidated Statements of Cash Flows
(unaudited, in thousands)
                                                                         
    Trended Quarterly Data
    Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010     Q3 2010     Q4 2010     Q1 2011  
Cash flows provided by (used for) operating activities:
                                                                       
Net (loss) income
  $ (10,341 )   $ (1,370 )   $ 32,751     $ (2,113 )   $ (24,179 )   $ (2,957 )   $ (5,724 )   $ 501     $ 78  
 
                                                     
Adjustments to reconcile net (loss) income to cash provided by (used for) operating activities:
                                                                       
Depreciation and amortization
    16,320       16,945       17,419       17,849       16,604       15,692       16,482       18,318       18,401  
Reversal of legal settlements, net
                (6,850 )                                    
Provision for doubtful accounts
    4,072       2,812       1,682       1,588       1,149       398       489       911       370  
Non-cash compensation
    10,348       9,920       10,081       9,572       10,267       10,877       13,533       12,514       13,180  
Deferred income taxes
    (2,488 )     (3,933 )     12,160       (4,550 )     (14,713 )     (2,872 )     (8,509 )     (1,796 )     (3,984 )
Non-cash restructuring write-offs, accelerated amortization, and other
    3,690       1,051       3       35             144       19       92        
Loss in equity interests, net
    1,239       1,190       1,044       844       831       807       873       359       578  
Losses (gains) on auction rate securities
                      4,181       (200 )     (1,904 )     (311 )           (1,120 )
Changes in assets and liabilities, net of purchase transactions:
                                                                       
Accounts receivable
    72,347       47,892       7,284       (47,061 )     17,631       16,930       (21,282 )     (66,834 )     12,416  
Prepaid and other
    3,246       13,615       (16,005 )     (3,525 )     1,589       (2,201 )     720       (16,598 )     (6,718 )
Deferred revenue
    (63,383 )     (61,153 )     (28,152 )     41,054       4,668       (19,725 )     12,471       65,074       14,926  
Accounts payable, accrued expenses and other liabilities
    (21,237 )     (40,657 )     (19,574 )     14,883       22,569       (8,491 )     9,849       19,007       1,293  
Net cash (used for) provided by operating activities of discontinued operations
    (77 )     77                                            
 
                                                     
Total adjustments
    24,077       (12,241 )     (20,908 )     34,870       60,395       9,655       24,334       31,047       49,342  
 
                                                     
Net cash provided by (used for) operating activities
    13,736       (13,611 )     11,843       32,757       36,216       6,698       18,610       31,548       49,420  
 
                                                     
 
                                                                       
Cash flows (used for) provided by investing activities:
                                                                       
Capital expenditures
    (14,922 )     (11,457 )     (12,285 )     (10,013 )     (8,536 )     (11,939 )     (16,181 )     (20,470 )     (16,457 )
Purchase of marketable securities
    (992 )     (6,484 )           (1,109 )                              
Sale and maturities of marketable securities and other
    1,425       1,892             67,660       3,414       11,120       8,461       4,094       1,120  
Payments for acquisitions and intangible assets, net of cash acquired
                (300 )                       (225,000 )     (795 )      
Dividends received from unconsolidated investee
          763                   220                         443  
Cash funded to equity investee
    (1,428 )     (1,886 )     (1,639 )     (1,346 )     (1,345 )     (1,555 )     (1,524 )     (1,224 )     (1,007 )
 
                                                     
Net cash (used for) provided by investing activities
    (15,917 )     (17,172 )     (14,224 )     55,192       (6,247 )     (2,374 )     (234,244 )     (18,395 )     (15,901 )
 
                                                     
 
                                                                       
Cash flows provided by (used for) financing activities:
                                                                       
Proceeds from borrowings on credit facilities short-term
    199,203                                     90,000              
Payments on borrowings on credit facilities short-term
          (157,173 )     (99,023 )                       (5,000 )     (10,500 )     (4,500 )
Repurchase of common stock and tax withholdings on net share settlement of restricted stock awards and units
    (1,907 )     (528 )     (1,869 )     (267 )     (6,359 )     (2,856 )     (589 )     (4,423 )     (7,096 )
Net borrowings (payments) under capital lease obligations and other debt
    (5 )     (1 )     50,006                                      
Proceeds from the exercise of employee stock options
    9             46       12       27       39             234       23  
Excess tax benefits from equity compensation plans
    4             8       67                                
 
                                                     
Net cash provided by (used for) financing activities
    197,304       (157,702 )     (50,832 )     (188 )     (6,332 )     (2,817 )     84,411       (14,689 )     (11,573 )
 
                                                     
 
                                                                       
Effects of exchange rates on cash
    (6,327 )     13,681       4,438       209       (7,932 )     (3,930 )     9,207       (2,008 )     5,887  
 
                                                                       
Net increase (decrease) in cash and cash equivalents
    188,796       (174,804 )     (48,775 )     87,970       15,705       (2,423 )     (122,016 )     (3,544 )     27,833  
Cash and cash equivalents, beginning of period
    222,260       411,056       236,252       187,477       275,447       291,152       288,729       166,713       163,169  
 
                                                     
Cash and cash equivalents, end of period
  $ 411,056     $ 236,252     $ 187,477     $ 275,447     $ 291,152     $ 288,729     $ 166,713     $ 163,169     $ 191,002  
 
                                                     
 
                                                                       
Non — GAAP Free cash flow (1):
                                                                       
Net cash provided by (used for) operating activities
  $ 13,736     $ (13,611 )   $ 11,843     $ 32,757     $ 36,216     $ 6,698     $ 18,610     $ 31,548     $ 49,420  
Less: Capital expenditures
    (14,922 )     (11,457 )     (12,285 )     (10,013 )     (8,536 )     (11,939 )     (16,181 )     (20,470 )     (16,457 )
 
                                                     
Free cash flow
  $ (1,186 )   $ (25,068 )   $ (442 )   $ 22,744     $ 27,680     $ (5,241 )   $ 2,429     $ 11,078     $ 32,963  
 
                                                     
     
(1)  
— See notes to financial supplement for further explanation of non-GAAP measures.

 

6


 

Monster Worldwide, Inc.
Consolidated Condensed Balance Sheets
(unaudited, in thousands, except selected financial ratios)
                                                                         
    Trended Quarterly Data
    Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010     Q3 2010     Q4 2010     Q1 2011  
ASSETS
                                                                       
Current assets:
                                                                       
Cash and cash equivalents
  $ 411,056     $ 236,252     $ 187,477     $ 275,447     $ 291,152     $ 288,729     $ 166,713     $ 163,169     $ 191,002  
Marketable securities, current
    992       14,533       20,482       9,259       8,150       8,300                    
Accounts Receivable, net
    294,449       249,004       243,033       287,698       263,589       242,199       282,274       346,751       340,307  
Prepaid and other
    82,710       73,866       87,058       73,089       70,229       68,487       66,301       75,451       84,600  
 
                                                     
Total current assets
    789,207       573,655       538,050       645,493       633,120       607,715       515,288       585,371       615,909  
 
                                                     
 
                                                                       
Marketable securities, non-current
    89,196       81,272       75,953       15,410       13,110       4,094       4,094              
Property and equipment, net
    154,559       153,942       150,963       143,727       136,487       136,821       143,973       150,147       154,900  
Goodwill
    886,970       897,561       930,231       925,758       917,187       892,008       1,123,834       1,122,951       1,151,182  
Intangibles, net
    49,533       47,420       45,893       43,863       41,173       39,029       70,067       66,184       62,474  
Investment in unconsolidated affiliates
    1,315       517       525       546       330       640       745       1,359       919  
Other assets
    33,314       35,100       32,617       52,393       50,884       52,411       52,108       51,990       51,061  
 
                                                     
Total assets
  $ 2,004,094     $ 1,789,467     $ 1,774,232     $ 1,827,190     $ 1,792,291     $ 1,732,718     $ 1,910,109     $ 1,978,002     $ 2,036,445  
 
                                                     
 
                                                                       
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                                                       
 
                                                                       
Current liabilities:
                                                                       
Accounts payable, accrued expenses and other
  $ 225,630     $ 192,266     $ 204,402     $ 196,248     $ 217,671     $ 203,227     $ 213,562     $ 225,876     $ 232,701  
Deferred revenue
    344,905       289,818       265,573       305,898       304,993       279,809       312,952       376,448       399,105  
Borrowings on credit facility short-term
    254,174       97,000                               90,000       79,500       75,000  
Current portion of long-term debt
    27       23       5,017       5,010       5,003       5,000       5,000       5,000       5,000  
 
                                                     
Total current liabilities
    824,736       579,107       474,992       507,156       527,667       488,036       621,514       686,824       711,806  
 
                                                     
 
                                                                       
Long-term income taxes payable
    123,385       125,991       82,963       87,343       89,101       90,813       95,464       95,390       96,922  
Long-term debt, less current portion
                45,000       45,000       45,000       45,000       40,000       40,000       40,000  
Other liabilities
    29,838       30,971       36,394       54,527       38,288       38,325       27,398       27,138       20,603  
 
                                                     
Total liabilities
    977,959       736,069       639,349       694,026       700,056       662,174       784,376       849,352       869,331  
 
                                                     
 
                                                                       
Common stock and class B common stock
    134       134       134       134       135       135       136       136       137  
Additional paid-in capital
    1,374,049       1,382,649       1,388,609       1,395,970       1,394,915       1,404,043       1,416,547       1,424,815       1,427,804  
Accumulated other comprehensive income
    8,327       28,360       71,133       64,167       48,470       20,608       69,016       63,165       98,561  
Accumulated deficit
    (356,375 )     (357,745 )     (324,993 )     (327,107 )     (351,285 )     (354,242 )     (359,966 )     (359,466 )     (359,388 )
 
                                                     
Total stockholders’ equity
    1,026,135       1,053,398       1,134,883       1,133,164       1,092,235       1,070,544       1,125,733       1,128,650       1,167,114  
 
                                                     
 
                                                                       
Total liabilities and stockholders’ equity
  $ 2,004,094     $ 1,789,467     $ 1,774,232     $ 1,827,190     $ 1,792,291     $ 1,732,718     $ 1,910,109     $ 1,978,002     $ 2,036,445  
 
                                                     
 
                                                                       
Selected Financial Ratios(1)
                                                                       
- Annualized return on equity
    -4.0 %     -0.5 %     12.0 %     -0.7 %     -8.7 %     -1.1 %     -2.1 %     0.2 %     0.0 %
- Book value per share
  $ 8.61     $ 8.83     $ 9.49     $ 9.47     $ 9.05     $ 8.87     $ 9.32     $ 9.32     $ 9.56  
- Cash and marketable securities per share
  $ 4.20     $ 2.78     $ 2.37     $ 2.51     $ 2.59     $ 2.49     $ 1.41     $ 1.35     $ 1.57  
- Net cash and securities
  $ 247,038     $ 235,034     $ 233,895     $ 250,106     $ 262,409     $ 251,123     $ 35,807     $ 38,669     $ 71,002  
     
(1)  
— See notes to financial supplement for definitions and calculations of selected financial ratios.

 

7


 

Monster Worldwide, Inc.
Segment Information and Margin Analysis — Non-GAAP
(unaudited, in thousands)
                                                                         
    Trended Quarterly Data
    Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010     Q3 2010     Q4 2010     Q1 2011  
Segment OIBDA (1):
                                                                       
Careers — North America
  $ 12,272     $ 22,066     $ 16,902     $ 12,988     $ 5,671     $ 26,825     $ 29,734     $ 28,033     $ 29,981  
Careers — International
    10,749       8,386       8,154       9,024       (3,089 )     5,583       5,170       11,539       16,941  
 
                                                     
Careers OIBDA (1)
    23,021       30,452       25,056       22,012       2,582       32,408       34,904       39,572       46,922  
 
                                                                       
Internet Advertising & Fees OIBDA (1)
    6,364       7,939       8,247       7,573       4,764       4,056       5,673       4,346       5,313  
 
                                                     
 
                                                                       
Total Monster OIBDA (1)
  $ 29,385     $ 38,391     $ 33,303     $ 29,585     $ 7,346     $ 36,464     $ 40,577     $ 43,918     $ 52,235  
 
                                                     
 
                                                                       
Corporate expenses before D&A (1)
  $ (13,843 )   $ (10,812 )   $ (2,851 )   $ 1,206     $ (15,349 )   $ (13,775 )   $ (15,950 )   $ (10,965 )   $ (19,201 )
 
                                                     
 
                                                                       
Proforma operating income (loss) (1):
                                                                       
Careers — North America
  $ 3,100     $ 12,405     $ 9,519     $ 4,226     $ (491 )   $ 17,500     $ 20,744     $ 18,701     $ 19,874  
Careers — International
    7,413       1,983       782       297       (11,269 )     (3,989 )     (5,576 )     288       5,704  
 
                                                     
Careers Proforma operating income (loss) (1)
    10,513       14,388       10,301       4,523       (11,760 )     13,511       15,168       18,989       25,578  
 
                                                                       
Internet Advertising & Fees ProForma operating income (1)
    4,003       5,096       6,506       4,993       2,145       561       1,937       559       1,524  
 
                                                     
 
                                                                       
Total Monster Proforma income (loss) (1)
  $ 14,516     $ 19,484     $ 16,807     $ 9,516     $ (9,615 )   $ 14,072     $ 17,105     $ 19,548     $ 27,102  
 
                                                     
 
                                                                       
Corporate Proforma expenses (1)
  $ (14,288 )   $ (11,756 )   $ (12,913 )   $ (9,567 )   $ (14,528 )   $ (12,223 )   $ (11,554 )   $ (7,612 )   $ (14,984 )
 
                                                     
 
                                                                       
Segment operating income (loss) (1):
                                                                       
Careers — North America
  $ 828     $ 10,919     $ 6,057     $ 1,866     $ (3,772 )   $ 17,454     $ 18,773     $ 15,328     $ 16,989  
Careers — International
    (671 )     (2,019 )     (2,181 )     (1,412 )     (13,412 )     (4,536 )     (5,882 )     258       5,422  
 
                                                     
Careers operating income (loss)
    157       8,900       3,876       454       (17,184 )     12,918       12,891       15,586       22,411  
 
                                                                       
Internet Advertising & Fees operating income
    3,557       4,926       5,091       4,540       1,236       546       1,880       562       1,503  
 
                                                     
 
                                                                       
Total Monster operating income (loss)
  $ 3,714     $ 13,826     $ 8,967     $ 4,994     $ (15,948 )   $ 13,464     $ 14,771     $ 16,148     $ 23,914  
 
                                                     
 
                                                                       
Corporate expenses
  $ (18,508 )   $ (14,165 )   $ (6,015 )   $ (1,624 )   $ (18,926 )   $ (17,344 )   $ (20,159 )   $ (14,027 )   $ (22,461 )
 
                                                     
 
                                                                       
Margin Analysis:
                                                                       
 
                                                                       
Careers — North America OIBDA margin
    10.3 %     21.7 %     17.8 %     14.3 %     5.8 %     27.7 %     27.7 %     23.2 %     24.8 %
Careers — North America Proforma operating margin
    2.6 %     12.2 %     10.0 %     4.6 %     -0.5 %     18.1 %     19.0 %     15.0 %     16.1 %
Careers — North America operating margin
    0.7 %     10.7 %     6.4 %     2.1 %     -3.9 %     18.0 %     17.5 %     12.7 %     14.0 %
 
                                                                       
Careers — International OIBDA margin
    10.4 %     9.5 %     9.6 %     10.2 %     -3.6 %     6.4 %     6.0 %     11.4 %     15.8 %
Careers — International Proforma operating margin
    7.1 %     2.2 %     0.9 %     0.3 %     -13.2 %     -4.6 %     -6.4 %     0.3 %     5.3 %
Careers — International operating margin
    -0.6 %     -2.3 %     -2.6 %     -1.6 %     -15.7 %     -5.2 %     -6.8 %     0.3 %     5.1 %
 
                                                                       
Careers OIBDA margin
    10.3 %     16.0 %     13.9 %     12.3 %     1.4 %     17.6 %     18.0 %     17.8 %     20.6 %
Careers Proforma operating margin
    4.7 %     7.5 %     5.7 %     2.5 %     -6.4 %     7.4 %     7.8 %     8.4 %     11.1 %
Careers operating margin
    0.1 %     4.7 %     2.2 %     0.3 %     -9.4 %     7.0 %     6.6 %     7.0 %     9.8 %
 
                                                                       
Internet Advertising & Fees OIBDA margin
    20.2 %     24.3 %     23.8 %     22.4 %     14.6 %     13.0 %     16.2 %     13.4 %     16.1 %
Internet Advertising & Fees Proforma operating margin
    12.7 %     15.6 %     18.8 %     14.8 %     6.6 %     1.8 %     5.5 %     1.7 %     4.6 %
Internet Advertising & Fees operating margin
    11.3 %     15.1 %     14.7 %     13.5 %     3.8 %     1.8 %     5.4 %     1.7 %     4.5 %
     
(1)  
— See notes to financial supplement for further explanation of non-GAAP measures.

 

8


 

Monster Worldwide, Inc.
Consolidated Statements of Operations
(unaudited)
                                                                         
    Trended Quarterly Data
Summary P&L Information   Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010     Q3 2010     Q4 2010     Q1 2011  
 
                                                                       
Monster Careers
    87.6 %     85.4 %     83.9 %     84.2 %     84.8 %     85.5 %     84.7 %     87.3 %     87.3 %
Internet Advertising & Fees
    12.4 %     14.6 %     16.1 %     15.8 %     15.2 %     14.5 %     15.3 %     12.7 %     12.7 %
 
                                                     
Revenue
    100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %
 
                                                                       
Salary and related
    44.0 %     46.4 %     47.9 %     49.5 %     54.9 %     48.4 %     46.2 %     45.3 %     46.9 %
Office and general
    18.0 %     19.2 %     19.8 %     14.8 %     21.2 %     19.2 %     20.4 %     16.5 %     18.4 %
Marketing and promotion
    29.0 %     20.2 %     21.3 %     21.2 %     27.7 %     21.8 %     22.6 %     25.2 %     22.1 %
Reversal of legal settlements, net
    0.0 %     0.0 %     -3.2 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %
Restructuring and other special charges
    4.3 %     2.3 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %
Depreciation expense
    5.4 %     6.5 %     7.1 %     7.3 %     6.7 %     6.4 %     6.1 %     5.6 %     5.5 %
Amortization of restricted stock and RSU Plan
    4.0 %     4.4 %     4.6 %     4.4 %     4.7 %     5.0 %     5.9 %     4.9 %     5.0 %
Non-cash stock option expense
    0.1 %     0.0 %     0.1 %     0.1 %     0.1 %     0.1 %     0.1 %     0.1 %     0.1 %
Amortization of intangibles
    1.0 %     1.1 %     1.0 %     1.0 %     1.0 %     0.9 %     1.1 %     1.6 %     1.5 %
 
                                                     
Operating expenses
    105.8 %     100.2 %     98.6 %     98.4 %     116.2 %     101.8 %     102.4 %     99.2 %     99.4 %
 
                                                                       
Operating (loss) income
    -5.8 %     -0.2 %     1.4 %     1.6 %     -16.2 %     -1.8 %     -2.4 %     0.8 %     0.6 %
Interest and other, net
    0.5 %     0.0 %     0.0 %     -3.3 %     -0.3 %     0.4 %     -0.6 %     -0.3 %     -0.2 %
 
                                                     
(Loss) income before income taxes and loss in equity interests
    -5.3 %     -0.1 %     1.4 %     -1.7 %     -16.5 %     -1.4 %     -2.9 %     0.5 %     0.4 %
 
                                                                       
(Benefit from) provision for income taxes
    -1.8 %     0.0 %     -14.4 %     -1.1 %     -5.7 %     -0.4 %     -0.8 %     0.2 %     0.1 %
Loss in equity interests, net
    -0.5 %     -0.5 %     -0.5 %     -0.4 %     -0.4 %     -0.4 %     -0.4 %     -0.1 %     -0.2 %
 
                                                     
 
                                                                       
Net (loss) income
    -4.1 %     -0.6 %     15.3 %     -1.0 %     -11.2 %     -1.4 %     -2.5 %     0.2 %     0.0 %
 
                                                     

 

9


 

Monster Worldwide, Inc.
Consolidated Statements of Operations — Reconciliation of Non-GAAP Measures
(unaudited, in thousands)
                                                                         
    Trended Quarterly Data
Summary P&L Information   Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010     Q3 2010     Q4 2010     Q1 2011  
 
                                                                       
Proforma revenue (1)
  $ 255,397     $ 223,782     $ 215,085     $ 213,149     $ 215,305     $ 214,917     $ 230,630     $ 258,334     $ 264,040  
 
                                                                       
Deferred revenue related to acquisitions
    994       725       552                         1,788       3,265       2,658  
 
                                                     
 
                                                                       
Revenue
  $ 254,403     $ 223,057     $ 214,533     $ 213,149     $ 215,305     $ 214,917     $ 228,842     $ 255,069     $ 261,382  
 
                                                     
 
                                                                       
OIBDA (1)
  $ 15,542     $ 27,579     $ 30,452     $ 30,791     $ (8,003 )   $ 22,689     $ 24,627     $ 32,953     $ 33,034  
 
                                                                       
Depreciation expense
    13,769       14,479       15,230       15,639       14,521       13,782       13,975       14,204       14,373  
Amortization of restricted stock and RSU Plan
    10,149       9,816       9,924       9,417       10,124       10,744       13,398       12,380       13,028  
Non-cash stock option expense
    199       104       157       155       143       133       135       134       152  
Restructuring non-cash write-offs
    3,668       1,053                                            
Amortization of intangibles
    2,551       2,466       2,189       2,210       2,083       1,910       2,507       4,114       4,028  
 
                                                     
 
                                                                       
Operating (loss) income
  $ (14,794 )   $ (339 )   $ 2,952     $ 3,370     $ (34,874 )   $ (3,880 )   $ (5,388 )   $ 2,121     $ 1,453  
 
                                                     
 
                                                                       
Proforma operating income (loss) (1)
  $ 228     $ 7,728     $ 3,894     $ (51 )   $ (24,143 )   $ 1,849     $ 5,551     $ 11,936     $ 12,118  
 
                                                                       
Reversal of legal settlements, net
                (6,850 )                                    
Stock option investigation
    3,020       2,245       (474 )     (8,037 )                              
Non-Gaap severance
                5,907       2,866       6,360       494       546       456       362  
Non-Gaap facilities
                1,807       1,750                               2,998  
Non-Gaap Integration fees
                            4,371       5,235       8,605       4,668       3,831  
Non-Gaap Integration fees — Salary
                                              1,426       816  
Deferred revenue related to acquisitions
    994       725       552                         1,788       3,265       2,658  
Restructuring program non-cash write-offs
    3,668       1,053                                            
Restructuring expenses, less non-cash items
    7,340       4,044                                            
 
                                                     
 
                                                                       
Operating (loss) income
  $ (14,794 )   $ (339 )   $ 2,952     $ 3,370     $ (34,874 )   $ (3,880 )   $ (5,388 )   $ 2,121     $ 1,453  
 
                                                     
     
(1)  
— See notes to financial supplement for further explanation of non-GAAP measures.

 

10