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EX-99.1 - EXHIBIT 99.1 - MONSTER WORLDWIDE, INC.c20469exv99w1.htm
8-K - FORM 8-K - MONSTER WORLDWIDE, INC.c20469e8vk.htm
Exhibit 99.2
(MONSTER WORLDWIDE LOGO)
FINANCIAL SUPPLEMENT
June 30, 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 June 30, 2010, the Company incurred $5.2 million of acquisition-related costs. In the six months ended June 30, 2011 and June 30, 2010, the Company incurred $4.6 million and $9.6 million, respectively, of acquisition-related costs. These costs primarily relate to professional fees and other integration costs associated with the acquisition, which were expensed as incurred and are included in office and general expenses and salaries and related expenses in the consolidated statement of operations. The Company did not incur any acquisition-related costs in the second quarter of 2011 and does not expect to incur any acquisition- related costs in future periods.
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. In the first quarter of 2011, the final quarter in which this adjustment was recorded, the Company recorded a $2.7 million fair value adjustment.
Severance Charges
For the three months ended June 30, 2010, the Company incurred $0.5 million of severance costs relating to targeted headcount reductions. In the six months ended June 30, 2011 and June 30, 2010, the Company incurred $0.4 million and $6.9 million, respectively, of severance costs relating to targeted 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. The Company did not incur any severance charges relating to targeted headcount reductions in the second quarter of 2011.
Auction Rate Securities
In the three months ended June 30, 2010, the Company received at par value $9.8 million from issuer redemptions of auction rate securities, resulting in a $0.8 million benefit which was recorded in interest and other, net, in the consolidated statement of operations. In the six months ended June 30, 2010, the Company received at par value $12.3 million from 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.

 

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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 three months ended June 30, 2010, 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 as a benefit in interest and other, net, in the consolidated statements of operations. In the six months ended June 30, 2011 and June 30, 2010, the Company received $1.1 million and $1.1 million, respectively, 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 as a benefit in interest and other, net, in the consolidated statements of operations.
Facility Charges
In the first quarter of 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; the strategic restructuring actions initiated in the third quarter of 2007; 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; acquisition and integration-related 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.

 

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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.
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

 

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Monster Worldwide, Inc.
Statements of Operations
(unaudited, in thousands, except per share amounts)
                                                                 
    Trended Data  
Summary P&L Information   FY 2009     Q1 2010     Q2 2010     Q3 2010     Q4 2010     FY 2010     Q1 2011     Q2 2011  
 
                                                               
Monster Careers
  $ 772,596     $ 182,582     $ 183,808     $ 193,912     $ 222,689     $ 782,991     $ 228,292     $ 236,017  
Internet Advertising & Fees
    132,546       32,723       31,109       34,930       32,380       131,142       33,090       33,679  
 
                                               
Revenue
    905,142       215,305       214,917       228,842       255,069       914,133       261,382       269,696  
 
                                                               
Salary and related
    423,828       118,183       104,089       105,764       115,564       443,600       122,481       119,956  
Office and general
    162,755       45,544       41,214       46,790       42,153       175,701       48,169       42,918  
Marketing and promotion
    209,661       59,581       46,925       51,661       64,399       222,566       57,698       58,524  
Reversal of legal settlements, net
    (6,850 )                                          
Restructuring and other special charges
    16,105                                            
Depreciation expense
    59,117       14,521       13,782       13,975       14,204       56,482       14,373       15,052  
Amortization of restricted stock and RSU Plan
    39,306       10,124       10,744       13,398       12,380       46,646       13,028       12,161  
Non-cash stock option expense
    615       143       133       135       134       545       152       96  
Amortization of intangibles
    9,416       2,083       1,910       2,507       4,114       10,614       4,028       4,001  
 
                                               
Operating expenses
    913,953       250,179       218,797       234,230       252,948       956,154       259,929       252,708  
 
                                                               
Operating (loss) income
    (8,811 )     (34,874 )     (3,880 )     (5,388 )     2,121       (42,021 )     1,453       16,988  
Interest and other, net
    (5,828 )     (653 )     901       (1,286 )     (835 )     (1,873 )     (441 )     (511 )
 
                                               
(Loss) income before income taxes and equity interests
    (14,639 )     (35,527 )     (2,979 )     (6,674 )     1,286       (43,894 )     1,012       16,477  
 
                                                               
(Benefit from) provison for income taxes
    (37,883 )     (12,179 )     (829 )     (1,823 )     426       (14,405 )     356       5,441  
Loss in equity interests, net
    (4,317 )     (831 )     (807 )     (873 )     (359 )     (2,870 )     (578 )     (50 )
 
                                               
 
                                                               
Net income (loss)
  $ 18,927     $ (24,179 )   $ (2,957 )   $ (5,724 )   $ 501     $ (32,359 )   $ 78     $ 10,986  
 
                                               
 
                                                               
Basic income (loss) per share:
  $ 0.16     $ (0.20 )   $ (0.02 )   $ (0.05 )   $     $ (0.27 )   $     $ 0.09  
 
                                               
 
                                                               
Diluted income (loss) per share:
  $ 0.16     $ (0.20 )   $ (0.02 )   $ (0.05 )   $     $ (0.27 )   $     $ 0.09  
 
                                               
 
                                                               
Weighted avg. shares outstanding:
                                                               
Basic shares
    119,359       120,032       120,701       120,796       120,892       120,608       121,425       122,200  
Diluted shares
    121,170       120,032       120,701       120,796       124,525       120,608       124,636       124,386  
 
                                                               
Global employees (ones)
    5,687       5,518       5,546       5,792       5,847       5,847       5,909       6,042  
Annualized revenue per average employee
  $ 152.4     $ 153.7     $ 155.4     $ 161.5     $ 175.3     $ 161.1     $ 177.9     $ 180.5  
 
                                                               
Net Bookings
    806,907       219,054       208,202       235,025       330,157       992,438       272,472       262,338  

 

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Monster Worldwide, Inc.
Statements of Operations
(unaudited)
                                                                 
    Trended Data  
Summary P&L Information   FY 2009     Q1 2010     Q2 2010     Q3 2010     Q4 2010     FY 2010     Q1 2011     Q2 2011  
 
                                                               
Monster Careers
    85.4 %     84.8 %     85.5 %     84.7 %     87.3 %     85.7 %     87.3 %     87.5 %
Internet Advertising & Fees
    14.6 %     15.2 %     14.5 %     15.3 %     12.7 %     14.3 %     12.7 %     12.5 %
 
                                               
Revenue
    100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %
 
                                                               
Salary and related
    46.8 %     54.9 %     48.4 %     46.2 %     45.3 %     48.5 %     46.9 %     44.5 %
Office and general
    18.0 %     21.2 %     19.2 %     20.4 %     16.5 %     19.2 %     18.4 %     15.9 %
Marketing and promotion
    23.2 %     27.7 %     21.8 %     22.6 %     25.2 %     24.3 %     22.1 %     21.7 %
Reversal of legal settlements, net
    -0.8 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %
Restructuring and other special charges
    1.8 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %
Depreciation expense
    6.5 %     6.7 %     6.4 %     6.1 %     5.6 %     6.2 %     5.5 %     5.6 %
Amortization of restricted stock and RSU Plan
    4.3 %     4.7 %     5.0 %     5.9 %     4.9 %     5.1 %     5.0 %     4.5 %
Non-cash stock option expense
    0.1 %     0.1 %     0.1 %     0.1 %     0.1 %     0.1 %     0.1 %     0.0 %
Amortization of intangibles
    1.0 %     1.0 %     0.9 %     1.1 %     1.6 %     1.2 %     1.5 %     1.5 %
 
                                               
Operating expenses
    101.0 %     116.2 %     101.8 %     102.4 %     99.2 %     104.6 %     99.4 %     93.7 %
 
                                                               
Operating (loss) income
    -1.0 %     -16.2 %     -1.8 %     -2.4 %     0.8 %     -4.6 %     0.6 %     6.3 %
Interest and other, net
    -0.6 %     -0.3 %     0.4 %     -0.6 %     -0.3 %     -0.2 %     -0.2 %     -0.2 %
 
                                               
(Loss) income from operations
    -1.6 %     -16.5 %     -1.4 %     -2.9 %     0.5 %     -4.8 %     0.4 %     6.1 %
 
                                                               
(Benefit from) provision for income taxes
    -4.2 %     -5.7 %     -0.4 %     -0.8 %     0.2 %     -1.6 %     0.1 %     2.0 %
Losses in equity interests, net
    -0.5 %     -0.4 %     -0.4 %     -0.4 %     -0.1 %     -0.3 %     -0.2 %     0.0 %
 
                                               
 
                                                               
Net income (loss)
    2.1 %     -11.2 %     -1.4 %     -2.5 %     0.2 %     -3.5 %     0.0 %     4.1 %
 
                                               

 

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Monster Worldwide, Inc.
Segment Information and Margin Analysis — GAAP and Non-GAAP
(unaudited, in thousands)
                                                                 
    Trended Data  
    FY 2009     Q1 2010     Q2 2010     Q3 2010     Q4 2010     FY 2010     Q1 2011     Q2 2011  
 
                                                               
Segment revenue: GAAP
                                                               
Careers — North America
  $ 407,118     $ 96,957     $ 96,948     $ 107,229     $ 121,059     $ 422,193     $ 121,032     $ 122,565  
Careers — International
    365,478       85,625       86,860       86,683       101,630       360,798       107,260       113,452  
 
                                               
Careers revenue — GAAP
    772,596       182,582       183,808       193,912       222,689       782,991       228,292       236,017  
 
                                                               
Internet Advertising & Fees revenue — GAAP
    132,546       32,723       31,109       34,930       32,380       131,142       33,090       33,679  
 
                                               
 
                                                               
Total Monster consolidated revenue — GAAP
  $ 905,142     $ 215,305     $ 214,917     $ 228,842     $ 255,069     $ 914,133     $ 261,382     $ 269,696  
 
                                               
 
                                                               
Segment revenue (1): Non-GAAP
                                                               
Careers — North America
  $ 407,118     $ 96,957     $ 96,948     $ 109,017     $ 124,324     $ 427,246     $ 123,690     $ 122,565  
Careers — International
    367,749       85,625       86,860       86,683       101,630       360,798       107,260       113,452  
 
                                               
Careers revenue Non-GAAP
    774,867       182,582       183,808       195,700       225,954       788,044       230,950       236,017  
 
                                                               
Internet Advertising & Fees revenue Non-GAAP
    132,546       32,723       31,109       34,930       32,380       131,142       33,090       33,679  
 
                                               
 
                                                               
Total Monster consolidated revenue Non-GAAP
  $ 907,413     $ 215,305     $ 214,917     $ 230,630     $ 258,334     $ 919,186     $ 264,040     $ 269,696  
 
                                               
 
                                                               
Segment operating income (loss): GAAP
                                                               
Careers — North America
  $ 19,670     $ (3,772 )   $ 17,454     $ 18,773     $ 15,328     $ 47,783     $ 16,989     $ 16,002  
Careers — International
    (6,283 )     (13,412 )     (4,536 )     (5,882 )     258       (23,572 )     5,422       10,257  
 
                                               
Careers operating income (loss) GAAP
    13,387       (17,184 )     12,918       12,891       15,586       24,211       22,411       26,259  
 
                                                               
Internet Advertising & Fees operating income GAAP
    18,114       1,236       546       1,880       562       4,224       1,503       1,862  
 
                                               
 
                                                               
Corporate expenses GAAP
    (40,312 )     (18,926 )     (17,344 )     (20,159 )     (14,027 )     (70,456 )     (22,461 )     (11,133 )
 
                                               
 
                                                               
Total Monster consolidated operating (loss) income GAAP
  $ (8,811 )   $ (34,874 )   $ (3,880 )   $ (5,388 )   $ 2,121     $ (42,021 )   $ 1,453     $ 16,988  
 
                                               
 
                                                               
Segment operating income (loss)(1): Non-GAAP
                                                               
Careers — North America
  $ 29,250     $ (491 )   $ 17,500     $ 20,744     $ 18,701     $ 56,454     $ 19,874     $ 16,002  
Careers — International
    10,475       (11,269 )     (3,989 )     (5,576 )     288       (20,546 )     5,704       10,257  
 
                                               
Careers operating income (loss) Non-GAAP
    39,725       (11,760 )     13,511       15,168       18,989       35,908       25,578       26,259  
 
                                                               
Internet Advertising & Fees operating income Non-GAAP
    20,598       2,145       561       1,937       559       5,202       1,524       1,862  
 
                                               
 
                                                               
Corporate expenses Non-GAAP
    (48,524 )     (14,528 )     (12,223 )     (11,554 )     (7,612 )     (45,917 )     (14,984 )     (11,133 )
 
                                               
 
                                                               
Total Monster consolidated operating income (loss) Non-GAAP
  $ 11,799     $ (24,143 )   $ 1,849     $ 5,551     $ 11,936     $ (4,807 )   $ 12,118     $ 16,988  
 
                                               
     
(1)  
See notes to financial supplement for further explanation of non-GAAP measures.

 

7


 

Monster Worldwide, Inc.
Statements of Operations — Reconciliation of Non-GAAP Measures
(unaudited, in thousands, except per share amounts)
                                                                 
    Trended Data  
Summary P&L Information   FY 2009     Q1 2010     Q2 2010     Q3 2010     Q4 2010     FY 2010     Q1 2011     Q2 2011  
 
                                                               
Non GAAP revenue (1)
  $ 907,413     $ 215,305     $ 214,917     $ 230,630     $ 258,334     $ 919,186     $ 264,040     $ 269,696  
 
                                                               
Deferred revenue related to acquisitions
    2,271                   1,788       3,265       5,053       2,658        
 
                                               
 
                                                               
Revenue — GAAP
  $ 905,142     $ 215,305     $ 214,917     $ 228,842     $ 255,069     $ 914,133     $ 261,382     $ 269,696  
 
                                               
 
                                                               
OIBDA — GAAP (1)
  $ 104,364     $ (8,003 )   $ 22,689     $ 24,627     $ 32,953     $ 72,266     $ 33,034     $ 48,298  
 
                                                               
Depreciation expense
    59,117       14,521       13,782       13,975       14,204       56,482       14,373       15,052  
Amortization of restricted stock and RSU Plan
    39,306       10,124       10,744       13,398       12,380       46,646       13,028       12,161  
Non-cash stock option expense
    615       143       133       135       134       545       152       96  
Restructuring non-cash write-offs
    4,721                                            
Amortization of intangibles
    9,416       2,083       1,910       2,507       4,114       10,614       4,028       4,001  
 
                                               
 
                                                               
Operating (loss) income — GAAP
  $ (8,811 )   $ (34,874 )   $ (3,880 )   $ (5,388 )   $ 2,121     $ (42,021 )   $ 1,453     $ 16,988  
 
                                               
 
                                                               
Reversal of legal settlements, net
    (6,850 )                                          
Stock option investigation
    (3,246 )                                          
Non-Gaap severance
    8,773       6,360       494       546       456       7,856       362        
Non-Gaap facilities
    3,557                                     2,998        
Non-Gaap Integration fees
          4,371       5,235       8,605       4,668       22,879       3,831        
Non-Gaap Integration fees — Salary
                            1,426       1,426       816        
Deferred revenue related to acquisitions
    2,271                   1,788       3,265       5,053       2,658        
Restructuring program non-cash write-offs
    4,721                                            
Restructuring expenses, less non-cash items
    11,384                                            
 
                                               
Total Non GAAP Adjustments
    20,610       10,731       5,729       10,939       9,815       37,214       10,665        
 
                                                               
Operating income (loss) Non GAAP(1)
  $ 11,799     $ (24,143 )   $ 1,849     $ 5,551     $ 11,936     $ (4,807 )   $ 12,118     $ 16,988  
 
                                               
     
(1)  
See notes to financial supplement for further explanation of non-GAAP measures.

 

8


 

Monster Worldwide, Inc.
Statements of Cash Flows
(unaudited, in thousands, except per share amounts)
                                                                 
    Trended Data  
    FY 2009     Q1 2010     Q2 2010     Q3 2010     Q4 2010     FY 2010     Q1 2011     Q2 2011  
Cash flows provided by (used for) operating activities:
                                                               
Net income (loss)
  $ 18,927     $ (24,179 )   $ (2,957 )   $ (5,724 )   $ 501     $ (32,359 )   $ 78     $ 10,986  
 
                                               
Adjustments to reconcile net income (loss) to cash provided by operating activities:
                                                               
Depreciation and amortization
    68,533       16,604       15,692       16,482       18,318       67,096       18,401       19,053  
Reversal of legal settlements, net
    (6,850 )                                          
Provision for doubtful accounts
    10,154       1,149       398       489       911       2,947       370       1,067  
Non-cash compensation
    39,921       10,267       10,877       13,533       12,514       47,191       13,180       12,257  
Deferred income taxes
    1,189       (14,713 )     (2,872 )     (8,509 )     (1,796 )     (27,890 )     (3,984 )     (6,563 )
Non-cash restructuring write-offs, accelerated amortization, and other
    4,779             144       19       92       255              
Loss in equity interests, net
    4,317       831       807       873       359       2,870       578       50  
Losses (gains) on auction rate securities
    4,181       (200 )     (1,904 )     (311 )           (2,415 )     (1,120 )     (612 )
Changes in assets and liabilities, net of acquisitions:
                                                               
Accounts receivable
    80,462       17,631       16,930       (21,282 )     (66,834 )     (53,555 )     12,416       16,630  
Prepaid and other
    (2,669 )     1,589       (2,201 )     720       (16,598 )     (16,490 )     (6,718 )     2,015  
Deferred revenue
    (111,634 )     4,668       (19,725 )     12,471       65,074       62,488       14,926       (17,955 )
Accounts payable, accrued expenses and other liabilities
    (66,585 )     22,569       (8,491 )     9,849       19,007       42,934       1,293       (8,859 )
 
                                               
Total adjustments
    25,798       60,395       9,655       24,334       31,047       125,431       49,342       17,083  
 
                                               
Net cash provided by operating activities
    44,725       36,216       6,698       18,610       31,548       93,072       49,420       28,069  
 
                                               
 
                                                               
Cash flows provided by (used for) investing activities:
                                                               
Capital expenditures
    (48,677 )     (8,536 )     (11,939 )     (16,181 )     (20,470 )     (57,126 )     (16,457 )     (16,331 )
Purchase of marketable securities
    (8,585 )                                          
Sale and maturities of marketable securities and other
    70,977       3,414       11,120       8,461       4,094       27,089       1,120       612  
Payments for acquisitions and intangible assets, net of cash acquired
    (300 )                 (225,000 )     (795 )     (225,795 )            
Dividends received from unconsolidated investee
    763       220                         220       443        
Cash funded to equity investee
    (6,299 )     (1,345 )     (1,555 )     (1,524 )     (1,224 )     (5,648 )     (1,007 )     (808 )
 
                                               
Net cash provided by (used for) investing activities
    7,879       (6,247 )     (2,374 )     (234,244 )     (18,395 )     (261,260 )     (15,901 )     (16,527 )
 
                                               
 
                                                               
Cash flows (used for) provided by financing activities:
                                                               
Proceeds from borrowings on credit facilities short-term
    199,203                   90,000             90,000             2,126  
Payments on borrowings on credit facilities short-term
    (256,196 )                 (5,000 )     (10,500 )     (15,500 )     (4,500 )      
Tax withholdings related to net share settlements of restricted stock awards and units
    (4,571 )     (6,359 )     (2,856 )     (589 )     (4,423 )     (14,227 )     (7,096 )     (6,776 )
Net borrowings (payments) under capital lease obligations and other debt
    50,000                                            
Proceeds from the exercise of employee stock options
    67       27       39             234       300       23        
Excess tax benefits from equity compensation plans
    79                                            
 
                                               
Net cash (used for) provided by financing activities
    (11,418 )     (6,332 )     (2,817 )     84,411       (14,689 )     60,573       (11,573 )     (4,650 )
 
                                               
 
                                                               
Effects of exchange rates on cash
    12,001       (7,932 )     (3,930 )     9,207       (2,008 )     (4,663 )     5,887       1,140  
 
                                                               
Net increase (decrease) in cash and cash equivalents
    53,187       15,705       (2,423 )     (122,016 )     (3,544 )     (112,278 )     27,833       8,032  
Cash and cash equivalents, beginning of period
    222,260       275,447       291,152       288,729       166,713       275,447       163,169       191,002  
 
                                               
Cash and cash equivalents, end of period
  $ 275,447     $ 291,152     $ 288,729     $ 166,713     $ 163,169     $ 163,169     $ 191,002     $ 199,034  
 
                                               
 
                                                               
Non — GAAP Free cash flow (1):
                                                               
Net cash provided by operating activities
  $ 44,725     $ 36,216     $ 6,698     $ 18,610     $ 31,548     $ 93,072     $ 49,420     $ 28,069  
Less: Capital expenditures
    (48,677 )     (8,536 )     (11,939 )     (16,181 )     (20,470 )     (57,126 )     (16,457 )     (16,331 )
 
                                               
Free cash flow
  $ (3,952 )   $ 27,680     $ (5,241 )   $ 2,429     $ 11,078     $ 35,946     $ 32,963     $ 11,738  
 
                                               
     
(1)  
See notes to financial supplement for further explanation of non-GAAP measures.

 

9


 

Monster Worldwide, Inc.
Consolidated Condensed Balance Sheets
(unaudited, in thousands, except selected financial ratios)
                                                         
    Trended Data  
    Dec 2009     Mar 2010     Jun 2010     Sep 2010     Dec 2010     Mar 2011     Jun 2011  
ASSETS
                                                       
Current assets:
                                                       
Cash and cash equivalents
  $ 275,447     $ 291,152     $ 288,729     $ 166,713     $ 163,169     $ 191,002     $ 199,034  
Marketable securities, current
    9,259       8,150       8,300                          
Accounts Receivable, net
    287,698       263,589       242,199       282,274       346,751       340,307       323,726  
Prepaid and other
    73,089       70,229       68,487       66,301       75,451       84,600       84,744  
 
                                         
Total current assets
    645,493       633,120       607,715       515,288       585,371       615,909       607,504  
 
                                         
 
                                                       
Marketable securities, non-current
    15,410       13,110       4,094       4,094                    
Property and equipment, net
    143,727       136,487       136,821       143,973       150,147       154,900       158,178  
Goodwill
    925,758       917,187       892,008       1,123,834       1,122,951       1,151,182       1,157,724  
Intangibles, net
    43,863       41,173       39,029       70,067       66,184       62,474       58,788  
Investment in unconsolidated affiliates
    546       330       640       745       1,359       919       1,545  
Other assets
    52,393       50,884       52,411       52,108       51,990       51,061       47,816  
 
                                         
Total assets
  $ 1,827,190     $ 1,792,291     $ 1,732,718     $ 1,910,109     $ 1,978,002     $ 2,036,445     $ 2,031,555  
 
                                         
 
                                                       
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                                       
 
                                                       
Current liabilities:
                                                       
Accounts payable, accrued expenses and other
  $ 196,248     $ 217,671     $ 203,227     $ 213,562     $ 225,876     $ 232,701     $ 220,694  
Deferred revenue
    305,898       304,993       279,809       312,952       376,448       399,105       382,835  
Borrowings on credit facility short-term
                      90,000       79,500       75,000       77,129  
Current portion of long-term debt
    5,010       5,003       5,000       5,000       5,000       5,000       5,000  
 
                                         
Total current liabilities
    507,156       527,667       488,036       621,514       686,824       711,806       685,658  
 
                                         
 
                                                       
Long-term income taxes payable
    87,343       89,101       90,813       95,464       95,390       96,922       96,443  
Long-term debt, less current portion
    45,000       45,000       45,000       40,000       40,000       40,000       40,000  
Other liabilities
    54,527       38,288       38,325       27,398       27,138       20,603       17,970  
 
                                         
Total liabilities
    694,026       700,056       662,174       784,376       849,352       869,331       840,071  
 
                                         
 
                                                       
Common stock and class B common stock
    134       135       135       136       136       137       138  
Additional paid-in capital
    1,395,970       1,394,915       1,404,043       1,416,547       1,424,815       1,427,804       1,434,095  
Accumulated other comprehensive income
    64,167       48,470       20,608       69,016       63,165       98,561       105,653  
Accumulated deficit
    (327,107 )     (351,285 )     (354,242 )     (359,966 )     (359,466 )     (359,388 )     (348,402 )
 
                                         
Total stockholders’ equity
    1,133,164       1,092,235       1,070,544       1,125,733       1,128,650       1,167,114       1,191,484  
 
                                         
 
                                                       
Total liabilities and stockholders’ equity
  $ 1,827,190     $ 1,792,291     $ 1,732,718     $ 1,910,109     $ 1,978,002     $ 2,036,445     $ 2,031,555  
 
                                         
 
                                                       
Selected Financial Ratios(1)
                                                       
- Annualized return on equity
    -0.7 %     -8.7 %     -1.1 %     -2.1 %     0.2 %     0.0 %     3.7 %
- Book value per share
  $ 9.47     $ 9.05     $ 8.87     $ 9.32     $ 9.32     $ 9.56     $ 9.70  
- Cash and marketable securities per share
  $ 2.51     $ 2.59     $ 2.49     $ 1.41     $ 1.35     $ 1.57     $ 1.62  
- Net cash and securities
  $ 250,106     $ 262,409     $ 251,123     $ 35,807     $ 38,669     $ 71,002     $ 76,905  
     
(1)  
See notes to financial supplement for definitions and calculations of selected financial ratios.

 

10