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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
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
Companys financial and operating metrics. We suggest that the notes to this supplement be read in
conjunction with the financial tables. The financial information included in this supplement
contains certain non-GAAP financial measures. These measures should be considered in addition to
results prepared in accordance with generally accepted accounting principles (GAAP), but are not
a substitute for, or superior to, GAAP results. The non-GAAP measures included in this supplement
have been reconciled to the most comparable GAAP measure. The Company intends to update the
financial supplement on a quarterly basis.
Notes to Financial Supplement
Presentation
Acquisition of the HotJobs Assets from Yahoo! Inc.
On August 24, 2010, pursuant to an Asset Purchase Agreement dated as of February 3, 2010 (the
Asset Purchase Agreement) by and between Monster and Yahoo! Inc. (Yahoo!), Monster completed
the acquisition of substantially all of the assets exclusive to Yahoo! HotJobs (the HotJobs
Assets) from Yahoo!. The purchase price for the HotJobs Assets was $225.0 million. We acquired the
HotJobs Assets, among other objectives, to expand our business in the North 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.
2
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, RBCs 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 Companys 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 Companys core business operations and in certain
instances, for measuring performance under certain of the Companys incentive compensation plans.
These non-GAAP measures may not be comparable to similarly titled measures reported by other
companies.
Earnings before interest, taxes, depreciation and amortization (EBITDA) is defined as net income
or loss before interest income or expense, income tax expense or benefit, net gain or loss in
equity interests, depreciation and amortization and non-cash compensation expense. The Company
considers EBITDA to be an important indicator of its operational strength which the Company
believes is useful to management and investors in evaluating its operating performance. EBITDA is a
non-GAAP measure and may not be comparable to similarly titled measures reported by other
companies.
3
Operating income before depreciation and amortization (OIBDA) is defined as net income or loss
before depreciation, amortization of intangible assets, amortization of stock-based compensation
and non-cash costs
incurred in connection with the Companys restructuring program. The Company considers OIBDA to be
an important indicator of its operational strength. This measure eliminates the effects of
depreciation, amortization of intangible assets, amortization of stock-based compensation and
non-cash restructuring costs from period to period, which the Company believes is useful to
management and investors in evaluating its operating performance. OIBDA is a non-GAAP measure and
may not be comparable to similarly titled measures reported by other companies.
Bookings represent the dollar value of contractual orders received in the relevant period.
Free cash flow is defined as cash flow from operating activities less capital expenditures. Free
cash flow is considered a liquidity measure and provides useful information about the Companys
ability to generate cash after investments in property and equipment. Free cash flow reflected
herein is a non-GAAP measure and may not be comparable to similarly titled measures reported by
other companies. Free cash flow does not reflect the total change in the Companys cash position
for the period and should not be considered a substitute for such a measure.
Net cash and securities are defined as cash and cash equivalents plus short-term and long-term
marketable securities, less total debt. Total available liquidity is defined as cash and cash
equivalents, plus short-term and long-term marketable securities, plus unused borrowings under our
credit facility. The Company considers net cash and securities and total available
liquidity to be important measures of liquidity and indicators of its ability to meet its ongoing
obligations. The Company also uses net cash and securities and total available liquidity, among
other measures, in evaluating its choices for capital deployment. Net cash and securities and total
available liquidity are presented herein as non-GAAP measures and may not be comparable to
similarly titled measures used by other companies.
Selected financial ratios
We have included selected financial ratios in this financial supplement in order to assist
investors to further evaluate our business. Our definitions and calculations are as follows:
Annualized return on equity
Annualized return on equity measures our effectiveness and ability to generate future profitability
on the earnings that we retain. In addition, the ratio is a strong indicator of how well we
utilize shareholders investments in our business. We calculate annualized return on equity as
follows:
Annualized net income / Average stockholders equity
Book value per share
Book value per share is a market value indicator that we utilize when analyzing our stockholders
equity. We calculate book value per share as follows:
Stockholders equity / Total shares outstanding
Cash and marketable securities per share
We calculate cash and marketable securities per share as follows:
(Cash and cash equivalents + Current marketable securities + Non-current marketable securities) /
Total shares outstanding
4
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 |
5
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 | % | ||||||||||||||||
6
Monster Worldwide, Inc.
Segment Information and Margin Analysis GAAP and Non-GAAP
(unaudited, in thousands)
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)
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