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8-K - FORM 8-K - MONSTER WORLDWIDE, INC.d287930d8k.htm
EX-99.1 - EXHIBIT 99.1 - MONSTER WORLDWIDE, INC.d287930dex991.htm

Exhibit 99.2

LOGO

FINANCIAL SUPPLEMENT

December 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.


LOGO

Notes to Financial Supplement

Presentation

Restructuring and Other Special Charges

For the three months and twelve months ended December 31, 2011, the Company incurred $3.2 million and $5.2 million, respectively, of restructuring charges, comprised mainly of severance costs and facility charges. These costs resulted primarily from the Company no longer engaging in certain activities within the Internet, Advertising and Fees segment and targeted headcount reductions.

Acquisition of the HotJobs Assets from Yahoo! Inc.

On August 24, 2010, pursuant to an Asset Purchase Agreement dated as of February 3, 2010 (the “Asset Purchase Agreement”) by and between Monster and Yahoo! Inc. (“Yahoo!”), Monster completed the acquisition of substantially all of the assets exclusive to Yahoo! HotJobs (the “HotJobs Assets”) from Yahoo! The purchase price for the HotJobs Assets was $225.0 million. We acquired the HotJobs Assets, among other objectives, to expand our business in the North American online recruitment market. The results of operations attributable to the HotJobs Assets have been included in our consolidated financial statements since August 24, 2010. Concurrent with the closing of the acquisition, Monster and Yahoo! entered into a three year commercial traffic agreement whereby Monster became Yahoo!’s exclusive provider of career and job content on the Yahoo! homepage in the United States and Canada.

The Company funded the purchase of the HotJobs Assets with available cash and proceeds from the Company’s revolving credit facility. In the three months ended December 31, 2011 and 2010, the Company incurred $0 and $6.1 million, respectively, of acquisition and integration-related costs. In the twelve months ended December 31, 2011 and 2010 the Company incurred $4.6 million and $24.3 million of acquisition and integration-related costs associated with the acquisition of the HotJobs Assets. These costs were expensed as incurred and are included in office and general expenses and salaries and related expenses in the consolidated statement of operations, and primarily relate to legal fees, professional fees and other integration costs associated with the acquisition. No acquisition and integration-related costs were incurred by the Company subsequent to March 31, 2011.

Deferred Revenue Related to Acquisitions

In accordance with existing purchase accounting rules, we are required to write-down to fair value a portion of the deferred revenue attributable to the HotJobs Assets. Consequently, in post-acquisition periods, we do not recognize the full amount of this deferred revenue. When measuring the performance of our business, however, we add back the revenue resulting from this fair value adjustment as we believe that the inclusion of this revenue provides useful information to our management, as well as to investors.

For the three months ended December 31, 2011 and 2010, the fair value adjustment to deferred revenue was $0 and $3.3 million, respectively. In the year ended December 31, 2011 and 2010, the fair value adjustment of deferred revenue was $2.7 million and $5.1 million, respectively.

Release of ChinaHR Escrowed Funds

On October 8, 2008, the Company’s Careers — International segment completed the acquisition of the remaining 55.6% ownership interest in China HR.com Holdings Ltd. (together with its subsidiaries, “ChinaHR”) not already owned by the Company. Consideration for the acquisition was approximately $167.0 million in cash, net of cash acquired. A portion of the purchase price was placed into escrow to secure the sellers’ obligation to indemnify the

 

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Company for any breaches of the representations and warranties made by the sellers. In the third quarter of 2011, the Company received $17.4 million in cash, net of professional fees reimbursed to the Company, relating to the release of the ChinaHR escrowed funds, which is recorded in the consolidated statements of operations.

Severance Charges

For the three months ended December 31, 2011 and 2010, the Company incurred $0 and $0.5 million, respectively, of severance costs relating to targeted global headcount reductions. In the year ended December 31, 2011 and 2010, the Company incurred $0.4 million and $7.9 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.

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.

Auction Rate Securities

In November 2009, the Company entered into a settlement agreement with RBC Capital Markets Corporation (“RBC”) with respect to auction rate securities purchased from RBC. Pursuant to the terms of the settlement agreement, RBC immediately repurchased the subject auction rate securities from the Company at a certain discount to their par value. The Company will receive certain additional monies from RBC if, within a certain time period of the date of the execution of the settlement agreement, any of the auction rate securities still held by RBC are redeemed or refinanced by the issuer for sums higher than the amounts RBC paid the Company to repurchase such auction rate securities. As part of the settlement agreement, the Company dismissed a lawsuit it had filed against RBC in connection with, and released claims related to, RBC’s sale of the auction rate securities to the Company. The settlement agreement has lapsed with RBC as of December 31, 2011.

In the year ended December 31, 2011 and 2010, the Company received $1.1 million and $1.4 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. The Company’s receipt of $1.1 million and $1.4 million, respectively, resulted in benefits recorded in interest and other, net, in the consolidated statement of operations for the years ended December 31, 2011 and 2010.

Additionally, in the year ended December 31, 2010, the Company received at par value issuer redemptions of auction rate securities, resulting in a $1.0 million benefit which was recorded in interest and other, net, in the consolidated statement of operations.

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 (loss) and diluted earnings (loss) per share all exclude certain pro-forma adjustments including: reversal of legal settlements, net; the receipt of escrowed funds associated with the ChinaHR acquisition; the strategic restructuring actions initiated in the third quarter of 2007; severance and facility charges primarily related to the product and technology global

 

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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 restructuring charges primarily related to severance and facility charges associated with the decision to no longer engage in certain business within the Internet, Advertising and Fees segment. 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.

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:

 

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Annualized return on equity

Annualized return on equity measures our effectiveness and ability to generate future profitability on the earnings that we retain. In addition, the ratio is a strong indicator of how well we utilize shareholders’ investments in our business. We calculate annualized return on equity as follows:

Annualized net income / Average stockholders’ equity

Book value per share

Book value per share is a market value indicator that we utilize when analyzing our stockholders’ equity. We calculate book value per share as follows:

Stockholders’ equity / Total shares outstanding

Cash and marketable securities per share

We calculate cash and marketable securities per share as follows:

(Cash and cash equivalents + Current marketable securities + Non-current marketable securities) / Total shares outstanding

 

5


Monster Worldwide, Inc.

Statements of Operations

(unaudited, in thousands, except per share amounts)

 

    Trended Data  

Summary P&L Information

  FY 2009     Q1 2010     Q2 2010     Q3 2010     Q4 2010     FY 2010     Q1 2011     Q2 2011     Q3 2011     Q4 2011     FY 2011  

Monster Careers

  $ 772,596      $ 182,582      $ 183,808      $ 193,912      $ 222,689      $ 782,991      $ 228,292      $ 236,017      $ 237,251      $ 228,665      $ 930,225   

Internet Advertising & Fees

    132,546        32,723        31,109        34,930        32,380        131,142        33,090        33,679        21,797        21,314        109,880   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

    905,142        215,305        214,917        228,842        255,069        914,133        261,382        269,696        259,048        249,979        1,040,105   

Salary and related

    423,828        118,183        104,089        105,764        115,564        443,600        122,481        119,956        120,314        110,924        473,675   

Office and general

    162,755        45,544        41,214        46,790        42,153        175,701        48,169        42,918        38,639        39,946        169,672   

Marketing and promotion

    209,661        59,581        46,925        51,661        64,399        222,566        57,698        58,524        46,527        52,594        215,343   

Reversal of legal settlements, net

    (6,850     —          —          —          —          —          —          —          —          —          —     

Release of China HR escrowed funds

    —          —          —          —          —          —          —          —          (17,400     —          (17,400

Restructuring and other special charges

    16,105        —          —          —          —          —          —          —          2,004        3,169        5,173   

Depreciation expense

    59,117        14,521        13,782        13,975        14,204        56,482        14,373        15,052        14,998        14,367        58,790   

Amortization of restricted stock and RSU Plan

    39,306        10,124        10,744        13,398        12,380        46,646        13,028        12,161        8,899        7,996        42,084   

Non-cash stock option expense

    615        143        133        135        134        545        152        96        95        96        439   

Amortization of intangibles

    9,416        2,083        1,910        2,507        4,114        10,614        4,028        4,001        3,846        3,935        15,810   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

    913,953        250,179        218,797        234,230        252,948        956,154        259,929        252,708        217,922        233,027        963,586   

Operating (loss) income

    (8,811     (34,874     (3,880     (5,388     2,121        (42,021     1,453        16,988        41,126        16,952        76,519   

Interest and other, net

    (5,828     (653     901        (1,286     (835     (1,873     (441     (511     (1,478     (679     (3,109
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income before income taxes and equity interests

    (14,639     (35,527     (2,979     (6,674     1,286        (43,894     1,012        16,477        39,648        16,273        73,410   

(Benefit from) provison for income taxes

    (37,883     (12,179     (829     (1,823     426        (14,405     356        5,441        7,453        5,121        18,371   

Loss in equity interests, net

    (4,317     (831     (807     (873     (359     (2,870     (578     (50     (368     (246     (1,242
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

  $ 18,927      $ (24,179   $ (2,957   $ (5,724   $ 501      $ (32,359   $ 78      $ 10,986      $ 31,827      $ 10,906      $ 53,797   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic income (loss) per share:

  $ 0.16      $ (0.20   $ (0.02   $ (0.05   $ —        $ (0.27   $ —        $ 0.09      $ 0.26      $ 0.09      $ 0.44   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted income (loss) per share:

  $ 0.16      $ (0.20   $ (0.02   $ (0.05   $ —        $ (0.27   $ —        $ 0.09      $ 0.26      $ 0.09      $ 0.43   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted avg. shares outstanding:

                     

Basic shares

    119,359        120,032        120,701        120,796        120,892        120,608        121,425        122,200        122,991        121,378        122,002   

Diluted shares

    121,170        120,032        120,701        120,796        124,525        120,608        124,636        124,386        123,972        122,685        123,923   

Global employees (ones)

    5,687        5,518        5,546        5,792        5,847        5,847        5,909        6,042        6,003        5,999        5,999   

Annualized revenue per average employee

  $ 152.4      $ 153.7      $ 155.4      $ 161.5      $ 175.3      $ 161.1      $ 177.9      $ 180.5      $ 172.1      $ 166.6      $ 173.7   


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     Q3 2011     Q4 2011     FY 2011  

Monster Careers

    85.4     84.8     85.5     84.7     87.3     85.7     87.3     87.5     91.6     91.5     89.4

Internet Advertising & Fees

    14.6     15.2     14.5     15.3     12.7     14.3     12.7     12.5     8.4     8.5     10.6
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

    100.0     100.0     100.0     100.0     100.0     100.0     100.0     100.0     100.0     100.0     100.0

Salary and related

    46.8     54.9     48.4     46.2     45.3     48.5     46.9     44.5     46.4     44.4     45.5

Office and general

    18.0     21.2     19.2     20.4     16.5     19.2     18.4     15.9     14.9     16.0     16.3

Marketing and promotion

    23.2     27.7     21.8     22.6     25.2     24.3     22.1     21.7     18.0     21.0     20.7

Reversal of legal settlements, net

    -0.8     0.0     0.0     0.0     0.0     0.0     0.0     0.0     0.0     0.0     0.0

Release of China HR escrowed funds

    0.0     0.0     0.0     0.0     0.0     0.0     0.0     0.0     -6.7     0.0     -1.7

Restructuring and other special charges

    1.8     0.0     0.0     0.0     0.0     0.0     0.0     0.0     0.8     1.3     0.5

Depreciation expense

    6.5     6.7     6.4     6.1     5.6     6.2     5.5     5.6     5.8     5.7     5.7

Amortization of restricted stock and RSU Plan

    4.3     4.7     5.0     5.9     4.9     5.1     5.0     4.5     3.4     3.2     4.0

Non-cash stock option expense

    0.1     0.1     0.1     0.1     0.1     0.1     0.1     0.0     0.0     0.0     0.0

Amortization of intangibles

    1.0     1.0     0.9     1.1     1.6     1.2     1.5     1.5     1.5     1.6     1.5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

    101.0     116.2     101.8     102.4     99.2     104.6     99.4     93.7     84.1     93.2     92.6

Operating (loss) income

    -1.0     -16.2     -1.8     -2.4     0.8     -4.6     0.6     6.3     15.9     6.8     7.4

Interest and other, net

    -0.6     -0.3     0.4     -0.6     -0.3     -0.2     -0.2     -0.2     -0.6     -0.3     -0.3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income before income taxes and equity interests

    -1.6     -16.5     -1.4     -2.9     0.5     -4.8     0.4     6.1     15.3     6.5     7.1

(Benefit from) provision for income taxes

    -4.2     -5.7     -0.4     -0.8     0.2     -1.6     0.1     2.0     2.9     2.0     1.8

Losses in equity interests, net

    -0.5     -0.4     -0.4     -0.4     -0.1     -0.3     -0.2     0.0     -0.1     -0.1     -0.1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

    2.1     -11.2     -1.4     -2.5     0.2     -3.5     0.0     4.1     12.3     4.4     5.2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


Monster Worldwide, Inc.

Segment Information and Margin Analysis—GAAP and Non-GAAP

(unaudited, in thousands)

 

000 000 000 000 000 000 000 000 000 000 000
    Trended Data  
    FY 2009     Q1 2010     Q2 2010     Q3 2010     Q4 2010     FY 2010     Q1 2011     Q2 2011     Q3 2011     Q4 2011     FY 2011  

Segment Revenue: GAAP

                     

Careers—North America

  $ 407,118      $ 96,957      $ 96,948      $ 107,229      $ 121,059      $ 422,193      $ 121,032      $ 122,565      $ 123,160      $ 118,599      $ 485,356   

Careers—International

    365,478        85,625        86,860        86,683        101,630        360,798        107,260        113,452        114,091        110,066        444,869   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Careers Revenue—GAAP

    772,596        182,582        183,808        193,912        222,689        782,991        228,292        236,017        237,251        228,665        930,225   

Internet Advertising & Fees Revenue—GAAP

    132,546        32,723        31,109        34,930        32,380        131,142        33,090        33,679        21,797        21,314        109,880   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster Revenue—GAAP

  $ 905,142      $ 215,305      $ 214,917      $ 228,842      $ 255,069      $ 914,133      $ 261,382      $ 269,696      $ 259,048      $ 249,979      $ 1,040,105   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment Revenue (1): Non-GAAP

                     

Careers—North America

  $ 407,118      $ 96,957      $ 96,948      $ 109,017      $ 124,324      $ 427,246      $ 123,690      $ 122,565      $ 123,160      $ 118,599      $ 488,014   

Careers—International

    367,749        85,625        86,860        86,683        101,630        360,798        107,260        113,452        114,091        110,066        444,869   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Careers Revenue Non-GAAP

    774,867        182,582        183,808        195,700        225,954        788,044        230,950        236,017        237,251        228,665        932,883   

Internet Advertising & Fees Non-GAAP

    132,546        32,723        31,109        34,930        32,380        131,142        33,090        33,679        21,797        21,314        109,880   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Internet Advertising & Fees Non-GAAP excluding “paid lead gen” (2010 and 2011)

    132,546        19,783        19,325        21,044        20,267        80,419        22,043        22,487        21,797        21,314        87,641   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster Revenue Non-GAAP

  $ 907,413      $ 215,305      $ 214,917      $ 230,630      $ 258,334      $ 919,186      $ 264,040      $ 269,696      $ 259,048      $ 249,979      $ 1,042,763   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster Revenue Non-GAAP excluding “paid lead gen” (2010 and 2011)

  $ 907,413      $ 202,365      $ 203,133      $ 216,744      $ 246,221      $ 868,463      $ 252,993      $ 258,504      $ 259,048      $ 249,979      $ 1,020,524   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment operating income (loss): GAAP

                     

Careers—North America

  $ 19,670      $ (3,772   $ 17,454      $ 18,773      $ 15,328      $ 47,783      $ 16,989      $ 16,002      $ 21,434      $ 20,206      $ 74,631   

Careers—International

    (6,283     (13,412     (4,536     (5,882     258        (23,572     5,422        10,257        10,400        8,592        34,671   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Careers operating income (loss) GAAP

    13,387        (17,184     12,918        12,891        15,586        24,211        22,411        26,259        31,834        28,798        109,302   

Internet Advertising & Fees operating income GAAP

    18,114        1,236        546        1,880        562        4,224        1,503        1,862        395        1,454        5,214   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Corporate expenses GAAP

    (40,312     (18,926     (17,344     (20,159     (14,027     (70,456     (22,461     (11,133     8,897        (13,300     (37,997
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster operating (loss) income GAAP

  $ (8,811   $ (34,874   $ (3,880   $ (5,388   $ 2,121      $ (42,021   $ 1,453      $ 16,988      $ 41,126      $ 16,952      $ 76,519   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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      $ 21,434      $ 20,656      $ 77,966   

Careers—International

    10,475        (11,269     (3,989     (5,576     288        (20,546     5,704        10,257        10,723        8,887        35,571   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Careers operating income (loss) Non-GAAP

    39,725        (11,760     13,511        15,168        18,989        35,908        25,578        26,259        32,157        29,543        113,537   

Internet Advertising & Fees operating income Non-GAAP

    20,598        2,145        561        1,937        559        5,202        1,524        1,862        2,076        3,878        9,340   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Corporate expenses Non-GAAP

    (48,524     (14,528     (12,223     (11,554     (7,612     (45,917     (14,984     (11,133     (8,503     (13,300     (47,920
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster operating income (loss) Non-GAAP

  $ 11,799      $ (24,143   $ 1,849      $ 5,551      $ 11,936      $ (4,807   $ 12,118      $ 16,988      $ 25,730      $ 20,121      $ 74,957   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Bookings

  $ 806,907        219,054        208,202        235,025        330,157      $ 992,438        272,472        262,338        264,422        314,126      $ 1,113,358   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Bookings—excluding portion of IAF business no longer engaged (2010 and 2011)

  $ 806,907        206,114        196,418        221,139        315,777      $ 939,448        261,425        251,146        264,422        314,126      $ 1,091,119   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(1)—See notes to financial supplement for further explanation of Non-GAAP measures.


Monster Worldwide, Inc.

Statements of Operations—Reconciliation of Non-GAAP Measures

(unaudited, in thousands)

 

000 000 000 000 000 000 000 000 000 000 000
    Trended Data  

Summary P&L Information

  FY 2009     Q1 2010     Q2 2010     Q3 2010     Q4 2010     FY 2010     Q1 2011     Q2 2011     Q3 2011     Q4 2011     FY 2011  

Non-GAAP revenue (1)

  $ 907,413      $ 215,305      $ 214,917      $ 230,630      $ 258,334      $ 919,186      $ 264,040      $ 269,696      $ 259,048      $ 249,979      $ 1,042,763   

Deferred revenue related to acquisitions

    2,271        —          —          1,788        3,265        5,053        2,658        —          —          —          2,658   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue—GAAP

  $ 905,142      $ 215,305      $ 214,917      $ 228,842      $ 255,069      $ 914,133      $ 261,382      $ 269,696      $ 259,048      $ 249,979      $ 1,040,105   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

OIBDA—GAAP (1)

  $ 104,364      $ (8,003   $ 22,689      $ 24,627      $ 32,953      $ 72,266      $ 33,034      $ 48,298      $ 68,964      $ 43,476      $ 193,772   

Depreciation expense

    59,117        14,521        13,782        13,975        14,204        56,482        14,373        15,052        14,998        14,367        58,790   

Amortization of restricted stock and RSU Plan

    39,306        10,124        10,744        13,398        12,380        46,646        13,028        12,161        8,899        7,996        42,084   

Non-cash stock option expense

    615        143        133        135        134        545        152        96        95        96        439   

Restructuring non-cash write-offs

    4,721        —          —          —          —          —          —          —          —          130        130   

Amortization of intangibles

    9,416        2,083        1,910        2,507        4,114        10,614        4,028        4,001        3,846        3,935        15,810   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating (loss) income—GAAP

  $ (8,811   $ (34,874   $ (3,880   $ (5,388   $ 2,121      $ (42,021   $ 1,453      $ 16,988      $ 41,126      $ 16,952      $ 76,519   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reversal of legal settlements, net

    (6,850     —          —          —          —          —          —          —          —          —          —     

Release of China HR escrowed funds

    —          —          —          —          —          —          —          —          (17,400     —          (17,400

Stock option investigation

    (3,246     —          —          —          —          —          —          —          —          —          —     

Non-GAAP severance

    8,773        6,360        494        546        456        7,856        362        —          —          —          362   

Non-GAAP facilities

    3,557        —          —          —          —          —          2,998        —          —          —          2,998   

Non-GAAP Integration fees

    —          4,371        5,235        8,605        4,668        22,879        3,831        —          —          —          3,831   

Non-GAAP Integration fees—salary

    —          —          —          —          1,426        1,426        816        —          —          —          816   

Deferred revenue related to acquisitions

    2,271        —          —          1,788        3,265        5,053        2,658        —          —          —          2,658   

Restructuring program non-cash write-offs

    4,721        —          —          —          —          —          —          —          —          130        130   

Restructuring expenses, less non-cash items

    11,384        —          —          —          —          —          —          —          2,004        3,039        5,043   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Non-GAAP Adjustments

    20,610        10,731        5,729        10,939        9,815        37,214        10,665        —          (15,396     3,169        (1,562

Operating income (loss) Non-GAAP(1)

  $ 11,799      $ (24,143   $ 1,849      $ 5,551      $ 11,936      $ (4,807   $ 12,118      $ 16,988      $ 25,730      $ 20,121      $ 74,957   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(1)—See notes to financial supplement for further explanation of Non-GAAP measures.


Monster Worldwide, Inc.

Statements of Cash Flows

(unaudited, in thousands, except per share amounts)

 

000 000 000 000 000 000 000 000 000 000 000
    Trended Data  
    FY 2009     Q1 2010     Q2 2010     Q3 2010     Q4 2010     FY 2010     Q1 2011     Q2 2011     Q3 2011     Q4 2011     FY 2011  

Cash flows provided by operating activities:

                     

Net income (loss)

  $ 18,927      $ (24,179   $ (2,957   $ (5,724   $ 501      $ (32,359   $ 78      $ 10,986      $ 31,827      $ 10,906      $ 53,797   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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        18,844        18,302        74,600   

Reversal of legal settlements, net

    (6,850     —          —          —          —          —          —          —          —          —          —     

Provision for doubtful accounts

    10,154        1,149        398        489        911        2,947        370        1,067        1,015        877        3,329   

Non-cash compensation

    39,921        10,267        10,877        13,533        12,514        47,191        13,180        12,257        8,994        8,092        42,523   

Deferred income taxes

    1,189        (14,713     (2,872     (8,509     (1,796     (27,890     (3,984     (6,563     3,985        903        (5,659

Non-cash restructuring write-offs, accelerated amortization, and other

    4,779        —          144        19        92        255        —          —          —          130        130   

Loss in equity interests, net

    4,317        831        807        873        359        2,870        578        50        368        246        1,242   

Losses (gains) on auction rate securities

    4,181        (200     (1,904     (311     —          (2,415     (1,120     (612     —          —          (1,732

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        18,650        (48,552     (856

Prepaid and other

    (2,669     1,589        (2,201     720        (16,598     (16,490     (6,718     2,015        2,342        (3,149     (5,510

Deferred revenue

    (111,634     4,668        (19,725     12,471        65,074        62,488        14,926        (17,955     (21,902     29,987        5,056   

Accounts payable, accrued expenses and other liabilities

    (66,585     22,569        (8,491     9,849        19,007        42,934        1,293        (8,859     (16,597     6,920        (17,243
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total adjustments

    25,798        60,395        9,655        24,334        31,047        125,431        49,342        17,083        15,699        13,756        95,880   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

    44,725        36,216        6,698        18,610        31,548        93,072        49,420        28,069        47,526        24,662        149,677   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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     (12,645     (16,385     (61,818

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        —          —          1,732   

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        —          —          —          443   

Cash funded to equity investee

    (6,299     (1,345     (1,555     (1,524     (1,224     (5,648     (1,007     (808     (744     —          (2,559
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used for) investing activities

    7,879        (6,247     (2,374     (234,244     (18,395     (261,260     (15,901     (16,527     (13,389     (16,385     (62,202
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows (used for) provided by financing activities:

                     

Proceeds from borrowings on revolving credit facilities

    199,203        —          —          90,000        —          90,000        —          2,126        105,599        997        108,722   

Payments on borrowings on term loan and revolving credit facilities

    (256,196     —          —          (5,000     (10,500     (15,500     (4,500     —          (5,000     (35,001     (44,501

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     (3,004     (263     (17,139

Repurchase of common stock

    —          —          —          —          —          —          —          —          —          (41,973     (41,973

Net borrowings on term loan

    50,000        —          —          —          —          —          —          —          —          —          —     

Proceeds from the exercise of employee stock options

    67        27        39        —          234        300        23        —          —          —          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     97,595        (76,240     5,132   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effects of exchange rates on cash

    12,001        (7,932     (3,930     9,207        (2,008     (4,663     5,887        1,140        (8,965     (3,521     (5,459

Net increase (decrease) in cash and cash equivalents

    53,187        15,705        (2,423     (122,016     (3,544     (112,278     27,833        8,032        122,767        (71,484     87,148   

Cash and cash equivalents, beginning of period

    222,260        275,447        291,152        288,729        166,713        275,447        163,169        191,002        199,034        321,801        163,169   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents, end of period

  $ 275,447      $ 291,152      $ 288,729      $ 166,713      $ 163,169      $ 163,169      $ 191,002      $ 199,034      $ 321,801      $ 250,317      $ 250,317   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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      $ 47,526      $ 24,662      $ 149,677   

Less: Capital expenditures

    (48,677     (8,536     (11,939     (16,181     (20,470     (57,126     (16,457     (16,331     (12,645     (16,385     (61,818
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow

  $ (3,952   $ 27,680      $ (5,241   $ 2,429      $ 11,078      $ 35,946      $ 32,963      $ 11,738      $ 34,881      $ 8,277      $ 87,859   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(1) — See notes to financial supplement for further explanation of non-GAAP measures.


Monster Worldwide, Inc.

Consolidated Condensed Balance Sheets

(unaudited, in thousands, except selected financial ratios)

 

000 000 000 000 000 000 000 000 000
    Trended Data  
    December 2009     March 2010     June 2010     September 2010     December 2010     March 2011     June 2011     September 2011     December 2011  
ASSETS                  

Current assets:

                 

Cash and cash equivalents

  $ 275,447      $ 291,152      $ 288,729      $ 166,713      $ 163,169      $ 191,002      $ 199,034      $ 321,801      $ 250,317   

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        298,778        343,546   

Prepaid and other

    73,089        70,229        68,487        66,301        75,451        84,600        84,744        83,506        82,069   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

    645,493        633,120        607,715        515,288        585,371        615,909        607,504        704,085        675,932   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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        155,642        156,282   

Goodwill

    925,758        917,187        892,008        1,123,834        1,122,951        1,151,182        1,157,724        1,137,074        1,132,161   

Intangibles, net

    43,863        41,173        39,029        70,067        66,184        62,474        58,788        54,759        51,961   

Investment in unconsolidated affiliates

    546        330        640        745        1,359        919        1,545        1,643        1,183   

Other assets

    52,393        50,884        52,411        52,108        51,990        51,061        47,816        42,107        40,479   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

  $ 1,827,190      $ 1,792,291      $ 1,732,718      $ 1,910,109      $ 1,978,002      $ 2,036,445      $ 2,031,555      $ 2,095,310      $ 2,057,998   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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      $ 202,251      $ 213,817   

Deferred revenue

    305,898        304,993        279,809        312,952        376,448        399,105        382,835        354,029        380,310   

Borrowings on credit facility short-term

    —          —          —          90,000        79,500        75,000        77,129        182,771        148,836   

Current portion of long-term debt

    5,010        5,003        5,000        5,000        5,000        5,000        5,000        5,000        40,000   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

    507,156        527,667        488,036        621,514        686,824        711,806        685,658        744,051        782,963   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Long-term income taxes payable

    87,343        89,101        90,813        95,464        95,390        96,922        96,443        98,164        94,750   

Long-term debt, less current portion

    45,000        45,000        45,000        40,000        40,000        40,000        40,000        35,000        —     

Other liabilities

    54,527        38,288        38,325        27,398        27,138        20,603        17,970        20,534        16,158   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    694,026        700,056        662,174        784,376        849,352        869,331        840,071        897,749        893,871   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Common stock and class B common stock

    134        135        135        136        136        137        138        138        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        1,440,027        1,405,915   

Accumulated other comprehensive income

    64,167        48,470        20,608        69,016        63,165        98,561        105,653        73,971        63,743   

Accumulated deficit

    (327,107     (351,285     (354,242     (359,966     (359,466     (359,388     (348,402     (316,575     (305,669
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

    1,133,164        1,092,235        1,070,544        1,125,733        1,128,650        1,167,114        1,191,484        1,197,561        1,164,127   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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      $ 2,095,310      $ 2,057,998   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Selected Financial Ratios(1)

                 

—Annualized return on equity

    -0.7     -8.7     -1.1     -2.1     0.2     0.0     3.7     10.7     3.7

—Book value per share

  $ 9.47      $ 9.05      $ 8.87      $ 9.32      $ 9.32      $ 9.56      $ 9.70      $ 9.73      $ 9.90   

—Cash and marketable securities per share

  $ 2.51      $ 2.59      $ 2.49      $ 1.41      $ 1.35      $ 1.57      $ 1.62      $ 2.61      $ 2.13   

—Net cash and securities

  $ 250,106      $ 262,409      $ 251,123      $ 35,807      $ 38,669      $ 71,002      $ 76,905      $ 99,030      $
61,481
  

(1) —See notes to financial supplement for definitions and calculations of selected financial ratios.