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8-K - FORM 8-K - MONSTER WORLDWIDE, INC.d482187d8k.htm
EX-99.2 - EX-99.2 - MONSTER WORLDWIDE, INC.d482187dex992.htm

Exhibit 99.1

 

LOGO

Monster Worldwide Reports Fourth Quarter and Full Year 2012 Results

 

   

Fourth Quarter Results

 

   

Revenue from Continuing Operations of $211 million

 

   

GAAP Loss Per Share from Continuing Operations of ($0.05)

 

   

Non-GAAP EPS from Continuing Operations of $0.08

 

   

Full Year 2012 Results

 

   

Revenue from Continuing Operations of $890 million

 

   

GAAP EPS from Continuing Operations of $0.51

 

   

Non-GAAP EPS from Continuing Operations of $0.38

 

   

Implementing Previously Announced Corporate Restructuring

 

   

Completed sale of ChinaHR to Saongroup; retains 10% minority stake in combined China entity

 

   

Exited operations in Brazil, Mexico and Turkey

 

   

Reducing operating expenses by $130 million on an annualized basis

 

   

Concentrating resources on large and most profitable core markets in North America, Europe, Korea and India

New York, February 7, 2013 — Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the fourth quarter and twelve months ended December 31, 2012.

Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide, said, “During the fourth quarter, we implemented a series of actions designed to improve profitability and cash flow, consistent with our previously announced restructuring. As a leaner, more focused company, we are concentrating our resources on our core markets and are aggressively taking the steps necessary to strengthen our business. Our advanced product offerings, robust government business and a leading traffic position provide a solid foundation for future growth as the global economy recovers.”

“On the strategic alternatives front, the process continues and we will respond quickly if an opportunity arises. We are not able to anticipate when or whether our Board will have a concrete transaction to consider and we will only comment further if and when this occurs,” Iannuzzi concluded.

 

1


Full Year 2012 Business Highlights

 

   

Monster provides services to more than 300,000 customers globally, including 95% of the Fortune 1000.

 

   

According to comScore Media Metrix, Monster enjoyed the leading U.S. traffic position in the Career Services & Development category throughout the majority of 2012 and ended the year with over 21 million monthly Unique Visitors.

 

   

Monster’s Government Solutions business, which accounts for more than 10% of total bookings, increased approximately 40% year over year, including the Company’s multi-year contract with the United Kingdom Government’s Department for Work and Pensions (DWP).

 

   

SeeMore®—the world’s first cloud-based semantic search and analytics recruiting platform – was named one of the top products of 2012 by Human Resource Executive® magazine. The award was announced at the 15th annual HR Technology® Conference in Chicago on October 8, 2012.

 

   

On a global basis, business derived from the Company’s advanced and proprietary product offerings, including Career Ad Network®, Power Resume Search® and SeeMore® increased in the double-digit percentage range compared to the same period a year ago.

Corporate Restructuring Update

The Company is implementing its previously announced corporate restructuring program to focus on its core business and reduce its cost structure in order to improve profitability and cash flow. Since the announcement of the restructuring on November 8, 2012, the Company has implemented the following actions:

 

   

Completed the sale of ChinaHR to Saongroup, under which Monster has taken a 10% minority stake in the combined China business of Saongroup.

 

   

Exited operations in Brazil, Mexico and Turkey and classified these businesses as discontinued operations in the fourth quarter and full year results.

 

   

Redeployed expenses into marketing and sales in Monster’s core markets, while reducing the run rate of operating expenses.

As a result of the actions described above, Monster is on track to reduce operating expenses by approximately $130 million on an annualized basis. In association with these actions, the Company recorded pre-tax charges of $23 million, of which $15 million was included in continuing operations and $8 million was included in discontinued operations in the fourth quarter 2012. The Company expects additional pre-tax charges in the range of $27 million to $37 million to be incurred in the first half 2013.

 

2


Fourth Quarter 2012 Results

Total bookings from continuing operations were $261 million, compared to $300 million in the same period a year ago. On a year over year basis, currency translation had a $0.8 million negative impact on bookings in the fourth quarter 2012. The year over year decline in total bookings is primarily attributable to continued weakness in Europe, which has been negatively impacted by global economic challenges, partially offset by strength in North America’s e-commerce, staffing and newspaper channels. Revenue from continuing operations was $211 million, compared to fourth quarter 2011 revenue of $235 million. On a year over year basis, currency translation had a $1.3 million negative impact on revenue in the fourth quarter 2012. Historical data on bookings and revenue from continuing operations for prior quarters is available in the Company’s supplemental financial information.

Consolidated GAAP operating expenses from continuing operations of $212 million compares to $208 million in the fourth quarter 2011. Net loss from continuing operations for the fourth quarter was $5.3 million, or a loss per share of $0.05. In the fourth quarter 2011, the Company reported net income from continuing operations of $20 million, or $0.16 per share. Pro-forma items are described in the “Notes Regarding the Use of Non-GAAP Financial Measures” and are reconciled to the GAAP measure in the accompanying tables.

Non-GAAP net income from continuing operations of $8.7 million, or $0.08 per share, compares to $22 million, or $0.18 per share in the fourth quarter 2011. Non-GAAP operating expenses of $196 million decreased 4% year over year.

The consolidated loss for the fourth quarter 2012 was $73 million or a loss per share of $0.66 per share compared to consolidated net income of $11 million or earnings per share of $0.09 for the same period a year ago. The consolidated loss for the fourth quarter 2012 includes a loss from discontinued operations, net of tax, of $68 million, or a loss per share of $0.61, of which $53 million is non-cash asset write-offs.

 

3


Cash and cash equivalents were $148 million as of December 31, 2012 compared to $250 million as of December 31, 2011. Net operating cash flow in the quarter was $17 million. Excluding results from ChinaHR, Brazil, Mexico and Turkey, deferred revenue was $351 million compared to $358 million in the same period a year ago.

Full Year Results

Monster Worldwide reported total revenue from continuing operations of $890 million for the twelve months ended December 31, 2012 compared to $994 million in the same period last year, which included $22 million from IAF’s arbitrage lead generation business and a $2.7 million purchase accounting adjustment related to the HotJobs acquisition. The Company reported GAAP earnings from continuing operations of $58 million, or $0.51 per diluted share, compared to GAAP earnings of $66 million, or $0.53 per diluted share, in the prior period.

The consolidated loss for the year ended December 31, 2012 was $259 million or $2.27 per share compared to consolidated net income of $54 million or $0.43 per share for the same period in 2011. The consolidated loss for 2012 includes a loss from discontinued operations, net of tax, of $317 million, of which $279 million is non-cash asset write-offs.

Company Provides Q1 EPS Guidance

First quarter 2013 EPS from continuing operations is expected to be in the range of $0.06 to $0.10.

Conference Call and Webcast

Fourth quarter 2012 results will be discussed on Monster Worldwide’s quarterly conference call on February 7, 2013 at 8:30 AM ET. A live webcast of the conference call can be accessed online through the Investor Relations section of the Company’s website at http://ir.monster.com. To join the conference call by telephone, please dial (888) 696-1396 or (706) 758-9636 and reference conference ID 91616837.

A presentation of financial slides will be referenced during the conference call and will be viewable through the live webcast. A PDF of the financial presentation can also be accessed directly through the Company’s Investor Relations website at http://ir.monster.com.

 

4


The Company has also made available certain supplemental financial information which can be accessed directly through the Company’s Investor Relations website at http://ir.monster.com.

For a replay of the conference call, please dial (855) 859-2056 or (404) 537-3406 and reference ID#91616837. This number is valid until midnight on February 21, 2013.

Contacts

Investors: Lori Chaitman, (212) 351-7090, Lori.Chaitman@monster.com

Media: Andrea Rose, (212) 895-8666, arose@joelefrank.com

About Monster Worldwide

Monster Worldwide, Inc. (NYSE: MWW), parent company of Monster®, is the worldwide leader in successfully connecting people to job opportunities. From the web, to mobile, to social, Monster helps companies find people with customized solutions using the world’s most advanced technology to match the right person to the right job. With a local presence in more than 40 countries, Monster connects employers with quality job seekers at all levels, provides personalized career advice to consumers globally and delivers vast, highly targeted audiences to advertisers. To learn more about Monster’s industry-leading products and services, visit www.monster.com. More company information is available at http://about-monster.com.

Special Note: The statements in this release that are not strictly historical, including, without limitation, statements regarding the Company’s strategic direction, prospects and future results, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risks and uncertainties and, therefore, actual results may differ materially from what is expressed or implied herein and no assurance can be given that the Company will achieve, among other things, its outlook with respect to earnings per share for the first fiscal quarter 2013. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, economic and other conditions in the markets in which we operate, risks associated with acquisitions or dispositions, competition, and the other risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated into this release by reference. Many of the factors that will determine the Company’s future results are beyond the ability of management to control or predict. Readers should not place undue reliance on the forward-looking statements in this release as they reflect management’s views only as of the date hereof. The Company undertakes no obligation to revise or update any of the forward-looking statements contained in this release or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

 

5


Notes Regarding the Use of 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, generally accepted accounting principles (“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 from continuing operations, operating margin, net income from continuing operations, net (loss) income from discontinued operations, and diluted earnings (loss) per share all exclude certain pro-forma adjustments including: costs incurred for the 2012 restructurings; recovery of restitution award from former executive; costs incurred related to the Company’s review of strategic alternatives; income tax benefits associated with the reversal of income tax reserves on uncertain tax positions and a tax benefit related to certain losses arising from the Company’s restructuring program; the results of the businesses in Careers – China, Latin America and Turkey as they have been classified as discontinued operations; the fair value adjustment to deferred revenue in connection with the acquisition the HotJobs Assets; the receipt of escrowed funds associated with the ChinaHR acquisition; severance and facility charges primarily related to the product and technology global reorganization; changes in sublet assumptions on previously exited facilities; acquisition and integration-related costs related to the acquisition of 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 in 2011 to no longer engage in certain activities within the Internet, Advertising & 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, non-cash compensation expense and non-cash restructuring costs. 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 from operations 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.

 

6


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 is defined as cash and cash equivalents plus short-term marketable securities, less total debt. Total available liquidity is defined as cash and cash equivalents, plus short-term marketable securities plus unused borrowings under our credit facilities. 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.

 

7


MONSTER WORLDWIDE, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2012     2011     2012     2011  

Revenue

   $ 211,244      $ 234,786      $ 890,392      $ 993,644   
  

 

 

   

 

 

   

 

 

   

 

 

 

Salaries and related

     97,401        108,381        408,305        480,398   

Office and general

     55,497        52,763        226,601        224,914   

Marketing and promotion

     44,503        43,522        188,326        189,850   

Restructuring and other special charges

     14,831        3,035        40,358        4,715   

Recovery of restitution award from former executive

     —          —          (5,350     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     212,232        207,701        858,240        899,877   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating (loss) income

     (988     27,085        32,152        93,767   

Interest and other, net

     (1,699     (560     (5,883     (2,971
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income from continuing operations before income taxes and equity interests

     (2,687     26,525        26,269        90,796   

Provision for (benefit from) income taxes

     2,267        6,248        (32,978     23,504   

Loss in equity interests, net

     (355     (246     (1,081     (1,242
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income from continuing operations

     (5,309     20,031        58,166        66,050   

Loss from discontinued operations, net of tax

     (67,716     (9,125     (316,886     (12,253
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income

   $ (73,025   $ 10,906      $ (258,720   $ 53,797   
  

 

 

   

 

 

   

 

 

   

 

 

 

*Basic(loss) earnings per share:

        

(Loss) income from continuing operations

   $ (0.05   $ 0.17      $ 0.52      $ 0.54   

Loss from discontinued operations, net of tax

     (0.61     (0.08     (2.81     (0.10
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic (loss) income per share

   $ (0.66   $ 0.09      $ (2.29   $ 0.44   
  

 

 

   

 

 

   

 

 

   

 

 

 

*Diluted(loss) earnings per share:

        

(Loss) income from continuing operations

   $ (0.05   $ 0.16      $ 0.51      $ 0.53   

Loss from discontinued operations, net of tax

     (0.61     (0.07     (2.78     (0.10
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted (loss) income per share

   $ (0.66   $ 0.09      $ (2.27   $ 0.43   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

        

Basic

     111,098        121,378        112,866        122,002   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     111,098        122,685        113,995        123,923   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income before depreciation, amortization, and non-cash restructuring:

        

Operating (loss) income

   $ (988   $ 27,085      $ 32,152      $ 93,767   

Depreciation and amortization of intangibles

     16,386        16,740        64,280        68,666   

Amortization of stock-based compensation

     6,985        7,895        28,174        41,458   

Restructuring non-cash expenses

     1,125        130        7,541        106   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income before depreciation, amortization, and non-cash restructuring

   $ 23,508      $ 51,850      $ 132,147      $ 203,997   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

* Earnings per share may not add in certain periods due to rounding.

 

8


MONSTER WORLDWIDE, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

     Twelve Months Ended  
     2012     2011  

Cash flows provided by operating activities:

    

Net (loss) income

   $ (258,720   $ 53,797   
  

 

 

   

 

 

 

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

    

Depreciation and amortization

     70,000        74,600   

Provision for doubtful accounts

     4,469        3,329   

Non-cash compensation

     28,964        42,523   

Deferred income taxes

     (9,814     (5,659

Non-cash restructuring write-offs and other

     7,505        130   

Loss in equity interests, net

     1,081        1,242   

Gains on auction rate securities

     —           (1,732

Tax benefit from change in uncertain tax positions

     (43,193     —      

Impairment of goodwill and intangibles

     267,855        —      

Changes in assets and liabilities, net of acquisitions:

    

Accounts receivable

     (2,013     (856

Prepaid and other

     13,332        (5,510

Deferred revenue

     (17,456     5,056   

Accounts payable, accrued liabilities and other

     (8,683     (17,243
  

 

 

   

 

 

 

Total adjustments

     312,047        95,880   
  

 

 

   

 

 

 

Net cash provided by operating activities

     53,327        149,677   
  

 

 

   

 

 

 

Cash flows used for investing activities:

    

Capital expenditures

     (59,572     (61,818

Cash funded to equity investee

     (2,077     (2,559

Sales and maturities of marketable securities

     —           1,732   

Dividends received from unconsolidated investee

     728        443   
  

 

 

   

 

 

 

Net cash used for investing activities

     (60,921     (62,202
  

 

 

   

 

 

 

Cash flows (used for) provided by financing activities:

    

Proceeds from borrowings on credit facilities

     224,718        108,722   

Payments on borrowings on credit facilities

     (305,709     (44,501

Proceeds from borrowings on term loan

     100,000        —      

Payments on borrowings on term loan

     (43,750     —      

Repurchase of common stock

     (65,611     (41,973

Tax withholdings related to net share settlements of restricted stock awards and units

     (8,482     (17,139

Proceeds from the exercise of employee stock options

     23        23   
  

 

 

   

 

 

 

Net cash (used for) provided by financing activities

     (98,811     5,132   
  

 

 

   

 

 

 

Effects of exchange rates on cash

     4,273        (5,459

Net (decrease) increase in cash and cash equivalents

     (102,132 )      87,148   

Cash and cash equivalents, beginning of period

     250,317        163,169   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 148,185      $ 250,317   
  

 

 

   

 

 

 

Free cash flow:

    

Net cash provided by operating activities

   $ 53,327      $ 149,677   

Less: Capital expenditures

     (59,572     (61,818
  

 

 

   

 

 

 

Free cash flow

   $ (6,245   $ 87,859   
  

 

 

   

 

 

 

 

9


MONSTER WORLDWIDE, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

      December 31,
2012
     December 31,
2011
 

Assets:

     

Cash and cash equivalents

   $ 148,185       $ 250,317   

Accounts receivable, net

     335,905         343,546   

Property and equipment, net

     147,613         156,282   

Goodwill and intangibles, net

     919,854         1,184,122   

Other assets

     111,606         123,731   

Current assets of discontinued operations

     21,702         —      
  

 

 

    

 

 

 

Total Assets

   $ 1,684,865       $ 2,057,998   
  

 

 

    

 

 

 

Liabilities and Stockholders’ Equity:

     

Accounts payable, accrued expenses and other current liabilities

   $ 181,914       $ 213,817   

Deferred revenue

     351,546         380,310   

Current portion of long-term debt and borrowings on credit facility

     18,264         188,836   

Long-term income taxes payable

     63,465         94,750   

Long-term debt, less current portion

     145,975         —      

Other long-term liabilities

     10,406         16,158   

Current liabilities of discontinued operations

     33,256         —      
  

 

 

    

 

 

 

Total Liabilities

   $ 804,826       $ 893,871   
  

 

 

    

 

 

 

Stockholders’ Equity

     880,039         1,164,127   
  

 

 

    

 

 

 

Total Liabilities and Stockholders’ Equity

   $ 1,684,865       $ 2,057,998   
  

 

 

    

 

 

 

 

10


MONSTER WORLDWIDE, INC.

UNAUDITED NON-GAAP STATEMENTS OF OPERATIONS AND RECONCILIATIONS

(in thousands, except per share amounts)

 

     Three Months Ended December 31, 2012     Three Months Ended December 31, 2011  
     As
Reported
    Non GAAP
Adjustments
     Consolidated
Non GAAP
    As
Reported
    Non GAAP
Adjustments
     Consolidated
Non GAAP
 

Revenue

   $ 211,244      $ —           $ 211,244      $ 234,786      $ —           $ 234,786     

Salaries and related

     97,401        —             97,401        108,381        —             108,381     

Office and general

     55,497        (1,347     g         54,150        52,763        —             52,763     

Marketing and promotion

     44,503        —             44,503        43,522        —             43,522     

Restructuring and other special charges

     14,831        (14,831     e         —          3,035        (3,035     e         —       
  

 

 

   

 

 

      

 

 

   

 

 

   

 

 

      

 

 

   

Total operating expenses

     212,232        (16,178        196,054        207,701        (3,035        204,666     
  

 

 

   

 

 

      

 

 

   

 

 

   

 

 

      

 

 

   

Operating (loss) income

     (988     16,178           15,190        27,085        3,035           30,120     

Operating margin

     -0.5          7.2     11.5          12.8  

Interest and other, net

     (1,699     —             (1,699     (560     —             (560  
  

 

 

   

 

 

      

 

 

   

 

 

   

 

 

      

 

 

   

(Loss) income from continuing operations before income taxes and equity interests

     (2,687     16,178           13,491        26,525        3,035           29,560     

Provision for income taxes

     2,267        2,173        i,j         4,440        6,248        715        j         6,963     

Loss in equity interests, net

     (355     —             (355     (246     —             (246  
  

 

 

   

 

 

      

 

 

   

 

 

   

 

 

      

 

 

   

(Loss) income from continuing operations

     (5,309     14,005           8,696        20,031        2,320           22,351     
  

 

 

   

 

 

      

 

 

   

 

 

   

 

 

      

 

 

   

(Loss) income from discontinued operations

     (67,716     67,716        k         —          (9,125     9,125        k         —       
  

 

 

   

 

 

      

 

 

   

 

 

   

 

 

      

 

 

   

Net (loss) income

   $ (73,025   $ 81,721         $ 8,696      $ 10,906      $ 11,445         $ 22,351     
  

 

 

   

 

 

      

 

 

   

 

 

   

 

 

      

 

 

   

Diluted (loss) earnings per share:*

                    

(Loss) income from continuing operations

   $ (0.05   $ 0.12         $ 0.08      $ 0.16      $ 0.02         $ 0.18     

(Loss) income from discontinued operations, net of tax

     (0.61     0.61           —          (0.07     0.07           —       
  

 

 

   

 

 

      

 

 

   

 

 

   

 

 

      

 

 

   

Diluted (loss) income per share

   $ (0.66   $ 0.73         $ 0.08      $ 0.09      $ 0.09         $ 0.18     
  

 

 

   

 

 

      

 

 

   

 

 

   

 

 

      

 

 

   

Weighted average shares outstanding:

                    

Basic

     111,098        111,098           111,098        121,378        121,378           121,378     

Diluted

     111,098        112,129           112,129        122,685        122,685           122,685     
     Twelve Months Ended December 31, 2012     Twelve Months Ended December 31, 2011  
     As
Reported
    Non GAAP
Adjustments
     Consolidated
Non GAAP
    As
Reported
    Non GAAP
Adjustments
     Consolidated
Non GAAP
 

Revenue

   $ 890,392      $ —           $ 890,392      $ 993,644        2,658        a       $ 996,302        l   

Salaries and related

     408,305        —             408,305        480,398        (1,170     b,c         479,228     

Office and general

     226,601        (4,659     g         221,942        224,914        (6,829     c,d         218,085     

Marketing and promotion

     188,326        —             188,326        189,850        —             189,850     

Restructuring and other special charges

     40,358        (40,358     e         —          4,715        (4,715     e         —       

Recovery of restitution award from former executive

     (5,350     5,350        f         —          —          —             —       
  

 

 

   

 

 

      

 

 

   

 

 

   

 

 

      

 

 

   

Total operating expenses

     858,240        (39,667        818,573        899,877        (12,714        887,163     
  

 

 

   

 

 

      

 

 

   

 

 

   

 

 

      

 

 

   

Operating income

     32,152        39,667           71,819        93,767        15,372           109,139     

Operating margin

     3.6          8.1     9.4          11.0  

Interest and other, net

     (5,883     —             (5,883     (2,971     (1,120     h         (4,091  
  

 

 

   

 

 

      

 

 

   

 

 

   

 

 

      

 

 

   

Income from continuing operations before income taxes and equity interests

     26,269        39,667           65,936        90,796        14,252           105,048     

(Benefit from) provision for income taxes

     (32,978     55,075        i,j         22,097        23,504        4,041        j         27,545     

Loss in equity interests, net

     (1,081     —             (1,081     (1,242     —             (1,242  
  

 

 

   

 

 

      

 

 

   

 

 

   

 

 

      

 

 

   

Income (loss) from continuing operations

     58,166        (15,408        42,758        66,050        10,211           76,261     
  

 

 

   

 

 

      

 

 

   

 

 

   

 

 

      

 

 

   

(Loss) income from discontinued operations

     (316,886     316,886        k         —          (12,253     12,253        k         —       
  

 

 

   

 

 

      

 

 

   

 

 

   

 

 

      

 

 

   

Net (loss) income

   $ (258,720   $ 301,478         $ 42,758      $ 53,797      $ 22,464         $ 76,261     
  

 

 

   

 

 

      

 

 

   

 

 

   

 

 

      

 

 

   

Diluted (loss) earnings per share:*

                    

Income (loss) from continuing operations

   $ 0.51      $ (0.14      $ 0.38      $ 0.53      $ 0.08         $ 0.62     

(Loss) income from discontinued operations, net of tax

     (2.78     2.78           —          (0.10     0.10           —       
  

 

 

   

 

 

      

 

 

   

 

 

   

 

 

      

 

 

   

Diluted (loss) income per share

   $ (2.27   $ 2.64         $ 0.38      $ 0.43      $ 0.18         $ 0.62     
  

 

 

   

 

 

      

 

 

   

 

 

   

 

 

      

 

 

   

Weighted average shares outstanding:

                    

Basic

     112,866        112,866           112,866        122,002        122,002           122,002     

Diluted

     113,995        113,995           113,995        123,923        123,923           123,923     

Note Regarding ProForma Adjustments:

The financial information included herein contains certain non-GAAP financial measures. This information is not intended to be used in place of the financial information prepared and presented in accordance with GAAP, nor is it intended to be considered in isolation. We believe that the above presentation of non-GAAP measures provide useful information to management and investors regarding certain core operating and business trends relating to our results of operations, exclusive of certain restructuring related and other special charges.

ProForma adjustments consist of the following:

 

a Deferred revenue fair value adjustment required under existing purchase accounting rules relating to the acquisition of the HotJobs Assets in Q3 2010.
b Severance charges primarily related to the reorganization of the product & technology groups on a global basis.
c Acquisition and integration related costs associated with the acquisition of the HotJobs Assets.
d. Charges related to changes in sublet assumptions on previously exited facilities.
e Restructuring related charges pertaining to the actions that the Company announced in January and November 2012 as well as charges related to the Company no longer engaging in the arbitrage lead generation business in 2011. These charges include costs related to the reduction in the Company’s workforce, fixed asset write-offs, costs relating to the consolidation of certain office facilities, and professional fees.
f Restitution award paid by a former executive to the United States government in connection with the Company’s historical stock option practices.
g Costs directly associated with our previously announced review of strategic alternatives.
h Net realized gains on available for sale securities.
i Non-GAAP income tax adjustment includes the reversal of income tax reserves on uncertain tax positions, the tax effects of an investment writeoff, certain tax evaluation adjustments, and restructuring related items during the year.
j Income tax adjustment is calculated using the effective tax rate of the reported period multiplied by the ProForma adjustment to income (loss) before income taxes and loss in equity interests and for the effects for certain tax evaluation adjustments
k Represents the results of discontinued operations related to our decision to sell our Careers-China business. The sale closed in February 2013. Additionally, we have decided to cease operations in Latin America and Turkey during the quarter.
l Excluding the effect of the arbitrage lead generation business which contributed $22,239 of revenue in the first half of 2011, Non-GAAP revenue for the twelve months ended 2011 was $971,406.
* Earnings per share may not add in certain periods due to rounding.

 

11


MONSTER WORLDWIDE, INC.

UNAUDITED NON-GAAP OPERATING SEGMENT INFORMATION

(in thousands)

 

Three Months Ended December 31, 2012

   Careers -
North America
    Careers -
International
    Internet
Advertising
& Fees
    Corporate
Expenses
    Total  

Revenue—GAAP

   $  111,544      $ 81,128      $ 18,572        $  211,244   

Non GAAP Adjustments

     —          —          —            —     
  

 

 

   

 

 

   

 

 

     

 

 

 

Revenue—Non GAAP

   $ 111,544      $ 81,128      $ 18,572        $ 211,244   
  

 

 

   

 

 

   

 

 

     

 

 

 

Operating income (loss)—GAAP

   $ 7,407      $ (3,684   $ 4,156      $ (8,867   $ (988

Non GAAP Adjustments

     6,756        6,998        958        1,466        16,178   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)—Non GAAP

   $ 14,163      $ 3,314      $ 5,114      $ (7,401   $ 15,190   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

OIBDA—GAAP

   $ 19,032      $ 4,392      $ 6,137      $ (6,053   $ 23,508   

Non GAAP Adjustments

     5,888        6,741        958        1,466        15,053   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

OIBDA—Non GAAP

   $ 24,920      $ 11,133      $ 7,095      $ (4,587   $ 38,561   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating margin—GAAP

     6.6     -4.5     22.4       -0.5

Operating margin—Non GAAP

     12.7     4.1     27.5       7.2

OIBDA margin—GAAP

     17.1     5.4     33.0       11.1

OIBDA margin—Non GAAP

     22.3     13.7     38.2       18.3

Three Months Ended December 31, 2011

   Careers -
North America
    Careers -
International
    Internet
Advertising
& Fees
    Corporate
Expenses
    Total  

Revenue

   $ 118,600      $ 94,872      $ 21,314        $ 234,786   

Non GAAP Adjustments

     —          —          —            —     
  

 

 

   

 

 

   

 

 

     

 

 

 

Revenue—Non GAAP

   $ 118,600      $ 94,872      $ 21,314        $ 234,786   
  

 

 

   

 

 

   

 

 

     

 

 

 

Operating income (loss)—GAAP

   $ 20,206      $ 18,725      $ 1,454      $ (13,300   $ 27,085   

Non GAAP Adjustments

     450        161        2,424        —          3,035   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)—Non GAAP

   $ 20,656      $ 18,886      $ 3,878      $ (13,300   $ 30,120   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

OIBDA—GAAP

   $ 30,316      $ 26,101      $ 4,608      $ (9,175   $ 51,850   

Non GAAP Adjustments

     450        161        2,293        —          2,904   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

OIBDA—Non GAAP

   $ 30,766      $ 26,262      $ 6,901      $ (9,175   $ 54,754   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating margin—GAAP

     17.0     19.7     6.8       11.5

Operating margin—Non GAAP

     17.4     19.9     18.2       12.8

OIBDA margin—GAAP

     25.6     27.5     21.6       22.1

OIBDA margin—Non GAAP

     25.9     27.7     32.4       23.3

Twelve Months Ended December 31, 2012

   Careers -
North America
    Careers -
International
    Internet
Advertising
& Fees
    Corporate
Expenses
    Total  

Revenue—GAAP

   $ 462,962      $ 351,130      $ 76,300        $ 890,392   

Non GAAP Adjustments

     —          —          —            —     
  

 

 

   

 

 

   

 

 

     

 

 

 

Revenue—Non GAAP

   $ 462,962      $ 351,130      $ 76,300        $ 890,392   
  

 

 

   

 

 

   

 

 

     

 

 

 

Operating income (loss)—GAAP

   $ 42,686      $ 13,076      $ 17,721      $ (41,331   $ 32,152   

Non GAAP Adjustments

     20,969        16,279        2,124        295        39,667   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)—Non GAAP

   $ 63,655      $ 29,355      $ 19,845      $ (41,036   $ 71,819   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

OIBDA—GAAP

   $ 90,103      $ 42,609      $ 26,669      $ (27,234   $ 132,147   

Non GAAP Adjustments

     14,853        15,489        1,501        283        32,126   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

OIBDA—Non GAAP

   $ 104,956      $ 58,098      $ 28,170      $ (26,951   $ 164,273   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating margin—GAAP

     9.2     3.7     23.2       3.6

Operating margin—Non GAAP

     13.7     8.4     26.0       8.1

OIBDA margin—GAAP

     19.5     12.1     35.0       14.8

OIBDA margin—Non GAAP

     22.7     16.5     36.9       18.4

Twelve Months Ended December 31, 2011

   Careers -
North America
    Careers -
International
    Internet
Advertising
& Fees
    Corporate
Expenses
    Total  

Revenue

   $ 485,356      $ 398,408      $ 109,880        $ 993,644   

Non GAAP Adjustments

     2,658        —          —            2,658   
  

 

 

   

 

 

   

 

 

     

 

 

 

Revenue—Non GAAP

   $ 488,014      $ 398,408      $ 109,880        $ 996,302   
  

 

 

   

 

 

   

 

 

     

 

 

 

Operating income (loss)—GAAP

   $ 74,631      $ 69,319      $ 5,214      $ (55,397   $ 93,767   

Non GAAP Adjustments

     3,335        434        4,126        7,477        15,372   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss) —Non GAAP

   $ 77,966      $ 69,753      $ 9,340      $ (47,920   $ 109,139   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

OIBDA—GAAP

   $ 122,776      $ 104,273      $ 19,250      $ (42,302   $ 203,997   

Non GAAP Adjustments

     3,335        456        3,997        7,477        15,265   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

OIBDA—Non GAAP

   $ 126,111      $ 104,729      $ 23,247      $ (34,825   $ 219,262   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating margin—GAAP

     15.4     17.4     4.7       9.4

Operating margin—Non GAAP

     16.0     17.5     8.5       11.0

OIBDA margin—GAAP

     25.3     26.2     17.5       20.5

OIBDA margin—Non GAAP

     25.8     26.3     21.2       22.0

 

12