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8-K - FORM 8-K - MONSTER WORLDWIDE, INC.d626574d8k.htm
EX-2.1 - EX-2.1 - MONSTER WORLDWIDE, INC.d626574dex21.htm
EX-99.3 - EX-99.3 - MONSTER WORLDWIDE, INC.d626574dex993.htm
EX-99.1 - EX-99.1 - MONSTER WORLDWIDE, INC.d626574dex991.htm

Exhibit 99.2

 

LOGO

FINANCIAL SUPPLEMENT

September 30, 2013

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

Discontinued Operations

During the third quarter of 2012, as part of the Company’s review of strategic alternatives, the Company made the decision to sell its Careers-China business. The sale of the Careers-China business to Saongroup, Ltd. (“Saongroup”) was completed on February 5, 2013. The Company received a 10% minority interest in the combined China business of Saongroup (as Saongroup has a Chinese operation as well). For the three months ended September 30, 2012, the Company reported a loss from discontinued operations, net of tax, of $235.4 million, which included a $216.2 million goodwill impairment charge as well as a $9.1 million charge related to the recording of a full valuation allowance associated with Careers—China deferred tax assets. For the nine months ended September 30, 2012, the Company reported a loss from discontinued operations, net of tax, of $249.2 million.

Prior to the close of the sale of Careers-China in the first quarter of 2013, the Company incurred charges relating to severance benefits associated with terminated employees, retention benefits for employees who will remain with the combined operations and certain lease obligation costs. At February 5, 2013, there was $23.1 million of accumulated unrealized currency translation gain related to the net assets of Careers-China. With the sale of Careers-China on February 5, 2013, the Company recorded the foreign currency translation adjustment as a reduction of the loss on disposition of discontinued operations. On October 25, 2013, the Company received $1.8 million of funds previously held in escrow relating to the sale of Careers-China, which has been recorded as a gain in the consolidated statements of operations for the quarter ended September 30, 2013. Additionally, the Company recorded a tax benefit of $0.9 million and $4.9 million for the three and nine months ended September 30, 2013, respectively. Accordingly, the Company recorded income from discontinued operations related to Careers-China, net of tax, of $2.5 million in the three months ended September 30, 2013, and a loss from discontinued operations, net of tax, of $1.7 million in the nine months ended September 30, 2013. The Company does not expect to incur significant additional charges in future periods relating to Careers-China.

During the fourth quarter of 2012, the Company made the strategic decision to discontinue operations in Latin America and Turkey. All of the Latin America and Turkey business operations were discontinued on or before December 31, 2012. The Company incurred approximately $8.0 million of costs associated with the shutdown of these businesses in the fourth quarter of 2012. For the three and nine months ended September 30, 2013, the Company recorded additional costs of $0.4 million and $3.6 million, respectively, which was primarily relating to severance costs associated with terminated employees of our operations in Latin America and Turkey. Additionally, the Company recorded a tax benefit of $1.0 million and $1.5 million for the three and nine months ended September 30, 2013, respectively. Accordingly, the Company recorded income from discontinued operations related to Latin America and Turkey, net of tax, of $0.6 million in the three months ended September 30, 2013, and a loss from discontinued operations, net of tax, of $2.1 million in the nine months ended September 30, 2013. The Company does not expect to incur significant additional charges in future periods relating to Latin America or Turkey.

Restructuring

On January 24, 2012, the Company committed to a plan to take a series of restructuring actions. The Company’s decision to adopt the restructuring actions resulted from the Company’s desire to provide the Company with more flexibility to invest in marketing and sales activities in order to improve its long-term growth prospects and profitability. The restructuring actions included reducing the Company’s workforce, consolidation of certain office facilities and the impairment of certain fixed assets. The Company incurred $0.2 million and $25.5 million of restructuring costs in the three and nine months ended September 30, 2012, respectively.

 

2


On November 8, 2012, the Company announced actions to concentrate resources on core businesses within North America and key European and Asian markets with increased spending in marketing and sales. The restructuring actions included reducing the Company’s workforce, consolidating certain office facilities and impairing certain fixed assets. The Company incurred $20.0 million of restructuring costs in the nine months ended September 30, 2013.

Strategic Alternatives

On March 1, 2012, the Company announced that it had resolved to explore strategic alternatives to maximize value for the Company’s stockholders. During the three months ended September 30, 2012, the Company incurred $1.5 million of costs related to the review of strategic alternatives. During the nine months ended September 30, 2013 and 2012, the Company incurred $2.9 million and $3.3 million of costs related to the review of strategic alternatives, respectively.

Income Tax Benefit

In the third quarter of 2012, the Company settled a tax examination in the United States and recognized $38.0 million of previously unrecognized tax benefits, which on a net of tax basis impacted the effective tax rate by $29.0 million. The Company also reversed accrued interest related to unrecognized tax benefits of $8.0 million, which on a net of tax basis impacted the effective tax rate by $4.9 million. In the first quarter of 2012, the Company recognized approximately $20.8 million of net tax benefits relating to the Company’s restructuring activities. These items have been excluded from our non-GAAP financial statements in the three and nine months ended September 30, 2012.

In the nine months ended September 30, 2013, the Company recognized an income tax benefit relating to the reversal of uncertain tax positions which has been excluded from our non-GAAP financial statements in the nine months ended September 30, 2013.

Recovery of Restitution Award from Former Executive

In May 2009, the former Chief Operating Officer of the Company was convicted of securities fraud in connection with the Company’s historical stock option granting practices. As a result of his conviction, he was ordered to pay an amount approximating $5.6 million in a civil forfeiture to the federal government. The Company filed a petition with the United States Department of Justice (“DOJ”) seeking such sum in partial restitution for the damages the former Chief Operating Officer caused to the Company. The DOJ granted the Company’s request during the first quarter of 2012 and remitted $5.6 million to the Company in April 2012, which resulted in a net $5.4 million gain in the six months ended June 30, 2012 after deducting legal fees incurred by the Company.

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 from continuing operations, operating margin, income from continuing operations, (loss) income from discontinued operations, net of tax, 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 programs; and the results of the businesses in Careers – China, Latin America and Turkey as they have been classified as discontinued operations. 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.

 

3


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 costs incurred in connection with the Company’s restructuring programs. 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.

Free cash flow is defined as cash flow from operating activities less capital expenditures. Free cash flow is considered a liquidity measure and provides useful information about the Company’s ability to generate cash after investments in property and equipment. Free cash flow reflected herein is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies. Free cash flow does not reflect the total change in the Company’s cash position for the period and should not be considered a substitute for such a measure.

Net cash and securities are defined as cash and cash equivalents plus short-term and long-term marketable securities, less total debt. Total available liquidity is defined as cash and cash equivalents, plus short-term and long-term marketable securities, plus unused borrowings under our credit facility. The Company considers net cash and securities and total available liquidity to be important measures of liquidity and indicators of its ability to meet its ongoing obligations. The Company also uses net cash and securities and total available liquidity, among other measures, in evaluating its choices for capital deployment. Net cash and securities and total available liquidity are presented herein as non-GAAP measures and may not be comparable to similarly titled measures used by other companies.

Selected financial ratios

We have included selected financial ratios in this financial supplement in order to assist investors to further evaluate our business. Our definitions and calculations are as follows:

Annualized return on equity

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

Annualized net income / Average stockholders’ equity

Book value per share

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

Stockholders’ equity / Total shares outstanding

Cash and marketable securities per share

We calculate cash and marketable securities per share as follows:

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

 

4


Monster Worldwide, Inc.

Statements of Operations

(unaudited, in thousands, except per share amounts)

 

     Trended Data  

Summary P&L Information

   Q1 2012     Q2 2012     Q3 2012     Q4 2012     FY 2012     Q1 2013     Q2 2013     Q3 2013  

Monster Careers

   $ 214,369      $ 205,034      $ 202,017      $ 192,672      $ 814,092      $ 193,654      $ 181,819      $ 178,737   

Internet Advertising & Fees

     19,381        19,543        18,804        18,572        76,300        18,332        18,239        18,080   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

     233,750        224,577        220,821        211,244        890,392        211,986        200,058        196,817   

Salary and related

     104,060        92,558        93,097        90,416        380,131        90,781        83,997        88,030   

Office and general

     36,643        41,993        44,575        39,111        162,322        35,028        36,537        36,997   

Marketing and promotion

     49,298        51,426        43,099        44,503        188,326        49,267        43,394        38,089   

Recovery of restitution award from former executive

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

Restructuring and other special charges

     24,268        1,015        244        14,831        40,358        13,167        6,828        —     

Depreciation expense

     12,782        12,867        12,991        13,286        51,926        13,000        12,644        12,297   

Amortization of restricted stock

     8,201        7,254        5,683        6,985        28,123        6,794        5,470        4,901   

Non-cash stock option expense

     51        —          —          —          51        —          —          —     

Amortization of intangibles

     3,083        3,085        3,085        3,100        12,353        3,104        3,081        2,248   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

     233,036        210,198        202,774        212,232        858,240        211,141        191,951        182,562   

Operating income (loss)

     714        14,379        18,047        (988     32,152        845        8,107        14,255   

Interest and other, net

     (1,463     (1,189     (1,532     (1,699     (5,883     (1,268     (1,357     (1,482
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) Income before income taxes and equity interests

     (749     13,190        16,515        (2,687     26,269        (423     6,750        12,773   

(Benefit from) provision for income taxes

     (14,304     3,930        (24,871     2,267        (32,978     (11,999     2,366        4,480   

Loss in equity interests, net

     (200     (255     (271     (355     (1,081     (458     (245     (119
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

     13,355        9,005        41,115        (5,309     58,166        11,118        4,139        8,174   

(Loss) income from discontinued operations, net of tax

     (9,613     (4,203     (235,354     (67,716     (316,886     (6,134     (759     3,095   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 3,742      $ 4,802      $ (194,239   $ (73,025   $ (258,720   $ 4,984      $ 3,380      $ 11,269   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic income (loss) per share:

                

Income (loss) from continuing operations

     0.11        0.08        0.37        (0.05     0.52        0.10        0.04        0.08   

(Loss) income from discontinued operations, net of tax

     (0.08     (0.04     (2.12     (0.61     (2.81     (0.06     (0.01     0.03   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 0.03      $ 0.04      $ (1.75   $ (0.66   $ (2.29   $ 0.04      $ 0.03      $ 0.11   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted income (loss) per share:

                

Income (loss) from continuing operations

     0.11        0.08        0.37        (0.05     0.51        0.10        0.04        0.08   

(Loss) income from discontinued operations, net of tax

     (0.08     (0.04     (2.10     (0.61     (2.78     (0.06     (0.01     0.03   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 0.03      $ 0.04      $ (1.73   $ (0.66   $ (2.27   $ 0.04      $ 0.03      $ 0.11   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted avg. shares outstanding:

                

Basic shares

     116,199        112,937        111,239        111,098        112,866        111,402        110,932        105,394   

Diluted shares

     117,611        114,038        112,212        111,098        113,995        112,637        111,937        105,967   

Global employees—continuing operations (ones)

     4,366        4,432        4,331        4,037        4,037        3,852        3,905        3,948   

Annualized revenue per average employee

   $ 207.4      $ 204.2      $ 201.6      $ 202.0      $ 203.8      $ 215.0      $ 206.3      $ 200.5   


Monster Worldwide, Inc.

Non-GAAP Statements of Operations

(Unaudited, in thousands, except for per share amounts)

 

     Trended Data  

Summary P&L Information

   Q1 2012     Q2 2012     Q3 2012     Q4 2012     FY 2012     Q1 2013     Q2 2013     Q3 2013  

Monster Careers

   $ 214,369      $ 205,034      $ 202,017      $ 192,672      $ 814,092      $ 193,654      $ 181,819      $ 178,737   

Internet Advertising & Fees

     19,381        19,543        18,804        18,572        76,300        18,332        18,239        18,080   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

     233,750        224,577        220,821        211,244        890,392        211,986        200,058        196,817   

Salary and related

     104,060        92,558        93,097        90,416        380,131        90,781        83,997        88,030   

Office and general

     36,643        40,164        43,092        37,764        157,663        33,653        34,992        36,997   

Marketing and promotion

     49,298        51,426        43,099        44,503        188,326        49,267        43,394        38,089   

Depreciation expense

     12,782        12,867        12,991        13,286        51,926        13,000        12,644        12,297   

Amortization of restricted stock

     8,201        7,254        5,683        6,985        28,123        6,794        5,470        4,901   

Non-cash stock option expense

     51        —          —          —          51        —          —          —     

Amortization of intangibles

     3,083        3,085        3,085        3,100        12,353        3,104        3,081        2,248   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

     214,118        207,354        201,047        196,054        818,573        196,599        183,578        182,562   

Operating income

     19,632        17,223        19,774        15,190        71,819        15,387        16,480        14,255   

Interest and other, net

     (1,463     (1,189     (1,532     (1,699     (5,883     (1,268     (1,357     (1,482
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes and equity interests

     18,169        16,034        18,242        13,491        65,936        14,119        15,123        12,773   

Provision for income taxes

     6,441        4,919        6,297        4,440        22,097        4,942        5,303        4,480   

Loss in equity interests, net

     (200     (255     (271     (355     (1,081     (458     (245     (119
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     11,528        10,860        11,674        8,696        42,758        8,719        9,575        8,174   

Diluted income per share:

                

Non-GAAP Income from continuing operations

   $ 0.10      $ 0.10      $ 0.10      $ 0.08      $ 0.38      $ 0.08      $ 0.09      $ 0.08   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Income from continuing operations excl. stock based comp

   $ 0.14      $ 0.14      $ 0.14      $ 0.12      $ 0.54      $ 0.12      $ 0.12      $ 0.11   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted avg. shares outstanding:

                

Basic shares

     116,199        112,937        111,239        111,098        112,866        111,402        110,932        105,394   

Diluted shares

     117,611        114,038        112,212        112,129        113,995        112,637        111,937        105,967   


Monster Worldwide, Inc.

Segment Information and Margin Analysis—GAAP and Non-GAAP

(unaudited, in thousands)

 

    Trended Data  
    Q1 2012     Q2 2012     Q3 2012     Q4 2012     FY 2012     Q1 2013     Q2 2013     Q3 2013  

Segment Revenue: GAAP

               

Careers—North America

  $ 119,774      $ 116,189      $ 115,455      $ 111,544      $ 462,962      $ 115,935      $ 109,717      $ 109,622   

Careers—International

    94,595        88,845        86,562        81,128        351,130        77,719        72,102        69,115   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Careers Revenue—GAAP

    214,369        205,034        202,017        192,672        814,092        193,654        181,819        178,737   

Internet Advertising & Fees Revenue—GAAP

    19,381        19,543        18,804        18,572        76,300        18,332        18,239        18,080   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster Revenue—GAAP

  $ 233,750      $ 224,577      $ 220,821      $ 211,244      $ 890,392      $ 211,986      $ 200,058      $ 196,817   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment operating income (loss): GAAP

               

Careers—North America

  $ 3,199      $ 14,911      $ 17,169      $ 7,407      $ 42,686      $ 12,423      $ 19,272      $ 16,346   

Careers—International

    2,881        6,336        7,543        (3,684     13,076        (8,991     (6,054     (325
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Careers operating income GAAP

    6,080        21,247        24,712        3,723        55,762        3,432        13,218        16,021   

Internet Advertising & Fees operating income GAAP

    3,268        5,307        4,990        4,156        17,721        6,262        6,312        5,902   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster operating income

  $ 9,348      $ 26,554      $ 29,702      $ 7,879      $ 73,483      $ 9,694      $ 19,530      $ 21,923   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Corporate expenses GAAP

    (8,634     (12,175     (11,655     (8,867     (41,331     (8,849     (11,423     (7,668
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster Consolidated operating income (loss) GAAP

  $ 714      $ 14,379      $ 18,047      $ (988   $ 32,152      $ 845      $ 8,107      $ 14,255   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment operating income (loss)(1): Non-GAAP

               

Careers—North America

  $ 17,369      $ 15,070      $ 17,053      $ 14,163      $ 63,655      $ 20,414      $ 20,818      $ 16,346   

Careers—International

    11,077        6,852        8,112        3,314        29,355        (3,900     (3,279     (325
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Careers operating income Non-GAAP

    28,446        21,922        25,165        17,477        93,010        16,514        17,539        16,021   

Internet Advertising & Fees operating income Non-GAAP

    4,351        5,381        4,999        5,114        19,845        6,347        6,568        5,902   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster operating income Non-GAAP

  $ 32,797      $ 27,303      $ 30,164      $ 22,591      $ 112,855      $ 22,861      $ 24,107      $ 21,923   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Corporate expenses Non-GAAP

    (13,165     (10,080     (10,390     (7,401     (41,036     (7,474     (7,627     (7,668
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster Consolidated operating income Non-GAAP

  $ 19,632      $ 17,223      $ 19,774      $ 15,190      $ 71,819      $ 15,387      $ 16,480      $ 14,255   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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


Monster Worldwide, Inc.

Segment Information and Margin Analysis—GAAP and Non-GAAP

(unaudited, in thousands)

 

    Trended Data  

Summary P&L Information

  Q1 2012     Q2 2012     Q3 2012     Q4 2012     FY 2012     Q1 2013     Q2 2013     Q3 2013  

Revenue—GAAP

  $ 233,750      $ 224,577      $ 220,821      $ 211,244      $ 890,392      $ 211,986      $ 200,058      $ 196,817   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA—GAAP (1)

  $ 31,214      $ 37,619      $ 39,806      $ 23,509      $ 132,148      $ 24,518      $ 33,842      $ 33,701   

Depreciation expense

    12,782        12,867        12,991        13,286        51,926        13,000        12,644        12,297   

Amortization of restricted stock

    8,201        7,254        5,683        6,985        28,123        6,794        5,470        4,901   

Non-cash stock option expense

    51        —          —          —          51        —          —          —     

Restructuring non-cash charges

    6,383        34        —          1,126        7,543        775        4,540        —     

Amortization of intangibles

    3,083        3,085        3,085        3,100        12,353        3,104        3,081        2,248   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)—GAAP

  $ 714      $ 14,379      $ 18,047      $ (988   $ 32,152      $ 845      $ 8,107      $ 14,255   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Recovery of restitution award from former executive

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

Non-GAAP fees associated with strategic alternatives

    —          1,829        1,483        1,347        4,659        1,375        1,545        —     

Restructuring non-cash charges

    6,383        34        —          1,126        7,543        775        4,540        —     

Restructuring expenses, less non-cash items

    17,885        981        244        13,705        32,815        12,392        2,288        —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Non-GAAP Adjustments

    18,918        2,844        1,727        16,178        39,667        14,542        8,373        —     

Operating income Non-GAAP(1)

  $ 19,632      $ 17,223      $ 19,774      $ 15,190      $ 71,819      $ 15,387      $ 16,480      $ 14,255   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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


Monster Worldwide, Inc.

Statements of Cash Flows

(unaudited, in thousands)

 

    Trended Data  
    Q1 2012     Q2 2012     Q3 2012     Q4 2012     FY 2012     Q1 2013     Q2 2013     Q3 2013  

Cash flows provided by (used for) operating activities:

               

Net income (loss)

  $ 3,742      $ 4,802      $ (194,239   $ (73,025   $ (258,720   $ 4,984      $ 3,380      $ 11,269   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

               

Depreciation and amortization

    17,445        17,518        17,778        17,259        70,000        16,104        15,725        14,545   

Recovery of restitution award from former executive

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

Provision for doubtful accounts

    698        656        710        2,405        4,469        535        897        318   

Non-cash compensation

    8,324        7,429        5,829        7,382        28,964        6,794        5,470        4,901   

Deferred income taxes

    (8,499     1,499        6,706        (9,520     (9,814     (2,172     (435     4,825   

Non-cash restructuring charges and other

    6,383        34        —          1,088        7,505        775        4,540        —     

Loss in equity interests, net

    200        255        271        355        1,081        458        245        119   

Tax benefit from change in uncertain tax positions

    —          —          (43,193     —          (43,193     (12,869     —          (1,486

Impairment of goodwill and intangibles

    —          —          216,221        51,634        267,855        —          —          —     

Amount reclassified from accumulated other comprehensive income

    —          —          —          —          —          (23,109     —          —     

Excess income tax benefit from equity compensation plans

    —          —          —          —          —          —          (2,044     (1,970

Changes in assets and liabilities, net of acquisitions:

               

Accounts receivable

    (11,608     16,947        8,002        (15,354     (2,013     5,907        22,734        12,820   

Prepaid and other

    (13,582     8,486        16,205        2,223        13,332        14,690        865        (3,371

Deferred revenue

    23,752        (27,523     (24,506     10,821        (17,456     (5,039     (26,203     (16,582

Accounts payable, accrued liabilities, and other

    (258     (28,584     (2,062     22,221        (8,683     (15,695     (9,771     (23,137
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total adjustments

    17,505        2,067        201,961        90,514        312,047        (13,621     12,023        (9,018
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used for) operating activities

    21,247        6,869        7,722        17,489        53,327        (8,637     15,403        2,251   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows used for investing activities:

               

Capital expenditures

    (12,700     (20,551     (13,651     (12,670     (59,572     (9,149     (9,239     (6,602

Cash funded to and dividends received from equity investee and other

    (779     728        (1,298     —          (1,349     623        (484     (2,638
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used for investing activities

    (13,479     (19,823     (14,949     (12,670     (60,921     (8,526     (9,723     (9,240
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows (used for) provided by financing activities:

               

Proceeds from borrowings on credit facilities

    189,700        3,655        28,000        3,363        224,718        17,500        —          52,000   

Payments on borrowings on credit facilities

    (225,022     (46,494     (286     (33,907     (305,709     (11,399     (28,400     —     

Proceeds from borrowings on term loan

    100,000        —          —          —          100,000        —          —          —     

Payments on borrowings on term loan

    (40,000     (1,250     (1,250     (1,250     (43,750     (1,250     (1,875     (1,875

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

    (2,475     (3,564     (1,991     (452     (8,482     (1,793     (3,194     (927

Repurchase of common stock

    (33,335     (25,577     (6,699     —          (65,611     —          (23,378     (37,404

Excess income tax benefit from equity compensation plans

    —          —          —          —          —          —          2,044        1,970   

Proceeds from the exercise of employee stock options

    23        —          —          —          23        —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used for) provided by financing activities

    (11,109     (73,230     17,774        (32,246     (98,811     3,058        (54,803     13,764   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effects of exchange rates on cash

    5,625        (8,957     7,096        509        4,273        (3,172     (2,452     837   

Net increase (decrease) in cash and cash equivalents

    2,284        (95,141     17,643        (26,918     (102,132     (17,277     (51,575     7,612   

Cash and cash equivalents, beginning of period

    250,317        252,601        157,460        175,103        250,317        148,185        130,908        79,333   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents, end of period

  $ 252,601      $ 157,460      $ 175,103      $ 148,185      $ 148,185      $ 130,908      $ 79,333      $ 86,945   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


Monster Worldwide, Inc.

Consolidated Condensed Balance Sheets

(unaudited, in thousands, except selected financial ratios)

 

    Trended Data  
    March 2012     June 2012     September 2012     December 2012     March 2013     June 2013     September 2013  
ASSETS              

Current assets:

             

Cash and cash equivalents

  $ 252,601      $ 157,460      $ 175,103      $ 148,185      $ 130,908      $ 79,333      $ 86,945   

Accounts Receivable, net

    358,004        333,640        315,058        335,905        333,174        309,064        298,823   

Prepaid and other

    95,972        85,845        72,226        73,861        75,229        73,853        73,801   

Current assets of discontinued operations

    —          —          80,303        21,702        —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

    706,577        576,945        642,690        579,653        539,311        462,250        459,569   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Property and equipment, net

    159,632        161,432        150,541        147,613        137,998        132,393        128,409   

Goodwill

    1,142,194        1,118,942        878,688        887,271        880,715        873,166        891,623   

Intangibles, net

    47,603        43,729        35,105        32,583        29,385        26,096        24,219   

Investment in unconsolidated affiliates

    1,764        335        1,159        562        170        229        150   

Other assets

    43,679        44,135        30,412        37,183        38,644        41,078        39,960   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

  $ 2,101,449      $ 1,945,518      $ 1,738,595      $ 1,684,865      $ 1,626,223      $ 1,535,212      $ 1,543,930   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY              

Current liabilities:

             

Accounts payable, accrued expenses and other

  $ 218,681      $ 189,927      $ 170,700      $ 181,914      $ 186,142      $ 175,335      $ 151,778   

Deferred revenue

    408,334        372,239        332,723        351,546        356,468        329,492        315,645   

Borrowings on credit facility short-term

    4,545        8,143        7,941        11,389        —          —          —     

Current portion of long-term debt

    5,000        5,625        6,250        6,875        7,500        8,125        8,750   

Current liabilities of discontinued operations

    —          —          31,881        33,256        3,771        2,522        2,137   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

    636,560        575,934        549,495        584,980        553,881        515,474        478,310   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Long-term income taxes payable

    96,666        96,692        61,612        63,465        51,255        52,590        51,298   

Long-term debt, less current portion

    204,000        155,625        181,750        145,975        161,600        130,700        180,200   

Other liabilities

    12,542        16,042        10,897        10,406        8,352        8,994        5,752   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    949,768        844,293        803,754        804,826        775,088        707,758        715,560   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Common stock and class B common stock

    139        139        140        140        141        141        142   

Additional paid-in capital

    1,374,246        1,352,205        1,349,781        1,357,126        1,360,236        1,342,314        1,310,938   

Accumulated other comprehensive income

    79,223        46,006        76,284        87,162        50,163        41,024        62,046   

Accumulated deficit

    (301,927     (297,125     (491,364     (564,389     (559,405     (556,025     (544,756
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

    1,151,681        1,101,225        934,841        880,039        851,135        827,454        828,370   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ equity

  $ 2,101,449      $ 1,945,518      $ 1,738,595      $ 1,684,865      $ 1,626,223      $ 1,535,212      $ 1,543,930   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Selected Financial Ratios(1)

             

- Annualized return on equity

    1.3     1.7     -76.3     -32.2     2.3     1.6     5.4

- Book value per share

  $ 10.09      $ 9.85      $ 8.42      $ 7.92      $ 7.60      $ 7.64      $ 8.24   

- Cash and marketable securities per share

  $ 2.21      $ 1.41      $ 1.58      $ 1.33      $ 1.17      $ 0.73      $ 0.86   

- Net cash and securities

  $ 39,056      $ (11,933   $ (20,838   $ (16,054   $ (38,192   $ (59,492   $ (102,005

 

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