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8-K - FORM 8-K - MONSTER WORLDWIDE, INC.d671499d8k.htm
EX-99.2 - EX-99.2 - MONSTER WORLDWIDE, INC.d671499dex992.htm

Exhibit 99.1

 

LOGO

Monster Worldwide Reports Fourth Quarter 2013 Results

 

    Fourth Quarter Highlights

 

    Revenue Increases Sequentially to $199 Million Driven by Growth in North America and Europe

 

    Cash Flow from Operations of $25 Million

 

    Consolidated EBITDA of $31 Million; Careers – North America EBITDA Margin of 24%

 

    Non-GAAP EPS of $0.11; GAAP Loss Per Share of ($0.21) includes $0.26 of Non-Cash Income Tax Expense Primarily Related to South Korean Transaction

 

    Closed Sale of Minority Interest in South Korean Business for an Aggregate Purchase Price of $90 Million with Net Cash Proceeds of $86.5 Million

 

    Repurchased 8.2 Million Shares of Common Stock in the Fourth Quarter; Company Has Repurchased Approximately 20% of Outstanding Shares in 2013

New York, February 6, 2014 — Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the fourth quarter ended December 31, 2013.

“We are pleased with our fourth quarter financial results as we delivered sequential revenue growth in North America and Europe reflecting increased demand for Monster’s products. We were encouraged that the momentum we saw in the second and third quarters of 2013 in North America and parts of Europe accelerated in the fourth quarter, and we believe these positive sales trends will continue into 2014,” said Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide. “We continue to execute on several important initiatives that we believe will significantly improve our market share and increase profitability. We look forward to discussing these initiatives at our Investor Meeting on May 14th. Finally, consistent with our objective to enhance shareholder value, we repurchased $46 million worth of our shares in the quarter and continue to believe that repurchasing shares represents an extremely attractive investment.”

 

1


Fourth Quarter 2013 Results

Revenue of $199 million increased sequentially from $197 million in the third quarter of 2013. Revenue in the fourth quarter of 2012 was $211 million. Revenue from the Company’s North American and European operations increased on a sequential basis. Internet Advertising & Fees revenue for the fourth quarter of 2013 was $18 million compared to $19 million in last year’s comparable quarter. Historical quarterly revenue data is available in the Company’s supplemental financial information.

Consolidated GAAP operating expenses of $189 million decreased 11% compared to $212 million in the fourth quarter 2012. Consolidated net loss for the fourth quarter of 2013 was $20 million, or ($0.21) per share, which included $26 million of non-cash tax expense primarily associated with the completion of the previously announced sale of the Company’s minority interest in its South Korean business. In the fourth quarter of 2012, the Company reported a net loss of $73 million, or ($0.66) per share, which included a loss from discontinued operations, net of tax, of $68 million.

Non-GAAP net income was $10 million or $0.11 per share, compared to $13 million, or $0.12 per share in the fourth quarter of 2012. Non-GAAP operating expenses of $181 million decreased 5% year over year. EBITDA margin of 16% was led by Careers-North America with a 24% margin. 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.

Net cash provided by operating activities in the quarter was $25 million and free cash flow was $17 million. Deferred revenue grew sequentially to $342 million or 8% compared to $316 million as of September 30, 2013. Deferred revenue as of December 31, 2012 grew 6% on a sequential basis. The Company ended the quarter with total available liquidity of approximately $270 million, which includes $86.5 million of net proceeds associated with the South Korea transaction which closed in December 2013.

Share Repurchase

During the fourth quarter 2013, Monster repurchased 8.2 million shares of its common stock at an average price of $5.63 per share, for a total of $46 million. At December 31, 2013, there was approximately $93 million remaining under the Company’s previously announced $200 million share repurchase program. Year to date, the Company has repurchased 20.6 million shares, or approximately 20% of its total shares outstanding.

 

2


Full Year Results

Monster Worldwide reported total revenue of $808 million for the twelve months ended December 31, 2013 compared to $890 million in the same period last year, a 9% decrease. Monster Careers revenue decreased 10% to $735 million compared with $814 million in the 2012 period. Internet Advertising & Fees reported revenue of $73 million compared to $76 million in the prior year period. The Company reported net loss of $0.5 million, compared to a net loss of $259 million, or ($2.27) per share, in the prior period.

Company Provides Q1 EPS Guidance

First quarter 2014 Non-GAAP EPS from continuing operations is expected to be in the range of $0.06 to $0.10, which excludes approximately $9 million of stock-based compensation.

Historical data on Non-GAAP EPS excluding stock-based compensation expense is available in the Company’s supplemental financial information.

Conference Call and Webcast

Fourth quarter 2013 results will be discussed on Monster Worldwide’s quarterly conference call on February 6, 2014 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# 36864089. 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.

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.

 

3


For a replay of the conference call, please dial (855) 859-2056 or (404) 537-3406 and reference ID# 36864089. This number is valid until midnight on February 20, 2014.

Contacts

Investors: Andi Rose, Joele Frank, (212) 355-4449, arose@joelefrank.com

Media: Matt Anchin, (212) 351-7528, matt.anchin@monster.com

About Monster Worldwide

Monster Worldwide, Inc. (NYSE:MWW), is the global leader in successfully connecting job opportunities and people. Monster uses the world’s most advanced technology to help people Find Better, matching job seekers to opportunities via digital, social and mobile solutions including monster.com®, our flagship website, and employers to the best talent using a vast array of products and services. As an Internet pioneer, more than 200 million people have registered on the Monster Worldwide network. Today, with operations in more than 40 countries, Monster provides the broadest, most sophisticated job seeking, career management, recruitment and talent management capabilities globally. For more information visit 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 quarter 2014. 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.

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.

 

4


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; non-cash stock-based compensation expense, 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.

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.

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 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.

 

5


MONSTER WORLDWIDE, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 

     Three Months Ended December 31,     Twelve Months Ended December 31,  
     2013     2012     2013     2012  

Revenue

   $ 198,718      $ 211,244      $ 807,579      $ 890,392   
  

 

 

   

 

 

   

 

 

   

 

 

 

Salaries and related

     99,433        97,401        379,406        408,305   

Office and general

     50,461        55,497        205,397        226,601   

Marketing and promotion

     38,840        44,503        169,590        188,326   

Restructuring and other special charges

     —          14,831        19,995        40,358   

Recovery of restitution award from former executive

     —          —          —          (5,350
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     188,734        212,232        774,388        858,240   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     9,984        (988     33,191        32,152   

Interest and other, net

     (1,663     (1,699     (5,770     (5,883
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes and loss in equity interests

     8,321        (2,687     27,421        26,269   

Provision for (benefit from) income taxes

     28,157        2,267        23,004        (32,978

Loss in equity interests, net

     (86     (355     (908     (1,081
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income from continuing operations

     (19,922     (5,309     3,509        58,166   

Loss from discontinued operations, net of tax

     —          (67,716     (3,798     (316,886
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

     (19,922     (73,025     (289     (258,720

Net income attributable to noncontrolling interest

     (193     —          (193     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to Monster Worldwide, Inc.

   $ (20,115   $ (73,025   $ (482   $ (258,720
  

 

 

   

 

 

   

 

 

   

 

 

 

*Basic (loss) earnings per share attributable to Monster Worldwide, Inc.:

        

(Loss) income from continuing operations

   $ (0.21   $ (0.05   $ 0.03      $ 0.52   

Loss from discontinued operations, net of tax

     —          (0.61     (0.04     (2.81
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic (loss) earnings per share

   $ (0.21   $ (0.66   $ —        $ (2.29
  

 

 

   

 

 

   

 

 

   

 

 

 

*Diluted (loss) earnings per share attributable to Monster Worldwide, Inc.:

        

(Loss) income from continuing operations

   $ (0.21   $ (0.05   $ 0.03      $ 0.51   

Loss from discontinued operations, net of tax

     —          (0.61     (0.04     (2.78
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted (loss) earnings per share

   $ (0.21   $ (0.66   $ —        $ (2.27
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

        

Basic

     97,872        111,098        106,947        112,866   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     97,872        111,098        107,913        113,995   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA:

        

Operating income (loss)

   $ 9,984      $ (988   $ 33,191      $ 32,152   

Depreciation and amortization of intangibles

     12,782        16,386        59,156        64,279   

Amortization of stock-based compensation

     8,226        6,985        25,391        28,174   

Restructuring non-cash expenses

     —          1,126        5,315        7,543   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 30,992      $ 23,509      $ 123,053      $ 132,148   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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


MONSTER WORLDWIDE, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

     Twelve Months Ended December 31,  
     2013     2012  

Cash flows provided by operating activities:

    

Net loss

   $ (289   $ (258,720
  

 

 

   

 

 

 

Adjustments to reconcile net loss to net cash provided by operating activities:

    

Depreciation and amortization

     59,156        70,000   

Provision for doubtful accounts

     2,367        4,469   

Non-cash compensation

     25,391        28,964   

Deferred income taxes

     28,574        (9,814

Non-cash restructuring charges

     5,315        7,505   

Loss in equity interests, net

     908        1,081   

Amount reclassified from accumulated other comprehensive income

     (23,109     —     

Tax benefit from change in uncertain tax positions

     (14,355     (43,193

Impairment of goodwill and other intangibles

     —          267,855   

Excess income tax benefit from equity compensation plans

     (5,907     —     

Changes in assets and liabilities, net of acquisitions:

    

Accounts receivable

     8,018        (2,013

Prepaid and other

     14,573        13,332   

Deferred revenue

     (22,189     (17,456

Accounts payable, accrued liabilities and other

     (44,631     (8,683
  

 

 

   

 

 

 

Total adjustments

     34,111        312,047   
  

 

 

   

 

 

 

Net cash provided by operating activities

     33,822        53,327   
  

 

 

   

 

 

 

Cash flows used for investing activities:

    

Capital expenditures

     (32,616     (59,572

Cash funded to and dividends received from equity investee and other

     (6,266     (1,349
  

 

 

   

 

 

 

Net cash used for investing activities

     (38,882     (60,921
  

 

 

   

 

 

 

Cash flows used for financing activities:

    

Proceeds from borrowings on credit facilities

     69,500        224,718   

Payments on borrowings on credit facilities

     (91,599     (305,709

Proceeds from borrowings on term loan

     —          100,000   

Payments on borrowings on term loan

     (6,875     (43,750

Repurchase of common stock

     (107,167     (65,611

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

     (6,061     (8,482

Excess income tax benefit from equity compensation plans

     5,907        —     

Net proceeds from sale of noncontrolling interest

     86,523        —     

Proceeds from the exercise of employee stock options

     —          23   
  

 

 

   

 

 

 

Net cash used for financing activities

     (49,772     (98,811
  

 

 

   

 

 

 

Effects of exchange rates on cash

     (4,772     4,273   
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (59,604     (102,132

Cash and cash equivalents, beginning of period

     148,185        250,317   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 88,581      $ 148,185   
  

 

 

   

 

 

 

Free cash flow:

    

Net cash provided by operating activities

   $ 33,822      $ 53,327   

Less: Capital expenditures

     (32,616     (59,572
  

 

 

   

 

 

 

Free cash flow

   $ 1,206      $ (6,245
  

 

 

   

 

 

 


MONSTER WORLDWIDE, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

     December 31, 2013      December 31, 2012  

Assets:

     

Cash and cash equivalents

   $ 88,581       $ 148,185   

Accounts receivable, net

     332,675         335,905   

Property and equipment, net

     124,169         147,613   

Goodwill and intangibles, net

     919,576         919,854   

Other assets

     121,256         111,606   

Current assets of discontinued operations

     —           21,702   
  

 

 

    

 

 

 

Total Assets

   $ 1,586,257       $ 1,684,865   
  

 

 

    

 

 

 

Liabilities and Stockholders’ Equity:

     

Accounts payable, accrued expenses and other current liabilities

   $ 166,257       $ 181,914   

Deferred revenue

     342,156         351,546   

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

     9,375         18,264   

Long-term income taxes payable

     53,078         63,465   

Long-term debt, less current portion

     125,900         145,975   

Other long-term liabilities

     44,297         10,406   

Current liabilities of discontinued operations

     1,049         33,256   
  

 

 

    

 

 

 

Total Liabilities

   $ 742,112       $ 804,826   
  

 

 

    

 

 

 

Stockholders’ Equity

     844,145         880,039   
  

 

 

    

 

 

 

Total Liabilities and Stockholders’ Equity

   $ 1,586,257       $ 1,684,865   
  

 

 

    

 

 

 


MONSTER WORLDWIDE, INC.

UNAUDITED NON-GAAP STATEMENTS OF OPERATIONS AND RECONCILIATIONS

(in thousands, except per share amounts)

 

     Three Months Ended December 31, 2013     Three Months Ended December 31, 2012  
     As Reported     Non GAAP
Adjustments
    Consolidated
Non GAAP
    As Reported     Non GAAP
Adjustments
    Consolidated
Non GAAP
 

Revenue

   $ 198,718      $ —        $ 198,718      $ 211,244      $ —        $ 211,244   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Salaries and related

     99,433        (8,226 )a      91,207        97,401        (6,985 )a      90,416   

Office and general

     50,461        —          50,461        55,497        (1,347 )b      54,150   

Marketing and promotion

     38,840        —          38,840        44,503        —          44,503   

Restructuring and other special charges

     —          —          —          14,831        (14,831 )c      —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     188,734        (8,226     180,508        212,232        (23,163     189,069   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     9,984        8,226        18,210        (988     23,163        22,175   

Operating margin

     5.0       9.2     -0.5       10.5

Interest and other, net

     (1,663     —          (1,663     (1,699     —          (1,699
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes and loss in equity interests

     8,321        8,226        16,547        (2,687     23,163        20,476   

Provision for (benefit from) income taxes

     28,157        (22,366 )f,g      5,791        2,267        4,481  e,f      6,748   

Loss in equity interests, net

     (86     —          (86     (355     —          (355
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income from continuing operations

     (19,922     30,592        10,670        (5,309     18,682        13,373   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss from discontinued operations, net of tax

     —          —          —          (67,716     67,716  h      —     

Net (loss) income

     (19,922     30,592        10,670        (73,025     86,398        13,373   

Net income attributable to noncontrolling interest

     (193     —          (193     —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income attributable to Monster Worldwide, Inc.

   $ (20,115   $ 30,592      $ 10,477      $ (73,025   $ 86,398      $ 13,373   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

*Diluted (loss) earnings per share attributable to Monster Worldwide, Inc.:

            

(Loss) income from continuing operations

   $ (0.21   $ 0.31      $ 0.11      $ (0.05   $ 0.17      $ 0.12   

Income (loss) from discontinued operations, net of tax

     —          —          —          (0.61     0.61        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted (loss) earnings per share

   $ (0.21   $ 0.31      $ 0.11      $ (0.66   $ 0.78      $ 0.12   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

            

Basic

     97,872        97,872        97,872        111,098        111,098        111,098   

Diluted

     97,872        98,655        98,655        111,098        112,129        112,129   
     Twelve Months Ended December 31, 2013     Twelve Months Ended December 31, 2012  
     As Reported     Non GAAP
Adjustments
    Consolidated
Non GAAP
    As Reported     Non GAAP
Adjustments
    Consolidated
Non GAAP
 

Revenue

   $ 807,579      $ —        $ 807,579      $ 890,392      $ —        $ 890,392   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Salaries and related

     379,406        (25,391 )a      354,015        408,305        (28,174 )a      380,131   

Office and general

     205,397        (2,920 )b      202,477        226,601        (4,659 )b      221,942   

Marketing and promotion

     169,590        —          169,590        188,326        —          188,326   

Restructuring and other special charges

     19,995        (19,995 )c      —          40,358        (40,358 )c      —     

Recovery of restitution award from former executive

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     774,388        (48,306     726,082        858,240        (67,841     790,399   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     33,191        48,306        81,497        32,152        67,841        99,993   

Operating margin

     4.1       10.1     3.6       11.2

Interest and other, net

     (5,770     —          (5,770     (5,883     —          (5,883
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes and loss in equity interests

     27,421        48,306        75,727        26,269        67,841        94,110   

Provision for (benefit from) income taxes

     23,004        3,528  e,f,g      26,532        (32,978     64,517  e,f      31,539   

Loss in equity interests, net

     (908     —          (908     (1,081     —          (1,081
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     3,509        44,778        48,287        58,166        3,324        61,490   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss from discontinued operations, net of tax

     (3,798     3,798  h      —          (316,886     316,886  h      —     

Net (loss) income

     (289     48,576        48,287        (258,720     320,210        61,490   

Net income attributable to noncontrolling interest

     (193     —          (193     —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income attributable to Monster Worldwide, Inc.

   $ (482   $ 48,576      $ 48,094      $ (258,720   $ 320,210      $ 61,490   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

*Diluted earnings (loss) per share attributable to Monster Worldwide, Inc.:

            

Income from continuing operations

   $ 0.03      $ 0.41      $ 0.45      $ 0.51      $ 0.03      $ 0.54   

Loss from discontinued operations, net of tax

     (0.04     0.04        —          (2.78     2.78        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings (loss) per share

   $ —        $ 0.45      $ 0.45      $ (2.27   $ 2.81      $ 0.54   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

            

Basic

     106,947        106,947        106,947        112,866        112,866        112,866   

Diluted

     107,913        107,913        107,913        113,995        113,995        113,995   

Note Regarding Non GAAP 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.

Non GAAP adjustments consist of the following:

 

  a Costs related to stock based compensation.

 

  b Costs directly associated with our previously announced review of strategic alternatives.

 

  c Restructuring related charges pertaining to the strategic actions that the Company announced in January and November 2012. 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.

 

  d Restitution award paid by a former executive to the United States government in connection with the Company’s historical stock option practices.

 

  e Non-GAAP income tax adjustment includes the reversal of income tax reserves inclusive of interest due to uncertain tax positions and a tax benefit due to certain losses arising from the company’s restructuring.

 

  f Income tax adjustment is calculated using the effective tax rate of the reported period multiplied by the Non GAAP adjustment to income (loss) before income taxes and loss in equity interests. Non-GAAP income tax adjustment includes provision for tax valuation allowances.

 

  g Income tax adjustment related to sale of a noncontrolling interest in our South Korean business.

 

  h Discontinued operations related to our sale of ChinaHR and the exit of our businesses in Latin America and Turkey.

 

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


MONSTER WORLDWIDE, INC.

UNAUDITED NON-GAAP OPERATING SEGMENT INFORMATION

(in thousands)

 

Three Months Ended December 31, 2013

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

Revenue—GAAP

   $ 111,000      $ 69,687      $ 18,031        $ 198,718   
  

 

 

   

 

 

   

 

 

     

 

 

 

Operating income (loss)—GAAP

   $ 16,968      $ (3,226   $ 6,016      $ (9,774   $ 9,984   

Non GAAP Adjustments

     3,347        431        737        3,711        8,226   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)—Non GAAP

   $ 20,315      $ (2,795   $ 6,753      $ (6,063   $ 18,210   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA—GAAP

   $ 26,375      $ 2,663      $ 7,792      $ (5,838   $ 30,992   

Non GAAP Adjustments

     —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA—Non GAAP

   $ 26,375      $ 2,663      $ 7,792      $ (5,838   $ 30,992   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating margin—GAAP

     15.3     -4.6     33.4       5.0

Operating margin—Non GAAP

     18.3     -4.0     37.5       9.2

EBITDA margin—GAAP

     23.8     3.8     43.2       15.6

EBITDA margin—Non GAAP

     23.8     3.8     43.2       15.6

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   
  

 

 

   

 

 

   

 

 

     

 

 

 

Operating income (loss)—GAAP

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

Non GAAP Adjustments

     8,721        8,861        1,484        4,097        23,163   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)—Non GAAP

   $ 16,128      $ 5,177      $ 5,640      $ (4,770   $ 22,175   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA—GAAP

   $ 19,032      $ 4,392      $ 6,137      $ (6,052   $ 23,509   

Non GAAP Adjustments

     5,888        6,741        958        1,465        15,052   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA—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

     14.5     6.4     30.4       10.5

EBITDA margin—GAAP

     17.1     5.4     33.0       11.1

EBITDA margin—Non GAAP

     22.3     13.7     38.2       18.3

Twelve Months Ended December 31, 2013

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

Revenue—GAAP

   $ 446,274      $ 288,623      $ 72,682        $ 807,579   
  

 

 

   

 

 

   

 

 

     

 

 

 

Operating income (loss)—GAAP

   $ 65,009      $ (18,596   $ 24,492      $ (37,714   $ 33,191   

Non GAAP Adjustments

     17,909        13,661        2,475        14,261        48,306   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)—Non GAAP

   $ 82,918      $ (4,935   $ 26,967      $ (23,453   $ 81,497   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA—GAAP

   $ 106,540      $ 11,493      $ 30,988      $ (25,968   $ 123,053   

Non GAAP Adjustments

     7,543        6,481        341        3,238        17,603   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA—Non GAAP

   $ 114,083      $ 17,974      $ 31,329      $ (22,730   $ 140,656   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating margin—GAAP

     14.6     -6.4     33.7       4.1

Operating margin—Non GAAP

     18.6     -1.7     37.1       10.1

EBITDA margin—GAAP

     23.9     4.0     42.6       15.2

EBITDA margin—Non GAAP

     25.6     6.2     43.1       17.4

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   
  

 

 

   

 

 

   

 

 

     

 

 

 

Operating income (loss)—GAAP

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

Non GAAP Adjustments

     26,826        22,841        4,506        13,668        67,841   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss) —Non GAAP

   $ 69,512      $ 35,917      $ 22,227      $ (27,663   $ 99,993   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA—GAAP

   $ 90,103      $ 42,609      $ 26,669      $ (27,233   $ 132,148   

Non GAAP Adjustments

     14,853        15,489        1,501        282        32,125   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA—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

     15.0     10.2     29.1       11.2

EBITDA margin—GAAP

     19.5     12.1     35.0       14.8

EBITDA margin—Non GAAP

     22.7     16.5     36.9       18.4