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8-K - FORM 8-K - MONSTER WORLDWIDE, INC.d671499d8k.htm
EX-99.1 - EX-99.1 - MONSTER WORLDWIDE, INC.d671499dex991.htm

Exhibit 99.2

 

LOGO

FINANCIAL SUPPLEMENT

December 31, 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

Stock Based Compensation

As announced in our third quarter 2013 earnings release, non-cash, stock-based compensation expense has been excluded from our non-GAAP financial statements for the three and twelve months ended December 31, 2013 and 2012.

Income Tax

In the fourth quarter of 2013, the Company recognized a tax provision relating to the sale of a noncontrolling interest in our South Korean subsidiary which has been excluded from our non-GAAP financial statements for the three and twelve months ended December 31, 2013. In the first quarter of 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 for the year ended December 31, 2013.

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 twelve months ended December 31, 2012.

Discontinued Operations

For the three and twelve months ended December 31, 2012, the Company reported a loss from discontinued operations, net of tax, of $67.7 million and $316.9 million, respectively. For the twelve months ended December 31, 2013, the Company reported a loss from discontinued operations, net of tax, of $3.8 million.

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). Included in the loss from discontinued operations, net of tax, in 2012 was a $262.7 million goodwill impairment charge, a $9.1 million charge related to the recording of a full valuation allowance associated with Careers—China deferred tax assets as well as a $5.2 million impairment charge relating to amortizable intangibles.

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 year ended December 31, 2013. Additionally, the Company recorded a tax benefit of $4.9 million in the year ended December 31, 2013. Accordingly, the Company recorded a loss from discontinued operations, net of tax, of $1.7 million in the year ended December 31, 2013. The Company does not expect to incur significant additional charges in future periods relating to Careers-China.

 

2


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 year ended December 31, 2013, the Company recorded additional costs of $3.6 million 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 $1.5 million for the year ended December 31, 2013. Accordingly, the Company recorded a loss from discontinued operations, net of tax, of $2.1 million in the year ended December 31, 2013. The Company does not expect to incur significant additional charges in future periods relating to Latin America or Turkey.

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 and twelve months ended December 31, 2012, the Company incurred $1.3 million and $4.7 million of costs related to the review of strategic alternatives, respectively. During the year ended December 31, 2013, the Company incurred $2.9 million of costs related to the review of strategic alternatives.

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 $26.2 million of restructuring costs in the year ended December 31, 2012.

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 and $14.7 million of restructuring costs in the year ended December 31, 2013 and 2012, respectively.

Beginning in the third quarter of 2011, the Company made the strategic decision to no longer engage in arbitrage lead generation activities within the Internet Advertising & Fees segment. The Company also made the decision to cease operations in one country within the Careers-International segment. During the first quarter of 2012, the Company recorded a $0.5 million reduction to restructuring expense related to a change in estimated sublease income associated with this program.

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.

 

3


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 (loss) from continuing operations, loss from discontinued operations, net of tax, and diluted earnings (loss) per share attributable to Monster Worldwide, Inc. all exclude certain pro-forma adjustments including: non-cash stock based compensation expense; 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; income tax provision related to the sale of a noncontrolling interest; 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 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

 

5


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     Q4 2013     FY 2013  

Monster Careers

   $ 214,369      $ 205,034      $ 202,017      $ 192,672      $ 814,092      $ 193,654      $ 181,819      $ 178,737      $ 180,687      $ 734,897   

Internet Advertising & Fees

     19,381        19,543        18,804        18,572        76,300        18,332        18,239        18,080        18,031        72,682   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

     233,750        224,577        220,821        211,244        890,392        211,986        200,058        196,817        198,718        807,579   

Salary and related

     104,060        92,558        93,097        90,416        380,131        90,781        83,997        88,030        91,207        354,015   

Office and general

     36,643        41,993        44,575        39,111        162,322        35,028        36,537        36,997        37,679        146,241   

Marketing and promotion

     49,298        51,426        43,099        44,503        188,326        49,267        43,394        38,089        38,840        169,590   

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        —          —          19,995   

Depreciation expense

     12,782        12,867        12,991        13,286        51,926        13,000        12,644        12,297        11,981        49,922   

Amortization of restricted stock

     8,201        7,254        5,683        6,985        28,123        6,794        5,470        4,901        8,226        25,391   

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        801        9,234   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

     233,036        210,198        202,774        212,232        858,240        211,141        191,951        182,562        188,734        774,388   

Operating income (loss)

     714        14,379        18,047        (988     32,152        845        8,107        14,255        9,984        33,191   

Interest and other, net

     (1,463     (1,189     (1,532     (1,699     (5,883     (1,268     (1,357     (1,482     (1,663     (5,770
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) Income before income taxes and equity interests

     (749     13,190        16,515        (2,687     26,269        (423     6,750        12,773        8,321        27,421   

(Benefit from) provision for income taxes

     (14,304     3,930        (24,871     2,267        (32,978     (11,999     2,366        4,480        28,157        23,004   

Loss in equity interests, net

     (200     (255     (271     (355     (1,081     (458     (245     (119     (86     (908
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

     13,355        9,005        41,115        (5,309     58,166        11,118        4,139        8,174        (19,922     3,509   

(Loss) income from discontinued operations, net of tax

     (9,613     (4,203     (235,354     (67,716     (316,886     (6,134     (759     3,095        —          (3,798
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     3,742        4,802        (194,239     (73,025     (258,720     4,984        3,380        11,269        (19,922     (289

Net income attributable to noncontrolling interest

     —          —          —          —          —          —          —          —          (193     (193
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 3,742      $ 4,802      $ (194,239   $ (73,025   $ (258,720   $ 4,984      $ 3,380      $ 11,269      $ (20,115   $ (482
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

                    

Income (loss) from continuing operations

     0.11        0.08        0.37        (0.05     0.52        0.10        0.04        0.08        (0.21     0.03   

(Loss) income from discontinued operations, net of tax

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 0.03      $ 0.04      $ (1.75   $ (0.66   $ (2.29   $ 0.04      $ 0.03      $ 0.11      $ (0.21   $ —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

                    

Income (loss) from continuing operations

     0.11        0.08        0.37        (0.05     0.51        0.10        0.04        0.08        (0.21     0.03   

(Loss) income from discontinued operations, net of tax

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 0.03      $ 0.04      $ (1.73   $ (0.66   $ (2.27   $ 0.04      $ 0.03      $ 0.11      $ (0.21   $ —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted avg. shares outstanding:

                    

Basic shares

     116,199        112,937        111,239        111,098        112,866        111,402        110,932        105,394        97,872        106,947   

Diluted shares

     117,611        114,038        112,212        111,098        113,995        112,637        111,937        105,967        97,872        107,913   

Global employees - continuing operations (ones)

     4,366        4,432        4,331        4,037        4,037        3,852        3,905        3,948        3,998        3,998   

Annualized revenue per average employee

   $ 207.4      $ 204.2      $ 201.6      $ 202.0      $ 203.8      $ 215.0      $ 206.3      $ 200.5      $ 200.1      $ 205.5   

 

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


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     Q4 2013     FY 2013  

Monster Careers

   $ 214,369      $ 205,034      $ 202,017      $ 192,672      $ 814,092      $ 193,654      $ 181,819      $ 178,737      $ 180,687      $ 734,897   

Internet Advertising & Fees

     19,381        19,543        18,804        18,572        76,300        18,332        18,239        18,080        18,031        72,682   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

     233,750        224,577        220,821        211,244        890,392        211,986        200,058        196,817        198,718        807,579   

Salary and related

     104,060        92,558        93,097        90,416        380,131        90,781        83,997        88,030        91,207        354,015   

Office and general

     36,643        40,164        43,092        37,764        157,663        33,653        34,992        36,997        37,679        143,321   

Marketing and promotion

     49,298        51,426        43,099        44,503        188,326        49,267        43,394        38,089        38,840        169,590   

Depreciation expense

     12,782        12,867        12,991        13,286        51,926        13,000        12,644        12,297        11,981        49,922   

Amortization of intangibles

     3,083        3,085        3,085        3,100        12,353        3,104        3,081        2,248        801        9,234   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

     205,866        200,100        195,364        189,069        790,399        189,805        178,108        177,661        180,508        726,082   

Operating income

     27,884        24,477        25,457        22,175        99,993        22,181        21,950        19,156        18,210        81,497   

Interest and other, net

     (1,463     (1,189     (1,532     (1,699     (5,883     (1,268     (1,357     (1,482     (1,663     (5,770
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes and equity interests

     26,421        23,288        23,925        20,476        94,110        20,913        20,593        17,674        16,547        75,727   

Provision for income taxes

     9,366        7,144        8,281        6,748        31,539        7,320        7,222        6,199        5,791        26,532   

Loss in equity interests, net

     (200     (255     (271     (355     (1,081     (458     (245     (119     (86     (908
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     16,855        15,889        15,373        13,373        61,490        13,135        13,126        11,356        10,670        48,287   

Net income attributable to noncontrolling interest

     —          —          —          —          —          —          —          —          (193     (193
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations attributable to Monster Worldwide, Inc.

   $ 16,855      $ 15,889      $ 15,373      $ 13,373      $ 61,490      $ 13,135      $ 13,126      $ 11,356      $ 10,477      $ 48,094   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

                    

Income from continuing operations

   $ 0.14      $ 0.14      $ 0.14      $ 0.12      $ 0.54      $ 0.12      $ 0.12      $ 0.11      $ 0.11      $ 0.45   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted avg. shares outstanding:

                    

Basic shares

     116,199        112,937        111,239        111,098        112,866        111,402        110,932        105,394        97,872        106,947   

Diluted shares

     117,611        114,038        112,212        112,129        113,995        112,637        111,937        105,967        98,655        107,913   


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     Q4 2013     FY 2013  

Segment Revenue: GAAP

                    

Careers - North America

   $ 119,774      $ 116,189      $ 115,455      $ 111,544      $ 462,962      $ 115,935      $ 109,717      $ 109,622      $ 111,000      $ 446,274   

Careers - International

     94,595        88,845        86,562        81,128        351,130        77,719        72,102        69,115        69,687        288,623   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Careers Revenue - GAAP

     214,369        205,034        202,017        192,672        814,092        193,654        181,819        178,737        180,687        734,897   

Internet Advertising & Fees Revenue - GAAP

     19,381        19,543        18,804        18,572        76,300        18,332        18,239        18,080        18,031        72,682   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster Revenue - GAAP

   $ 233,750      $ 224,577      $ 220,821      $ 211,244      $ 890,392      $ 211,986      $ 200,058      $ 196,817      $ 198,718      $ 807,579   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment operating income (loss): GAAP

                    

Careers - North America

   $ 3,199      $ 14,911      $ 17,169      $ 7,407      $ 42,686      $ 12,423      $ 19,272      $ 16,346      $ 16,968      $ 65,009   

Careers - International

     2,881        6,336        7,543        (3,684     13,076        (8,991     (6,054     (325     (3,226     (18,596
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Careers operating income GAAP

     6,080        21,247        24,712        3,723        55,762        3,432        13,218        16,021        13,742        46,413   

Internet Advertising & Fees operating income GAAP

     3,268        5,307        4,990        4,156        17,721        6,262        6,312        5,902        6,016        24,492   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster operating income

   $ 9,348      $ 26,554      $ 29,702      $ 7,879      $ 73,483      $ 9,694      $ 19,530      $ 21,923      $ 19,758      $ 70,905   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Corporate expenses GAAP

     (8,634     (12,175     (11,655     (8,867     (41,331     (8,849     (11,423     (7,668     (9,774     (37,714
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster Consolidated operating income (loss) GAAP

   $ 714      $ 14,379      $ 18,047      $ (988   $ 32,152      $ 845      $ 8,107      $ 14,255      $ 9,984      $ 33,191   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

                    

Careers - North America

   $ 19,403      $ 16,098      $ 17,883      $ 16,128      $ 69,512      $ 22,424      $ 22,277      $ 17,902      $ 20,315      $ 82,918   

Careers - International

     13,252        8,578        8,910        5,177        35,917        (1,747     (1,674     1,281        (2,795     (4,935
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Careers operating income Non-GAAP

     32,655        24,676        26,793        21,305        105,429        20,677        20,603        19,183        17,520        77,983   

Internet Advertising & Fees operating income Non-GAAP

     5,081        5,983        5,523        5,640        22,227        6,883        6,978        6,353        6,753        26,967   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster operating income Non-GAAP

   $ 37,736      $ 30,659      $ 32,316      $ 26,945      $ 127,656      $ 27,560      $ 27,581      $ 25,536      $ 24,273      $ 104,950   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Corporate expenses Non-GAAP

     (9,852     (6,182     (6,859     (4,770     (27,663     (5,379     (5,631     (6,380     (6,063     (23,453
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster Consolidated operating income Non-GAAP

   $ 27,884      $ 24,477      $ 25,457      $ 22,175      $ 99,993      $ 22,181      $ 21,950      $ 19,156      $ 18,210      $ 81,497   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(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      Q4 2013      FY 2013  

Revenue - GAAP

   $ 233,750      $ 224,577       $ 220,821       $ 211,244      $ 890,392      $ 211,986       $ 200,058       $ 196,817       $ 198,718       $ 807,579   
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

EBITDA - GAAP (1)

   $ 31,214      $ 37,619       $ 39,806       $ 23,509      $ 132,148      $ 24,518       $ 33,842       $ 33,701       $ 30,992       $ 123,053   

Depreciation expense

     12,782        12,867         12,991         13,286        51,926        13,000         12,644         12,297         11,981         49,922   

Amortization of restricted stock

     8,201        7,254         5,683         6,985        28,123        6,794         5,470         4,901         8,226         25,391   

Non-cash stock option expense

     51        —           —           —          51        —           —           —           —           —     

Restructuring non-cash charges

     6,383        34         —           1,126        7,543        775         4,540         —           —           3,494   

Amortization of intangibles

     3,083        3,085         3,085         3,100        12,353        3,104         3,081         2,248         801         9,234   
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Operating income (loss) - GAAP

   $ 714      $ 14,379       $ 18,047       $ (988   $ 32,152      $ 845       $ 8,107       $ 14,255       $ 9,984       $ 33,191   
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Stock based compensation

     8,252        7,254         5,683         6,985        28,174        6,794         5,470         4,901         8,226         25,391   

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         —           —           2,920   

Restructuring non-cash charges

     6,383        34         —           1,126        7,543        775         4,540         —           —           5,315   

Restructuring expenses, less non-cash items

     17,885        981         244         13,705        32,815        12,392         2,288         —           —           14,680   
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Non-GAAP adjustments

     27,170        10,098         7,410         23,163        67,841        21,336         13,843         4,901         8,226         48,306   

Operating income Non-GAAP (1)

   $ 27,884      $ 24,477       $ 25,457       $ 22,175      $ 99,993      $ 22,181       $ 21,950       $ 19,156       $ 18,210       $ 81,497   
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

(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     Q4 2013     FY 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      $ (19,922   $ (289
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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        12,782        59,156   

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        617        2,367   

Non-cash compensation

    8,324        7,429        5,829        7,382        28,964        6,794        5,470        4,901        8,226        25,391   

Deferred income taxes

    (8,499     1,499        6,706        (9,520     (9,814     (2,172     (435     4,825        26,356        28,574   

Non-cash restructuring charges and other

    6,383        34        —          1,088        7,505        775        4,540        —          —          5,315   

Loss in equity interests, net

    200        255        271        355        1,081        458        245        119        86        908   

Tax benefit from change in uncertain tax positions

    —          —          (43,193     —          (43,193     (12,869     —          (1,486     —          (14,355

Impairment of goodwill and other intangibles

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

Amount reclassified from accumulated other comprehensive income

    —          —          —          —          —          (23,109     —          —          —          (23,109

Excess income tax benefit from equity compensation plans

    —          —          —          —          —          —          (2,044     (1,970     (1,893     (5,907

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        (33,443     8,018   

Prepaid and other

    (13,582     8,486        16,205        2,223        13,332        14,690        865        (3,371     2,389        14,573   

Deferred revenue

    23,752        (27,523     (24,506     10,821        (17,456     (5,039     (26,203     (16,582     25,635        (22,189

Accounts payable, accrued liabilities, and other

    (258     (28,584     (2,062     22,221        (8,683     (15,695     (9,771     (23,137     3,972        (44,631
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total adjustments

    17,505        2,067        201,961        90,514        312,047        (13,621     12,023        (9,018     44,727        34,111   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used for) operating activities

    21,247        6,869        7,722        17,489        53,327        (8,637     15,403        2,251        24,805        33,822   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows used for investing activities:

                   

Capital expenditures

    (12,700     (20,551     (13,651     (12,670     (59,572     (9,149     (9,239     (6,602     (7,626     (32,616

Cash funded to and dividends received from equity investee and other

    (779     728        (1,298     —          (1,349     623        (484     (2,638     (3,767     (6,266
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used for investing activities

    (13,479     (19,823     (14,949     (12,670     (60,921     (8,526     (9,723     (9,240     (11,393     (38,882
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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        —          69,500   

Payments on borrowings on credit facilities

    (225,022     (46,494     (286     (33,907     (305,709     (11,399     (28,400     —          (51,800     (91,599

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     (1,875     (6,875

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     (147     (6,061

Repurchase of common stock

    (33,335     (25,577     (6,699     —          (65,611     —          (23,378     (37,404     (46,385     (107,167

Excess income tax benefit from equity compensation plans

    —          —          —          —          —          —          2,044        1,970        1,893        5,907   

Net proceeds from sale of noncontrolling interest

    —          —          —          —          —          —          —          —          86,523        86,523   

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        (11,791     (49,772
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effects of exchange rates on cash

    5,625        (8,957     7,096        509        4,273        (3,172     (2,452     837        15        (4,772

Net increase (decrease) in cash and cash equivalents

    2,284        (95,141     17,643        (26,918     (102,132     (17,277     (51,575     7,612        1,636        (59,604

Cash and cash equivalents, beginning of period

    250,317        252,601        157,460        175,103        250,317        148,185        130,908        79,333        86,945        148,185   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents, end of period

  $ 252,601      $ 157,460      $ 175,103      $ 148,185      $ 148,185      $ 130,908      $ 79,333      $ 86,945      $ 88,581      $ 88,581   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


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     December 2013  
ASSETS                

Current assets:

               

Cash and cash equivalents

  $ 252,601      $ 157,460      $ 175,103      $ 148,185      $ 130,908      $ 79,333      $ 86,945      $ 88,581   

Accounts Receivable, net

    358,004        333,640        315,058        335,905        333,174        309,064        298,823        332,675   

Prepaid and other

    95,972        85,845        72,226        73,861        75,229        73,853        73,801        82,809   

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        504,065   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Property and equipment, net

    159,632        161,432        150,541        147,613        137,998        132,393        128,409        124,169   

Goodwill

    1,142,194        1,118,942        878,688        887,271        880,715        873,166        891,623        895,518   

Intangibles, net

    47,603        43,729        35,105        32,583        29,385        26,096        24,219        24,058   

Investment in unconsolidated affiliates

    1,764        335        1,159        562        170        229        150        220   

Other assets

    43,679        44,135        30,412        37,183        38,644        41,078        39,960        38,227   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

  $ 2,101,449      $ 1,945,518      $ 1,738,595      $ 1,684,865      $ 1,626,223      $ 1,535,212      $ 1,543,930      $ 1,586,257   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
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      $ 166,257   

Deferred revenue

    408,334        372,239        332,723        351,546        356,468        329,492        315,645        342,156   

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        9,375   

Current liabilities of discontinued operations

    —          —          31,881        33,256        3,771        2,522        2,137        1,049   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

    636,560        575,934        549,495        584,980        553,881        515,474        478,310        518,837   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Long-term income taxes payable

    96,666        96,692        61,612        63,465        51,255        52,590        51,298        53,078   

Long-term debt, less current portion

    204,000        155,625        181,750        145,975        161,600        130,700        180,200        125,900   

Other liabilities

    12,542        16,042        10,897        10,406        8,352        8,994        5,752        44,297   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    949,768        844,293        803,754        804,826        775,088        707,758        715,560        742,112   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Common stock and class B common stock

    139        139        140        140        141        141        142        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        1,291,032   

Accumulated other comprehensive income

    79,223        46,006        76,284        87,162        50,163        41,024        62,046        63,368   

Accumulated deficit

    (301,927     (297,125     (491,364     (564,389     (559,405     (556,025     (544,756     (564,871

Noncontrolling interest

    —          —          —          —          —          —          —          54,474   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

    1,151,681        1,101,225        934,841        880,039        851,135        827,454        828,370        844,145   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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      $ 1,586,257   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Selected Financial Ratios(1)

               

—Annualized return on equity

    1.3     1.7     -76.3     -32.2     2.3     1.6     5.4     -9.6

—Book value per share

  $ 10.09      $ 9.85      $ 8.42      $ 7.92      $ 7.60      $ 7.64      $ 8.24      $ 9.14   

—Cash and marketable securities per share

  $ 2.21      $ 1.41      $ 1.58      $ 1.33      $ 1.17      $ 0.73      $ 0.86      $ 0.96   

—Net cash and securities

  $ 39,056      $ (11,933   $ (20,838   $ (16,054   $ (38,192   $ (59,492   $ (102,005   $ (46,694

 

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