Attached files

file filename
8-K - FORM 8-K - MONSTER WORLDWIDE, INC.d768569d8k.htm
EX-99.1 - EX-99.1 - MONSTER WORLDWIDE, INC.d768569dex991.htm

Exhibit 99.2

 

LOGO

FINANCIAL SUPPLEMENT

June 30, 2014

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

Non-cash, stock-based compensation expense has been excluded from our non-GAAP financial statements for all periods presented.

Facilities and Acquisition Costs

The Company incurred $6.3 million of charges associated with exited facilities and acquisition related costs in the first quarter of 2014 which have been excluded from our non-GAAP financial statements for the six months ended June 30, 2014. The majority of this charge related to facility charges associated with the consolidation of multiple offices into the Company’s new corporate headquarters in Weston, Massachusetts. The Company also incurred $0.3 million of acquisition related charges associated with the purchase of TalentBin, Inc., a social profile talent search engine, and Gozaik LLC, a developer of social jobs aggregation and distribution technology.

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 and six months ended June 30, 2013, the Company incurred $1.5 million and $2.9 million of costs related to the review of strategic alternatives, respectively, which have been excluded from our non-GAAP financial statements for the respective periods.

Restructuring

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 $6.8 million and $20.0 million of restructuring costs relating to this program in the three and six months ended June 30, 2013, respectively, which have been excluded from our non-GAAP financial statements for the respective periods.

Gain on deconsolidation of subsidiaries, net

Prior to January 3, 2014, the Company had a 25% equity investment in a company located in Finland related to a business combination completed in 2001, with the remaining 75% held by Alma Media Corporation (“Alma Media”). Alma Media is a leading media company based in Finland, focused on digital services and publishing in Finland, the Nordic countries, the Baltics and Central Europe. Effective January 3, 2014, the Company expanded its relationship with Alma Media. Monster and Alma Media each contributed several additional entities and businesses into the existing joint venture and formed a significantly larger joint venture where Monster has an equity ownership of 15% with the opportunity to increase ownership up to 20%. The Company also contributed cash of approximately $6.5 million. Following closing, Monster no longer held a controlling interest in its subsidiaries in Poland, Hungary and the Czech Republic and therefore deconsolidated those subsidiaries effective January 3, 2014. The Company accounts for its investment under the equity method of accounting due to the Company’s ability to exert significant influence over the financial and operating policies of the new joint venture, primarily through our representation on the board of directors.

 

2


The Company recorded a gain of approximately $14.0 million as a result of the deconsolidation. The gain was measured as the difference between the (a) net fair value of the retained noncontrolling investment and the consideration transferred and (b) the carrying value of the contributed subsidiaries’ net assets of approximately $4.2 million. The fair value of the retained noncontrolling investment was approximately $24.8 million which was determined based on the present value of estimated future cash flows. The Company also recognized $1.8 million of accumulated unrealized currency translation loss related to the net assets of the subsidiaries contributed by Monster.

As a result of the deconsolidation, the Company recorded a net gain of approximately $12.0 million to Gain on deconsolidation of subsidiaries, net during the first quarter of 2014 which has been excluded from our non-GAAP financial statements for the six months ended June 30, 2014.

Income Tax

As a result of the gain related to the deconsolidation of our subsidiaries in Poland, Hungary and the Czech Republic, the Company recognized a tax provision of $5.5 million in the first quarter of 2014 which has been excluded from our non-GAAP financial statements for the six months ended June 30, 2014.

In the six months ended June 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 for the six months ended June 30, 2013.

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.

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 remained 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. Additionally, the Company recorded a tax benefit of $4.0 million in the first quarter of 2013. Accordingly, the Company recorded a loss from discontinued operations, net of tax, of $0.6 million and $5.2 million for the three and six months ended June 30, 2013, respectively, which have been excluded from our non-GAAP financial statements for the respective periods. 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. For the three and six months ended June 30, 2013, the Company incurred $0.1 million and $2.2 million of costs, 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 $0.5 million first quarter of 2013. Accordingly, the Company recorded a loss from discontinued operations, net of tax, of $0.1 million and $1.7 million in the for the three and six months ended June 30, 2013, respectively, which have been excluded from our non-GAAP financial statements for the respective periods. The Company does not expect to incur significant additional charges in future periods relating to Latin America or Turkey.

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) income 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; 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; the results of the businesses in Careers – China, Latin America and Turkey as they have been classified as discontinued operations; gain on deconsolidation of subsidiaries, net; and charges related to exited facilities and acquisition related costs. 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 operating income or loss before 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. Adjusted EBITDA excludes the impact of the pro-forma adjustments discussed above.

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.

 

4


Monster Worldwide, Inc.

Statements of Operations

(unaudited, in thousands, except per share amounts)

 

    Trended Data  

Summary P&L Information

  Q1 2013     Q2 2013     Q3 2013     Q4 2013     FY 2013     Q1 2014     Q2 2014  

Monster Careers

  $ 193,654      $ 181,819      $ 178,737      $ 180,687      $ 734,897      $ 182,251      $ 178,581   

Internet Advertising & Fees

    18,332        18,239        18,080        18,031        72,682        15,898        15,860   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

    211,986        200,058        196,817        198,718        807,579        198,149        194,441   

Salary and related

    90,781        83,997        88,030        91,207        354,015        93,826        94,157   

Office and general

    35,028        36,537        36,997        37,679        146,241        42,688        37,296   

Marketing and promotion

    49,267        43,394        38,089        38,840        169,590        41,413        37,377   

Restructuring and other special charges

    13,167        6,828        —          —          19,995        —          —     

Depreciation expense

    13,000        12,644        12,297        11,981        49,922        11,885        11,217   

Stock based compensation expense

    6,794        5,470        4,901        8,226        25,391        8,173        9,063   

Amortization of intangibles

    3,104        3,081        2,248        801        9,234        634        618   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

    211,141        191,951        182,562        188,734        774,388        198,619        189,728   

Operating income (loss)

    845        8,107        14,255        9,984        33,191        (470     4,713   

Gain on deconsolidation of subsidiaries, net

    —          —          —          —          —          11,828        —     

Interest and other, net

    (1,268     (1,357     (1,482     (1,663     (5,770     (1,323     (1,660
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income before income taxes and equity interests

    (423     6,750        12,773        8,321        27,421        10,035        3,053   

(Benefit from) provision for income taxes

    (11,999     2,366        4,480        28,157        23,004        6,663        1,615   

(Loss) income in equity interests, net

    (458     (245     (119     (86     (908     (133     58   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

    11,118        4,139        8,174        (19,922     3,509        3,239        1,496   

(Loss) income from discontinued operations, net of tax

    (6,134     (759     3,095        —          (3,798     —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

    4,984        3,380        11,269        (19,922     (289     3,239        1,496   

Net income attributable to noncontrolling interest

    —          —          —          (193     (193     (1,174     (1,462
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

  $ 4,984      $ 3,380      $ 11,269      $ (20,115   $ (482   $ 2,065      $ 34   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

             

Income (loss) from continuing operations

    0.10        0.04        0.08        (0.21     0.03        0.02        —     

(Loss) income from discontinued operations, net of tax

    (0.06     (0.01     0.03        —          (0.04     —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

  $ 0.04      $ 0.03      $ 0.11      $ (0.21   $ —        $ 0.02      $ —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

             

Income (loss) from continuing operations

    0.10        0.04        0.08        (0.21     0.03        0.02        —     

(Loss) income from discontinued operations, net of tax

    (0.06     (0.01     0.03        —          (0.04     —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

  $ 0.04      $ 0.03      $ 0.11      $ (0.21   $ —        $ 0.02      $ —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted avg. shares outstanding:

             

Basic shares

    111,402        110,932        105,394        97,872        106,947        91,102        87,080   

Diluted shares

    112,637        111,937        105,967        97,872        107,913        94,416        89,955   

Global employees — continuing operations (ones)

    3,852        3,905        3,948        3,998        3,998        4,068        4,078   

Annualized revenue per average employee

  $ 215.0      $ 206.3      $ 200.5      $ 200.1      $ 205.5      $ 196.5      $ 191.0   


Monster Worldwide, Inc.

Non-GAAP Statements of Operations

(Unaudited, in thousands, except per share amounts)

 

    Trended Data  

Summary P&L Information

  Q1 2013     Q2 2013     Q3 2013     Q4 2013     FY 2013     Q1 2014     Q2 2014  

Monster Careers

  $ 193,654      $ 181,819      $ 178,737      $ 180,687      $ 734,897      $ 182,251      $ 178,581   

Internet Advertising & Fees

    18,332        18,239        18,080        18,031        72,682        15,898        15,860   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

    211,986        200,058        196,817        198,718        807,579        198,149        194,441   

Salary and related

    90,781        83,997        88,030        91,207        354,015        93,826        94,157   

Office and general

    33,653        34,992        36,997        37,679        143,321        36,339        37,296   

Marketing and promotion

    49,267        43,394        38,089        38,840        169,590        41,413        37,377   

Depreciation expense

    13,000        12,644        12,297        11,981        49,922        11,885        11,217   

Amortization of intangibles

    3,104        3,081        2,248        801        9,234        634        618   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

    189,805        178,108        177,661        180,508        726,082        184,097        180,665   

Operating income

    22,181        21,950        19,156        18,210        81,497        14,052        13,776   

Interest and other, net

    (1,268     (1,357     (1,482     (1,663     (5,770     (1,323     (1,660
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes and equity interests

    20,913        20,593        17,674        16,547        75,727        12,729        12,116   

Provision for income taxes

    7,320        7,222        6,199        5,791        26,532        4,083        3,756   

(Loss) income in equity interests, net

    (458     (245     (119     (86     (908     (133     58   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

    13,135        13,126        11,356        10,670        48,287        8,513        8,418   

Net income attributable to noncontrolling interest

    —          —          —          (193     (193     (1,174     (1,462
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations attributable to Monster Worldwide, Inc.

  $ 13,135      $ 13,126      $ 11,356      $ 10,477      $ 48,094      $ 7,339      $ 6,956   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

             

Income from continuing operations

  $ 0.12      $ 0.12      $ 0.11      $ 0.11      $ 0.45      $ 0.08      $ 0.08   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted avg. shares outstanding:

             

Basic shares

    111,402        110,932        105,394        97,872        106,947        91,102        87,080   

Diluted shares

    112,637        111,937        105,967        98,655        107,913        94,416        89,955   


Monster Worldwide, Inc.

Segment Information—GAAP and Non-GAAP

(unaudited, in thousands)

 

    Trended Data  
    Q1 2013     Q2 2013     Q3 2013     Q4 2013     FY 2013     Q1 2014     Q2 2014  

Segment Revenue:

             

Careers—North America

  $ 115,935      $ 109,717      $ 109,622      $ 111,000      $ 446,274      $ 111,647      $ 110,301   

Careers—International

    77,719        72,102        69,115        69,687        288,623        70,604        68,280   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Careers Revenue

    193,654        181,819        178,737        180,687        734,897        182,251        178,581   

Internet Advertising & Fees Revenue

    18,332        18,239        18,080        18,031        72,682        15,898        15,860   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster Revenue

  $ 211,986      $ 200,058      $ 196,817      $ 198,718      $ 807,579      $ 198,149      $ 194,441   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment operating income (loss): GAAP

             

Careers—North America

  $ 12,423      $ 19,272      $ 16,346      $ 16,968      $ 65,009      $ 12,120      $ 17,902   

Careers—International

    (8,991     (6,054     (325     (3,226     (18,596     (5,289     (6,974
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Careers operating income GAAP

    3,432        13,218        16,021        13,742        46,413        6,831        10,928   

Internet Advertising & Fees operating income GAAP

    6,262        6,312        5,902        6,016        24,492        3,691        3,464   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster operating income

  $ 9,694      $ 19,530      $ 21,923      $ 19,758      $ 70,905      $ 10,522      $ 14,392   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Corporate expenses GAAP

    (8,849     (11,423     (7,668     (9,774     (37,714     (10,992     (9,679
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster Consolidated operating income (loss) GAAP

  $ 845      $ 8,107      $ 14,255      $ 9,984      $ 33,191      $ (470   $ 4,713   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

             

Careers—North America

  $ 22,424      $ 22,277      $ 17,902      $ 20,315      $ 82,918      $ 17,508      $ 21,058   

Careers—International

    (1,747     (1,674     1,281        (2,795     (4,935     (3,130     (4,512
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Careers operating income Non-GAAP

    20,677        20,603        19,183        17,520        77,983        14,378        16,546   

Internet Advertising & Fees operating income Non-GAAP

    6,883        6,978        6,353        6,753        26,967        4,415        3,922   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster operating income Non-GAAP

  $ 27,560      $ 27,581      $ 25,536      $ 24,273      $ 104,950      $ 18,793      $ 20,468   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Corporate expenses Non-GAAP

    (5,379     (5,631     (6,380     (6,063     (23,453     (4,741     (6,692
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Monster Consolidated operating income Non-GAAP

  $ 22,181      $ 21,950      $ 19,156      $ 18,210      $ 81,497      $ 14,052      $ 13,776   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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

 


Monster Worldwide, Inc.

Segment Information—GAAP and Non-GAAP

(unaudited, in thousands)

 

     Trended Data  

Summary P&L Information

   Q1 2013      Q2 2013      Q3 2013      Q4 2013      FY 2013      Q1 2014     Q2 2014  

Revenue

   $  211,986       $ 200,058       $ 196,817       $ 198,718       $ 807,579       $ 198,149      $ 194,441   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

EBITDA

   $ 24,518       $ 33,842       $ 33,701       $ 30,992       $ 123,053       $ 20,222      $ 25,611   

Depreciation expense

     13,000         12,644         12,297         11,981         49,922         11,885        11,217   

Stock based compensation expense

     6,794         5,470         4,901         8,226         25,391         8,173        9,063   

Restructuring non-cash charges

     775         4,540         —           —           5,315         —          —     

Amortization of intangibles

     3,104         3,081         2,248         801         9,234         634        618   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income (loss)—GAAP

   $ 845       $ 8,107       $ 14,255       $ 9,984       $ 33,191       $ (470   $ 4,713   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Stock based compensation

     6,794         5,470         4,901         8,226         25,391         8,173        9,063   

Facilities and acquisition costs

     —           —           —           —           —           6,349        —     

Fees associated with strategic alternatives

     1,375         1,545         —           —           2,920         —          —     

Restructuring program non-cash charges

     775         4,540         —           —           5,315         —          —     

Restructuring expenses, less non-cash items

     12,392         2,288         —           —           14,680         —          —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Non-GAAP Adjustments

     21,336         13,843         4,901         8,226         48,306         14,522        9,063   

Operating income Non-GAAP(1)

   $ 22,181       $ 21,950       $ 19,156       $ 18,210       $ 81,497       $ 14,052      $ 13,776   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

(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 2013     Q2 2013     Q3 2013     Q4 2013     FY 2013     Q1 2014     Q2 2014  

Cash flows (used for) provided by operating activities:

              

Net income (loss)

   $ 4,984      $ 3,380      $ 11,269      $ (19,922   $ (289   $ 3,239      $ 1,496   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

              

Depreciation and amortization

     16,104        15,725        14,545        12,782        59,156        12,519        11,835   

Provision for doubtful accounts

     535        897        318        617        2,367        316        412   

Non-cash compensation

     6,794        5,470        4,901        8,226        25,391        8,173        9,063   

Deferred income taxes

     (2,172     (435     4,825        26,356        28,574        3,893        (491

Non-cash restructuring charges

     775        4,540        —          —          5,315        —          —     

Loss (income) in equity interests, net

     458        245        119        86        908        133        (58

Gain on deconsolidation of subsidiaries

     —          —          —          —          —          (13,647     —     

Tax benefit from change in uncertain tax positions

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

Amount reclassified from accumulated other comprehensive income

     (23,109     —          —          —          (23,109     1,819        —     

Excess income tax benefit from equity compensation plans

     —          (2,044     (1,970     (1,893     (5,907     (130     (69

Changes in assets and liabilities, net of acquisitions:

              

Accounts receivable

     5,907        22,734        12,820        (33,443     8,018        14,501        25,023   

Prepaid and other

     14,690        865        (3,371     2,389        14,573        (14,838     6,848   

Deferred revenue

     (5,039     (26,203     (16,582     25,635        (22,189     (964     (26,525

Accounts payable, accrued liabilities, and other

     (15,695     (9,771     (23,137     3,972        (44,631     3,893        (2,634
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total adjustments

     (13,621     12,023        (9,018     44,727        34,111        15,668        23,404   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used for) provided by operating activities

     (8,637     15,403        2,251        24,805        33,822        18,907        24,900   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows used for investing activities:

              

Capital expenditures

     (9,149     (9,239     (6,602     (7,626     (32,616     (10,700     (11,769

Payments for acquisitions, net of cash acquired

     —          —          —          —          —          (27,005     —     

Investment in Alma Career Oy

     —          —          —          —          —          (6,516     —     

Cash funded to and dividends received from equity investee and other

     623        (484     (2,638     (3,767     (6,266     (729     113   

Capitalized patent defense costs

     —          —          —          —          —          —          (1,220
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used for investing activities

     (8,526     (9,723     (9,240     (11,393     (38,882     (44,950     (12,876
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows provided by (used for) financing activities:

              

Proceeds from borrowings on credit facilities

     17,500        —          52,000        —          69,500        78,800        —     

Payments on borrowings on credit facilities

     (11,399     (28,400     —          (51,800     (91,599     —          (8,100

Payments on borrowings on term loan

     (1,250     (1,875     (1,875     (1,875     (6,875     (1,875     (2,500

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

     (1,793     (3,194     (927     (147     (6,061     (1,427     (2,280

Repurchase of common stock

     —          (23,378     (37,404     (46,385     (107,167     (39,653     (11,864

Excess income tax benefit from equity compensation plans

     —          2,044        1,970        1,893        5,907        130        69   

Net proceeds from sale of noncontrolling interest

     —          —          —          86,523        86,523        —          —     

Dividend paid to noncontrolling interest

     —          —          —          —          —          —          (3,021
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used for) financing activities

     3,058        (54,803     13,764        (11,791     (49,772     35,975        (27,696
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effects of exchange rates on cash

     (3,172     (2,452     837        15        (4,772     118        1,436   

Net (decrease) increase in cash and cash equivalents

     (17,277     (51,575     7,612        1,636        (59,604     10,050        (14,236

Cash and cash equivalents, beginning of period

     148,185        130,908        79,333        86,945        148,185        88,581        98,631   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 130,908      $ 79,333      $ 86,945      $ 88,581      $ 88,581      $ 98,631      $ 84,395   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

9


Monster Worldwide, Inc.

Consolidated Condensed Balance Sheets

(unaudited, in thousands)

 

     Trended Data  
     March 2013     June 2013     September 2013     December 2013     March 2014     June 2014  
ASSETS             

Current assets:

            

Cash and cash equivalents

   $ 130,908      $ 79,333      $ 86,945      $ 88,581      $ 98,631      $ 84,395   

Accounts Receivable, net

     333,174        309,064        298,823        332,675        318,615        293,732   

Prepaid and other

     75,229        73,853        73,801        82,809        92,717        88,127   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

     539,311        462,250        459,569        504,065        509,963        466,254   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Property and equipment, net

     137,998        132,393        128,409        124,169        126,232        126,345   

Goodwill

     880,715        873,166        891,623        895,518        918,672        915,024   

Intangibles, net

     29,385        26,096        24,219        24,058        27,849        29,186   

Investment in unconsolidated affiliates

     170        229        150        220        24,584        23,759   

Other assets

     38,644        41,078        39,960        38,227        35,496        36,697   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 1,626,223      $ 1,535,212      $ 1,543,930      $ 1,586,257      $ 1,642,796      $ 1,597,265   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY             

Current liabilities:

            

Accounts payable, accrued expenses and other

   $ 186,142      $ 175,335      $ 151,778      $ 166,257      $ 165,535      $ 160,121   

Deferred revenue

     356,468        329,492        315,645        342,156        341,947        315,786   

Current portion of long-term debt

     7,500        8,125        8,750        9,375        212,200        201,600   

Current liabilities of discontinued operations

     3,771        2,522        2,137        1,049        735        492   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

     553,881        515,474        478,310        518,837        720,417        677,999   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Long-term income taxes payable

     51,255        52,590        51,298        53,078        54,451        55,355   

Long-term debt, less current portion

     161,600        130,700        180,200        125,900        —          —     

Other long-term liabilities

     8,352        8,994        5,752        44,297        53,527        57,146   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     775,088        707,758        715,560        742,112        828,395        790,500   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Common stock

     141        141        142        142        142        142   

Additional paid-in capital

     1,962,039        1,970,025        1,976,768        2,003,394        2,011,447        2,019,350   

Accumulated other comprehensive income

     50,163        41,024        62,046        63,368        67,691        61,916   

Accumulated deficit

     (559,405     (556,025     (544,756     (564,871     (562,806     (562,772

Treasury stock, at cost

     (601,803     (627,711     (665,830     (712,362     (753,873     (768,050

Noncontrolling interest

     —          —          —          54,474        51,800        56,179   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

     851,135        827,454        828,370        844,145        814,401        806,765   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 1,626,223      $ 1,535,212      $ 1,543,930      $ 1,586,257      $ 1,642,796      $ 1,597,265   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Memo(1)

            

—Net cash

   $ (38,192   $ (59,492   $ (102,005   $ (46,694   $ (113,569   $ (117,205

 

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