Attached files
| file | filename |
|---|---|
| 8-K - 8-K - MONSTER WORLDWIDE, INC. | mww73020158k-q215earnings.htm |
| EX-99.1 - EXHIBIT 99.1 - MONSTER WORLDWIDE, INC. | ex99173015.htm |
Exhibit 99.2
FINANCIAL SUPPLEMENT
June 30, 2015
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.
1
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.
Separation Costs
During the second quarter of 2015, the Company incurred $2.0 million of separation charges related the resignation of the Company’s former Chief Executive Officer and President, Salvatore Iannuzzi, effective November 4, 2014. These charges have been excluded from our Non-GAAP financial statements for the three and six months ended June 30, 2015.
“Reallocate to Accelerate”
On February 10, 2015, the Company committed to take a series of cost savings initiatives to reduce costs globally while continuing to support the Company’s new strategy. The initiatives include a global workforce reduction of approximately 300 associates, lease exit costs, impairment of certain assets, and office and general expense controls. Through June 30, 2015, the Company has notified approximately 250 associates in North America and Europe, and has incurred $6.0 million and $26.2 million of charges relating to this program during the three and six months ended June 30, 2015, respectively. These charges have been excluded from our Non-GAAP financial statements for the respective periods. The Company anticipates additional charges of approximately $2 million to $3 million in the remainder of 2015 in connection with this program.
Facilities costs
During the first quarter of 2014 the Company incurred $6.3 million of charges associated with exited facilities which have been excluded from our Non-GAAP financial statements for the six months ended June 30, 2014. The majority of these charges related to facility charges associated with the consolidation of multiple offices into the Company’s corporate headquarters in Weston, Massachusetts.
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 $11.8 million during the first quarter of 2014 which has been excluded from our Non-GAAP financial statements for the six months ended June 30, 2014.
Gain on partial sale of equity method investment
In 2008, the Company acquired a 50% equity interest in a company located in Australia, CareerOne Pty Limited ("CareerOne"). On March 31, 2015, the Company sold the majority of its 50% equity interest in CareerOne in an arms-length transaction, leaving the Company with a 10% interest. Total cash received from the transaction was $9.1 million, and the sale resulted in recognition of a pre-tax gain of $8.8 million in the first quarter of 2015. This gain has been excluded from our Non-GAAP financial statements for the six months ended June 30, 2015. As a result of the sale, the Company no longer has the ability to exercise significant influence over CareerOne. Therefore, effective March 31, 2015, the remaining 10% interest retained by the Company is being accounted for under the cost method.
3.50% Convertible Senior Notes Due 2019
On October 22, 2014, the Company consummated an offering of $143.8 million aggregate principal amount of its 3.50% convertible senior notes due 2019 (the “Notes”), which includes $18.8 million in aggregate principal amount of Notes sold pursuant to the over-allotment option that was previously granted to the initial purchasers of the Notes and exercised by the initial purchasers on October 21, 2014. The Company received net proceeds of $139.0 million from the sale of the Notes, after deducting fees and expenses of $4.7 million. The Notes are unsecured, senior obligations of Monster, that bear interest at a rate of 3.50% per annum, payable in arrears on April 15 and October 15 of each year to holders of record at the close of business on the preceding April 1 and October 1, respectively. The Notes will mature on October 15, 2019, unless converted or repurchased in accordance with their terms prior to such date.
In connection with the offering of the Notes, Monster entered into capped call transactions with an affiliate of one of the initial purchasers. The Company used $16.5 million of the net proceeds to pay for the cost of the capped call transactions, $82.5 million to repay in full the term loan outstanding as of the date of issuance, and $40.0 million to repay a portion loans outstanding under the revolving credit facility.
In accordance with ASC 470-20, Debt with Conversion and Other Options, the Notes were separated into debt and equity components and assigned a fair value. The value assigned to the debt component was the estimated fair value, as of the issuance date, of similar debt without the conversion feature. The difference between the cash proceeds and this estimated fair value represents the value which was assigned to the equity component and was recorded as a debt discount. The debt discount is being amortized using the effective interest method from the date of issuance through the October 15, 2019 maturity date.
The initial debt component of the Notes was valued at $122.8 million, based on the contractual cash flows discounted at an appropriate market rate for non-convertible debt at the date of issuance. The carrying value of the permanent equity component reported in additional paid-in-capital was initially valued at $20.2 million, which is net of $0.7 million of fees and expenses allocated to the equity component.
The Company recognized $1.0 million and $2.1 million of amortization of the debt discount during the three and six months ended June 30, 2015, respectively. The Company recognized $0.2 million and $0.4 million of amortization of deferred financing fees relating to the Notes during the three and six months ended June 30, 2015, respectively. These charges have been excluded from our Non-GAAP financial statements for the respective periods.
3
Income Tax
Effective the first quarter of 2015, the Company has begun to utilize a fixed long-term projected Non-GAAP tax rate for reporting operating results and for planning, forecasting, and analyzing future periods. This change provides better consistency across the interim reporting periods by eliminating the effects of non-recurring and period-specific items. The Non-GAAP tax rate is 35%. See detailed discussion in the “Non-GAAP financial measures” section below.
As a result of the gain on the partial sale of the Company’s interest in CareerOne, the Company recognized a tax provision of $4.9 million in the first quarter of 2015. In addition, as a result of settlement of a tax examination during the first quarter of 2015, the Company recorded a tax benefit due to recognition of previously unrecognized tax positions, and reversed accrued interest and penalties on unrecognized tax positions, which, on a net of tax basis, impacted the effective tax rate by $15.8 million. These items have been excluded from our Non-GAAP financial statements for the six months ended June 30, 2015.
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.
Reclassifications
Certain reclassifications of prior year amounts have been made for consistent presentation.
Non-GAAP financial measures
The Company has provided certain Non-GAAP financial information as additional information for its operating results. These measures are not in accordance with, or an alternative for, generally accepted accounting principles (“GAAP”) and may be different from Non-GAAP measures reported by other companies. The Company believes that its presentation of Non-GAAP measures provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations.
Non-GAAP revenue, operating expenses, operating income, operating margin, net income, and diluted earnings per share attributable to Monster Worldwide, Inc. all exclude certain pro-forma adjustments including: non-cash stock based compensation expense; costs incurred in connection with the Company’s restructuring programs; separation charges associated with the resignation of the Company’s former Chief Executive Officer; non-cash impairment charges; amortization of the debt discount and deferred financing costs associated with our 3.50% convertible senior notes due 2019; write-off of deferred financing costs relating to our former credit facility, amended in October 2014; 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 provisions for increased valuation allowances on deferred tax assets; gain on deconsolidation of subsidiaries and tax provisions thereon; gain on partial sale of an equity method investment and tax provisions thereon; and charges related to exited facilities.
In the first quarter of the calendar year 2015, the Company began to utilize a fixed long-term projected Non-GAAP tax rate for reporting operating results and for planning, forecasting, and analyzing future periods. This change provides better consistency across the interim reporting periods by eliminating the effects of non-recurring and period-specific items. When projecting this long-term rate, the Company evaluated a five-year financial projection comprising the current and the next four years that exclude the income tax effects of the Non-GAAP pre-tax adjustments described above, eliminates the effects of non-recurring and period specific items which can vary in size and frequency, and is reflective of the anticipated future geographic mix of income among tax jurisdictions. The projected rate also assumes no new acquisitions or disposals in the five-year period, eliminates the effect of tax valuation allowances, and takes into account other factors including the Company’s current tax structure, its existing tax positions in various jurisdictions and key legislation in major jurisdictions where the Company operates. The Non-GAAP tax rate is 35%. The Company intends to re-evaluate this long-term rate on an annual basis or if any significant events that may materially affect this long-term rate occur. This long-term rate could be subject to change for a variety of reasons, which may include (but are not limited to) for example, significant changes in the geographic earnings mix including future acquisition or disposition activity, having less income than anticipated, or fundamental tax law changes in major jurisdictions where the Company operates.
4
Non-GAAP diluted shares includes the impact, based on the average share price for the period, of the Company’s outstanding capped call transactions, which are anti-dilutive in GAAP earnings per share, but are expected to mitigate the dilutive effect of the Company’s 3.50% convertible senior notes due 2019.
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, non-cash impairment charges, and non-cash costs incurred in connection with the Company’s restructuring programs. Adjusted EBITDA excludes the impact of the pro-forma adjustments discussed above. The Company considers EBITDA and Adjusted 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 and Adjusted EBITDA are Non-GAAP measures and may not be comparable to similarly titled measures reported by other companies.
Free cash flow is defined as cash flows 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.
5
Monster Worldwide, Inc.
Statements of Operations
(unaudited, in thousands, except per share amounts)
Trended Data | |||||||||||||||||||||||||||
Summary P&L Information | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | FY 2014 | Q1 2015 | Q2 2015 | ||||||||||||||||||||
Careers - North America | $ | 127,545 | $ | 126,160 | $ | 124,757 | $ | 122,487 | $ | 500,949 | $ | 122,392 | $ | 119,844 | |||||||||||||
Careers - International | 70,604 | 68,281 | 66,463 | 63,716 | 269,064 | 61,301 | 60,570 | ||||||||||||||||||||
Revenue | 198,149 | 194,441 | 191,220 | 186,203 | 770,013 | 183,693 | 180,414 | ||||||||||||||||||||
Salary and related | 93,826 | 94,157 | 93,905 | 95,898 | 377,786 | 89,281 | 86,289 | ||||||||||||||||||||
Office and general | 42,688 | 37,296 | 39,992 | 38,355 | 158,331 | 34,235 | 32,840 | ||||||||||||||||||||
Marketing and promotion | 41,413 | 37,377 | 35,109 | 32,493 | 146,392 | 33,161 | 34,240 | ||||||||||||||||||||
Restructuring and other special charges | — | — | — | — | — | 20,222 | 5,977 | ||||||||||||||||||||
Goodwill impairment | — | — | — | 325,800 | 325,800 | — | — | ||||||||||||||||||||
Depreciation expense | 11,885 | 11,217 | 11,548 | 11,369 | 46,019 | 11,082 | 10,701 | ||||||||||||||||||||
Stock-based compensation | 8,173 | 9,063 | 6,682 | 11,439 | 35,357 | 4,465 | 3,626 | ||||||||||||||||||||
Amortization of intangibles | 634 | 618 | 646 | 726 | 2,624 | 725 | 729 | ||||||||||||||||||||
Operating expenses | 198,619 | 189,728 | 187,882 | 516,080 | 1,092,309 | 193,171 | 174,402 | ||||||||||||||||||||
Operating (loss) income | (470 | ) | 4,713 | 3,338 | (329,877 | ) | (322,296 | ) | (9,478 | ) | 6,012 | ||||||||||||||||
Gain on partial sale of equity method investment | — | — | — | — | — | 8,849 | — | ||||||||||||||||||||
Gain on deconsolidation of subsidiaries, net | 11,828 | — | — | — | 11,828 | — | — | ||||||||||||||||||||
Interest and other, net | (1,323 | ) | (1,660 | ) | (1,830 | ) | (3,739 | ) | (8,552 | ) | (3,107 | ) | (3,350 | ) | |||||||||||||
Income (loss) before income taxes and (loss) income in equity interests | 10,035 | 3,053 | 1,508 | (333,616 | ) | (319,020 | ) | (3,736 | ) | 2,662 | |||||||||||||||||
Provision for (benefit from) income taxes | 6,663 | 1,615 | 1,934 | (45,503 | ) | (35,291 | ) | (13,145 | ) | 2,816 | |||||||||||||||||
(Loss) income in equity interests, net | (133 | ) | 58 | 75 | (78 | ) | (78 | ) | (220 | ) | 292 | ||||||||||||||||
Net income (loss) | 3,239 | 1,496 | (351 | ) | (288,191 | ) | (283,807 | ) | 9,189 | 138 | |||||||||||||||||
Net income attributable to noncontrolling interest | (1,174 | ) | (1,462 | ) | (1,318 | ) | (1,528 | ) | (5,482 | ) | (1,019 | ) | (1,181 | ) | |||||||||||||
Net income (loss) attributable to Monster Worldwide, Inc. | $ | 2,065 | $ | 34 | $ | (1,669 | ) | $ | (289,719 | ) | $ | (289,289 | ) | $ | 8,170 | $ | (1,043 | ) | |||||||||
Basic earnings (loss) per share attributable to Monster Worldwide, Inc. | $ | 0.02 | $ | — | $ | (0.02 | ) | $ | (3.31 | ) | $ | (3.29 | ) | $ | 0.09 | $ | (0.01 | ) | |||||||||
Diluted earnings (loss) per share attributable to Monster Worldwide, Inc. | $ | 0.02 | $ | — | $ | (0.02 | ) | $ | (3.31 | ) | $ | (3.29 | ) | $ | 0.09 | $ | (0.01 | ) | |||||||||
Weighted avg. shares outstanding: | |||||||||||||||||||||||||||
Basic shares | 91,102 | 87,080 | 86,576 | 87,478 | 88,045 | 89,137 | 90,067 | ||||||||||||||||||||
Diluted shares | 94,416 | 89,955 | 86,576 | 87,478 | 88,045 | 91,474 | 90,067 | ||||||||||||||||||||
Global employees (ones) | 4,068 | 4,078 | 4,067 | 4,091 | 4,091 | 3,885 | 3,894 | ||||||||||||||||||||
Annualized revenue per average employee | $ | 196.5 | $ | 191.0 | $ | 187.8 | $ | 182.6 | $ | 189.5 | $ | 184.2 | $ | 185.5 | |||||||||||||
Monster Worldwide, Inc.
Non-GAAP Statements of Operations
(Unaudited, in thousands, except for per share amounts)
Trended Data | |||||||||||||||||||||||||||
Summary P&L Information | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | FY 2014 | Q1 2015 | Q2 2015 | ||||||||||||||||||||
Careers - North America | $ | 127,545 | $ | 126,160 | $ | 124,757 | $ | 122,487 | $ | 500,949 | $ | 122,392 | $ | 119,844 | |||||||||||||
Careers - International | 70,604 | 68,281 | 66,463 | 63,716 | 269,064 | 61,301 | 60,570 | ||||||||||||||||||||
Revenue | 198,149 | 194,441 | 191,220 | 186,203 | 770,013 | 183,693 | 180,414 | ||||||||||||||||||||
Salary and related | 93,826 | 94,157 | 93,905 | 90,924 | 372,812 | 89,281 | 84,289 | ||||||||||||||||||||
Office and general | 36,339 | 37,296 | 39,112 | 36,855 | 149,602 | 34,235 | 32,840 | ||||||||||||||||||||
Marketing and promotion | 41,413 | 37,377 | 35,109 | 32,493 | 146,392 | 33,161 | 34,240 | ||||||||||||||||||||
Depreciation expense | 11,885 | 11,217 | 11,548 | 11,369 | 46,019 | 11,081 | 10,701 | ||||||||||||||||||||
Amortization of intangibles | 634 | 618 | 646 | 726 | 2,624 | 726 | 729 | ||||||||||||||||||||
Operating expenses | 184,097 | 180,665 | 180,320 | 172,367 | 717,449 | 168,484 | 162,799 | ||||||||||||||||||||
Operating income | 14,052 | 13,776 | 10,900 | 13,836 | 52,564 | 15,209 | 17,615 | ||||||||||||||||||||
Interest and other, net | (1,323 | ) | (1,660 | ) | (1,830 | ) | (1,378 | ) | (6,191 | ) | (1,823 | ) | (2,098 | ) | |||||||||||||
Income before income taxes and equity interests | 12,729 | 12,116 | 9,070 | 12,458 | 46,373 | 13,386 | 15,517 | ||||||||||||||||||||
Provision for income taxes | 4,083 | 3,756 | 3,175 | 4,365 | 15,379 | 4,686 | 5,431 | ||||||||||||||||||||
(Loss) income in equity interests, net | (133 | ) | 58 | 75 | (78 | ) | (78 | ) | (220 | ) | 292 | ||||||||||||||||
Net income | 8,513 | 8,418 | 5,970 | 8,015 | 30,916 | 8,480 | 10,378 | ||||||||||||||||||||
Net income attributable to noncontrolling interest | (1,174 | ) | (1,462 | ) | (1,318 | ) | (1,528 | ) | (5,482 | ) | (1,019 | ) | (1,181 | ) | |||||||||||||
Net income attributable to Monster Worldwide, Inc. | $ | 7,339 | $ | 6,956 | $ | 4,652 | $ | 6,487 | $ | 25,434 | $ | 7,461 | $ | 9,197 | |||||||||||||
Diluted earnings per share attributable to Monster Worldwide, Inc. | $ | 0.08 | $ | 0.08 | $ | 0.05 | $ | 0.07 | $ | 0.28 | $ | 0.08 | $ | 0.10 | |||||||||||||
Weighted avg. shares outstanding: | |||||||||||||||||||||||||||
Diluted shares | 94,416 | 89,955 | 89,317 | 90,664 | 91,091 | 91,474 | 90,874 | ||||||||||||||||||||
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 | |||||||||||||||||||||||||||
Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | FY 2014 | Q1 2015 | Q2 2015 | |||||||||||||||||||||
Segment Revenue: | |||||||||||||||||||||||||||
Careers - North America | $ | 127,545 | $ | 126,161 | $ | 124,757 | $ | 122,486 | $ | 500,949 | $ | 122,392 | $ | 119,844 | |||||||||||||
Careers - International | 70,604 | 68,280 | 66,463 | 63,717 | 269,064 | 61,301 | 60,570 | ||||||||||||||||||||
Total revenue | $ | 198,149 | $ | 194,441 | $ | 191,220 | $ | 186,203 | $ | 770,013 | $ | 183,693 | $ | 180,414 | |||||||||||||
Segment operating income (loss): GAAP | |||||||||||||||||||||||||||
Careers - North America | $ | 15,811 | $ | 21,366 | $ | 21,752 | $ | (305,847 | ) | $ | (246,918 | ) | $ | 13,338 | $ | 25,247 | |||||||||||
Careers - International | (5,289 | ) | (6,974 | ) | (7,551 | ) | (5,315 | ) | (25,129 | ) | (12,918 | ) | (7,484 | ) | |||||||||||||
Total operating income (loss) GAAP | $ | 10,522 | $ | 14,392 | $ | 14,201 | $ | (311,162 | ) | $ | (272,047 | ) | $ | 420 | $ | 17,763 | |||||||||||
Corporate expenses GAAP | (10,992 | ) | (9,679 | ) | (10,863 | ) | (18,715 | ) | (50,249 | ) | (9,898 | ) | (11,751 | ) | |||||||||||||
Total operating income (loss) GAAP | $ | (470 | ) | $ | 4,713 | $ | 3,338 | $ | (329,877 | ) | $ | (322,296 | ) | $ | (9,478 | ) | $ | 6,012 | |||||||||
Segment operating income (loss): Non-GAAP(1) | |||||||||||||||||||||||||||
Careers - North America | $ | 21,923 | $ | 24,980 | $ | 24,617 | $ | 23,921 | $ | 95,441 | $ | 25,846 | $ | 27,071 | |||||||||||||
Careers - International | (3,130 | ) | (4,512 | ) | (5,556 | ) | (2,879 | ) | (16,077 | ) | (3,120 | ) | (2,514 | ) | |||||||||||||
Total operating income Non-GAAP | $ | 18,793 | $ | 20,468 | $ | 19,061 | $ | 21,042 | $ | 79,364 | $ | 22,726 | $ | 24,557 | |||||||||||||
Corporate expenses Non-GAAP | (4,741 | ) | (6,692 | ) | (8,161 | ) | (7,206 | ) | (26,800 | ) | (7,517 | ) | (6,942 | ) | |||||||||||||
Total operating income Non-GAAP | $ | 14,052 | $ | 13,776 | $ | 10,900 | $ | 13,836 | $ | 52,564 | $ | 15,209 | $ | 17,615 | |||||||||||||
(1) - See notes to financial supplement for further explanation of Non-GAAP measures.
Monster Worldwide, Inc.
Reconciliation of Operating Income (Loss) to EBITDA and Adjusted EBITDA
(unaudited, in thousands)
Trended Data | |||||||||||||||||||||||||||
Summary P&L Information | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | FY 2014 | Q1 2015 | Q2 2015 | ||||||||||||||||||||
Revenue | $ | 198,149 | $ | 194,441 | $ | 191,220 | $ | 186,203 | $ | 770,013 | $ | 183,693 | $ | 180,414 | |||||||||||||
Operating (loss) income - GAAP | $ | (470 | ) | $ | 4,713 | $ | 3,338 | $ | (329,877 | ) | $ | (322,296 | ) | $ | (9,478 | ) | $ | 6,012 | |||||||||
Depreciation expense | 11,885 | 11,217 | 11,548 | 11,369 | 46,019 | 11,082 | 10,701 | ||||||||||||||||||||
Stock-based compensation | 8,173 | 9,063 | 6,682 | 11,439 | 35,357 | 4,465 | 3,626 | ||||||||||||||||||||
Goodwill impairment | — | — | — | 325,800 | 325,800 | — | — | ||||||||||||||||||||
Restructuring non-cash charges and other | — | — | — | 1,000 | 1,000 | 4,226 | — | ||||||||||||||||||||
Amortization of intangibles | 634 | 618 | 646 | 726 | 2,624 | 725 | 729 | ||||||||||||||||||||
EBITDA (1) | $ | 20,222 | $ | 25,611 | $ | 22,214 | $ | 20,457 | $ | 88,504 | $ | 11,020 | $ | 21,068 | |||||||||||||
Separation costs | — | — | — | 4,974 | 4,974 | — | 2,000 | ||||||||||||||||||||
Facilities costs | 6,349 | — | 880 | 500 | 7,729 | — | — | ||||||||||||||||||||
Restructuring expenses, less non-cash items | — | — | — | — | — | 15,996 | 5,977 | ||||||||||||||||||||
Total Non-GAAP Adjustments | 6,349 | — | 880 | 5,474 | 12,703 | 15,996 | 7,977 | ||||||||||||||||||||
Adjusted EBITDA (1) | $ | 26,571 | $ | 25,611 | $ | 23,094 | $ | 25,931 | $ | 101,207 | $ | 27,016 | $ | 29,045 | |||||||||||||
(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 2014 | Q2 2014 | Q3 2014 | Q4 2014 | FY 2014 | Q1 2015 | Q2 2015 | |||||||||||||||||||||
Cash flows provided by operating activities: | |||||||||||||||||||||||||||
Net income (loss) | $ | 3,239 | $ | 1,496 | $ | (351 | ) | $ | (288,191 | ) | $ | (283,807 | ) | $ | 9,189 | $ | 138 | ||||||||||
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||||||||||||||||||||||||||
Depreciation and amortization | 12,519 | 11,835 | 12,194 | 12,095 | 48,643 | 11,807 | 11,430 | ||||||||||||||||||||
Provision for doubtful accounts | 316 | 412 | 562 | 417 | 1,707 | 323 | 438 | ||||||||||||||||||||
Stock-based compensation | 8,173 | 9,063 | 6,682 | 11,439 | 35,357 | 4,465 | 3,626 | ||||||||||||||||||||
Deferred income taxes | 3,893 | (491 | ) | 53 | (46,873 | ) | (43,418 | ) | 3,933 | 772 | |||||||||||||||||
Non-cash restructuring charges | — | — | — | — | — | 4,226 | — | ||||||||||||||||||||
Impairment of investment and indefinite live intangible | — | — | — | 2,070 | 2,070 | — | — | ||||||||||||||||||||
Goodwill impairment | — | — | — | 325,000 | 325,000 | — | — | ||||||||||||||||||||
Loss (income) in equity interests, net | 133 | (58 | ) | (75 | ) | 78 | 78 | 220 | (292 | ) | |||||||||||||||||
Gain on deconsolidation of subsidiaries | (13,647 | ) | — | — | — | (13,647 | ) | — | — | ||||||||||||||||||
Amount reclassified from accumulated other comprehensive income | 1,819 | — | — | — | 1,819 | — | — | ||||||||||||||||||||
Gain on partial sale of equity method investment | — | — | — | — | — | (8,849 | ) | — | |||||||||||||||||||
Excess income tax benefit from equity compensation plans | (130 | ) | (69 | ) | — | — | (199 | ) | — | — | |||||||||||||||||
Changes in assets and liabilities, net of acquisitions: | |||||||||||||||||||||||||||
Accounts receivable | 14,501 | 25,023 | 25,832 | (24,789 | ) | 40,567 | (255 | ) | 21,233 | ||||||||||||||||||
Prepaid and other | (14,838 | ) | 6,848 | (2,855 | ) | (863 | ) | (11,708 | ) | (4,298 | ) | 8,419 | |||||||||||||||
Deferred revenue | (964 | ) | (26,525 | ) | (29,483 | ) | 24,256 | (32,716 | ) | 9,946 | (24,127 | ) | |||||||||||||||
Accounts payable, accrued liabilities, and other | 3,893 | (2,634 | ) | (622 | ) | 12,372 | 13,009 | (3,948 | ) | (5,589 | ) | ||||||||||||||||
Total adjustments | 15,668 | 23,404 | 12,288 | 315,202 | 366,562 | 17,570 | 15,910 | ||||||||||||||||||||
Net cash provided by operating activities | 18,907 | 24,900 | 11,937 | 27,011 | 82,755 | 26,759 | 16,048 | ||||||||||||||||||||
Cash flows used for investing activities: | |||||||||||||||||||||||||||
Capital expenditures | (10,700 | ) | (11,769 | ) | (8,287 | ) | (9,087 | ) | (39,843 | ) | (7,945 | ) | (6,790 | ) | |||||||||||||
Payments for acquisitions, net of cash acquired | (27,005 | ) | — | — | — | (27,005 | ) | — | — | ||||||||||||||||||
Investment in Alma Career Oy | (6,516 | ) | — | — | — | (6,516 | ) | — | — | ||||||||||||||||||
Dividends received from equity investment and other | (729 | ) | 113 | (606 | ) | (941 | ) | (2,163 | ) | 976 | 672 | ||||||||||||||||
Capitalized patent defense costs | — | (1,220 | ) | (1,742 | ) | (1,577 | ) | (4,539 | ) | (2,263 | ) | (42 | ) | ||||||||||||||
Cash received from partial sale of equity method investment | — | — | — | — | — | 9,128 | — | ||||||||||||||||||||
Net cash used for investing activities | (44,950 | ) | (12,876 | ) | (10,635 | ) | (11,605 | ) | (80,066 | ) | (104 | ) | (6,160 | ) | |||||||||||||
Cash flows provided by (used for) financing activities: | |||||||||||||||||||||||||||
Proceeds from borrowings on credit facilities | 78,800 | — | 1,500 | 66,100 | 146,400 | 31,600 | 500 | ||||||||||||||||||||
Payments on borrowings on credit facilities | — | (8,100 | ) | — | (184,200 | ) | (192,300 | ) | (31,600 | ) | (500 | ) | |||||||||||||||
Proceeds from borrowings on term loan | — | — | — | 90,000 | 90,000 | — | — | ||||||||||||||||||||
Payments on borrowings on term loan | (1,875 | ) | (2,500 | ) | (2,500 | ) | (84,750 | ) | (91,625 | ) | (2,250 | ) | (2,250 | ) | |||||||||||||
Proceeds from convertible notes | — | — | — | 143,750 | 143,750 | — | — | ||||||||||||||||||||
Fees paid on the issuance of debt and purchase of capped call | — | — | — | (23,111 | ) | (23,111 | ) | (997 | ) | (113 | ) | ||||||||||||||||
Tax withholdings related to net share settlements of restricted stock awards and units | (1,427 | ) | (2,280 | ) | (1,307 | ) | (5,551 | ) | (10,565 | ) | (5,494 | ) | (1,306 | ) | |||||||||||||
Repurchase of common stock | (39,653 | ) | (11,864 | ) | (553 | ) | — | (52,070 | ) | — | — | ||||||||||||||||
Excess income tax benefit from equity compensation plans | 130 | 69 | — | — | 199 | — | — | ||||||||||||||||||||
Distribution paid to minority shareholder | — | (3,021 | ) | — | — | (3,021 | ) | — | (10,018 | ) | |||||||||||||||||
Net cash provided by (used for) financing activities | 35,975 | (27,696 | ) | (2,860 | ) | 2,238 | 7,657 | (8,741 | ) | (13,687 | ) | ||||||||||||||||
Effects of exchange rates on cash | 118 | 1,436 | (2,461 | ) | (3,723 | ) | (4,630 | ) | (1,981 | ) | 1,250 | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 10,050 | (14,236 | ) | (4,019 | ) | 13,921 | 5,716 | 15,933 | (2,549 | ) | |||||||||||||||||
Cash and cash equivalents, beginning of period | 88,581 | 98,631 | 84,395 | 80,376 | 88,581 | 94,297 | 110,230 | ||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 98,631 | $ | 84,395 | $ | 80,376 | $ | 94,297 | $ | 94,297 | $ | 110,230 | $ | 107,681 | |||||||||||||
Monster Worldwide, Inc.
Consolidated Condensed Balance Sheets
(unaudited, in thousands)
Trended Data | |||||||||||||||||||||||
March 2014 | June 2014 | September 2014 | December 2014 | March 2015 | June 2015 | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 98,631 | $ | 84,395 | $ | 80,376 | $ | 94,297 | $ | 110,230 | $ | 107,681 | |||||||||||
Accounts receivable, net | 318,615 | 293,732 | 262,434 | 282,523 | 275,539 | 256,190 | |||||||||||||||||
Prepaid and other | 92,717 | 88,127 | 87,353 | 83,326 | 66,785 | 67,005 | |||||||||||||||||
Total current assets | 509,963 | 466,254 | 430,163 | 460,146 | 452,554 | 430,876 | |||||||||||||||||
Property and equipment, net | 126,232 | 126,345 | 121,461 | 119,729 | 117,203 | 114,398 | |||||||||||||||||
Goodwill | 918,672 | 915,024 | 891,870 | 540,621 | 535,790 | 536,743 | |||||||||||||||||
Intangibles, net | 27,849 | 29,186 | 31,327 | 30,503 | 29,802 | 29,306 | |||||||||||||||||
Investment in unconsolidated affiliates | 24,584 | 23,759 | 22,690 | 20,700 | 18,832 | 19,082 | |||||||||||||||||
Other assets | 35,496 | 36,697 | 37,355 | 45,452 | 49,284 | 41,914 | |||||||||||||||||
Total assets | $ | 1,642,796 | $ | 1,597,265 | $ | 1,534,866 | $ | 1,217,151 | $ | 1,203,465 | $ | 1,172,319 | |||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable, accrued expenses and other | $ | 166,270 | $ | 160,613 | $ | 153,343 | $ | 159,027 | $ | 160,821 | $ | 157,229 | |||||||||||
Deferred revenue | 341,947 | 315,786 | 281,039 | 300,724 | 303,535 | 281,793 | |||||||||||||||||
Current portion of long-term debt | 212,200 | 201,600 | 10,000 | 9,563 | 10,125 | 10,688 | |||||||||||||||||
Total current liabilities | 720,417 | 677,999 | 444,382 | 469,314 | 474,481 | 449,710 | |||||||||||||||||
Long-term income taxes payable | 54,451 | 55,355 | 56,465 | 54,636 | 37,550 | 37,652 | |||||||||||||||||
Long-term debt, net, less current portion | — | — | 190,600 | 201,821 | 200,055 | 198,289 | |||||||||||||||||
Other liabilities | 53,527 | 57,146 | 59,219 | 16,635 | 18,125 | 17,581 | |||||||||||||||||
Total liabilities | 828,395 | 790,500 | 750,666 | 742,406 | 730,211 | 703,232 | |||||||||||||||||
Common stock and class B common stock | 142 | 142 | 143 | 144 | 146 | 146 | |||||||||||||||||
Additional paid-in capital | 2,003,528 | 2,009,119 | 2,015,019 | 2,023,640 | 2,022,062 | 2,024,842 | |||||||||||||||||
Accumulated other comprehensive income (loss) | 67,691 | 61,916 | 35,685 | 9,245 | (110 | ) | 3,152 | ||||||||||||||||
Accumulated deficit | (562,806 | ) | (562,772 | ) | (564,441 | ) | (854,160 | ) | (845,990 | ) | (847,033 | ) | |||||||||||
Treasury stock, at cost | (745,954 | ) | (757,819 | ) | (758,371 | ) | (758,371 | ) | (758,371 | ) | (758,371 | ) | |||||||||||
Noncontrolling interest | 51,800 | 56,179 | 56,165 | 54,247 | 55,517 | 46,351 | |||||||||||||||||
Total stockholders' equity | 814,401 | 806,765 | 784,200 | 474,745 | 473,254 | 469,087 | |||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,642,796 | $ | 1,597,265 | $ | 1,534,866 | $ | 1,217,151 | $ | 1,203,465 | $ | 1,172,319 | |||||||||||
Memo(1) | |||||||||||||||||||||||
- Net cash | $ | (113,569 | ) | $ | (117,205 | ) | $ | (120,224 | ) | $ | (117,088 | ) | $ | (99,950 | ) | $ | (101,296 | ) | |||||
(1) See notes to financial supplement for definitions and calculations of selected financial metrics.