NEW YORK--(BUSINESS WIRE)--Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the third quarter ended September 30, 2012. The Company also announced that it will implement a corporate restructuring to focus on its core business and reduce its cost structure in order to improve profitability and cash flow.
Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide, said, “During the third quarter, our bookings in North America, excluding the Government vertical, were up slightly, while bookings in Europe and Asia were negatively impacted by the challenging economic environment. We are implementing a plan to concentrate our resources on our largest markets where we generate the lion’s share of our revenue and profit and where we are experiencing increased customer traction with our advanced technologies. We believe this plan provides Monster the resources to grow our leading businesses in North America and Europe.”
“While our strategic alternatives review is ongoing and we remain committed to maximizing value for shareholders, today we are announcing a series of actions designed to increase the Company’s profitability and strengthen its core profitable markets,” Iannuzzi concluded.
Corporate Restructuring
The restructuring actions announced today include:
- Pursuing a sale of ChinaHR and classifying the asset as held for sale in third quarter financial results. As a result, ChinaHR is excluded from third quarter continuing operations and prior results have been restated to reflect this change. The Company reported a non-cash asset impairment charge and deferred tax asset write-off of $225 million related to ChinaHR in the GAAP operating results.
- Evaluating all options for developing markets and substantially curtailing the losses incurred in those markets.
- Continuing and accelerating the redeployment of expenses into marketing and sales in Monster’s core markets, while reducing the run rate of operating expenses.
This series of actions described above is expected to reduce Monster Worldwide’s operating expense by approximately $130 million on an annualized basis. Cumulative pre-tax charges within the range of $50 million to $60 million will be recorded, of which the majority will be cash and recorded in the fourth quarter 2012. The Company anticipates the majority of these actions will occur by year end.
Third Quarter 2012 Results
As a result of the impairment charge and classification of ChinaHR as an asset held for sale, actual reported results will not be comparable to revenue and EPS guidance provided in Monster Worldwide’s August 2, 2012 second quarter earnings release. On a comparable basis, third quarter revenue and EPS are in line with previous guidance range.
Total bookings from continuing operations were $213 million, compared to $249 million in the same period a year ago. On a year over year basis, currency translation had a $7 million negative impact on bookings in the third quarter 2012. The year over year decline in total bookings is primarily attributable to continued weakness in Europe and Asia, both of which have been negatively impacted by global economic challenges, partially offset by strength in North America’s staffing and newspaper channels. Revenue from continuing operations was $222 million, compared to third quarter 2011 revenue of $249 million. On a year over year basis, currency translation had a $9 million negative impact on revenue in the third quarter 2012. Historical data on bookings and revenue from continuing operations for prior quarters is available in the Company’s supplemental financial information.
Consolidated GAAP operating expenses from continuing operations of $207 million compares to $219 million in the third quarter 2011. Net income from continuing operations for the third quarter was $39 million, or $0.35 per share, which included a $31 million or $0.28 per share non-cash tax benefit associated with the reversal of a previously recorded ASC 740 (FIN 48) tax and interest liability. In the third quarter 2011, the Company reported net income from continuing operations of $19 million, or $0.15 per share. Pro-forma items are described in the "Notes Regarding the Use of Non-GAAP Financial Measures" and are reconciled to the GAAP measure in the accompanying tables.
Non-GAAP net income from continuing operations of $9.5 million, or $0.09 per share, compares to $20 million, or $0.16 per share in the third quarter 2011. Non-GAAP operating expenses of $205 million decreased 6% year over year.
Cash and cash equivalents were $175 million as of September 30, 2012 compared to $250 million as of December 31, 2011. Net operating cash flow in the quarter was $7.7 million. Deferred revenue as of September 30, 2012 was $333 million compared to $330 million as of September 30, 2011, which excludes results from ChinaHR.
Nine Months Results
Monster Worldwide reported total revenue from continuing operations of $682 million for the nine months ended September 30, 2012 compared to $761 million in the same period last year, which included $22 million from IAF’s arbitrage lead generation business and a $2.7 million purchase accounting adjustment related to the HotJobs acquisition. The Company reported GAAP earnings from continuing operations of $57 million, or $0.50 per diluted share, compared to GAAP earnings of $35 million, or $0.27 per diluted share, in the prior period.
Share Repurchase
During the third quarter 2012, Monster repurchased 1.1 million shares of its common stock at an average cost of $6.16 per share, for a total of $7 million. At September 30, 2012, there was approximately $143 million remaining under the Company’s previously announced $250 million share repurchase program.
Company Provides Q4 EPS Guidance
In light of the continued global economic weakness and actions announced today, the Company will not be providing guidance for bookings and revenues at this time. Fourth quarter EPS from continuing operations is expected to be in the range of $0.05 to $0.10. This translates into full year 2012 EPS from continuing operations to be in the range of $0.29 to $0.34.
Conference Call and Webcast
Third quarter 2012 results will be discussed on Monster Worldwide’s quarterly conference call on November 8, 2012 at 8:30 AM ET. A live webcast of the conference call can be accessed online through the Investor Relations section of the Company’s website at http://ir.monster.com. To join the conference call by telephone, please dial (888) 696-1396 or (706) 758-9636 and reference conference ID 43475537.
A presentation of financial slides will be referenced during the conference call and will be viewable through the live webcast. A PDF of the financial presentation can also be accessed directly at http://www.about-monster.com/sites/default/files/2012_Q3_earningslidefinal.pdf or through the Company’s Investor Relations website at http://ir.monster.com.
The Company has also made available certain supplemental financial information which can be accessed directly at http://www.about-monster.com/sites/default/files/2012_Q3_MWWFinancialSupplements.pdf or through the Company’s Investor Relations website at http://ir.monster.com.
For a replay of the conference call, please dial (855) 859-2056 or (404) 537-3406 and reference ID# 21035000. This number is valid until midnight on November 22, 2012.
About Monster Worldwide
Monster Worldwide, Inc. (NYSE: MWW), parent company of Monster®, is the worldwide leader in successfully connecting people to job opportunities. From the web, to mobile, to social, Monster helps companies find people with customized solutions using the world's most advanced technology to match the right person to the right job. With a local presence in approximately 55 countries, Monster connects employers with quality job seekers at all levels, provides personalized career advice to consumers globally and delivers vast, highly targeted audiences to advertisers. To learn more about Monster’s industry-leading products and services, visit www.monster.com. More company information is available at http://about-monster.com.
Special Note: The statements in this release that are not strictly historical, including, without limitation, statements regarding the Company's strategic direction, prospects and future results, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risks and uncertainties and, therefore, actual results may differ materially from what is expressed or implied herein and no assurance can be given that the Company will achieve, among other things, its outlook with respect to earnings per share for the fourth fiscal quarter 2012 or the full 2012 fiscal year. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, economic and other conditions in the markets in which we operate, risks associated with acquisitions or dispositions, competition, and the other risks discussed in our Form 10-Q and our other filings made with the Securities and Exchange Commission, which discussions are incorporated into this release by reference. Many of the factors that will determine the Company’s future results are beyond the ability of management to control or predict. Readers should not place undue reliance on the forward-looking statements in this release as they reflect management’s views only as of the date hereof. The Company undertakes no obligation to revise or update any of the forward-looking statements contained in this release or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Notes Regarding the Use of Non-GAAP Financial Measures
The Company has provided certain non-GAAP financial information as additional information for its operating results. These measures are not in accordance with, or an alternative for, generally accepted accounting principles (“GAAP”) and may be different from non-GAAP measures reported by other companies. The Company believes that its presentation of non-GAAP measures provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations.
Non-GAAP revenue, operating expenses, operating income from continuing operations, operating margin, net income from continuing operations, net (loss) income from discontinued operations, and diluted earnings (loss) per share all exclude certain pro-forma adjustments including: costs incurred for the 2012 restructuring; recovery of restitution award from former executive; costs incurred for the Company’s 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 program; the results of the Careers – China business as it has been classified as held for sale in the third quarter of 2012; the fair value adjustment to deferred revenue in connection with the acquisition the HotJobs Assets; the receipt of escrowed funds associated with the ChinaHR acquisition; severance and facility charges primarily related to the product and technology global reorganization; changes in sublet assumptions on previously exited facilities; acquisition and integration-related costs related to the acquisition of the HotJobs Assets; realized and unrealized gains and losses on marketable securities; and restructuring charges primarily related to severance and facility charges associated with the decision to no longer engage in certain activities within the Internet Advertising & Fees segment. The Company uses these non-GAAP measures for reviewing the ongoing results of the Company’s core business operations and in certain instances, for measuring performance under certain of the Company’s incentive compensation plans. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is defined as net income or loss before interest income or expense, income tax expense or benefit, net gain or loss in equity interests, depreciation and amortization, non-cash compensation expense and non-cash restructuring costs. The Company considers EBITDA to be an important indicator of its operational strength which the Company believes is useful to management and investors in evaluating its operating performance. EBITDA is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies.
Operating income before depreciation and amortization (“OIBDA”) is defined as net income or loss from operations before depreciation, amortization of intangible assets, amortization of stock-based compensation and non-cash costs incurred in connection with the Company’s restructuring program. The Company considers OIBDA to be an important indicator of its operational strength. This measure eliminates the effects of depreciation, amortization of intangible assets, amortization of stock-based compensation and non-cash restructuring costs from period to period, which the Company believes is useful to management and investors in evaluating its operating performance. OIBDA is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies.
Bookings represent the dollar value of contractual orders received in the relevant period.
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 is defined as cash and cash equivalents plus short-term marketable securities, less total debt. Total available liquidity is defined as cash and cash equivalents, plus short-term marketable securities plus unused borrowings under our credit facilities. The Company considers net cash and securities and total available liquidity to be important measures of liquidity and indicators of its ability to meet its ongoing obligations. The Company also uses net cash and securities and total available liquidity, among other measures, in evaluating its choices for capital deployment. Net cash and securities and total available liquidity are presented herein as non-GAAP measures and may not be comparable to similarly titled measures used by other companies.
| MONSTER WORLDWIDE, INC. | ||||||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Revenue | $ | 221,710 | $ | 248,580 | $ | 681,971 | $ | 761,241 | ||||||||
| Salaries and related | 100,837 | 121,602 | 317,117 | 379,833 | ||||||||||||
| Office and general | 61,289 | 52,912 | 173,222 | 174,652 | ||||||||||||
| Marketing and promotion | 44,712 | 42,911 | 148,517 | 150,582 | ||||||||||||
| Restructuring and other special charges | 244 | 2,004 | 25,678 | 2,004 | ||||||||||||
| Recovery of restitution award from former executive | - | - | (5,350 | ) | - | |||||||||||
| Total operating expenses | 207,082 | 219,429 | 659,184 | 707,071 | ||||||||||||
| Operating income | 14,628 | 29,151 | 22,787 | 54,170 | ||||||||||||
| Interest and other, net | (1,530 | ) | (1,422 | ) | (4,172 | ) | (2,427 | ) | ||||||||
| Income before income taxes and loss in equity interests | 13,098 | 27,729 | 18,615 | 51,743 | ||||||||||||
| (Benefit from) provision for income taxes | (26,162 | ) | 8,813 | (39,122 | ) | 16,132 | ||||||||||
| Loss in equity interests, net | (271 | ) | (368 | ) | (726 | ) | (996 | ) | ||||||||
| Income from continuing operations | 38,989 | 18,548 | 57,011 | 34,615 | ||||||||||||
| (Loss) income from discontinued operations, net of tax | (233,228 | ) | 13,279 | (242,706 | ) | 8,276 | ||||||||||
| Net (loss) income | $ | (194,239 | ) | $ | 31,827 | $ | (185,695 | ) | $ | 42,891 | ||||||
| Basic (loss) earnings per share: | ||||||||||||||||
| Income from continuing operations | $ | 0.35 | $ | 0.15 | $ | 0.50 | $ | 0.28 | ||||||||
| (Loss) income from discontinued operations, net of tax | (2.10 | ) | 0.11 | (2.14 | ) | 0.07 | ||||||||||
| Basic (loss) earnings per share | $ | (1.75 | ) | $ | 0.26 | $ | (1.64 | ) | $ | 0.35 | ||||||
| Diluted (loss) earnings per share: | ||||||||||||||||
| Income from continuing operations | $ | 0.35 | $ | 0.15 | $ | 0.50 | $ | 0.27 | ||||||||
| (Loss) income from discontinued operations, net of tax | (2.10 | ) | 0.11 | (2.14 | ) | 0.07 | ||||||||||
| Diluted (loss) earnings per share | $ | (1.75 | ) | $ | 0.26 | $ | (1.64 | ) | $ | 0.34 | ||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 111,239 | 122,991 | 113,460 | 122,212 | ||||||||||||
| Diluted | 112,212 | 123,972 | 114,622 | 124,338 | ||||||||||||
| Operating income before depreciation, amortization, and non-cash restructuring: | ||||||||||||||||
| Operating income | $ | 14,628 | $ | 29,151 | $ | 22,787 | $ | 54,170 | ||||||||
| Depreciation and amortization of intangibles | 16,141 | 17,353 | 48,094 | 52,121 | ||||||||||||
| Amortization of stock-based compensation | 5,711 | 8,788 | 21,274 | 33,805 | ||||||||||||
| Restructuring non-cash expenses | - | - | 6,417 | - | ||||||||||||
| Operating income before depreciation, amortization, and non-cash restructuring | $ | 36,480 | $ | 55,292 | $ | 98,572 | $ | 140,096 | ||||||||
| MONSTER WORLDWIDE, INC. | ||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (in thousands) | ||||||||
| Nine Months Ended September 30, | ||||||||
| 2012 | 2011 | |||||||
| Cash flows provided by operating activities: | ||||||||
| Net (loss) income | $ | (185,695 | ) | $ | 42,891 | |||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 52,741 | 56,298 | ||||||
| Provision for doubtful accounts | 2,064 | 2,452 | ||||||
| Non-cash compensation | 21,582 | 34,431 | ||||||
| Deferred income taxes | (294 | ) | (6,562 | ) | ||||
| Non-cash restructuring write-offs | 6,417 | - | ||||||
| Loss in equity interests, net | 726 | 996 | ||||||
| Gains on auction rate securities | - | (1,732 | ) | |||||
| Reversal of uncertain tax positions | (43,193 | ) | - | |||||
| Impairment of goodwill | 216,221 | - | ||||||
| Changes in assets and liabilities, net of acquisitions: | ||||||||
| Accounts receivable | 13,341 | 47,696 | ||||||
| Prepaid and other | 11,109 | (2,361 | ) | |||||
| Deferred revenue | (28,277 | ) | (24,931 | ) | ||||
| Accounts payable, accrued liabilities and other | (30,904 | ) | (24,163 | ) | ||||
| Total adjustments | 221,533 | 82,124 | ||||||
| Net cash provided by operating activities | 35,838 | 125,015 | ||||||
| Cash flows used for investing activities: | ||||||||
| Capital expenditures | (46,902 | ) | (45,433 | ) | ||||
| Cash funded to equity investee | (2,077 | ) | (2,559 | ) | ||||
| Sales and maturities of marketable securities | - | 1,732 | ||||||
| Dividends received from unconsolidated investee | 728 | 443 | ||||||
| Net cash used for investing activities | (48,251 | ) | (45,817 | ) | ||||
| Cash flows (used for) provided by financing activities: | ||||||||
| Proceeds from borrowings on credit facilities | 221,355 | 107,725 | ||||||
| Payments on borrowings on credit facilities | (271,802 | ) | (9,500 | ) | ||||
| Proceeds from borrowings on term loan | 100,000 | - | ||||||
| Payments on borrowings on term loan | (42,500 | ) | - | |||||
| Repurchase of common stock | (65,611 | ) | - | |||||
| Tax withholdings related to net share settlements of restricted stock awards and units | (8,030 | ) | (16,876 | ) | ||||
| Proceeds from the exercise of employee stock options | 23 | 23 | ||||||
| Net cash (used for) provided by financing activities | (66,565 | ) | 81,372 | |||||
| Effects of exchange rates on cash | 3,764 | (1,938 | ) | |||||
| Net (decrease) increase in cash and cash equivalents | (75,214 | ) | 158,632 | |||||
| Cash and cash equivalents, beginning of period | 250,317 | 163,169 | ||||||
| Cash and cash equivalents, end of period | $ | 175,103 | $ | 321,801 | ||||
| Free cash flow: | ||||||||
| Net cash provided by operating activities | $ | 35,838 | $ | 125,015 | ||||
| Less: Capital expenditures | (46,902 | ) | (45,433 | ) | ||||
| Free cash flow | $ | (11,064 | ) | $ | 79,582 | |||
| MONSTER WORLDWIDE, INC. | ||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (in thousands) | ||||||
| Assets: | September 30, 2012 | December 31, 2011 | ||||
| Cash and cash equivalents | $ | 175,103 | $ | 250,317 | ||
| Accounts receivable, net | 315,058 | 343,546 | ||||
| Property and equipment, net | 150,541 | 156,282 | ||||
| Goodwill and intangibles, net | 913,793 | 1,184,122 | ||||
| Other assets | 103,797 | 123,731 | ||||
| Assets of business held for sale | 80,303 | - | ||||
| Total Assets | $ | 1,738,595 | $ | 2,057,998 | ||
| Liabilities and Stockholders' Equity: | ||||||
| Accounts payable, accrued expenses and other current liabilities | $ | 170,700 | $ | 213,817 | ||
| Deferred revenue | 332,723 | 380,310 | ||||
| Current portion of long-term debt and borrowings on credit facility | 14,191 | 188,836 | ||||
| Long-term income taxes payable | 61,612 | 94,750 | ||||
| Long-term debt, less current portion | 181,750 | - | ||||
| Other long-term liabilities | 10,897 | 16,158 | ||||
| Liabilities of business held for sale | 31,881 | - | ||||
| Total Liabilities | $ | 803,754 | $ | 893,871 | ||
| Stockholders' Equity | 934,841 | 1,164,127 | ||||
| Total Liabilities and Stockholders' Equity | $ | 1,738,595 | $ | 2,057,998 | ||
| MONSTER WORLDWIDE, INC. | ||||||||||||||||||||||||||||
| UNAUDITED NON-GAAP STATEMENTS OF OPERATIONS AND RECONCILIATIONS | ||||||||||||||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||||||||||||||
| Three Months Ended September 30, 2012 | Three Months Ended September 30, 2011 | |||||||||||||||||||||||||||
| As Reported |
Non GAAP |
Consolidated |
As Reported |
Non GAAP |
Consolidated |
|||||||||||||||||||||||
| Revenue | $ | 221,710 | $ | - | $ | 221,710 | $ | 248,580 | $ | - | $ | 248,580 | ||||||||||||||||
| Salaries and related | 100,837 | - | 100,837 | 121,602 | - | 121,602 | ||||||||||||||||||||||
| Office and general | 61,289 | (1,484 | ) | g | 59,805 | 52,912 | - | 52,912 | ||||||||||||||||||||
| Marketing and promotion | 44,712 | - | 44,712 | 42,911 | - | 42,911 | ||||||||||||||||||||||
| Restructuring and other special charges | 244 | (244 | ) | e | - | 2,004 | (2,004 | ) | e | - | ||||||||||||||||||
| Total operating expenses | 207,082 | (1,728 | ) | 205,354 | 219,429 | (2,004 | ) | 217,425 | ||||||||||||||||||||
| Operating income | 14,628 | 1,728 | 16,356 | 29,151 | 2,004 | 31,155 | ||||||||||||||||||||||
| Operating margin | 6.6 | % | 7.4 | % | 11.7 | % | 12.5 | % | ||||||||||||||||||||
| Interest and other, net | (1,530 | ) | - | (1,530 | ) | (1,422 | ) | - | (1,422 | ) | ||||||||||||||||||
| Income before income taxes and loss in equity interests | 13,098 | 1,728 | 14,826 | 27,729 | 2,004 | 29,733 | ||||||||||||||||||||||
| (Benefit from) provision for income taxes | (26,162 | ) | 31,169 | i,j | 5,007 | 8,813 | 671 | j | 9,484 | |||||||||||||||||||
| Loss in equity interests, net | (271 | ) | - | (271 | ) | (368 | ) | - | (368 | ) | ||||||||||||||||||
| Income from continuing operations | 38,989 | (29,441 | ) | 9,548 | 18,548 | 1,333 | 19,881 | |||||||||||||||||||||
| (Loss) income from discontinued operations | (233,228 | ) | 233,228 | k | - | 13,279 | (13,279 | ) | k | - | ||||||||||||||||||
| Net (loss) income | $ | (194,239 | ) | $ | 203,787 | $ | 9,548 | $ | 31,827 | $ | (11,946 | ) | $ | 19,881 | ||||||||||||||
| Diluted (loss) earnings per share:* | ||||||||||||||||||||||||||||
| Income from continuing operations | $ | 0.35 | $ | (0.26 | ) | $ | 0.09 | $ | 0.15 | $ | 0.01 | $ | 0.16 | |||||||||||||||
| (Loss) income from discontinued operations, net of tax | (2.10 | ) | 2.10 | - | 0.11 | (0.11 | ) | - | ||||||||||||||||||||
| Diluted (loss) earnings per share | $ | (1.75 | ) | $ | 1.83 | $ | 0.09 | $ | 0.26 | $ | (0.10 | ) | $ | 0.16 | ||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||||||
| Basic | 111,239 | 111,239 | 111,239 | 122,991 | 122,991 | 122,991 | ||||||||||||||||||||||
| Diluted | 112,212 | 112,212 | 112,212 | 123,972 | 123,972 | 123,972 | ||||||||||||||||||||||
| Nine Months Ended September 30, 2012 | Nine Months Ended September 30, 2011 | |||||||||||||||||||||||||||
| As Reported |
Non GAAP |
Consolidated |
As Reported |
Non GAAP |
Consolidated |
|||||||||||||||||||||||
| Revenue | $ | 681,971 | $ | - | $ | 681,971 | $ | 761,241 | 2,658 | a | $ | 763,899 | ||||||||||||||||
| Salaries and related | 317,117 | - | 317,117 | 379,833 | (1,178 | ) | b,c | 378,655 | ||||||||||||||||||||
| Office and general | 173,222 | (3,313 | ) | g | 169,909 | 174,652 | (6,829 | ) | c,d | 167,823 | ||||||||||||||||||
| Marketing and promotion | 148,517 | - | 148,517 | 150,582 | - | 150,582 | ||||||||||||||||||||||
| Restructuring and other special charges | 25,678 | (25,678 | ) | e | - | 2,004 | (2,004 | ) | e | - | ||||||||||||||||||
| Recovery of restitution award from former executive | (5,350 | ) | 5,350 | f | - | - | - | - | ||||||||||||||||||||
| Total operating expenses | 659,184 | (23,641 | ) | 635,543 | 707,071 | (10,011 | ) | 697,060 | ||||||||||||||||||||
| Operating income | 22,787 | 23,641 | 46,428 | 54,170 | 12,669 | 66,839 | ||||||||||||||||||||||
| Operating margin | 3.3 | % | 6.8 | % | 7.1 | % | 8.7 | % | ||||||||||||||||||||
| Interest and other, net | (4,172 | ) | - | (4,172 | ) | (2,427 | ) | (1,120 | ) | h | (3,547 | ) | ||||||||||||||||
| Income before income taxes and loss in equity interests | 18,615 | 23,641 | 42,256 | 51,743 | 11,549 | 63,292 | ||||||||||||||||||||||
| (Benefit from) provision for income taxes | (39,122 | ) | 52,993 | i,j | 13,871 | 16,132 | 4,029 | j | 20,161 | |||||||||||||||||||
| Loss in equity interests, net | (726 | ) | - | (726 | ) | (996 | ) | - | (996 | ) | ||||||||||||||||||
| Income from continuing operations | 57,011 | (29,352 | ) | 27,659 | 34,615 | 7,520 | 42,135 | |||||||||||||||||||||
| Loss from discontinued operations | (242,706 | ) | 242,706 | k | - | 8,276 | (8,276 | ) | k | - | ||||||||||||||||||
| Net (loss) income | $ | (185,695 | ) | $ | 213,354 | $ | 27,659 | $ | 42,891 | $ | (756 | ) | $ | 42,135 | ||||||||||||||
| Diluted (loss) earnings per share:* | ||||||||||||||||||||||||||||
| Income from continuing operations | $ | 0.50 | $ | (0.26 | ) | $ | 0.24 | $ | 0.27 | $ | 0.06 | $ | 0.34 | |||||||||||||||
| (Loss) income from discontinued operations, net of tax | (2.14 | ) | 2.14 | - | 0.07 | (0.07 | ) | - | ||||||||||||||||||||
| Diluted (loss) earnings per share | $ | (1.64 | ) | $ | 1.88 | $ | 0.24 | $ | 0.34 | $ | (0.01 | ) | $ | 0.34 | ||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||||||
| Basic | 113,460 | 113,460 | 113,460 | 122,212 | 122,212 | 122,212 | ||||||||||||||||||||||
| Diluted | 114,622 | 114,622 | 114,622 | 124,338 | 124,338 | 124,338 | ||||||||||||||||||||||
| Note Regarding ProForma Adjustments: |
| The financial information included herein contains certain non-GAAP financial measures. This information is not intended to be used in place of the financial information prepared and presented in accordance with GAAP, nor is it intended to be considered in isolation. We believe that the above presentation of non-GAAP measures provide useful information to management and investors regarding certain core operating and business trends relating to our results of operations, exclusive of certain restructuring related and other special charges. |
| ProForma adjustments consist of the following: |
| a Deferred revenue fair value adjustment required under existing purchase accounting rules relating to the acquisition of the HotJobs Assets in Q3 2010. |
| b Severance charges primarily related to the reorganization of the product & technology groups on a global basis. |
| c Acquisition and integration related costs associated with the acquisition of the HotJobs Assets. |
|
d Charges related to changes in sublet assumptions on previously exited facilities. |
| e Restructuring related charges pertaining to the strategic actions that the Company announced in January 2012 and charges related to the Company no longer engaging in the arbitrage lead generation business in 2011. These charges include costs related to the reduction in the Company’s workforce, fixed asset write-offs, costs relating to the consolidation of certain office facilities, and professional fees. |
| f Restitution award paid by a former executive to the United States government in connection with the Company's historical stock option practices. |
| g Costs directly associated with our previously announced review of strategic alternatives. |
| h Net realized gains on available for sale securities. |
| i Non-GAAP income tax adjustment includes the reversal of income tax reserves on uncertain tax positions during the quarter and a non-recurring tax benefit related to certain losses arising from the Company's restructuring program. |
| j Income tax adjustment is calculated using the effective tax rate of the reported period multiplied by the ProForma adjustment to income (loss) before income taxes and loss in equity interests. |
| k Represents the results of discontinued operations related to our decision to sell our Careers-China business. The sale is expected to be completed during the next 12 months. |
| *Earnings per share may not add in certain periods due to rounding. |
| MONSTER WORLDWIDE, INC. | ||||||||||||||||||||
| UNAUDITED NON-GAAP OPERATING SEGMENT INFORMATION | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Three Months Ended September 30, 2012 |
Careers - |
Careers - |
Internet |
Corporate |
Total | |||||||||||||||
| Revenue - GAAP | $ | 115,455 | $ | 87,451 | $ | 18,804 | $ | 221,710 | ||||||||||||
| Non GAAP Adjustments | - | - | - | - | ||||||||||||||||
| Revenue - Non GAAP | $ | 115,455 | $ | 87,451 | $ | 18,804 | $ | 221,710 | ||||||||||||
| Operating income (loss) - GAAP | $ | 17,169 | $ | 4,124 | $ | 4,990 | $ | (11,655 | ) | $ | 14,628 | |||||||||
| Non GAAP Adjustments | (116 | ) | 570 | 9 | 1,265 | 1,728 | ||||||||||||||
| Operating income (loss) - Non GAAP | $ | 17,053 | $ | 4,694 | $ | 4,999 | $ | (10,390 | ) | $ | 16,356 | |||||||||
| OIBDA - GAAP | $ | 26,887 | $ | 10,552 | $ | 6,990 | $ | (7,949 | ) | $ | 36,480 | |||||||||
| Non GAAP Adjustments | (116 | ) | 570 | 9 | 1,265 | 1,728 | ||||||||||||||
| OIBDA - Non GAAP | $ | 26,771 | $ | 11,122 | $ | 6,999 | $ | (6,684 | ) | $ | 38,208 | |||||||||
| Operating margin - GAAP | 14.9 | % | 4.7 | % | 26.5 | % | 6.6 | % | ||||||||||||
| Operating margin - Non GAAP | 14.8 | % | 5.4 | % | 26.6 | % | 7.4 | % | ||||||||||||
| OIBDA margin - GAAP | 23.3 | % | 12.1 | % | 37.2 | % | 16.5 | % | ||||||||||||
| OIBDA margin - Non GAAP | 23.2 | % | 12.7 | % | 37.2 | % | 17.2 | % | ||||||||||||
| Three Months Ended September 30, 2011 |
Careers - |
Careers - |
Internet |
Corporate |
Total | |||||||||||||||
| Revenue | $ | 123,160 | $ | 103,623 | $ | 21,797 | $ | 248,580 | ||||||||||||
| Non GAAP Adjustments | - | - | - | - | ||||||||||||||||
| Revenue - Non GAAP | $ | 123,160 | $ | 103,623 | $ | 21,797 | $ | 248,580 | ||||||||||||
| Operating income (loss) - GAAP | $ | 21,434 | $ | 15,825 | $ | 395 | $ | (8,503 | ) | $ | 29,151 | |||||||||
| Non GAAP Adjustments | - | 323 | 1,681 | - | 2,004 | |||||||||||||||
| Operating income (loss) - Non GAAP | $ | 21,434 | $ | 16,148 | $ | 2,076 | $ | (8,503 | ) | $ | 31,155 | |||||||||
| OIBDA - GAAP | $ | 33,589 | $ | 24,374 | $ | 3,737 | $ | (6,408 | ) | $ | 55,292 | |||||||||
| Non GAAP Adjustments | - | 323 | 1,681 | - | 2,004 | |||||||||||||||
| OIBDA - Non GAAP | $ | 33,589 | $ | 24,697 | $ | 5,418 | $ | (6,408 | ) | $ | 57,296 | |||||||||
| Operating margin - GAAP | 17.4 | % | 15.3 | % | 1.8 | % | 11.7 | % | ||||||||||||
| Operating margin - Non GAAP | 17.4 | % | 15.6 | % | 9.5 | % | 12.5 | % | ||||||||||||
| OIBDA margin - GAAP | 27.3 | % | 23.5 | % | 17.1 | % | 22.2 | % | ||||||||||||
| OIBDA margin - Non GAAP | 27.3 | % | 23.8 | % | 24.9 | % | 23.0 | % | ||||||||||||
| Nine Months Ended September 30, 2012 |
Careers - |
Careers - |
Internet |
Corporate |
Total | |||||||||||||||
| Revenue - GAAP | $ | 351,418 | $ | 272,825 | $ | 57,728 | $ | 681,971 | ||||||||||||
| Non GAAP Adjustments | - | - | - | - | ||||||||||||||||
| Revenue - Non GAAP | $ | 351,418 | $ | 272,825 | $ | 57,728 | $ | 681,971 | ||||||||||||
| Operating income (loss) - GAAP | $ | 35,279 | $ | 6,407 | $ | 13,565 | $ | (32,464 | ) | $ | 22,787 | |||||||||
| Non GAAP Adjustments | 14,213 | 9,433 | 1,166 | (1,171 | ) | 23,641 | ||||||||||||||
| Operating income (loss) - Non GAAP | $ | 49,492 | $ | 15,840 | $ | 14,731 | $ | (33,635 | ) | $ | 46,428 | |||||||||
| OIBDA - GAAP | $ | 71,071 | $ | 28,149 | $ | 20,532 | $ | (21,180 | ) | $ | 98,572 | |||||||||
| Non GAAP Adjustments | 8,965 | 8,898 | 543 | (1,184 | ) | 17,222 | ||||||||||||||
| OIBDA - Non GAAP | $ | 80,036 | $ | 37,047 | $ | 21,075 | $ | (22,364 | ) | $ | 115,794 | |||||||||
| Operating margin - GAAP | 10.0 | % | 2.3 | % | 23.5 | % | 3.3 | % | ||||||||||||
| Operating margin - Non GAAP | 14.1 | % | 5.8 | % | 25.5 | % | 6.8 | % | ||||||||||||
| OIBDA margin - GAAP | 20.2 | % | 10.3 | % | 35.6 | % | 14.5 | % | ||||||||||||
| OIBDA margin - Non GAAP | 22.8 | % | 13.6 | % | 36.5 | % | 17.0 | % | ||||||||||||
| Nine Months Ended September 30, 2011 |
Careers - |
Careers - |
Internet |
Corporate |
Total | |||||||||||||||
| Revenue | $ | 366,757 | $ | 305,918 | $ | 88,566 | $ | 761,241 | ||||||||||||
| Non GAAP Adjustments | 2,658 | - | - | 2,658 | ||||||||||||||||
| Revenue - Non GAAP | $ | 369,415 | $ | 305,918 | $ | 88,566 | $ | 763,899 | ||||||||||||
| Operating income (loss) - GAAP | $ | 54,425 | $ | 38,082 | $ | 3,760 | $ | (42,097 | ) | $ | 54,170 | |||||||||
| Non GAAP Adjustments | 2,885 | 605 | 1,702 | 7,477 | 12,669 | |||||||||||||||
| Operating income (loss) - Non GAAP | $ | 57,310 | $ | 38,687 | $ | 5,462 | $ | (34,620 | ) | $ | 66,839 | |||||||||
| OIBDA - GAAP | $ | 92,460 | $ | 66,119 | $ | 14,643 | $ | (33,126 | ) | $ | 140,096 | |||||||||
| Non GAAP Adjustments | 2,885 | 605 | 1,702 | 7,477 | 12,669 | |||||||||||||||
| OIBDA - Non GAAP | $ | 95,345 | $ | 66,724 | $ | 16,345 | $ | (25,649 | ) | $ | 152,765 | |||||||||
| Operating margin - GAAP | 14.8 | % | 12.4 | % | 4.2 | % | 7.1 | % | ||||||||||||
| Operating margin - Non GAAP | 15.5 | % | 12.6 | % | 6.2 | % | 8.7 | % | ||||||||||||
| OIBDA margin - GAAP | 25.2 | % | 21.6 | % | 16.5 | % | 18.4 | % | ||||||||||||
| OIBDA margin - Non GAAP | 25.8 | % | 21.8 | % | 18.5 | % | 20.0 | % | ||||||||||||