NEW YORK--(BUSINESS WIRE)--Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the fourth quarter and twelve months ended December 31, 2012.
Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide, said, “During the fourth quarter, we implemented a series of actions designed to improve profitability and cash flow, consistent with our previously announced restructuring. As a leaner, more focused company, we are concentrating our resources on our core markets and are aggressively taking the steps necessary to strengthen our business. Our advanced product offerings, robust government business and a leading traffic position provide a solid foundation for future growth as the global economy recovers.”
“On the strategic alternatives front, the process continues and we will respond quickly if an opportunity arises. We are not able to anticipate when or whether our Board will have a concrete transaction to consider and we will only comment further if and when this occurs,” Iannuzzi concluded.
Full Year 2012 Business Highlights
- Monster provides services to more than 300,000 customers globally, including 95% of the Fortune 1000.
- According to comScore Media Metrix, Monster enjoyed the leading U.S. traffic position in the Career Services & Development category throughout the majority of 2012 and ended the year with over 21 million monthly Unique Visitors.
- Monster’s Government Solutions business, which accounts for more than 10% of total bookings, increased approximately 40% year over year, including the Company’s multi-year contract with the United Kingdom Government’s Department for Work and Pensions (DWP).
- SeeMore® - the world’s first cloud-based semantic search and analytics recruiting platform – was named one of the top products of 2012 by Human Resource Executive® magazine. The award was announced at the 15th annual HR Technology® Conference in Chicago on October 8, 2012.
- On a global basis, business derived from the Company’s advanced and proprietary product offerings, including Career Ad Network®, Power Resume Search® and SeeMore® increased in the double-digit percentage range compared to the same period a year ago.
Corporate Restructuring Update
The Company is implementing its previously announced corporate restructuring program to focus on its core business and reduce its cost structure in order to improve profitability and cash flow. Since the announcement of the restructuring on November 8, 2012, the Company has implemented the following actions:
- Completed the sale of ChinaHR to Saongroup, under which Monster has taken a 10% minority stake in the combined China business of Saongroup.
- Exited operations in Brazil, Mexico and Turkey and classified these businesses as discontinued operations in the fourth quarter and full year results.
- Redeployed expenses into marketing and sales in Monster’s core markets, while reducing the run rate of operating expenses.
As a result of the actions described above, Monster is on track to reduce operating expenses by approximately $130 million on an annualized basis. In association with these actions, the Company recorded pre-tax charges of $23 million, of which $15 million was included in continuing operations and $8 million was included in discontinued operations in the fourth quarter 2012. The Company expects additional pre-tax charges in the range of $27 million to $37 million to be incurred in the first half 2013.
Fourth Quarter 2012 Results
Total bookings from continuing operations were $261 million, compared to $300 million in the same period a year ago. On a year over year basis, currency translation had a $0.8 million negative impact on bookings in the fourth quarter 2012. The year over year decline in total bookings is primarily attributable to continued weakness in Europe, which has been negatively impacted by global economic challenges, partially offset by strength in North America’s e-commerce, staffing and newspaper channels. Revenue from continuing operations was $211 million, compared to fourth quarter 2011 revenue of $235 million. On a year over year basis, currency translation had a $1.3 million negative impact on revenue in the fourth 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 $212 million compares to $208 million in the fourth quarter 2011. Net loss from continuing operations for the fourth quarter was $5.3 million, or a loss per share of $0.05. In the fourth quarter 2011, the Company reported net income from continuing operations of $20 million, or $0.16 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 $8.7 million, or $0.08 per share, compares to $22 million, or $0.18 per share in the fourth quarter 2011. Non-GAAP operating expenses of $196 million decreased 4% year over year.
The consolidated loss for the fourth quarter 2012 was $73 million or a loss per share of $0.66 per share compared to consolidated net income of $11 million or earnings per share of $0.09 for the same period a year ago. The consolidated loss for the fourth quarter 2012 includes a loss from discontinued operations, net of tax, of $68 million, or a loss per share of $0.61, of which $53 million is non-cash asset write-offs.
Cash and cash equivalents were $148 million as of December 31, 2012 compared to $250 million as of December 31, 2011. Net operating cash flow in the quarter was $17 million. Excluding results from ChinaHR, Brazil, Mexico and Turkey, deferred revenue was $351 million compared to $358 million in the same period a year ago.
Full Year Results
Monster Worldwide reported total revenue from continuing operations of $890 million for the twelve months ended December 31, 2012 compared to $994 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 $58 million, or $0.51 per diluted share, compared to GAAP earnings of $66 million, or $0.53 per diluted share, in the prior period.
The consolidated loss for the year ended December 31, 2012 was $259 million or $2.27 per share compared to consolidated net income of $54 million or $0.43 per share for the same period in 2011. The consolidated loss for 2012 includes a loss from discontinued operations, net of tax, of $317 million, of which $279 million is non-cash asset write-offs.
Company Provides Q1 EPS Guidance
First quarter 2013 EPS from continuing operations is expected to be in the range of $0.06 to $0.10.
Conference Call and Webcast
Fourth quarter 2012 results will be discussed on Monster Worldwide’s quarterly conference call on February 7, 2013 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 91616837.
A presentation of financial slides will be referenced during the conference call and will be viewable through the live webcast. A PDF of the financial presentation can also be accessed directly through the Company’s Investor Relations website at http://ir.monster.com.
The Company has also made available certain supplemental financial information which can be accessed directly through the Company’s Investor Relations website at http://ir.monster.com.
For a replay of the conference call, please dial (855) 859-2056 or (404) 537-3406 and reference ID#91616837. This number is valid until midnight on February 21, 2013.
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 more than 40 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 first fiscal quarter 2013. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, economic and other conditions in the markets in which we operate, risks associated with acquisitions or dispositions, competition, and the other risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated into this release by reference. Many of the factors that will determine the Company’s future results are beyond the ability of management to control or predict. Readers should not place undue reliance on the forward-looking statements in this release as they reflect management’s views only as of the date hereof. The Company undertakes no obligation to revise or update any of the forward-looking statements contained in this release or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Notes Regarding the Use of Non-GAAP Financial Measures
The Company has provided certain non-GAAP financial information as additional information for its operating results. These measures are not in accordance with, or an alternative for, generally accepted accounting principles (“GAAP”) and may be different from non-GAAP measures reported by other companies. The Company believes that its presentation of non-GAAP measures provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations.
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 restructurings; recovery of restitution award from former executive; costs incurred related to the Company’s review of strategic alternatives; income tax benefits associated with the reversal of income tax reserves on uncertain tax positions and a tax benefit related to certain losses arising from the Company’s restructuring program; the results of the businesses in Careers – China, Latin America and Turkey as they have been classified as discontinued operations; 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 in 2011 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 December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Revenue | $ | 211,244 | $ | 234,786 | $ | 890,392 | $ | 993,644 | ||||||||
| Salaries and related | 97,401 | 108,381 | 408,305 | 480,398 | ||||||||||||
| Office and general | 55,497 | 52,763 | 226,601 | 224,914 | ||||||||||||
| Marketing and promotion | 44,503 | 43,522 | 188,326 | 189,850 | ||||||||||||
| Restructuring and other special charges | 14,831 | 3,035 | 40,358 | 4,715 | ||||||||||||
| Recovery of restitution award from former executive | - | - | (5,350 | ) | - | |||||||||||
| Total operating expenses | 212,232 | 207,701 | 858,240 | 899,877 | ||||||||||||
| Operating (loss) income | (988 | ) | 27,085 | 32,152 | 93,767 | |||||||||||
| Interest and other, net | (1,699 | ) | (560 | ) | (5,883 | ) | (2,971 | ) | ||||||||
| (Loss) income from continuing operations before income taxes and equity interests | (2,687 | ) | 26,525 | 26,269 | 90,796 | |||||||||||
| Provision for (benefit from) income taxes | 2,267 | 6,248 | (32,978 | ) | 23,504 | |||||||||||
| Loss in equity interests, net | (355 | ) | (246 | ) | (1,081 | ) | (1,242 | ) | ||||||||
| (Loss) income from continuing operations | (5,309 | ) | 20,031 | 58,166 | 66,050 | |||||||||||
| Loss from discontinued operations, net of tax | (67,716 | ) | (9,125 | ) | (316,886 | ) | (12,253 | ) | ||||||||
| Net (loss) income | $ | (73,025 | ) | $ | 10,906 | $ | (258,720 | ) | $ | 53,797 | ||||||
| *Basic (loss) earnings per share: | ||||||||||||||||
| (Loss) income from continuing operations | $ | (0.05 | ) | $ | 0.17 | $ | 0.52 | $ | 0.54 | |||||||
| Loss from discontinued operations, net of tax | (0.61 | ) | (0.08 | ) | (2.81 | ) | (0.10 | ) | ||||||||
| Basic (loss) income per share | $ | (0.66 | ) | $ | 0.09 | $ | (2.29 | ) | $ | 0.44 | ||||||
| *Diluted (loss) earnings per share: | ||||||||||||||||
| (Loss) income from continuing operations | $ | (0.05 | ) | $ | 0.16 | $ | 0.51 | $ | 0.53 | |||||||
| Loss from discontinued operations, net of tax | (0.61 | ) | (0.07 | ) | (2.78 | ) | (0.10 | ) | ||||||||
| Diluted (loss) income per share | $ | (0.66 | ) | $ | 0.09 | $ | (2.27 | ) | $ | 0.43 | ||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 111,098 | 121,378 | 112,866 | 122,002 | ||||||||||||
| Diluted | 111,098 | 122,685 | 113,995 | 123,923 | ||||||||||||
| Operating income before depreciation, amortization, and non-cash restructuring: | ||||||||||||||||
| Operating (loss) income | $ | (988 | ) | $ | 27,085 | $ | 32,152 | $ | 93,767 | |||||||
| Depreciation and amortization of intangibles | 16,386 | 16,740 | 64,280 | 68,666 | ||||||||||||
| Amortization of stock-based compensation | 6,985 | 7,895 | 28,174 | 41,458 | ||||||||||||
| Restructuring non-cash expenses | 1,125 | 130 | 7,541 | 106 | ||||||||||||
| Operating income before depreciation, amortization, and non-cash restructuring | $ | 23,508 | $ | 51,850 | $ | 132,147 | $ | 203,997 | ||||||||
|
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*Earnings per share may not add in certain periods due to rounding. |
| MONSTER WORLDWIDE, INC. | ||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (in thousands) | ||||||||
| Twelve Months Ended | ||||||||
| 2012 | 2011 | |||||||
| Cash flows provided by operating activities: | ||||||||
| Net (loss) income | $ | (258,720 | ) | $ | 53,797 | |||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 70,000 | 74,600 | ||||||
| Provision for doubtful accounts | 4,469 | 3,329 | ||||||
| Non-cash compensation | 28,964 | 42,523 | ||||||
| Deferred income taxes | (9,814 | ) | (5,659 | ) | ||||
| Non-cash restructuring write-offs and other | 7,505 | 130 | ||||||
| Loss in equity interests, net | 1,081 | 1,242 | ||||||
| Gains on auction rate securities | - | (1,732 | ) | |||||
| Tax benefit from change in uncertain tax positions | (43,193 | ) | - | |||||
| Impairment of goodwill and intangibles | 267,855 | - | ||||||
| Changes in assets and liabilities, net of acquisitions: | ||||||||
| Accounts receivable | (2,013 | ) | (856 | ) | ||||
| Prepaid and other | 13,332 | (5,510 | ) | |||||
| Deferred revenue | (17,456 | ) | 5,056 | |||||
| Accounts payable, accrued liabilities and other | (8,683 | ) | (17,243 | ) | ||||
| Total adjustments | 312,047 | 95,880 | ||||||
| Net cash provided by operating activities | 53,327 | 149,677 | ||||||
| Cash flows used for investing activities: | ||||||||
| Capital expenditures | (59,572 | ) | (61,818 | ) | ||||
| 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 | (60,921 | ) | (62,202 | ) | ||||
| Cash flows (used for) provided by financing activities: | ||||||||
| Proceeds from borrowings on credit facilities | 224,718 | 108,722 | ||||||
| Payments on borrowings on credit facilities | (305,709 | ) | (44,501 | ) | ||||
| Proceeds from borrowings on term loan | 100,000 | - | ||||||
| Payments on borrowings on term loan | (43,750 | ) | - | |||||
| Repurchase of common stock | (65,611 | ) | (41,973 | ) | ||||
| Tax withholdings related to net share settlements of restricted stock awards and units | (8,482 | ) | (17,139 | ) | ||||
| Proceeds from the exercise of employee stock options | 23 | 23 | ||||||
| Net cash (used for) provided by financing activities | (98,811 | ) | 5,132 | |||||
| Effects of exchange rates on cash | 4,273 | (5,459 | ) | |||||
| Net (decrease) increase in cash and cash equivalents | (102,132 | ) | 87,148 | |||||
| Cash and cash equivalents, beginning of period | 250,317 | 163,169 | ||||||
| Cash and cash equivalents, end of period | $ | 148,185 | $ | 250,317 | ||||
| Free cash flow: | ||||||||
| Net cash provided by operating activities | $ | 53,327 | $ | 149,677 | ||||
| Less: Capital expenditures | (59,572 | ) | (61,818 | ) | ||||
| Free cash flow | $ | (6,245 | ) | $ | 87,859 | |||
| MONSTER WORLDWIDE, INC. | ||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (in thousands) | ||||||
| Assets: | December 31, 2012 | December 31, 2011 | ||||
| Cash and cash equivalents | $ | 148,185 | $ | 250,317 | ||
| Accounts receivable, net | 335,905 | 343,546 | ||||
| Property and equipment, net | 147,613 | 156,282 | ||||
| Goodwill and intangibles, net | 919,854 | 1,184,122 | ||||
| Other assets | 111,606 | 123,731 | ||||
| Current assets of discontinued operations | 21,702 | - | ||||
| Total Assets | $ | 1,684,865 | $ | 2,057,998 | ||
| Liabilities and Stockholders' Equity: | ||||||
| Accounts payable, accrued expenses and other current liabilities | $ | 181,914 | $ | 213,817 | ||
| Deferred revenue | 351,546 | 380,310 | ||||
| Current portion of long-term debt and borrowings on credit facility | 18,264 | 188,836 | ||||
| Long-term income taxes payable | 63,465 | 94,750 | ||||
| Long-term debt, less current portion | 145,975 | - | ||||
| Other long-term liabilities | 10,406 | 16,158 | ||||
| Current liabilities of discontinued operations | 33,256 | - | ||||
| Total Liabilities | $ | 804,826 | $ | 893,871 | ||
| Stockholders' Equity | 880,039 | 1,164,127 | ||||
| Total Liabilities and Stockholders' Equity | $ | 1,684,865 | $ | 2,057,998 | ||
|
MONSTER WORLDWIDE, INC. |
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UNAUDITED NON-GAAP STATEMENTS OF OPERATIONS AND RECONCILIATIONS |
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(in thousands, except per share amounts) |
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| Three Months Ended December 31, 2012 | Three Months Ended December 31, 2011 | |||||||||||||||||||||||
| Non GAAP | Consolidated | Non GAAP | Consolidated | |||||||||||||||||||||
| As Reported |
Adjustments |
Non GAAP | As Reported | Adjustments | Non GAAP | |||||||||||||||||||
| Revenue | $ | 211,244 | $ | - | $ | 211,244 | $ | 234,786 | $ | - | $ | 234,786 | ||||||||||||
| Salaries and related | 97,401 | - | 97,401 | 108,381 | - | 108,381 | ||||||||||||||||||
| Office and general | 55,497 | (1,347 | ) | g | 54,150 | 52,763 | - | 52,763 | ||||||||||||||||
| Marketing and promotion | 44,503 | - | 44,503 | 43,522 | - | 43,522 | ||||||||||||||||||
| Restructuring and other special charges | 14,831 | (14,831 | ) | e | - | 3,035 | (3,035 | ) | e | - | ||||||||||||||
| Total operating expenses | 212,232 | (16,178 | ) | 196,054 | 207,701 | (3,035 | ) | 204,666 | ||||||||||||||||
| Operating (loss) income | (988 | ) | 16,178 | 15,190 | 27,085 | 3,035 | 30,120 | |||||||||||||||||
| Operating margin | -0.5 | % | 7.2 | % | 11.5 | % | 12.8 | % | ||||||||||||||||
| Interest and other, net | (1,699 | ) | - | (1,699 | ) | (560 | ) | - | (560 | ) | ||||||||||||||
| (Loss) income from continuing operations before income taxes and equity interests | (2,687 | ) | 16,178 | 13,491 | 26,525 | 3,035 | 29,560 | |||||||||||||||||
| Provision for income taxes | 2,267 | 2,173 | i,j | 4,440 | 6,248 | 715 | j | 6,963 | ||||||||||||||||
| Loss in equity interests, net | (355 | ) | - | (355 | ) | (246 | ) | - | (246 | ) | ||||||||||||||
| (Loss) income from continuing operations | (5,309 | ) | 14,005 | 8,696 | 20,031 | 2,320 | 22,351 | |||||||||||||||||
| (Loss) income from discontinued operations | (67,716 | ) | 67,716 | k | - | (9,125 | ) | 9,125 | k | - | ||||||||||||||
| Net (loss) income | $ | (73,025 | ) | $ | 81,721 | $ | 8,696 | $ | 10,906 | $ | 11,445 | $ | 22,351 | |||||||||||
| Diluted (loss) earnings per share:* | ||||||||||||||||||||||||
| (Loss) income from continuing operations | $ | (0.05 | ) | $ | 0.12 | $ | 0.08 | $ | 0.16 | $ | 0.02 | $ | 0.18 | |||||||||||
| (Loss) income from discontinued operations, net of tax | (0.61 | ) | 0.61 | - | (0.07 | ) | 0.07 | - | ||||||||||||||||
| Diluted (loss) income per share | $ | (0.66 | ) | $ | 0.73 | $ | 0.08 | $ | 0.09 | $ | 0.09 | $ | 0.18 | |||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||
| Basic | 111,098 | 111,098 | 111,098 | 121,378 | 121,378 | 121,378 | ||||||||||||||||||
| Diluted | 111,098 | 112,129 | 112,129 | 122,685 | 122,685 | 122,685 | ||||||||||||||||||
| Twelve Months Ended December 31, 2012 | Twelve Months Ended December 31, 2011 | |||||||||||||||||||||||
| Non GAAP | Consolidated | Non GAAP | Consolidated | |||||||||||||||||||||
| As Reported | Adjustments | Non GAAP | As Reported | Adjustments | Non GAAP | |||||||||||||||||||
| Revenue | $ | 890,392 | $ | - | $ | 890,392 | $ | 993,644 | 2,658 | a | $ | 996,302 | ||||||||||||
| Salaries and related | 408,305 | - | 408,305 | 480,398 | (1,170 | ) | b,c | 479,228 | ||||||||||||||||
| Office and general | 226,601 | (4,659 | ) | g | 221,942 | 224,914 | (6,829 | ) | c,d | 218,085 | ||||||||||||||
| Marketing and promotion | 188,326 | - | 188,326 | 189,850 | - | 189,850 | ||||||||||||||||||
| Restructuring and other special charges | 40,358 | (40,358 | ) | e | - | 4,715 | (4,715 | ) | e | - | ||||||||||||||
| Recovery of restitution award from former executive | (5,350 | ) | 5,350 | f | - | - | - | - | ||||||||||||||||
| Total operating expenses | 858,240 | (39,667 | ) | 818,573 | 899,877 | (12,714 | ) | 887,163 | ||||||||||||||||
| Operating income | 32,152 | 39,667 | 71,819 | 93,767 | 15,372 | 109,139 | ||||||||||||||||||
| Operating margin | 3.6 | % | 8.1 | % | 9.4 | % | 11.0 | % | ||||||||||||||||
| Interest and other, net | (5,883 | ) | - | (5,883 | ) | (2,971 | ) | (1,120 | ) | h | (4,091 | ) | ||||||||||||
| Income from continuing operations before income taxes and equity interests | 26,269 | 39,667 | 65,936 | 90,796 | 14,252 | 105,048 | ||||||||||||||||||
| (Benefit from) provision for income taxes | (32,978 | ) | 55,075 | i,j | 22,097 | 23,504 | 4,041 | j | 27,545 | |||||||||||||||
| Loss in equity interests, net | (1,081 | ) | - | (1,081 | ) | (1,242 | ) | - | (1,242 | ) | ||||||||||||||
| Income (loss) from continuing operations | 58,166 | (15,408 | ) | 42,758 | 66,050 | 10,211 | 76,261 | |||||||||||||||||
| (Loss) income from discontinued operations | (316,886 | ) | 316,886 | k | - | (12,253 | ) | 12,253 | k | - | ||||||||||||||
| Net (loss) income | $ | (258,720 | ) | $ | 301,478 | $ | 42,758 | $ | 53,797 | $ | 22,464 | $ | 76,261 | |||||||||||
| Diluted (loss) earnings per share:* | ||||||||||||||||||||||||
| Income (loss) from continuing operations | $ | 0.51 | $ | (0.14 | ) | $ | 0.38 | $ | 0.53 | $ | 0.08 | $ | 0.62 | |||||||||||
| (Loss) income from discontinued operations, net of tax | (2.78 | ) | 2.78 | - | (0.10 | ) | 0.10 | - | ||||||||||||||||
| Diluted (loss) income per share | $ | (2.27 | ) | $ | 2.64 | $ | 0.38 | $ | 0.43 | $ | 0.18 | $ | 0.62 | |||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||
| Basic | 112,866 | 112,866 | 112,866 | 122,002 | 122,002 | 122,002 | ||||||||||||||||||
| Diluted | 113,995 | 113,995 | 113,995 | 123,923 | 123,923 | 123,923 | ||||||||||||||||||
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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. |
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| 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. | ||
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d |
Charges related to changes in sublet assumptions on previously exited facilities. | ||
| e | Restructuring related charges pertaining to the actions that the Company announced in January and November 2012 as well as 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, the tax effects of an investment writeoff, certain tax evaluation adjustments, and restructuring related items during the year. | ||
| 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 and for the effects for certain tax evaluation adjustments | ||
| k | Represents the results of discontinued operations related to our decision to sell our Careers-China business. The sale closed in February 2013. Additionally, we have decided to cease operations in Latin America and Turkey during the quarter. | ||
| l | Excluding the effect of the arbitrage lead generation business which contributed $22,239 of revenue in the first half of 2011, Non-GAAP revenue for the twelve months ended 2011 was $971,406. | ||
| *Earnings per share may not add in certain periods due to rounding. | |||
| MONSTER WORLDWIDE, INC. | ||||||||||||||||||||
| UNAUDITED NON-GAAP OPERATING SEGMENT INFORMATION | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Internet | ||||||||||||||||||||
| Careers - | Careers - | Advertising & | Corporate | |||||||||||||||||
| Three Months Ended December 31, 2012 | North America | International | Fees | Expenses | Total | |||||||||||||||
| Revenue - GAAP | $ | 111,544 | $ | 81,128 | $ | 18,572 | $ | 211,244 | ||||||||||||
| Non GAAP Adjustments | - | - | - | - | ||||||||||||||||
| Revenue - Non GAAP | $ | 111,544 | $ | 81,128 | $ | 18,572 | $ | 211,244 | ||||||||||||
| Operating income (loss) - GAAP | $ | 7,407 | $ | (3,684 | ) | $ | 4,156 | $ | (8,867 | ) | $ | (988 | ) | |||||||
| Non GAAP Adjustments | 6,756 | 6,998 | 958 | 1,466 | 16,178 | |||||||||||||||
| Operating income (loss) - Non GAAP | $ | 14,163 | $ | 3,314 | $ | 5,114 | $ | (7,401 | ) | $ | 15,190 | |||||||||
| OIBDA - GAAP | $ | 19,032 | $ | 4,392 | $ | 6,137 | $ | (6,053 | ) | $ | 23,508 | |||||||||
| Non GAAP Adjustments | 5,888 | 6,741 | 958 | 1,466 | 15,053 | |||||||||||||||
| OIBDA - Non GAAP | $ | 24,920 | $ | 11,133 | $ | 7,095 | $ | (4,587 | ) | $ | 38,561 | |||||||||
| Operating margin - GAAP | 6.6 | % | -4.5 | % | 22.4 | % | -0.5 | % | ||||||||||||
| Operating margin - Non GAAP | 12.7 | % | 4.1 | % | 27.5 | % | 7.2 | % | ||||||||||||
| OIBDA margin - GAAP | 17.1 | % | 5.4 | % | 33.0 | % | 11.1 | % | ||||||||||||
| OIBDA margin - Non GAAP | 22.3 | % | 13.7 | % | 38.2 | % | 18.3 | % | ||||||||||||
| Internet | ||||||||||||||||||||
| Careers - | Careers - | Advertising & | Corporate | |||||||||||||||||
| Three Months Ended December 31, 2011 | North America | International | Fees | Expenses | Total | |||||||||||||||
| Revenue | $ | 118,600 | $ | 94,872 | $ | 21,314 | $ | 234,786 | ||||||||||||
| Non GAAP Adjustments | - | - | - | - | ||||||||||||||||
| Revenue - Non GAAP | $ | 118,600 | $ | 94,872 | $ | 21,314 | $ | 234,786 | ||||||||||||
| Operating income (loss) - GAAP | $ | 20,206 | $ | 18,725 | $ | 1,454 | $ | (13,300 | ) | $ | 27,085 | |||||||||
| Non GAAP Adjustments | 450 | 161 | 2,424 | - | 3,035 | |||||||||||||||
| Operating income (loss) - Non GAAP | $ | 20,656 | $ | 18,886 | $ | 3,878 | $ | (13,300 | ) | $ | 30,120 | |||||||||
| OIBDA - GAAP | $ | 30,316 | $ | 26,101 | $ | 4,608 | $ | (9,175 | ) | $ | 51,850 | |||||||||
| Non GAAP Adjustments | 450 | 161 | 2,293 | - | 2,904 | |||||||||||||||
| OIBDA - Non GAAP | $ | 30,766 | $ | 26,262 | $ | 6,901 | $ | (9,175 | ) | $ | 54,754 | |||||||||
| Operating margin - GAAP | 17.0 | % | 19.7 | % | 6.8 | % | 11.5 | % | ||||||||||||
| Operating margin - Non GAAP | 17.4 | % | 19.9 | % | 18.2 | % | 12.8 | % | ||||||||||||
| OIBDA margin - GAAP | 25.6 | % | 27.5 | % | 21.6 | % | 22.1 | % | ||||||||||||
| OIBDA margin - Non GAAP | 25.9 | % | 27.7 | % | 32.4 | % | 23.3 | % | ||||||||||||
| Internet | ||||||||||||||||||||
| Careers - | Careers - | Advertising & | Corporate | |||||||||||||||||
| Twelve Months Ended December 31, 2012 | North America | International | Fees | Expenses | Total | |||||||||||||||
| Revenue - GAAP | $ | 462,962 | $ | 351,130 | $ | 76,300 | $ | 890,392 | ||||||||||||
| Non GAAP Adjustments | - | - | - | - | ||||||||||||||||
| Revenue - Non GAAP | $ | 462,962 | $ | 351,130 | $ | 76,300 | $ | 890,392 | ||||||||||||
| Operating income (loss) - GAAP | $ | 42,686 | $ | 13,076 | $ | 17,721 | $ | (41,331 | ) | $ | 32,152 | |||||||||
| Non GAAP Adjustments | 20,969 | 16,279 | 2,124 | 295 | 39,667 | |||||||||||||||
| Operating income (loss) - Non GAAP | $ | 63,655 | $ | 29,355 | $ | 19,845 | $ | (41,036 | ) | $ | 71,819 | |||||||||
| OIBDA - GAAP | $ | 90,103 | $ | 42,609 | $ | 26,669 | $ | (27,234 | ) | $ | 132,147 | |||||||||
| Non GAAP Adjustments | 14,853 | 15,489 | 1,501 | 283 | 32,126 | |||||||||||||||
| OIBDA - Non GAAP | $ | 104,956 | $ | 58,098 | $ | 28,170 | $ | (26,951 | ) | $ | 164,273 | |||||||||
| Operating margin - GAAP | 9.2 | % | 3.7 | % | 23.2 | % | 3.6 | % | ||||||||||||
| Operating margin - Non GAAP | 13.7 | % | 8.4 | % | 26.0 | % | 8.1 | % | ||||||||||||
| OIBDA margin - GAAP | 19.5 | % | 12.1 | % | 35.0 | % | 14.8 | % | ||||||||||||
| OIBDA margin - Non GAAP | 22.7 | % | 16.5 | % | 36.9 | % | 18.4 | % | ||||||||||||
| Internet | ||||||||||||||||||||
| Careers - | Careers - | Advertising & | Corporate | |||||||||||||||||
| Twelve Months Ended December 31, 2011 | North America | International | Fees | Expenses | Total | |||||||||||||||
| Revenue | $ | 485,356 | $ | 398,408 | $ | 109,880 | $ | 993,644 | ||||||||||||
| Non GAAP Adjustments | 2,658 | - | - | 2,658 | ||||||||||||||||
| Revenue - Non GAAP | $ | 488,014 | $ | 398,408 | $ | 109,880 | $ | 996,302 | ||||||||||||
| Operating income (loss) - GAAP | $ | 74,631 | $ | 69,319 | $ | 5,214 | $ | (55,397 | ) | $ | 93,767 | |||||||||
| Non GAAP Adjustments | 3,335 | 434 | 4,126 | 7,477 | 15,372 | |||||||||||||||
| Operating income (loss) - Non GAAP | $ | 77,966 | $ | 69,753 | $ | 9,340 | $ | (47,920 | ) | $ | 109,139 | |||||||||
| OIBDA - GAAP | $ | 122,776 | $ | 104,273 | $ | 19,250 | $ | (42,302 | ) | $ | 203,997 | |||||||||
| Non GAAP Adjustments | 3,335 | 456 | 3,997 | 7,477 | 15,265 | |||||||||||||||
| OIBDA - Non GAAP | $ | 126,111 | $ | 104,729 | $ | 23,247 | $ | (34,825 | ) | $ | 219,262 | |||||||||
| Operating margin - GAAP | 15.4 | % | 17.4 | % | 4.7 | % | 9.4 | % | ||||||||||||
| Operating margin - Non GAAP | 16.0 | % | 17.5 | % | 8.5 | % | 11.0 | % | ||||||||||||
| OIBDA margin - GAAP | 25.3 | % | 26.2 | % | 17.5 | % | 20.5 | % | ||||||||||||
| OIBDA margin - Non GAAP | 25.8 | % | 26.3 | % | 21.2 | % | 22.0 | % | ||||||||||||