Attached files
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8-K - FORM 8-K - MONSTER WORLDWIDE, INC. | c16133e8vk.htm |
EX-99.1 - EXHIBIT 99.1 - MONSTER WORLDWIDE, INC. | c16133exv99w1.htm |
Exhibit 99.2
FINANCIAL SUPPLEMENT
March 31, 2011
Monster Worldwide, Inc. (together with its consolidated subsidiaries, the Company, Monster,
we, our or us) provides this supplement to assist investors in evaluating the Companys
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.
Notes to Financial Supplement
Presentation
Acquisition of the HotJobs Assets from Yahoo! Inc.
On August 24, 2010, pursuant to an Asset Purchase Agreement dated as of February 3, 2010 (the
Asset Purchase Agreement) by and between Monster and Yahoo! Inc. (Yahoo!), Monster completed
the acquisition of substantially all of the assets exclusive to Yahoo! HotJobs (the HotJobs
Assets) from Yahoo! The purchase price for the HotJobs Assets was $225.0 million. We acquired the
HotJobs Assets, among other objectives, to expand our business in the North America online
recruitment market. The results of operations attributable to the HotJobs Assets have been included
in our consolidated financial statements since August 24, 2010.
In the three months ended March 31, 2011 and 2010, the Company incurred $4.6 million and $4.4
million, respectively, of acquisition and integration-related costs associated with the acquisition
of the HotJobs Assets, which were expensed as incurred and are included in office and general
expenses and salaries and related expenses in the consolidated statement of operations. These costs
primarily relate to professional fees and other integration costs associated with the acquisition.
We do not expect to continue to incur significant integration-related costs in future periods
relating to the acquisition of the HotJobs Assets.
Deferred Revenue Related to Acquisitions
During the third quarter of 2010, we completed the acquisition of the HotJobs Assets. In accordance
with existing purchase accounting rules, we are required to write-down to fair value a portion of
the deferred revenue attributable to the HotJobs Assets. Consequently, in post-acquisition
periods, we do not recognize the full amount of this deferred revenue. When measuring the
performance of our business, however, we add back the revenue resulting from this fair value
adjustment as we believe that the inclusion of this revenue provides useful information to our
management, as well as to investors. As of March 31, 2011 the fair value write-down has been
completed. For the three months ended March 31, 2011, the fair value adjustment to deferred
revenue was $2.7 million.
Severance Charges
For the three months ended March 31, 2011 and 2010, the Company incurred $0.4 million and $6.4
million, respectively, of severance costs relating to targeted global headcount reductions. These
global headcount reductions were introduced to reduce operating expenses and provide funding for
investments to further position the Company for sustainable long-term growth in the global online
recruitment and advertising industry.
Auction Rate Securities
In November 2009, the Company entered into a settlement agreement with RBC Capital Markets
Corporation (RBC) with respect to auction rate securities previously purchased from RBC. Pursuant
to the terms of the settlement agreement, RBC immediately repurchased the subject auction rate
securities from the Company at a certain discount to their par value. As part of the settlement
agreement, the Company will receive certain additional monies from RBC if, within a certain time
period of the date of the execution of the settlement agreement, any of the auction rate securities
still held by RBC are redeemed or refinanced by the issuer for sums higher than the amounts RBC
paid the Company to repurchase such auction rate securities. Additionally, the Company dismissed a
lawsuit it had filed against RBC in connection with, and released claims related to, RBCs sale of
the auction rate securities to the Company. In the quarter ended March 31, 2011, the Company
received $1.1 million from RBC relating to auction rate securities which were redeemed by the
issuer or sold by RBC for sums higher than the amounts RBC paid the Company to repurchase such
auction rate securities, which is
reflected in interest and other, net in the consolidated statements of operations for the quarter
ended March 31, 2011. In the quarter ended March 31, 2010, the Company received $0.2 million
relating to the redemption of separate auction rate bonds held by a broker.
2
Facility Charges
For the three months ended March 31, 2011, the Company incurred $3.0 million of charges related to
changes in sublet assumptions on previously exited facilities.
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, 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 (loss), operating margin, net income or loss
and diluted earnings (loss) per share all exclude certain pro forma adjustments including: reversal
of legal settlements, net; net costs associated with the Companys historical option grant
practices, severance and facility charges primarily related to the product and technology global
reorganization and changes in sublet assumptions on previously exited facilities; transaction costs
related to the acquisition of the HotJobs Assets; the fair value adjustment to deferred revenue in
connection with the acquisition of ChinaHR and the HotJobs Assets; realized and unrealized gains
and losses on marketable securities; and a net non-cash benefit relating to the reversal of an
income tax liability for uncertain tax positions. The Company uses these non-GAAP measures for
reviewing the ongoing results of the Companys core business operations and in certain instances,
for measuring performance under certain of the Companys 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 and non-cash compensation expense. 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
before depreciation, amortization of intangible assets, amortization of stock-based compensation
and non-cash costs incurred in connection with the Companys 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 Companys
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 Companys cash position for the period and should not be considered a substitute for
such a measure.
3
Net cash and securities are defined as cash and cash equivalents plus short-term and long-term
marketable securities, less total debt. Total available liquidity is defined as cash and cash
equivalents, plus short-term and long-term marketable securities, plus unused borrowings under our
credit facility. The Company considers net cash and securities and total available liquidity to be
important measures of liquidity and indicators of its ability to meet its ongoing obligations. The
Company also uses net cash and securities and total available liquidity, among other measures, in
evaluating its choices for capital deployment. Net cash and securities and total available
liquidity are presented herein as non-GAAP measures and may not be comparable to similarly titled
measures used by other companies.
Selected financial ratios
We have included selected financial ratios in this financial supplement in order to assist
investors to further evaluate our business. Our definitions and calculations are as follows:
Annualized return on equity
Annualized return on equity measures our effectiveness and ability to generate future profitability
on the earnings that we retain. In addition, the ratio is a strong indicator of how well we
utilize shareholders investments in our business. We calculate annualized return on equity as
follows:
Annualized net income / Average stockholders equity
Book value per share
Book value per share is a market value indicator that we utilize when analyzing our stockholders
equity. We calculate book value per share as follows:
Stockholders equity / Total shares outstanding
Cash and marketable securities per share
We calculate cash and marketable securities per share as follows:
(Cash and cash equivalents + Current marketable securities + Non-current marketable securities) /
Total shares outstanding
4
Monster Worldwide, Inc.
Consolidated Statements of Operations
(unaudited, in thousands, except per share amounts)
Consolidated Statements of Operations
(unaudited, in thousands, except per share amounts)
Trended Quarterly Data | ||||||||||||||||||||||||||||||||||||
Summary P&L Information | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | Q1 2011 | |||||||||||||||||||||||||||
Monster Careers |
$ | 222,849 | $ | 190,397 | $ | 179,941 | $ | 179,409 | $ | 182,582 | $ | 183,808 | $ | 193,912 | $ | 222,689 | $ | 228,292 | ||||||||||||||||||
Internet Advertising & Fees |
31,554 | 32,660 | 34,592 | 33,740 | 32,723 | 31,109 | 34,930 | 32,380 | 33,090 | |||||||||||||||||||||||||||
Revenue |
254,403 | 223,057 | 214,533 | 213,149 | 215,305 | 214,917 | 228,842 | 255,069 | 261,382 | |||||||||||||||||||||||||||
Salary and related |
112,037 | 103,564 | 102,752 | 105,475 | 118,183 | 104,089 | 105,764 | 115,564 | 122,481 | |||||||||||||||||||||||||||
Office and general |
45,793 | 42,917 | 42,422 | 31,623 | 45,544 | 41,214 | 46,790 | 42,153 | 48,169 | |||||||||||||||||||||||||||
Marketing and promotion |
73,691 | 44,953 | 45,757 | 45,260 | 59,581 | 46,925 | 51,661 | 64,399 | 57,698 | |||||||||||||||||||||||||||
Reversal of legal settlements, net |
| | (6,850 | ) | | | | | | | ||||||||||||||||||||||||||
Restructuring and other special charges |
11,008 | 5,097 | | | | | | | | |||||||||||||||||||||||||||
Depreciation expense |
13,769 | 14,479 | 15,230 | 15,639 | 14,521 | 13,782 | 13,975 | 14,204 | 14,373 | |||||||||||||||||||||||||||
Amortization of restricted stock and RSU Plan |
10,149 | 9,816 | 9,924 | 9,417 | 10,124 | 10,744 | 13,398 | 12,380 | 13,028 | |||||||||||||||||||||||||||
Non-cash stock option expense |
199 | 104 | 157 | 155 | 143 | 133 | 135 | 134 | 152 | |||||||||||||||||||||||||||
Amortization of intangibles |
2,551 | 2,466 | 2,189 | 2,210 | 2,083 | 1,910 | 2,507 | 4,114 | 4,028 | |||||||||||||||||||||||||||
Operating expenses |
269,197 | 223,396 | 211,581 | 209,779 | 250,179 | 218,797 | 234,230 | 252,948 | 259,929 | |||||||||||||||||||||||||||
Operating (loss) income |
(14,794 | ) | (339 | ) | 2,952 | 3,370 | (34,874 | ) | (3,880 | ) | (5,388 | ) | 2,121 | 1,453 | ||||||||||||||||||||||
Interest and other, net |
1,203 | 76 | (48 | ) | (7,059 | ) | (653 | ) | 901 | (1,286 | ) | (835 | ) | (441 | ) | |||||||||||||||||||||
(Loss) income before income taxes and loss in equity interests |
(13,591 | ) | (263 | ) | 2,904 | (3,689 | ) | (35,527 | ) | (2,979 | ) | (6,674 | ) | 1,286 | 1,012 | |||||||||||||||||||||
(Benefit from) provision for income taxes |
(4,489 | ) | (83 | ) | (30,891 | ) | (2,420 | ) | (12,179 | ) | (829 | ) | (1,823 | ) | 426 | 356 | ||||||||||||||||||||
Loss in equity interests, net |
(1,239 | ) | (1,190 | ) | (1,044 | ) | (844 | ) | (831 | ) | (807 | ) | (873 | ) | (359 | ) | (578 | ) | ||||||||||||||||||
Net (loss) income |
$ | (10,341 | ) | $ | (1,370 | ) | $ | 32,751 | $ | (2,113 | ) | $ | (24,179 | ) | $ | (2,957 | ) | $ | (5,724 | ) | $ | 501 | $ | 78 | ||||||||||||
Basic (loss) income per share: |
$ | (0.09 | ) | $ | (0.01 | ) | $ | 0.27 | $ | (0.02 | ) | $ | (0.20 | ) | $ | (0.02 | ) | $ | (0.05 | ) | $ | | $ | | ||||||||||||
Diluted (loss) income per share: |
$ | (0.09 | ) | $ | (0.01 | ) | $ | 0.27 | $ | (0.02 | ) | $ | (0.20 | ) | $ | (0.02 | ) | $ | (0.05 | ) | $ | | $ | | ||||||||||||
Weighted avg. shares outstanding: |
||||||||||||||||||||||||||||||||||||
Basic shares |
118,855 | 119,274 | 119,473 | 119,575 | 120,032 | 120,701 | 120,796 | 120,892 | 121,425 | |||||||||||||||||||||||||||
Diluted shares |
118,855 | 119,274 | 121,676 | 119,575 | 120,032 | 120,701 | 120,796 | 124,525 | 124,636 | |||||||||||||||||||||||||||
Global employees (ones) |
6,295 | 5,999 | 5,779 | 5,687 | 5,518 | 5,546 | 5,792 | 5,847 | 5,909 | |||||||||||||||||||||||||||
Annualized revenue per average employee |
$ | 153.5 | $ | 145.1 | $ | 145.7 | $ | 148.7 | $ | 153.7 | $ | 155.4 | $ | 161.5 | $ | 175.3 | $ | 177.9 | ||||||||||||||||||
Net Bookings |
186,899 | 175,468 | 185,920 | 258,620 | 219,054 | 208,202 | 235,025 | 330,157 | 272,472 |
5
Monster Worldwide, Inc.
Consolidated Statements of Cash Flows
(unaudited, in thousands)
Consolidated Statements of Cash Flows
(unaudited, in thousands)
Trended Quarterly Data | ||||||||||||||||||||||||||||||||||||
Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | Q1 2011 | ||||||||||||||||||||||||||||
Cash flows provided by (used for) operating activities: |
||||||||||||||||||||||||||||||||||||
Net (loss) income |
$ | (10,341 | ) | $ | (1,370 | ) | $ | 32,751 | $ | (2,113 | ) | $ | (24,179 | ) | $ | (2,957 | ) | $ | (5,724 | ) | $ | 501 | $ | 78 | ||||||||||||
Adjustments to reconcile net (loss) income to cash provided by (used for) operating activities: |
||||||||||||||||||||||||||||||||||||
Depreciation and amortization |
16,320 | 16,945 | 17,419 | 17,849 | 16,604 | 15,692 | 16,482 | 18,318 | 18,401 | |||||||||||||||||||||||||||
Reversal of legal settlements, net |
| | (6,850 | ) | | | | | | | ||||||||||||||||||||||||||
Provision for doubtful accounts |
4,072 | 2,812 | 1,682 | 1,588 | 1,149 | 398 | 489 | 911 | 370 | |||||||||||||||||||||||||||
Non-cash compensation |
10,348 | 9,920 | 10,081 | 9,572 | 10,267 | 10,877 | 13,533 | 12,514 | 13,180 | |||||||||||||||||||||||||||
Deferred income taxes |
(2,488 | ) | (3,933 | ) | 12,160 | (4,550 | ) | (14,713 | ) | (2,872 | ) | (8,509 | ) | (1,796 | ) | (3,984 | ) | |||||||||||||||||||
Non-cash restructuring write-offs, accelerated amortization, and other |
3,690 | 1,051 | 3 | 35 | | 144 | 19 | 92 | | |||||||||||||||||||||||||||
Loss in equity interests, net |
1,239 | 1,190 | 1,044 | 844 | 831 | 807 | 873 | 359 | 578 | |||||||||||||||||||||||||||
Losses (gains) on auction rate securities |
| | | 4,181 | (200 | ) | (1,904 | ) | (311 | ) | | (1,120 | ) | |||||||||||||||||||||||
Changes in assets and liabilities, net of purchase transactions: |
||||||||||||||||||||||||||||||||||||
Accounts receivable |
72,347 | 47,892 | 7,284 | (47,061 | ) | 17,631 | 16,930 | (21,282 | ) | (66,834 | ) | 12,416 | ||||||||||||||||||||||||
Prepaid and other |
3,246 | 13,615 | (16,005 | ) | (3,525 | ) | 1,589 | (2,201 | ) | 720 | (16,598 | ) | (6,718 | ) | ||||||||||||||||||||||
Deferred revenue |
(63,383 | ) | (61,153 | ) | (28,152 | ) | 41,054 | 4,668 | (19,725 | ) | 12,471 | 65,074 | 14,926 | |||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities |
(21,237 | ) | (40,657 | ) | (19,574 | ) | 14,883 | 22,569 | (8,491 | ) | 9,849 | 19,007 | 1,293 | |||||||||||||||||||||||
Net cash (used for) provided by operating activities of discontinued operations |
(77 | ) | 77 | | | | | | | | ||||||||||||||||||||||||||
Total adjustments |
24,077 | (12,241 | ) | (20,908 | ) | 34,870 | 60,395 | 9,655 | 24,334 | 31,047 | 49,342 | |||||||||||||||||||||||||
Net cash provided by (used for) operating activities |
13,736 | (13,611 | ) | 11,843 | 32,757 | 36,216 | 6,698 | 18,610 | 31,548 | 49,420 | ||||||||||||||||||||||||||
Cash flows (used for) provided by investing activities: |
||||||||||||||||||||||||||||||||||||
Capital expenditures |
(14,922 | ) | (11,457 | ) | (12,285 | ) | (10,013 | ) | (8,536 | ) | (11,939 | ) | (16,181 | ) | (20,470 | ) | (16,457 | ) | ||||||||||||||||||
Purchase of marketable securities |
(992 | ) | (6,484 | ) | | (1,109 | ) | | | | | | ||||||||||||||||||||||||
Sale and maturities of marketable securities and other |
1,425 | 1,892 | | 67,660 | 3,414 | 11,120 | 8,461 | 4,094 | 1,120 | |||||||||||||||||||||||||||
Payments for acquisitions and intangible assets, net of cash acquired |
| | (300 | ) | | | | (225,000 | ) | (795 | ) | | ||||||||||||||||||||||||
Dividends received from unconsolidated investee |
| 763 | | | 220 | | | | 443 | |||||||||||||||||||||||||||
Cash funded to equity investee |
(1,428 | ) | (1,886 | ) | (1,639 | ) | (1,346 | ) | (1,345 | ) | (1,555 | ) | (1,524 | ) | (1,224 | ) | (1,007 | ) | ||||||||||||||||||
Net cash (used for) provided by investing activities |
(15,917 | ) | (17,172 | ) | (14,224 | ) | 55,192 | (6,247 | ) | (2,374 | ) | (234,244 | ) | (18,395 | ) | (15,901 | ) | |||||||||||||||||||
Cash flows provided by (used for) financing activities: |
||||||||||||||||||||||||||||||||||||
Proceeds from borrowings on credit facilities short-term |
199,203 | | | | | | 90,000 | | | |||||||||||||||||||||||||||
Payments on borrowings on credit facilities short-term |
| (157,173 | ) | (99,023 | ) | | | | (5,000 | ) | (10,500 | ) | (4,500 | ) | ||||||||||||||||||||||
Repurchase of common stock and tax withholdings on net share settlement of restricted stock awards and units |
(1,907 | ) | (528 | ) | (1,869 | ) | (267 | ) | (6,359 | ) | (2,856 | ) | (589 | ) | (4,423 | ) | (7,096 | ) | ||||||||||||||||||
Net borrowings (payments) under capital lease obligations and other debt |
(5 | ) | (1 | ) | 50,006 | | | | | | | |||||||||||||||||||||||||
Proceeds from the exercise of employee stock options |
9 | | 46 | 12 | 27 | 39 | | 234 | 23 | |||||||||||||||||||||||||||
Excess tax benefits from equity compensation plans |
4 | | 8 | 67 | | | | | | |||||||||||||||||||||||||||
Net cash provided by (used for) financing activities |
197,304 | (157,702 | ) | (50,832 | ) | (188 | ) | (6,332 | ) | (2,817 | ) | 84,411 | (14,689 | ) | (11,573 | ) | ||||||||||||||||||||
Effects of exchange rates on cash |
(6,327 | ) | 13,681 | 4,438 | 209 | (7,932 | ) | (3,930 | ) | 9,207 | (2,008 | ) | 5,887 | |||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents |
188,796 | (174,804 | ) | (48,775 | ) | 87,970 | 15,705 | (2,423 | ) | (122,016 | ) | (3,544 | ) | 27,833 | ||||||||||||||||||||||
Cash and cash equivalents, beginning of period |
222,260 | 411,056 | 236,252 | 187,477 | 275,447 | 291,152 | 288,729 | 166,713 | 163,169 | |||||||||||||||||||||||||||
Cash and cash equivalents, end of period |
$ | 411,056 | $ | 236,252 | $ | 187,477 | $ | 275,447 | $ | 291,152 | $ | 288,729 | $ | 166,713 | $ | 163,169 | $ | 191,002 | ||||||||||||||||||
Non GAAP Free cash flow (1): |
||||||||||||||||||||||||||||||||||||
Net cash provided by (used for) operating activities |
$ | 13,736 | $ | (13,611 | ) | $ | 11,843 | $ | 32,757 | $ | 36,216 | $ | 6,698 | $ | 18,610 | $ | 31,548 | $ | 49,420 | |||||||||||||||||
Less: Capital expenditures |
(14,922 | ) | (11,457 | ) | (12,285 | ) | (10,013 | ) | (8,536 | ) | (11,939 | ) | (16,181 | ) | (20,470 | ) | (16,457 | ) | ||||||||||||||||||
Free cash flow |
$ | (1,186 | ) | $ | (25,068 | ) | $ | (442 | ) | $ | 22,744 | $ | 27,680 | $ | (5,241 | ) | $ | 2,429 | $ | 11,078 | $ | 32,963 | ||||||||||||||
(1) | See notes to financial supplement for further explanation of non-GAAP measures. |
6
Monster Worldwide, Inc.
Consolidated Condensed Balance Sheets
(unaudited, in thousands, except selected financial ratios)
Consolidated Condensed Balance Sheets
(unaudited, in thousands, except selected financial ratios)
Trended Quarterly Data | ||||||||||||||||||||||||||||||||||||
Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | Q1 2011 | ||||||||||||||||||||||||||||
ASSETS |
||||||||||||||||||||||||||||||||||||
Current assets: |
||||||||||||||||||||||||||||||||||||
Cash and cash equivalents |
$ | 411,056 | $ | 236,252 | $ | 187,477 | $ | 275,447 | $ | 291,152 | $ | 288,729 | $ | 166,713 | $ | 163,169 | $ | 191,002 | ||||||||||||||||||
Marketable securities, current |
992 | 14,533 | 20,482 | 9,259 | 8,150 | 8,300 | | | | |||||||||||||||||||||||||||
Accounts Receivable, net |
294,449 | 249,004 | 243,033 | 287,698 | 263,589 | 242,199 | 282,274 | 346,751 | 340,307 | |||||||||||||||||||||||||||
Prepaid and other |
82,710 | 73,866 | 87,058 | 73,089 | 70,229 | 68,487 | 66,301 | 75,451 | 84,600 | |||||||||||||||||||||||||||
Total current assets |
789,207 | 573,655 | 538,050 | 645,493 | 633,120 | 607,715 | 515,288 | 585,371 | 615,909 | |||||||||||||||||||||||||||
Marketable securities, non-current |
89,196 | 81,272 | 75,953 | 15,410 | 13,110 | 4,094 | 4,094 | | | |||||||||||||||||||||||||||
Property and equipment, net |
154,559 | 153,942 | 150,963 | 143,727 | 136,487 | 136,821 | 143,973 | 150,147 | 154,900 | |||||||||||||||||||||||||||
Goodwill |
886,970 | 897,561 | 930,231 | 925,758 | 917,187 | 892,008 | 1,123,834 | 1,122,951 | 1,151,182 | |||||||||||||||||||||||||||
Intangibles, net |
49,533 | 47,420 | 45,893 | 43,863 | 41,173 | 39,029 | 70,067 | 66,184 | 62,474 | |||||||||||||||||||||||||||
Investment in unconsolidated affiliates |
1,315 | 517 | 525 | 546 | 330 | 640 | 745 | 1,359 | 919 | |||||||||||||||||||||||||||
Other assets |
33,314 | 35,100 | 32,617 | 52,393 | 50,884 | 52,411 | 52,108 | 51,990 | 51,061 | |||||||||||||||||||||||||||
Total assets |
$ | 2,004,094 | $ | 1,789,467 | $ | 1,774,232 | $ | 1,827,190 | $ | 1,792,291 | $ | 1,732,718 | $ | 1,910,109 | $ | 1,978,002 | $ | 2,036,445 | ||||||||||||||||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||||||||||||||||||||||||||||||
Current liabilities: |
||||||||||||||||||||||||||||||||||||
Accounts payable, accrued expenses and other |
$ | 225,630 | $ | 192,266 | $ | 204,402 | $ | 196,248 | $ | 217,671 | $ | 203,227 | $ | 213,562 | $ | 225,876 | $ | 232,701 | ||||||||||||||||||
Deferred revenue |
344,905 | 289,818 | 265,573 | 305,898 | 304,993 | 279,809 | 312,952 | 376,448 | 399,105 | |||||||||||||||||||||||||||
Borrowings on credit facility short-term |
254,174 | 97,000 | | | | | 90,000 | 79,500 | 75,000 | |||||||||||||||||||||||||||
Current portion of long-term debt |
27 | 23 | 5,017 | 5,010 | 5,003 | 5,000 | 5,000 | 5,000 | 5,000 | |||||||||||||||||||||||||||
Total current liabilities |
824,736 | 579,107 | 474,992 | 507,156 | 527,667 | 488,036 | 621,514 | 686,824 | 711,806 | |||||||||||||||||||||||||||
Long-term income taxes payable |
123,385 | 125,991 | 82,963 | 87,343 | 89,101 | 90,813 | 95,464 | 95,390 | 96,922 | |||||||||||||||||||||||||||
Long-term debt, less current portion |
| | 45,000 | 45,000 | 45,000 | 45,000 | 40,000 | 40,000 | 40,000 | |||||||||||||||||||||||||||
Other liabilities |
29,838 | 30,971 | 36,394 | 54,527 | 38,288 | 38,325 | 27,398 | 27,138 | 20,603 | |||||||||||||||||||||||||||
Total liabilities |
977,959 | 736,069 | 639,349 | 694,026 | 700,056 | 662,174 | 784,376 | 849,352 | 869,331 | |||||||||||||||||||||||||||
Common stock and class B common stock |
134 | 134 | 134 | 134 | 135 | 135 | 136 | 136 | 137 | |||||||||||||||||||||||||||
Additional paid-in capital |
1,374,049 | 1,382,649 | 1,388,609 | 1,395,970 | 1,394,915 | 1,404,043 | 1,416,547 | 1,424,815 | 1,427,804 | |||||||||||||||||||||||||||
Accumulated other comprehensive income |
8,327 | 28,360 | 71,133 | 64,167 | 48,470 | 20,608 | 69,016 | 63,165 | 98,561 | |||||||||||||||||||||||||||
Accumulated deficit |
(356,375 | ) | (357,745 | ) | (324,993 | ) | (327,107 | ) | (351,285 | ) | (354,242 | ) | (359,966 | ) | (359,466 | ) | (359,388 | ) | ||||||||||||||||||
Total stockholders equity |
1,026,135 | 1,053,398 | 1,134,883 | 1,133,164 | 1,092,235 | 1,070,544 | 1,125,733 | 1,128,650 | 1,167,114 | |||||||||||||||||||||||||||
Total liabilities and stockholders equity |
$ | 2,004,094 | $ | 1,789,467 | $ | 1,774,232 | $ | 1,827,190 | $ | 1,792,291 | $ | 1,732,718 | $ | 1,910,109 | $ | 1,978,002 | $ | 2,036,445 | ||||||||||||||||||
Selected Financial Ratios(1) |
||||||||||||||||||||||||||||||||||||
- Annualized return on equity |
-4.0 | % | -0.5 | % | 12.0 | % | -0.7 | % | -8.7 | % | -1.1 | % | -2.1 | % | 0.2 | % | 0.0 | % | ||||||||||||||||||
- Book value per share |
$ | 8.61 | $ | 8.83 | $ | 9.49 | $ | 9.47 | $ | 9.05 | $ | 8.87 | $ | 9.32 | $ | 9.32 | $ | 9.56 | ||||||||||||||||||
- Cash and marketable securities per share |
$ | 4.20 | $ | 2.78 | $ | 2.37 | $ | 2.51 | $ | 2.59 | $ | 2.49 | $ | 1.41 | $ | 1.35 | $ | 1.57 | ||||||||||||||||||
- Net cash and securities |
$ | 247,038 | $ | 235,034 | $ | 233,895 | $ | 250,106 | $ | 262,409 | $ | 251,123 | $ | 35,807 | $ | 38,669 | $ | 71,002 |
(1) | See notes to financial supplement for definitions and calculations of selected financial ratios. |
7
Monster Worldwide, Inc.
Segment Information and Margin Analysis Non-GAAP
(unaudited, in thousands)
Segment Information and Margin Analysis Non-GAAP
(unaudited, in thousands)
Trended Quarterly Data | ||||||||||||||||||||||||||||||||||||
Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | Q1 2011 | ||||||||||||||||||||||||||||
Segment OIBDA (1): |
||||||||||||||||||||||||||||||||||||
Careers North America |
$ | 12,272 | $ | 22,066 | $ | 16,902 | $ | 12,988 | $ | 5,671 | $ | 26,825 | $ | 29,734 | $ | 28,033 | $ | 29,981 | ||||||||||||||||||
Careers International |
10,749 | 8,386 | 8,154 | 9,024 | (3,089 | ) | 5,583 | 5,170 | 11,539 | 16,941 | ||||||||||||||||||||||||||
Careers OIBDA (1) |
23,021 | 30,452 | 25,056 | 22,012 | 2,582 | 32,408 | 34,904 | 39,572 | 46,922 | |||||||||||||||||||||||||||
Internet Advertising & Fees OIBDA (1) |
6,364 | 7,939 | 8,247 | 7,573 | 4,764 | 4,056 | 5,673 | 4,346 | 5,313 | |||||||||||||||||||||||||||
Total Monster OIBDA (1) |
$ | 29,385 | $ | 38,391 | $ | 33,303 | $ | 29,585 | $ | 7,346 | $ | 36,464 | $ | 40,577 | $ | 43,918 | $ | 52,235 | ||||||||||||||||||
Corporate expenses before D&A (1) |
$ | (13,843 | ) | $ | (10,812 | ) | $ | (2,851 | ) | $ | 1,206 | $ | (15,349 | ) | $ | (13,775 | ) | $ | (15,950 | ) | $ | (10,965 | ) | $ | (19,201 | ) | ||||||||||
Proforma operating income (loss) (1): |
||||||||||||||||||||||||||||||||||||
Careers North America |
$ | 3,100 | $ | 12,405 | $ | 9,519 | $ | 4,226 | $ | (491 | ) | $ | 17,500 | $ | 20,744 | $ | 18,701 | $ | 19,874 | |||||||||||||||||
Careers International |
7,413 | 1,983 | 782 | 297 | (11,269 | ) | (3,989 | ) | (5,576 | ) | 288 | 5,704 | ||||||||||||||||||||||||
Careers Proforma operating income (loss) (1) |
10,513 | 14,388 | 10,301 | 4,523 | (11,760 | ) | 13,511 | 15,168 | 18,989 | 25,578 | ||||||||||||||||||||||||||
Internet Advertising & Fees ProForma operating income (1) |
4,003 | 5,096 | 6,506 | 4,993 | 2,145 | 561 | 1,937 | 559 | 1,524 | |||||||||||||||||||||||||||
Total Monster Proforma income (loss) (1) |
$ | 14,516 | $ | 19,484 | $ | 16,807 | $ | 9,516 | $ | (9,615 | ) | $ | 14,072 | $ | 17,105 | $ | 19,548 | $ | 27,102 | |||||||||||||||||
Corporate Proforma expenses (1) |
$ | (14,288 | ) | $ | (11,756 | ) | $ | (12,913 | ) | $ | (9,567 | ) | $ | (14,528 | ) | $ | (12,223 | ) | $ | (11,554 | ) | $ | (7,612 | ) | $ | (14,984 | ) | |||||||||
Segment operating income (loss) (1): |
||||||||||||||||||||||||||||||||||||
Careers North America |
$ | 828 | $ | 10,919 | $ | 6,057 | $ | 1,866 | $ | (3,772 | ) | $ | 17,454 | $ | 18,773 | $ | 15,328 | $ | 16,989 | |||||||||||||||||
Careers International |
(671 | ) | (2,019 | ) | (2,181 | ) | (1,412 | ) | (13,412 | ) | (4,536 | ) | (5,882 | ) | 258 | 5,422 | ||||||||||||||||||||
Careers operating income (loss) |
157 | 8,900 | 3,876 | 454 | (17,184 | ) | 12,918 | 12,891 | 15,586 | 22,411 | ||||||||||||||||||||||||||
Internet Advertising & Fees operating income |
3,557 | 4,926 | 5,091 | 4,540 | 1,236 | 546 | 1,880 | 562 | 1,503 | |||||||||||||||||||||||||||
Total Monster operating income (loss) |
$ | 3,714 | $ | 13,826 | $ | 8,967 | $ | 4,994 | $ | (15,948 | ) | $ | 13,464 | $ | 14,771 | $ | 16,148 | $ | 23,914 | |||||||||||||||||
Corporate expenses |
$ | (18,508 | ) | $ | (14,165 | ) | $ | (6,015 | ) | $ | (1,624 | ) | $ | (18,926 | ) | $ | (17,344 | ) | $ | (20,159 | ) | $ | (14,027 | ) | $ | (22,461 | ) | |||||||||
Margin Analysis: |
||||||||||||||||||||||||||||||||||||
Careers North America OIBDA margin |
10.3 | % | 21.7 | % | 17.8 | % | 14.3 | % | 5.8 | % | 27.7 | % | 27.7 | % | 23.2 | % | 24.8 | % | ||||||||||||||||||
Careers North America Proforma operating margin |
2.6 | % | 12.2 | % | 10.0 | % | 4.6 | % | -0.5 | % | 18.1 | % | 19.0 | % | 15.0 | % | 16.1 | % | ||||||||||||||||||
Careers North America operating margin |
0.7 | % | 10.7 | % | 6.4 | % | 2.1 | % | -3.9 | % | 18.0 | % | 17.5 | % | 12.7 | % | 14.0 | % | ||||||||||||||||||
Careers International OIBDA margin |
10.4 | % | 9.5 | % | 9.6 | % | 10.2 | % | -3.6 | % | 6.4 | % | 6.0 | % | 11.4 | % | 15.8 | % | ||||||||||||||||||
Careers International Proforma operating margin |
7.1 | % | 2.2 | % | 0.9 | % | 0.3 | % | -13.2 | % | -4.6 | % | -6.4 | % | 0.3 | % | 5.3 | % | ||||||||||||||||||
Careers International operating margin |
-0.6 | % | -2.3 | % | -2.6 | % | -1.6 | % | -15.7 | % | -5.2 | % | -6.8 | % | 0.3 | % | 5.1 | % | ||||||||||||||||||
Careers OIBDA margin |
10.3 | % | 16.0 | % | 13.9 | % | 12.3 | % | 1.4 | % | 17.6 | % | 18.0 | % | 17.8 | % | 20.6 | % | ||||||||||||||||||
Careers Proforma operating margin |
4.7 | % | 7.5 | % | 5.7 | % | 2.5 | % | -6.4 | % | 7.4 | % | 7.8 | % | 8.4 | % | 11.1 | % | ||||||||||||||||||
Careers operating margin |
0.1 | % | 4.7 | % | 2.2 | % | 0.3 | % | -9.4 | % | 7.0 | % | 6.6 | % | 7.0 | % | 9.8 | % | ||||||||||||||||||
Internet Advertising & Fees OIBDA margin |
20.2 | % | 24.3 | % | 23.8 | % | 22.4 | % | 14.6 | % | 13.0 | % | 16.2 | % | 13.4 | % | 16.1 | % | ||||||||||||||||||
Internet Advertising & Fees Proforma operating margin |
12.7 | % | 15.6 | % | 18.8 | % | 14.8 | % | 6.6 | % | 1.8 | % | 5.5 | % | 1.7 | % | 4.6 | % | ||||||||||||||||||
Internet Advertising & Fees operating margin |
11.3 | % | 15.1 | % | 14.7 | % | 13.5 | % | 3.8 | % | 1.8 | % | 5.4 | % | 1.7 | % | 4.5 | % |
(1) | See notes to financial supplement for further explanation of non-GAAP measures. |
8
Monster Worldwide, Inc.
Consolidated Statements of Operations
(unaudited)
Consolidated Statements of Operations
(unaudited)
Trended Quarterly Data | ||||||||||||||||||||||||||||||||||||
Summary P&L Information | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | Q1 2011 | |||||||||||||||||||||||||||
Monster Careers |
87.6 | % | 85.4 | % | 83.9 | % | 84.2 | % | 84.8 | % | 85.5 | % | 84.7 | % | 87.3 | % | 87.3 | % | ||||||||||||||||||
Internet Advertising & Fees |
12.4 | % | 14.6 | % | 16.1 | % | 15.8 | % | 15.2 | % | 14.5 | % | 15.3 | % | 12.7 | % | 12.7 | % | ||||||||||||||||||
Revenue |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||
Salary and related |
44.0 | % | 46.4 | % | 47.9 | % | 49.5 | % | 54.9 | % | 48.4 | % | 46.2 | % | 45.3 | % | 46.9 | % | ||||||||||||||||||
Office and general |
18.0 | % | 19.2 | % | 19.8 | % | 14.8 | % | 21.2 | % | 19.2 | % | 20.4 | % | 16.5 | % | 18.4 | % | ||||||||||||||||||
Marketing and promotion |
29.0 | % | 20.2 | % | 21.3 | % | 21.2 | % | 27.7 | % | 21.8 | % | 22.6 | % | 25.2 | % | 22.1 | % | ||||||||||||||||||
Reversal of legal settlements, net |
0.0 | % | 0.0 | % | -3.2 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||
Restructuring and other special charges |
4.3 | % | 2.3 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||
Depreciation expense |
5.4 | % | 6.5 | % | 7.1 | % | 7.3 | % | 6.7 | % | 6.4 | % | 6.1 | % | 5.6 | % | 5.5 | % | ||||||||||||||||||
Amortization of restricted stock and RSU Plan |
4.0 | % | 4.4 | % | 4.6 | % | 4.4 | % | 4.7 | % | 5.0 | % | 5.9 | % | 4.9 | % | 5.0 | % | ||||||||||||||||||
Non-cash stock option expense |
0.1 | % | 0.0 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | ||||||||||||||||||
Amortization of intangibles |
1.0 | % | 1.1 | % | 1.0 | % | 1.0 | % | 1.0 | % | 0.9 | % | 1.1 | % | 1.6 | % | 1.5 | % | ||||||||||||||||||
Operating expenses |
105.8 | % | 100.2 | % | 98.6 | % | 98.4 | % | 116.2 | % | 101.8 | % | 102.4 | % | 99.2 | % | 99.4 | % | ||||||||||||||||||
Operating (loss) income |
-5.8 | % | -0.2 | % | 1.4 | % | 1.6 | % | -16.2 | % | -1.8 | % | -2.4 | % | 0.8 | % | 0.6 | % | ||||||||||||||||||
Interest and other, net |
0.5 | % | 0.0 | % | 0.0 | % | -3.3 | % | -0.3 | % | 0.4 | % | -0.6 | % | -0.3 | % | -0.2 | % | ||||||||||||||||||
(Loss) income before income taxes and loss in equity interests |
-5.3 | % | -0.1 | % | 1.4 | % | -1.7 | % | -16.5 | % | -1.4 | % | -2.9 | % | 0.5 | % | 0.4 | % | ||||||||||||||||||
(Benefit from) provision for income taxes |
-1.8 | % | 0.0 | % | -14.4 | % | -1.1 | % | -5.7 | % | -0.4 | % | -0.8 | % | 0.2 | % | 0.1 | % | ||||||||||||||||||
Loss in equity interests, net |
-0.5 | % | -0.5 | % | -0.5 | % | -0.4 | % | -0.4 | % | -0.4 | % | -0.4 | % | -0.1 | % | -0.2 | % | ||||||||||||||||||
Net (loss) income |
-4.1 | % | -0.6 | % | 15.3 | % | -1.0 | % | -11.2 | % | -1.4 | % | -2.5 | % | 0.2 | % | 0.0 | % | ||||||||||||||||||
9
Monster Worldwide, Inc.
Consolidated Statements of Operations Reconciliation of Non-GAAP Measures
(unaudited, in thousands)
Consolidated Statements of Operations Reconciliation of Non-GAAP Measures
(unaudited, in thousands)
Trended Quarterly Data | ||||||||||||||||||||||||||||||||||||
Summary P&L Information | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | Q1 2011 | |||||||||||||||||||||||||||
Proforma revenue (1) |
$ | 255,397 | $ | 223,782 | $ | 215,085 | $ | 213,149 | $ | 215,305 | $ | 214,917 | $ | 230,630 | $ | 258,334 | $ | 264,040 | ||||||||||||||||||
Deferred revenue related to acquisitions |
994 | 725 | 552 | | | | 1,788 | 3,265 | 2,658 | |||||||||||||||||||||||||||
Revenue |
$ | 254,403 | $ | 223,057 | $ | 214,533 | $ | 213,149 | $ | 215,305 | $ | 214,917 | $ | 228,842 | $ | 255,069 | $ | 261,382 | ||||||||||||||||||
OIBDA (1) |
$ | 15,542 | $ | 27,579 | $ | 30,452 | $ | 30,791 | $ | (8,003 | ) | $ | 22,689 | $ | 24,627 | $ | 32,953 | $ | 33,034 | |||||||||||||||||
Depreciation expense |
13,769 | 14,479 | 15,230 | 15,639 | 14,521 | 13,782 | 13,975 | 14,204 | 14,373 | |||||||||||||||||||||||||||
Amortization of restricted stock and RSU Plan |
10,149 | 9,816 | 9,924 | 9,417 | 10,124 | 10,744 | 13,398 | 12,380 | 13,028 | |||||||||||||||||||||||||||
Non-cash stock option expense |
199 | 104 | 157 | 155 | 143 | 133 | 135 | 134 | 152 | |||||||||||||||||||||||||||
Restructuring non-cash write-offs |
3,668 | 1,053 | | | | | | | | |||||||||||||||||||||||||||
Amortization of intangibles |
2,551 | 2,466 | 2,189 | 2,210 | 2,083 | 1,910 | 2,507 | 4,114 | 4,028 | |||||||||||||||||||||||||||
Operating (loss) income |
$ | (14,794 | ) | $ | (339 | ) | $ | 2,952 | $ | 3,370 | $ | (34,874 | ) | $ | (3,880 | ) | $ | (5,388 | ) | $ | 2,121 | $ | 1,453 | |||||||||||||
Proforma operating income (loss) (1) |
$ | 228 | $ | 7,728 | $ | 3,894 | $ | (51 | ) | $ | (24,143 | ) | $ | 1,849 | $ | 5,551 | $ | 11,936 | $ | 12,118 | ||||||||||||||||
Reversal of legal settlements, net |
| | (6,850 | ) | | | | | | | ||||||||||||||||||||||||||
Stock option investigation |
3,020 | 2,245 | (474 | ) | (8,037 | ) | | | | | | |||||||||||||||||||||||||
Non-Gaap severance |
| | 5,907 | 2,866 | 6,360 | 494 | 546 | 456 | 362 | |||||||||||||||||||||||||||
Non-Gaap facilities |
| | 1,807 | 1,750 | | | | | 2,998 | |||||||||||||||||||||||||||
Non-Gaap Integration fees |
| | | | 4,371 | 5,235 | 8,605 | 4,668 | 3,831 | |||||||||||||||||||||||||||
Non-Gaap Integration fees Salary |
| | | | | | | 1,426 | 816 | |||||||||||||||||||||||||||
Deferred revenue related to acquisitions |
994 | 725 | 552 | | | | 1,788 | 3,265 | 2,658 | |||||||||||||||||||||||||||
Restructuring program non-cash write-offs |
3,668 | 1,053 | | | | | | | | |||||||||||||||||||||||||||
Restructuring expenses, less non-cash items |
7,340 | 4,044 | | | | | | | | |||||||||||||||||||||||||||
Operating (loss) income |
$ | (14,794 | ) | $ | (339 | ) | $ | 2,952 | $ | 3,370 | $ | (34,874 | ) | $ | (3,880 | ) | $ | (5,388 | ) | $ | 2,121 | $ | 1,453 | |||||||||||||
(1) | See notes to financial supplement for further explanation of non-GAAP measures. |
10