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8-K - FORM 8-K - MONSTER WORLDWIDE, INC.d815197d8k.htm
EX-10.2 - EX-10.2 - MONSTER WORLDWIDE, INC.d815197dex102.htm
EX-99.2 - EX-99.2 - MONSTER WORLDWIDE, INC.d815197dex992.htm
EX-10.4 - EX-10.4 - MONSTER WORLDWIDE, INC.d815197dex104.htm
EX-10.3 - EX-10.3 - MONSTER WORLDWIDE, INC.d815197dex103.htm
EX-10.1 - EX-10.1 - MONSTER WORLDWIDE, INC.d815197dex101.htm

Exhibit 99.1

 

LOGO

Monster Worldwide Reports Third Quarter 2014 Results

 

    Third Quarter Highlights:

 

    Revenue of $191.2 Million

 

    Non-GAAP EPS of $0.05; GAAP EPS of ($0.02)

 

    Adjusted EBITDA of $23 Million; Careers – North America EBITDA Margin of 25%

 

    Launch of New Products in North America and Europe Exceeding Expectations

 

    Job Postings on Monster Network Increases to 4.5 Million

 

    Debt Refinancing Completed; Increasing Total Credit Package to $334 Million

Weston, MA, November 4, 2014 — Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the third quarter ended September 30, 2014.

“Our third quarter results were better than expected, particularly in North America, as we continue to make significant progress on our new ‘All the Jobs, All the People’ strategy,” said Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide. “We introduced TalentBin by Monster, Monster Twitter Cards and Talent CRM in North America in July and in our top tier European countries in October. These exciting new products have been well received by the market and are gaining traction. We plan to continue building on this momentum by introducing more innovative new products in North America and Europe over the next few quarters. As we look ahead, we remain keenly focused on executing our sales strategy and are committed to achieving sustainable improvements to the Company’s EBITDA margins, beginning in the fourth quarter of this year.”

Third Quarter 2014 Results

Total revenue of $191 million was down 3% compared to the third quarter of 2013. Revenue from the Company’s Careers—North America operations decreased 1% on a year-over-year basis and revenue from Careers – International decreased 4% year-over-year. Internet Advertising & Fees revenue was $16 million compared to $18 million in the third quarter of 2013, a decrease of 10%. Historical quarterly revenue data is available in the Company’s supplemental financial information.

 

1


Total GAAP operating expenses of $188 million increased 3% compared to $183 million in the third quarter of 2013. Net loss attributable to Monster for the third quarter of 2014 was $2 million, or ($0.02) per share, compared to net income attributable to Monster of $11 million, or $0.11 per share, in the third quarter of 2013.

Non-GAAP net income attributable to Monster was $5 million, or $0.05 per share, compared to $11 million, or $0.11 per share, in the third quarter of 2013. Non-GAAP operating expenses were $180 million, a 1% increase compared to the third quarter of 2013. Total Adjusted EBITDA margin of 12% was led by Careers—North America with a 25% Adjusted EBITDA margin. Pro-forma items are described in the “Notes Regarding the Use of Non-GAAP Financial Measures” and are reconciled to the applicable GAAP measure in the accompanying tables.

Net cash provided by operating activities in the quarter was $12 million, slightly lower than anticipated due to the timing of certain payments. Cash flow from operations is expected to be between $20 million and $25 million in the fourth quarter of 2014. Deferred revenue was $281 million, down 11% compared to the quarter ended September 30, 2013. The Company ended the quarter with total available liquidity of $161 million.

Nine Month Results

Monster Worldwide reported total revenue of $584 million for the first nine months ended September 30, 2014 compared to $609 million in the same period last year, a 4% decrease. Monster Careers revenue decreased 3% to $536 million compared with $554 million in the 2013 period. Internet Advertising & Fees reported revenue of $48 million compared to $55 million in the prior year period. The Company reported GAAP income attributable to Monster of $0.4 million, with break-even earnings per share, compared to $20 million, or $0.18 per share, in the prior year period.

Convertible Note Offering and Credit Facility Refinancing

On October 22, 2014, the Company completed an offering of $144 million aggregate principal amount of its 3.50% convertible senior notes due in 2019 in a private placement with institutional buyers. Additionally, on October 31, 2014, the Company amended and restated its credit facility. The amended and restated facility matures in October 2017 and provides the Company with $190 million in total available credit. Further information can be obtained in the Company’s Form 8-K filings.

 

2


Share Repurchase

During the third quarter of 2014, Monster repurchased 100,000 shares of its common stock at an average price of $5.52 per share, for a total of $0.6 million. Since the inception of the existing program in the second quarter of 2013, the Company has repurchased 28 million shares, or approximately 25% of its outstanding shares, at an average price of $5.73. At September 30, 2014, there was $41 million remaining under the Company’s previously announced $200 million share repurchase program.

Company Provides Q4 EPS Guidance

Fourth quarter 2014 Non-GAAP EPS from continuing operations is expected to be in the range of $0.04 to $0.08, which excludes approximately $7 million of stock-based compensation and approximately $1 million of non-cash debt discount amortization related to the convertible debt.

Historical data on Non-GAAP EPS excluding stock-based compensation expense is available in the Company’s supplemental financial information.

Conference Call and Webcast

Third quarter 2014 results will be discussed on Monster Worldwide’s quarterly conference call on November 4, 2014 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# 25295069. 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.

 

3


For a replay of the conference call, please dial (855) 859-2056 or (404) 537-3406 and reference ID# 25295069. This number is valid until midnight on November 18, 2014.

Contacts

Investors: Mike McGuinness, (212) 351-7110, michael.mcguinness@monster.com

Media: Matt Anchin, (212) 351-7528, matt.anchin@monster.com

About Monster Worldwide

Monster Worldwide, Inc. (NYSE:MWW), is a global leader in successfully connecting job opportunities and people. Monster uses the world’s most advanced technology to help people Find Better, matching job seekers to opportunities via digital, social and mobile solutions including monster.com®, our flagship website, and employers to the best talent using a vast array of products and services. As an Internet pioneer, more than 200 million people have registered on the Monster Worldwide network. Today, with operations in more than 40 countries, Monster provides the broadest, most sophisticated job seeking, career management, recruitment and talent management capabilities globally. For more information visit monster.com/about

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 and cash flow from operations for the fourth quarter 2014. 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.

 

4


Non-GAAP revenue, operating expenses, operating income from continuing operations, operating margin, income (loss) from continuing operations, income (loss) from discontinued operations, net of tax, and diluted earnings (loss) per share attributable to Monster Worldwide, Inc. all exclude certain pro-forma adjustments including: non-cash stock based compensation expense; costs incurred for the 2012 restructurings; costs incurred related to the Company’s review of strategic alternatives; income tax benefits associated with the reversal of income tax reserves on uncertain tax positions and a tax benefit related to certain losses arising from the Company’s restructuring programs; income tax provision related to the sale of a noncontrolling interest; the results of the businesses in Careers – China, Latin America and Turkey as they have been classified as discontinued operations; gain on deconsolidation of subsidiaries, net; and charges related to exited facilities and acquisition related costs. The Company uses these non-GAAP measures for reviewing the ongoing results of the Company’s core business operations and in certain instances, for measuring performance under certain of the Company’s incentive compensation plans. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is defined as operating income or loss before depreciation and amortization, non-cash compensation expense, and non-cash costs incurred in connection with the Company’s restructuring programs. The Company considers EBITDA to be an important indicator of its operational strength which the Company believes is useful to management and investors in evaluating its operating performance. EBITDA is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA excludes the impact of the pro-forma adjustments discussed above.

Free cash flow is defined as cash flow from operating activities less capital expenditures. Free cash flow is considered a liquidity measure and provides useful information about the Company’s ability to generate cash after investments in property and equipment. Free cash flow reflected herein is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies. Free cash flow does not reflect the total change in the Company’s cash position for the period and should not be considered a substitute for such a measure.

Net cash and securities are defined as cash and cash equivalents plus short-term and long-term marketable securities, less total debt. Total available liquidity is defined as cash and cash equivalents, plus short-term and long-term marketable securities, plus unused borrowings under our credit facility as amended and restated in October 2014. The Company considers net cash and securities and total available liquidity to be important measures of liquidity and indicators of its ability to meet its ongoing obligations. The Company also uses net cash and securities and total available liquidity, among other measures, in evaluating its choices for capital deployment. Net cash and securities and total available liquidity are presented herein as non-GAAP measures and may not be comparable to similarly titled measures used by other companies.

 

5


MONSTER WORLDWIDE, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2014     2013     2014     2013  

Revenue

   $ 191,220      $ 196,817      $ 583,810      $ 608,861   
  

 

 

   

 

 

   

 

 

   

 

 

 

Salaries and related

     100,587        92,931        305,806        279,973   

Office and general

     52,186        51,542        156,524        154,936   

Marketing and promotion

     35,109        38,089        113,899        130,750   

Restructuring and other special charges

     —          —          —          19,995   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     187,882        182,562        576,229        585,654   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     3,338        14,255        7,581        23,207   

Gain on deconsolidation of subsidiaries, net

     —          —          11,828        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Interest and other, net

     (1,830     (1,482     (4,813     (4,107
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes and income (loss) in equity interests

     1,508        12,773        14,596        19,100   

Provision for (benefit from) income taxes

     1,934        4,480        10,212        (5,153

Income (loss) in equity interests, net

     75        (119     —          (822
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income from continuing operations

     (351     8,174        4,384        23,431   

Income (loss) from discontinued operations, net of tax

     —          3,095        —          (3,798
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income

     (351     11,269        4,384        19,633   

Net income attributable to noncontrolling interest

     (1,318     —          (3,954     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ (1,669   $ 11,269      $ 430      $ 19,633   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

(Loss) income from continuing operations

   $ (0.02   $ 0.08      $ —        $ 0.21   

Income (loss) from discontinued operations, net of tax

     —          0.03        —          (0.03
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic (loss) earnings per share

   $ (0.02   $ 0.11      $ —        $ 0.18   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

(Loss) income from continuing operations

   $ (0.02   $ 0.08      $ —        $ 0.21   

Income (loss) from discontinued operations, net of tax

     —          0.03        —          (0.03
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted (loss) earnings per share

   $ (0.02   $ 0.11      $ —        $ 0.18   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

        

Basic

     86,576        105,394        88,236        109,221   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     86,576        105,967        91,235        110,247   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA:

        

Operating income

   $ 3,338      $ 14,255      $ 7,581      $ 23,207   

Depreciation and amortization of intangibles

     12,194        14,545        36,548        46,374   

Stock-based compensation

     6,682        4,901        23,918        17,165   

Restructuring non-cash expenses

     —          —          —          5,315   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 22,214      $ 33,701      $ 68,047      $ 92,061   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

* Earnings per share may not add in certain periods due to rounding.


MONSTER WORLDWIDE, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

     Nine Months Ended
September 30,
 
     2014     2013  

Cash flows provided by operating activities:

    

Net income

   $ 4,384      $ 19,633   
  

 

 

   

 

 

 

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     36,548        46,374   

Provision for doubtful accounts

     1,290        1,750   

Stock-based compensation

     23,918        17,165   

Deferred income taxes

     3,455        2,218   

Non-cash restructuring charges

     —          5,315   

Loss in equity interests, net

     —          822   

Gain on deconsolidation of subsidiaries

     (13,647     —     

Amount reclassified from accumulated other comprehensive income

     1,819        (23,109

Tax benefit from change in uncertain tax positions

     —          (14,355

Excess income tax benefit from equity compensation plans

     (199     (4,014

Changes in assets and liabilities, net of acquisitions:

    

Accounts receivable

     65,356        41,461   

Prepaid and other

     (10,845     12,184   

Deferred revenue

     (56,972     (47,824

Accounts payable, accrued liabilities and other

     637        (48,603
  

 

 

   

 

 

 

Total adjustments

     51,360        (10,616
  

 

 

   

 

 

 

Net cash provided by operating activities

     55,744        9,017   
  

 

 

   

 

 

 

Cash flows used for investing activities:

    

Capital expenditures

     (30,756     (24,990

Payments for acquisitions, net of cash acquired

     (27,005     —     

Investment in Alma Career Oy

     (6,516     —     

Cash funded to and dividends received from equity investee and other

     (1,222     (2,499

Capitalized patent defense costs

     (2,962     —     
  

 

 

   

 

 

 

Net cash used for investing activities

     (68,461     (27,489
  

 

 

   

 

 

 

Cash flows provided by (used for) financing activities:

    

Proceeds from borrowings on credit facilities

     80,300        69,500   

Payments on borrowings on credit facilities

     (8,100     (39,799

Payments on borrowings on term loan

     (6,875     (5,000

Repurchase of common stock

     (52,070     (60,782

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

     (5,014     (5,914

Excess income tax benefit from equity compensation plans

     199        4,014   

Dividend paid to minority holder

     (3,021     —     
  

 

 

   

 

 

 

Net cash provided by (used for) financing activities

     5,419        (37,981
  

 

 

   

 

 

 

Effects of exchange rates on cash

     (907     (4,787
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (8,205     (61,240

Cash and cash equivalents, beginning of period

     88,581        148,185   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 80,376      $ 86,945   
  

 

 

   

 

 

 

Free cash flow:

    

Net cash provided by operating activities

   $ 55,744      $ 9,017   

Less: Capital expenditures

     (30,756     (24,990
  

 

 

   

 

 

 

Free cash flow

   $ 24,988      $ (15,973
  

 

 

   

 

 

 


MONSTER WORLDWIDE, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

     September 30,
2014
     December 31,
2013
 

Assets:

     

Cash and cash equivalents

   $ 80,376       $ 88,581   

Accounts receivable, net

     262,434         332,675   

Property and equipment, net

     121,461         124,169   

Goodwill and intangibles, net

     923,197         919,576   

Investment in unconsolidated affiliates

     22,690         220   

Other assets

     124,708         121,036   
  

 

 

    

 

 

 

Total Assets

   $ 1,534,866       $ 1,586,257   
  

 

 

    

 

 

 

Liabilities and Stockholders’ Equity:

     

Accounts payable, accrued expenses and other current liabilities

   $ 153,343       $ 167,306   

Deferred revenue

     281,039         342,156   

Current portion of long-term debt

     10,000         9,375   

Long-term income taxes payable

     56,465         53,078   

Long-term debt, less current portion

     190,600         125,900   

Other long-term liabilities

     59,219         44,297   
  

 

 

    

 

 

 

Total Liabilities

   $ 750,666       $ 742,112   
  

 

 

    

 

 

 

Stockholders’ Equity

     784,200         844,145   
  

 

 

    

 

 

 

Total Liabilities and Stockholders’ Equity

   $ 1,534,866       $ 1,586,257   
  

 

 

    

 

 

 


MONSTER WORLDWIDE, INC.

UNAUDITED NON-GAAP STATEMENTS OF OPERATIONS AND RECONCILIATIONS

(in thousands, except per share amounts)

 

     Three Months Ended September 30, 2014     Three Months Ended September 30, 2013  
     As
Reported
    Non GAAP
Adjustments
    Consolidated
Non GAAP
    As
Reported
    Non GAAP
Adjustments
    Consolidated
Non GAAP
 

Revenue

   $ 191,220      $ —        $ 191,220      $ 196,817      $ —        $ 196,817   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Salaries and related

     100,587        (6,682 )a      93,905        92,931        (4,901 )a      88,030   

Office and general

     52,186        (880 )d      51,306        51,542        —          51,542   

Marketing and promotion

     35,109        —          35,109        38,089        —          38,089   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     187,882        (7,562     180,320        182,562        (4,901     177,661   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     3,338        7,562        10,900        14,255        4,901        19,156   

Operating margin

     1.7       5.7     7.2       9.7

Interest and other, net

     (1,830     —          (1,830     (1,482     —          (1,482
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes and income (loss) in equity interests

     1,508        7,562        9,070        12,773        4,901        17,674   

Provision for income taxes

     1,934        1,241     3,175        4,480        1,719     6,199   

Income (loss) in equity interests, net

     75        —          75        (119     —          (119
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income from continuing operations

     (351     6,321        5,970        8,174        3,182        11,356   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from discontinued operations, net of tax

     —          —          —          3,095        (3,095 )i      —     

Net (loss) income

     (351     6,321        5,970        11,269        87        11,356   

Net income attributable to noncontrolling interest

     (1,318     —          (1,318     —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ (1,669   $ 6,321      $ 4,652      $ 11,269      $ 87      $ 11,356   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

            

(Loss) income from continuing operations

   $ (0.02   $ 0.07      $ 0.05      $ 0.08      $ 0.03      $ 0.11   

Income (loss) from discontinued operations, net of tax

     —          —          —          0.03        (0.03     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted (loss) earnings per share

   $ (0.02   $ 0.07      $ 0.05      $ 0.11      $ —        $ 0.11   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

            

Basic

     86,576        86,576        86,576        105,394        105,394        105,394   

Diluted

     86,576        89,317        89,317        105,967        105,967        105,967   

 

     Nine Months Ended September 30, 2014     Nine Months Ended September 30, 2013  
     As
Reported
    Non GAAP
Adjustments
    Consolidated
Non GAAP
    As
Reported
    Non GAAP
Adjustments
    Consolidated
Non GAAP
 

Revenue

   $ 583,810      $ —        $ 583,810      $ 608,861      $ —        $ 608,861   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Salaries and related

     305,806        (23,918 )a      281,888        279,973        (17,165 )a      262,808   

Office and general

     156,524        (7,229 )d      149,295        154,936        (2,920 )b      152,016   

Marketing and promotion

     113,899        —          113,899        130,750        —          130,750   

Restructuring and other special charges

     —          —          —          19,995        (19,995 )c      —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     576,229        (31,147     545,082        585,654        (40,080     545,574   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     7,581        31,147        38,728        23,207        40,080        63,287   

Operating margin

     1.3       6.6     3.8       10.4

Gain on deconsolidation of subsidiaries, net

     11,828        (11,828 )e      —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest and other, net

     (4,813     —          (4,813     (4,107     —          (4,107
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes and income (loss) in equity interests

     14,596        19,319        33,915        19,100        40,080        59,180   

Provision for (benefit from) income taxes

     10,212        802 g, h      11,014        (5,153     25,894 f, g      20,741   

Loss in equity interests, net

     —          —          —          (822     —          (822
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     4,384        18,517        22,901        23,431        14,186        37,617   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss from discontinued operations, net of tax

     —          —          —          (3,798     3,798i        —     

Net income

     4,384        18,517        22,901        19,633        17,984        37,617   

Net income attributable to noncontrolling interest

     (3,954     —          (3,954     —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Monster Worldwide, Inc.

   $ 430      $ 18,517      $ 18,947      $ 19,633      $ 17,984      $ 37,617   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

            

Income from continuing operations

   $ —        $ 0.20      $ 0.21      $ 0.21      $ 0.13      $ 0.34   

Loss from discontinued operations, net of tax

     —          —          —          (0.03     0.03        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share

     —        $ 0.20      $ 0.21      $ 0.18      $ 0.16      $ 0.34   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

            

Basic

     88,236        88,236        88,236        109,221        109,221        109,221   

Diluted

     91,235        91,235        91,235        110,247        110,247        110,247   

Note Regarding Non GAAP 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.

Non GAAP adjustments consist of the following:

 

a Costs related to stock based compensation

 

b Costs directly associated with our previously announced review of strategic alternatives.

 

c Restructuring related charges pertaining to the strategic actions that the Company announced in November 2012. 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.

 

d Charges primarily related to exited facilities associated with the move to our new corporate headquarters in Weston, Massachusetts.

 

e Gain on deconsolidation of subsidiaries, net

 

f Non-GAAP income tax adjustment includes the reversal of income tax reserves inclusive of interest due to uncertain tax positions and a tax benefit due to certain losses arising from the company’s restructuring.

 

g Non-GAAP income tax adjustment is calculated using the effective rate of the reporting period, as adjusted for the effects of certain non-deductible stock based compensation and provisions for tax valuation allowances.

 

h Non-GAAP adjustment includes tax provison for gain on deconsolidation of subsidiaries, net.

 

i Discontinued operations related to our sale of ChinaHR and the exit of our businesses in Latin America and Turkey.

 

* 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, 2014

   Careers—
North America
    Careers—
International
    Internet
Advertising
& Fees
    Corporate
Expenses
    Total  

Revenue

   $ 108,565      $ 66,463      $ 16,192        $ 191,220   
  

 

 

   

 

 

   

 

 

     

 

 

 

Operating income (loss)—GAAP

   $ 18,310      $ (7,551   $ 3,442      $ (10,863   $ 3,338   

Non GAAP Adjustments

     2,504        1,995        361        2,702        7,562   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)—Non GAAP

   $ 20,814      $ (5,556   $ 3,803      $ (8,161   $ 10,900   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 26,382      $ (936   $ 4,592      $ (7,824   $ 22,214   

Non GAAP Adjustments

     490        310        80        —          880   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 26,872      $ (626   $ 4,672      $ (7,824   $ 23,094   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating margin—GAAP

     16.9     -11.4     21.3       1.7

Operating margin—Non GAAP

     19.2     -8.4     23.5       5.7

EBITDA margin

     24.3     -1.4     28.4       11.6

Adjusted EBITDA margin

     24.8     -0.9     28.9       12.1

 

Three Months Ended September 30, 2013

   Careers—
North America
    Careers—
International
    Internet
Advertising
& Fees
    Corporate
Expenses
    Total  

Revenue

   $ 109,622      $ 69,115      $ 18,080        $ 196,817   
  

 

 

   

 

 

   

 

 

     

 

 

 

Operating income (loss)—GAAP

   $ 16,346      $ (325   $ 5,902      $ (7,668   $ 14,255   

Non GAAP Adjustments

     1,556        1,606        451        1,288        4,901   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)—Non GAAP

   $ 17,902      $ 1,281      $ 6,353      $ (6,380   $ 19,156   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 25,542      $ 6,953      $ 7,429      $ (6,223   $ 33,701   

Non GAAP Adjustments

     —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 25,542      $ 6,953      $ 7,429      $ (6,223   $ 33,701   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating margin—GAAP

     14.9     -0.5     32.6       7.2

Operating margin—Non GAAP

     16.3     1.9     35.1       9.7

EBITDA margin

     23.3     10.1     41.1       17.1

Adjusted EBITDA margin

     23.3     10.1     41.1       17.1

 

Nine Months Ended September 30, 2014

   Careers—
North America
    Careers—
International
    Internet
Advertising
& Fees
    Corporate
Expenses
    Total  

Revenue

   $ 330,513      $ 205,347      $ 47,950        $ 583,810   
  

 

 

   

 

 

   

 

 

     

 

 

 

Operating income (loss)—GAAP

   $ 48,332      $ (19,814   $ 10,597      $ (31,534   $ 7,581   

Non GAAP Adjustments

     11,048        6,616        1,543        11,940        31,147   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)—Non GAAP

   $ 59,380      $ (13,198   $ 12,140      $ (19,594   $ 38,728   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 74,094      $ 915      $ 14,603      $ (21,565   $ 68,047   

Non GAAP Adjustments

     3,591        525        280        2,833        7,229   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 77,685      $ 1,440      $ 14,883      $ (18,732   $ 75,276   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating margin—GAAP

     14.6     -9.6     22.1       1.3

Operating margin—Non GAAP

     18.0     -6.4     25.3       6.6

EBITDA margin

     22.4     0.4     30.5       11.7

Adjusted EBITDA margin

     23.5     0.7     31.0       12.9

 

Nine Months Ended September 30, 2013

   Careers—
North America
    Careers—
International
    Internet
Advertising
& Fees
    Corporate
Expenses
    Total  

Revenue

   $ 335,274      $ 218,936      $ 54,651        $ 608,861   

Operating income (loss)—GAAP

   $ 48,041      $ (15,370   $ 18,476      $ (27,940   $ 23,207   

Non GAAP Adjustments

     14,562        13,230        1,738        10,550        40,080   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)—Non GAAP

   $ 62,603      $ (2,140   $ 20,214      $ (17,390   $ 63,287   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 80,165      $ 8,830      $ 23,196      $ (20,130   $ 92,061   

Non GAAP Adjustments

     7,543        6,481        341        3,235        17,600   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 87,708      $ 15,311      $ 23,537      $ (16,895   $ 109,661   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating margin—GAAP

     14.3     -7.0     33.8       3.8

Operating margin—Non GAAP

     18.7     -1.0     37.0       10.4

EBITDA margin

     23.9     4.0     42.4       15.1

Adjusted EBITDA margin

     26.2     7.0     43.1       18.0