-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LtpscarP9lqpVrTdRQvUk3vFs+LQOFXcU8GtABic3HBuk9P77ac7cNc4eg8/UO+0 vw3J7rs+iHIjJ+w83xvDHw== 0000912057-01-529410.txt : 20010820 0000912057-01-529410.hdr.sgml : 20010820 ACCESSION NUMBER: 0000912057-01-529410 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010817 ITEM INFORMATION: FILED AS OF DATE: 20010817 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TMP WORLDWIDE INC CENTRAL INDEX KEY: 0001020416 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-ADVERTISING AGENCIES [7311] IRS NUMBER: 133906555 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-21571 FILM NUMBER: 1718083 BUSINESS ADDRESS: STREET 1: 622 THIRD AVE CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2129774200 MAIL ADDRESS: STREET 1: 1633 BROADWAY CITY: NEW YORK STATE: NY ZIP: 10019 8-K 1 a2057347z8-k.txt 8-K - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): AUGUST 17, 2001 TMP WORLDWIDE INC. (Exact name of issuer as specified in its charter) DELAWARE (State or other jurisdiction of incorporation) 0-21571 13-3906555 (Commission File Number) (IRS Employer Identification No.)
622 THIRD AVENUE NEW YORK, NY 10017 (Address of Principal Executive Offices) Registrant's telephone number, including area code (212) 351-7000 NONE (Former address, if changed since last report.) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- ITEM 9. REGULATION FD DISCLOSURE. TMP Worldwide Inc. ("TMP" or the "Company") is furnishing under Item 9 of this Current Report on Form 8-K selected financial information in response to analysts' requests. Readers are referred to the documents filed by the Company with the Securities and Exchange Commission, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including potential fluctuations in quarterly results, volatility of the Company's stock price, intense competition in the Company's markets, changes in demands for the Company's products and services, management of the Company's growth, foreign currency fluctuations and adverse changes in the regulatory environment adversely affecting the Company's business. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. TMP is disclosing certain unaudited historical adjusted financial data retroactively restated to reflect its acquisitions of The Definitive Group Limited ("Definitive Group"), Hayden & Associates, Inc. ("Hayden"), Cornell Technical Services, Inc. ("Cornell"), The Hamel Group, Inc. ("Hamel") and FastWeb, Inc. ("FastWeb"), accounted for as poolings of interests (the "Second Quarter 2001 Mergers") and completed during the second quarter of 2001. Definitive Group, Hayden and Cornell were acquired by our eResourcing division. Hamel was acquired by our Advertising & Communications division. FastWeb was acquired by our Interactive division and is being merged into Monster.com-Registered Trademark-. Such retroactive restatement has already been reflected in the financial statements filed on Form 10-Q For the Quarterly Period Ended June 30, 2001, as of and for the three and six months ended June 30, 2001, for the three and six months ended June 30, 2000 and as of December 31, 2000. This Current Report on Form 8-K presents the effect of the Second Quarter 2001 Mergers on all the historic quarters of 2001, 2000 and 1999. The adjusted operating expenses, adjusted earnings and adjusted earnings before interest, income taxes, depreciation and amortization ("EBITDA") disclosed herein exclude the effects of merger and integration costs and restructuring charges. Such excluded amounts relate to acquisitions accounted for as poolings of interests and are primarily comprised of transaction costs for the mergers completed in the respective year-to-date periods, the costs incurred for the subsequent registration of shares issued in such acquisitions and the amortization of employee stay bonuses. In addition, these amounts include separation pay and office and management integration costs, which include the elimination of redundant management, closing of excess facilities, and the write-off of fixed assets, which will not be used in the future. Adjusted EBITDA is presented to provide additional information about our ability to meet our future debt service, capital expenditures and working capital requirements and is one of the measures which determines our ability to borrow under our credit facility. Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of our profitability or liquidity. Diluted adjusted earnings per share calculations for each quarter reflects the weighted average effect for the quarter; therefore, the sum of the quarters may not equal the full year earnings per share amount, which reflects the weighted average effect on an annual basis. In addition, diluted earnings per share calculations for each quarter include the effect of stock options and warrants, when dilutive to the quarter. TMP's quarterly commissions and fees for recruitment advertising are typically higher in the first and second quarters and lower in the fourth quarter; however, the cyclical nature of the economy and our clients' employment needs have an overriding impact on our quarterly results in Advertising & Communications, eResourcing and Executive Search. The quarterly commissions and fees of our Directional Marketing division are affected by the timing of yellow page directory closings, which currently have a concentration in the second and third quarters. Yellow page publishers may change the timing of directory publications, which may have an effect on our quarterly results. Our Directional Marketing results are also affected by commissions earned for volume placements for the year, and such amounts, if any, are typically reported in the fourth quarter. 1 TMP WORLDWIDE INC. AND SUBSIDIARIES QUARTERLY ADJUSTED FINANCIAL INFORMATION (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED) ACQUISITIONS ACCOUNTED FOR USING THE POOLING OF INTERESTS METHOD During the period of January 1, 2001 through March 31, 2001, the Company consummated mergers with JWG Associates, Inc. and Management Solutions, Inc. in transactions that provided for the exchange of all of the outstanding stock of each entity for a total of 1,193,339 shares of TMP common stock. Such transactions were accounted for as poolings of interests (the "First Quarter 2001 Mergers"). During the period of April 1, 2001 through June 30, 2001, the Company completed the following mergers (the "Second Quarter 2001 Mergers," collectively, with the First Quarter 2001 Mergers, the "First Half 2001 Mergers") which provided for the exchange of all of the outstanding stock of each entity for a total of 2,277,587 shares of TMP common stock and which were accounted for as poolings of interests. The effect of the Second Quarter 2001 Mergers on the various components of stockholders' equity at December 31, 2000 are as follows:
CLASS B COMMON STOCK, COMMON STOCK, OTHER $.001 PAR VALUE $.001 PAR VALUE ADDITIONAL COMPRE- RETAINED TOTAL ---------------------- -------------------- PAID-IN HENSIVE EARNINGS STOCKHOLDERS' SHARES AMOUNT SHARES AMOUNT CAPITAL LOSS DEFICIT EQUITY ------ -------- --------- -------- ---------- -------- -------- ------------- Balance, December 31, 2000 (as reported on the March 31, 2001 Form 10-Q).... 100,404,067 $100 4,762,000 $ 5 $1,142,681 $(63,924) $(11,129) $1,067,733 The Definitive Group Limited... 507,568 1 -- -- 2,553 (311) (7,406) (5,163) Hayden & Associates, Inc....... 353,448 1 -- -- 30 -- 1,322 1,353 Cornell Technical Services, Inc.......................... 308,566 -- -- -- 5 -- 9,665 9,670 The Hamel Group, Inc........... 120,814 -- -- -- 97 -- 2,584 2,681 FastWeb, Inc................... 987,191 1 -- -- 1,593 -- 1,303 2,897 ----------- ---- --------- ---- ---------- -------- -------- ---------- Balance, December 31, 2000 (restated)................... 102,681,654 $103 4,762,000 $ 5 $1,146,959 $(64,235) $(3,661) $1,079,171 =========== ==== ========= ==== ========== ======== ======== ==========
Commissions and fees and net income applicable to common and Class B common stockholders of the combining companies are as follows:
THREE MONTHS ENDED MARCH 31, 2001 -------------- COMMISSIONS AND FEES TMP, as previously reported on the March 31, 2001 Form 10-Q $ 362,825 The Definitive Group Limited................................ 5,738 Hayden & Associates, Inc.................................... 1,868 Cornell Technical Services, Inc............................. 1,509 The Hamel Group, Inc........................................ 1,235 FastWeb, Inc................................................ 4,020 ---------- Restated.................................................... $ 377,195 ==========
2 TMP WORLDWIDE INC. AND SUBSIDIARIES QUARTERLY ADJUSTED FINANCIAL INFORMATION (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
THREE MONTHS ENDED MARCH 31, 2001 -------------- NET INCOME (LOSS) TMP, as previously reported on the March 31, 2001 Form 10-Q $ 5,770 The Definitive Group Limited................................ 630 Hayden & Associates, Inc.................................... (422) Cornell Technical Services, Inc............................. (870) The Hamel Group, Inc........................................ 504 FastWeb, Inc................................................ 82 ---------- Restated.................................................... 5,694 Merger and integration costs, net of tax benefits........... 14,587 ---------- Restated, as adjusted....................................... $ 20,281 ==========
2000 THREE MONTHS ENDED -------------------------------------------------- TOTAL MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 YEAR --------- -------- ------------ ------------ ------------- COMMISSIONS AND FEES TMP, as previously reported on Form 10-K........ $271,396 $316,117 $352,314 $351,910 $1,291,737 JWG Associates, Inc............................. 6,309 6,695 6,660 6,505 26,169 Management Solutions, Inc....................... 6,532 6,767 6,578 5,379 25,256 The Definitive Group Limited.................... 5,764 6,235 6,082 5,623 23,704 Hayden & Associates, Inc........................ 2,549 2,579 2,471 2,381 9,980 Cornell Technical Services, Inc................. 2,714 2,508 2,151 2,033 9,406 The Hamel Group, Inc............................ 1,214 886 999 1,131 4,230 FastWeb, Inc.................................... 5,156 4,823 3,859 3,206 17,044 -------- -------- -------- -------- ---------- Restated........................................ $301,634 $346,610 $381,114 $378,168 $1,407,526 ======== ======== ======== ======== ========== NET INCOME (LOSS) TMP, as previously reported on Form 10-K........ $ 5,609 $ 12,551 $ 26,327 $ 12,372 $ 56,859 JWG Associates, Inc............................. 617 678 7 (2,555) (1,253) Management Solutions, Inc....................... 285 (379) (741) (979) (1,814) The Definitive Group Limited.................... (1,897) (3,173) (6,316) 618 (10,768) Hayden & Associates, Inc........................ 1,088 1,051 879 (294) 2,724 Cornell Technical Services, Inc................. 511 99 251 33 894 The Hamel Group, Inc............................ 506 161 276 300 1,243 FastWeb, Inc.................................... 1,988 1,143 327 (480) 2,978 -------- -------- -------- -------- ---------- Restated........................................ 8,707 12,131 21,010 9,015 50,863 Merger and integration costs, net of tax benefits...................................... 7,116 12,152 8,107 25,632 53,007 -------- -------- -------- -------- ---------- Restated, as adjusted........................... $ 15,823 $ 24,283 $ 29,117 $ 34,647 $ 103,870 ======== ======== ======== ======== ==========
1999 THREE MONTHS ENDED -------------------------------------------------- TOTAL MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 YEAR --------- -------- ------------ ------------ ------------- COMMISSIONS AND FEES TMP, as previously reported on Form 10-K........ $200,389 $220,445 $244,969 $243,152 $ 908,955 JWG Associates, Inc............................. 5,326 5,347 5,893 5,832 22,398 Management Solutions, Inc....................... 3,618 3,847 5,092 8,883 21,440 The Definitive Group Limited.................... 4,399 9,530 2,526 7,819 24,274 Hayden & Associates, Inc........................ 1,606 2,140 2,153 2,077 7,976 Cornell Technical Services, Inc................. 2,936 3,001 2,480 2,416 10,833 The Hamel Group, Inc............................ 682 732 892 986 3,292 FastWeb, Inc.................................... 1,927 1,409 1,910 2,831 8,077 -------- -------- -------- -------- ---------- Restated........................................ $220,883 $246,451 $265,915 $273,996 $1,007,245 ======== ======== ======== ======== ==========
3 TMP WORLDWIDE INC. AND SUBSIDIARIES QUARTERLY ADJUSTED FINANCIAL INFORMATION (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
1999 THREE MONTHS ENDED -------------------------------------------------- TOTAL MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 YEAR --------- -------- ------------ ------------ ------------- NET INCOME (LOSS) TMP, as previously reported on Form 10-K........ $ 1,336 $ 5,132 $ (1,609) $ (5,647) $ (788) JWG Associates, Inc............................. 1,349 839 1,307 (734) 2,761 Management Solutions, Inc....................... (1,489) (1,141) 84 3,704 1,158 The Definitive Group Limited.................... 917 405 (1,352) 926 896 Hayden & Associates, Inc........................ 536 914 503 (149) 1,804 Cornell Technical Services, Inc................. 1,129 1,286 778 880 4,073 The Hamel Group, Inc............................ 114 204 292 (145) 465 FastWeb, inc.................................... (411) (1,088) (936) 224 (2,211) -------- -------- -------- -------- ---------- Restated........................................ 3,481 6,551 (933) (941) 8,158 Merger, integration and restructuring costs, net of tax benefits............................... 5,029 4,753 21,573 15,022 46,377 -------- -------- -------- -------- ---------- Restated, as adjusted........................... $ 8,510 $ 11,304 $ 20,640 $ 14,081 $ 54,535 ======== ======== ======== ======== ==========
4 TMP WORLDWIDE INC. AND SUBSIDIARIES QUARTERLY ADJUSTED FINANCIAL INFORMATION (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
2001 THREE MONTHS ENDED SIX MONTHS -------------------- ENDED MARCH 31 JUNE 30 JUNE 30, 2001 --------- -------- ------------- GROSS BILLINGS Interactive................................................. $182,730 $189,658 $ 372,388 Advertising & Communications................................ 231,324 185,976 417,300 eResourcing................................................. 116,827 117,086 233,913 Executive Search............................................ 31,489 32,518 64,007 Directional Marketing....................................... 129,726 145,621 275,347 -------- -------- ---------- Total gross billings.................................... $692,096 $670,859 $1,362,955 ======== ======== ========== COMMISSIONS & FEES Interactive................................................. $160,715 $172,552 $ 333,267 Advertising & Communications................................ 49,547 42,971 92,518 eResourcing................................................. 113,486 111,116 224,602 Executive Search............................................ 31,489 32,517 64,006 Directional Marketing....................................... 21,958 24,450 46,408 -------- -------- ---------- Total commissions & fees................................ 377,195 383,606 760,801 -------- -------- ---------- ADJUSTED OPERATING EXPENSES Salaries & related.......................................... 198,523 195,802 394,325 Office & general............................................ 86,645 73,154 159,799 Marketing & promotion....................................... 54,677 56,017 110,694 Amortization of intangibles................................. 5,888 6,217 12,105 -------- -------- ---------- Total adjusted operating expenses....................... 345,733 331,190 676,923 -------- -------- ---------- Adjusted operating income................................... 31,462 52,416 83,878 OTHER INCOME (EXPENSE) Interest income, net........................................ 5,046 4,329 9,375 Other, net.................................................. (2,090) 1,490 (600) -------- -------- ---------- Total other income (expense), net....................... 2,956 5,819 8,775 -------- -------- ---------- Adjusted income before provision for income taxes & minority interests................................................. 34,418 58,235 92,653 Provision for income taxes.................................. 14,318 22,529 36,847 -------- -------- ---------- Adjusted income before minority interests................... 20,100 35,706 55,806 Minority interests.......................................... (181) (379) (560) -------- -------- ---------- Adjusted net income......................................... $ 20,281 $ 36,085 $ 56,366 ======== ======== ========== Diluted weighted average shares outstanding................. 113,003 113,717 113,224 ======== ======== ========== Diluted adjusted earnings per share......................... $ 0.18 $ 0.32 $ 0.50 ======== ======== ========== ADJUSTED EBITDA Adjusted operating income................................... $ 31,462 $ 52,416 $ 83,878 Depreciation and amortization............................... 10,694 12,531 23,225 Amortization of intangibles................................. 5,888 6,217 12,105 Other income (expense), net................................. (2,090) 1,490 (600) Minority interests.......................................... 181 379 560 -------- -------- ---------- Total adjusted EBITDA................................... $ 46,135 $ 73,033 $ 119,168 ======== ======== ========== Merger and integration costs (excluded from above).......... $ 20,193 $ 21,533 $ 41,726 Tax benefit of merger and integration costs (excluded from above).................................................... $ (5,606) $ (5,275) $ (10,881) Diluted earnings per share (restated)....................... $ 0.05 $ 0.17 $ 0.23
5 TMP WORLDWIDE INC. AND SUBSIDIARIES QUARTERLY ADJUSTED FINANCIAL INFORMATION (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
2000 THREE MONTHS ENDED -------------------------------------------------- TOTAL MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 YEAR --------- -------- ------------ ------------ ---------- GROSS BILLINGS Interactive........................................ $ 89,854 $113,670 $140,429 $163,290 $ 507,243 Advertising & Communications....................... 259,673 265,320 254,470 244,766 1,024,229 eResourcing........................................ 106,926 117,224 122,976 113,290 460,416 Executive Search................................... 39,007 48,345 47,888 43,159 178,399 Directional Marketing.............................. 133,175 135,694 162,789 113,926 545,584 -------- -------- -------- -------- ---------- Total gross billings........................... $628,635 $680,253 $728,552 $678,431 $2,715,871 ======== ======== ======== ======== ========== COMMISSIONS & FEES Interactive........................................ $ 79,551 $102,219 $126,027 $145,589 $ 453,386 Advertising & Communications....................... 54,374 56,863 56,828 55,126 223,191 eResourcing........................................ 105,402 116,102 121,086 112,422 455,012 Executive Search................................... 39,007 48,345 47,888 43,159 178,399 Directional Marketing.............................. 23,300 23,081 29,285 21,872 97,538 -------- -------- -------- -------- ---------- Total commissions & fees....................... 301,634 346,610 381,114 378,168 1,407,526 -------- -------- -------- -------- ---------- ADJUSTED OPERATING EXPENSES Salaries & related................................. 168,659 187,553 194,445 192,932 743,589 Office & general................................... 74,202 80,025 84,772 83,454 322,453 Marketing & promotion.............................. 30,614 39,846 50,241 44,182 164,883 Amortization of intangibles........................ 4,485 4,677 5,387 5,194 19,743 -------- -------- -------- -------- ---------- Total adjusted operating expenses.............. 277,960 312,101 334,845 325,762 1,250,668 -------- -------- -------- -------- ---------- Adjusted operating income.......................... 23,674 34,509 46,269 52,406 156,858 OTHER INCOME (EXPENSE) Interest income, net............................... 1,233 4,761 5,589 7,867 19,450 Other, net......................................... 87 (339) (636) (2,145) (3,033) -------- -------- -------- -------- ---------- Total other income (expense), net.............. 1,320 4,422 4,953 5,722 16,417 -------- -------- -------- -------- ---------- Adjusted income before provision for income taxes & minority interests............................. 24,994 38,931 51,222 58,128 173,275 Provision for income taxes......................... 9,252 14,891 22,167 23,537 69,847 -------- -------- -------- -------- ---------- Adjusted income before minority interests.......... 15,742 24,040 29,055 34,591 103,428 Minority interests................................. (81) (243) (62) (56) (442) -------- -------- -------- -------- ---------- Adjusted net income................................ $ 15,823 $ 24,283 $ 29,117 $ 34,647 $ 103,870 ======== ======== ======== ======== ========== Diluted weighted average shares outstanding........ 109,684 111,474 112,533 112,758 111,375 ======== ======== ======== ======== ========== Diluted adjusted earnings per share................ $ 0.14 $ 0.22 $ 0.26 $ 0.31 $ 0.93 ======== ======== ======== ======== ========== ADJUSTED EBITDA Adjusted operating income.......................... $ 23,674 $ 34,509 $ 46,269 $ 52,406 $ 156,858 Depreciation and amortization...................... 8,743 8,830 9,508 11,235 38,316 Amortization of intangibles........................ 4,485 4,677 5,387 5,194 19,743 Other income (expense), net........................ 87 (339) (636) (2,145) (3,033) Minority interests................................. 81 243 62 56 442 -------- -------- -------- -------- ---------- Total adjusted EBITDA.............................. $ 37,070 $ 47,920 $ 60,590 $ 66,746 $ 212,326 ======== ======== ======== ======== ========== Merger and integration costs (excluded from above)........................................... $ 8,674 $ 13,649 $ 14,823 $ 27,458 $ 64,604 Tax benefit of merger and integration costs (excluded from above)............................ $ (1,558) $ (1,497) $ (6,716) $ (1,826) $ (11,597) Diluted earnings per share (restated).............. $ 0.08 $ 0.11 $ 0.19 $ 0.08 $ 0.46
6 TMP WORLDWIDE INC. AND SUBSIDIARIES QUARTERLY ADJUSTED FINANCIAL INFORMATION (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
1999 THREE MONTHS ENDED -------------------------------------------------- TOTAL MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 YEAR --------- -------- ------------ ------------ ---------- GROSS BILLINGS Interactive........................................ $ 30,494 $ 37,091 $ 51,060 $ 67,556 $ 186,201 Advertising & Communications....................... 249,838 246,411 238,955 232,769 967,973 eResourcing........................................ 76,235 90,097 93,800 99,820 359,952 Executive Search................................... 41,544 42,686 47,776 41,552 173,558 Directional Marketing.............................. 120,011 137,101 156,580 118,566 532,258 -------- -------- -------- -------- ---------- Total gross billings........................... $518,122 $553,386 $588,171 $560,263 $2,219,942 ======== ======== ======== ======== ========== COMMISSIONS & FEES Interactive........................................ $ 27,723 $ 33,440 $ 45,871 $ 59,819 $ 166,853 Advertising & Communications....................... 52,911 53,604 51,180 51,372 209,067 eResourcing........................................ 74,941 89,534 92,548 99,731 356,754 Executive Search................................... 41,513 42,686 47,776 41,302 173,277 Directional Marketing.............................. 23,795 27,187 28,540 21,772 101,294 -------- -------- -------- -------- ---------- Total commissions & fees....................... 220,883 246,451 265,915 273,996 1,007,245 -------- -------- -------- -------- ---------- ADJUSTED OPERATING EXPENSES Salaries & related................................. 129,665 147,010 144,895 151,418 572,988 Office & general................................... 61,505 54,099 57,188 65,590 238,382 Marketing & promotion.............................. 10,987 20,573 18,335 28,376 78,271 Amortization of intangibles........................ 3,673 3,818 4,240 3,989 15,720 -------- -------- -------- -------- ---------- Total adjusted operating expenses.............. 205,830 225,500 224,658 249,373 905,361 -------- -------- -------- -------- ---------- Adjusted operating income.......................... 15,053 20,951 41,257 24,623 101,884 OTHER INCOME (EXPENSE) Interest expense, net.............................. (4,096) (3,388) (3,583) (4,318) (15,385) Other, net......................................... (77) (1,203) (892) (278) (2,450) -------- -------- -------- -------- ---------- Total other income (expense), net.............. (4,173) (4,591) (4,475) (4,596) (17,835) -------- -------- -------- -------- ---------- Adjusted income before provision for income taxes, minority interests & equity in losses of affiliates....................................... 10,880 16,360 36,782 20,027 84,049 Provision for income taxes......................... 2,171 4,948 16,042 5,946 29,107 -------- -------- -------- -------- ---------- Adjusted income before minority interests & equity in losses of affiliates.......................... 8,709 11,412 20,740 14,081 54,942 Minority interests................................. 99 8 -- -- 107 Equity in losses of affiliates..................... (100) (100) (100) -- (300) -------- -------- -------- -------- ---------- Adjusted net income................................ $ 8,510 $ 11,304 $ 20,640 $ 14,081 $ 54,535 ======== ======== ======== ======== ========== Diluted weighted average shares outstanding........ 96,098 97,551 97,350 100,073 97,925 ======== ======== ======== ======== ========== Diluted adjusted earnings per share................ $ 0.09 $ 0.12 $ 0.21 $ 0.14 $ 0.56 ======== ======== ======== ======== ========== ADJUSTED EBITDA Adjusted operating income.......................... $ 15,053 $ 20,951 $ 41,257 $ 24,623 $ 101,884 Depreciation and amortization...................... 6,459 7,336 9,551 7,667 31,013 Amortization of intangibles........................ 3,673 3,818 4,240 3,989 15,720 Other income (expense), net........................ (77) (1,203) (892) (278) (2,450) Minority interests................................. (99) (8) -- -- (107) Equity in losses of affiliates..................... (100) (100) (100) -- (300) -------- -------- -------- -------- ---------- Total adjusted EBITDA.......................... $ 24,909 $ 30,794 $ 54,056 $ 36,001 $ 145,760 ======== ======== ======== ======== ========== Merger and integration costs (excluded from above)........................................... $ 4,687 $ 6,767 $ 34,808 $ 16,792 $ 63,054 Restructuring charge (excluded from above)......... $ 2,789 $ -- $ -- $ -- $ 2,789 Tax benefit of merger and integration costs and restructuring charge (excluded from above)....... $ (2,447) $ (2,014) $(13,235) $ (1,770) $ (19,466) Diluted earnings (loss) per share (restated)....... $ 0.04 $ 0.07 $ (0.01) $ (0.01) $ 0.08
7 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized. TMP WORLDWIDE INC. (Registrant) By: /s/ BART CATALANE ----------------------------------------- Bart Catalane CHIEF FINANCIAL OFFICER Dated: August 17, 2001
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