EX-99.2 3 c03976exv99w2.htm EXHIBIT 99.2 Exhibit 99.2
Exhibit 99.2
(MONSTER WORLDWIDE LOGO)
FINANCIAL SUPPLEMENT
June 30, 2010
Monster Worldwide, Inc. (together with its consolidated subsidiaries, the “Company,” “Monster,” “we,” “our” or “us”) provides this supplement to assist investors in evaluating the Company’s 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.

 

 


 

(MONSTER WORLDWIDE LOGO)
Notes to Financial Supplement
Presentation
Severance Charges
For the three and six months ended June 30, 2010, the Company incurred $0.5 million and $6.9 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.
Agreement to Acquire HotJobs Business From Yahoo! Inc.
On February 3, 2010, the Company entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”) with Yahoo! Inc. (“Yahoo!”), pursuant to which the Company has agreed to acquire from Yahoo! certain assets exclusive to Yahoo! HotJobs (the “HotJobs Assets”) for a purchase price of $225.0 million in cash payable at the closing of the transaction. The closing is subject to customary conditions, including the receipt of requisite antitrust approvals. Either party may terminate the Asset Purchase Agreement, subject to certain exceptions, (i) in the event of an uncured breach of the Asset Purchase Agreement by the other party, (ii) if the closing has not occurred by August 25, 2010 (the “Termination Date”), provided that the Termination Date may be extended by up to nine additional months, in Yahoo!’s sole discretion, in connection with any antitrust related regulatory action or proceeding, (iii) if a legal restraint would prevent the consummation of the closing or (iv) if either party is compelled by a government authority to sell, hold separate or otherwise dispose of all or any portion of the HotJobs Assets or limit the operation of the HotJobs business.
In connection with the transaction, the Company and Yahoo! entered into certain other ancillary agreements to be effective as of the closing of the acquisition, including (i) a license agreement, pursuant to which Yahoo! will grant to the Company a license of certain patents and trade secrets for use by the Company, and the Company will agree to grant back to Yahoo! a license of the technology, trade secrets and patents assigned to the Company under the Asset Purchase Agreement, (ii) a transition services agreement to ensure the Company’s ability to operate the HotJobs business for a period of six months following the closing (as such time period may be extended at the Company’s discretion by up to three additional months) and (iii) a commercial traffic agreement, pursuant to which Yahoo! has agreed to place hyperlinks on Yahoo!’s homepages in the United States and Canada and certain other Yahoo! properties designed to direct user traffic to Monster.com and Monster.ca.
On April 7, 2010, the Company received a request for additional information from the U.S. Federal Trade Commission (“FTC”) with respect to the proposed acquisition of the HotJobs Assets. The request for information from the FTC is part of the investigative regulatory review process under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (“HSR Act”). The Company has responded expeditiously to this request and will continue to work cooperatively with the FTC in connection with this review. Completion of the transaction remains subject to the expiration or termination of the waiting period under the HSR Act and other customary closing conditions. The Company continues to expect the transaction to close during the third quarter of 2010.
In the three and six months ended June 30, 2010, the Company incurred $5.2 million and $9.6 million, respectively, of acquisition related costs associated with the agreement to acquire the HotJobs Assets. These costs primarily relate to legal fees, professional fees and other costs associated with the acquisition. We expect to continue to incur significant acquisition related costs and integration fees in 2010 relating to the acquisition of the HotJobs Assets.

 

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Restructuring Actions
On July 30, 2007, we announced a strategic restructuring plan intended to position the Company for sustainable long-term growth in the rapidly evolving global online recruitment and advertising industry.
The restructuring plan was originally designed to reduce the Company’s workforce by approximately 800 associates. Subsequent to the announcement of this plan, the Company made a strategic decision to in-source customer service and identified 100 associates who will be staying with the Company. Through June 30, 2009, when all the initiatives relating to the 2007 restructuring plan were complete, the Company had notified or terminated approximately 700 associates and approximately 140 associates had voluntarily left the Company. The plan also included fixed asset write-offs, accelerated depreciation for assets to be phased out, costs relating to the consolidation of certain office facilities, contract termination costs, relocation costs and professional fees. The restructuring plan arose out of a review commencing in the second quarter of 2007 by our current executive management team of our cost structure and organizational structure. The restructuring was intended to realign the structure to permit investment in key areas that will improve the customer experience and foster revenue growth and long-term operating margin expansion. Since the inception of the 2007 restructuring program through the completion of the program in the second quarter of 2009, the Company has incurred $49.1 million of restructuring expenses. The Company will not incur any new charges relating to this program.
For the three and six months ended June 30, 2009, we recorded $5.1 million and $16.1 million, respectively, of restructuring costs, primarily related to severance, fixed asset write-offs and office consolidations.
Auction Rate Securities
In the three months ended June 30, 2010, the Company received at par value $9.8 million from issuer redemptions of auction rate securities, resulting in a $0.8 million benefit which was recorded in interest and other, net, in the consolidated statement of operations for the three months ended June 30, 2010. In the six months ended June 30, 2010, the Company received at par value $12.3 million from issuer redemptions of auction rate securities, resulting in a $1.0 million benefit which was recorded in interest and other, net, in the consolidated statement of operations for the six months ended June 30, 2010.
In November 2009, the Company entered into a settlement agreement with RBC Capital Markets Corporation (“RBC”) with respect to auction rate securities 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. 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. As part of the settlement agreement, the Company dismissed a lawsuit it had filed against RBC in connection with, and released claims related to, RBC’s sale of the auction rate securities to the Company. Accordingly, the Company recorded a realized loss of $4.8 million in the fourth quarter of 2009 relating to the settlement with RBC, which was reflected in interest and other, net in the consolidated statement of operations for the fiscal year ended December 31, 2009. In the second quarter of 2010, the Company received $1.1 million from RBC relating to auction rate securities which were redeemed by the issuer for sums higher than the amounts RBC paid the Company to repurchase such auction rate securities. The Company’s receipt of $1.1 million from RBC resulted in a $1.1 million benefit recorded in interest and other, net, in the consolidated statement of operations for the six months ended June 30, 2010.
Deferred revenue related to acquisitions
During the fourth quarter of 2008, we completed the acquisition of ChinaHR.com Holdings Ltd. (“ChinaHR”). In accordance with existing purchase accounting rules, we are required to write down a portion of ChinaHR’s deferred revenue to its fair value. 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. For the three and six months ended June 30, 2009, the fair value adjustment to ChinaHR’s deferred revenue was $0.7 million and $1.7 million, respectively.

 

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Professional Fees
For the three and six months ended June 30, 2009, we recorded approximately $2.2 million and $5.3 million, respectively, of professional fees relating to our historical stock option granting practices. These costs primarily related to legal fees and are a component of “office and general” in our consolidated statement of operations. In addition, we have incurred costs related to litigation, an informal investigation by the SEC and an investigation by the United States Attorney for the Southern District of New York.
As a consequence of the Company’s entry into the settlement agreement with respect to the ERISA class action and settlement of the Company’s claims against a former member of senior management, we do not expect to continue to incur significant professional fees or legal fees paid on behalf of former employees and former members of senior management related to or in connection with matters relating to our historical stock option grant practices.
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, operating margin, income from continuing operations and diluted earnings per share all exclude certain pro forma adjustments including: net costs associated with the Company’s historical stock option grant practices, related litigation and potential fines or settlements; severance costs for former executive officers incurred in the second quarter of 2007; costs related to the measures taken by the Company in response to a security breach in August 2007; the strategic restructuring actions initiated in the third quarter of 2007; severance and facility charges primarily related to the product and technology global reorganization; the fair value adjustment to deferred revenue in connection with the acquisition of ChinaHR; realized and unrealized gains and losses on marketable securities; transaction costs related to the proposed acquisition of Yahoo! HotJobs; 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 Company’s core business operations and in certain instances, for measuring performance under certain of the Company’s incentive compensation plans. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is defined as net income or loss before interest income or expense, income tax expense or benefit, 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 income from operations before depreciation, amortization of intangible assets, amortization of stock based compensation and non-cash costs incurred in connection with the Company’s restructuring program. The Company considers OIBDA to be an important indicator of its operational strength. This measure eliminates the effects of depreciation, amortization of intangible assets, amortization of stock based compensation and non-cash restructuring costs from period to period, which the Company believes is useful to management and investors in evaluating its operating performance. OIBDA is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies.

 

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Bookings represent the dollar value of contractual orders received in a quarter.
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. 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

 

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Monster Worldwide, Inc.
Statements of Operations
(unaudited, in thousands, except per share amounts)
                                                                                         
    Trended Quarterly Data     Year to Date Data  
Summary P&L Information   Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010     6M 2009     6M 2010  
 
                                                                                       
Monster Careers
  $ 320,953     $ 297,606     $ 257,931     $ 222,849     $ 190,397     $ 179,941     $ 179,409     $ 182,582     $ 183,808     $ 413,246     $ 366,390  
Internet Advertising & Fees
    33,341       34,583       32,741       31,554       32,660       34,592       33,740       32,723       31,109       64,214       63,832  
 
                                                                 
Revenue
    354,294       332,189       290,672       254,403       223,057       214,533       213,149       215,305       214,917       477,460       430,222  
 
                                                                                       
Salary and related
    127,346       128,904       123,211       112,037       103,564       102,752       105,475       118,183       104,089       215,601       222,272  
Office and general
    61,754       57,124       44,091       45,793       42,917       42,422       31,623       45,544       41,214       88,710       86,758  
Marketing and promotion
    68,976       57,684       52,684       73,691       44,953       45,757       45,260       59,581       46,925       118,644       106,506  
Provision for (Reversal of) legal settlements, net
    40,100                               (6,850 )                              
Restructuring and other special charges
    2,732       3,592       3,156       11,008       5,097                               16,105        
Depreciation expense
    12,330       13,336       14,761       13,769       14,479       15,230       15,639       14,521       13,782       28,248       28,303  
Amortization of restricted stock and RSU Plan
    8,351       7,437       7,046       10,149       9,816       9,924       9,417       10,124       10,744       19,965       20,868  
Non-cash stock option expense
    182       165       178       199       104       157       155       143       133       303       276  
Amortization of intangibles
    1,274       1,374       2,756       2,551       2,466       2,189       2,210       2,083       1,910       5,017       3,993  
 
                                                                 
Operating expenses
    323,045       269,616       247,883       269,197       223,396       211,581       209,779       250,179       218,797       492,593       468,976  
 
                                                                                       
Operating income (loss)
    31,249       62,573       42,789       (14,794 )     (339 )     2,952       3,370       (34,874 )     (3,880 )     (15,133 )     (38,754 )
Interest and other, net
    3,057       5,283       1,560       1,203       76       (48 )     (7,059 )     (653 )     901       1,279       248  
 
                                                                 
Income (loss) from cont. operations, pre-tax
    34,306       67,856       44,349       (13,591 )     (263 )     2,904       (3,689 )     (35,527 )     (2,979 )     (13,854 )     (38,506 )
 
                                                                                       
Provison for (benefit from) Income taxes
    12,153       22,734       14,880       (4,489 )     (83 )     (30,891 )     (2,420 )     (12,179 )     (829 )     (4,572 )     (13,008 )
Losses in equity interests, net
    (3,592 )     (2,086 )     (339 )     (1,239 )     (1,190 )     (1,044 )     (844 )     (831 )     (807 )     (2,429 )     (1,638 )
 
                                                                 
Income (loss) from continuing operations
    18,561       43,036       29,130       (10,341 )     (1,370 )     32,751       (2,113 )     (24,179 )     (2,957 )     (11,711 )     (27,136 )
 
                                                                                       
Income (loss) from disc. operations, net of tax(1)
    12,269       (258 )     (536 )                                                
 
                                                                 
 
                                                                                       
Net income (loss)
  $ 30,830     $ 42,778     $ 28,594     $ (10,341 )   $ (1,370 )   $ 32,751     $ (2,113 )   $ (24,179 )   $ (2,957 )   $ (11,711 )   $ (27,136 )
 
                                                                 
 
                                                                                       
Basic earnings (loss) per share:
                                                                                       
Income (loss) from continuing operations
  $ 0.15     $ 0.36     $ 0.25     $ (0.09 )   $ (0.01 )   $ 0.27     $ (0.02 )   $ (0.20 )   $ (0.02 )   $ (0.10 )   $ (0.23 )
 
                                                                 
Net income (loss)
  $ 0.26     $ 0.36     $ 0.24     $ (0.09 )   $ (0.01 )   $ 0.27     $ (0.02 )   $ (0.20 )   $ (0.02 )   $ (0.10 )   $ (0.23 )
 
                                                                 
 
                                                                                       
Diluted earnings (loss) per share:
                                                                                       
Income (loss) from continuing operations
  $ 0.15     $ 0.36     $ 0.24     $ (0.09 )   $ (0.01 )   $ 0.27     $ (0.02 )   $ (0.20 )   $ (0.02 )   $ (0.10 )   $ (0.23 )
 
                                                                 
Net income (loss)
  $ 0.25     $ 0.35     $ 0.24     $ (0.09 )   $ (0.01 )   $ 0.27     $ (0.02 )   $ (0.20 )   $ (0.02 )   $ (0.10 )   $ (0.23 )
 
                                                                 
 
                                                                                       
Weighted avg. shares outstanding:
                                                                                       
Basic shares
    120,885       120,057       118,601       118,855       119,274       119,473       119,575       120,032       120,701       119,066       120,367  
Diluted shares
    121,541       120,722       119,380       118,855       119,274       121,676       119,575       120,032       120,701       119,066       120,367  
 
                                                                                       
Global employees (ones)
    5,396       5,669       6,961       6,295       5,999       5,779       5,687       5,518       5,546       5,999       5,546  
Annualized revenue per average employee
  $ 268.4     $ 240.2     $ 184.1     $ 153.5     $ 145.1     $ 145.7     $ 148.7     $ 153.7     $ 155.4     $ 149.5     $ 154.6  
 
                                                                                       
Net Bookings
    306,259       279,989       289,650       186,899       175,468       185,920       258,620       219,054       208,202       362,367       427,256  
     
(1)  
- Gain from discontinued operations, net of tax in the second quarter of 2008 includes tax benefits of $29.4 million and long-lived asset write-offs of $13.1 million related to the wind-down of the Tickle business included in our Internet Advertising & Fees business segment.

 

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Monster Worldwide, Inc.
Trailing Twelve Months Statistics — Statements of Operations
(unaudited, in thousands, except per share amounts)
                                                                         
Summary P&L Information   Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010  
 
                                                                       
Monster Careers
  $ 1,271,636     $ 1,272,246     $ 1,213,300     $ 1,099,339     $ 968,783     $ 851,118     $ 772,596     $ 732,329     $ 725,740  
Internet Advertising & Fees
    127,119       128,556       130,327       132,219       131,538       131,547       132,546       133,715       132,164  
 
                                                     
Revenue
    1,398,755       1,400,802       1,343,627       1,231,558       1,100,321       982,665       905,142       866,044       857,904  
 
                                                                       
Salary and related
    514,092       519,031       514,576       491,498       467,716       441,564       423,828       429,974       430,499  
Office and general
    237,793       237,296       224,679       208,762       189,925       175,223       162,755       162,506       160,803  
Marketing and promotion
    329,232       315,332       291,198       253,035       229,012       217,085       209,661       195,551       197,523  
Provision for (Reversal of) legal settlements, net
    40,100       40,100       40,100       40,100             (6,850 )     (6,850 )     (6,850 )     (6,850 )
Restructuring and other special charges
    26,256       18,693       16,407       20,488       22,853       19,261       16,105       5,097        
Depreciation expense
    44,130       47,058       51,230       54,196       56,345       58,239       59,117       59,869       59,172  
Amortization of restricted stock and RSU Plan
    20,051       24,617       28,040       32,983       34,448       36,935       39,306       39,281       40,209  
Non-cash stock option expense
    518       579       652       724       646       638       615       559       588  
Amortization of intangibles
    5,554       5,491       6,790       7,955       9,147       9,962       9,416       8,948       8,392  
 
                                                     
Operating expenses
    1,217,726       1,208,197       1,173,672       1,109,741       1,010,092       952,057       913,953       894,935       890,336  
 
                                                                       
Operating income
    181,029       192,605       169,955       121,817       90,229       30,608       (8,811 )     (28,891 )     (32,432 )
Interest and other, net
    23,746       22,522       17,283       11,103       8,122       2,791       (5,828 )     (7,684 )     (6,859 )
 
                                                     
Income from continuing operations, pre-tax
    204,775       215,127       187,238       132,920       98,351       33,399       (14,639 )     (36,575 )     (39,291 )
 
                                                                       
Income taxes
    73,080       75,340       64,910       45,278       33,042       (20,583 )     (37,883 )     (45,573 )     (46,319 )
Losses in equity interests, net
    (9,326 )     (8,338 )     (7,839 )     (7,256 )     (4,854 )     (3,812 )     (4,317 )     (3,909 )     (3,526 )
 
                                                     
Income from continuing operations
    122,369       131,449       114,489       80,386       60,455       50,170       18,927       5,089       3,502  
 
                                                                       
Income (loss) from disc. operations, net of tax
    9,353       9,750       10,304       11,475       (794 )     (536 )                  
 
                                                     
 
                                                                       
Net income
  $ 131,722     $ 141,199     $ 124,793     $ 91,861     $ 59,661     $ 49,634     $ 18,927     $ 5,089     $ 3,502  
 
                                                     
 
                                                                       
Basic earnings per share:
                                                                       
Income from continuing operations
  $ 0.98     $ 1.07     $ 0.95     $ 0.67     $ 0.51     $ 0.42     $ 0.16     $ 0.04     $ 0.03  
 
                                                     
Net income
  $ 1.06     $ 1.15     $ 1.04     $ 0.77     $ 0.50     $ 0.42     $ 0.16     $ 0.04     $ 0.03  
 
                                                     
 
                                                                       
Diluted earnings per share:
                                                                       
Income from continuing operations
  $ 0.97     $ 1.07     $ 0.94     $ 0.67     $ 0.51     $ 0.42     $ 0.16     $ 0.04     $ 0.03  
 
                                                     
Net income
  $ 1.05     $ 1.15     $ 1.03     $ 0.76     $ 0.50     $ 0.41     $ 0.16     $ 0.04     $ 0.03  
 
                                                     
 
                                                                       
Weighted avg. shares outstanding:
                                                                       
Basic shares
    124,650       122,289       120,557       119,600       119,197       119,051       119,294       119,588       119,945  
Diluted shares
    125,584       123,075       121,167       120,125       119,558       119,796       119,845       120,139       120,496  

 

7


 

Monster Worldwide, Inc.
Statements of Cash Flows
(unaudited, in thousands)
                                                                                         
    Trended Quarterly Data     Year to Date Data  
    Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010     6M 2009     6M 2010  
Cash flows provided by (used for) operating activities:
                                                                                       
Net income (loss)
  $ 30,830     $ 42,778     $ 28,594     $ (10,341 )   $ (1,370 )   $ 32,751     $ (2,113 )   $ (24,179 )   $ (2,957 )   $ (11,711 )   $ (27,136 )
 
                                                                 
Adjustments to reconcile net income (loss) to cash provided by operating activities:
                                                                                       
Loss (income) from discontinued operations, net of tax
    (12,269 )     258       536                                                  
Depreciation and amortization
    13,604       14,710       17,517       16,320       16,945       17,419       17,849       16,604       15,692       33,265       32,296  
Provision for (Reversal of) legal settlements, net
    40,100                               (6,850 )                              
Receipts and (payments) for legal settlements, net
          5,700       (35,587 )                                                
Provision for doubtful accounts
    3,207       4,403       5,057       4,072       2,812       1,682       1,588       1,149       398       6,884       1,547  
Non-cash compensation
    8,533       7,602       7,223       10,348       9,920       10,081       9,572       10,267       10,877       20,268       21,144  
Deferred income taxes
    (12,263 )     12,440       14,572       (2,488 )     (3,933 )     12,160       (4,550 )     (14,713 )     (2,872 )     (6,421 )     (17,585 )
Non-cash restructuring write-offs, accelerated amortization, and other
    436       924       924       3,690       1,051       3       35             144       4,741       144  
Loss in equity interests
    3,592       2,086       339       1,239       1,190       1,044       844       831       807       2,429       1,638  
Losses (gains) on auction rate securities
                                        4,181       (200 )     (1,904 )           (2,104 )
Changes in assets and liabilities, net of acquisitions:
                                                                                       
Accounts receivable
    44,812       49,231       (19,371 )     72,347       47,892       7,284       (47,061 )     17,631       16,930       120,239       34,561  
Prepaid and other
    18,073       2,522       1,548       3,246       13,615       (16,005 )     (3,525 )     1,589       (2,201 )     16,861       (612 )
Deferred revenue
    (51,465 )     (58,644 )     (5,732 )     (63,383 )     (61,153 )     (28,152 )     41,054       4,668       (19,725 )     (124,536 )     (15,057 )
Accounts payable, accrued expenses and other liabilities
    (13,308 )     8,673       (27,790 )     (21,237 )     (40,657 )     (19,574 )     14,883       22,569       (8,491 )     (61,894 )     14,078  
Net cash (used for) provided by operating activities of discontinued operations
    (2,569 )     (962 )     (2,758 )     (77 )     77                                      
 
                                                                 
Total adjustments
    40,483       48,943       (43,522 )     24,077       (12,241 )     (20,908 )     34,870       60,395       9,655       11,836       70,050  
 
                                                                 
Net cash provided by (used for) operating activities
    71,313       91,721       (14,928 )     13,736       (13,611 )     11,843       32,757       36,216       6,698       125       42,914  
 
                                                                 
 
                                                                                       
Cash flows (used for) provided by investing activities:
                                                                                       
Capital expenditures
    (29,654 )     (21,011 )     (22,403 )     (14,922 )     (11,457 )     (12,285 )     (10,013 )     (8,536 )     (11,939 )     (26,379 )     (20,475 )
Purchase of marketable securities
    (7,633 )     (25,265 )     (1,785 )     (992 )     (6,484 )           (1,109 )                 (7,476 )      
Sale and maturities of marketable securities and other
    21,852       66,000       36,981       1,425       1,892             67,660       3,414       11,120       3,317       14,534  
Payments for acquisitions and intangible assets, net of cash acquired
          (64,628 )     (166,641 )                 (300 )                              
Dividends received from unconsolidated investee
    1,011                         763                   220             763       220  
Cash funded to equity investee
                (1,402 )     (1,428 )     (1,886 )     (1,639 )     (1,346 )     (1,345 )     (1,555 )     (3,314 )     (2,900 )
 
                                                                 
Net cash provided by (used for) investing activities
    (14,424 )     (44,904 )     (155,250 )     (15,917 )     (17,172 )     (14,224 )     55,192       (6,247 )     (2,374 )     (33,089 )     (8,621 )
 
                                                                 
 
                                                                                       
Cash flows (used for) provided by financing activities:
                                                                                       
Proceeds from borrowings on credit facilities short-term
          247,000       4,971       199,203                                     199,203        
Payments on borrowings on credit facilities short-term
                (197,893 )           (157,173 )     (99,023 )                       (157,173 )      
Repurchase of common stock and tax withholdings on net share settlements of restriced stock awards and units
    (6,858 )     (41,806 )     (32 )     (1,907 )     (528 )     (1,869 )     (267 )     (6,359 )     (2,856 )     (2,435 )     (9,215 )
Net borrowings (payments) under capital lease obligations and other debt
    (67 )     (9 )     (15 )     (5 )     (1 )     50,006                         (6 )      
Proceeds from the exercise of employee stock options
    628       110       305       9             46       12       27       39       9       66  
Excess tax benefits from equity compensation plans
    59       861       22       4             8       67                   4        
 
                                                                 
Net cash (used for) provided by financing activities
    (6,238 )     206,156       (192,642 )     197,304       (157,702 )     (50,832 )     (188 )     (6,332 )     (2,817 )     39,602       (9,149 )
 
                                                                 
 
                                                                                       
Effects of exchange rates on cash
    (1,933 )     (13,303 )     (20,044 )     (6,327 )     13,681       4,438       209       (7,932 )     (3,930 )     7,354       (11,862 )
 
                                                                                       
Net increase (decrease) in cash and cash equivalents
    48,718       239,670       (382,864 )     188,796       (174,804 )     (48,775 )     87,970       15,705       (2,423 )     13,992       13,282  
Cash and cash equivalents, beginning of period
    316,736       365,454       605,124       222,260       411,056       236,252       187,477       275,447       291,152       222,260       275,447  
 
                                                                 
Cash and cash equivalents, end of period
  $ 365,454     $ 605,124     $ 222,260     $ 411,056     $ 236,252     $ 187,477     $ 275,447     $ 291,152     $ 288,729     $ 236,252     $ 288,729  
 
                                                                 
 
                                                                                       
Non — GAAP Free cash flow (1):
                                                                                       
Net cash provided by (used for) operating activities
  $ 71,313     $ 91,721     $ (14,928 )   $ 13,736     $ (13,611 )   $ 11,843     $ 32,757     $ 36,216     $ 6,698     $ 125     $ 42,914  
Less: Capital expenditures
    (29,654 )     (21,011 )     (22,403 )     (14,922 )     (11,457 )     (12,285 )     (10,013 )     (8,536 )     (11,939 )     (26,379 )     (20,475 )
 
                                                                 
Free cash flow
  $ 41,659     $ 70,710     $ (37,331 )   $ (1,186 )   $ (25,068 )   $ (442 )   $ 22,744     $ 27,680     $ (5,241 )   $ (26,254 )   $ 22,439  
 
                                                                 
     
(1)  
- See notes to financial supplement for further explanation of non-GAAP measures.

 

8


 

Monster Worldwide, Inc.
Consolidated Condensed Balance Sheets
(unaudited, in thousands, except selected financial ratios)
                                                                         
    Trended Quarterly Data  
    Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010  
ASSETS
                                                                       
Current assets:
                                                                       
Cash and cash equivalents
  $ 365,454     $ 605,124     $ 222,260     $ 411,056     $ 236,252     $ 187,477     $ 275,447     $ 291,152     $ 288,729  
Marketable securities, current
    68,579       33,823       1,425       992       14,533       20,482       9,259       8,150       8,300  
Accounts Receivable, net
    410,427       358,214       376,720       294,449       249,004       243,033       287,698       263,589       242,199  
Prepaid and other
    121,093       111,754       82,416       82,710       73,866       87,058       73,089       70,229       68,487  
 
                                                     
Total current assets
    965,553       1,108,915       682,821       789,207       573,655       538,050       645,493       633,120       607,715  
 
                                                     
 
                                                                       
Marketable securities, non-current
    99,330       93,728       90,347       89,196       81,272       75,953       15,410       13,110       4,094  
Property and equipment, net
    149,048       152,352       161,282       154,559       153,942       150,963       143,727       136,487       136,821  
Goodwill
    690,161       707,164       894,546       886,970       897,561       930,231       925,758       917,187       892,008  
Intangibles, net
    32,696       36,694       52,335       49,533       47,420       45,893       43,863       41,173       39,029  
Investment in unconsolidated affiliates
    44,446       42,360       1,843       1,315       517       525       546       330       640  
Other assets
    70,475       61,761       33,416       33,314       35,100       32,617       52,393       50,884       52,411  
 
                                                     
Total assets
  $ 2,051,709     $ 2,202,974     $ 1,916,590     $ 2,004,094     $ 1,789,467     $ 1,774,232     $ 1,827,190     $ 1,792,291     $ 1,732,718  
 
                                                     
 
                                                                       
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                                                       
 
                                                                       
Current liabilities:
                                                                       
Accounts payable, accrued expenses and other
  $ 321,077     $ 328,546     $ 254,407     $ 225,630     $ 192,266     $ 204,402     $ 196,248     $ 217,671     $ 203,227  
Deferred revenue
    470,408       411,764       414,312       344,905       289,818       265,573       305,898       304,993       279,809  
Borrowings on credit facility short-term
          247,000       54,971       254,174       97,000                          
Current portion of long-term debt
    142       26       18       27       23       5,017       5,010       5,003       5,000  
 
                                                     
Total current liabilities
    791,627       987,336       723,708       824,736       579,107       474,992       507,156       527,667       488,036  
 
                                                     
 
                                                                       
Non-current income taxes payable
    119,360       115,318       119,951       123,385       125,991       82,963       87,343       89,101       90,813  
Long-term debt, less current portion
                                  45,000       45,000       45,000       45,000  
Other liabilities
    17,449       23,699       25,658       29,838       30,971       36,394       54,527       38,288       38,325  
Non-current liabilities of discontinued operations
                                                     
 
                                                     
Total liabilities
    928,436       1,126,353       869,317       977,959       736,069       639,349       694,026       700,056       662,174  
 
                                                     
 
                                                                       
Common stock and class B common stock
    134       134       133       134       134       134       134       135       135  
Additional paid-in capital
    1,397,281       1,363,655       1,367,373       1,374,049       1,382,649       1,388,609       1,395,969       1,394,915       1,404,043  
Accumulated other comprehensive income
    143,264       87,460       25,801       8,327       28,360       71,133       64,167       48,470       20,608  
Accumulated deficit
    (417,406 )     (374,628 )     (346,034 )     (356,375 )     (357,745 )     (324,993 )     (327,106 )     (351,285 )     (354,242 )
 
                                                     
Total stockholders’ equity
    1,123,273       1,076,621       1,047,273       1,026,135       1,053,398       1,134,883       1,133,164       1,092,235       1,070,544  
 
                                                     
 
                                                                       
Total liabilities and stockholders’ equity
  $ 2,051,709     $ 2,202,974     $ 1,916,590     $ 2,004,094     $ 1,789,467     $ 1,774,232     $ 1,827,190     $ 1,792,291     $ 1,732,718  
 
                                                     
 
                                                                       
Selected Financial Ratios(1)
                                                                       
- Annualized return on equity
    11.1 %     15.6 %     10.8 %     -4.0 %     -0.5 %     12.0 %     -0.7 %     -8.7 %     -1.1 %
- Book value per share
  $ 9.30     $ 9.08     $ 8.83     $ 8.61     $ 8.83     $ 9.49     $ 9.47     $ 9.05     $ 8.87  
- Cash and marketable securities per share
  $ 4.42     $ 6.18     $ 2.65     $ 4.20     $ 2.78     $ 2.37     $ 2.51     $ 2.59     $ 2.49  
- Net cash and securities
  $ 533,095     $ 485,632     $ 259,033     $ 247,038     $ 235,034     $ 233,895     $ 250,106     $ 262,409     $ 251,123  
     
(1)  
- See notes to financial supplement for definitions and calculations of selected financial ratios.

 

9


 

Monster Worldwide, Inc.
Segment Information and Margin Analysis — Non-GAAP
(unaudited, in thousands)
                                                                                         
    Trended Quarterly Data     Year to Date Data  
    Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010     6M 2009     6M 2010  
Segment OIBDA(1):
                                                                                       
Careers — North America
  $ 67,636     $ 52,516     $ 44,138     $ 12,272     $ 22,066     $ 16,902     $ 12,988     $ 5,671     $ 26,825     $ 34,338     $ 32,496  
Careers — International
    40,361       39,060       23,833       10,749       8,386       8,154       9,024       (3,089 )     5,583       19,135       2,494  
 
                                                                 
Careers OIBDA(1)
    107,997       91,576       67,971       23,021       30,452       25,056       22,012       2,582       32,408       53,473       34,990  
 
                                                                                       
Internet Advertising & Fees OIBDA(1)
    7,508       7,425       6,293       6,364       7,939       8,247       7,573       4,764       4,056       14,303       8,820  
 
                                                                 
 
                                                                                       
Total Monster OIBDA(1)
  $ 115,505     $ 99,001     $ 74,264     $ 29,385     $ 38,391     $ 33,303     $ 29,585     $ 7,346     $ 36,464     $ 67,776     $ 43,810  
 
                                                                 
 
                                                                                       
Corporate expenses before D&A(1)
  $ (61,196 )   $ (13,192 )   $ (5,810 )   $ (13,843 )   $ (10,812 )   $ (2,851 )   $ 1,206     $ (15,349 )   $ (13,775 )   $ (24,655 )   $ (29,124 )
 
                                                                 
 
                                                                                       
Proforma operating income(1):
                                                                                       
Careers — North America
  $ 59,335     $ 43,771     $ 34,314     $ 3,100     $ 12,405     $ 9,519     $ 4,226     $ (491 )   $ 17,500     $ 15,505     $ 17,009  
Careers — International
    33,316       32,467       17,711       7,413       1,983       782       297       (11,269 )     (3,989 )     9,396       (15,258 )
 
                                                                 
Careers Proforma operating income(1)
    92,651       76,238       52,025       10,513       14,388       10,301       4,523       (11,760 )     13,511       24,901       1,751  
 
                                                                                       
Internet Advertising & Fees ProForma operating income (loss)(1)
    4,994       4,977       3,745       4,003       5,096       6,506       4,993       2,145       561       9,099       2,706  
 
                                                                 
 
                                                                                       
Total Monster Proforma income(1)
  $ 97,645     $ 81,215     $ 55,770     $ 14,516     $ 19,484     $ 16,807     $ 9,516     $ (9,615 )   $ 14,072     $ 34,000     $ 4,457  
 
                                                                 
 
                                                                                       
Corporate Proforma expenses(1)
  $ (19,308 )   $ (11,175 )   $ (14,294 )   $ (14,288 )   $ (11,756 )   $ (12,913 )   $ (9,567 )   $ (14,528 )   $ (12,223 )   $ (26,044 )   $ (26,751 )
 
                                                                 
 
                                                                                       
Segment operating income (loss):(1)
                                                                                       
Careers — North America
  $ 58,409     $ 43,120     $ 34,025     $ 828     $ 10,919     $ 6,057     $ 1,866     $ (3,772 )   $ 17,454     $ 11,747     $ 13,682  
Careers — International
    31,916       30,230       12,938       (671 )     (2,019 )     (2,181 )     (1,412 )     (13,412 )     (4,536 )     (2,690 )     (17,948 )
 
                                                                 
Careers operating income (loss)
    90,325       73,350       46,963       157       8,900       3,876       454       (17,184 )     12,918       9,057       (4,266 )
 
                                                                                       
Internet Advertising & Fees operating income (loss)
    4,656       4,726       3,715       3,557       4,926       5,091       4,540       1,236       546       8,483       1,782  
 
                                                                 
 
                                                                                       
Total Monster operating income (loss)
  $ 94,981     $ 78,076     $ 50,678     $ 3,714     $ 13,826     $ 8,967     $ 4,994     $ (15,948 )   $ 13,464     $ 17,540     $ (2,484 )
 
                                                                 
 
                                                                                       
Corporate expenses
  $ (63,732 )   $ (15,503 )   $ (7,889 )   $ (18,508 )   $ (14,165 )   $ (6,015 )   $ (1,624 )   $ (18,926 )   $ (17,344 )   $ (32,673 )   $ (36,270 )
 
                                                                 
 
                                                                                       
Margin Analysis:
                                                                                       
 
                                                                                       
Careers — North America OIBDA margin
    41.2 %     33.8 %     32.7 %     10.3 %     21.7 %     17.8 %     14.3 %     5.8 %     27.7 %     15.5 %     16.8 %
Careers — North America Proforma operating margin
    36.1 %     28.2 %     25.4 %     2.6 %     12.2 %     10.0 %     4.6 %     -0.5 %     18.1 %     7.0 %     8.8 %
Careers — North America operating margin
    35.6 %     27.8 %     25.2 %     0.7 %     10.7 %     6.4 %     2.1 %     -3.9 %     18.0 %     5.3 %     7.1 %
 
                                                                                       
Careers — International OIBDA margin
    25.8 %     27.4 %     19.4 %     10.4 %     9.5 %     9.6 %     10.2 %     -3.6 %     6.4 %     10.0 %     1.4 %
Careers — International Proforma operating margin
    21.3 %     22.8 %     14.2 %     7.1 %     2.2 %     0.9 %     0.3 %     -13.2 %     -4.6 %     4.8 %     -8.8 %
Careers — International operating margin
    20.4 %     21.2 %     10.5 %     -0.6 %     -2.3 %     -2.6 %     -1.6 %     -15.7 %     -5.2 %     -1.4 %     -10.4 %
 
                                                                                       
Careers OIBDA margin
    33.6 %     30.8 %     26.4 %     10.3 %     16.0 %     13.9 %     12.3 %     1.4 %     17.6 %     12.9 %     9.5 %
Careers Proforma operating margin
    28.9 %     25.6 %     20.0 %     4.7 %     7.5 %     5.7 %     2.5 %     -6.4 %     7.4 %     6.0 %     0.5 %
Careers operating margin
    28.1 %     24.6 %     18.2 %     0.1 %     4.7 %     2.2 %     0.3 %     -9.4 %     7.0 %     2.2 %     -1.2 %
 
                                                                                       
Internet Advertising & Fees OIBDA margin
    22.5 %     21.5 %     19.2 %     20.2 %     24.3 %     23.8 %     22.4 %     14.6 %     13.0 %     22.3 %     13.8 %
Internet Advertising & Fees Proforma operating margin
    15.0 %     14.4 %     11.4 %     12.7 %     15.6 %     18.8 %     14.8 %     6.6 %     1.8 %     14.2 %     4.2 %
Internet Advertising & Fees operating margin
    14.0 %     13.7 %     11.3 %     11.3 %     15.1 %     14.7 %     13.5 %     3.8 %     1.8 %     13.2 %     2.8 %
     
(1)  
- See notes to financial supplement for further explanation of non-GAAP measures.

 

10


 

Monster Worldwide, Inc.
Statements of Operations
(unaudited)
                                                                                         
    Trended Quarterly Data     Year to Date Data  
Summary P&L Information   Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010     6M 2009     6M 2010  
 
                                                                                       
Monster Careers
    90.6 %     89.6 %     88.7 %     87.6 %     85.4 %     83.9 %     84.2 %     84.8 %     85.5 %     86.6 %     85.2 %
Internet Advertising & Fees
    9.4 %     10.4 %     11.3 %     12.4 %     14.6 %     16.1 %     15.8 %     15.2 %     14.5 %     13.4 %     14.8 %
 
                                                                 
Revenue
    100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %
 
                                                                                       
Salary and related
    35.9 %     38.8 %     42.4 %     44.0 %     46.4 %     47.9 %     49.5 %     54.9 %     48.4 %     45.2 %     51.7 %
Office and general
    17.4 %     17.2 %     15.2 %     18.0 %     19.2 %     19.8 %     14.8 %     21.2 %     19.2 %     18.6 %     20.2 %
Marketing and promotion
    19.5 %     17.4 %     18.1 %     29.0 %     20.2 %     21.3 %     21.2 %     27.7 %     21.8 %     24.8 %     24.8 %
Provision for (Reversal of) legal settlements, net
    11.3 %     0.0 %     0.0 %     0.0 %     0.0 %     -3.2 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %
Restructuring and other special charges
    0.8 %     1.1 %     1.1 %     4.3 %     2.3 %     0.0 %     0.0 %     0.0 %     0.0 %     3.4 %     0.0 %
Depreciation expense
    3.5 %     4.0 %     5.1 %     5.4 %     6.5 %     7.1 %     7.3 %     6.7 %     6.4 %     5.9 %     6.6 %
Amortization of restricted stock and RSU Plan
    2.4 %     2.2 %     2.4 %     4.0 %     4.4 %     4.6 %     4.4 %     4.7 %     5.0 %     4.2 %     4.9 %
Non-cash stock option expense
    0.1 %     0.0 %     0.1 %     0.1 %     0.0 %     0.1 %     0.1 %     0.1 %     0.1 %     0.1 %     0.1 %
Amortization of intangibles
    0.4 %     0.4 %     0.9 %     1.0 %     1.1 %     1.0 %     1.0 %     1.0 %     0.9 %     1.1 %     0.9 %
 
                                                                 
Operating expenses
    91.2 %     81.2 %     85.3 %     105.8 %     100.2 %     98.6 %     98.4 %     116.2 %     101.8 %     103.2 %     109.0 %
 
                                                                                       
Operating income (loss)
    8.8 %     18.8 %     14.7 %     -5.8 %     -0.2 %     1.4 %     1.6 %     -16.2 %     -1.8 %     -3.2 %     -9.0 %
Interest and other, net
    0.9 %     1.6 %     0.5 %     0.5 %     0.0 %     0.0 %     -3.3 %     -0.3 %     0.4 %     0.3 %     0.1 %
 
                                                                 
Income (loss) from continuing operations, pre-tax
    9.7 %     20.4 %     15.3 %     -5.3 %     -0.1 %     1.4 %     -1.7 %     -16.5 %     -1.4 %     -2.9 %     -9.0 %
 
                                                                                       
Income taxes (benefit from)
    3.4 %     6.8 %     5.1 %     -1.8 %     0.0 %     -14.4 %     -1.1 %     -5.7 %     -0.4 %     -1.0 %     -3.0 %
Losses in equity interests, net
    -1.0 %     -0.6 %     -0.1 %     -0.5 %     -0.5 %     -0.5 %     -0.4 %     -0.4 %     -0.4 %     -0.5 %     -0.4 %
 
                                                                 
Income from continuing operations
    5.2 %     13.0 %     10.0 %     -4.1 %     -0.6 %     15.3 %     -1.0 %     -11.2 %     -1.4 %     -2.5 %     -6.3 %
 
                                                                                       
(Loss) income from disc. operations, net of tax
    3.5 %     -0.1 %     -0.2 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %
 
                                                                 
 
                                                                                       
Net income (loss)
    8.7 %     12.9 %     9.8 %     -4.1 %     -0.6 %     15.3 %     -1.0 %     -11.2 %     -1.4 %     -2.5 %     -6.3 %
 
                                                                 

 

11


 

Monster Worldwide, Inc.
Statements of Operations — Reconciliation of Non-GAAP Measures
(unaudited, in thousands,)
                                                                                         
    Trended Quarterly Data     Year to Date Data  
Summary P&L Information   Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010     6M 2009     6M 2010  
 
                                                                                       
Proforma revenue(1)
  $ 354,294     $ 332,189     $ 292,885     $ 255,397     $ 223,782     $ 215,085     $ 213,149     $ 215,305     $ 214,917     $ 479,179     $ 430,222  
 
                                                                                       
Deferred revenue related to acquisitions
                2,213       994       725       552                         1,719        
 
                                                                 
 
                                                                                       
Revenue
  $ 354,294     $ 332,189     $ 290,672     $ 254,403     $ 223,057     $ 214,533     $ 213,149     $ 215,305     $ 214,917     $ 477,460     $ 430,222  
 
                                                                 
 
                                                                                       
OIBDA(1)
  $ 54,309     $ 85,809     $ 68,454     $ 15,542     $ 27,579     $ 30,452     $ 30,791     $ (8,003 )   $ 22,689     $ 43,121     $ 14,686  
 
                                                                                       
Depreciation expense
    12,330       13,336       14,761       13,769       14,479       15,230       15,639       14,521       13,782       28,248       28,303  
Amortization of restricted stock and RSU Plan
    8,351       7,437       7,046       10,149       9,816       9,924       9,417       10,124       10,744       19,965       20,868  
Non-cash stock option expense
    182       165       178       199       104       157       155       143       133       303       276  
Restructuring non-cash compensation expense
                                                                 
Restructuring non-cash write-offs
    923       924       924       3,668       1,053                               4,721        
Amortization of intangibles
    1,274       1,374       2,756       2,551       2,466       2,189       2,210       2,083       1,910       5,017       3,993  
 
                                                                 
 
                                                                                       
Operating income (loss)
  $ 31,249     $ 62,573     $ 42,789     $ (14,794 )   $ (339 )   $ 2,952     $ 3,370     $ (34,874 )   $ (3,880 )   $ (15,133 )   $ (38,754 )
 
                                                                 
 
                                                                                       
Proforma operating income (loss)(1)
  $ 78,337     $ 70,040     $ 41,476     $ 228     $ 7,728     $ 3,894     $ (51 )   $ (24,143 )   $ 1,849     $ 7,956     $ (22,294 )
 
                                                                                       
Provision for (Reversal of) legal settlements, net
    40,100                               (6,850 )                              
Stock option investigation
    4,256       3,875       (6,682 )     3,020       2,245       (474 )     (8,037 )                 5,265        
Security breach
                                                                 
Non-Gaap severance
                                  5,907       2,866       6,360       494             6,854  
Non-Gaap facilities
                                  1,807       1,750                          
Non-Gaap Integration fees
                                              4,371       5,235             9,606  
Deferred revenue related to acquisitions
                2,213       994       725       552                         1,719        
Restructuring non-cash compensation expense
                                                                 
Restructuring program non-cash write-offs
    923       924       924       3,668       1,053                               4,721        
Restructuring expenses, less non-cash items
    1,809       2,668       2,232       7,340       4,044                               11,384        
 
                                                                 
 
                                                                                       
Operating income (loss)
  $ 31,249     $ 62,573     $ 42,789     $ (14,794 )   $ (339 )   $ 2,952     $ 3,370     $ (34,874 )   $ (3,880 )   $ (15,133 )   $ (38,754 )
 
                                                                 
     
(1)  
- See notes to financial supplement for further explanation of non-GAAP measures.

 

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