EX-99.2 3 c07395exv99w2.htm EXHIBIT 99.2 Exhibit 99.2
Exhibit 99.2
(MONSTER WORLDWIDE LOGO)
FINANCIAL SUPPLEMENT
September 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
Acquisition of the HotJobs Assets from Yahoo! Inc.
On August 24, 2010, pursuant to an Asset Purchase Agreement dated as of February 3, 2010 (the “Asset Purchase Agreement”) by and between Monster and Yahoo! Inc. (“Yahoo!”), Monster completed the acquisition of substantially all of the assets exclusive to Yahoo! HotJobs (the “HotJobs Assets”) from Yahoo! The purchase price for the HotJobs Assets was $225.0 million. We acquired the HotJobs Assets, among other objectives, to expand our business in the North American online recruitment market. The results of operations attributable to the HotJobs Assets have been included in our consolidated financial statements since August 24, 2010 and have contributed revenues of $5.9 million and break-even operating income during the three and nine months ended September 30, 2010, exclusive of acquisition and integration-related costs. Concurrent with the closing of the acquisition, Monster and Yahoo! entered into a three year commercial traffic agreement whereby Monster became Yahoo!’s exclusive provider of career and job content on the Yahoo! homepage in the United States and Canada.
The Company funded the purchase of the HotJobs Assets with available cash and proceeds from the Company’s revolving credit facility. In the three and nine months ended September 30, 2010, the Company incurred $8.6 million and $18.2 million, respectively, of acquisition related costs associated with the acquisition of the HotJobs Assets, which were expensed as incurred. These costs primarily relate to legal fees, professional fees and other costs associated with the acquisition. We expect to continue to incur significant acquisition and integration-related costs in 2010 and the first half of 2011 relating to the acquisition of the HotJobs Assets.
Deferred Revenue Related to Acquisitions
During the third quarter of 2010, we completed the acquisition of the HotJobs Assets. In accordance with existing purchase accounting rules, we are required to write-down to fair value a portion of the deferred revenue attributable to the HotJobs Assets. Consequently, in post-acquisition periods, we do not recognize the full amount of this deferred revenue. When measuring the performance of our business, however, we add back the revenue resulting from this fair value adjustment as we believe that the inclusion of this revenue provides useful information to our management, as well as to investors. For the three months ended September 30, 2010, the fair value adjustment to deferred revenue was $1.8 million.
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 nine months ended September 30, 2009, the fair value adjustment to ChinaHR’s deferred revenue was $0.6 million and $2.3 million, respectively.
Severance Charges
For the three months ended September 30, 2010 and 2009, the Company incurred $0.5 million and $5.9 million, respectively, of severance costs relating to targeted global headcount reductions. For the nine months ended September 30, 2010 and 2009, the Company incurred $7.4 million and $5.9 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.

 

2

 

Auction Rate Securities
In the nine months ended September 30, 2010, the Company received at par value 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
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 three months ended September 30, 2010, the Company received $0.3 million from RBC relating to auction rate securities which were redeemed by the issuer or sold by RBC for sums higher than the amounts RBC paid the Company to repurchase such auction rate securities. The Company’s receipt of $0.3 million from RBC resulted in a $0.3 million benefit recorded in interest and other, net, in the consolidated statement of operations for the three months ended September 30, 2010. In the nine months ended September 30, 2010, the Company received $1.4 million from RBC relating to auction rate securities which were redeemed by the issuer or sold by RBC for sums higher than the amounts RBC paid the Company to repurchase such auction rate securities. The Company’s receipt of $1.4 million from RBC resulted in a $1.4 million benefit recorded in interest and other, net, in the consolidated statement of operations for the nine months ended September 30, 2010.
Income Tax Reversal
Due to the expiration of statutes of limitations, in the third quarter of 2009 the Company reversed $31.7 million of accrued tax and related interest and penalties attributable to uncertain tax positions.
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 nine months ended September 30, 2009, we recorded $16.1 million of restructuring costs, primarily related to severance, fixed asset write-offs and office consolidations.

 

3

 

Reversal of Legal Settlements, net
In the third quarter of 2009, the Company reversed a previously recorded accrual of $6.9 million relating to settlement of all actions seeking recoveries from the Company as an outgrowth of the Company’s historical stock option grant practices.
Facility Charges
In the third quarter of 2009, the Company incurred $1.8 million for costs relating to exited facilities. These charges primarily related to certain organizational changes within the Company’s product and technology group designed to enable the Company to shift or add talent and skills to support the Company’s innovation strategy. The organizational changes included plans for a new Technology Center of Excellence and Innovation located in Cambridge, Massachusetts.
Professional Fees
For the three months and nine months ended September 30, 2009, we recorded a net benefit of $0.5 million and a charge of $4.8 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. 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 and the HotJobs Assets; realized and unrealized gains and losses on marketable securities; transaction costs related to the acquisition of the HotJobs Assets; 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, net gain or loss in equity interests, depreciation and amortization and non-cash compensation expense. The Company considers EBITDA to be an important indicator of its operational strength which the Company believes is useful to management and investors in evaluating its operating performance. EBITDA is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies.

 

4

 

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.
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   Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010     Q3 2010     9M 2009     9M 2010  
 
                                                                                        
Monster Careers
   $ 297,606     $ 257,931     $ 222,849     $ 190,397     $ 179,941     $ 179,409     $ 182,582     $ 183,808     $ 193,912     $ 593,187     $ 560,302  
Internet Advertising & Fees
     34,583       32,741       31,554       32,660       34,592       33,740       32,723       31,109       34,930       98,806       98,762  
 
                                                                  
Revenue
     332,189       290,672       254,403       223,057       214,533       213,149       215,305       214,917       228,842       691,993       659,064  
Salary and related
     128,904       123,211       112,037       103,564       102,752       105,475       118,183       104,089       105,764       318,353       328,036  
Office and general
     57,124       44,091       45,793       42,917       42,422       31,623       45,544       41,214       46,790       131,132       133,548  
Marketing and promotion
     57,684       52,684       73,691       44,953       45,757       45,260       59,581       46,925       51,661       164,401       158,167  
Reversal of legal settlements, net
     —       —       —       —       (6,850 )     —       —       —       —       (6,850 )     —  
Restructuring and other special charges
     3,592       3,156       11,008       5,097       —       —       —       —       —       16,105       —  
Depreciation expense
     13,336       14,761       13,769       14,479       15,230       15,639       14,521       13,782       13,975       43,478       42,278  
Amortization of restricted stock and RSU Plan
     7,437       7,046       10,149       9,816       9,924       9,417       10,124       10,744       13,398       29,889       34,266  
Non-cash stock option expense
     165       178       199       104       157       155       143       133       135       460       411  
Amortization of intangibles
     1,374       2,756       2,551       2,466       2,189       2,210       2,083       1,910       2,507       7,206       6,500  
 
                                                                  
Operating expenses
     269,616       247,883       269,197       223,396       211,581       209,779       250,179       218,797       234,230       704,174       703,206  
 
                                                                                        
Operating income (loss)
     62,573       42,789       (14,794 )     (339 )     2,952       3,370       (34,874 )     (3,880 )     (5,388 )     (12,181 )     (44,142 )
Interest and other, net
     5,283       1,560       1,203       76       (48 )     (7,059 )     (653 )     901       (1,286 )     1,231       (1,038 )
 
                                                                  
Income (loss) from cont. operations, pre-tax
     67,856       44,349       (13,591 )     (263 )     2,904       (3,689 )     (35,527 )     (2,979 )     (6,674 )     (10,950 )     (45,180 )
 
                                                                                        
Provison for (benefit from) Income taxes
     22,734       14,880       (4,489 )     (83 )     (30,891 )     (2,420 )     (12,179 )     (829 )     (1,823 )     (35,463 )     (14,831 )
Losses in equity interests, net
     (2,086 )     (339 )     (1,239 )     (1,190 )     (1,044 )     (844 )     (831 )     (807 )     (873 )     (3,473 )     (2,511 )
 
                                                                  
Income (loss) from continuing operations
     43,036       29,130       (10,341 )     (1,370 )     32,751       (2,113 )     (24,179 )     (2,957 )     (5,724 )     21,040       (32,860 )
 
                                                                                        
Loss from disc. operations, net of tax
     (258 )     (536 )     —       —       —       —       —       —       —       —       —  
 
                                                                  
 
                                                                                        
Net income (loss)
   $ 42,778     $ 28,594     $ (10,341 )   $ (1,370 )   $ 32,751     $ (2,113 )   $ (24,179 )   $ (2,957 )   $ (5,724 )   $ 21,040     $ (32,860 )
 
                                                                  
 
                                                                                        
Basic earnings (loss) per share:
                                                                                        
Income (loss) from continuing operations
   $ 0.36     $ 0.25     $ (0.09 )   $ (0.01 )   $ 0.27     $ (0.02 )   $ (0.20 )   $ (0.02 )   $ (0.05 )   $ 0.18     $ (0.27 )
 
                                                                  
Net income (loss)
   $ 0.36     $ 0.24     $ (0.09 )   $ (0.01 )   $ 0.27     $ (0.02 )   $ (0.20 )   $ (0.02 )   $ (0.05 )   $ 0.18     $ (0.27 )
 
                                                                  
 
                                                                                        
Diluted earnings (loss) per share:
                                                                                        
Income (loss) from continuing operations
   $ 0.36     $ 0.24     $ (0.09 )   $ (0.01 )   $ 0.27     $ (0.02 )   $ (0.20 )   $ (0.02 )   $ (0.05 )   $ 0.17     $ (0.27 )
 
                                                                  
Net income (loss)
   $ 0.35     $ 0.24     $ (0.09 )   $ (0.01 )   $ 0.27     $ (0.02 )   $ (0.20 )   $ (0.02 )   $ (0.05 )   $ 0.17     $ (0.27 )
 
                                                                  
 
                                                                                        
Weighted avg. shares outstanding:
                                                                                        
Basic shares
     120,057       118,601       118,855       119,274       119,473       119,575       120,032       120,701       120,796       119,206       120,509  
Diluted shares
     120,722       119,380       118,855       119,274       121,676       119,575       120,032       120,701       120,796       120,853       120,509  
 
                                                                                        
Global employees (ones)
     5,669       6,961       6,295       5,999       5,779       5,687       5,518       5,546       5,792       5,779       5,792  
Annualized revenue per average employee
   $ 240.2     $ 184.1     $ 153.5     $ 145.1     $ 145.7     $ 148.7     $ 153.7     $ 155.4     $ 161.5     $ 148.3     $ 156.9  
 
                                                                                        
Net Bookings
     279,989       289,650       186,899       175,468       185,920       258,620       219,054       208,202       235,025       548,287       662,281  

 

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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   Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010     Q3 2010  
 
                                                                        
Monster Careers
   $ 1,272,246     $ 1,213,300     $ 1,099,339     $ 968,783     $ 851,118     $ 772,596     $ 732,329     $ 725,740     $ 739,711  
Internet Advertising & Fees
     128,556       130,327       132,219       131,538       131,547       132,546       133,715       132,164       132,502  
 
                                                      
Revenue
     1,400,802       1,343,627       1,231,558       1,100,321       982,665       905,142       866,044       857,904       872,213  
 
                                                                        
Salary and related
     519,031       514,576       491,498       467,716       441,564       423,828       429,974       430,499       433,511  
Office and general
     237,296       224,679       208,762       189,925       175,223       162,755       162,506       160,803       165,171  
Marketing and promotion
     315,332       291,198       253,035       229,012       217,085       209,661       195,551       197,523       203,427  
Provision for (Reversal of) legal settlements, net
     40,100       40,100       40,100       —       (6,850 )     (6,850 )     (6,850 )     (6,850 )     —  
Restructuring and other special charges
     18,693       16,407       20,488       22,853       19,261       16,105       5,097       —       —  
Depreciation expense
     47,058       51,230       54,196       56,345       58,239       59,117       59,869       59,172       57,917  
Amortization of restricted stock and RSU Plan
     24,617       28,040       32,983       34,448       36,935       39,306       39,281       40,209       43,683  
Non-cash stock option expense
     579       652       724       646       638       615       559       588       566  
Amortization of intangibles
     5,491       6,790       7,955       9,147       9,962       9,416       8,948       8,392       8,710  
 
                                                      
Operating expenses
     1,208,197       1,173,672       1,109,741       1,010,092       952,057       913,953       894,935       890,336       912,985  
 
                                                                        
Operating income (loss)
     192,605       169,955       121,817       90,229       30,608       (8,811 )     (28,891 )     (32,432 )     (40,772 )
Interest and other, net
     22,522       17,283       11,103       8,122       2,791       (5,828 )     (7,684 )     (6,859 )     (8,097 )
 
                                                      
Income (loss) from continuing operations, pre-tax
     215,127       187,238       132,920       98,351       33,399       (14,639 )     (36,575 )     (39,291 )     (48,869 )
 
                                                                        
Provison for (benefit from) Income taxes
     75,340       64,910       45,278       33,042       (20,583 )     (37,883 )     (45,573 )     (46,319 )     (17,251 )
Losses in equity interests, net
     (8,338 )     (7,839 )     (7,256 )     (4,854 )     (3,812 )     (4,317 )     (3,909 )     (3,526 )     (3,355 )
 
                                                      
Income (loss) from continuing operations
     131,449       114,489       80,386       60,455       50,170       18,927       5,089       3,502       (34,973 )
 
                                                                        
Income (loss) from disc. operations, net of tax
     9,750       10,304       11,475       (794 )     (536 )     —       —       —       —  
 
                                                      
 
                                                                        
Net income (loss)
   $ 141,199     $ 124,793     $ 91,861     $ 59,661     $ 49,634     $ 18,927     $ 5,089     $ 3,502     $ (34,973 )
 
                                                      
 
                                                                        
Basic earnings (loss) per share:
                                                                        
Income (loss) from continuing operations
   $ 1.07     $ 0.95     $ 0.67     $ 0.51     $ 0.42     $ 0.16     $ 0.04     $ 0.03     $ (0.29 )
 
                                                      
Net income (loss)
   $ 1.15     $ 1.04     $ 0.77     $ 0.50     $ 0.42     $ 0.16     $ 0.04     $ 0.03     $ (0.29 )
 
                                                      
 
                                                                        
Diluted earnings (loss) per share:
                                                                        
Income (loss) from continuing operations
   $ 1.07     $ 0.94     $ 0.67     $ 0.51     $ 0.42     $ 0.16     $ 0.04     $ 0.03     $ (0.29 )
 
                                                      
Net income (loss)
   $ 1.15     $ 1.03     $ 0.76     $ 0.50     $ 0.41     $ 0.16     $ 0.04     $ 0.03     $ (0.29 )
 
                                                      
 
                                                                        
Weighted avg. shares outstanding:
                                                                        
Basic shares
     122,289       120,557       119,600       119,197       119,051       119,294       119,588       119,945       120,276  
Diluted shares
     123,075       121,167       120,125       119,558       119,796       119,845       120,139       120,496       120,276  

 

7

 

Monster Worldwide, Inc.
Statements of Cash Flows
(unaudited, in thousands, except per share amounts)
                                                                                         
    Trended Quarterly Data     Year to Date Data  
    Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010     Q3 2010     9M 2009     9M 2010  
Cash flows provided by (used for) operating activities:
                                                                                        
Net income (loss)
   $ 42,778     $ 28,594     $ (10,341 )   $ (1,370 )   $ 32,751     $ (2,113 )   $ (24,179 )   $ (2,957 )   $ (5,724 )   $ 21,040     $ (32,860 )
 
                                                                  
Adjustments to reconcile net income (loss) to cash provided by operating activities:
                                                                                        
Loss from discontinued operations, net of tax
     258       536       —       —       —       —       —       —       —       —       —  
Depreciation and amortization
     14,710       17,517       16,320       16,945       17,419       17,849       16,604       15,692       16,482       50,684       48,778  
Reversal of legal settlements, net
     —       —       —       —       (6,850 )     —       —       —       —       (6,850 )     —  
Receipts and (payments) for legal settlements, net
     5,700       (35,587 )     —       —       —       —       —       —       —       —       —  
Provision for doubtful accounts
     4,403       5,057       4,072       2,812       1,682       1,588       1,149       398       489       8,566       2,036  
Non-cash compensation
     7,602       7,223       10,348       9,920       10,081       9,572       10,267       10,877       13,533       30,349       34,677  
Deferred income taxes
     12,440       14,572       (2,488 )     (3,933 )     12,160       (4,550 )     (14,713 )     (2,872 )     (8,509 )     5,739       (26,094 )
Non-cash restructuring write-offs, accelerated amortization, and other
     924       924       3,690       1,051       3       35       —       144       19       4,744       163  
Loss in equity interests
     2,086       339       1,239       1,190       1,044       844       831       807       873       3,473       2,511  
Losses (gains) on auction rate securities
     —       —       —       —       —       4,181       (200 )     (1,904 )     (311 )     —       (2,415 )
Changes in assets and liabilities, net of acquisitions:
                                                                                        
Accounts receivable
     49,231       (19,371 )     72,347       47,892       7,284       (47,061 )     17,631       16,930       (21,282 )     127,523       13,279  
Prepaid and other
     2,522       1,548       3,246       13,615       (16,005 )     (3,525 )     1,589       (2,201 )     720       856       108  
Deferred revenue
     (58,644 )     (5,732 )     (63,383 )     (61,153 )     (28,152 )     41,054       4,668       (19,725 )     12,471       (152,688 )     (2,586 )
Accounts payable, accrued liabilities and other
     8,673       (27,790 )     (21,237 )     (40,657 )     (19,574 )     14,883       22,569       (8,491 )     9,849       (81,468 )     23,927  
Net cash (used for) provided by operating activities of discontinued operations
     (962 )     (2,758 )     (77 )     77       —       —       —       —       —       —       —  
 
                                                                  
Total adjustments
     48,943       (43,522 )     24,077       (12,241 )     (20,908 )     34,870       60,395       9,655       24,334       (9,072 )     94,384  
 
                                                                  
Net cash provided by (used for) operating activities
     91,721       (14,928 )     13,736       (13,611 )     11,843       32,757       36,216       6,698       18,610       11,968       61,524  
 
                                                                  
 
                                                                                        
Cash flows (used for) provided by investing activities:
                                                                                        
Capital expenditures
     (21,011 )     (22,403 )     (14,922 )     (11,457 )     (12,285 )     (10,013 )     (8,536 )     (11,939 )     (16,181 )     (38,664 )     (36,656 )
Purchase of marketable securities
     (25,265 )     (1,785 )     (992 )     (6,484 )     —       (1,109 )     —       —       —       (7,476 )     —  
Sale and maturities of marketable securities and other
     66,000       36,981       1,425       1,892       —       67,660       3,414       11,120       8,461       3,317       22,995  
Payments for acquisitions and intangible assets, net of cash acquired
     (64,628 )     (166,641 )     —       —       (300 )     —       —       —       (225,000 )     (300 )     (225,000 )
Dividends received from unconsolidated investee
     —       —       —       763       —       —       220       —       —       763       220  
Cash funded to equity investee
     —       (1,402 )     (1,428 )     (1,886 )     (1,639 )     (1,346 )     (1,345 )     (1,555 )     (1,524 )     (4,953 )     (4,424 )
 
                                                                  
Net cash (used for) provided by investing activities
     (44,904 )     (155,250 )     (15,917 )     (17,172 )     (14,224 )     55,192       (6,247 )     (2,374 )     (234,244 )     (47,313 )     (242,865 )
 
                                                                  
 
                                                                                        
Cash flows provided by (used for) financing activities:
                                                                                        
Proceeds from borrowings on revolving credit facility
     247,000       4,971       199,203       —       —       —       —       —       90,000       199,203       90,000  
Payments on borrowings on term loan and revolving credit facility
     —       (197,893 )     —       (157,173 )     (99,023 )     —       —       —       (5,000 )     (256,196 )     (5,000 )
Repurchase of common stock and tax withholdings on net share settlement of restricted stock awards and units
     (41,806 )     (32 )     (1,907 )     (528 )     (1,869 )     (267 )     (6,359 )     (2,856 )     (589 )     (4,304 )     (9,804 )
Net borrowings (payments) under capital lease obligations and other debt
     (9 )     (15 )     (5 )     (1 )     50,006       —       —       —       —       50,000       —  
Proceeds from the exercise of employee stock options
     110       305       9       —       46       12       27       39       —       55       66  
Excess tax benefits from equity compensation plans
     861       22       4       —       8       67       —       —       —       12       —  
 
                                                                  
Net cash provided by (used for) financing activities
     206,156       (192,642 )     197,304       (157,702 )     (50,832 )     (188 )     (6,332 )     (2,817 )     84,411       (11,230 )     75,262  
 
                                                                  
 
                                                                                        
Effects of exchange rates on cash
     (13,303 )     (20,044 )     (6,327 )     13,681       4,438       209       (7,932 )     (3,930 )     9,207       11,792       (2,655 )
 
                                                                                        
Net increase (decrease) in cash and cash equivalents
     239,670       (382,864 )     188,796       (174,804 )     (48,775 )     87,970       15,705       (2,423 )     (122,016 )     (34,783 )     (108,734 )
Cash and cash equivalents, beginning of period
     365,454       605,124       222,260       411,056       236,252       187,477       275,447       291,152       288,729       222,260       275,447  
 
                                                                  
Cash and cash equivalents, end of period
   $ 605,124     $ 222,260     $ 411,056     $ 236,252     $ 187,477     $ 275,447     $ 291,152     $ 288,729     $ 166,713     $ 187,477     $ 166,713  
 
                                                                  
 
                                                                                        
Non — GAAP Free cash flow (1):
                                                                                        
Net cash provided by (used for) operating activities
   $ 91,721     $ (14,928 )   $ 13,736     $ (13,611 )   $ 11,843     $ 32,757     $ 36,216     $ 6,698     $ 18,610     $ 11,968     $ 61,524  
Less: Capital expenditures
     (21,011 )     (22,403 )     (14,922 )     (11,457 )     (12,285 )     (10,013 )     (8,536 )     (11,939 )     (16,181 )     (38,664 )     (36,656 )
 
                                                                  
Free cash flow
   $ 70,710     $ (37,331 )   $ (1,186 )   $ (25,068 )   $ (442 )   $ 22,744     $ 27,680     $ (5,241 )   $ 2,429     $ (26,696 )   $ 24,868  
 
                                                                  
     
(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  
    Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010     Q3 2010  
ASSETS
                                                                        
 
                                                                        
Current assets:
                                                                        
Cash and cash equivalents
   $ 605,124     $ 222,260     $ 411,056     $ 236,252     $ 187,477     $ 275,447     $ 291,152     $ 288,729     $ 166,713  
Marketable securities, current
     33,823       1,425       992       14,533       20,482       9,259       8,150       8,300       —  
Accounts Receivable, net
     358,214       376,720       294,449       249,004       243,033       287,698       263,589       242,199       282,274  
Prepaid and other
     111,754       82,416       82,710       73,866       87,058       73,089       70,229       68,487       66,301  
 
                                                      
Total current assets
     1,108,915       682,821       789,207       573,655       538,050       645,493       633,120       607,715       515,288  
 
                                                      
 
                                                                        
Marketable securities, non-current
     93,728       90,347       89,196       81,272       75,953       15,410       13,110       4,094       4,094  
Property and equipment, net
     152,352       161,282       154,559       153,942       150,963       143,727       136,487       136,821       143,973  
Goodwill
     707,164       894,546       886,970       897,561       930,231       925,758       917,187       892,008       1,123,834  
Intangibles, net
     36,694       52,335       49,533       47,420       45,893       43,863       41,173       39,029       70,067  
Investment in unconsolidated affiliates
     42,360       1,843       1,315       517       525       546       330       640       745  
Other assets
     61,761       33,416       33,314       35,100       32,617       52,393       50,884       52,411       52,108  
 
                                                      
Total assets
   $ 2,202,974     $ 1,916,590     $ 2,004,094     $ 1,789,467     $ 1,774,232     $ 1,827,190     $ 1,792,291     $ 1,732,718     $ 1,910,109  
 
                                                      
 
                                                                        
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                                                        
 
                                                                        
Current liabilities:
                                                                        
Accounts payable, accrued expenses and other
   $ 328,546     $ 254,407     $ 225,630     $ 192,266     $ 204,402     $ 196,248     $ 217,671     $ 203,227     $ 213,562  
Deferred revenue
     411,764       414,312       344,905       289,818       265,573       305,898       304,993       279,809       312,952  
Borrowings on revolving credit facility
     247,000       54,971       254,174       97,000       —       —       —       —       90,000  
Current portion of long-term debt
     26       18       27       23       5,017       5,010       5,003       5,000       5,000  
 
                                                      
Total current liabilities
     987,336       723,708       824,736       579,107       474,992       507,156       527,667       488,036       621,514  
 
                                                      
 
                                                                        
Non-current income taxes payable
     115,318       119,951       123,385       125,991       82,963       87,343       89,101       90,813       95,464  
Long-term debt, less current portion
     —       —       —       —       45,000       45,000       45,000       45,000       40,000  
Other liabilities
     23,699       25,658       29,838       30,971       36,394       54,527       38,288       38,325       27,398  
 
                                                      
Total liabilities
     1,126,353       869,317       977,959       736,069       639,349       694,026       700,056       662,174       784,376  
 
                                                      
 
                                                                        
Common stock and class B common stock
     134       133       134       134       134       134       135       135       136  
Additional paid-in capital
     1,363,655       1,367,373       1,374,049       1,382,649       1,388,609       1,395,969       1,394,915       1,404,043       1,416,547  
Accumulated other comprehensive income
     87,460       25,801       8,327       28,360       71,133       64,167       48,470       20,608       69,016  
Accumulated deficit
     (374,628 )     (346,034 )     (356,375 )     (357,745 )     (324,993 )     (327,106 )     (351,285 )     (354,242 )     (359,966 )
 
                                                      
Total stockholders’ equity
     1,076,621       1,047,273       1,026,135       1,053,398       1,134,883       1,133,164       1,092,235       1,070,544       1,125,733  
 
                                                      
 
                                                                        
Total liabilities and stockholders’ equity
   $ 2,202,974     $ 1,916,590     $ 2,004,094     $ 1,789,467     $ 1,774,232     $ 1,827,190     $ 1,792,291     $ 1,732,718     $ 1,910,109  
 
                                                      
 
                                                                        
Selected Financial Ratios(1)
                                                                        
- Annualized return on equity
     15.6 %     10.8 %     -4.0 %     -0.5 %     12.0 %     -0.7 %     -8.7 %     -1.1 %     -2.1 %
- Book value per share
   $ 9.08     $ 8.83     $ 8.61     $ 8.83     $ 9.49     $ 9.47     $ 9.05     $ 8.87     $ 9.32  
- Cash and marketable securities per share
   $ 6.18     $ 2.65     $ 4.20     $ 2.78     $ 2.37     $ 2.51     $ 2.59     $ 2.49     $ 1.41  
- Net cash and securities
   $ 485,632     $ 259,033     $ 247,038     $ 235,034     $ 233,895     $ 250,106     $ 262,409     $ 251,123     $ 35,807  
     
(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  
    Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010     Q3 2010     9M 2009     9M 2010  
Segment OIBDA(1):
                                                                                        
Careers — North America
   $ 52,516     $ 44,138     $ 12,272     $ 22,066     $ 16,902     $ 12,988     $ 5,671     $ 26,825     $ 29,734     $ 51,240     $ 62,230  
Careers — International
     39,060       23,833       10,749       8,386       8,154       9,024       (3,089 )     5,583       5,170       27,289       7,664  
 
                                                                  
Careers OIBDA (1)
     91,576       67,971       23,021       30,452       25,056       22,012       2,582       32,408       34,904       78,529       69,894  
 
                                                                                        
Internet Advertising & Fees OIBDA(1)
     7,425       6,293       6,364       7,939       8,247       7,573       4,764       4,056       5,673       22,550       14,493  
 
                                                                  
 
                                                                                        
Total Monster OIBDA(1)
   $ 99,001     $ 74,264     $ 29,385     $ 38,391     $ 33,303     $ 29,585     $ 7,346     $ 36,464     $ 40,577     $ 101,079     $ 84,387  
 
                                                                  
 
                                                                                        
Corporate expenses before D&A(1)
   $ (13,192 )   $ (5,810 )   $ (13,843 )   $ (10,812 )   $ (2,851 )   $ 1,206     $ (15,349 )   $ (13,775 )   $ (15,950 )   $ (27,506 )   $ (45,074 )
 
                                                                  
 
                                                                                        
Proforma operating income(1):
                                                                                        
Careers — North America
   $ 43,771     $ 34,314     $ 3,100     $ 12,405     $ 9,519     $ 4,226     $ (491 )   $ 17,500     $ 20,744     $ 25,024     $ 37,753  
Careers — International
     32,467       17,711       7,413       1,983       782       297       (11,269 )     (3,989 )     (5,576 )     10,178       (20,834 )
 
                                                                  
Careers Proforma operating income(1)
     76,238       52,025       10,513       14,388       10,301       4,523       (11,760 )     13,511       15,168       35,202       16,919  
 
                                                                                        
Internet Advertising & Fees ProForma operating income(1)
     4,977       3,745       4,003       5,096       6,506       4,993       2,145       561       1,937       15,605       4,643  
 
                                                                  
 
                                                                                        
Total Monster Proforma income(1)
   $ 81,215     $ 55,770     $ 14,516     $ 19,484     $ 16,807     $ 9,516     $ (9,615 )   $ 14,072     $ 17,105     $ 50,807     $ 21,562  
 
                                                                  
 
                                                                                        
Corporate Proforma expenses(1)
   $ (11,175 )   $ (14,294 )   $ (14,288 )   $ (11,756 )   $ (12,913 )   $ (9,567 )   $ (14,528 )   $ (12,223 )   $ (11,554 )   $ (38,957 )   $ (38,305 )
 
                                                                  
 
                                                                                        
Segment operating income (loss)(1):
                                                                                        
Careers — North America
   $ 43,120     $ 34,025     $ 828     $ 10,919     $ 6,057     $ 1,866     $ (3,772 )   $ 17,454     $ 18,773     $ 17,804     $ 32,455  
Careers — International
     30,230       12,938       (671 )     (2,019 )     (2,181 )     (1,412 )     (13,412 )     (4,536 )     (5,882 )     (4,871 )     (23,830 )
 
                                                                  
Careers operating income (loss)
     73,350       46,963       157       8,900       3,876       454       (17,184 )     12,918       12,891       12,933       8,625  
 
                                                                                        
Internet Advertising & Fees operating income
     4,726       3,715       3,557       4,926       5,091       4,540       1,236       546       1,880       13,574       3,662  
 
                                                                  
 
                                                                                        
Total Monster operating income (loss)
   $ 78,076     $ 50,678     $ 3,714     $ 13,826     $ 8,967     $ 4,994     $ (15,948 )   $ 13,464     $ 14,771     $ 26,507     $ 12,287  
 
                                                                  
 
                                                                                        
Corporate expenses
   $ (15,503 )   $ (7,889 )   $ (18,508 )   $ (14,165 )   $ (6,015 )   $ (1,624 )   $ (18,926 )   $ (17,344 )   $ (20,159 )   $ (38,688 )   $ (56,429 )
 
                                                                  
 
                                                                                        
Margin Analysis:
                                                                                        
Careers — North America OIBDA margin
     33.8 %     32.7 %     10.3 %     21.7 %     17.8 %     14.3 %     5.8 %     27.7 %     27.7 %     16.2 %     20.7 %
Careers — North America Proforma operating margin
     28.2 %     25.4 %     2.6 %     12.2 %     10.0 %     4.6 %     -0.5 %     18.1 %     19.0 %     7.9 %     12.5 %
Careers — North America operating margin
     27.8 %     25.2 %     0.7 %     10.7 %     6.4 %     2.1 %     -3.9 %     18.0 %     17.5 %     5.6 %     10.8 %
 
                                                                                        
Careers — International OIBDA margin
     27.4 %     19.4 %     10.4 %     9.5 %     9.6 %     10.2 %     -3.6 %     6.4 %     6.0 %     9.9 %     3.0 %
Careers — International Proforma operating margin
     22.8 %     14.2 %     7.1 %     2.2 %     0.9 %     0.3 %     -13.2 %     -4.6 %     -6.4 %     3.6 %     -8.0 %
Careers — International operating margin
     21.2 %     10.5 %     -0.6 %     -2.3 %     -2.6 %     -1.6 %     -15.7 %     -5.2 %     -6.8 %     -1.8 %     -9.2 %
 
                                                                                        
Careers OIBDA margin
     30.8 %     26.4 %     10.3 %     16.0 %     13.9 %     12.3 %     1.4 %     17.6 %     18.0 %     13.2 %     12.5 %
Careers Proforma operating margin
     25.6 %     20.0 %     4.7 %     7.5 %     5.7 %     2.5 %     -6.4 %     7.4 %     7.8 %     5.9 %     3.0 %
Careers operating margin
     24.6 %     18.2 %     0.1 %     4.7 %     2.2 %     0.3 %     -9.4 %     7.0 %     6.6 %     2.2 %     1.5 %
 
                                                                                        
Internet Advertising & Fees OIBDA margin
     21.5 %     19.2 %     20.2 %     24.3 %     23.8 %     22.4 %     14.6 %     13.0 %     16.2 %     22.8 %     14.7 %
Internet Advertising & Fees Proforma operating margin
     14.4 %     11.4 %     12.7 %     15.6 %     18.8 %     14.8 %     6.6 %     1.8 %     5.5 %     15.8 %     4.7 %
Internet Advertising & Fees operating margin
     13.7 %     11.3 %     11.3 %     15.1 %     14.7 %     13.5 %     3.8 %     1.8 %     5.4 %     13.7 %     3.7 %
     
(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   Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010     Q3 2010     9M 2009     9M 2010  
 
                                                                                        
Monster Careers
     89.6 %     88.7 %     87.6 %     85.4 %     83.9 %     84.2 %     84.8 %     85.5 %     84.7 %     85.7 %     85.0 %
Internet Advertising & Fees
     10.4 %     11.3 %     12.4 %     14.6 %     16.1 %     15.8 %     15.2 %     14.5 %     15.3 %     14.3 %     15.0 %
 
                                                                  
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
     38.8 %     42.4 %     44.0 %     46.4 %     47.9 %     49.5 %     54.9 %     48.4 %     46.2 %     46.0 %     49.8 %
Office and general
     17.2 %     15.2 %     18.0 %     19.2 %     19.8 %     14.8 %     21.2 %     19.2 %     20.4 %     18.9 %     20.3 %
Marketing and promotion
     17.4 %     18.1 %     29.0 %     20.2 %     21.3 %     21.2 %     27.7 %     21.8 %     22.6 %     23.8 %     24.0 %
Reversal of legal settlements, net
     0.0 %     0.0 %     0.0 %     0.0 %     -3.2 %     0.0 %     0.0 %     0.0 %     0.0 %     -1.0 %     0.0 %
Restructuring and other special charges
     1.1 %     1.1 %     4.3 %     2.3 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %     2.3 %     0.0 %
Depreciation expense
     4.0 %     5.1 %     5.4 %     6.5 %     7.1 %     7.3 %     6.7 %     6.4 %     6.1 %     6.3 %     6.4 %
Amortization of restricted stock and RSU Plan
     2.2 %     2.4 %     4.0 %     4.4 %     4.6 %     4.4 %     4.7 %     5.0 %     5.9 %     4.3 %     5.2 %
Non-cash stock option expense
     0.0 %     0.1 %     0.1 %     0.0 %     0.1 %     0.1 %     0.1 %     0.1 %     0.1 %     0.1 %     0.1 %
Amortization of intangibles
     0.4 %     0.9 %     1.0 %     1.1 %     1.0 %     1.0 %     1.0 %     0.9 %     1.1 %     1.0 %     1.0 %
 
                                                                  
Operating expenses
     81.2 %     85.3 %     105.8 %     100.2 %     98.6 %     98.4 %     116.2 %     101.8 %     102.4 %     101.8 %     106.7 %
 
                                                                                        
Operating income (loss)
     18.8 %     14.7 %     -5.8 %     -0.2 %     1.4 %     1.6 %     -16.2 %     -1.8 %     -2.4 %     -1.8 %     -6.7 %
Interest and other, net
     1.6 %     0.5 %     0.5 %     0.0 %     0.0 %     -3.3 %     -0.3 %     0.4 %     -0.6 %     0.2 %     -0.2 %
 
                                                                  
Income (loss) from continuing operations, pre-tax
     20.4 %     15.3 %     -5.3 %     -0.1 %     1.4 %     -1.7 %     -16.5 %     -1.4 %     -2.9 %     -1.6 %     -6.9 %
 
                                                                                        
Income taxes (benefit from)
     6.8 %     5.1 %     -1.8 %     0.0 %     -14.4 %     -1.1 %     -5.7 %     -0.4 %     -0.8 %     -5.1 %     -2.3 %
Losses in equity interests, net
     -0.6 %     -0.1 %     -0.5 %     -0.5 %     -0.5 %     -0.4 %     -0.4 %     -0.4 %     -0.4 %     -0.5 %     -0.4 %
 
                                                                  
Income (loss) from continuing operations
     13.0 %     10.0 %     -4.1 %     -0.6 %     15.3 %     -1.0 %     -11.2 %     -1.4 %     -2.5 %     3.0 %     -5.0 %
 
                                                                                        
Loss from disc. operations, net of tax
     -0.1 %     -0.2 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %     0.0 %
 
                                                                  
 
                                                                                        
Net income (loss)
     12.9 %     9.8 %     -4.1 %     -0.6 %     15.3 %     -1.0 %     -11.2 %     -1.4 %     -2.5 %     3.0 %     -5.0 %
 
                                                                  

 

11

 

Monster Worldwide, Inc.
Statements of Operations — Reconciliation of Non-GAAP Measures
(unaudited, in thousands, except per share amounts)
                                                                                         
    Trended Quarterly Data     Year to Date Data  
Summary P&L Information   Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009     Q4 2009     Q1 2010     Q2 2010     Q3 2010     9M 2009     9M 2010  
 
                                                                                        
Proforma revenue(1)
   $ 332,189     $ 292,885     $ 255,397     $ 223,782     $ 215,085     $ 213,149     $ 215,305     $ 214,917     $ 230,630     $ 694,264     $ 660,852  
 
                                                                                        
Deferred revenue related to acquisitions
     —       2,213       994       725       552       —       —       —       1,788       2,271       1,788  
 
                                                                  
 
                                                                                        
Revenue
   $ 332,189     $ 290,672     $ 254,403     $ 223,057     $ 214,533     $ 213,149     $ 215,305     $ 214,917     $ 228,842     $ 691,993     $ 659,064  
 
                                                                  
 
                                                                                        
OIBDA(1)
   $ 85,809     $ 68,454     $ 15,542     $ 27,579     $ 30,452     $ 30,791     $ (8,003 )   $ 22,689     $ 24,627     $ 73,573     $ 39,313  
Depreciation expense
     13,336       14,761       13,769       14,479       15,230       15,639       14,521       13,782       13,975       43,478       42,278  
Amortization of restricted stock and RSU Plan
     7,437       7,046       10,149       9,816       9,924       9,417       10,124       10,744       13,398       29,889       34,266  
Non-cash stock option expense
     165       178       199       104       157       155       143       133       135       460       411  
Restructuring non-cash compensation expense
     —       —       —       —       —       —       —       —       —       —       —  
Restructuring non-cash write-offs
     924       924       3,668       1,053       —       —       —       —       —       4,721       —  
Amortization of intangibles
     1,374       2,756       2,551       2,466       2,189       2,210       2,083       1,910       2,507       7,206       6,500  
 
                                                                  
 
                                                                                        
Operating income (loss)
   $ 62,573     $ 42,789     $ (14,794 )   $ (339 )   $ 2,952     $ 3,370     $ (34,874 )   $ (3,880 )   $ (5,388 )   $ (12,181 )   $ (44,142 )
 
                                                                  
 
                                                                                        
Proforma operating income (loss)(1)
   $ 70,040     $ 41,476     $ 228     $ 7,728     $ 3,894     $ (51 )   $ (24,143 )   $ 1,849     $ 5,551     $ 11,850     $ (16,743 )
 
                                                                                        
Reversal of legal settlements, net
     —       —       —       —       (6,850 )     —       —       —       —       (6,850 )     —  
Stock option investigation
     3,875       (6,682 )     3,020       2,245       (474 )     (8,037 )     —       —       —       4,791       —  
Non-Gaap severance
     —       —       —       —       5,907       2,866       6,360       494       546       5,907       7,400  
Non-Gaap facilities
     —       —       —       —       1,807       1,750       —       —       —       1,807       —  
Non-Gaap Integration fees
     —       —       —       —       —       —       4,371       5,235       8,605       —       18,211  
Deferred revenue related to acquisitions
     —       2,213       994       725       552       —       —       —       1,788       2,271       1,788  
Restructuring program non-cash write-offs
     924       924       3,668       1,053       —       —       —       —       —       4,721       —  
Restructuring expenses, less non-cash items
     2,668       2,232       7,340       4,044       —       —       —       —       —       11,384       —  
 
                                                                  
 
                                                                                        
Operating income (loss)
   $ 62,573     $ 42,789     $ (14,794 )   $ (339 )   $ 2,952     $ 3,370     $ (34,874 )   $ (3,880 )   $ (5,388 )   $ (12,181 )   $ (44,142 )
 
                                                                  
     
(1)  
- See notes to financial supplement for further explanation of non-GAAP measures.

 

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