EX-99.2 3 a06-3312_2ex99d2.htm SUPPLEMENTAL FINANCIAL INFORMATION

Exhibit 99.2

 

FINANCIAL SUPPLEMENT

 

DECEMBER 31, 2005

 

Monster Worldwide is presenting historical financial information and other operating metrics to assist the investment community in evaluating our Company.  We suggest that the notes to this supplement are 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 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.

 

1


 

 

Notes to Financial Supplement

 

Presentation

 

Sale of Directional Marketing division

 

On June 1, 2005, we completed the sale of our Directional Marketing business, and accordingly, we have restated our historical quarterly and annual information to reflect the disposition.  The historical results of Directional Marketing have been reclassified as discontinued operations for all periods presented.  The financial results from continuing operations reflect the remaining results of our two business segments: Monster and Advertising & Communications.

 

Reclassifications

 

The sale of our Directional Marketing business did not include Directional Marketing operations in the United Kingdom.  Our Advertising & Communications management will continue to manage that business, and accordingly, those results have been reclassified into our Advertising & Communications segment.

 

Segment Presentation

 

We have reclassified our historical segment information to present a Corporate operating segment, that captures certain direct costs and allocated expenses.  As a result, historical operating expenses, operating income and operating margins associated with our Monster and Advertising & Communications divisions have been restated to reflect this new presentation. Results under our new segment presentation are presented herein to assist investors with evaluating financial performance on a comparable basis.

 

(1) Non-GAAP financial measures

 

The information included in this financial supplement contains non-GAAP financial measures.  A non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles (“GAAP”).  These measures are not in accordance with or an alternative for GAAP, and may be different from non-GAAP measures reported by other companies.  We believe that our presentation of non-GAAP measures provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations.  Included in this financial supplement are non-GAAP measures of operating expenses, operating income, income from continuing operations and income taxes, which are adjusted from results based on GAAP to exclude business reorganization, spin-off and other special charges and the related tax effects, in our statements of operations.  In addition, we use these measures for reviewing our financial results and for budgeting and planning purposes.

 

We have excluded business reorganization and spin-off charges in the 2003 quarters as a means to evaluate period-to-period comparisons.  Additionally, we have reconciled all non-GAAP measures to the nearest GAAP measure for all relevant periods.

 

2


 

Operating income before depreciation and amortization (“OIBDA”) is defined as income from operations before depreciation, amortization of intangible assets and amortization of stock based compensation. We consider OIBDA to be an important indicator of our operational strength. This measure eliminates the effects of depreciation, amortization of intangible assets and amortization of stock based compensation from period to period, which we believe is useful to management and investors in evaluating our operating performance.  OIBDA is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies.

 

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 our 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 our cash position for the period and should not be considered a substitute for such a measure.

 

(2) 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

 

Annualized return on capital employed

 

Annualized return on capital employed indicates how efficiently our capital is being used to generate revenue.  We calculate annualized return on capital employed as follows:

 

Annualized operating income / (Total Assets – Current liabilities + Current portion of debt)

 

Annualized operating income uses historical operating income as originally reported as its basis, unadjusted for any operations discontinued subsequently.  Using annualized operating income, as historically reported, most effectively displays the results of our capital allocation decisions and its ability to generate a return on those decisions.

 

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 + Marketable securities) / Total shares outstanding

 

3


 

Monster Worldwide, Inc.

Quarterly Statements of Operations - Non GAAP

(unaudited, in thousands, except per share amounts)

 

 

 

Trended Quarterly Data

 

Year to Date Data

 

Summary P&L Information

 

Q4 2003(1)

 

Q1 2004

 

Q2 2004

 

Q3 2004

 

Q4 2004

 

Q1 2005

 

Q2 2005

 

Q3 2005

 

Q4 2005

 

12M 2004

 

12M 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster

 

$

104,920

 

$

122,162

 

$

141,904

 

$

157,679

 

$

172,164

 

$

189,534

 

$

198,091

 

$

206,834

 

$

223,812

 

$

593,909

 

$

818,271

 

Advertising & Communications

 

37,279

 

39,048

 

39,424

 

40,940

 

42,810

 

42,519

 

40,888

 

42,454

 

42,785

 

162,222

 

168,646

 

Revenue

 

142,199

 

161,210

 

181,328

 

198,619

 

214,974

 

232,053

 

238,979

 

249,288

 

266,597

 

756,131

 

986,917

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salary and related

 

68,133

 

70,995

 

81,481

 

91,387

 

101,669

 

99,588

 

105,030

 

108,792

 

111,081

 

345,532

 

424,491

 

Office and general

 

26,100

 

28,684

 

30,230

 

32,734

 

34,299

 

37,144

 

37,641

 

36,646

 

37,818

 

125,947

 

149,249

 

Marketing and promotion

 

24,704

 

37,845

 

38,086

 

37,349

 

37,079

 

48,446

 

47,692

 

46,296

 

53,636

 

150,359

 

196,070

 

OIBDA (1)

 

23,262

 

23,686

 

31,531

 

37,149

 

41,927

 

46,875

 

48,616

 

57,554

 

64,062

 

134,293

 

217,107

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

 

6,012

 

6,257

 

6,731

 

6,903

 

5,893

 

6,884

 

6,947

 

7,079

 

7,352

 

25,784

 

28,262

 

Amortization of stock based compensation

 

498

 

474

 

872

 

737

 

639

 

968

 

534

 

540

 

693

 

2,722

 

2,735

 

Amortization of intangibles

 

426

 

605

 

1,241

 

3,069

 

2,329

 

2,354

 

2,274

 

2,206

 

2,859

 

7,244

 

9,693

 

Operating expenses

 

125,873

 

144,860

 

158,641

 

172,179

 

181,908

 

195,384

 

200,118

 

201,559

 

213,439

 

657,588

 

810,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

16,326

 

16,350

 

22,687

 

26,440

 

33,066

 

36,669

 

38,861

 

47,729

 

53,158

 

98,543

 

176,417

 

Interest and other, net(2)

 

(179

)

(286

)

(429

)

(227

)

(68

)

(67

)

1,043

 

715

 

4,538

 

(1,010

)

6,229

 

Income from cont. operations, pre-tax

 

16,147

 

16,064

 

22,258

 

26,213

 

32,998

 

36,602

 

39,904

 

48,444

 

57,696

 

97,533

 

182,646

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

4,709

 

5,335

 

7,428

 

8,532

 

11,343

 

13,068

 

13,967

 

16,955

 

20,196

 

32,638

 

64,186

 

Losses in equity interests

 

—

 

—

 

—

 

—

 

—

 

(209

)

(367

)

(641

)

(2,180

)

—

 

(3,397

)

Income from continuing operations

 

11,438

 

10,729

 

14,830

 

17,681

 

21,655

 

23,325

 

25,570

 

30,848

 

35,320

 

64,895

 

115,063

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reorganization charges, net of tax

 

(28

)

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Income (loss) from disc. operations, net of tax

 

722

 

1,676

 

1,410

 

2,307

 

2,816

 

(2,755

)

(5,994

)

(27

)

1,145

 

8,209

 

(7,631

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

12,132

 

$

12,405

 

$

16,240

 

$

19,988

 

$

24,471

 

$

20,570

 

$

19,576

 

$

30,821

 

$

36,465

 

$

73,104

 

$

107,432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.10

 

$

0.09

 

$

0.13

 

$

0.15

 

$

0.18

 

$

0.19

 

$

0.21

 

$

0.25

 

$

0.28

 

$

0.55

 

$

0.94

 

Net income

 

$

0.11

 

$

0.11

 

$

0.14

 

$

0.17

 

$

0.20

 

$

0.17

 

$

0.16

 

$

0.25

 

$

0.29

 

$

0.62

 

$

0.88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.10

 

$

0.09

 

$

0.12

 

$

0.15

 

$

0.18

 

$

0.19

 

$

0.21

 

$

0.25

 

$

0.28

 

$

0.54

 

$

0.92

 

Net income

 

$

0.11

 

$

0.11

 

$

0.14

 

$

0.17

 

$

0.20

 

$

0.17

 

$

0.16

 

$

0.25

 

$

0.29

 

$

0.61

 

$

0.86

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted avg. shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic shares

 

112,838

 

115,533

 

117,431

 

118,584

 

119,373

 

120,655

 

121,049

 

122,128

 

124,348

 

117,738

 

122,055

 

Diluted shares

 

115,514

 

118,030

 

120,192

 

120,351

 

122,353

 

123,577

 

123,181

 

124,757

 

127,418

 

120,075

 

125,038

 

 

(1) - See notes to financial supplement for further explanation of non-GAAP measures.

(2) - Interest and other, net includes a $2.1 million gain from the sale of a long-term investment in the fourth quarter of 2005.

 


 

Monster Worldwide, Inc.

Trailing Twelve Months Statistics - Statements of Operations - Non-GAAP

(unaudited, in thousands, except per share amounts)

 

 

 

Trended Quarterly Data

 

Summary P&L Information

 

Q1 2004(1)

 

Q2 2004(1)

 

Q3 2004(1)

 

Q4 2004

 

Q1 2005

 

Q2 2005

 

Q3 2005

 

Q4 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster

 

$

431,490

 

$

472,769

 

$

526,665

 

$

593,909

 

$

661,281

 

$

717,468

 

$

766,623

 

$

818,271

 

Advertising & Communications

 

145,533

 

150,624

 

156,691

 

162,222

 

165,693

 

167,157

 

168,671

 

168,646

 

Revenue

 

577,023

 

623,393

 

683,356

 

756,131

 

826,974

 

884,625

 

935,294

 

986,917

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salary and related

 

261,532

 

283,083

 

311,996

 

345,532

 

374,125

 

397,674

 

415,079

 

424,491

 

Office and general

 

108,920

 

111,786

 

117,748

 

125,947

 

134,407

 

141,818

 

145,730

 

149,249

 

Marketing and promotion

 

122,060

 

128,982

 

137,984

 

150,359

 

160,960

 

170,566

 

179,513

 

196,070

 

OIBDA(1)

 

84,511

 

99,542

 

115,628

 

134,293

 

157,482

 

174,567

 

194,972

 

217,107

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

 

22,018

 

24,716

 

25,903

 

25,784

 

26,411

 

26,627

 

26,803

 

28,262

 

Amortization of stock based compensation

 

2,798

 

2,712

 

2,581

 

2,722

 

3,216

 

2,878

 

2,681

 

2,735

 

Amortization of intangibles

 

1,933

 

2,736

 

5,341

 

7,244

 

8,993

 

10,026

 

9,163

 

9,693

 

Operating expenses

 

519,261

 

554,015

 

601,553

 

657,588

 

708,112

 

749,589

 

778,969

 

810,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

57,762

 

69,378

 

81,803

 

98,543

 

118,862

 

135,036

 

156,325

 

176,417

 

Interest and other, net

 

(554

)

(930

)

(1,121

)

(1,010

)

(791

)

681

 

1,623

 

6,229

 

Income from con. operations, pre-tax

 

57,208

 

68,448

 

80,682

 

97,533

 

118,071

 

135,717

 

157,948

 

182,646

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

19,016

 

22,104

 

26,004

 

32,638

 

40,371

 

46,910

 

55,333

 

64,186

 

Losses in equity interests

 

—

 

—

 

—

 

—

 

(209

)

(576

)

(1,217

)

(3,397

)

Income from continuing operations

 

38,192

 

46,344

 

54,678

 

64,895

 

77,491

 

88,231

 

101,398

 

115,063

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reorganization charges, net of tax

 

(182

)

(28

)

(28

)

—

 

—

 

—

 

—

 

—

 

Income (loss) from disc. operations, net of tax

 

8,397

 

6,684

 

6,115

 

8,209

 

3,778

 

(3,626

)

(5,960

)

(7,631

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

46,407

 

$

53,000

 

$

60,765

 

$

73,104

 

$

81,269

 

$

84,605

 

$

95,438

 

$

107,432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.34

 

$

0.40

 

$

0.47

 

$

0.55

 

$

0.65

 

$

0.74

 

$

0.84

 

$

0.94

 

Net income

 

$

0.41

 

$

0.46

 

$

0.52

 

$

0.62

 

$

0.68

 

$

0.71

 

$

0.79

 

$

0.88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.33

 

$

0.40

 

$

0.46

 

$

0.54

 

$

0.64

 

$

0.72

 

$

0.82

 

$

0.92

 

Net income

 

$

0.40

 

$

0.45

 

$

0.51

 

$

0.61

 

$

0.67

 

$

0.69

 

$

0.77

 

$

0.86

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic shares

 

113,143

 

114,536

 

116,097

 

117,738

 

119,011

 

119,915

 

120,801

 

122,055

 

Diluted shares

 

115,607

 

117,246

 

118,522

 

120,075

 

121,618

 

122,366

 

123,467

 

125,038

 

 

(1) - Trailing twelve months statistics include non-GAAP results in certain periods.   See notes to financial supplement for further explanation of non-GAAP measures.

 


 

Monster Worldwide, Inc.

Quarterly Statements of Cash Flows

(unaudited, in thousands)

 

 

 

Trended Quarterly Data

 

Year to Date Data

 

 

 

Q4 2003

 

Q1 2004

 

Q2 2004

 

Q3 2004

 

Q4 2004

 

Q1 2005

 

Q2 2005

 

Q3 2005

 

Q4 2005

 

12M 2004

 

12M 2005

 

Cash flows provided by (used for) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

12,132

 

$

12,405

 

$

16,240

 

$

19,988

 

$

24,471

 

$

20,570

 

$

19,576

 

$

30,821

 

$

36,465

 

$

73,104

 

$

107,432

 

Adjustments to reconcile net income to cash provided by (used for) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Income) loss from discontinued operations, net of tax

 

(722

)

(1,676

)

(1,410

)

(2,307

)

(2,816

)

2,755

 

5,994

 

27

 

(1,145

)

(8,209

)

7,631

 

Depreciation and amortization

 

6,438

 

6,862

 

7,972

 

9,972

 

8,222

 

9,238

 

9,221

 

9,285

 

10,211

 

33,028

 

37,955

 

Provision for doubtful accounts

 

(243

)

938

 

1,363

 

1,156

 

1,853

 

2,314

 

2,065

 

3,597

 

1,616

 

5,310

 

9,592

 

Tax benefit on stock option exercises

 

569

 

438

 

1,167

 

83

 

5,637

 

581

 

3,259

 

4,874

 

17,773

 

7,325

 

26,487

 

Non cash compensation

 

498

 

474

 

872

 

737

 

639

 

1,447

 

534

 

540

 

214

 

2,722

 

2,735

 

Common stock issued for matching contribution to 401(k) plan and other

 

973

 

2,145

 

1,329

 

202

 

604

 

741

 

1,264

 

835

 

973

 

4,280

 

3,813

 

Deferred income taxes

 

(501

)

8,887

 

6,381

 

3,799

 

4,017

 

8,853

 

756

 

1,625

 

5,274

 

23,084

 

16,508

 

Minority interests and other

 

(1,334

)

93

 

239

 

62

 

958

 

(280

)

793

 

915

 

2,196

 

1,352

 

3,624

 

Changes in assets and liabilities, net of business combinations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts Receivable

 

(16,177

)

(17,489

)

(13,808

)

(29,334

)

(20,663

)

4,177

 

(4,081

)

(7,463

)

(71,768

)

(81,294

)

(79,135

)

Prepaid and other

 

(15,342

)

(172

)

7,942

 

(51

)

(12,926

)

(3,060

)

(19,054

)

(1,359

)

9,109

 

(5,207

)

(14,364

)

Deferred revenue

 

27,845

 

7,963

 

3,689

 

16,528

 

34,940

 

6,728

 

3,613

 

2,351

 

79,950

 

63,120

 

92,642

 

Accounts payable, accrued expenses and other liabilities

 

(2,276

)

8,407

 

(4,617

)

14,180

 

(3,353

)

(2,018

)

37,149

 

21,081

 

(29,919

)

14,617

 

26,293

 

Net cash provided by (used for) operating activities of discontinued operations

 

21,519

 

(40,298

)

(9,999

)

7,091

 

2,509

 

(10,683

)

(8,167

)

(793

)

—

 

(40,697

)

(19,643

)

Total adjustments

 

21,247

 

(23,428

)

1,120

 

22,118

 

19,621

 

20,793

 

33,346

 

35,515

 

24,484

 

19,431

 

114,138

 

Net cash provided by (used for) operating activities

 

33,379

 

(11,023

)

17,360

 

42,106

 

44,092

 

41,363

 

52,922

 

66,336

 

60,949

 

92,535

 

221,570

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows provided by (used for) investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

(2,934

)

(2,927

)

(6,111

)

(4,788

)

(2,777

)

(7,935

)

(7,618

)

(8,543

)

(15,711

)

(16,603

)

(39,807

)

Purchase of marketable securities

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

(118,461

)

—

 

(118,461

)

Payments for acquisitions and intangible assets, net of cash acquired

 

(6,923

)

(25,931

)

(90,182

)

(1,813

)

(1,958

)

(42,477

)

(7,010

)

(2,265

)

(96,597

)

(119,884

)

(148,349

)

Investment in unconsolidated affiliate

 

—

 

—

 

—

 

—

 

—

 

(50,137

)

—

 

—

 

—

 

—

 

(50,137

)

Sale of long-term investment

 

—

 

—

 

—

 

—

 

—

 

1,878

 

—

 

125

 

2,713

 

—

 

4,716

 

Net proceeds from sale of business

 

—

 

—

 

—

 

—

 

6,810

 

(432

)

50,181

 

(658

)

1,000

 

6,810

 

50,091

 

Net cash used for investing activities of discontinued operations

 

(4,384

)

(4,916

)

(2,579

)

(1,375

)

(764

)

(698

)

(12

)

—

 

—

 

(9,634

)

(710

)

Net cash provided by (used for) investing activities

 

(14,241

)

(33,774

)

(98,872

)

(7,976

)

1,311

 

(99,801

)

35,541

 

(11,341

)

(227,056

)

(139,311

)

(302,657

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows provided by (used for) financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net borrowings (repayments) under line of credit and capital lease obligations

 

(886

)

(174

)

(196

)

(339

)

(763

)

(507

)

(1,328

)

(302

)

323

 

(1,472

)

(1,814

)

Proceeds from the issuance of common stock

 

—

 

55,663

 

10

 

—

 

—

 

—

 

—

 

—

 

—

 

55,673

 

—

 

Cash received from the exercise of employee stock options

 

4,433

 

2,714

 

8,051

 

978

 

34,068

 

3,653

 

10,733

 

23,323

 

57,317

 

45,811

 

95,026

 

Repurchase of common stock

 

—

 

—

 

—

 

—

 

—

 

—

 

(1,398

)

—

 

(7,906

)

—

 

(9,304

)

Net cash used for financing activities of discontinued operations

 

(32

)

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Net cash provided by (used for) financing activities

 

3,515

 

58,203

 

7,865

 

639

 

33,305

 

3,146

 

8,007

 

23,021

 

49,734

 

100,012

 

83,908

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effects of exchange rates on cash

 

1,487

 

227

 

(37

)

239

 

2,191

 

(1,894

)

(1,577

)

(125

)

(739

)

2,620

 

(4,335

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

24,140

 

13,633

 

(73,684

)

35,008

 

80,899

 

(57,186

)

94,893

 

77,891

 

(117,112

)

55,856

 

(1,514

)

Cash and cash equivalents, beginning of period

 

118,115

 

142,255

 

155,888

 

82,204

 

117,212

 

198,111

 

140,925

 

235,818

 

313,709

 

142,255

 

198,111

 

Cash and cash equivalents, end of period

 

$

142,255

 

$

155,888

 

$

82,204

 

$

117,212

 

$

198,111

 

$

140,925

 

$

235,818

 

$

313,709

 

$

196,597

 

$

198,111

 

$

196,597

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used for) operating activities

 

$

33,379

 

$

(11,023

)

$

17,360

 

$

42,106

 

$

44,092

 

$

41,363

 

$

52,922

 

$

66,336

 

$

60,949

 

$

92,535

 

$

221,570

 

Less: Capital expenditures

 

(2,934

)

(2,927

)

(6,111

)

(4,788

)

(2,777

)

(7,935

)

(7,618

)

(8,543

)

(15,711

)

(16,603

)

(39,807

)

Free cash flow

 

$

30,445

 

$

(13,950

)

$

11,249

 

$

37,318

 

$

41,315

 

$

33,428

 

$

45,304

 

$

57,793

 

$

45,238

 

$

75,932

 

$

181,763

 

 

(1) - See notes to financial supplement for further explanation of non-GAAP measures.

 


 

Monster Worldwide, Inc.

Consolidated Condensed Balance Sheets

(unaudited, in thousands)

 

 

 

Trended Quarterly Data

 

 

 

Q4 2003

 

Q1 2004

 

Q2 2004

 

Q3 2004

 

Q4 2004

 

Q1 2005

 

Q2 2005

 

Q3 2005

 

Q4 2005

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

142,255

 

$

155,888

 

$

82,204

 

$

117,212

 

$

198,111

 

$

140,925

 

$

235,818

 

$

313,709

 

$

196,597

 

Marketable securities

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

123,747

 

Accounts recievable, net

 

228,848

 

246,915

 

273,252

 

301,431

 

318,530

 

315,362

 

317,378

 

321,243

 

392,439

 

Prepaid and other

 

62,620

 

55,659

 

54,306

 

51,499

 

51,826

 

47,874

 

54,128

 

53,704

 

60,276

 

Current assets of discontinued operations

 

133,260

 

124,097

 

128,671

 

146,349

 

135,044

 

125,980

 

—

 

—

 

—

 

Total current assets

 

566,983

 

582,559

 

538,433

 

616,491

 

703,511

 

630,141

 

607,324

 

688,656

 

773,059

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

76,136

 

73,039

 

84,530

 

82,482

 

81,415

 

82,689

 

83,352

 

84,542

 

93,352

 

Goodwill

 

372,486

 

389,608

 

564,261

 

558,564

 

607,753

 

615,832

 

592,752

 

589,981

 

679,008

 

Intangibles, net

 

12,023

 

27,738

 

43,332

 

54,452

 

56,985

 

52,177

 

48,198

 

50,674

 

56,670

 

Others assets

 

15,485

 

17,674

 

13,305

 

13,300

 

17,171

 

14,805

 

26,640

 

26,447

 

29,868

 

Investment in unconsolidated affiliate

 

—

 

—

 

—

 

—

 

—

 

49,927

 

49,351

 

48,935

 

46,758

 

Long-term assets of discontinued operations

 

79,166

 

82,801

 

83,760

 

83,702

 

76,778

 

76,231

 

—

 

—

 

—

 

Total assets

 

$

1,122,279

 

$

1,173,419

 

$

1,327,621

 

$

1,408,991

 

$

1,543,613

 

$

1,521,802

 

$

1,407,617

 

$

1,489,235

 

$

1,678,715

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts Payable, accrued expenses and other

 

$

239,536

 

$

251,464

 

$

276,947

 

$

284,982

 

$

286,465

 

$

285,759

 

$

307,909

 

$

322,846

 

$

320,701

 

Accrued business reorganization and spin-off costs

 

33,958

 

29,962

 

25,035

 

23,428

 

21,595

 

19,623

 

18,190

 

17,458

 

15,607

 

Deferred revenue

 

154,676

 

162,856

 

180,196

 

196,724

 

231,382

 

242,100

 

245,713

 

248,063

 

328,902

 

Current portion of long-term debt

 

2,623

 

10,814

 

22,492

 

22,833

 

29,262

 

31,980

 

26,572

 

29,903

 

31,378

 

Current liabilties of discontinued operations

 

209,202

 

158,464

 

151,562

 

175,040

 

162,039

 

140,965

 

—

 

—

 

—

 

Total current liabilities

 

639,995

 

613,560

 

656,232

 

703,007

 

730,743

 

720,427

 

598,384

 

618,270

 

696,588

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

2,029

 

9,287

 

34,311

 

34,196

 

33,975

 

14,653

 

14,363

 

14,805

 

15,678

 

Other long-term liabilities

 

11,695

 

13,942

 

15,404

 

17,238

 

23,259

 

30,234

 

36,156

 

37,578

 

46,774

 

Long-term liabilities of discontinued operations

 

368

 

336

 

223

 

118

 

122

 

205

 

—

 

—

 

—

 

Total liabilities

 

654,087

 

637,125

 

706,170

 

754,559

 

788,099

 

765,519

 

648,903

 

670,653

 

759,040

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock and class B common stock

 

114

 

117

 

120

 

120

 

122

 

122

 

122

 

124

 

127

 

Additional paid-in capital

 

968,994

 

1,029,961

 

1,099,571

 

1,104,395

 

1,146,708

 

1,153,681

 

1,167,900

 

1,196,932

 

1,267,744

 

Accumulated other comprehensive income

 

58,928

 

53,655

 

55,760

 

64,369

 

98,027

 

71,804

 

40,267

 

39,740

 

35,515

 

Unamortized stock based compensation

 

—

 

—

 

(2,801

)

(3,240

)

(2,603

)

(3,154

)

(2,981

)

(2,441

)

(4,403

)

Retained earnings (deficit)

 

(559,844

)

(547,439

)

(531,199

)

(511,212

)

(486,740

)

(466,170

)

(446,594

)

(415,773

)

(379,308

)

Total stockholders’ equity

 

468,192

 

536,294

 

621,451

 

654,432

 

755,514

 

756,283

 

758,714

 

818,582

 

919,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

1,122,279

 

$

1,173,419

 

$

1,327,621

 

$

1,408,991

 

$

1,543,613

 

$

1,521,802

 

$

1,407,617

 

$

1,489,235

 

$

1,678,715

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios(2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

• Annualized return on equity

 

10.8

%

9.9

%

11.2

%

12.5

%

13.9

%

10.9

%

10.3

%

15.6

%

16.8

%

• Annualized return on capital employed (ROCE)

 

16.0

%

13.9

%

14.9

%

17.4

%

18.2

%

15.9

%

18.6

%

21.2

%

21.0

%

• Book value per share

 

$

4.14

 

$

4.63

 

$

5.24

 

$

5.51

 

$

6.27

 

$

6.26

 

$

6.24

 

$

6.61

 

$

7.33

 

• Cash and marketable securitites per share

 

$

1.26

 

$

1.35

 

$

0.69

 

$

0.99

 

$

1.64

 

$

1.17

 

$

1.94

 

$

2.54

 

$

2.55

 

 

(2) - See notes to financial supplement for definitions and calculations of selected financial ratios.

 


 

Monster Worldwide, Inc.

Segment and Geographic Information and Operating Metrics

(unaudited, in thousands, except as noted)

 

 

 

Trended Quarterly Data

 

Year to Date Data

 

 

 

Q4 2003(1)

 

Q1 2004

 

Q2 2004

 

Q3 2004

 

Q4 2004

 

Q1 2005

 

Q2 2005

 

Q3 2005

 

Q4 2005

 

12M 2004

 

12M 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment revenue by geographic region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster North America

 

$

90,605

 

$

104,997

 

$

115,894

 

$

126,896

 

$

135,252

 

$

148,317

 

$

152,212

 

$

161,998

 

$

168,628

 

$

483,039

 

$

631,155

 

Monster International

 

14,315

 

17,165

 

26,010

 

30,783

 

36,912

 

41,217

 

45,879

 

44,836

 

55,184

 

110,870

 

187,116

 

Monster revenue

 

$

104,920

 

$

122,162

 

$

141,904

 

$

157,679

 

$

172,164

 

$

189,534

 

$

198,091

 

$

206,834

 

$

223,812

 

$

593,909

 

$

818,271

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising & Communications North America

 

$

17,898

 

$

17,495

 

$

17,553

 

$

19,292

 

$

21,427

 

$

19,762

 

$

18,932

 

$

21,540

 

$

25,031

 

$

75,767

 

$

85,265

 

Advertising & Communications International

 

19,381

 

21,553

 

21,871

 

21,648

 

21,383

 

22,757

 

21,956

 

20,914

 

17,754

 

86,455

 

83,381

 

Advertising & Communications revenue

 

$

37,279

 

$

39,048

 

$

39,424

 

$

40,940

 

$

42,810

 

$

42,519

 

$

40,888

 

$

42,454

 

$

42,785

 

$

162,222

 

$

168,646

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment OIBDA by geographic region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster North America

 

$

30,823

 

$

28,678

 

$

34,165

 

$

40,018

 

$

49,405

 

$

50,999

 

$

55,332

 

$

61,542

 

$

63,440

 

$

152,266

 

$

231,313

 

Monster International

 

(904

)

(1,142

)

2,283

 

2,588

 

4,849

 

925

 

296

 

356

 

4,139

 

8,578

 

5,716

 

Monster OIBDA (1)

 

$

29,919

 

$

27,536

 

$

36,448

 

$

42,606

 

$

54,254

 

$

51,924

 

$

55,628

 

$

61,898

 

$

67,579

 

$

160,844

 

$

237,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising & Communications North America

 

$

2,018

 

$

2,159

 

$

2,242

 

$

2,848

 

$

2,361

 

$

3,182

 

$

1,632

 

$

3,551

 

$

7,861

 

$

9,610

 

$

16,226

 

Advertising & Communications International

 

1,598

 

741

 

1,014

 

553

 

(2,653

)

774

 

670

 

2,574

 

1,094

 

(345

)

5,112

 

Advertising & Communications OIBDA (1)

 

$

3,616

 

$

2,900

 

$

3,256

 

$

3,401

 

$

(292

)

$

3,956

 

$

2,302

 

$

6,125

 

$

8,955

 

$

9,265

 

$

21,338

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses before depreciation and amortization

 

$

(10,273

)

$

(6,750

)

$

(8,173

)

$

(8,858

)

$

(12,035

)

$

(9,005

)

$

(9,314

)

$

(10,469

)

$

(12,472

)

$

(35,816

)

$

(41,260

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating income (loss) by geographic region:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster North America

 

$

26,947

 

$

24,728

 

$

29,665

 

$

34,998

 

$

44,764

 

$

46,042

 

$

50,323

 

$

56,646

 

$

58,331

 

$

134,155

 

$

211,342

 

Monster International

 

(1,756

)

(2,022

)

863

 

(356

)

3,328

 

(1,565

)

(2,108

)

(2,061

)

891

 

1,813

 

(4,843

)

Monster operating income

 

$

25,191

 

$

22,706

 

$

30,528

 

$

34,642

 

$

48,092

 

$

44,477

 

$

48,215

 

$

54,585

 

$

59,222

 

$

135,968

 

$

206,499

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising & Communications North America

 

$

577

 

$

978

 

$

1,018

 

$

1,657

 

$

1,240

 

$

2,125

 

$

537

 

$

2,308

 

$

6,838

 

$

4,893

 

$

11,808

 

Advertising & Communications International

 

1,115

 

190

 

460

 

(11

)

(3,340

)

314

 

226

 

2,139

 

625

 

(2,701

)

3,304

 

Advertising & Communications operating income (loss)

 

$

1,692

 

$

1,168

 

$

1,478

 

$

1,646

 

$

(2,100

)

$

2,439

 

$

763

 

$

4,447

 

$

7,463

 

$

2,192

 

$

15,112

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses

 

$

(10,557

)

$

(7,524

)

$

(9,319

)

$

(9,848

)

$

(12,926

)

$

(10,247

)

$

(10,117

)

$

(11,303

)

$

(13,527

)

$

(39,617

)

$

(45,194

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated revenue by geographic region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

108,503

 

$

122,492

 

$

133,447

 

$

146,188

 

$

156,679

 

$

168,079

 

$

171,144

 

$

183,538

 

$

193,659

 

$

558,806

 

$

716,420

 

International

 

33,696

 

38,718

 

47,881

 

52,431

 

58,295

 

63,974

 

67,835

 

65,750

 

72,938

 

197,325

 

270,497

 

Consolidated revenue

 

$

142,199

 

$

161,210

 

$

181,328

 

$

198,619

 

$

214,974

 

$

232,053

 

$

238,979

 

$

249,288

 

$

266,597

 

$

756,131

 

$

986,917

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated OIBDA by geographic region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

32,841

 

$

30,837

 

$

36,407

 

$

42,866

 

$

51,766

 

$

54,181

 

$

56,964

 

$

65,093

 

$

71,301

 

$

161,876

 

$

247,539

 

International

 

694

 

(401

)

3,297

 

3,141

 

2,196

 

1,699

 

966

 

2,930

 

5,233

 

8,233

 

10,828

 

Corporate

 

(10,273

)

(6,750

)

(8,173

)

(8,858

)

(12,035

)

(9,005

)

(9,314

)

(10,469

)

(12,472

)

(35,816

)

(41,260

)

Consolidated OIBDA

 

$

23,262

 

$

23,686

 

$

31,531

 

$

37,149

 

$

41,927

 

$

46,875

 

$

48,616

 

$

57,554

 

$

64,062

 

$

134,293

 

$

217,107

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated operating income (loss) by geographic region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

27,524

 

$

25,706

 

$

30,683

 

$

36,655

 

$

46,004

 

$

48,167

 

$

50,860

 

$

58,954

 

$

65,169

 

$

139,048

 

$

223,150

 

International

 

(641

)

(1,832

)

1,323

 

(367

)

(12

)

(1,251

)

(1,882

)

78

 

1,516

 

(888

)

(1,539

)

Corporate

 

(10,557

)

(7,524

)

(9,319

)

(9,848

)

(12,926

)

(10,247

)

(10,117

)

(11,303

)

(13,527

)

(39,617

)

(45,194

)

Consolidated operating income

 

$

16,326

 

$

16,350

 

$

22,687

 

$

26,440

 

$

33,066

 

$

36,669

 

$

38,861

 

$

47,729

 

$

53,158

 

$

98,543

 

$

176,417

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Metrics:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global employees (ones)

 

3,175

 

3,388

 

3,954

 

4,097

 

4,210

 

4,472

 

4,551

 

4,634

 

4,822

 

4,210

 

4,822

 

Annualized revenue per average employee

 

$

181.3

 

$

196.5

 

$

197.6

 

$

197.4

 

$

207.0

 

$

213.8

 

$

211.9

 

$

217.1

 

$

225.5

 

$

199.6

 

$

217.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) - See notes to financial supplement for further explanation of non-GAAP measures.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster North America operating margin

 

29.7

%

23.6

%

25.6

%

27.6

%

33.1

%

31.0

%

33.1

%

35.0

%

34.6

%

27.8

%

33.5

%

Monster International operating margin

 

-12.3

%

-11.8

%

3.3

%

-1.2

%

9.0

%

-3.8

%

-4.6

%

-4.6

%

1.6

%

1.6

%

-2.6

%

Monster operating margin

 

24.0

%

18.6

%

21.5

%

22.0

%

27.9

%

23.5

%

24.3

%

26.4

%

26.5

%

22.9

%

25.2

%

Consolidated operating margin

 

11.5

%

10.1

%

12.5

%

13.3

%

15.4

%

15.8

%

16.3

%

19.1

%

19.9

%

13.0

%

17.9

%

Consolidated OIBDA margin

 

16.4

%

14.7

%

17.4

%

18.7

%

19.5

%

20.2

%

20.3

%

23.1

%

24.0

%

17.8

%

22.0

%

 


 

Monster Worldwide, Inc.

Quarterly Operations as a % of Revenue

(unaudited)

 

 

 

Trended Quarterly Data

 

Year to Date Data

 

Summary P&L Information

 

Q4 2003(1)

 

Q1 2004

 

Q2 2004

 

Q3 2004

 

Q4 2004

 

Q1 2005

 

Q2 2005

 

Q3 2005

 

Q4 2005

 

12M 2004

 

12M 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster

 

73.8

%

75.8

%

78.3

%

79.4

%

80.1

%

81.7

%

82.9

%

83.0

%

84.0

%

78.5

%

82.9

%

Advertising & Communications

 

26.2

%

24.2

%

21.7

%

20.6

%

19.9

%

18.3

%

17.1

%

17.0

%

16.0

%

21.5

%

17.1

%

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

 

47.9

%

44.0

%

44.9

%

46.0

%

47.3

%

42.9

%

43.9

%

43.6

%

41.7

%

45.7

%

43.0

%

Office and general

 

18.4

%

17.8

%

16.7

%

16.5

%

16.0

%

16.0

%

15.8

%

14.7

%

14.2

%

16.7

%

15.1

%

Marketing and promotion

 

17.4

%

23.5

%

21.0

%

18.8

%

17.2

%

20.9

%

20.0

%

18.6

%

20.1

%

19.9

%

19.9

%

OIBDA (1)

 

16.4

%

14.7

%

17.4

%

18.7

%

19.5

%

20.2

%

20.3

%

23.1

%

24.0

%

17.8

%

22.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

 

4.2

%

3.9

%

3.7

%

3.5

%

2.7

%

3.0

%

2.9

%

2.8

%

2.8

%

3.4

%

2.9

%

Amortization of stock based compensation

 

0.4

%

0.3

%

0.5

%

0.4

%

0.3

%

0.4

%

0.2

%

0.2

%

0.3

%

0.4

%

0.3

%

Amortization of intangibles

 

0.3

%

0.4

%

0.7

%

1.5

%

1.1

%

1.0

%

1.0

%

0.9

%

1.1

%

1.0

%

1.0

%

Operating expenses

 

88.5

%

89.9

%

87.5

%

86.7

%

84.6

%

84.2

%

83.7

%

80.9

%

80.1

%

87.0

%

82.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

11.5

%

10.1

%

12.5

%

13.3

%

15.4

%

15.8

%

16.3

%

19.1

%

19.9

%

13.0

%

17.9

%

Interest and other, net

 

-0.1

%

-0.2

%

-0.2

%

-0.1

%

0.0

%

0.0

%

0.4

%

0.3

%

1.7

%

-0.1

%

0.6

%

Income from cont. operations, pre-tax

 

11.4

%

10.0

%

12.3

%

13.2

%

15.3

%

15.8

%

16.7

%

19.4

%

21.6

%

12.9

%

18.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

3.3

%

3.3

%

4.1

%

4.3

%

5.3

%

5.6

%

5.8

%

6.8

%

7.6

%

4.3

%

6.5

%

Losses in equity interests

 

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

-0.1

%

-0.2

%

-0.3

%

-0.8

%

0.0

%

-0.3

%

Income from continuing operations

 

8.0

%

6.7

%

8.2

%

8.9

%

10.1

%

10.1

%

10.7

%

12.4

%

13.2

%

8.6

%

11.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reorganization charges, net of tax

 

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

Income (loss) from disc. operations, net of tax

 

0.5

%

1.0

%

0.8

%

1.2

%

1.3

%

-1.2

%

-2.5

%

0.0

%

0.4

%

1.1

%

-0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

8.5

%

7.7

%

9.0

%

10.1

%

11.4

%

8.9

%

8.2

%

12.4

%

13.7

%

9.7

%

10.9

%

 


 

Monster Worldwide, Inc.

Quarterly Statements of Operations - Non-GAAP to GAAP Reconcilations

(unaudited, in thousands, except per share amounts)

 

 

 

Non-GAAP to GAAP Reconciliations

 

 

 

 

 

Add

 

Q4 2003

 

Summary P&L Information

 

Q4 2003(1)

 

Adjustments*

 

GAAP

 

 

 

 

 

 

 

 

 

Monster

 

$

104,920

 

$

—

 

$

104,920

 

Advertising & Communications

 

37,279

 

—

 

37,279

 

Revenue

 

142,199

 

—

 

142,199

 

 

 

 

 

 

 

 

 

Salary and related

 

68,631

 

—

 

68,631

 

Office and general

 

25,602

 

—

 

25,602

 

Marketing and promotion

 

24,704

 

—

 

24,704

 

OIBDA(1)

 

23,262

 

—

 

23,262

 

 

 

 

 

 

 

 

 

Depreciation expense

 

6,012

 

—

 

6,012

 

Amortization of stock based compensation

 

498

 

—

 

498

 

Amortization of intangibles

 

426

 

—

 

426

 

Business reorganization and spin-off charges

 

—

 

28

 

28

 

 

 

 

 

 

 

 

 

Operating expenses

 

125,873

 

28

 

125,901

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

16,326

 

(28

)

16,298

 

Interest and other, net

 

(179

)

—

 

(179

)

Income (loss) from continuing operations, pre-tax

 

16,147

 

(28

)

16,119

 

 

 

 

 

 

 

 

 

Income taxes

 

4,709

 

—

 

4,709

 

Losses in equity interests

 

—

 

—

 

—

 

Income (loss) from continuing operations

 

11,438

 

(28

)

11,410

 

 

 

 

 

 

 

 

 

Business reorganization and spin-off charges, net of tax

 

(28

)

28

 

—

 

Income (loss) from discontinued operations, net of tax

 

722

 

—

 

722

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

12,132

 

$

—

 

$

12,132

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share:

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.10

 

$

—

 

$

0.10

 

Net income (loss)

 

$

0.11

 

$

—

 

$

0.11

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share:

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.10

 

$

—

 

$

0.10

 

Net income (loss)

 

$

0.11

 

$

—

 

$

0.11

 

 

 

 

 

 

 

 

 

Weighted avg. shares outstanding:

 

 

 

 

 

 

 

Basic shares

 

112,838

 

112,838

 

112,838

 

Diluted shares

 

115,514

 

115,514

 

115,514

 

 

 

 

 

 

Add

 

Q4 2003

 

Segment operating income (loss) by geographic region:

 

Q4 2003

 

Adjustments*

 

GAAP

 

Monster North America

 

$

26,947

 

$

32

 

$

26,979

 

Monster International

 

(1,756

)

14

 

(1,742

)

Monster operating income

 

$

25,191

 

$

46

 

$

25,237

 

 

 

 

 

 

 

 

 

Advertising & Communications North America

 

$

577

 

$

33

 

$

610

 

Advertising & Communications International

 

1,115

 

3

 

1,118

 

Advertising & Communications operating income (loss)

 

$

1,692

 

$

36

 

$

1,728

 

 

 

 

 

 

 

 

 

Corporate expenses

 

$

(10,557

)

$

(110

)

$

(10,667

)

 

 

 

 

 

 

 

 

Consolidated operating income (loss)

 

$

16,326

 

$

(28

)

$

16,298

 

 

(1) - See notes to financiall supplement for further explanation of non-GAAP measures.

* - Represents business reorganization and other special charges