EX-99.1 2 a07-1679_1ex99d1.htm EX-99

Exhibit 99.1

RESTATED FINANCIAL SUPPLEMENT

SEPTEMBER 30, 2006

 

 

We provide this supplement to assist investors in evaluating our Company’s financial and operating metrics.  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

Stock Option Investigation

On June 12, 2006, we announced that a committee of independent directors of the Board of Directors (the “Special Committee”) assisted by independent legal counsel and outside accounting experts were conducting an independent investigation to review our historical stock option grant practices.  On December 13, 2006, we restated our historical financial statements to record additional non-cash stock based compensation charges and the related income tax effects based on the findings of the Special Committee.  On December 26, 2006, we filed our Quarterly Report for the quarter ended September 30, 2006, completing the restatements and bringing us compliant with our periodic filings.  We recorded these non-cash compensation charges as a component of “Corporate expenses” and did not allocate these non-cash costs to our reportable segments.  The restatement did not affect our statements of operations or segment results for the 2006 periods.

Sale of Advertising & Communications business in North America.

On August 31, 2006, we sold our TMP Worldwide Advertising & Communications business in North America.  As a result of this transaction, the Company has completed the global divestiture of its recruitment advertising business and will no longer report an Advertising & Communications operating segment.  Accordingly, we have reclassified our quarterly financial information to reflect the disposition as discontinued operations in all periods presented.  The financial results from continuing operations, presented herein, reflect the remaining and ongoing results of our business.

(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.  In addition, we use these measures for reviewing our financial results and for budgeting and planning purposes.

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.

2




Monster Worldwide, Inc.
Statements of Operations - Non GAAP
(unaudited, in thousands, except per share amounts)

 

 

Trended Quarterly Data

 

Year to Date Data

 

Summary P&L Information

 

Q1 2004

 

Q2 2004

 

Q3 2004

 

Q4 2004

 

Q1 2005

 

Q2 2005

 

Q3 2005

 

Q4 2005

 

Q1 2006

 

Q2 2006

 

Q3 2006

 

9M 2005

 

9M 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers

 

$110,117

 

$122,995

 

$134,277

 

$148,982

 

$164,773

 

$172,032

 

$178,931

 

$192,982

 

$224,589

 

$237,190

 

$244,292

 

$515,736

 

$706,071

 

Internet Advertising & Fees

 

12,045

 

18,909

 

23,402

 

23,182

 

24,761

 

26,059

 

27,903

 

30,830

 

32,447

 

37,979

 

41,563

 

78,723

 

111,989

 

Revenue

 

122,162

 

141,904

 

157,679

 

172,164

 

189,534

 

198,091

 

206,834

 

223,812

 

257,036

 

275,169

 

285,855

 

594,459

 

818,060

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salary and related

 

45,914

 

55,817

 

65,230

 

70,323

 

71,282

 

77,510

 

81,820

 

85,819

 

89,524

 

95,439

 

103,895

 

230,612

 

288,858

 

Office and general

 

20,762

 

23,083

 

24,727

 

26,023

 

29,073

 

29,135

 

28,831

 

31,405

 

36,973

 

32,672

 

42,025

 

87,039

 

111,670

 

Marketing and promotion

 

37,627

 

37,837

 

37,032

 

36,594

 

47,952

 

47,062

 

46,074

 

53,633

 

65,799

 

73,212

 

68,077

 

141,088

 

207,088

 

OIBDA(1)

 

17,859

 

25,167

 

30,690

 

39,224

 

41,227

 

44,384

 

50,109

 

52,955

 

64,740

 

73,846

 

71,858

 

135,720

 

210,444

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

 

5,202

 

5,660

 

5,821

 

4,864

 

5,759

 

5,820

 

5,967

 

6,292

 

7,097

 

8,586

 

7,323

 

17,546

 

23,006

 

Amortization of restricted stock and RSU Plan

 

474

 

872

 

737

 

639

 

968

 

534

 

540

 

693

 

2,029

 

3,423

 

2,943

 

2,042

 

8,395

 

Non-cash stock option expense

 

2,963

 

2,854

 

2,685

 

2,705

 

2,721

 

2,138

 

6,601

 

425

 

 

 

 

11,460

 

 

Amortization of intangibles

 

598

 

1,191

 

3,042

 

2,301

 

2,327

 

2,247

 

2,179

 

2,832

 

2,675

 

2,569

 

1,765

 

6,753

 

7,009

 

Operating expenses

 

113,540

 

127,314

 

139,274

 

143,449

 

160,082

 

164,446

 

172,012

 

181,099

 

204,097

 

215,901

 

226,028

 

496,540

 

646,026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

8,622

 

14,590

 

18,405

 

28,715

 

29,452

 

33,645

 

34,822

 

42,713

 

52,939

 

59,268

 

59,827

 

97,919

 

172,034

 

Interest and other, net(2)

 

(276

)

(821

)

(508

)

(454

)

(391

)

733

 

684

 

3,804

 

3,130

 

3,940

 

5,012

 

1,026

 

12,082

 

Income from cont. operations, pre-tax

 

8,346

 

13,769

 

17,897

 

28,261

 

29,061

 

34,378

 

35,506

 

46,517

 

56,069

 

63,208

 

64,839

 

98,945

 

184,116

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

2,651

 

4,928

 

5,823

 

11,733

 

10,452

 

12,146

 

13,015

 

16,028

 

20,411

 

22,077

 

22,692

 

35,613

 

65,180

 

Losses in equity interests

 

 

 

 

 

(209

)

(367

)

(641

)

(2,180

)

(1,241

)

(2,284

)

(2,054

)

(1,217

)

(5,579

)

Income from continuing operations

 

5,695

 

8,841

 

12,074

 

16,528

 

18,400

 

21,865

 

21,850

 

28,309

 

34,417

 

38,847

 

40,093

 

62,115

 

113,357

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from disc. operations, net of tax(3)

 

3,526

 

4,358

 

5,002

 

2,712

 

(438

)

(3,848

)

4,216

 

7,840

 

7,845

 

770

 

(123,910

)

(70

)

(115,295

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$ 9,221

 

$13,199

 

$17,076

 

$19,240

 

$17,962

 

$18,017

 

$26,066

 

$36,149

 

$42,262

 

$39,617

 

$(83,817

)

$62,045

 

$(1,938

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$   0.05

 

$   0.08

 

$   0.10

 

$   0.14

 

$   0.15

 

$   0.18

 

$   0.18

 

$   0.23

 

$   0.27

 

$   0.30

 

$    0.31

 

$   0.51

 

$    0.89

 

Net income (loss)

 

$   0.08

 

$   0.11

 

$   0.14

 

$   0.16

 

$   0.15

 

$   0.15

 

$   0.21

 

$   0.29

 

$   0.33

 

$   0.31

 

$  (0.65

)

$   0.51

 

$  (0.02

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$   0.05

 

$   0.07

 

$   0.10

 

$   0.14

 

$   0.15

 

$   0.18

 

$   0.18

 

$   0.22

 

$   0.26

 

$   0.29

 

$    0.31

 

$   0.50

 

$    0.86

 

Net income (loss)

 

$   0.08

 

$   0.11

 

$   0.14

 

$   0.16

 

$   0.15

 

$   0.15

 

$   0.21

 

$   0.28

 

$   0.32

 

$   0.30

 

$  (0.64

)

$   0.50

 

$  (0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted avg. shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic shares

 

115,533

 

117,431

 

118,584

 

119,373

 

120,655

 

121,049

 

122,128

 

124,348

 

126,753

 

128,551

 

128,484

 

121,283

 

127,938

 

Diluted shares

 

118,030

 

120,192

 

120,351

 

122,353

 

123,577

 

123,181

 

124,757

 

127,418

 

130,619

 

132,009

 

130,827

 

123,798

 

131,224

 


(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.

(3)             - Loss from discontinued operations, net of tax in the third quarter of 2006 includes the write-off of $133.0 million of goodwill related to our former TMP
  Worldwide Advertising & Communications business in North America.

3




Monster Worldwide, Inc.

Segment Information and Margin Analysis - Non-GAAP

(unaudited, in thousands)

 

 

 

Trended Quarterly Data

 

Year to Date Data

 

 

 

Q1 2004

 

Q2 2004

 

Q3 2004

 

Q4 2004

 

Q1 2005

 

Q2 2005

 

Q3 2005

 

Q4 2005

 

Q1 2006

 

Q2 2006

 

Q3 2006

 

9M 2005

 

9M 2006

 

Segment revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers - North America

 

$92,951

 

$96,985

 

$103,494

 

$112,070

 

$123,556

 

$126,152

 

$134,094

 

$137,798

 

$159,998

 

$162,816

 

$166,910

 

$383,802

 

$489,724

 

Monster Careers - International

 

17,166

 

26,010

 

30,783

 

36,912

 

41,217

 

45,880

 

44,837

 

55,184

 

64,591

 

74,374

 

77,382

 

131,934

 

216,347

 

Monster Careers revenue

 

$110,117

 

$122,995

 

$134,277

 

$148,982

 

$164,773

 

$172,032

 

$178,931

 

$192,982

 

$224,589

 

$237,190

 

$244,292

 

$515,736

 

$706,071

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet Advertising & Fees revenue

 

12,045

 

18,909

 

23,402

 

23,182

 

24,761

 

26,059

 

27,903

 

30,830

 

32,447

 

37,979

 

41,563

 

78,723

 

111,989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Monster revenue

 

$122,162

 

$141,904

 

$157,679

 

$172,164

 

$189,534

 

$198,091

 

$206,834

 

$223,812

 

$257,036

 

$275,169

 

$285,855

 

$594,459

 

$818,060

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment OIBDA(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers - North America

 

$21,077

 

$26,292

 

$30,918

 

$40,786

 

$41,409

 

$45,309

 

$50,984

 

$49,974

 

$58,652

 

$61,337

 

$62,114

 

$137,702

 

$182,103

 

Monster Careers - International

 

(1,952

)

1,347

 

1,706

 

3,940

 

545

 

(777

)

92

 

3,580

 

4,724

 

7,064

 

8,248

 

(140

)

20,036

 

Monster Careers OIBDA(1)

 

$19,125

 

$27,639

 

$32,624

 

$44,726

 

$41,954

 

$44,532

 

$51,076

 

$53,554

 

$63,376

 

$68,401

 

$70,362

 

$137,562

 

$202,139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet Advertising & Fees OIBDA(1)

 

5,649

 

5,873

 

7,116

 

6,705

 

8,269

 

9,187

 

9,557

 

11,915

 

11,608

 

14,235

 

13,504

 

27,013

 

39,347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Monster OIBDA(1)

 

$24,774

 

$33,512

 

$39,740

 

$51,431

 

$50,223

 

$53,719

 

$60,633

 

$65,469

 

$74,984

 

$82,636

 

$83,866

 

$164,575

 

$241,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses before D&A(1)

 

$(6,915

)

$(8,345

)

$(9,050

)

$(12,207

)

$(8,996

)

$(9,335

)

$(10,524

)

$(12,514

)

$(10,244

)

$(8,790

)

$(12,008

)

$(28,855

)

$(31,042

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating income (loss):(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers - North America

 

$17,213

 

$22,423

 

$27,117

 

$37,267

 

$37,285

 

$41,100

 

$46,735

 

$45,769

 

$54,559

 

$55,597

 

$57,193

 

$125,120

 

$167,349

 

Monster Careers - International

 

(2,912

)

(153

)

(1,318

)

2,299

 

(1,978

)

(3,217

)

(2,367

)

285

 

765

 

2,003

 

4,997

 

(7,562

)

7,765

 

Monster Careers operating income

 

$14,301

 

$22,270

 

$25,799

 

$39,566

 

$35,307

 

$37,883

 

$44,368

 

$46,054

 

$55,324

 

$57,600

 

$62,190

 

$117,558

 

$175,114

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet Advertising & Fees operating income

 

4,977

 

4,659

 

5,325

 

4,968

 

7,116

 

8,046

 

8,407

 

10,656

 

9,486

 

12,563

 

11,843

 

23,569

 

33,892

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Monster operating income

 

$19,278

 

$26,929

 

$31,124

 

$44,534

 

$42,423

 

$45,929

 

$52,775

 

$56,710

 

$64,810

 

$70,163

 

$74,033

 

$141,127

 

$209,006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses

 

$(10,656

)

$(12,339

)

$(12,719

)

$(15,819

)

$(12,971

)

$(12,284

)

$(17,953

)

$(13,997

)

$(11,871

)

$(10,895

)

$(14,206

)

$(43,208

)

$(36,972

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margin Analysis:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers - North America OIBDA margin

 

22.7

%

27.1

%

29.9

%

36.4

%

33.5

%

35.9

%

38.0

%

36.3

%

36.7

%

37.7

%

37.2

%

35.9

%

37.2

%

Monster Careers - North America operating margin

 

18.5

%

23.1

%

26.2

%

33.3

%

30.2

%

32.6

%

34.9

%

33.2

%

34.1

%

34.1

%

34.3

%

32.6

%

34.2

%

Monster Careers - International OIBDA margin

 

-11.4

%

5.2

%

5.5

%

10.7

%

1.3

%

-1.7

%

0.2

%

6.5

%

7.3

%

9.5

%

10.7

%

-0.1

%

9.3

%

Monster Careers - International operating margin

 

-17.0

%

-0.6

%

-4.3

%

6.2

%

-4.8

%

-7.0

%

-5.3

%

0.5

%

1.2

%

2.7

%

6.5

%

-5.7

%

3.6

%

Internet Advertising & Fees OIBDA margin

 

46.9

%

31.1

%

30.4

%

28.9

%

33.4

%

35.3

%

34.3

%

38.6

%

35.8

%

37.5

%

32.5

%

34.3

%

35.1

%

Internet Advertising & Fees operating margin

 

41.3

%

24.6

%

22.8

%

21.4

%

28.7

%

30.9

%

30.1

%

34.6

%

29.2

%

33.1

%

28.5

%

29.9

%

30.3

%

Monster OIBDA margin

 

20.3

%

23.6

%

25.2

%

29.9

%

26.5

%

27.1

%

29.3

%

29.3

%

29.2

%

30.0

%

29.3

%

27.7

%

29.5

%

Monster operating margin

 

15.8

%

19.0

%

19.7

%

25.9

%

22.4

%

23.2

%

25.5

%

25.3

%

25.2

%

25.5

%

25.9

%

23.7

%

25.5

%

Consolidated OIBDA margin

 

14.6

%

17.7

%

19.5

%

22.8

%

21.8

%

22.4

%

24.2

%

23.7

%

25.2

%

26.8

%

25.1

%

22.8

%

25.7

%

Consolidated operating margin

 

7.1

%

10.3

%

11.7

%

16.7

%

15.5

%

17.0

%

16.8

%

19.1

%

20.6

%

21.5

%

20.9

%

16.5

%

21.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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

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