EX-99.1 2 a08-4077_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

Monster Worldwide Reports Fourth Quarter and Full Year 2007 Results

 

Total Revenue Increases 19% to $354 Million with Careers International Revenue Growth of 59%

 

Diluted Earnings Per Share from Continuing Operations at $0.36, Including $0.05 Per Share of Pro Forma Adjustments

 

Restructuring Efficiencies Drive Operating Margin Expansion to 18%, Compared with 15% and 13% in the Third and Second Quarters, Respectively

 

Cash Generated from Operating Activities of $64 Million

 

Stock Buyback Authorization Increased by Additional $100 Million

 

New York, January 31, 2008—Monster Worldwide, Inc. (NASDAQ: MNST) today reported financial results for the fourth quarter and year ended December 31, 2007.

 

Total revenue grew 19% to $354 million in the fourth quarter of 2007 from $299 million in the comparable quarter of 2006.

 

Monster Careers revenue increased 23% to $317 million, compared with $258 million in last year’s fourth quarter, led by International revenue growth of 59% to $143 million.    North American Careers revenue increased 3% to $174 million in the fourth quarter of 2007.   Internet Advertising & Fees revenue was $37 million compared with $40 million in last year’s comparable quarter.   Consolidated operating income was aided by a $3 million benefit from foreign exchange rates.

 

Monster Worldwide’s deferred revenue balance at December 31, 2007 grew 18% to $524 million over last year’s fourth quarter balance of $444 million.

 

 

1



 

Income from continuing operations was $45 million, or $0.36 per diluted share, in the fourth quarter of 2007, compared to $40 million or $0.31 per diluted share in the 2006 period.  Included in income from continuing operations for the three months ended December 31, 2007 is a $0.05 per diluted share impact from costs associated with the restructuring plan, the ongoing stock option investigation and the security breach of the Company’s resume database in August.  These pro forma adjustments are described in the “Notes Regarding the Use of Non-GAAP Financial Measures” and are reconciled to the nearest GAAP measure in the accompanying tables.   Excluding these costs, income from continuing operations in the fourth quarter of 2007 was $52 million, or $0.41 per diluted share, compared to $49 million, or $0.37 per diluted share in the prior year.

 

At December 31, 2007, the Company’s net cash position was $578 million compared with $573 million at December 31, 2006.  Cash generated from operating activities was $64 million compared to $45 million in the fourth quarter of 2006.  Capital expenditures totaled $16 million in the fourth quarter of 2007.  During the quarter, the Company repurchased 2.8 million shares of its common stock for an aggregate cost of $97 million.  For the year ended December 31, 2007, the Company repurchased 7.3 million shares of common stock for a total cost of $252 million.

 

The Company also announced that its Board of Directors increased the Company’s current stock repurchase authorization by an additional $100 million, bringing the total authorization to $450 million.  Giving effect to the increased authorization and repurchases to date, the Company currently has $253 million remaining under the program.

 

Sal Iannuzzi, Chairman and Chief Executive Officer of Monster Worldwide, said “We are pleased with our strong fourth quarter operating and financial performance in the face of more challenging domestic conditions in the employment market.  During the quarter, we continued the aggressive strategic investment program which we initiated early in the third quarter of 2007.   This program was designed to re-energize the Monster brand and foster product innovation and enhanced technology.  Monster’s strong 19% global revenue growth, combined with the savings generated from the restructuring plan that has

 

 

2



 

funded investments, has allowed us to significantly expand our operating margin since implementing the program.”

 

Mr. Iannuzzi added, “We are encouraged by the early progress we have made in transforming Monster into a company focused on life improvement. We have taken significant steps to enhance our customers’ interaction with Monster by providing better and more timely solutions to meet their changing needs. Despite the current weaker economic environment, we are optimistic about our longer-term growth prospects and believe our strategic investments will position Monster to benefit as  market conditions improve over time, further strengthening Monster’s industry leadership position.  Our goal is to build a solid foundation to foster long-term sustainable value for our customers, shareholders and global associates.”

 

Full Year Results

 

Monster Worldwide reported total revenue of $1,351 million for the year ended December 31, 2007 compared to $1,117 million in 2006, a 21% increase, or 18% before the benefit of foreign exchange rates.  Monster Careers revenue grew 24% to $1,195 million compared with $964 million in 2006.  Internet Advertising & Fees reported revenue of $156 million, an increase of 2% over the prior year.  The Company reported income from continuing operations of $147 million, or $1.13 per diluted share, compared to $154 million or $1.17 per diluted share in the prior year.

 

Supplemental Financial Information

 

The Company has made available certain supplemental financial information, in a separate document that can be accessed directly at http://www.monsterworldwide.com/Q407.pdf or through the Company’s Investor Relations website at http://ir.monsterworldwide.com.

 

Conference Call Information

 

Fourth quarter 2007 results will be discussed on Monster Worldwide’s quarterly conference call taking place on January 31, 2008 at 5:00 PM EST.  To join the

 

 

3



 

conference call, please dial (888) 551-5973 at 4:50 PM EDT and reference conference ID# 31117131.  For those outside the United States, please dial (706) 643-3467 and reference the same conference ID#.  The call will begin promptly at 5:00 PM EST.  Individuals can also access Monster Worldwide’s quarterly conference call online through the Investor Relations section of the Company’s website at www.monsterworldwide.com.  For a replay of the call, please dial (800) 642-1687 or outside the United States dial (706) 645-9291 and reference ID# 31117131.  This number is valid until midnight on February 7, 2008.

 

Contacts

 

Investors: Robert Jones, (212) 351-7032, bob.jones@monsterworldwide.com

Media: Kathryn Burns, (212) 351-7063, kathryn.burns@monsterworldwide.com

 

About Monster Worldwide

 

Monster Worldwide, Inc. (NASDAQ: MNST), parent company of Monster®, the premier global online employment solution for more than a decade, strives to bring people together to advance their lives. With a local presence in key markets in North America, Europe, and Asia, Monster works for everyone by connecting employers with quality job seekers at all levels and by providing personalized career advice to consumers globally. Through online media sites and services, Monster delivers vast, highly targeted audiences to advertisers. Monster Worldwide is a member of the S&P 500 Index and the NASDAQ 100. To learn more about Monster’s industry-leading products and services, visit www.monster.com.  More information about Monster Worldwide is available at www.monsterworldwide.com.

 

Notes Regarding the Use of Non-GAAP Financial Measures

 

Monster Worldwide, Inc. (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, generally accepted accounting principles (“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 operating expenses, operating income, operating margin, income from continuing operations and diluted earnings per share all exclude certain pro forma adjustments including: ongoing costs associated with the stock option investigations, 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; and the strategic restructuring actions initiated in the third quarter of 2007.  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

 

 

4



 

incentive compensation plans. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

 

Operating income before depreciation and amortization (“OIBDA”) is defined as income from operations before depreciation, amortization of intangible assets and amortization of stock based compensation. The Company considers OIBDA to be an important indicator of its operational strength. This measure eliminates the effects of depreciation, amortization of intangible assets and amortization of stock based compensation 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.

 

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 is defined as cash and cash equivalents plus marketable securities, less total debt.  The Company considers net cash to be an important measure of liquidity and an indicator of its ability to meet its ongoing obligations.  The Company also uses net cash, among other measures, in evaluating its choices for capital deployment.  Net cash presented herein is a non-GAAP measure and may not be comparable to similarly titled measures used by other companies.

 

Special Note:  Except for historical information contained herein, the statements made in this release, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Such forward-looking statements involve certain risks and uncertainties, including statements regarding the Company’s strategic direction, prospects and future results. Certain factors, including factors outside of our control, may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, risks associated with acquisitions or dispositions, competition, ongoing costs associated with the stock option investigations and lawsuits, costs associated with the restructuring and security breach, and the other risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated in this release by reference.

 

 

5


 

 


 

MONSTER WORLDWIDE, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

 

2007

 

2006

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

353,988

 

$

298,616

 

$

1,351,309

 

$

1,116,676

 

 

 

 

 

 

 

 

 

 

 

Salaries and related

 

132,828

 

114,596

 

529,578

 

411,849

 

Office and general

 

70,890

 

59,772

 

277,262

 

201,457

 

Marketing and promotion

 

80,697

 

66,418

 

313,159

 

273,506

 

Restructuring and other special charges

 

5,442

 

 

16,597

 

 

Total operating expenses

 

289,857

 

240,786

 

1,136,596

 

886,812

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

64,131

 

57,830

 

214,713

 

229,864

 

 

 

 

 

 

 

 

 

 

 

Interest and other, net

 

6,840

 

6,398

 

25,344

 

18,480

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes and equity interests

 

70,971

 

64,228

 

240,057

 

248,344

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

24,843

 

22,481

 

84,599

 

87,661

 

Losses in equity interests, net

 

(838

)

(1,517

)

(8,298

)

(7,096

)

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

45,290

 

40,230

 

147,160

 

153,587

 

 

 

 

 

 

 

 

 

 

 

Loss from discontinued operations, net of tax

 

(290

)

(1,155

)

(761

)

(116,450

)

 

 

 

 

 

 

 

 

 

 

Net income

 

$

45,000

 

$

39,075

 

$

146,399

 

$

37,137

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share from continuing operations

 

$

0.36

 

$

0.31

 

$

1.14

 

$

1.20

 

Loss from discontinued operations, net of tax

 

 

(0.01

)

(0.01

)

(0.91

)

Basic earnings per share*

 

$

0.36

 

$

0.30

 

$

1.14

 

$

0.29

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share from continuing operations

 

$

0.36

 

$

0.31

 

$

1.13

 

$

1.17

 

Loss from discontinued operations, net of tax

 

 

(0.01

)

(0.01

)

(0.89

)

Diluted earnings per share*

 

$

0.36

 

$

0.30

 

$

1.12

 

$

0.28

 

 

 

 

 

 

 

 

 

 

 

*Basic and diluted earnings (loss) per share may not add in certain periods due to rounding.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

125,504

 

128,489

 

128,785

 

128,077

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

126,704

 

131,209

 

130,755

 

131,247

 

 

 

 

 

 

 

 

 

 

 

Operating income before depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

64,131

 

$

57,830

 

$

214,713

 

$

229,864

 

Depreciation and amortization of intangibles

 

12,828

 

9,765

 

46,977

 

39,780

 

Amortization of stock based compensation

 

3,728

 

2,424

 

28,181

 

10,819

 

 

 

 

 

 

 

 

 

 

 

Operating income before depreciation and amortization

 

$

80,687

 

$

70,019

 

$

289,871

 

$

280,463

 

 

 

6



 

MONSTER WORLDWIDE, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

Three Months Ended December  31,

 

Year Ended December 31,

 

 

 

2007

 

2006

 

2007

 

2006

 

Cash flows provided by operating activities:

 

 

 

 

 

 

 

 

 

Net income

 

$

45,000

 

$

39,075

 

$

146,399

 

$

37,137

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Loss from discontinued operations, net of tax

 

290

 

1,155

 

761

 

116,450

 

Depreciation and amortization of intangibles

 

12,828

 

9,765

 

46,977

 

39,780

 

Provision for doubtful accounts

 

4,453

 

2,550

 

12,906

 

9,055

 

Non-cash compensation

 

3,728

 

2,424

 

28,181

 

10,819

 

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

 

 

 

 

1,854

 

Deferred income taxes

 

(2,762

)

2,267

 

(5,459

)

10,781

 

Loss (gain) on disposal of assets

 

3

 

 

(571

)

 

Loss in equity interests and other

 

838

 

1,521

 

8,298

 

7,096

 

Changes in assets and liabilities, net of business combinations:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(101,843

)

(122,790

)

(67,778

)

(171,312

)

Prepaid and other

 

(12,766

)

2,465

 

(24,977

)

(21,817

)

Deferred revenue

 

89,650

 

97,440

 

80,186

 

116,556

 

Accounts payable, accrued liabilities and other

 

27,091

 

11,322

 

51,840

 

92,595

 

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

 

(2,326

)

(2,635

)

(7,584

)

19,201

 

Total adjustments

 

19,184

 

5,484

 

122,780

 

231,058

 

Net cash provided by operating activities

 

64,184

 

44,559

 

269,179

 

268,195

 

 

 

 

 

 

 

 

 

 

 

Cash flows used for investing activities:

 

 

 

 

 

 

 

 

 

Capital expenditures

 

(16,240

)

(17,238

)

(64,055

)

(55,606

)

Purchase of marketable securities

 

(415,025

)

(373,959

)

(1,424,861

)

(1,722,425

)

Sales and maturities of marketable securities

 

478,068

 

342,351

 

1,514,051

 

1,308,279

 

Payments for acquisitions and intangible assets, net of cash acquired

 

(610

)

(688

)

(2,549

)

(19,601

)

Investment in unconsolidated affiliate

 

 

 

 

(19,936

)

Net proceeds from sale of business

 

 

 

 

 

69,155

 

Cash funded to equity investee

 

 

(2,800

)

(10,000

)

(10,000

)

Net cash used for investing activities of discontinued operations

 

 

 

 

(2,924

)

Net cash provided by (used for) investing activities

 

46,193

 

(52,334

)

12,586

 

(453,058

)

 

 

 

 

 

 

 

 

 

 

Cash flows provided by financing activities:

 

 

 

 

 

 

 

 

 

Payments on capital lease obligations

 

(42

)

322

 

(100

)

(171

)

Payments on acquisition debt

 

(1,500

)

440

 

(23,362

)

(29,245

)

Proceeds from exercise of employee stock options

 

838

 

1,038

 

54,890

 

92,263

 

Excess tax benefits from equity compensation plans

 

(155

)

632

 

13,799

 

17,972

 

Repurchase of common stock

 

(97,761

)

(318

)

(262,495

)

(14,734

)

Structured stock repurchase, net

 

 

 

 

(22,758

)

Net cash (used in) provided by financing activities

 

(98,620

)

2,114

 

(217,268

)

43,327

 

 

 

 

 

 

 

 

 

 

 

Effects of exchange rates on cash

 

772

 

1,553

 

6,567

 

3,619

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

12,529

 

(4,108

)

71,064

 

(137,917

)

Cash and cash equivalents, beginning of period

 

117,215

 

62,788

 

58,680

 

196,597

 

Cash and cash equivalents, end of period

 

$

129,744

 

$

58,680

 

$

129,744

 

$

58,680

 

 

 

 

 

 

 

 

 

 

 

Free cash flow:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

64,184

 

$

44,559

 

$

269,179

 

$

268,195

 

Less: Capital expenditures

 

(16,240

)

(17,238

)

(64,055

)

(55,606

)

Free cash flow

 

$

47,944

 

$

27,321

 

$

205,124

 

$

212,589

 

 

 

7



 

MONSTER WORLDWIDE, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

Assets:

 

December 31, 2007

 

December 31, 2006

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

129,744

 

$

58,680

 

Available-for-sale securities

 

448,703

 

537,893

 

Accounts receivable, net

 

499,854

 

444,747

 

Property and equipment, net

 

126,962

 

102,402

 

Goodwill and intangibles, net

 

661,850

 

640,736

 

Other assets

 

210,697

 

185,345

 

Total assets

 

$

2,077,810

 

$

1,969,803

 

 

 

 

 

 

 

Liabilities and Stockholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

Accounts payable, accrued expenses and other

 

$

304,145

 

$

358,850

 

Deferred revenue

 

524,331

 

444,145

 

Long-term income taxes payable

 

111,108

 

 

Other liabilities

 

21,310

 

33,459

 

Debt

 

415

 

23,664

 

Total liabilities

 

961,309

 

860,118

 

 

 

 

 

 

 

Stockholders’ equity

 

1,116,501

 

1,109,685

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

2,077,810

 

$

1,969,803

 

 

 

8


 


 

MONSTER WORLDWIDE, INC.

UNAUDITED OPERATING SEGMENT INFORMATION

(in thousands)

 

 

 

MONSTER

 

 

 

 

 

Three Months Ended December 31, 2007

 

Careers -
North America

 

Careers -International

 

Internet Advertising & Fees

 

Subtotal

 

Corporate Expenses

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

173,577

 

$

143,300

 

$

37,111

 

$

353,988

 

 

 

$

353,988

 

Operating income

 

52,950

 

24,753

 

75

 

77,778

 

$

(13,647

)

64,131

 

OIBDA

 

59,147

 

29,980

 

2,592

 

91,719

 

(11,032

)

80,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

30.5

%

17.3

%

0.2

%

22.0

%

 

 

18.1

%

OIBDA margin

 

34.1

%

20.9

%

7.0

%

25.9

%

 

 

22.8

%

 

 

 

MONSTER

 

 

 

 

 

Three Months Ended December 31, 2006

 

Careers -
North America

 

Careers -International

 

Internet Advertising & Fees

 

Subtotal

 

Corporate Expenses

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

168,327

 

$

89,933

 

$

40,356

 

$

298,616

 

 

 

$

298,616

 

Operating income

 

59,853

 

9,658

 

11,170

 

80,681

 

$

(22,851

)

57,830

 

OIBDA

 

64,984

 

13,001

 

12,849

 

90,834

 

(20,815

)

70,019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

35.6

%

10.7

%

27.7

%

27.0

%

 

 

19.4

%

OIBDA margin

 

38.6

%

14.5

%

31.8

%

30.4

%

 

 

23.4

%

 

 

 

MONSTER

 

 

 

 

 

Year Ended December 31, 2007

 

Careers -
North America

 

Careers -International

 

Internet Advertising & Fees

 

Subtotal

 

Corporate Expenses

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

707,384

 

$

488,038

 

$

155,887

 

$

1,351,309

 

 

 

$

1,351,309

 

Operating income

 

224,862

 

52,113

 

12,092

 

289,067

 

$

(74,354

)

214,713

 

OIBDA

 

248,664

 

72,832

 

21,892

 

343,388

 

(53,517

)

289,871

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

31.8

%

10.7

%

7.8

%

21.4

%

 

 

15.9

%

OIBDA margin

 

35.2

%

14.9

%

14.0

%

25.4

%

 

 

21.5

%

 

 

 

MONSTER

 

 

 

 

 

Year Ended December 31, 2006

 

Careers -
North America

 

Careers -International

 

Internet Advertising & Fees

 

Subtotal

 

Corporate Expenses

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

658,051

 

$

306,280

 

$

152,345

 

$

1,116,676

 

 

 

$

1,116,676

 

Operating income

 

227,202

 

17,423

 

45,062

 

289,687

 

$

(59,823

)

229,864

 

OIBDA

 

247,087

 

33,037

 

52,196

 

332,320

 

(51,857

)

280,463

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

34.5

%

5.7

%

29.6

%

25.9

%

 

 

20.6

%

OIBDA margin

 

37.5

%

10.8

%

34.3

%

29.8

%

 

 

25.1

%

 

 

9



 

MONSTER WORLDWIDE, INC.
UNAUDITED NON-GAAP STATEMENTS OF OPERATIONS AND RECONCILIATIONS
(in thousands, except per share amounts)

 

For the Three Months Ended December 31, 2007

 

For the Three Months Ended December 31, 2006

 

 

As Reported

 

Proforma Adjustments

 

Non-GAAP

 

As Reported

 

Proforma Adjustments

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

353,988

 

 

$

353,988

 

$

298,616

 

 

$

298,616

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and related

132,828

 

 

132,828

 

114,596

 

(5,000

)(a)

109,596

 

Office and general

70,890

 

(4,781

)(a)

66,109

 

59,772

 

(8,566

)(a)

51,206

 

Marketing and promotion

80,697

 

 

80,697

 

66,418

 

 

66,418

 

Restructuring and other special charges

5,442

 

(5,442

)(b)

 

 

 

 

Total operating expenses

289,857

 

(10,223

)

279,634

 

240,786

 

(13,566

)

227,220

 

Operating income

64,131

 

10,223

 

74,354

 

57,830

 

13,566

 

71,396

 

Operating margin

18.1

%

 

 

21.0

%

19.4

%

 

 

23.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other, net

6,840

 

 

6,840

 

6,398

 

 

6,398

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes and equity interests

70,971

 

10,223

 

81,194

 

64,228

 

13,566

 

77,794

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

24,843

 

3,579

(c)

28,422

 

22,481

 

4,748

(c)

27,229

 

Losses in equity interests, net

(838

)

 

(838

)

(1,517

)

 

 

(1,517

)

Income from continuing operations

$

45,290

 

$

6,644

 

$

51,934

 

$

40,230

 

$

8,818

 

$

49,048

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings per share from continuing operations*

$

0.36

 

$

0.05

 

$

0.41

 

$

0.31

 

$

0.07

 

$

0.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

126,704

 

126,704

 

126,704

 

131,209

 

131,209

 

131,209

 

 

 

 

Year Ended December 31, 2007

 

Year Ended December 31, 2006

 

 

 

As Reported

 

Proforma Adjustments

 

Non-GAAP

 

As Reported

 

Proforma Adjustments

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,351,309

 

 

$

1,351,309

 

$

1,116,676

 

 

$

1,116,676

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and related

 

529,578

 

(15,777

)(a)

513,801

 

411,849

 

(5,000

)(a)

406,849

 

Office and general

 

277,262

 

(28,198

)(a)

249,064

 

201,457

 

(13,279

)(a)

188,178

 

Marketing and promotion

 

313,159

 

 

313,159

 

273,506

 

 

273,506

 

Restructuring and other special charges

 

16,597

 

(16,597

)(b)

 

 

 

 

Total operating expenses

 

1,136,596

 

(60,572

)

1,076,024

 

886,812

 

(18,279

)

868,533

 

Operating income

 

214,713

 

60,572

 

275,285

 

229,864

 

18,279

 

248,143

 

Operating margin

 

15.9

%

 

 

20.4

%

20.6

%

 

 

22.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other, net

 

25,344

 

 

25,344

 

18,480

 

 

18,480

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes and equity interests

 

240,057

 

60,572

 

300,629

 

248,344

 

18,279

 

266,623

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

84,599

 

21,346

(c)

105,945

 

87,661

 

6,452

(c)

94,113

 

Losses in equity interests, net

 

(8,298

)

 

(8,298

)

(7,096

)

 

(7,096

)

Income from continuing operations

 

$

147,160

 

$

39,226

 

$

186,386

 

$

153,587

 

$

11,827

 

$

165,414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings per share from continuing operations*

 

$

1.13

 

$

0.30

 

$

1.43

 

$

1.17

 

$

0.09

 

$

1.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

130,755

 

130,755

 

130,755

 

131,247

 

131,247

 

131,247

 


Note Regarding ProForma Adjustments:

The financial information included herein contains certain non-GAAP financial measures. This information is not intended to be used in place of the financial information prepared and presented in accordance with GAAP, nor is it intended to be considered in isolation. We believe that the above presentation of non-GAAP measures provide useful information to management and investors regarding certain core operating and business trends relating to our results of operations, exclusive of certain restructuring related and other special charges.

 

ProForma adjustments consist of the following:

(a)                   Costs associated with the ongoing investigation into the Company’s historical stock option granting practices, severance charges associated with the termination of certain executives in the second quarter of 2007 and costs associated with the remediation of a security breach related to the Company’s resume database in August 2007.

 

(b)                   Restructuring related charges pertain to the strategic restructuring actions that the Company announced on July 30, 2007. These charges include costs related to the reduction in the Company’s workforce, fixed asset write-offs, costs relating to the consolidation of certain office facilities, contract termination costs, relocation costs and professional fees.

 

(c)                   Income tax adjustment is calculated using the effective tax rate of the period multiplied by the ProForma adjustment to income from continuing operations before income taxes and equity interest.

 

*Diluted earnings per share may not add in certain periods due to rounding.

 

10



 

MONSTER WORLDWIDE, INC.

UNAUDITED NON-GAAP OPERATING SEGMENT INFORMATION

(in thousands)

 

 

 

MONSTER

 

 

 

 

 

Three Months Ended December 31, 2007

 

Careers -
North America

 

Careers -
International

 

Internet
Advertising &
Fees

 

Subtotal

 

Corporate
Expenses

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

173,577

 

$

143,300

 

$

37,111

 

$

353,988

 

 

 

$

353,988

 

Operating income - GAAP

 

$

52,950

 

$

24,753

 

$

75

 

$

77,778

 

$

(13,647

)

$

64,131

 

Proforma Adjustments

 

3,532

 

3,946

 

1,275

 

8,753

 

1,470

 

10,223

 

Operating income - Non GAAP

 

$

56,482

 

$

28,699

 

$

1,350

 

$

86,531

 

$

(12,177

)

$

74,354

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin - GAAP

 

30.5

%

17.3

%

0.2

%

22.0

%

 

 

18.1

%

Operating margin - Non GAAP

 

32.5

%

20.0

%

3.6

%

24.4

%

 

 

21.0

%

 

 

 

 

MONSTER

 

 

 

 

 

Three Months Ended December 31, 2006

 

Careers -
North America

 

Careers -
International

 

Internet
Advertising &
Fees

 

Subtotal

 

Corporate
Expenses

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

168,327

 

$

89,933

 

$

40,356

 

$

298,616

 

 

 

$

298,616

 

Operating income - GAAP

 

$

59,853

 

$

9,658

 

$

11,170

 

$

80,681

 

$

(22,851

)

$

57,830

 

Proforma Adjustments

 

 

 

 

 

13,566

 

13,566

 

Operating income - Non GAAP

 

$

59,853

 

$

9,658

 

$

11,170

 

$

80,681

 

$

(9,285

)

$

71,396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin - GAAP

 

35.6

%

10.7

%

27.7

%

27.0

%

 

 

19.4

%

Operating margin - Non GAAP

 

35.6

%

10.7

%

27.7

%

27.0

%

 

 

23.9

%

 

 

 

 

MONSTER

 

 

 

 

 

Year Ended December 31, 2007

 

Careers -
North America

 

Careers -
International

 

Internet
Advertising &
Fees

 

Subtotal

 

Corporate
Expenses

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

707,384

 

$

488,038

 

$

155,887

 

$

1,351,309

 

 

 

$

1,351,309

 

Operating income - GAAP

 

$

224,862

 

$

52,113

 

$

12,092

 

$

289,067

 

$

(74,354

)

$

214,713

 

Proforma Adjustments

 

11,957

 

10,191

 

3,192

 

25,340

 

35,232

 

60,572

 

Operating income - Non GAAP

 

$

236,819

 

$

62,304

 

$

15,284

 

$

314,407

 

$

(39,122

)

$

275,285

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin - GAAP

 

31.8

%

10.7

%

7.8

%

21.4

%

 

 

15.9

%

Operating margin - Non GAAP

 

33.5

%

12.8

%

9.8

%

23.3

%

 

 

20.4

%

 

 

 

 

MONSTER

 

 

 

 

 

Year Ended December 31, 2006

 

Careers -
North America

 

Careers -
International

 

Internet
Advertising &
Fees

 

Subtotal

 

Corporate
Expenses

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

658,051

 

$

306,280

 

$

152,345

 

$

1,116,676

 

 

 

$

1,116,676

 

Operating income - GAAP

 

$

227,202

 

$

17,423

 

$

45,062

 

$

289,687

 

$

(59,823

)

$

229,864

 

Proforma Adjustments

 

 

 

 

 

18,279

 

18,279

 

Operating income - Non GAAP

 

$

227,202

 

$

17,423

 

$

45,062

 

$

289,687

 

$

(41,544

)

$

248,143

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin - GAAP

 

34.5

%

5.7

%

29.6

%

25.9

%

 

 

20.6

%

Operating margin - Non GAAP

 

34.5

%

5.7

%

29.6

%

25.9

%

 

 

22.2

%

 

11