EX-99.2 3 a08-4077_1ex99d2.htm EX-99.2

Exhibit 99.2

 

 

FINANCIAL SUPPLEMENT

 

DECEMBER 31, 2007

 

 

 

 

 

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.  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.  No such amounts were recorded beyond the 2005 periods, as we accelerated the vesting of all unvested outstanding stock options as of December 31, 2005 to mitigate compensation expense we would have had to record upon the effectiveness of SFAS 123R.  The restatement did not affect our statements of operations or segment results for the 2006 or 2007 periods.

 

Professional Fees

 

For the three months and year ended December 31, 2007, we recorded $1.4 million and $19.1 million, respectively, of professional fees as a direct result of the ongoing stock option investigation. In addition, approximately $13.6 million and $18.3 million of professional fees related to the stock option investigation were included in three months and year ended December 31, 2006, respectively. These costs primarily relate to professional fees and are a component of  “office and general” and in 2006 $5.0 million relates to compensation for former employees for the value of stock options that expired during the period that the Company’s equity compensation plans were suspended, which is a component of “salary and related”. In addition, we have incurred costs related to litigation, the informal investigation by the SEC and the investigation by the United States Attorney for the Southern District of New York.

 

We expect to continue to incur significant professional fees related to the ongoing stock option investigation.  While we cannot quantify or estimate the timing of these costs throughout 2008, they primarily relate to legal fees paid on behalf of former employees and former members of senior management, fees paid in defense of shareholder litigation and potential fines, damages or settlements.

 

Severance

 

Included in our operating results for the year ended December 31, 2007, is approximately $15.8 million of severance charges related to executive officers who departed the Company in the second quarter of 2007.  Of the $15.8 million, approximately $12.8 million is non-cash and relates to the acceleration of equity awards.  The severance is recorded as component of “salaries and related” and the acceleration of equity awards is recorded as a component of “amortization of restricted stock and RSU’s” in our Financial Supplement.

 

Restructuring Actions

 

On July 30, 2007, we announced a series of strategic restructuring actions that are intended to position us for sustainable long-term growth in the rapidly evolving global online recruitment advertising industry.

 

 

2



 

The restructuring plan includes an anticipated reduction in the current workforce by approximately 800 associates, or 15% of our full-time staff, through 2008. The plan also includes fixed asset write-offs, accelerated depreciation for assets to be phased out, costs relating to the consolidation of certain office facilities, contract termination costs, relocation costs and professional fees. The restructuring plan arose out of a review commencing in the second quarter of 2007 by our current executive management team of our cost structure and organizational structure. The restructuring is intended to realign the structure to permit investment in key areas that will improve the customer experience and foster revenue growth and long-term operating margin expansion.

As a result of the restructuring initiatives, we expect to record a cumulative pre-tax charge within the range of $55 million to $70 million, beginning in the third quarter of 2007 and into 2008.  The breakdown of the expected pre-tax cumulative charge is as follows:

Category

 

Range

 

 

 

 

 

Employee Severance

 

$26 million – $33 million

 

Fixed Asset Write-Offs

 

$6 million – $8 million

 

Accelerated Depreciation

 

$8 million – $11 million

 

Consolidation of Office Facilities

 

$6 million – $8 million

 

Other (contract termination costs, relocation costs and professional fees)

 

$9 million – $10 million

 

 

For the three months and year ended December 31, 2007, we recorded $5.4 million and $16.6 million of expenses for the restructuring actions, respectively, including $14.1 million for employee severance related to approximately 360 associates and with approximately 100 additional voluntary terminations.

 

Security Breach

 

In August 2007, we announced a security breach related to unauthorized access to our resume database.  We have taken measures to remediate the breach and assist any affected customers.  For the three months and year ended December 31, 2007, we recorded $3.4 million and $9.0 million of expenses, respectively, for the remediation of the security breach.  We expect to incur additional costs in 2008; however, the amount and the timing of such costs cannot be estimated.

 

Certain reclassifications of prior year amounts have been made for consistent presentation.

 

(1) 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 proforma adjustments including: ongoing costs associated with the stock option investigations, related litigation and potential fines or settlements (“Stock option investigation”); severance costs for former executive officers incurred in the second quarter of 2007 (“Executive commitments”); costs associated with the remediation of a recent database security breach (“Security Breach”); and the strategic restructuring actions initiated in the third quarter of 2007 (“Restructuring”).  The Company uses these non-GAAP measures for reviewing the ongoing results of the Company’s core business operations and in certain instances, for measuring performance under certain of the Company’s incentive compensation plans. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

 

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.  As a result of the adoption SFAS 123(R) in 2006, free cash flow amounts in 2005 have been adjusted to exclude the income tax benefits on stock option exercises.  Free cash flow is

 

 

3



 

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

 

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

 

 

4



 

 

Monster Worldwide, Inc.

Statements of Operations

(unaudited, in thousands, except per share amounts)

 

 

 

Trended Quarterly Data

 

Year to Date Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary P&L Information

 

Q4 2005

 

Q1 2006

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

12M 2006

 

12M 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers

 

$

192,982

 

$

224,589

 

$

237,190

 

$

244,292

 

$

258,260

 

$

290,223

 

$

291,326

 

$

296,996

 

$

316,877

 

$

964,331

 

$

1,195,422

 

Internet Advertising & Fees

 

30,830

 

32,447

 

37,979

 

41,563

 

40,356

 

38,805

 

39,823

 

40,148

 

37,111

 

152,345

 

155,887

 

Revenue

 

223,812

 

257,036

 

275,169

 

285,855

 

298,616

 

329,028

 

331,149

 

337,144

 

353,988

 

1,116,676

 

1,351,309

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salary and related

 

85,819

 

89,524

 

95,439

 

103,895

 

112,172

 

117,985

 

129,037

 

125,275

 

129,100

 

401,030

 

501,397

 

Office and general

 

31,405

 

36,973

 

32,672

 

42,025

 

50,007

 

60,436

 

53,033

 

58,754

 

58,062

 

161,677

 

230,285

 

Marketing and promotion

 

53,633

 

65,799

 

73,212

 

68,077

 

66,418

 

78,069

 

78,045

 

76,348

 

80,697

 

273,506

 

313,159

 

Restructuring and other special charges

 

 

 

 

 

 

 

 

11,155

 

5,442

 

 

16,597

 

Depreciation expense

 

6,292

 

7,097

 

8,586

 

7,323

 

7,895

 

8,285

 

9,827

 

10,886

 

11,068

 

30,901

 

40,066

 

Amortization of restricted stock and RSU Plan

 

693

 

2,029

 

3,423

 

2,943

 

2,424

 

4,176

 

17,069

 

2,871

 

3,623

 

10,819

 

27,739

 

Non-cash stock option expense

 

425

 

 

 

 

 

186

 

47

 

104

 

105

 

 

442

 

Amortization of intangibles

 

2,832

 

2,675

 

2,569

 

1,765

 

1,870

 

1,696

 

1,716

 

1,739

 

1,760

 

8,879

 

6,911

 

Operating expenses

 

181,099

 

204,097

 

215,901

 

226,028

 

240,786

 

270,833

 

288,774

 

287,132

 

289,857

 

886,812

 

1,136,596

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

42,713

 

52,939

 

59,268

 

59,827

 

57,830

 

58,195

 

42,375

 

50,012

 

64,131

 

229,864

 

214,713

 

Interest and other, net(1)

 

3,804

 

3,130

 

3,940

 

5,012

 

6,398

 

5,304

 

6,912

 

6,288

 

6,840

 

18,480

 

25,344

 

Income from cont. operations, pre-tax

 

46,517

 

56,069

 

63,208

 

64,839

 

64,228

 

63,499

 

49,287

 

56,300

 

70,971

 

248,344

 

240,057

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

16,028

 

20,411

 

22,077

 

22,692

 

22,481

 

22,352

 

17,406

 

19,998

 

24,843

 

87,661

 

84,599

 

Losses in equity interests, net

 

(2,180

)

(1,241

)

(2,284

)

(2,054

)

(1,517

)

(1,420

)

(2,966

)

(3,074

)

(838

)

(7,096

)

(8,298

)

Income from continuing operations

 

28,309

 

34,417

 

38,847

 

40,093

 

40,230

 

39,727

 

28,915

 

33,228

 

45,290

 

153,587

 

147,160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from disc. operations, net of tax(2)

 

7,840

 

7,845

 

770

 

(123,910

)

(1,155

)

(245

)

(299

)

73

 

(290

)

(116,450

)

(761

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

36,149

 

$

42,262

 

$

39,617

 

$

(83,817

)

$

39,075

 

$

39,482

 

$

28,616

 

$

33,301

 

$

45,000

 

$

37,137

 

$

146,399

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.23

 

$

0.27

 

$

0.30

 

$

0.31

 

$

0.31

 

$

0.31

 

$

0.22

 

$

0.26

 

$

0.36

 

$

1.20

 

$

1.14

 

Net income (loss)

 

$

0.29

 

$

0.33

 

$

0.31

 

$

(0.65

)

$

0.30

 

$

0.30

 

$

0.22

 

$

0.26

 

$

0.36

 

$

0.29

 

$

1.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.22

 

$

0.26

 

$

0.29

 

$

0.31

 

$

0.31

 

$

0.30

 

$

0.22

 

$

0.25

 

$

0.36

 

$

1.17

 

$

1.13

 

Net income (loss)

 

$

0.28

 

$

0.32

 

$

0.30

 

$

(0.64

)

$

0.30

 

$

0.30

 

$

0.21

 

$

0.25

 

$

0.36

 

$

0.28

 

$

1.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted avg. shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic shares

 

124,348

 

126,753

 

128,551

 

128,484

 

128,489

 

129,653

 

130,542

 

129,499

 

125,504

 

128,077

 

128,785

 

Diluted shares

 

127,418

 

130,619

 

132,009

 

130,827

 

131,209

 

132,464

 

133,121

 

130,757

 

126,704

 

131,247

 

130,755

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global employees (ones)

 

3,537

 

3,785

 

4,214

 

4,632

 

4,854

 

5,321

 

5,476

 

5,149

 

5,146

 

4,854

 

5,146

 

Annualized revenue per average employee

 

$

260.1

 

$

280.8

 

$

275.2

 

$

258.5

 

$

251.8

 

$

258.7

 

$

245.4

 

$

253.8

 

$

275.1

 

$

251.8

 

$

275.1

 

 


(1) - Interest and other, net includes a $2.1 million gain from the sale of a long-term investment and a $1.3 million gain related to an early repayment of a note associated with a disposed company in the fourth quarters of 2005 and 2006, respectively.

(2) - 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.

 

5



 

Monster Worldwide, Inc.
Trailing Twelve Months Statistics - Statements of Operations
(unaudited, in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary P&L Information

 

Q4 2005

 

Q1 2006

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers

 

$

708,718

 

$

768,534

 

$

833,692

 

$

899,053

 

$

964,331

 

$

1,029,965

 

$

1,084,101

 

$

1,136,805

 

$

1,195,422

 

Internet Advertising & Fees

 

109,553

 

117,239

 

129,159

 

142,819

 

152,345

 

158,703

 

160,547

 

159,132

 

155,887

 

Revenue

 

818,271

 

885,773

 

962,851

 

1,041,872

 

1,116,676

 

1,188,668

 

1,244,648

 

1,295,937

 

1,351,309

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salary and related

 

316,431

 

334,673

 

352,602

 

374,677

 

401,030

 

429,491

 

463,089

 

484,469

 

501,397

 

Office and general

 

118,444

 

126,344

 

129,881

 

143,075

 

161,677

 

185,140

 

205,501

 

222,230

 

230,285

 

Marketing and promotion

 

194,721

 

212,568

 

238,718

 

260,721

 

273,506

 

285,776

 

290,609

 

298,880

 

313,159

 

Restructuring and other special charges

 

 

 

 

 

 

 

 

11,155

 

16,597

 

Depreciation expense

 

23,838

 

25,176

 

27,942

 

29,298

 

30,901

 

32,089

 

33,330

 

36,893

 

40,066

 

Amortization of restricted stock and RSU Plan

 

2,735

 

3,796

 

6,685

 

9,088

 

10,819

 

12,966

 

26,612

 

26,540

 

27,739

 

Non-cash stock option expense

 

11,885

 

9,164

 

7,026

 

425

 

 

186

 

233

 

337

 

442

 

Amortization of intangibles

 

9,585

 

9,933

 

10,255

 

9,841

 

8,879

 

7,900

 

7,047

 

7,021

 

6,911

 

Operating expenses

 

677,639

 

721,654

 

773,109

 

827,125

 

886,812

 

953,548

 

1,026,421

 

1,087,525

 

1,136,596

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

140,632

 

164,119

 

189,742

 

214,747

 

229,864

 

235,120

 

218,227

 

208,412

 

214,713

 

Interest and other, net

 

4,830

 

8,351

 

11,558

 

15,886

 

18,480

 

20,654

 

23,626

 

24,902

 

25,344

 

Income from cont. operations, pre-tax

 

145,462

 

172,470

 

201,300

 

230,633

 

248,344

 

255,774

 

241,853

 

233,314

 

240,057

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

51,641

 

61,600

 

71,531

 

81,208

 

87,661

 

89,602

 

84,931

 

82,237

 

84,599

 

Losses in equity interests, net

 

(3,397

)

(4,429

)

(6,346

)

(7,759

)

(7,096

)

(7,275

)

(7,957

)

(8,977

)

(8,298

)

Income from continuing operations

 

90,424

 

106,441

 

123,423

 

141,666

 

153,587

 

158,897

 

148,965

 

142,100

 

147,160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

7,770

 

16,053

 

20,671

 

(107,455

)

(116,450

)

(124,540

)

(125,609

)

(1,626

)

(761

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

98,194

 

$

122,494

 

$

144,094

 

$

34,211

 

$

37,137

 

$

34,357

 

$

23,356

 

$

140,474

 

$

146,399

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.74

 

$

0.86

 

$

0.98

 

$

1.12

 

$

1.20

 

$

1.23

 

$

1.15

 

$

1.10

 

$

1.14

 

Net income

 

$

0.80

 

$

0.99

 

$

1.15

 

$

0.27

 

$

0.29

 

$

0.27

 

$

0.18

 

$

1.08

 

$

1.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.72

 

$

0.84

 

$

0.96

 

$

1.09

 

$

1.17

 

$

1.21

 

$

1.13

 

$

1.08

 

$

1.13

 

Net income

 

$

0.79

 

$

0.97

 

$

1.12

 

$

0.26

 

$

0.28

 

$

0.26

 

$

0.18

 

$

1.07

 

$

1.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted avg. shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic shares

 

122,055

 

123,570

 

125,445

 

127,034

 

128,077

 

128,794

 

129,292

 

129,546

 

128,785

 

Diluted shares

 

125,038

 

126,494

 

128,701

 

130,218

 

131,247

 

131,627

 

131,905

 

131,888

 

130,755

 

 

6



 

Monster Worldwide, Inc.
Statements of Cash Flows
(unaudited, in thousands, except per share amounts)

 

 

 

Trended Quarterly Data

 

Year to Date Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2005

 

Q1 2006

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

12M 2006

 

12M 2007

 

Cash flows provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

36,149

 

$

42,262

 

$

39,617

 

$

(83,817

)

$

39,075

 

$

39,482

 

$

28,616

 

$

33,301

 

$

45,000

 

$

37,137

 

$

146,399

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Income) loss from discontinued operations, net of tax

 

(7,840

)

(7,845

)

(770

)

123,910

 

1,155

 

245

 

299

 

(73

)

290

 

116,450

 

761

 

Depreciation and amortization

 

9,124

 

9,772

 

11,155

 

9,088

 

9,765

 

9,981

 

11,543

 

12,625

 

12,828

 

39,780

 

46,977

 

Provision for doubtful accounts

 

1,807

 

2,824

 

1,840

 

1,841

 

2,550

 

2,483

 

2,630

 

3,340

 

4,453

 

9,055

 

12,906

 

Non cash compensation

 

640

 

2,029

 

3,423

 

2,943

 

2,424

 

4,362

 

17,116

 

2,975

 

3,728

 

10,819

 

28,181

 

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

 

973

 

996

 

858

 

 

 

 

 

 

 

1,854

 

 

Deferred income taxes

 

9,762

 

6,736

 

2,593

 

(815

)

2,267

 

2,100

 

(7,605

)

2,808

 

(2,762

)

10,781

 

(5,459

)

Loss (gain) on disposal of assets

 

 

 

 

 

 

 

(572

)

(2

)

3

 

 

(571

)

Loss in equity interests and other, net

 

2,641

 

1,235

 

2,284

 

2,056

 

1,521

 

1,420

 

2,966

 

3,074

 

838

 

7,096

 

8,298

 

Changes in assets and liabilities, net of business combinations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(75,510

)

(3,062

)

(21,388

)

(24,072

)

(122,790

)

25,170

 

(4,804

)

13,699

 

(101,843

)

(171,312

)

(67,778

)

Prepaid and other

 

(8,617

)

(1,492

)

(8,248

)

(14,542

)

2,465

 

(2

)

(4,202

)

(8,007

)

(12,766

)

(21,817

)

(24,977

)

Deferred revenue

 

79,779

 

15,900

 

5,544

 

(2,328

)

97,440

 

5,691

 

2,360

 

(17,515

)

89,650

 

116,556

 

80,186

 

Accounts payable, accrued expenses and other liabilities

 

(6,443

)

8,377

 

24,478

 

48,418

 

11,322

 

(8,950

)

7,163

 

26,536

 

27,091

 

92,595

 

51,840

 

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

 

6,304

 

4,326

 

1,342

 

16,168

 

(2,635

)

(2,983

)

(2,349

)

74

 

(2,326

)

19,201

 

(7,584

)

Total adjustments

 

12,620

 

39,796

 

23,111

 

162,667

 

5,484

 

39,517

 

24,545

 

39,534

 

19,184

 

231,058

 

122,780

 

Net cash provided by operating activities

 

48,769

 

82,058

 

62,728

 

78,850

 

44,559

 

78,999

 

53,161

 

72,835

 

64,184

 

268,195

 

269,179

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows provided by (used for) investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

(14,983

)

(9,416

)

(16,127

)

(12,825

)

(17,238

)

(21,612

)

(15,602

)

(10,601

)

(16,240

)

(55,606

)

(64,055

)

Purchase of marketable securities

 

(118,461

)

(334,990

)

(608,773

)

(404,703

)

(373,959

)

(365,031

)

(317,555

)

(327,250

)

(415,025

)

(1,722,425

)

(1,424,861

)

Sale and maturities of marketable securities

 

 

238,001

 

406,537

 

321,390

 

342,351

 

311,662

 

277,903

 

446,418

 

478,068

 

1,308,279

 

1,514,051

 

Payments for acquisitions and intangible assets, net of cash acquired

 

(96,598

)

(1,450

)

(16,832

)

(631

)

(688

)

(1,664

)

(142

)

(133

)

(610

)

(19,601

)

(2,549

)

Investment in unconsolidated affiliate

 

 

(19,936

)

 

 

 

 

 

 

 

(19,936

)

 

Sale of long-term investment

 

2,713

 

 

 

 

 

 

 

 

 

 

 

Net proceeds from sale of business

 

1,000

 

 

32,950

 

36,205

 

 

 

 

 

 

69,155

 

 

Cash funded to equity investee

 

 

 

(4,800

)

(2,400

)

(2,800

)

(2,500

)

(1,600

)

(5,900

)

 

(10,000

)

(10,000

)

Net cash used for investing activities of discontinued operations

 

(727

)

(2,469

)

 

(455

)

 

 

 

 

 

(2,924

)

 

Net cash provided by (used for) investing activities

 

(227,056

)

(130,260

)

(207,045

)

(63,419

)

(52,334

)

(79,145

)

(56,996

)

102,534

 

46,193

 

(453,058

)

12,586

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows provided by financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net borrowings (payments) under capital lease obligations

 

323

 

(276

)

(87

)

(130

)

322

 

 

 

(58

)

(42

)

(171

)

(100

)

Payments on acquisition debt

 

 

(22,205

)

(7,480

)

 

440

 

(16,310

)

(5,552

)

 

(1,500

)

(29,245

)

(23,362

)

Proceeds from the exercise of employee stock options

 

57,317

 

59,594

 

31,571

 

60

 

1,038

 

43,395

 

10,006

 

651

 

838

 

92,263

 

54,890

 

Excess tax benefits from stock option exercises

 

12,180

 

11,275

 

6,049

 

16

 

632

 

6,486

 

5,857

 

1,611

 

(155

)

17,972

 

13,799

 

Repurchase of common stock

 

(7,906

)

(8,537

)

(5,879

)

 

(318

)

(3,326

)

(6,716

)

(154,692

)

(97,761

)

(14,734

)

(262,495

)

Structured stock repurchase

 

 

(22,758

)

 

 

 

 

 

 

 

(22,758

)

 

Net cash provided by (used for) financing activities

 

61,914

 

17,093

 

24,174

 

(54

)

2,114

 

30,245

 

3,595

 

(152,488

)

(98,620

)

43,327

 

(217,268

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effects of exchange rates on cash

 

(739

)

547

 

1,167

 

352

 

1,553

 

963

 

1,037

 

3,795

 

772

 

3,619

 

6,567

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

(117,112

)

(30,562

)

(118,976

)

15,729

 

(4,108

)

31,062

 

797

 

26,676

 

12,529

 

(137,917

)

71,064

 

Cash and cash equivalents, beginning of period

 

313,709

 

196,597

 

166,035

 

47,059

 

62,788

 

58,680

 

89,742

 

90,539

 

117,215

 

196,597

 

58,680

 

Cash and cash equivalents, end of period

 

$

196,597

 

$

166,035

 

$

47,059

 

$

62,788

 

$

58,680

 

$

89,742

 

$

90,539

 

$

117,215

 

$

129,744

 

$

58,680

 

$

129,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non - GAAP Free cash flow(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

48,769

 

$

82,058

 

$

62,728

 

$

78,850

 

$

44,559

 

$

78,999

 

$

53,161

 

$

72,835

 

$

64,184

 

$

268,195

 

$

269,179

 

Less: Capital expenditures

 

(14,983

)

(9,416

)

(16,127

)

(12,825

)

(17,238

)

(21,612

)

(15,602

)

(10,601

)

(16,240

)

(55,606

)

(64,055

)

Free cash flow

 

$

33,786

 

$

72,642

 

$

46,601

 

$

66,025

 

$

27,321

 

$

57,387

 

$

37,559

 

$

62,234

 

$

47,944

 

$

212,589

 

$

205,124

 


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

 

7



 

Monster Worldwide, Inc.

Consolidated Condensed Balance Sheets

(unaudited, in thousands, except selected financial ratios)

 

 

 

Trended Quarterly Data

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2005

 

Q1 2006

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

196,597

 

$

166,035

 

$

47,059

 

$

62,788

 

$

58,680

 

$

89,742

 

$

90,539

 

$

117,215

 

$

129,744

 

Available-for-sale securities

 

123,747

 

221,019

 

422,972

 

506,285

 

537,893

 

591,262

 

630,914

 

511,746

 

448,703

 

Accounts receivable, net

 

258,848

 

259,086

 

278,870

 

324,507

 

444,747

 

417,329

 

419,033

 

401,994

 

499,854

 

Prepaid and other

 

54,651

 

58,242

 

63,565

 

77,937

 

82,488

 

89,650

 

100,233

 

101,950

 

106,664

 

Current assets of discontinued operations

 

139,216

 

129,844

 

90,864

 

 

 

 

 

 

 

Total current assets

 

773,059

 

834,226

 

903,330

 

971,517

 

1,123,808

 

1,187,983

 

1,240,719

 

1,132,905

 

1,184,965

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

80,977

 

83,302

 

89,243

 

94,150

 

102,402

 

115,729

 

122,077

 

121,795

 

126,962

 

Goodwill

 

521,717

 

531,497

 

567,677

 

570,272

 

589,041

 

590,553

 

595,850

 

614,437

 

615,334

 

Intangibles, net

 

55,602

 

53,509

 

54,569

 

53,067

 

51,695

 

50,262

 

48,781

 

48,272

 

46,516

 

Investment in unconsolidated affiliates

 

46,758

 

65,480

 

63,196

 

61,142

 

59,625

 

57,748

 

54,782

 

51,708

 

50,871

 

Other assets

 

29,755

 

30,363

 

46,018

 

49,156

 

43,232

 

55,540

 

48,360

 

52,513

 

53,162

 

Long-term assets of discontinued operations

 

170,847

 

171,191

 

139,266

 

 

 

 

 

 

 

Total assets

 

$

1,678,715

 

$

1,769,568

 

$

1,863,299

 

$

1,799,304

 

$

1,969,803

 

$

2,057,815

 

$

2,110,569

 

$

2,021,630

 

$

2,077,810

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable, accrued expenses and other

 

$

249,464

 

$

255,812

 

$

288,031

 

$

350,250

 

$

358,850

 

$

279,032

 

$

278,553

 

$

298,023

 

$

304,145

 

Deferred revenue

 

327,429

 

343,329

 

349,034

 

346,706

 

444,145

 

449,836

 

452,196

 

434,682

 

524,331

 

Current portion of long-term debt

 

31,378

 

21,789

 

18,635

 

18,507

 

23,249

 

7,074

 

1,660

 

1,684

 

184

 

Current liabilities of discontinued operations

 

97,674

 

88,855

 

46,028

 

 

 

 

 

 

 

Total current liabilities

 

705,945

 

709,785

 

701,728

 

715,463

 

826,244

 

735,942

 

732,409

 

734,389

 

828,660

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

15,678

 

3,093

 

2,185

 

2,152

 

415

 

395

 

312

 

261

 

231

 

Long-term income taxes payable

 

 

 

 

 

 

84,480

 

89,910

 

94,418

 

111,108

 

Other liabilities

 

23,615

 

30,481

 

34,812

 

34,454

 

33,459

 

39,496

 

30,169

 

29,799

 

21,310

 

Long-term liabilities of discontinued operations

 

137

 

 

 

 

 

 

 

 

 

Total liabilities

 

745,375

 

743,359

 

738,725

 

752,069

 

860,118

 

860,313

 

852,800

 

858,867

 

961,309

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock and class B common stock

 

127

 

129

 

131

 

131

 

131

 

131

 

131

 

131

 

133

 

Additional paid-in capital

 

1,548,936

 

1,592,077

 

1,629,378

 

1,632,246

 

1,636,023

 

1,687,407

 

1,713,670

 

1,562,646

 

1,468,808

 

Accumulated other comprehensive income

 

35,515

 

42,979

 

64,424

 

68,034

 

87,632

 

87,708

 

93,096

 

115,813

 

118,387

 

Retained deficit

 

(651,238

)

(608,976

)

(569,359

)

(653,176

)

(614,101

)

(577,744

)

(549,128

)

(515,827

)

(470,827

)

Total stockholders’ equity

 

933,340

 

1,026,209

 

1,124,574

 

1,047,235

 

1,109,685

 

1,197,502

 

1,257,769

 

1,162,763

 

1,116,501

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

1,678,715

 

$

1,769,568

 

$

1,863,299

 

$

1,799,304

 

$

1,969,803

 

$

2,057,815

 

$

2,110,569

 

$

2,021,630

 

$

2,077,810

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

– Annualized return on equity

 

16.3

%

17.3

%

14.7

%

-30.9

%

14.5

%

13.7

%

9.3

%

11.0

%

15.8

%

– Book value per share

 

$

7.44

 

$

8.01

 

$

8.75

 

$

8.15

 

$

8.63

 

$

9.19

 

$

9.60

 

$

9.19

 

$

9.02

 

– Cash and marketable securities per share

 

$

2.55

 

$

3.02

 

$

3.66

 

$

4.43

 

$

4.64

 

$

5.23

 

$

5.51

 

$

4.97

 

$

4.67

 


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

 

8



 

Monster Worldwide, Inc.

Segment Information and Margin Analysis - Non-GAAP

(unaudited, in thousands)

 

 

 

Trended Quarterly Data

 

Year to Date Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2005

 

Q1 2006

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

12M 2006

 

12M 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment OIBDA(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers - North America

 

$

49,974

 

$

58,652

 

$

61,337

 

$

62,114

 

$

64,984

 

$

71,150

 

$

60,845

 

$

57,522

 

$

59,147

 

$

247,087

 

$

248,664

 

Monster Careers - International

 

3,580

 

4,724

 

7,064

 

8,248

 

13,001

 

12,594

 

17,362

 

12,896

 

29,980

 

33,037

 

72,832

 

Monster Careers OIBDA(1)

 

53,554

 

63,376

 

68,401

 

70,362

 

77,985

 

83,744

 

78,207

 

70,418

 

89,127

 

280,124

 

321,496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet Advertising & Fees OIBDA(1)

 

11,915

 

11,608

 

14,235

 

13,504

 

12,849

 

6,439

 

7,750

 

5,111

 

2,592

 

52,196

 

21,892

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Monster OIBDA(1)

 

$

65,469

 

$

74,984

 

$

82,636

 

$

83,866

 

$

90,834

 

$

90,183

 

$

85,957

 

$

75,529

 

$

91,719

 

$

332,320

 

$

343,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses before D&A(1)

 

$

(12,514

)

$

(10,244

)

$

(8,790

)

$

(12,008

)

$

(20,815

)

$

(17,645

)

$

(14,923

)

$

(9,917

)

$

(11,032

)

$

(51,857

)

$

(53,517

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proforma operating income(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers - North America

 

$

45,769

 

$

54,559

 

$

55,597

 

$

57,193

 

$

59,853

 

$

65,878

 

$

55,029

 

$

59,430

 

$

56,482

 

$

227,202

 

$

236,819

 

Monster Careers - International

 

285

 

765

 

2,003

 

4,997

 

9,658

 

7,961

 

12,055

 

13,589

 

28,699

 

17,423

 

62,304

 

Monster Careers Proforma operating income(1)

 

46,054

 

55,324

 

57,600

 

62,190

 

69,511

 

73,839

 

67,084

 

73,019

 

85,181

 

244,625

 

299,123

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet Advertising & Fees ProForma operating income(1)

 

10,656

 

9,486

 

12,563

 

11,843

 

11,170

 

4,304

 

5,211

 

4,419

 

1,350

 

45,062

 

15,284

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Monster Proforma income(1)

 

$

56,710

 

$

64,810

 

$

70,163

 

$

74,033

 

$

80,681

 

$

78,143

 

$

72,295

 

$

77,438

 

$

86,531

 

$

289,687

 

$

314,407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Proforma expenses(1)

 

$

(13,997

)

$

(11,871

)

$

(10,270

)

$

(10,118

)

$

(9,285

)

$

(10,121

)

$

(8,778

)

$

(8,046

)

$

(12,177

)

$

(41,544

)

$

(39,122

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating income:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers - North America

 

$

45,769

 

$

54,559

 

$

55,597

 

$

57,193

 

$

59,853

 

$

65,878

 

$

54,579

 

$

51,455

 

$

52,950

 

$

227,202

 

$

224,862

 

Monster Careers - International

 

285

 

765

 

2,003

 

4,997

 

9,658

 

7,961

 

12,055

 

7,344

 

24,753

 

17,423

 

52,113

 

Monster Careers operating income

 

46,054

 

55,324

 

57,600

 

62,190

 

69,511

 

73,839

 

66,634

 

58,799

 

77,703

 

244,625

 

276,975

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet Advertising & Fees operating income

 

10,656

 

9,486

 

12,563

 

11,843

 

11,170

 

4,304

 

5,211

 

2,502

 

75

 

45,062

 

12,092

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Monster operating income

 

$

56,710

 

$

64,810

 

$

70,163

 

$

74,033

 

$

80,681

 

$

78,143

 

$

71,845

 

$

61,301

 

$

77,778

 

$

289,687

 

$

289,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses

 

$

(13,997

)

$

(11,871

)

$

(10,895

)

$

(14,206

)

$

(22,851

)

$

(19,948

)

$

(29,470

)

$

(11,289

)

$

(13,647

)

$

(59,823

)

$

(74,354

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margin Analysis:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers - North America OIBDA margin

 

36.3

%

36.7

%

37.7

%

37.2

%

38.6

%

38.7

%

34.9

%

32.8

%

34.1

%

37.5

%

35.2

%

Monster Careers - North America Proforma operating margin

 

33.2

%

34.1

%

34.1

%

34.3

%

35.6

%

35.8

%

31.5

%

33.9

%

32.5

%

34.5

%

33.5

%

Monster Careers - North America operating margin

 

33.2

%

34.1

%

34.1

%

34.3

%

35.6

%

35.8

%

31.3

%

29.4

%

30.5

%

34.5

%

31.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers - International OIBDA margin

 

6.5

%

7.3

%

9.5

%

10.7

%

14.5

%

11.9

%

14.9

%

10.6

%

20.9

%

10.8

%

14.9

%

Monster Careers - International Proforma operating margin

 

0.5

%

1.2

%

2.7

%

6.5

%

10.7

%

7.5

%

10.3

%

11.2

%

20.0

%

5.7

%

12.8

%

Monster Careers - International operating margin

 

0.5

%

1.2

%

2.7

%

6.5

%

10.7

%

7.5

%

10.3

%

6.0

%

17.3

%

5.7

%

10.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers OIBDA margin

 

27.8

%

28.2

%

28.8

%

28.8

%

30.2

%

28.9

%

26.8

%

23.7

%

28.1

%

29.0

%

26.9

%

Monster Careers Proforma operating margin

 

23.9

%

24.6

%

24.3

%

25.5

%

26.9

%

25.4

%

23.0

%

24.6

%

26.9

%

25.4

%

25.0

%

Monster Careers operating margin

 

23.9

%

24.6

%

24.3

%

25.5

%

26.9

%

25.4

%

22.9

%

19.8

%

24.5

%

25.4

%

23.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet Advertising & Fees OIBDA margin

 

38.6

%

35.8

%

37.5

%

32.5

%

31.8

%

16.6

%

19.5

%

12.7

%

7.0

%

34.3

%

14.0

%

Internet Advertising & Fees Proforma operating margin

 

34.6

%

29.2

%

33.1

%

28.5

%

27.7

%

11.1

%

13.1

%

11.0

%

3.6

%

29.6

%

9.8

%

Internet Advertising & Fees operating margin

 

34.6

%

29.2

%

33.1

%

28.5

%

27.7

%

11.1

%

13.1

%

6.2

%

0.2

%

29.6

%

7.8

%


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

 

9



 

Monster Worldwide, Inc.

Statements of Operations

(unaudited)

 

 

 

Trended Quarterly Data

 

Year to Date Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary P&L Information

 

Q4 2005

 

Q1 2006

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

12M 2006

 

12M 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers

 

86.2

%

87.4

%

86.2

%

85.5

%

86.5

%

88.2

%

88.0

%

88.1

%

89.5

%

86.4

%

88.5

%

Internet Advertising & Fees

 

13.8

%

12.6

%

13.8

%

14.5

%

13.5

%

11.8

%

12.0

%

11.9

%

10.5

%

13.6

%

11.5

%

Revenue

 

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salary and related

 

38.3

%

34.8

%

34.7

%

36.3

%

37.6

%

35.9

%

39.0

%

37.2

%

36.5

%

35.9

%

37.1

%

Office and general

 

14.0

%

14.4

%

11.9

%

14.7

%

16.7

%

18.4

%

16.0

%

17.4

%

16.4

%

14.5

%

17.0

%

Marketing and promotion

 

24.0

%

25.6

%

26.6

%

23.8

%

22.2

%

23.7

%

23.6

%

22.6

%

22.8

%

24.5

%

23.2

%

Restructuring and other special charges

 

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

3.3

%

1.5

%

0.0

%

1.2

%

Depreciation expense

 

2.8

%

2.8

%

3.1

%

2.6

%

2.6

%

2.5

%

3.0

%

3.2

%

3.1

%

2.8

%

3.0

%

Amortization of restricted stock and RSU Plan

 

0.3

%

0.8

%

1.2

%

1.0

%

0.8

%

1.3

%

5.2

%

0.9

%

1.0

%

1.0

%

2.1

%

Non-cash stock option expense

 

0.2

%

0.0

%

0.0

%

0.0

%

0.0

%

0.1

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

Amortization of intangibles

 

1.3

%

1.0

%

0.9

%

0.6

%

0.6

%

0.5

%

0.5

%

0.5

%

0.5

%

0.8

%

0.5

%

Operating expenses

 

80.9

%

79.4

%

78.5

%

79.1

%

80.6

%

82.3

%

87.2

%

85.2

%

81.9

%

79.4

%

84.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

19.1

%

20.6

%

21.5

%

20.9

%

19.4

%

17.7

%

12.8

%

14.8

%

18.1

%

20.6

%

15.9

%

Interest and other, net

 

1.7

%

1.2

%

1.4

%

1.8

%

2.1

%

1.6

%

2.1

%

1.9

%

1.9

%

1.7

%

1.9

%

Income from cont. operations, pre-tax

 

20.8

%

21.8

%

23.0

%

22.7

%

21.5

%

19.3

%

14.9

%

16.7

%

20.0

%

22.2

%

17.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

7.2

%

7.9

%

8.0

%

7.9

%

7.5

%

6.8

%

5.3

%

5.9

%

7.0

%

7.9

%

6.3

%

Losses in equity interests, net

 

-1.0

%

-0.5

%

-0.8

%

-0.7

%

-0.5

%

-0.4

%

-0.9

%

-0.9

%

-0.2

%

-0.6

%

-0.6

%

Income from continuing operations

 

12.6

%

13.4

%

14.1

%

14.0

%

13.5

%

12.1

%

8.7

%

9.9

%

12.8

%

13.8

%

10.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

3.5

%

3.1

%

0.3

%

-43.3

%

-0.4

%

-0.1

%

-0.1

%

0.0

%

-0.1

%

-10.4

%

-0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

16.2

%

16.4

%

14.4

%

-29.3

%

13.1

%

12.0

%

8.6

%

9.9

%

12.7

%

3.3

%

10.8

%

 

10



 

 

Monster Worldwide, Inc.

Statements of Operations - Reconciliation of Non-GAAP Measures

(unaudited, in thousands, except per share amounts)

 

 

 

Trended Quarterly Data

 

Year to Date Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary P&L Information

 

Q4 2005

 

Q1 2006

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

12M 2006

 

12M 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OIBDA (1)

 

$

52,955

 

$

64,740

 

$

73,846

 

$

71,858

 

$

70,019

 

$

72,538

 

$

71,034

 

$

65,612

 

$

80,687

 

$

280,463

 

$

289,871

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

 

6,292

 

7,097

 

8,586

 

7,323

 

7,895

 

8,285

 

9,827

 

10,886

 

11,068

 

30,901

 

40,066

 

Amortization of restricted stock and RSU Plan

 

693

 

2,029

 

3,423

 

2,943

 

2,424

 

4,176

 

17,069

 

2,871

 

3,623

 

10,819

 

27,739

 

Non-cash stock option expense

 

425

 

 

 

 

 

186

 

47

 

104

 

105

 

 

442

 

Amortization of intangibles

 

2,832

 

2,675

 

2,569

 

1,765

 

1,870

 

1,696

 

1,716

 

1,739

 

1,760

 

8,879

 

6,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

42,713

 

$

52,939

 

$

59,268

 

$

59,827

 

$

57,830

 

$

58,195

 

$

42,375

 

$

50,012

 

$

64,131

 

$

229,864

 

$

214,713

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proforma operating income (1)

 

$

42,713

 

$

52,939

 

$

59,893

 

$

63,915

 

$

71,396

 

$

68,022

 

$

63,517

 

$

69,392

 

$

74,354

 

$

248,143

 

$

275,285

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Executive Commitments

 

 

 

 

 

 

 

15,811

 

 

 

 

15,811

 

Stock option investigation

 

 

 

625

 

4,088

 

13,566

 

9,827

 

5,331

 

2,571

 

1,392

 

18,279

 

19,121

 

Security breach

 

 

 

 

 

 

 

 

5,654

 

3,389

 

 

9,043

 

Realignment program

 

 

 

 

 

 

 

 

11,155

 

5,442

 

 

16,597

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

42,713

 

$

52,939

 

$

59,268

 

$

59,827

 

$

57,830

 

$

58,195

 

$

42,375

 

$

50,012

 

$

64,131

 

$

229,864

 

$

214,713

 

 


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

 

11