EX-99.2 3 a08-13057_1ex99d2.htm EX-99.2

Exhibit 99.2

 

 

 

FINANCIAL SUPPLEMENT

 

MARCH 31, 2008

 

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 periods subsequent to December 31, 2005.

 

Professional Fees

 

For the three months ended March 31, 2008, we recorded $3.0 million of professional fees as a direct result of the ongoing stock option investigation. In addition, approximately $9.8 million of professional fees related to the stock option investigation were included in three months ended March 31, 2007.  These costs primarily relate to professional fees and are a component of “office and general”. 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.

 

2



 

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.

 

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.

 

For the three months ended March 31, 2008, we recorded $6.9 million of restructuring costs, primarily related to severance.

 

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 ended March 31, 2008, we recorded $0.5 million for the remediation of the security breach.

 

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 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 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, amortization of stock based compensation and non-cash costs incurred in connection with the Company’s restructuring program.  The Company considers OIBDA to be an important indicator of its operational strength. This measure eliminates the effects of depreciation, amortization of intangible assets, amortization of stock based compensation and non-cash restructuring costs from period to period, which the Company believes is useful to management and investors in evaluating its

 

3



 

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.

 

(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 + Current marketable securities + Non-current 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

 

Q1 2006

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

Q1 2008

 

3M 2007

 

3M 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers

 

$

224,589

 

$

237,190

 

$

244,292

 

$

258,260

 

$

290,223

 

$

291,326

 

$

296,996

 

$

316,877

 

$

336,810

 

$

290,223

 

$

336,810

 

Internet Advertising & Fees

 

32,447

 

37,979

 

41,563

 

40,356

 

38,805

 

39,823

 

40,148

 

37,111

 

33,556

 

38,805

 

33,556

 

Revenue

 

257,036

 

275,169

 

285,855

 

298,616

 

329,028

 

331,149

 

337,144

 

353,988

 

370,366

 

329,028

 

370,366

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salary and related

 

89,524

 

95,439

 

103,895

 

112,172

 

117,985

 

129,037

 

125,275

 

129,100

 

136,355

 

117,985

 

136,355

 

Office and general

 

36,973

 

32,672

 

42,025

 

50,007

 

60,436

 

53,033

 

58,754

 

58,062

 

62,764

 

60,436

 

62,764

 

Marketing and promotion

 

65,799

 

73,212

 

68,077

 

66,418

 

78,069

 

78,045

 

76,348

 

80,697

 

114,633

 

78,069

 

114,633

 

Restructuring and other special charges

 

 

 

 

 

 

 

11,155

 

5,442

 

6,927

 

 

6,927

 

Depreciation expense

 

7,097

 

8,586

 

7,323

 

7,895

 

8,285

 

9,827

 

10,886

 

11,068

 

11,273

 

8,285

 

11,273

 

Amortization of restricted stock and RSU Plan

 

2,029

 

3,423

 

2,943

 

2,424

 

4,176

 

17,069

 

2,871

 

3,623

 

5,206

 

4,176

 

5,206

 

Non-cash stock option expense

 

 

 

 

 

186

 

47

 

104

 

105

 

127

 

186

 

127

 

Amortization of intangibles

 

2,675

 

2,569

 

1,765

 

1,870

 

1,696

 

1,716

 

1,739

 

1,760

 

1,688

 

1,696

 

1,688

 

Operating expenses

 

204,097

 

215,901

 

226,028

 

240,786

 

270,833

 

288,774

 

287,132

 

289,857

 

338,973

 

270,833

 

338,973

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

52,939

 

59,268

 

59,827

 

57,830

 

58,195

 

42,375

 

50,012

 

64,131

 

31,393

 

58,195

 

31,393

 

Interest and other, net(1)

 

3,130

 

3,940

 

5,012

 

6,398

 

5,304

 

6,912

 

6,288

 

6,840

 

7,400

 

5,304

 

7,400

 

Income from cont. operations, pre-tax

 

56,069

 

63,208

 

64,839

 

64,228

 

63,499

 

49,287

 

56,300

 

70,971

 

38,793

 

63,499

 

38,793

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

20,411

 

22,077

 

22,692

 

22,481

 

22,352

 

17,406

 

19,998

 

24,843

 

14,380

 

22,352

 

14,380

 

Losses in equity interests, net

 

(1,241

)

(2,284

)

(2,054

)

(1,517

)

(1,420

)

(2,966

)

(3,074

)

(838

)

(1,822

)

(1,420

)

(1,822

)

Income from continuing operations

 

34,417

 

38,847

 

40,093

 

40,230

 

39,727

 

28,915

 

33,228

 

45,290

 

22,591

 

39,727

 

22,591

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

7,845

 

770

 

(123,910

)

(1,155

)

(245

)

(299

)

73

 

(290

)

 

(245

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

42,262

 

$

39,617

 

$

(83,817

)

$

39,075

 

$

39,482

 

$

28,616

 

$

33,301

 

$

45,000

 

$

22,591

 

$

39,482

 

$

22,591

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.27

 

$

0.30

 

$

0.31

 

$

0.31

 

$

0.31

 

$

0.22

 

$

0.26

 

$

0.36

 

$

0.18

 

$

0.31

 

$

0.18

 

Net income (loss)

 

$

0.33

 

$

0.31

 

$

(0.65

)

$

0.30

 

$

0.30

 

$

0.22

 

$

0.26

 

$

0.36

 

$

0.18

 

$

0.30

 

$

0.18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.26

 

$

0.29

 

$

0.31

 

$

0.31

 

$

0.30

 

$

0.22

 

$

0.25

 

$

0.36

 

$

0.18

 

$

0.30

 

$

0.18

 

Net income (loss)

 

$

0.32

 

$

0.30

 

$

(0.64

)

$

0.30

 

$

0.30

 

$

0.21

 

$

0.25

 

$

0.36

 

$

0.18

 

$

0.30

 

$

0.18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted avg. shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic shares

 

126,753

 

128,551

 

128,484

 

128,489

 

129,653

 

130,542

 

129,499

 

125,504

 

122,711

 

129,653

 

122,711

 

Diluted shares

 

130,619

 

132,009

 

130,827

 

131,209

 

132,464

 

133,121

 

130,757

 

126,704

 

123,332

 

132,464

 

123,332

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global employees (ones)

 

3,785

 

4,214

 

4,632

 

4,854

 

5,321

 

5,476

 

5,149

 

5,146

 

5,193

 

5,321

 

5,193

 

Annualized revenue per average employee

 

$

280.8

 

$

275.2

 

$

258.5

 

$

251.8

 

$

258.7

 

$

245.4

 

$

253.8

 

$

275.1

 

$

286.6

 

$

258.7

 

$

286.6

 

 


(1) - Interest and other, net includes a $1.3 million gain in the fourth quarter of 2006 related to early repayment of a note associated with a disposed company.

(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.

 



Monster Worldwide, Inc.

Trailing Twelve Months Statistics - Statements of Operations

(unaudited, in thousands, except per share amounts)

 

Summary P&L Information

 

Q1 2006

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

Q1 2008

 

Monster Careers

 

$

768,534

 

$

833,692

 

$

899,053

 

$

964,331

 

$

1,029,965

 

$

1,084,101

 

$

1,136,805

 

$

1,195,422

 

$

1,242,009

 

Internet Advertising & Fees

 

117,239

 

129,159

 

142,819

 

152,345

 

158,703

 

160,547

 

159,132

 

155,887

 

150,638

 

Revenue

 

885,773

 

962,851

 

1,041,872

 

1,116,676

 

1,188,668

 

1,244,648

 

1,295,937

 

1,351,309

 

1,392,647

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salary and related

 

334,673

 

352,602

 

374,677

 

401,030

 

429,491

 

463,089

 

484,469

 

501,397

 

519,767

 

Office and general

 

126,344

 

129,881

 

143,075

 

161,677

 

185,140

 

205,501

 

222,230

 

230,285

 

232,613

 

Marketing and promotion

 

212,568

 

238,718

 

260,721

 

273,506

 

285,776

 

290,609

 

298,880

 

313,159

 

349,723

 

Restructuring and other special charges

 

 

 

 

 

 

 

11,155

 

16,597

 

23,524

 

Depreciation expense

 

25,176

 

27,942

 

29,298

 

30,901

 

32,089

 

33,330

 

36,893

 

40,066

 

43,054

 

Amortization of restricted stock and RSU Plan

 

3,796

 

6,685

 

9,088

 

10,819

 

12,966

 

26,612

 

26,540

 

27,739

 

28,769

 

Non-cash stock option expense

 

9,164

 

7,026

 

425

 

 

186

 

233

 

337

 

442

 

383

 

Amortization of intangibles

 

9,933

 

10,255

 

9,841

 

8,879

 

7,900

 

7,047

 

7,021

 

6,911

 

6,903

 

Operating expenses

 

721,654

 

773,109

 

827,125

 

886,812

 

953,548

 

1,026,421

 

1,087,525

 

1,136,596

 

1,204,736

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

164,119

 

189,742

 

214,747

 

229,864

 

235,120

 

218,227

 

208,412

 

214,713

 

187,911

 

Interest and other, net

 

8,351

 

11,558

 

15,886

 

18,480

 

20,654

 

23,626

 

24,902

 

25,344

 

27,440

 

Income from cont. operations, pre-tax

 

172,470

 

201,300

 

230,633

 

248,344

 

255,774

 

241,853

 

233,314

 

240,057

 

215,351

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

61,600

 

71,531

 

81,208

 

87,661

 

89,602

 

84,931

 

82,237

 

84,599

 

76,627

 

Losses in equity interests, net

 

(4,429

)

(6,346

)

(7,759

)

(7,096

)

(7,275

)

(7,957

)

(8,977

)

(8,298

)

(8,700

)

Income from continuing operations

 

106,441

 

123,423

 

141,666

 

153,587

 

158,897

 

148,965

 

142,100

 

147,160

 

130,024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

16,053

 

20,671

 

(107,455

)

(116,450

)

(124,540

)

(125,609

)

(1,626

)

(761

)

(516

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

122,494

 

$

144,094

 

$

34,211

 

$

37,137

 

$

34,357

 

$

23,356

 

$

140,474

 

$

146,399

 

$

129,508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.86

 

$

0.98

 

$

1.12

 

$

1.20

 

$

1.23

 

$

1.15

 

$

1.10

 

$

1.14

 

$

1.02

 

Net income

 

$

0.99

 

$

1.15

 

$

0.27

 

$

0.29

 

$

0.27

 

$

0.18

 

$

1.08

 

$

1.14

 

$

1.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.84

 

$

0.96

 

$

1.09

 

$

1.17

 

$

1.21

 

$

1.13

 

$

1.08

 

$

1.13

 

$

1.01

 

Net income

 

$

0.97

 

$

1.12

 

$

0.26

 

$

0.28

 

$

0.26

 

$

0.18

 

$

1.07

 

$

1.12

 

$

1.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted avg. shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic shares

 

123,570

 

125,445

 

127,034

 

128,077

 

128,794

 

129,292

 

129,546

 

128,785

 

127,064

 

Diluted shares

 

126,494

 

128,701

 

130,218

 

131,247

 

131,627

 

131,905

 

131,888

 

130,755

 

128,479

 

 



Monster Worldwide, Inc.

Statements of Cash Flows

(unaudited, in thousands, except per share amounts)

 

 

 

Trended Quarterly Data

 

Year to Date Data

 

 

 

Q1 2006

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

Q1 2008

 

3M 2007

 

3M 2008

 

Cash flows provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

42,262

 

$

39,617

 

$

(83,817

)

$

39,075

 

$

39,482

 

$

28,616

 

$

33,301

 

$

45,000

 

$

22,591

 

$

39,482

 

$

22,591

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Income) loss from discontinued operations, net of tax

 

(7,845

)

(770

)

123,910

 

1,155

 

245

 

299

 

(73

)

290

 

 

245

 

 

Depreciation and amortization of intangibles

 

9,772

 

11,155

 

9,088

 

9,765

 

9,981

 

11,543

 

12,625

 

12,828

 

12,961

 

9,981

 

12,961

 

Provision for doubtful accounts

 

2,824

 

1,840

 

1,841

 

2,550

 

2,483

 

2,630

 

3,340

 

4,453

 

3,564

 

2,483

 

3,564

 

Non-cash compensation

 

2,029

 

3,423

 

2,943

 

2,424

 

4,362

 

17,116

 

2,975

 

3,728

 

6,495

 

4,362

 

6,495

 

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

 

996

 

858

 

 

 

 

 

 

 

 

 

 

Deferred income taxes

 

6,736

 

2,593

 

(815

)

2,267

 

2,100

 

(7,605

)

2,808

 

(2,762

)

(7,319

)

2,100

 

(7,319

)

Loss (gain) on disposal of assets

 

 

 

 

 

 

(572

)

(2

)

3

 

725

 

 

725

 

Loss in equity interests and other, net

 

1,235

 

2,284

 

2,056

 

1,521

 

1,420

 

2,966

 

3,074

 

838

 

1,822

 

1,420

 

1,822

 

Changes in assets and liabilities, net of business combinations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(3,062

)

(21,388

)

(24,072

)

(122,790

)

25,170

 

(4,804

)

13,699

 

(101,843

)

37,848

 

25,170

 

37,848

 

Prepaid and other

 

(1,492

)

(8,248

)

(14,542

)

2,465

 

(2

)

(4,202

)

(8,007

)

(12,766

)

1,949

 

(2

)

1,949

 

Deferred revenue

 

15,900

 

5,544

 

(2,328

)

97,440

 

5,691

 

2,360

 

(17,515

)

89,650

 

(2,458

)

5,691

 

(2,458

)

Accounts payable, accrued expenses and other liabilities

 

8,377

 

24,478

 

48,418

 

11,322

 

(8,950

)

7,163

 

26,536

 

27,091

 

340

 

(8,950

)

340

 

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

 

4,326

 

1,342

 

16,168

 

(2,635

)

(2,983

)

(2,349

)

74

 

(2,326

)

(161

)

(2,983

)

(161

)

Total adjustments

 

39,796

 

23,111

 

162,667

 

5,484

 

39,517

 

24,545

 

39,534

 

19,184

 

55,766

 

39,517

 

55,766

 

Net cash provided by operating activities

 

82,058

 

62,728

 

78,850

 

44,559

 

78,999

 

53,161

 

72,835

 

64,184

 

78,357

 

78,999

 

78,357

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows provided by (used for) investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

(9,416

)

(16,127

)

(12,825

)

(17,238

)

(21,612

)

(15,602

)

(10,601

)

(16,240

)

(20,559

)

(21,612

)

(20,559

)

Purchase of marketable securities

 

(334,990

)

(608,773

)

(404,703

)

(373,959

)

(365,031

)

(317,555

)

(327,250

)

(415,025

)

(149,249

)

(365,031

)

(149,249

)

Sale and maturities of marketable securities

 

238,001

 

406,537

 

321,390

 

342,351

 

311,662

 

277,903

 

446,418

 

478,068

 

414,453

 

311,662

 

414,453

 

Payments for acquisitions and intangible assets, net of cash acquired

 

(1,450

)

(16,832

)

(631

)

(688

)

(1,664

)

(142

)

(133

)

(610

)

(61,567

)

(1,664

)

(61,567

)

Investment in unconsolidated affiliate

 

(19,936

)

 

 

 

 

 

 

 

 

 

 

Net proceeds from sale of business

 

 

32,950

 

36,205

 

 

 

 

 

 

(5,000

)

 

(5,000

)

Cash funded to equity investee

 

 

(4,800

)

(2,400

)

(2,800

)

(2,500

)

(1,600

)

(5,900

)

 

 

(2,500

)

 

Net cash used for investing activities of discontinued operations

 

(2,469

)

 

(455

)

 

 

 

 

 

 

 

 

Net cash provided by (used for) investing activities

 

(130,260

)

(207,045

)

(63,419

)

(52,334

)

(79,145

)

(56,996

)

102,534

 

46,193

 

178,078

 

(79,145

)

178,078

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows provided by (used for) financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net borrowings (payments) under capital lease obligations and other debt

 

(276

)

(87

)

(130

)

322

 

 

 

(58

)

(42

)

(80

)

 

(80

)

Payments on acquisition debt

 

(22,205

)

(7,480

)

 

440

 

(16,310

)

(5,552

)

 

(1,500

)

 

(16,310

)

 

Proceeds from the exercise of employee stock options

 

59,594

 

31,571

 

60

 

1,038

 

43,395

 

10,006

 

651

 

838

 

418

 

43,395

 

418

 

Excess tax benefits from (provisions for) stock option exercises

 

11,275

 

6,049

 

16

 

632

 

6,486

 

5,857

 

1,611

 

(155

)

(568

)

6,486

 

(568

)

Repurchase of common stock

 

(8,537

)

(5,879

)

 

(318

)

(3,326

)

(6,716

)

(154,692

)

(97,761

)

(79,469

)

(3,326

)

(79,469

)

Structured stock repurchase

 

(22,758

)

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used for) financing activities

 

17,093

 

24,174

 

(54

)

2,114

 

30,245

 

3,595

 

(152,488

)

(98,620

)

(79,699

)

30,245

 

(79,699

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effects of exchange rates on cash

 

547

 

1,167

 

352

 

1,553

 

963

 

1,037

 

3,795

 

772

 

10,256

 

963

 

10,256

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

(30,562

)

(118,976

)

15,729

 

(4,108

)

31,062

 

797

 

26,676

 

12,529

 

186,992

 

31,062

 

186,992

 

Cash and cash equivalents, beginning of period

 

196,597

 

166,035

 

47,059

 

62,788

 

58,680

 

89,742

 

90,539

 

117,215

 

129,744

 

58,680

 

129,744

 

Cash and cash equivalents, end of period

 

$

166,035

 

$

47,059

 

$

62,788

 

$

58,680

 

$

89,742

 

$

90,539

 

$

117,215

 

$

129,744

 

$

316,736

 

$

89,742

 

$

316,736

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non - GAAP Free cash flow (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

82,058

 

$

62,728

 

$

78,850

 

$

44,559

 

$

78,999

 

$

53,161

 

$

72,835

 

$

64,184

 

$

78,357

 

$

78,999

 

$

78,357

 

Less: Capital expenditures

 

(9,416

)

(16,127

)

(12,825

)

(17,238

)

(21,612

)

(15,602

)

(10,601

)

(16,240

)

(20,559

)

(21,612

)

(20,559

)

Free cash flow

 

$

72,642

 

$

46,601

 

$

66,025

 

$

27,321

 

$

57,387

 

$

37,559

 

$

62,234

 

$

47,944

 

$

57,798

 

$

57,387

 

$

57,798

 


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



 

Monster Worldwide, Inc.

Consolidated Condensed Balance Sheets

(unaudited, in thousands, except selected financial ratios)

 

 

 

Trended Quarterly Data

 

 

 

Q1 2006

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

Q1 2008

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

166,035

 

$

47,059

 

$

62,788

 

$

58,680

 

$

89,742

 

$

90,539

 

$

117,215

 

$

129,744

 

$

316,736

 

Available-for-sale securities, current

 

221,019

 

422,972

 

506,285

 

537,893

 

591,262

 

630,914

 

511,746

 

448,703

 

79,236

 

Accounts receivable, net

 

259,086

 

278,870

 

324,507

 

444,747

 

417,329

 

419,033

 

401,994

 

499,854

 

458,447

 

Prepaid and other

 

58,242

 

63,565

 

77,937

 

82,488

 

89,650

 

100,233

 

101,950

 

106,664

 

97,929

 

Current assets of discontinued operations

 

129,844

 

90,864

 

 

 

 

 

 

 

 

Total current assets

 

834,226

 

903,330

 

971,517

 

1,123,808

 

1,187,983

 

1,240,719

 

1,132,905

 

1,184,965

 

952,348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities, non-current

 

 

 

 

 

 

 

 

 

102,716

 

Property and equipment, net

 

83,302

 

89,243

 

94,150

 

102,402

 

115,729

 

122,077

 

121,795

 

126,962

 

141,279

 

Goodwill

 

531,497

 

567,677

 

570,272

 

589,041

 

590,553

 

595,850

 

614,437

 

615,334

 

702,598

 

Intangibles, net

 

53,509

 

54,569

 

53,067

 

51,695

 

50,262

 

48,781

 

48,272

 

46,516

 

45,170

 

Investment in unconsolidated affiliates

 

65,480

 

63,196

 

61,142

 

59,625

 

57,748

 

54,782

 

51,708

 

50,871

 

49,049

 

Other assets

 

30,363

 

46,018

 

49,156

 

43,232

 

55,540

 

48,360

 

52,513

 

53,162

 

67,218

 

Long-term assets of discontinued operations

 

171,191

 

139,266

 

 

 

 

 

 

 

 

Total assets

 

$

1,769,568

 

$

1,863,299

 

$

1,799,304

 

$

1,969,803

 

$

2,057,815

 

$

2,110,569

 

$

2,021,630

 

$

2,077,810

 

$

2,060,378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable, accrued expenses and other

 

$

255,812

 

$

288,031

 

$

350,250

 

$

358,850

 

$

279,032

 

$

278,553

 

$

298,023

 

$

304,145

 

$

297,932

 

Deferred revenue

 

343,329

 

349,034

 

346,706

 

444,145

 

449,836

 

452,196

 

434,682

 

524,331

 

521,873

 

Current portion of long-term debt

 

21,789

 

18,635

 

18,507

 

23,249

 

7,074

 

1,660

 

1,684

 

184

 

158

 

Current liabilities of discontinued operations

 

88,855

 

46,028

 

 

 

 

 

 

 

 

Total current liabilities

 

709,785

 

701,728

 

715,463

 

826,244

 

735,942

 

732,409

 

734,389

 

828,660

 

819,963

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

3,093

 

2,185

 

2,152

 

415

 

395

 

312

 

261

 

231

 

177

 

Long-term income taxes payable

 

 

 

 

 

84,480

 

89,910

 

94,418

 

111,108

 

116,376

 

Other liabilities

 

30,481

 

34,812

 

34,454

 

33,459

 

39,496

 

30,169

 

29,799

 

21,310

 

20,144

 

Total liabilities

 

743,359

 

738,725

 

752,069

 

860,118

 

860,313

 

852,800

 

858,867

 

961,309

 

956,660

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock and class B common stock

 

129

 

131

 

131

 

131

 

131

 

131

 

131

 

133

 

133

 

Additional paid-in capital

 

1,592,077

 

1,629,378

 

1,632,246

 

1,636,023

 

1,687,407

 

1,713,670

 

1,562,646

 

1,468,808

 

1,395,991

 

Accumulated other comprehensive income

 

42,979

 

64,424

 

68,034

 

87,632

 

87,708

 

93,096

 

115,813

 

118,387

 

155,830

 

Retained deficit

 

(608,976

)

(569,359

)

(653,176

)

(614,101

)

(577,744

)

(549,128

)

(515,827

)

(470,827

)

(448,236

)

Total stockholders’ equity

 

1,026,209

 

1,124,574

 

1,047,235

 

1,109,685

 

1,197,502

 

1,257,769

 

1,162,763

 

1,116,501

 

1,103,718

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

1,769,568

 

$

1,863,299

 

$

1,799,304

 

$

1,969,803

 

$

2,057,815

 

$

2,110,569

 

$

2,021,630

 

$

2,077,810

 

$

2,060,378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Annualized return on equity

 

17.3

%

14.7

%

-30.9

%

14.5

%

13.7

%

9.3

%

11.0

%

15.8

%

8.1

%

- Book value per share

 

$

8.01

 

$

8.75

 

$

8.15

 

$

8.63

 

$

9.19

 

$

9.60

 

$

9.19

 

$

9.02

 

$

9.13

 

- Cash and marketable securities per share

 

$

3.02

 

$

3.66

 

$

4.43

 

$

4.64

 

$

5.23

 

$

5.51

 

$

4.97

 

$

4.67

 

$

4.13

 

 


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

 



 

 

Monster Worldwide, Inc.

Segment Information and Margin Analysis - Non-GAAP

(unaudited, in thousands)

 

 

 

Trended Quarterly Data

 

Year to Date Data

 

 

 

Q1 2006

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

Q1 2008

 

3M 2007

 

3M 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment OIBDA(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers - North America

 

$

58,652

 

$

61,337

 

$

62,114

 

$

64,984

 

$

71,150

 

$

60,845

 

$

57,589

 

$

60,410

 

$

47,335

 

$

71,150

 

$

47,335

 

Monster Careers - International

 

4,724

 

7,064

 

8,248

 

13,001

 

12,594

 

17,362

 

12,896

 

29,980

 

16,426

 

12,594

 

16,426

 

Monster Careers OIBDA (1)

 

63,376

 

68,401

 

70,362

 

77,985

 

83,744

 

78,207

 

70,485

 

90,390

 

63,761

 

83,744

 

63,761

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet Advertising & Fees OIBDA(1)

 

11,608

 

14,235

 

13,504

 

12,849

 

6,439

 

7,750

 

5,111

 

2,592

 

116

 

6,439

 

116

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Monster OIBDA(1)

 

$

74,984

 

$

82,636

 

$

83,866

 

$

90,834

 

$

90,183

 

$

85,957

 

$

75,596

 

$

92,982

 

$

63,877

 

$

90,183

 

$

63,877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses before D&A(1)

 

$

(10,244

)

$

(8,790

)

$

(12,008

)

$

(20,815

)

$

(17,645

)

$

(14,923

)

$

(9,917

)

$

(11,032

)

$

(12,104

)

$

(17,645

)

$

(12,104

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proforma operating income(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers - North America

 

$

54,559

 

$

55,597

 

$

57,193

 

$

59,853

 

$

65,878

 

$

55,029

 

$

59,430

 

$

56,482

 

$

42,689

 

$

65,878

 

$

42,689

 

Monster Careers - International

 

765

 

2,003

 

4,997

 

9,658

 

7,961

 

12,055

 

13,589

 

28,699

 

12,708

 

7,961

 

12,708

 

Monster Careers Proforma operating income(1)

 

55,324

 

57,600

 

62,190

 

69,511

 

73,839

 

67,084

 

73,019

 

85,181

 

55,397

 

73,839

 

55,397

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet Advertising & Fees ProForma operating income(1)

 

9,486

 

12,563

 

11,843

 

11,170

 

4,304

 

5,211

 

4,419

 

1,350

 

(2,057

)

4,304

 

(2,057

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Monster Proforma income(1)

 

$

64,810

 

$

70,163

 

$

74,033

 

$

80,681

 

$

78,143

 

$

72,295

 

$

77,438

 

$

86,531

 

$

53,340

 

$

78,143

 

$

53,340

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Proforma expenses(1)

 

$

(11,871

)

$

(10,270

)

$

(10,118

)

$

(9,285

)

$

(10,121

)

$

(8,778

)

$

(8,046

)

$

(12,177

)

$

(11,586

)

$

(10,121

)

$

(11,586

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating income:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers - North America

 

$

54,559

 

$

55,597

 

$

57,193

 

$

59,853

 

$

65,878

 

$

54,579

 

$

51,455

 

$

52,950

 

$

39,435

 

$

65,878

 

$

39,435

 

Monster Careers - International

 

765

 

2,003

 

4,997

 

9,658

 

7,961

 

12,055

 

7,344

 

24,753

 

9,406

 

7,961

 

9,406

 

Monster Careers operating income

 

55,324

 

57,600

 

62,190

 

69,511

 

73,839

 

66,634

 

58,799

 

77,703

 

48,841

 

73,839

 

48,841

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet Advertising & Fees operating income

 

9,486

 

12,563

 

11,843

 

11,170

 

4,304

 

5,211

 

2,502

 

75

 

(2,879

)

4,304

 

(2,879

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Monster operating income

 

$

64,810

 

$

70,163

 

$

74,033

 

$

80,681

 

$

78,143

 

$

71,845

 

$

61,301

 

$

77,778

 

$

45,962

 

$

78,143

 

$

45,962

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses

 

$

(11,871

)

$

(10,895

)

$

(14,206

)

$

(22,851

)

$

(19,948

)

$

(29,470

)

$

(11,289

)

$

(13,647

)

$

(14,569

)

$

(19,948

)

$

(14,569

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margin Analysis:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers - North America OIBDA margin

 

36.7

%

37.7

%

37.2

%

38.6

%

38.7

%

34.9

%

32.8

%

34.8

%

25.8

%

38.7

%

25.8

%

Monster Careers - North America Proforma operating margin

 

34.1

%

34.1

%

34.3

%

35.6

%

35.8

%

31.5

%

33.9

%

32.5

%

23.3

%

35.8

%

23.3

%

Monster Careers - North America operating margin

 

34.1

%

34.1

%

34.3

%

35.6

%

35.8

%

31.3

%

29.4

%

30.5

%

21.5

%

35.8

%

21.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers - International OIBDA margin

 

7.3

%

9.5

%

10.7

%

14.5

%

11.9

%

14.9

%

10.6

%

20.9

%

10.7

%

11.9

%

10.7

%

Monster Careers - International Proforma operating margin

 

1.2

%

2.7

%

6.5

%

10.7

%

7.5

%

10.3

%

11.2

%

20.0

%

8.3

%

7.5

%

8.3

%

Monster Careers - International operating margin

 

1.2

%

2.7

%

6.5

%

10.7

%

7.5

%

10.3

%

6.0

%

17.3

%

6.1

%

7.5

%

6.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers OIBDA margin

 

28.2

%

28.8

%

28.8

%

30.2

%

28.9

%

26.8

%

23.7

%

28.5

%

18.9

%

28.9

%

18.9

%

Monster Careers Proforma operating margin

 

24.6

%

24.3

%

25.5

%

26.9

%

25.4

%

23.0

%

24.6

%

26.9

%

16.4

%

25.4

%

16.4

%

Monster Careers operating margin

 

24.6

%

24.3

%

25.5

%

26.9

%

25.4

%

22.9

%

19.8

%

24.5

%

14.5

%

25.4

%

14.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet Advertising & Fees OIBDA margin

 

35.8

%

37.5

%

32.5

%

31.8

%

16.6

%

19.5

%

12.7

%

7.0

%

0.3

%

16.6

%

0.3

%

Internet Advertising & Fees Proforma operating margin

 

29.2

%

33.1

%

28.5

%

27.7

%

11.1

%

13.1

%

11.0

%

3.6

%

-6.1

%

11.1

%

-6.1

%

Internet Advertising & Fees operating margin

 

29.2

%

33.1

%

28.5

%

27.7

%

11.1

%

13.1

%

6.2

%

0.2

%

-8.6

%

11.1

%

-8.6

%

 


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

 



 

Monster Worldwide, Inc.

Statements of Operations

(unaudited)

 

 

 

Trended Quarterly Data

 

Year to Date Data

 

Summary P&L Information

 

Q1 2006

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

Q1 2008

 

3M 2007

 

3M 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers

 

87.4

%

86.2

%

85.5

%

86.5

%

88.2

%

88.0

%

88.1

%

89.5

%

90.9

%

88.2

%

90.9

%

Internet Advertising & Fees

 

12.6

%

13.8

%

14.5

%

13.5

%

11.8

%

12.0

%

11.9

%

10.5

%

9.1

%

11.8

%

9.1

%

Revenue

 

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salary and related

 

34.8

%

34.7

%

36.3

%

37.6

%

35.9

%

39.0

%

37.2

%

36.5

%

36.8

%

35.9

%

36.8

%

Office and general

 

14.4

%

11.9

%

14.7

%

16.7

%

18.4

%

16.0

%

17.4

%

16.4

%

16.9

%

18.4

%

16.9

%

Marketing and promotion

 

25.6

%

26.6

%

23.8

%

22.2

%

23.7

%

23.6

%

22.6

%

22.8

%

31.0

%

23.7

%

31.0

%

Restructuring and other special charges

 

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

3.3

%

1.5

%

1.9

%

0.0

%

1.9

%

Depreciation expense

 

2.8

%

3.1

%

2.6

%

2.6

%

2.5

%

3.0

%

3.2

%

3.1

%

3.0

%

2.5

%

3.0

%

Amortization of restricted stock and RSU Plan

 

0.8

%

1.2

%

1.0

%

0.8

%

1.3

%

5.2

%

0.9

%

1.0

%

1.4

%

1.3

%

1.4

%

Non-cash stock option expense

 

0.0

%

0.0

%

0.0

%

0.0

%

0.1

%

0.0

%

0.0

%

0.0

%

0.0

%

0.1

%

0.0

%

Amortization of intangibles

 

1.0

%

0.9

%

0.6

%

0.6

%

0.5

%

0.5

%

0.5

%

0.5

%

0.5

%

0.5

%

0.5

%

Operating expenses

 

79.4

%

78.5

%

79.1

%

80.6

%

82.3

%

87.2

%

85.2

%

81.9

%

91.5

%

82.3

%

91.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

20.6

%

21.5

%

20.9

%

19.4

%

17.7

%

12.8

%

14.8

%

18.1

%

8.5

%

17.7

%

8.5

%

Interest and other, net

 

1.2

%

1.4

%

1.8

%

2.1

%

1.6

%

2.1

%

1.9

%

1.9

%

2.0

%

1.6

%

2.0

%

Income from cont. operations, pre-tax

 

21.8

%

23.0

%

22.7

%

21.5

%

19.3

%

14.9

%

16.7

%

20.0

%

10.5

%

19.3

%

10.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

7.9

%

8.0

%

7.9

%

7.5

%

6.8

%

5.3

%

5.9

%

7.0

%

3.9

%

6.8

%

3.9

%

Losses in equity interests, net

 

-0.5

%

-0.8

%

-0.7

%

-0.5

%

-0.4

%

-0.9

%

-0.9

%

-0.2

%

-0.5

%

-0.4

%

-0.5

%

Income from continuing operations

 

13.4

%

14.1

%

14.0

%

13.5

%

12.1

%

8.7

%

9.9

%

12.8

%

6.1

%

12.1

%

6.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

3.1

%

0.3

%

-43.3

%

-0.4

%

-0.1

%

-0.1

%

0.0

%

-0.1

%

0.0

%

-0.1

%

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

16.4

%

14.4

%

-29.3

%

13.1

%

12.0

%

8.6

%

9.9

%

12.7

%

6.1

%

12.0

%

6.1

%

 



 

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

 

Q1 2006

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

Q1 2008

 

3M 2007

 

3M 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OIBDA (1)

 

$

64,740

 

$

73,846

 

$

71,858

 

$

70,019

 

$

72,538

 

$

71,034

 

$

65,679

 

$

81,950

 

$

51,773

 

$

72,538

 

$

51,773

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

 

7,097

 

8,586

 

7,323

 

7,895

 

8,285

 

9,827

 

10,886

 

11,068

 

11,273

 

8,285

 

11,273

 

Amortization of restricted stock and RSU Plan

 

2,029

 

3,423

 

2,943

 

2,424

 

4,176

 

17,069

 

2,871

 

3,623

 

5,206

 

4,176

 

5,206

 

Non-cash stock option expense

 

 

 

 

 

186

 

47

 

104

 

105

 

127

 

186

 

127

 

Restructuring non-cash compensation expense

 

 

 

 

 

 

 

 

 

1,162

 

 

1,162

 

Restructuring non-cash write-offs

 

 

 

 

 

 

 

67

 

1,263

 

924

 

 

924

 

Amortization of intangibles

 

2,675

 

2,569

 

1,765

 

1,870

 

1,696

 

1,716

 

1,739

 

1,760

 

1,688

 

1,696

 

1,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

52,939

 

$

59,268

 

$

59,827

 

$

57,830

 

$

58,195

 

$

42,375

 

$

50,012

 

$

64,131

 

$

31,393

 

$

58,195

 

$

31,393

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proforma operating income (1)

 

$

52,939

 

$

59,893

 

$

63,915

 

$

71,396

 

$

68,022

 

$

63,517

 

$

69,392

 

$

74,354

 

$

41,754

 

$

68,022

 

$

41,754

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Executive Commitments

 

 

 

 

 

 

15,811

 

 

 

 

 

 

Stock option investigation

 

 

625

 

4,088

 

13,566

 

9,827

 

5,331

 

2,571

 

1,392

 

2,983

 

9,827

 

2,983

 

Security breach

 

 

 

 

 

 

 

5,654

 

3,389

 

451

 

 

451

 

Restructuring non-cash compensation expense

 

 

 

 

 

 

 

 

 

1,162

 

 

1,162

 

Restructuring program non-cash write-offs

 

 

 

 

 

 

 

67

 

1,263

 

924

 

 

924

 

Restructuring expenses, less non-cash items

 

 

 

 

 

 

 

11,088

 

4,179

 

4,841

 

 

4,841

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

52,939

 

$

59,268

 

$

59,827

 

$

57,830

 

$

58,195

 

$

42,375

 

$

50,012

 

$

64,131

 

$

31,393

 

$

58,195

 

$

31,393

 

 


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