EX-99.1 2 a08-20501_1ex99d1.htm EX-99.1

EXHIBIT 99.1

 

 

Monster Worldwide Reports Second Quarter and Six Months 2008 Results

 

Revenue Increases 9% to $354 Million; Operating Efficiencies Drive Year Over Year Non-GAAP Operating Margin Expansion to 22.1%

 

Diluted Earnings Per Share From Continuing Operations of $0.15, Impacted by $47 million of Pro Forma Expenses

 

Significant Progress Made Towards Resolution of Class Action and Derivative Lawsuits Relating to Historical Stock Option Grant Practices

 

Non-GAAP Diluted Earnings Per Share From Continuing Operations Increases to $0.40 From $0.32 in Prior Period

 

Careers International Revenue Grows 34% as Non-GAAP Operating Margin More Than Doubles, Reaching 21.3%

 

Cash Flow From Operations of $71 Million

 

Company Enhances Search and Match Technology With Strategic Acquisition

 

 New York, July 31, 2008— Monster Worldwide, Inc. (NASDAQ:MNST) today reported financial results for the second quarter ended June 30, 2008.

 

Second Quarter Results

 

Total revenue grew 9% to $354 million, from $324 million in the comparable quarter of 2007.  Consolidated revenue excludes any revenue contribution from the Tickle business, which was recorded as a discontinued operation in the second quarter.   Excluding the impact of foreign exchange rates, total revenue grew 4% over the prior year period.

 

Monster Careers revenue increased 10% to $321 million, compared with $291 million in last year’s second quarter.  Careers International revenue, which now accounts for 44% of consolidated revenue, grew 34% over the prior year period, or 23% excluding the

 

1



 

benefits of currency, to $157 million.  North American Careers revenue was $164 million compared with $174 million in last year’s second quarter.   Internet Advertising & Fees revenue was $33 million, up slightly over last year’s comparable quarter.  Historical results of the Internet Advertising & Fees segment have been restated for all periods to reflect the wind-down of Tickle.

 

Monster Worldwide’s deferred revenue balance at June 30, 2008 grew 4% to $470 million over last year’s second quarter balance of $452 million.  Excluding the effect of foreign currency benefits, deferred revenue was flat compared to the prior year period.

 

Consolidated operating expenses were $323 million and income from continuing operations was $19 million, or $0.15 per diluted share in the second quarter of 2008, compared to $29 million or $0.22 per diluted share in the comparable 2007 period.  The effect of foreign exchange rates benefited consolidated operating income by approximately $4 million, compared to approximately $0.5 million in the second quarter of 2007.

 

Included in operating results is $47 million of pre-tax, pro forma expenses, or $0.25 per diluted share.  The Company recorded $44 million related to its historical stock option grant practices, of which the great majority is associated with the proposed settlements of outstanding lawsuits against the Company, as described below.  The Company also incurred $3 million of costs related to its restructuring plan.  These pro forma adjustments are described in the “Notes Regarding the Use of Non-GAAP Financial Measures” and are reconciled to the nearest GAAP measure in the accompanying tables.   Excluding these costs, consolidated operating expenses were $276 million and income from continuing operations in the second quarter of 2008 was $49 million, or $0.40 per diluted share, compared to $43 million, or $0.32 per diluted share, in the prior year.

 

At June 30, 2008, the Company had $533 million of cash, cash equivalents and available for sale securities compared with $499 million at March 31, 2008.  Approximately $99 million of auction rate securities are classified as a long-term asset on the consolidated balance sheet, and are included in the cash and securities balance as of June 30, 2008.

 

2



 

Cash generated from operating activities was $71 million in the second quarter of 2008 compared to $53 million generated in the prior year period.  Capital expenditures were $30 million and increased 91% over the prior year period, reflecting the Company’s increased investments in technology and infrastructure.

 

Sal Iannuzzi, Chairman, President and Chief Executive Officer of Monster Worldwide, said, “Despite lower demand due to the economic slowdown, we were pleased with the margin expansion and strong earnings growth posted in the second quarter.  During the quarter, we devoted significant resources and made substantial progress in the areas of product innovation, customer service initiatives and sales force expansion to enhance our industry leading global position.  At the same time, we accomplished a key corporate objective by slowing the growth rate of Non-GAAP operating expenses, and bringing costs in line with revenue.”

 

Legal Settlements

 

In a separate news release today, the Company announced that on July 30, 2008, it entered into a Memorandum of Understanding with the class action representative and the individual defendants setting forth the settlement terms of the shareholder securities class action pending in the United States District Court for the Southern District of New York relating to the Company’s historical stock option granting practices.  The Memorandum of Understanding provides for a settlement of the shareholder securities class action at a net cost to the Company of approximately $25 million.  The parties will enter into a formal Settlement Agreement incorporating the terms of the Memorandum of Understanding in the near future and thereafter seek Court approval.

 

Additionally, the Company announced that on July 28, 2008, the New York State Supreme Court gave preliminary approval to the settlement of the New York State and Federal court derivative lawsuits, the terms of which were previously announced. A final hearing to approve the settlement will be held on October 2, 2008.  Commenting on these legal settlements, Mr. Iannuzzi added, “We are extremely gratified by these

 

3



 

developments, look forward to the resolution of the remaining actions relating to the Company’s historical stock option granting practices as quickly as possible and are eager to focus our energies on the continued evolution of the Company.”

 

Trovix, Inc. Acquisition

 

Additionally, the Company announced separately that it has acquired Trovix, Inc., a leading provider of employment products and services using intelligent search technologies, for $72.5 million in cash.  The implementation of Trovix’s technology will enable Monster to provide employers and job seekers with innovative search capabilities that will simplify the recruiting process by providing highly relevant and targeted matches.

 

Six Months Results

 

Monster Worldwide reported total revenue of $721 million for the six months ended June 30, 2008 compared to $646 million in the comparable period last year, a 12% increase, or 7% before the benefit of foreign exchange rates. Monster Careers revenue grew 13% to $658 million compared with $582 million in the 2007 period. Internet Advertising & Fees reported revenue of $63 million, a decrease of 2% over the prior year period. The Company reported income from continuing operations of $42 million, or $0.35 per diluted share, compared to $70 million or $0.53 per diluted share in the prior year period.

 

Mr. Iannuzzi concluded, “We anticipate that we will continue to operate in a difficult environment in the near-term.  However, we are committed to investing in critical areas that will provide a superior job seeker experience, and deliver the best products and services to our employers.  We are increasingly optimistic about our long-term growth prospects and believe that our ongoing investments and recent developments with respect to the resolution of some of our key outstanding litigation will benefit our customers, shareholders and associates now and in the future.”

 

4



 

Supplemental Financial Information

 

The Company has made available certain supplemental financial information, in a separate document that can be accessed directly at http://corporate.monster.com/Q208.pdf or through the Company’s Investor Relations website at http://ir.monster.com.

 

Conference Call Information

 

Second quarter 2008 results will be discussed on Monster Worldwide’s quarterly conference call taking place on July 31, 2008 at 5:00 PM EDT.  To join the conference call, please dial (888) 551-5973 at 4:50 PM EDT and reference conference ID# 54799235.  For those outside the United States, please dial (706) 643-3467 and reference the same conference ID#.  The call will begin promptly at 5:00 PM EDT.  Individuals can also access Monster Worldwide’s quarterly conference call online through the Investor Relations section of the Company’s website at http://ir.monster.com.  For a replay of the call, please dial (800) 642-1687 or outside the United States dial (706) 645-9291 and reference ID #54799235.  This number is valid until midnight on August 6, 2008.

 

Contacts

 

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

Media:  Steve Sylven, (978) 461-8503, Steve.Sylven@monster.com

 

About Monster Worldwide

 

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

 

Notes Regarding the Use of Non-GAAP Financial Measures

 

Monster Worldwide, Inc. (the “Company”) has provided certain non-GAAP financial information as additional information for its operating results.  These measures are not in accordance with, or an alternative for, generally accepted accounting principles (“GAAP”) and may be different from non-GAAP measures reported by other companies.  The Company believes that its presentation of non-GAAP measures provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations.

 

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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 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.

 

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

 

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MONSTER WORLDWIDE, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

354,294

 

$

323,985

 

$

720,766

 

$

645,815

 

 

 

 

 

 

 

 

 

 

 

Salaries and related

 

135,879

 

144,955

 

276,327

 

266,319

 

Office and general

 

75,358

 

62,619

 

149,257

 

130,623

 

Marketing and promotion

 

68,976

 

73,568

 

180,830

 

146,077

 

Provision for legal settlements, net

 

40,100

 

 

40,100

 

 

Restructuring and other special charges

 

2,732

 

 

9,659

 

 

Total operating expenses

 

323,045

 

281,142

 

656,173

 

543,019

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

31,249

 

42,843

 

64,593

 

102,796

 

 

 

 

 

 

 

 

 

 

 

Interest and other, net

 

3,057

 

6,903

 

10,440

 

12,316

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes and equity interests

 

34,306

 

49,746

 

75,033

 

115,112

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

12,153

 

17,587

 

27,296

 

40,677

 

Loss in equity interests, net

 

(3,592

)

(2,966

)

(5,414

)

(4,386

)

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

18,561

 

29,193

 

42,323

 

70,049

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations, net of tax

 

12,269

 

(577

)

11,098

 

(1,951

)

 

 

 

 

 

 

 

 

 

 

Net income

 

$

30,830

 

$

28,616

 

$

53,421

 

$

68,098

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.15

 

$

0.22

 

$

0.35

 

$

0.54

 

Income (loss) from discontinued operations, net of tax

 

0.10

 

 

0.09

 

(0.01

)

Basic earnings per share*

 

$

0.26

 

$

0.22

 

$

0.44

 

$

0.52

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.15

 

$

0.22

 

$

0.35

 

$

0.53

 

Income (loss) from discontinued operations, net of tax

 

0.10

 

 

0.09

 

(0.01

)

Diluted earnings per share*

 

$

0.25

 

$

0.21

 

$

0.44

 

$

0.51

 

 


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

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

120,885

 

130,542

 

121,798

 

130,268

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

121,541

 

133,121

 

122,552

 

133,324

 

 

 

 

 

 

 

 

 

 

 

Operating income before depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

31,249

 

$

42,843

 

$

64,593

 

$

102,796

 

Depreciation and amortization of intangibles

 

13,604

 

10,763

 

25,793

 

20,017

 

Amortization of stock based compensation

 

8,533

 

17,116

 

13,866

 

21,478

 

Restructuring non-cash expenses

 

923

 

 

3,009

 

 

 

 

 

 

 

 

 

 

 

 

Operating income before depreciation and amortization

 

$

54,309

 

$

70,722

 

$

107,261

 

$

144,291

 

 



 

MONSTER WORLDWIDE, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

Six Months Ended June 30,

 

 

 

2008

 

2007

 

Cash flows provided by operating activities:

 

 

 

 

 

Net income

 

$

53,421

 

$

68,098

 

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

 

 

 

 

 

(Income) loss from discontinued operations, net of tax

 

(11,098

)

1,951

 

Depreciation and amortization of intangibles

 

25,793

 

20,017

 

Provision for legal settlements, net

 

40,100

 

 

Provision for doubtful accounts

 

6,771

 

5,113

 

Non-cash compensation

 

15,028

 

21,478

 

Deferred income taxes

 

(19,582

)

(5,505

)

Loss (gain) on disposal of assets

 

2,085

 

(572

)

Loss in equity interests and other

 

5,414

 

4,386

 

Changes in assets and liabilities, net of business combinations:

 

 

 

 

 

Accounts receivable

 

82,660

 

20,366

 

Prepaid and other

 

19,098

 

(4,204

)

Deferred revenue

 

(53,923

)

8,051

 

Accounts payable, accrued liabilities and other

 

(13,597

)

(1,787

)

Net cash used for operating activities of discontinued operations

 

(3,129

)

(5,232

)

Total adjustments

 

95,620

 

64,062

 

Net cash provided by operating activities

 

149,041

 

132,160

 

 

 

 

 

 

 

Cash flows provided by (used for) investing activities:

 

 

 

 

 

Capital expenditures

 

(50,213

)

(36,964

)

Purchase of marketable securities

 

(156,882

)

(682,586

)

Sales and maturities of marketable securities

 

436,305

 

589,565

 

Payments for acquisitions and intangible assets, net of cash acquired

 

(61,567

)

(1,806

)

Cash funded to equity investee

 

(5,000

)

(4,100

)

Dividends received from unconsolidated investee

 

1,011

 

 

Net cash used for investing activities of discontinued operations

 

 

(250

)

Net cash provided by (used for) investing activities

 

163,654

 

(136,141

)

 

 

 

 

 

 

Cash flows (used for) provided by financing activities:

 

 

 

 

 

Repurchase of common stock

 

(86,327

)

(10,042

)

Proceeds from exercise of employee stock options

 

1,046

 

53,401

 

Excess tax benefits from equity compensation plans

 

120

 

12,343

 

Payments on debt obligations

 

(147

)

 

Payments on acquisition debt

 

 

(21,862

)

Net cash (used for) provided by financing activities

 

(85,308

)

33,840

 

 

 

 

 

 

 

Effects of exchange rates on cash

 

8,323

 

2,000

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

235,710

 

31,859

 

Cash and cash equivalents, beginning of period

 

129,744

 

58,680

 

Cash and cash equivalents, end of period

 

$

365,454

 

$

90,539

 

 

 

 

 

 

 

Free cash flow:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

149,041

 

$

132,160

 

Less: Capital expenditures

 

(50,213

)

(36,964

)

Free cash flow

 

$

98,828

 

$

95,196

 

 



 

MONSTER WORLDWIDE, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

 

June 30, 2008

 

December 31, 2007

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

365,454

 

$

129,744

 

Available-for-sale securities, current

 

68,579

 

448,703

 

Accounts receivable, net

 

410,427

 

499,854

 

Available-for-sale securities, non - current

 

99,330

 

 

Property and equipment, net

 

149,048

 

123,397

 

Goodwill and intangibles, net

 

722,857

 

650,685

 

Other assets

 

236,014

 

210,696

 

Total assets of discontinued operations

 

 

14,731

 

Total assets

 

$

2,051,709

 

$

2,077,810

 

 

 

 

 

 

 

Liabilities and Stockholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

Accounts payable, accrued expenses and other

 

$

321,077

 

$

304,146

 

Deferred revenue

 

470,408

 

524,331

 

Non-current income taxes payable

 

119,360

 

111,108

 

Other liabilities

 

17,323

 

17,033

 

Debt

 

268

 

415

 

Total liabilities of discontinued operations

 

 

4,276

 

Total liabilities

 

928,436

 

961,309

 

 

 

 

 

 

 

Stockholders’ equity

 

1,123,273

 

1,116,501

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

2,051,709

 

$

2,077,810

 

 



 

MONSTER WORLDWIDE, INC.

UNAUDITED OPERATING SEGMENT INFORMATION

(in thousands)

 

Three Months Ended June 30, 2008

 

Careers -
North America

 

Careers - International

 

Internet
Advertising &
Fees

 

Corporate
Expenses

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

164,280

 

$

156,673

 

$

33,341

 

 

 

$

354,294

 

Operating income

 

58,409

 

31,916

 

4,656

 

$

(63,732

)

31,249

 

OIBDA

 

67,636

 

40,361

 

7,508

 

(61,196

)

54,309

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

35.6

%

20.4

%

14.0

%

 

 

8.8

%

OIBDA margin

 

41.2

%

25.8

%

22.5

%

 

 

15.3

%

 

Three Months Ended June 30, 2007

 

Careers -North America

 

Careers -
International

 

Internet
Advertising &
Fees

 

Corporate
Expenses

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

174,481

 

$

116,845

 

$

32,659

 

 

 

$

323,985

 

Operating income

 

54,579

 

12,055

 

5,679

 

$

(29,470

)

42,843

 

OIBDA

 

60,845

 

17,362

 

7,438

 

(14,923

)

70,722

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

31.3

%

10.3

%

17.4

%

 

 

13.2

%

OIBDA margin

 

34.9

%

14.9

%

22.8

%

 

 

21.8

%

 

Six Months Ended June 30, 2008

 

Careers -
North America

 

Careers -International

 

Internet
Advertising &
Fees

 

Corporate
Expenses

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

347,818

 

$

309,945

 

$

63,003

 

 

 

$

720,766

 

Operating income

 

98,110

 

41,559

 

3,225

 

$

(78,301

)

64,593

 

OIBDA

 

115,238

 

57,023

 

8,300

 

(73,300

)

107,261

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

28.2

%

13.4

%

5.1

%

 

 

9.0

%

OIBDA margin

 

33.1

%

18.4

%

13.2

%

 

 

14.9

%

 

Six Months Ended June 30, 2007

 

Careers -
North America

 

Careers -
International

 

Internet
Advertising &
Fees

 

Corporate
Expenses

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

358,498

 

$

223,051

 

$

64,266

 

 

 

$

645,815

 

Operating income

 

120,457

 

20,016

 

11,741

 

$

(49,418

)

102,796

 

OIBDA

 

131,995

 

29,956

 

14,908

 

(32,568

)

144,291

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

33.6

%

9.0

%

18.3

%

 

 

15.9

%

OIBDA margin

 

36.8

%

13.4

%

23.2

%

 

 

22.3

%

 



 

MONSTER WORLDWIDE, INC.

UNAUDITED NON-GAAP STATEMENTS OF OPERATIONS AND RECONCILIATIONS

(in thousands, except per share amounts)

 

 

 

For the Three Months Ended June 30, 2008

 

For the Three Months Ended June 30, 2007

 

 

 

As Reported

 

Proforma
Adjustments

 

Non-GAAP

 

As Reported

 

Proforma
Adjustments

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

354,294

 

 

$

354,294

 

$

323,985

 

 

$

323,985

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and related

 

135,879

 

 

135,879

 

144,955

 

(16,142

)(a)

128,813

 

Office and general

 

75,358

 

(4,256

)(a)

71,102

 

62,619

 

(5,000

)(a)

57,619

 

Marketing and promotion

 

68,976

 

 

68,976

 

73,568

 

 

73,568

 

Provision for legal settlements, net

 

40,100

 

(40,100

)(b)

 

 

 

 

Restructuring and other special charges

 

2,732

 

(2,732

)(c)

 

 

 

 

Total operating expenses

 

323,045

 

(47,088

)

275,957

 

281,142

 

(21,142

)

260,000

 

Operating income

 

31,249

 

47,088

 

78,337

 

42,843

 

21,142

 

63,985

 

Operating margin

 

8.8

%

 

 

22.1

%

13.2

%

 

 

19.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other, net

 

3,057

 

 

3,057

 

6,903

 

 

6,903

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes and equity interests

 

34,306

 

47,088

 

81,394

 

49,746

 

21,142

 

70,888

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

12,153

 

16,681

(d)

28,834

 

17,587

 

7,474

(d)

25,061

 

Losses in equity interests, net

 

(3,592

)

 

(3,592

)

(2,966

)

 

 

(2,966

)

Income from continuing operations

 

$

18,561

 

$

30,407

 

$

48,968

 

$

29,193

 

$

13,668

 

$

42,861

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share from continuing operations

 

$

0.15

 

$

0.25

 

$

0.40

 

$

0.22

 

$

0.10

 

$

0.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

121,541

 

121,541

 

121,541

 

133,121

 

133,121

 

133,121

 

 

 

 

Six Months Ended June 30, 2008

 

Six Months Ended June 30, 2007

 

 

 

As Reported

 

Proforma
Adjustments

 

Non-GAAP

 

As Reported

 

Proforma
Adjustments

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

720,766

 

 

$

720,766

 

$

645,815

 

 

$

645,815

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and related

 

276,327

 

93

(a)

276,420

 

266,319

 

(16,142

)(a)

250,177

 

Office and general

 

149,257

 

(7,783

)(a)

141,474

 

130,623

 

(14,827

)(a)

115,796

 

Marketing and promotion

 

180,830

 

 

180,830

 

146,077

 

 

146,077

 

Provision for legal settlements, net

 

40,100

 

(40,100

)(b)

 

 

 

 

Restructuring and other special charges

 

9,659

 

(9,659

)(c)

 

 

 

 

Total operating expenses

 

656,173

 

(57,449

)

598,724

 

543,019

 

(30,969

)

512,050

 

Operating income

 

64,593

 

57,449

 

122,042

 

102,796

 

30,969

 

133,765

 

Operating margin

 

9.0

%

 

 

16.9

%

15.9

%

 

 

20.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other, net

 

10,440

 

 

10,440

 

12,316

 

 

12,316

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes and equity interests

 

75,033

 

57,449

 

132,482

 

115,112

 

30,969

 

146,081

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

27,296

 

20,899

(d)

48,195

 

40,677

 

10,943

(d)

51,620

 

Losses in equity interests, net

 

(5,414

)

 

(5,414

)

(4,386

)

 

(4,386

)

Income from continuing operations

 

$

42,323

 

$

36,550

 

$

78,873

 

$

70,049

 

$

20,026

 

$

90,075

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share from continuing operations *

 

$

0.35

 

$

0.30

 

$

0.64

 

$

0.53

 

$

0.15

 

$

0.68

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

122,552

 

122,552

 

122,552

 

133,324

 

133,324

 

133,324

 

 


Note Regarding ProForma Adjustments:

ProForma adjustments consist of the following:

(a)

 

Costs associated with the ongoing investigation into the Company’s historical stock option granting practices, and costs associated with the remediation of a security breach related to the Company’s resume database in August 2007.

 

 

 

(b)

 

Provision for costs associated with the proposed and anticipated legal settlements related to the stock option litigation, net of recoveries.

 

 

 

(c)

 

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

 

 

 

(d)

 

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

 

 

 

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

 



 

MONSTER WORLDWIDE, INC.

UNAUDITED NON-GAAP OPERATING SEGMENT INFORMATION

(in thousands)

 

Three Months Ended June 30, 2008

 

Careers -
North America

 

Careers -
International

 

Internet
Advertising &
Fees

 

Corporate
Expenses

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

164,280

 

$

156,673

 

$

33,341

 

 

 

$

354,294

 

Operating income - GAAP

 

$

58,409

 

$

31,916

 

$

4,656

 

$

(63,732

)

$

31,249

 

Proforma Adjustments

 

926

 

1,400

 

338

 

44,424

 

47,088

 

Operating income - Non GAAP

 

$

59,335

 

$

33,316

 

$

4,994

 

$

(19,308

)

$

78,337

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin - GAAP

 

35.6

%

20.4

%

14.0

%

 

 

8.8

%

Operating margin - Non GAAP

 

36.1

%

21.3

%

15.0

%

 

 

22.1

%

 

Three Months Ended June 30, 2007

 

Careers -
North America

 

Careers -
International

 

Internet
Advertising &
Fees

 

Corporate
Expenses

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

174,481

 

$

116,845

 

$

32,659

 

 

 

$

323,985

 

Operating income - GAAP

 

$

54,579

 

$

12,055

 

$

5,679

 

$

(29,470

)

$

42,843

 

Proforma Adjustments

 

450

 

 

 

20,692

 

21,142

 

Operating income - Non GAAP

 

$

55,029

 

$

12,055

 

$

5,679

 

$

(8,778

)

$

63,985

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin - GAAP

 

31.3

%

10.3

%

17.4

%

 

 

13.2

%

Operating margin - Non GAAP

 

31.5

%

10.3

%

17.4

%

 

 

19.7

%

 

Six Months Ended June 30, 2008

 

Careers -
 North America

 

Careers -
International

 

Internet
Advertising &
Fees

 

Corporate
Expenses

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

347,818

 

$

309,945

 

$

63,003

 

 

 

$

720,766

 

Operating income - GAAP

 

$

98,110

 

$

41,559

 

$

3,225

 

$

(78,301

)

$

64,593

 

Proforma Adjustments

 

4,180

 

4,702

 

1,160

 

47,407

 

57,449

 

Operating income - Non GAAP

 

$

102,290

 

$

46,261

 

$

4,385

 

$

(30,894

)

$

122,042

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin - GAAP

 

28.2

%

13.4

%

5.1

%

 

 

9.0

%

Operating margin - Non GAAP

 

29.4

%

14.9

%

7.0

%

 

 

16.9

%

 

Six Months Ended June 30, 2007

 

Careers - North America

 

Careers -
 International

 

Internet
Advertising &
Fees

 

Corporate
Expenses

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

358,498

 

$

223,051

 

$

64,266

 

 

 

$

645,815

 

Operating income - GAAP

 

$

120,457

 

$

20,016

 

$

11,741

 

$

(49,418

)

$

102,796

 

Proforma Adjustments

 

450

 

 

 

30,519

 

30,969

 

Operating income - Non GAAP

 

$

120,907

 

$

20,016

 

$

11,741

 

$

(18,899

)

$

133,765

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin - GAAP

 

33.6

%

9.0

%

18.3

%

 

 

15.9

%

Operating margin - Non GAAP

 

33.7

%

9.0

%

18.3

%

 

 

20.7

%