EX-99.2 3 a08-20501_1ex99d2.htm EX-99.2

Exhibit 99.2

 

 

FINANCIAL SUPPLEMENT

 

June 30, 2008

 

Monster Worldwide, Inc. (together with its consolidated subsidiaries, the “Company,” “Monster,” “we,” “our” or “us”) provides 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

 

Wind-down of Internet Advertising & Fees Tickle Business.

 

In May 2008, we announced our intentions to wind-down the operations of Tickle, a business included in the Internet Advertising & Fees segment.  As a result of this action, we have reclassified our quarterly financial information to reflect the wind-down as discontinued operations in all periods presented.  The financial results from continuing operations, presented herein, reflect the results of the remaining and ongoing portion of our business.

 

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.

 

Provision for Legal Settlements, net

 

On July 30, 2008, Monster entered into a Memorandum of Understanding (“MOU”) with the class representative and the individual defendants in the shareholder securities class action that memorializes the terms pursuant to which the parties intend, subject to Court approval, to settle the securities class action.  As full settlement of the claims asserted in the securities class action, the MOU provides for a payment to the class of $47.5 million the cost of which to the Company will be approximately $25.1 million net of its insurance recovery and a payment by another defendant.  Also recorded in the provision for legal settlements, net in the second quarter of 2008, was approximately $15.0 million for estimated expenses relating to the other outstanding litigation in connection with Monster’s historical stock option grant practices.

 

2


 

Professional Fees

 

For the three and six months ended June 30, 2008, we recorded $4.3 million and $7.2 million, respectively, of professional fees as a direct result of ongoing matters relating to our historical stock option grant practices. In addition, approximately $5.3 million and $15.2 million of professional fees related to our historical stock option grant practices were included in three and six months ended June 30, 2007, respectively.  These costs primarily relate to legal fees and are a component of “office and general” in our consolidated statement of operations. In addition, we have incurred costs related to litigation, an informal investigation by the SEC and an investigation by the United States Attorney for the Southern District of New York.

 

We expect to continue to incur significant professional fees related to ongoing matters relating to our historical stock option grant practices.  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, and fees paid in defense of shareholder litigation.

 

Executive 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.

 

The restructuring plan included an anticipated reduction in the current workforce by approximately 800 associates, or 15% of our full-time staff, through 2008. Subsequent to the announcement of this plan, the Company made a strategic decision to in-source customer service and therefore the current reduction will be approximately 700 associates. The plan also included 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 and six months ended June 30, 2008, we recorded $2.7 million and $9.7 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 six months ended June 30, 2008, we recorded $0.5 million related to the breach; no such costs were incurred in the three months ended June 30, 2008.

 

3


 

Reclassifications

 

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

 

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 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.

 

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

 

4


 

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

 

5


 

Monster Worldwide, Inc.

Statements of Operations

(unaudited, in thousands, except per share amounts)

 

 

 

Trended Quarterly Data

 

Year to Date Data

 

Summary P&L Information

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

Q1 2008

 

Q2 2008

 

6M 2007

 

6M 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers

 

$

237,190

 

$

244,292

 

$

258,260

 

$

290,223

 

$

291,326

 

$

296,996

 

$

316,877

 

$

336,810

 

$

320,953

 

$

581,549

 

$

657,763

 

Internet Advertising & Fees

 

28,141

 

31,944

 

31,093

 

31,607

 

32,659

 

33,146

 

30,970

 

29,662

 

33,341

 

64,266

 

63,003

 

Revenue

 

265,331

 

276,236

 

289,353

 

321,830

 

323,985

 

330,142

 

347,847

 

366,472

 

354,294

 

645,815

 

720,766

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salary and related

 

94,204

 

102,642

 

110,773

 

117,002

 

127,839

 

123,965

 

127,666

 

135,115

 

127,346

 

244,841

 

262,461

 

Office and general

 

32,216

 

41,189

 

48,924

 

58,750

 

51,856

 

57,621

 

56,708

 

61,710

 

61,754

 

110,606

 

123,464

 

Marketing and promotion

 

66,994

 

62,436

 

60,933

 

72,509

 

73,568

 

71,584

 

76,818

 

111,854

 

68,976

 

146,077

 

180,830

 

Provision for legal settlements, net

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

40,100

 

—

 

40,100

 

Restructuring and other special charges

 

—

 

—

 

—

 

—

 

—

 

11,155

 

5,442

 

6,927

 

2,732

 

—

 

9,659

 

Depreciation expense

 

8,204

 

6,937

 

7,448

 

7,860

 

9,350

 

10,408

 

10,589

 

10,803

 

12,330

 

17,210

 

23,133

 

Amortization of restricted stock and RSU Plan

 

3,423

 

2,943

 

2,424

 

4,176

 

17,069

 

2,871

 

3,623

 

5,206

 

8,351

 

21,245

 

13,557

 

Non-cash stock option expense

 

—

 

—

 

—

 

186

 

47

 

104

 

105

 

127

 

182

 

233

 

309

 

Amortization of intangibles

 

2,267

 

1,463

 

1,568

 

1,394

 

1,413

 

1,437

 

1,457

 

1,386

 

1,274

 

2,807

 

2,660

 

Operating expenses

 

207,308

 

217,610

 

232,070

 

261,877

 

281,142

 

279,145

 

282,408

 

333,128

 

323,045

 

543,019

 

656,173

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

58,023

 

58,626

 

57,283

 

59,953

 

42,843

 

50,997

 

65,439

 

33,344

 

31,249

 

102,796

 

64,593

 

Interest and other, net(1)

 

4,055

 

5,123

 

6,504

 

5,413

 

6,903

 

6,507

 

6,799

 

7,383

 

3,057

 

12,316

 

10,440

 

Income from cont. operations, pre-tax

 

62,078

 

63,749

 

63,787

 

65,366

 

49,746

 

57,504

 

72,238

 

40,727

 

34,306

 

115,112

 

75,033

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

21,630

 

22,262

 

22,307

 

23,090

 

17,587

 

20,474

 

25,310

 

15,143

 

12,153

 

40,677

 

27,296

 

Losses in equity interests, net

 

(2,284

)

(2,054

)

(1,517

)

(1,420

)

(2,966

)

(3,074

)

(838

)

(1,822

)

(3,592

)

(4,386

)

(5,414

)

Income from continuing operations

 

38,164

 

39,433

 

39,963

 

40,856

 

29,193

 

33,956

 

46,090

 

23,762

 

18,561

 

70,049

 

42,323

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from disc. operations, net of tax(2)(3)

 

1,453

 

(123,250

)

(888

)

(1,374

)

(577

)

(655

)

(1,090

)

(1,171

)

12,269

 

(1,951

)

11,098

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

39,617

 

$

(83,817

)

$

39,075

 

$

39,482

 

$

28,616

 

$

33,301

 

$

45,000

 

$

22,591

 

$

30,830

 

$

68,098

 

$

53,421

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.30

 

$

0.31

 

$

0.31

 

$

0.32

 

$

0.22

 

$

0.26

 

$

0.37

 

$

0.19

 

$

0.15

 

$

0.54

 

$

0.35

 

Net income (loss)

 

$

0.31

 

$

(0.65

)

$

0.30

 

$

0.30

 

$

0.22

 

$

0.26

 

$

0.36

 

$

0.18

 

$

0.26

 

$

0.52

 

$

0.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.29

 

$

0.30

 

$

0.30

 

$

0.31

 

$

0.22

 

$

0.26

 

$

0.36

 

$

0.19

 

$

0.15

 

$

0.53

 

$

0.35

 

Net income (loss)

 

$

0.30

 

$

(0.64

)

$

0.30

 

$

0.30

 

$

0.21

 

$

0.25

 

$

0.36

 

$

0.18

 

$

0.25

 

$

0.51

 

$

0.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted avg. shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic shares

 

128,551

 

128,484

 

128,489

 

129,653

 

130,542

 

129,499

 

125,504

 

122,711

 

120,885

 

130,268

 

121,798

 

Diluted shares

 

132,009

 

130,827

 

131,209

 

132,464

 

133,121

 

130,757

 

126,704

 

123,332

 

121,541

 

133,324

 

122,552

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global employees (ones)

 

4,170

 

4,591

 

4,813

 

5,285

 

5,442

 

5,116

 

5,112

 

5,164

 

5,396

 

5,442

 

5,396

 

Annualized revenue per average employee

 

$

268.2

 

$

252.2

 

$

246.2

 

$

255.0

 

$

241.6

 

$

250.2

 

$

272.1

 

$

285.3

 

$

268.4

 

$

241.6

 

$

268.4

 

 

(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.

(3) - Loss from discontinued operations, net of tax in the second quarter of 2008 includes tax benefits of $29.4 million and long-lived assets write-offs of $13.1 million of related to the wind-down of the Tickle business included in our Internet Advertising & Fees business segment.

 

 


 

Monster Worldwide, Inc.

Trailing Twelve Months Statistics - Statements of Operations

(unaudited, in thousands, except per share amounts)

 

Summary P&L Information

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

Q1 2008

 

Q2 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers

 

$

833,692

 

$

899,053

 

$

964,331

 

$

1,029,965

 

$

1,084,101

 

$

1,136,805

 

$

1,195,422

 

$

1,242,009

 

$

1,271,636

 

Internet Advertising & Fees

 

97,493

 

108,427

 

115,855

 

122,785

 

127,303

 

128,505

 

128,382

 

126,437

 

127,119

 

Revenue

 

931,185

 

1,007,480

 

1,080,186

 

1,152,750

 

1,211,404

 

1,265,310

 

1,323,804

 

1,368,446

 

1,398,755

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salary and related

 

353,785

 

369,729

 

396,099

 

424,621

 

458,256

 

479,579

 

496,472

 

514,586

 

514,093

 

Office and general

 

127,682

 

140,597

 

158,728

 

181,079

 

200,719

 

217,151

 

224,935

 

227,895

 

237,792

 

Marketing and promotion

 

219,698

 

240,093

 

251,611

 

262,872

 

269,446

 

278,594

 

294,479

 

333,823

 

329,232

 

Provision for legal settlements, net

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

40,100

 

Restructuring and other special charges

 

—

 

—

 

—

 

—

 

—

 

11,155

 

16,597

 

23,524

 

26,256

 

Depreciation expense

 

26,072

 

27,284

 

28,757

 

30,449

 

31,595

 

35,066

 

38,207

 

41,150

 

44,130

 

Amortization of restricted stock and RSU Plan

 

6,685

 

9,088

 

10,819

 

12,966

 

26,612

 

26,540

 

27,739

 

28,769

 

20,051

 

Non-cash stock option expense

 

95

 

95

 

95

 

186

 

233

 

337

 

442

 

383

 

518

 

Amortization of intangibles

 

9,046

 

8,632

 

7,671

 

6,692

 

5,838

 

5,812

 

5,701

 

5,693

 

5,554

 

Operating expenses

 

743,063

 

795,518

 

853,780

 

918,865

 

992,699

 

1,054,234

 

1,104,572

 

1,175,823

 

1,217,726

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

188,122

 

211,962

 

226,406

 

233,885

 

218,705

 

211,076

 

219,232

 

192,623

 

181,029

 

Interest and other, net

 

12,380

 

16,582

 

19,042

 

21,095

 

23,943

 

25,327

 

25,622

 

27,592

 

23,746

 

Income from cont. operations, pre-tax

 

200,502

 

228,544

 

245,448

 

254,980

 

242,648

 

236,403

 

244,854

 

220,215

 

204,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

71,215

 

80,383

 

86,517

 

89,289

 

85,246

 

83,458

 

86,461

 

78,514

 

73,080

 

Losses in equity interests, net

 

(6,346

)

(7,759

)

(7,096

)

(7,275

)

(7,957

)

(8,977

)

(8,298

)

(8,700

)

(9,326

)

Income from continuing operations

 

122,941

 

140,402

 

151,835

 

158,416

 

149,445

 

143,968

 

150,095

 

133,001

 

122,369

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

21,155

 

(106,191

)

(114,698

)

(124,059

)

(126,089

)

(3,494

)

(3,696

)

(3,493

)

9,353

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

144,096

 

$

34,211

 

$

37,137

 

$

34,357

 

$

23,356

 

$

140,474

 

$

146,399

 

$

129,508

 

$

131,722

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.98

 

$

1.11

 

$

1.19

 

$

1.23

 

$

1.16

 

$

1.11

 

$

1.17

 

$

1.05

 

$

0.98

 

Net income

 

$

1.15

 

$

0.27

 

$

0.29

 

$

0.27

 

$

0.18

 

$

1.08

 

$

1.14

 

$

1.02

 

$

1.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.96

 

$

1.08

 

$

1.16

 

$

1.20

 

$

1.13

 

$

1.09

 

$

1.15

 

$

1.04

 

$

0.97

 

Net income

 

$

1.12

 

$

0.26

 

$

0.28

 

$

0.26

 

$

0.18

 

$

1.07

 

$

1.12

 

$

1.01

 

$

1.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted avg. shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic shares

 

125,445

 

127,034

 

128,077

 

128,794

 

129,292

 

129,546

 

128,785

 

127,064

 

124,650

 

Diluted shares

 

128,701

 

130,218

 

131,247

 

131,627

 

131,905

 

131,888

 

130,755

 

128,479

 

125,584

 

 


 

Monster Worldwide, Inc.

Statements of Cash Flows

(unaudited, in thousands)

 

 

 

Trended Quarterly Data

 

Year to Date Data

 

 

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

Q1 2008

 

Q2 2008

 

6M 2007

 

6M 2008

 

Cash flows provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

39,617

 

$

(83,817

)

$

39,075

 

$

39,482

 

$

28,616

 

$

33,301

 

$

45,000

 

$

22,591

 

$

30,830

 

$

68,098

 

$

53,421

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Income) loss from discontinued operations, net of tax

 

(1,453

)

123,250

 

888

 

1,374

 

577

 

655

 

1,090

 

1,171

 

(12,269

)

1,951

 

(11,098

)

Depreciation and amortization of intangibles

 

10,471

 

8,400

 

9,016

 

9,254

 

10,763

 

11,845

 

12,046

 

12,189

 

13,604

 

20,017

 

25,793

 

Provision for legal settlements, net

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

40,100

 

—

 

40,100

 

Provision for doubtful accounts

 

1,840

 

1,841

 

2,550

 

2,483

 

2,630

 

3,340

 

4,453

 

3,564

 

3,207

 

5,113

 

6,771

 

Non-cash compensation

 

3,423

 

2,943

 

2,424

 

4,362

 

17,116

 

2,975

 

3,728

 

6,495

 

8,533

 

21,478

 

15,028

 

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

 

858

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Deferred income taxes

 

2,593

 

(815

)

2,267

 

2,100

 

(7,605

)

2,808

 

(2,762

)

(7,319

)

(12,263

)

(5,505

)

(19,582

)

Loss (gain) on disposal of assets

 

—

 

—

 

—

 

—

 

(572

)

(2

)

3

 

725

 

1,360

 

(572

)

2,085

 

Loss in equity interests and other, net

 

2,284

 

2,056

 

1,521

 

1,420

 

2,966

 

3,074

 

838

 

1,822

 

3,592

 

4,386

 

5,414

 

Changes in assets and liabilities, net of business combinations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(21,388

)

(24,072

)

(122,790

)

25,170

 

(4,804

)

13,699

 

(101,843

)

37,848

 

44,812

 

20,366

 

82,660

 

Prepaid and other

 

(8,248

)

(14,542

)

2,465

 

(2

)

(4,202

)

(8,007

)

(12,766

)

1,949

 

17,149

 

(4,204

)

19,098

 

Deferred revenue

 

5,544

 

(2,328

)

97,440

 

5,691

 

2,360

 

(17,515

)

89,650

 

(2,458

)

(51,465

)

8,051

 

(53,923

)

Accounts payable, accrued expenses and other liabilities

 

24,478

 

48,418

 

11,322

 

(8,950

)

7,163

 

26,536

 

27,091

 

340

 

(13,937

)

(1,787

)

(13,597

)

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

 

2,709

 

17,516

 

(1,619

)

(3,385

)

(1,847

)

126

 

(2,344

)

(560

)

(2,569

)

(5,232

)

(3,129

)

Total adjustments

 

23,111

 

162,667

 

5,484

 

39,517

 

24,545

 

39,534

 

19,184

 

55,766

 

39,854

 

64,062

 

95,620

 

Net cash provided by operating activities

 

62,728

 

78,850

 

44,559

 

78,999

 

53,161

 

72,835

 

64,184

 

78,357

 

70,684

 

132,160

 

149,041

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows provided by (used for) investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

(15,831

)

(12,492

)

(16,882

)

(21,449

)

(15,515

)

(10,596

)

(16,187

)

(20,559

)

(29,654

)

(36,964

)

(50,213

)

Purchase of marketable securities

 

(608,773

)

(404,703

)

(373,959

)

(365,031

)

(317,555

)

(327,250

)

(415,025

)

(149,249

)

(7,633

)

(682,586

)

(156,882

)

Sale and maturities of marketable securities

 

406,537

 

321,390

 

342,351

 

311,662

 

277,903

 

446,418

 

478,068

 

414,453

 

21,852

 

589,565

 

436,305

 

Payments for acquisitions and intangible assets, net of cash acquired

 

(16,832

)

(631

)

(688

)

(1,664

)

(142

)

(133

)

(610

)

(61,567

)

—

 

(1,806

)

(61,567

)

Dividends received from unconsolidated investee

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

1,011

 

—

 

1,011

 

Net proceeds from sale of business

 

32,950

 

36,205

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Cash funded to equity investee

 

(4,800

)

(2,400

)

(2,800

)

(2,500

)

(1,600

)

(5,900

)

—

 

(5,000

)

—

 

(4,100

)

(5,000

)

Net cash used for investing activities of discontinued operations

 

(296

)

(788

)

(356

)

(163

)

(87

)

(5

)

(53

)

—

 

—

 

(250

)

—

 

Net cash provided by (used for) investing activities

 

(207,045

)

(63,419

)

(52,334

)

(79,145

)

(56,996

)

102,534

 

46,193

 

178,078

 

(14,424

)

(136,141

)

163,654

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows provided by (used for) financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(87

)

(130

)

322

 

—

 

—

 

(58

)

(42

)

(80

)

(67

)

—

 

(147

)

Payments on acquisition debt

 

(7,480

)

—

 

440

 

(16,310

)

(5,552

)

—

 

(1,500

)

—

 

—

 

(21,862

)

—

 

Proceeds from the exercise of employee stock options

 

31,571

 

60

 

1,038

 

43,395

 

10,006

 

651

 

838

 

418

 

628

 

53,401

 

1,046

 

Excess tax benefits from (provisions for) equity compensation plans

 

6,049

 

16

 

632

 

6,486

 

5,857

 

1,611

 

(155

)

(568

)

688

 

12,343

 

120

 

Repurchase of common stock

 

(5,879

)

—

 

(318

)

(3,326

)

(6,716

)

(154,692

)

(97,761

)

(79,469

)

(6,858

)

(10,042

)

(86,327

)

Net cash provided by (used for) financing activities

 

24,174

 

(54

)

2,114

 

30,245

 

3,595

 

(152,488

)

(98,620

)

(79,699

)

(5,609

)

33,840

 

(85,308

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effects of exchange rates on cash

 

1,167

 

352

 

1,553

 

963

 

1,037

 

3,795

 

772

 

10,256

 

(1,933

)

2,000

 

8,323

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

(118,976

)

15,729

 

(4,108

)

31,062

 

797

 

26,676

 

12,529

 

186,992

 

48,718

 

31,859

 

235,710

 

Cash and cash equivalents, beginning of period

 

166,035

 

47,059

 

62,788

 

58,680

 

89,742

 

90,539

 

117,215

 

129,744

 

316,736

 

58,680

 

129,744

 

Cash and cash equivalents, end of period

 

$

47,059

 

$

62,788

 

$

58,680

 

$

89,742

 

$

90,539

 

$

117,215

 

$

129,744

 

$

316,736

 

$

365,454

 

$

90,539

 

$

365,454

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non - GAAP Free cash flow (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

62,728

 

$

78,850

 

$

44,559

 

$

78,999

 

$

53,161

 

$

72,835

 

$

64,184

 

$

78,357

 

$

70,684

 

$

132,160

 

$

149,041

 

Less: Capital expenditures

 

(15,831

)

(12,492

)

(16,882

)

(21,449

)

(15,515

)

(10,596

)

(16,187

)

(20,559

)

(29,654

)

(36,964

)

(50,213

)

Free cash flow

 

$

46,897

 

$

66,358

 

$

27,677

 

$

57,550

 

$

37,646

 

$

62,239

 

$

47,997

 

$

57,798

 

$

41,030

 

$

95,196

 

$

98,828

 

 

(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

 

 

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

Q1 2008

 

Q2 2008

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

47,059

 

$

62,788

 

$

58,680

 

$

89,742

 

$

90,539

 

$

117,215

 

$

129,744

 

316,736

 

$

365,454

 

Available-for-sale securities, current

 

422,972

 

506,285

 

537,893

 

591,262

 

630,914

 

511,746

 

448,703

 

79,236

 

68,579

 

Accounts receivable, net

 

278,870

 

324,507

 

444,747

 

417,329

 

419,033

 

401,994

 

499,854

 

458,447

 

410,427

 

Prepaid and other

 

63,565

 

77,937

 

82,488

 

89,650

 

100,233

 

101,950

 

106,664

 

97,929

 

121,093

 

Current assets of discontinued operations

 

90,864

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Total current assets

 

903,330

 

971,517

 

1,123,808

 

1,187,983

 

1,240,719

 

1,132,905

 

1,184,965

 

952,348

 

965,553

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities, non-current

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

102,716

 

99,330

 

Property and equipment, net

 

83,990

 

88,949

 

97,286

 

110,875

 

117,613

 

117,802

 

123,397

 

138,182

 

149,048

 

Goodwill

 

567,677

 

570,272

 

589,041

 

590,553

 

595,850

 

614,437

 

615,334

 

702,598

 

690,161

 

Intangibles, net

 

41,583

 

40,390

 

39,320

 

38,191

 

37,012

 

36,804

 

35,351

 

34,308

 

32,696

 

Investment in unconsolidated affiliates

 

63,196

 

61,142

 

59,625

 

57,748

 

54,782

 

51,708

 

50,871

 

49,049

 

44,446

 

Other assets

 

46,018

 

49,156

 

43,232

 

55,540

 

48,360

 

52,513

 

53,162

 

67,218

 

70,475

 

Non-current assets of discontinued operations

 

157,505

 

17,878

 

17,491

 

16,925

 

16,233

 

15,461

 

14,730

 

13,959

 

—

 

Total assets

 

$

1,863,299

 

$

1,799,304

 

$

1,969,803

 

$

2,057,815

 

$

2,110,569

 

$

2,021,630

 

$

2,077,810

 

$

2,060,378

 

$

2,051,709

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable, accrued expenses and other

 

$

288,031

 

$

350,250

 

$

358,850

 

$

279,032

 

$

278,553

 

$

298,023

 

$

304,146

 

297,932

 

$

321,077

 

Deferred revenue

 

349,034

 

346,706

 

444,145

 

449,836

 

452,196

 

434,682

 

524,331

 

521,873

 

470,408

 

Current portion of long-term debt

 

18,635

 

18,507

 

23,249

 

7,074

 

1,660

 

1,684

 

184

 

158

 

142

 

Current liabilities of discontinued operations

 

46,028

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Total current liabilities

 

701,728

 

715,463

 

826,244

 

735,942

 

732,409

 

734,389

 

828,661

 

819,963

 

791,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current income taxes payable

 

—

 

—

 

—

 

84,480

 

89,910

 

94,418

 

111,108

 

116,376

 

119,360

 

Other liabilities

 

29,277

 

29,129

 

28,344

 

34,590

 

25,473

 

25,313

 

17,033

 

16,077

 

17,323

 

Long-term debt, less current portion

 

2,185

 

2,152

 

415

 

395

 

312

 

261

 

231

 

177

 

126

 

Non-current liabilities of discontinued operations

 

5,535

 

5,325

 

5,115

 

4,906

 

4,696

 

4,486

 

4,276

 

4,067

 

—

 

Total liabilities

 

738,725

 

752,069

 

860,118

 

860,313

 

852,800

 

858,867

 

961,309

 

956,660

 

928,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock and class B common stock

 

131

 

131

 

131

 

131

 

131

 

131

 

133

 

133

 

133

 

Additional paid-in capital

 

1,629,378

 

1,632,246

 

1,636,023

 

1,687,407

 

1,713,670

 

1,562,646

 

1,468,808

 

1,395,991

 

1,397,282

 

Accumulated other comprehensive income, net

 

64,424

 

68,034

 

87,632

 

87,708

 

93,096

 

115,813

 

118,387

 

155,830

 

143,264

 

Retained deficit

 

(569,359

)

(653,176

)

(614,101

)

(577,744

)

(549,128

)

(515,827

)

(470,827

)

(448,236

)

(417,406

)

Total stockholders’ equity

 

1,124,574

 

1,047,235

 

1,109,685

 

1,197,502

 

1,257,769

 

1,162,763

 

1,116,501

 

1,103,718

 

1,123,273

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

1,863,299

 

$

1,799,304

 

$

1,969,803

 

$

2,057,815

 

$

2,110,569

 

$

2,021,630

 

$

2,077,810

 

$

2,060,378

 

$

2,051,709

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Annualized return on equity

 

14.7

%

-30.9

%

14.5

%

13.7

%

9.3

%

11.0

%

15.8

%

8.1

%

11.1

%

- Book value per share

 

$

8.75

 

$

8.15

 

$

8.63

 

$

9.19

 

$

9.60

 

$

9.19

 

$

9.02

 

$

9.13

 

$

9.30

 

- Cash and marketable securities per share

 

$

3.66

 

$

4.43

 

$

4.64

 

$

5.23

 

$

5.51

 

$

4.97

 

$

4.67

 

$

4.13

 

$

4.42

 

 

(1) - 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

 

 

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

Q1 2008

 

Q2 2008

 

6M 2007

 

6M 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment OIBDA(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers - North America

 

$

61,337

 

$

62,114

 

$

64,984

 

$

71,150

 

$

60,845

 

$

57,589

 

$

60,410

 

$

47,602

 

$

67,636

 

$

131,995

 

$

115,238

 

Monster Careers - International

 

7,064

 

8,248

 

13,001

 

12,594

 

17,362

 

12,896

 

29,980

 

16,662

 

40,361

 

29,956

 

57,023

 

Monster Careers OIBDA (1)

 

68,401

 

70,362

 

77,985

 

83,744

 

78,207

 

70,485

 

90,390

 

64,264

 

107,997

 

161,951

 

172,261

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet Advertising & Fees OIBDA(1)

 

12,306

 

11,615

 

11,553

 

7,470

 

7,438

 

5,316

 

3,118

 

792

 

7,508

 

14,908

 

8,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Monster OIBDA(1)

 

$

80,707

 

$

81,977

 

$

89,538

 

$

91,214

 

$

85,645

 

$

75,801

 

$

93,508

 

$

65,056

 

$

115,505

 

$

176,859

 

$

180,561

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses before D&A(1)

 

$

(8,790

)

$

(12,008

)

$

(20,815

)

$

(17,645

)

$

(14,923

)

$

(9,917

)

$

(11,032

)

$

(12,104

)

$

(61,196

)

$

(32,568

)

$

(73,300

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proforma operating income(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers - North America

 

$

55,597

 

$

57,193

 

$

59,853

 

$

65,878

 

$

55,029

 

$

59,430

 

$

56,482

 

$

42,955

 

$

59,335

 

$

120,907

 

$

102,290

 

Monster Careers - International

 

2,003

 

4,997

 

9,658

 

7,961

 

12,055

 

13,589

 

28,699

 

12,945

 

33,316

 

20,016

 

46,261

 

Monster Careers Proforma operating income(1)

 

57,600

 

62,190

 

69,511

 

73,839

 

67,084

 

73,019

 

85,181

 

55,900

 

92,651

 

140,923

 

148,551

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet Advertising & Fees ProForma operating income (loss)(1)

 

11,318

 

10,642

 

10,623

 

6,062

 

5,679

 

5,404

 

2,658

 

(609

)

4,994

 

11,741

 

4,385

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Monster Proforma income(1)

 

$

68,918

 

$

72,832

 

$

80,134

 

$

79,901

 

$

72,763

 

$

78,423

 

$

87,839

 

$

55,291

 

$

97,645

 

$

152,664

 

$

152,936

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Proforma expenses(1)

 

$

(10,270

)

$

(10,118

)

$

(9,285

)

$

(10,121

)

$

(8,778

)

$

(8,046

)

$

(12,177

)

$

(11,586

)

$

(19,308

)

$

(18,899

)

$

(30,894

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating income:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers - North America

 

$

55,597

 

$

57,193

 

$

59,853

 

$

65,878

 

$

54,579

 

$

51,455

 

$

52,950

 

$

39,701

 

$

58,409

 

$

120,457

 

$

98,110

 

Monster Careers - International

 

2,003

 

4,997

 

9,658

 

7,961

 

12,055

 

7,344

 

24,753

 

9,643

 

31,916

 

20,016

 

41,559

 

Monster Careers operating income

 

57,600

 

62,190

 

69,511

 

73,839

 

66,634

 

58,799

 

77,703

 

49,344

 

90,325

 

140,473

 

139,669

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet Advertising & Fees operating income (loss)

 

11,318

 

10,642

 

10,623

 

6,062

 

5,679

 

3,487

 

1,383

 

(1,431

)

4,656

 

11,741

 

3,225

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Monster operating income

 

$

68,918

 

$

72,832

 

$

80,134

 

$

79,901

 

$

72,313

 

$

62,286

 

$

79,086

 

$

47,913

 

$

94,981

 

$

152,214

 

$

142,894

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses

 

$

(10,895

)

$

(14,206

)

$

(22,851

)

$

(19,948

)

$

(29,470

)

$

(11,289

)

$

(13,647

)

$

(14,569

)

$

(63,732

)

$

(49,418

)

$

(78,301

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margin Analysis:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers - North America OIBDA margin

 

37.7

%

37.2

%

38.6

%

38.7

%

34.9

%

32.8

%

34.8

%

25.9

%

41.2

%

36.8

%

33.1

%

Monster Careers - North America Proforma operating margin

 

34.1

%

34.3

%

35.6

%

35.8

%

31.5

%

33.9

%

32.5

%

23.4

%

36.1

%

33.7

%

29.4

%

Monster Careers - North America operating margin

 

34.1

%

34.3

%

35.6

%

35.8

%

31.3

%

29.4

%

30.5

%

21.6

%

35.6

%

33.6

%

28.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers - International OIBDA margin

 

9.5

%

10.7

%

14.5

%

11.9

%

14.9

%

10.6

%

20.9

%

10.9

%

25.8

%

13.4

%

18.4

%

Monster Careers - International Proforma operating margin

 

2.7

%

6.5

%

10.7

%

7.5

%

10.3

%

11.2

%

20.0

%

8.4

%

21.3

%

9.0

%

14.9

%

Monster Careers - International operating margin

 

2.7

%

6.5

%

10.7

%

7.5

%

10.3

%

6.0

%

17.3

%

6.3

%

20.4

%

9.0

%

13.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers OIBDA margin

 

28.8

%

28.8

%

30.2

%

28.9

%

26.8

%

23.7

%

28.5

%

19.1

%

33.6

%

27.8

%

26.2

%

Monster Careers Proforma operating margin

 

24.3

%

25.5

%

26.9

%

25.4

%

23.0

%

24.6

%

26.9

%

16.6

%

28.9

%

24.2

%

22.6

%

Monster Careers operating margin

 

24.3

%

25.5

%

26.9

%

25.4

%

22.9

%

19.8

%

24.5

%

14.7

%

28.1

%

24.2

%

21.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet Advertising & Fees OIBDA margin

 

43.7

%

36.4

%

37.2

%

23.6

%

22.8

%

16.0

%

10.1

%

2.7

%

22.5

%

23.2

%

13.2

%

Internet Advertising & Fees Proforma operating margin

 

40.2

%

33.3

%

34.2

%

19.2

%

17.4

%

16.3

%

8.6

%

-2.1

%

15.0

%

18.3

%

7.0

%

Internet Advertising & Fees operating margin

 

40.2

%

33.3

%

34.2

%

19.2

%

17.4

%

10.5

%

4.5

%

-4.8

%

14.0

%

18.3

%

5.1

%

 

(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

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

Q1 2008

 

Q2 2008

 

6M 2007

 

6M 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monster Careers

 

89.4

%

88.4

%

89.3

%

90.2

%

89.9

%

90.0

%

91.1

%

91.9

%

90.6

%

90.0

%

91.3

%

Internet Advertising & Fees

 

10.6

%

11.6

%

10.7

%

9.8

%

10.1

%

10.0

%

8.9

%

8.1

%

9.4

%

10.0

%

8.7

%

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

 

35.5

%

37.2

%

38.3

%

36.4

%

39.5

%

37.5

%

36.7

%

36.9

%

35.9

%

37.9

%

36.4

%

Office and general

 

12.1

%

14.9

%

16.9

%

18.3

%

16.0

%

17.5

%

16.3

%

16.8

%

17.4

%

17.1

%

17.1

%

Marketing and promotion

 

25.2

%

22.6

%

21.1

%

22.5

%

22.7

%

21.7

%

22.1

%

30.5

%

19.5

%

22.6

%

25.1

%

Provision for legal settlements, net

 

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

11.3

%

0.0

%

5.6

%

Restructuring and other special charges

 

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

3.4

%

1.6

%

1.9

%

0.8

%

0.0

%

1.3

%

Depreciation expense

 

3.1

%

2.5

%

2.6

%

2.4

%

2.9

%

3.2

%

3.0

%

2.9

%

3.5

%

2.7

%

3.2

%

Amortization of restricted stock and RSU Plan

 

1.3

%

1.1

%

0.8

%

1.3

%

5.3

%

0.9

%

1.0

%

1.4

%

2.4

%

3.3

%

1.9

%

Non-cash stock option expense

 

0.0

%

0.0

%

0.0

%

0.1

%

0.0

%

0.0

%

0.0

%

0.0

%

0.1

%

0.0

%

0.0

%

Amortization of intangibles

 

0.9

%

0.5

%

0.5

%

0.4

%

0.4

%

0.4

%

0.4

%

0.4

%

0.4

%

0.4

%

0.4

%

Operating expenses

 

78.1

%

78.8

%

80.2

%

81.4

%

86.8

%

84.6

%

81.2

%

90.9

%

91.2

%

84.1

%

91.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

21.9

%

21.2

%

19.8

%

18.6

%

13.2

%

15.4

%

18.8

%

9.1

%

8.8

%

15.9

%

9.0

%

Interest and other, net

 

1.5

%

1.9

%

2.2

%

1.7

%

2.1

%

2.0

%

2.0

%

2.0

%

0.9

%

1.9

%

1.4

%

Income from cont. operations, pre-tax

 

23.4

%

23.1

%

22.0

%

20.3

%

15.4

%

17.4

%

20.8

%

11.1

%

9.7

%

17.8

%

10.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

8.2

%

8.1

%

7.7

%

7.2

%

5.4

%

6.2

%

7.3

%

4.1

%

3.4

%

6.3

%

3.8

%

Losses in equity interests, net

 

-0.9

%

-0.7

%

-0.5

%

-0.4

%

-0.9

%

-0.9

%

-0.2

%

-0.5

%

-1.0

%

-0.7

%

-0.8

%

Income from continuing operations

 

14.4

%

14.3

%

13.8

%

12.7

%

9.0

%

10.3

%

13.3

%

6.5

%

5.2

%

10.8

%

5.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

0.5

%

-44.6

%

-0.3

%

-0.4

%

-0.2

%

-0.2

%

-0.3

%

-0.3

%

3.5

%

-0.3

%

1.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

14.9

%

-30.3

%

13.5

%

12.3

%

8.8

%

10.1

%

12.9

%

6.2

%

8.7

%

10.5

%

7.4

%

 


 

Monster Worldwide, Inc.

Statements of Operations - Reconciliation of Non-GAAP Measures

(unaudited, in thousands)

 

 

 

Trended Quarterly Data

 

Year to Date Data

 

Summary P&L Information

 

Q2 2006

 

Q3 2006

 

Q4 2006

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

Q1 2008

 

Q2 2008

 

6M 2007

 

6M 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OIBDA (1)

 

$

71,917

 

$

69,969

 

$

68,723

 

$

73,569

 

$

70,722

 

$

65,884

 

$

82,476

 

$

52,952

 

$

54,309

 

$

144,291

 

$

107,261

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

 

8,204

 

6,937

 

7,448

 

7,860

 

9,350

 

10,408

 

10,589

 

10,803

 

12,330

 

17,210

 

23,133

 

Amortization of restricted stock and RSU Plan

 

3,423

 

2,943

 

2,424

 

4,176

 

17,069

 

2,871

 

3,623

 

5,206

 

8,351

 

21,245

 

13,557

 

Non-cash stock option expense

 

—

 

—

 

—

 

186

 

47

 

104

 

105

 

127

 

182

 

233

 

309

 

Restructuring non-cash compensation expense

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

1,162

 

—

 

—

 

1,162

 

Restructuring non-cash write-offs

 

—

 

—

 

—

 

—

 

—

 

67

 

1,263

 

924

 

923

 

—

 

1,847

 

Amortization of intangibles

 

2,267

 

1,463

 

1,568

 

1,394

 

1,413

 

1,437

 

1,457

 

1,386

 

1,274

 

2,807

 

2,660

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

58,023

 

$

58,626

 

$

57,283

 

$

59,953

 

$

42,843

 

$

50,997

 

$

65,439

 

$

33,344

 

$

31,249

 

$

102,796

 

$

64,593

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proforma operating income (1)

 

$

58,648

 

$

62,714

 

$

70,849

 

$

69,780

 

$

63,985

 

$

70,377

 

$

75,662

 

$

43,705

 

$

78,337

 

$

133,765

 

$

122,042

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Executive Commitments

 

—

 

—

 

—

 

—

 

15,811

 

—

 

—

 

—

 

—

 

15,811

 

—

 

Provision for legal settlements, net

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

40,100

 

—

 

40,100

 

Stock option investigation

 

625

 

4,088

 

13,566

 

9,827

 

5,331

 

2,571

 

1,392

 

2,983

 

4,256

 

15,158

 

7,239

 

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

 

923

 

—

 

1,847

 

Restructuring expenses, less non-cash items

 

—

 

—

 

—

 

—

 

—

 

11,088

 

4,179

 

4,841

 

1,809

 

—

 

6,650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

58,023

 

$

58,626

 

$

57,283

 

$

59,953

 

$

42,843

 

$

50,997

 

$

65,439

 

$

33,344

 

$

31,249

 

$

102,796

 

$

64,593

 

 

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

 


 

Monster Worldwide, Inc.

Selected Statements Discontinued Operations Information - Tickle

(unuadited, in thousands)

 

Summary P&L Information(1)

 

Q1 2007

 

Q2 2007

 

Q3 2007

 

Q4 2007

 

Q1 2008

 

Q2 2008

 

6M 2007

 

6M 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

7,198

 

$

7,164

 

$

7,002

 

$

6,141

 

$

3,894

 

$

2,264

 

$

14,362

 

$

6,158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salary and related

 

984

 

1,198

 

1,310

 

1,434

 

1,240

 

2,319

 

2,182

 

3,559

 

Office and general

 

1,685

 

1,178

 

1,135

 

1,354

 

1,054

 

712

 

2,863

 

1,766

 

Marketing and promotion

 

5,560

 

4,477

 

4,763

 

3,878

 

2,780

 

1,594

 

10,037

 

4,374

 

Depreciation expense

 

425

 

476

 

477

 

479

 

470

 

466

 

901

 

936

 

Amortization of intangibles

 

302

 

302

 

302

 

302

 

302

 

302

 

604

 

604

 

Write-off of long-lived assets

 

—

 

—

 

—

 

—

 

—

 

13,201

 

—

 

13,201

 

Operating expenses

 

8,956

 

7,631

 

7,987

 

7,447

 

5,846

 

18,594

 

16,587

 

24,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

(1,758

)

(467

)

(985

)

(1,306

)

(1,952

)

(16,330

)

(2,225

)

(18,282

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other, net

 

(109

)

9

 

(219

)

42

 

18

 

7

 

(100

)

25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

(1,867

)

(458

)

(1,204

)

(1,264

)

(1,934

)

(16,323

)

(2,325

)

(18,257

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes benefit

 

(738

)

(181

)

(476

)

(467

)

(763

)

(28,592

)

(919

)

(29,355

)

Income from discontinued operations(1)

 

$

(1,129

)

$

(277

)

$

(728

)

$

(797

)

$

(1,171

)

$

12,269

 

$

(1,406

)

$

11,098

 

 

(1) This financial supplement is for the Company’s discontinued Tickle business only and excludes the discontinued operations of its former Advertising & Communications operating segment, which were included in the Company’s consolidated results for the 2007 and 2006 periods.