EX-99.2 3 d529138dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

 

LOGO

FINANCIAL SUPPLEMENT March 31, 2013

Monster Worldwide, Inc. (together with its consolidated subsidiaries, the “Company,” “Monster,” “we,” “our” or “us”) provides this supplement to assist investors in evaluating the Company’s financial and operating metrics. We suggest that the notes to this supplement be 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 generally accepted accounting principles (“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.

 

LOGO

Notes to Financial Supplement

Presentation

Discontinued Operations

For the three months ended March 31, 2013 and 2012, the Company reported a loss from discontinued operations, net of tax, of $6.1 million and $9.6 million, respectively. Included in the results from discontinued operations are the results of our operations in Careers – China, Latin America and Turkey.

During the third quarter of 2012, as part of the Company’s review of strategic alternatives, the Company made the decision to sell its Careers-China business. The sale of the Careers-China business to Saongroup, Ltd. (“Saongroup”) was completed on February 5, 2013. The Company received a 10% minority interest in the combined China business of Saongroup (Saongroup has a Chinese operation as well). Prior to the close of the sale of Careers – China, the Company incurred charges relating to severance benefits associated with terminated employees, retention benefits for employees who will remain with the combined operations and certain lease obligation costs. At February 5, 2013, there was $23.1 million of accumulated unrealized currency translation gain related to the net assets of Careers-China. With the sale of Careers-China on February 5, 2013, the Company recorded the foreign currency translation adjustment as a reduction of the loss on disposition of discontinued operations. Additionally, the Company recorded a tax benefit of $4.0 million related to Careers—China for the three months ended March 31, 2013. Accordingly, the Company recorded a loss from discontinued operations, net of tax, of $4.6 million for the three months ended March 31, 2013. The Company does not expect to incur significant additional charges in future periods relating to Careers—China.

During the fourth quarter of 2012, the Company made the strategic decision to discontinue operations in Latin America and Turkey. All of the Latin America and Turkey business operations were discontinued on or before December 31, 2012. The Company incurred approximately $8.0 million of costs associated with the shutdown of these businesses in the fourth quarter of 2012. In the first quarter of 2013, the Company incurred an additional $2.1 million, primarily relating to severance costs associated with terminated employees of our operations in Latin America and Turkey. Additionally, the Company recorded a tax benefit of $0.5 million related to discontinued operations in Latin America and Turkey for the three months ended March 31, 2013. Accordingly, the Company recorded a loss from discontinued operations, net of tax, of $1.6 million for the three months ended March 31, 2013. The Company does not expect to incur significant additional charges in future periods relating to Latin America or Turkey.

Restructuring

On January 24, 2012, the Company committed to a plan to take a series of restructuring actions. The Company’s decision to adopt the restructuring actions resulted from the Company’s desire to provide the Company with more flexibility to invest in marketing and sales activities in order to improve its long-term growth prospects and profitability. The restructuring actions included reducing the Company’s workforce, consolidation of certain office facilities and the impairment of certain fixed assets. For the three months ended March 31, 2012, the Company incurred $24.3 million of restructuring costs.

On November 8, 2012, the Company announced actions to concentrate resources on core businesses within North America and key European and Asian markets with increased spending in marketing and sales. The restructuring actions included reducing the Company’s workforce, consolidating certain office facilities and impairing certain fixed assets. In the three months ended March 31, 2013, the Company incurred $13.2 million of restructuring costs.

Strategic Alternatives

On March 1, 2012, the Company announced that it had resolved to explore strategic alternatives to maximize value for the Company’s stockholders. During the three months ended March 31, 2013, the Company incurred $1.4 million of costs related to the review of strategic alternatives.

 

2

Income Tax Benefit

In the first quarter of 2012, the Company recognized an income tax benefit relating to losses associated with the Company’s restructuring activities. In the first quarter of 2013, the Company recognized an income tax benefit relating to the reversal of uncertain tax positions. These items have been excluded from our non-GAAP financial statements in the three months ended March 31, 2013 and 2012.

Recovery of Restitution Award from Former Executive

In May 2009, the former Chief Operating Officer of the Company was convicted of securities fraud in connection with the Company’s historical stock option granting practices. As a result of his conviction, he was ordered to pay an amount approximating $5.6 million in a civil forfeiture to the federal government. The Company filed a petition with the United States Department of Justice (“DOJ”) seeking such sum in partial restitution for the damages the former Chief Operating Officer caused to the Company. The DOJ granted the Company’s request during the first quarter of 2012 and remitted $5.6 million to the Company in April 2012, which resulted in a net $5.4 million gain in the three months ended March 31, 2012 after deducting legal fees incurred by the Company.

Reclassifications

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

Non-GAAP financial measures

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, 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 revenue, operating expenses, operating income from continuing operations, operating margin, net income from continuing operations, net (loss) income from discontinued operations, and diluted earnings (loss) per share all exclude certain pro-forma adjustments including: costs incurred for the 2012 restructurings; recovery of restitution award from former executive; costs incurred related to the Company’s review of strategic alternatives; income tax benefits associated with the reversal of income tax reserves on uncertain tax positions and a tax benefit related to certain losses arising from the Company’s restructuring program; and the results of the businesses in Careers – China, Latin America and Turkey as they have been classified as discontinued operations. 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.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is defined as net income or loss before interest income or expense, income tax expense or benefit, net gain or loss in equity interests, depreciation and amortization and non-cash compensation expense. The Company considers EBITDA to be an important indicator of its operational strength which the Company believes is useful to management and investors in evaluating its operating performance. EBITDA is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies.

Operating income before depreciation and amortization (“OIBDA”) is defined as net income or loss 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.

 

3

Free cash flow is defined as cash flow from operating activities less capital expenditures. Free cash flow is considered a liquidity measure and provides useful information about the Company’s ability to generate cash after investments in property and equipment. Free cash flow reflected herein is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies. Free cash flow does not reflect the total change in the Company’s cash position for the period and should not be considered a substitute for such a measure.

Net cash and securities are defined as cash and cash equivalents plus short-term and long-term marketable securities, less total debt. Total available liquidity is defined as cash and cash equivalents, plus short-term and long-term marketable securities, plus unused borrowings under our credit facility. The Company considers net cash and securities and total available liquidity to be important measures of liquidity and indicators of its ability to meet its ongoing obligations. The Company also uses net cash and securities and total available liquidity, among other measures, in evaluating its choices for capital deployment. Net cash and securities and total available liquidity are presented herein as non-GAAP measures and may not be comparable to similarly titled measures used by other companies.

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 Data  

Summary P&L Information

   Q1 2012     Q2 2012     Q3 2012     Q4 2012     FY 2012     Q1 2013  

Monster Careers

   $ 214,369      $ 205,034      $ 202,017      $ 192,672      $ 814,092      $ 193,654   

Internet Advertising & Fees

     19,381        19,543        18,804        18,572        76,300        18,332   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Revenue

     233,750        224,577        220,821        211,244        890,392        211,986   

Salary and related

     104,060        92,558        93,097        90,416        380,131        90,781   

Office and general

     36,643        41,993        44,575        39,111        162,322        35,028   

Marketing and promotion

     49,298        51,426        43,099        44,503        188,326        49,267   

Recovery of restitution award from former executive

     (5,350 )      —          —          —          (5,350 )      —     

Restructuring and other special charges

     24,268        1,015        244        14,831        40,358        13,167   

Depreciation expense

     12,782        12,867        12,991        13,286        51,926        13,000   

Amortization of restricted stock

     8,201        7,254        5,683        6,985        28,123        6,794   

Non-cash stock option expense

     51        —          —          —          51        —     

Amortization of intangibles

     3,083        3,085        3,085        3,100        12,353        3,104   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating expenses

     233,036        210,198        202,774        212,232        858,240        211,141   

Operating income (loss)

     714        14,379        18,047        (988 )      32,152        845   

Interest and other, net

     (1,463 )      (1,189 )      (1,532 )      (1,699 )      (5,883 )      (1,268 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

(Loss) income before income taxes and equity interests

     (749 )      13,190        16,515        (2,687 )      26,269        (423 ) 

Provision for (benefit from) income taxes

     (14,304 )      3,930        (24,871 )      2,267        (32,978 )      (11,999 ) 

Loss in equity interests, net

     (200 )      (255 )      (271 )      (355 )      (1,081 )      (458 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from continuing operations

     13,355        9,005        41,115        (5,309 )      58,166        11,118   

Loss from discontinued operations, net of tax

     (9,613 )      (4,203 )      (235,354 )      (67,716 )      (316,886 )      (6,134 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

   $ 3,742      $ 4,802      $ (194,239 )    $ (73,025 )    $ (258,720 )    $ 4,984   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Basic income (loss) per share:

            

Income (loss) from continuing operations

     0.11        0.08        0.37        (0.05 )      0.52        0.10   

Loss from discontinued operations, net of tax

     (0.08 )      (0.04 )      (2.12 )      (0.61 )      (2.81 )      (0.06 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

   $ 0.03      $ 0.04      $ (1.75 )    $ (0.66 )    $ (2.29 )    $ 0.04   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Diluted income (loss) per share:

            

Income (loss) from continuing operations

     0.11        0.08        0.37        (0.05 )      0.51        0.10   

Loss from discontinued operations, net of tax

     (0.08 )      (0.04 )      (2.10 )      (0.61 )      (2.78 )      (0.06 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

   $ 0.03      $ 0.04      $ (1.73 )    $ (0.66 )    $ (2.27 )    $ 0.04   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Weighted avg. shares outstanding:

            

Basic shares

     116,199        112,937        111,239        111,098        112,866        111,402   

Diluted shares

     117,611        114,038        112,212        111,098        113,995        112,637   

Global employees —continuing operations (ones)

     4,366        4,432        4,331        4,037        4,037        3,852   

Annualized revenue per average employee

   $ 207.4      $ 204.2      $ 201.6      $ 202.0      $ 203.8      $ 215.0   

 

5

Monster Worldwide, Inc.

Non-GAAP Statement of Operations

(unaudited, in thousands, except per share amounts)

 

    Trended Data  

Summary P&L Information

   Q1 2012     Q2 2012     Q3 2012     Q4 2012     FY 2012     Q1 2013  

Monster Careers

   $ 214,369      $ 205,034      $ 202,017      $ 192,672      $ 814,092      $ 193,654   

Internet Advertising & Fees

     19,381        19,543        18,804        18,572        76,300        18,332   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Revenue

     233,750        224,577        220,821        211,244        890,392        211,986   

Salary and related

     104,060        92,558        93,097        90,416        380,131        90,781   

Office and general

     36,643        40,164        43,093        37,763        157,663        33,653   

Marketing and promotion

     49,298        51,426        43,099        44,503        188,326        49,267   

Depreciation expense

     12,782        12,867        12,991        13,286        51,926        13,000   

Amortization of restricted stock

     8,201        7,254        5,683        6,985        28,123        6,794   

Non-cash stock option expense

     51        —           —           —           51        —      

Amortization of intangibles

     3,083        3,085        3,085        3,100        12,353        3,104   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating expenses

     214,118        207,354        201,048        196,053        818,573        196,599   

Operating income

     19,632        17,223        19,774        15,190        71,819        15,387   

Interest and other, net

     (1,463 )      (1,189 )      (1,532 )      (1,699 )      (5,883 )      (1,268 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes and loss in equity interests

     18,169        16,034        18,242        13,491        65,936        14,119   

Provision for income taxes

     6,441        4,919        6,297        4,440        22,097        4,942   

Loss in equity interests, net

     (200 )      (255 )      (271 )      (355 )      (1,081 )      (458 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from continuing operations

     11,528        10,860        11,674        8,696        42,758        8,719   

Diluted income per share:

            

Income from continuing operations

   $ 0.10      $ 0.10      $ 0.10      $ 0.08      $ 0.38      $ 0.08   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Weighted avg. shares outstanding:

            

Basic shares

     116,199        112,937        111,239        111,098        112,866        111,402   

Diluted shares

     117,611        114,038        112,212        112,129        113,995        112,637   

 

6

Monster Worldwide, Inc.

Segment Information and Margin Analysis—GAAP and Non-GAAP

(unaudited, in thousands)

 

     Trended Data  
     Q1 2012     Q2 2012     Q3 2012     Q4 2012     FY 2012     Q1 2013  

Segment Revenue: GAAP

             

Careers—North America

    $ 119,774      $ 116,189      $ 115,455      $ 111,544      $ 462,962      $ 115,935   

Careers—International

      94,595        88,845        86,562        81,128        351,130        77,719   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Careers Revenue—GAAP

      214,369        205,034        202,017        192,672        814,092        193,654   

Internet Advertising & Fees Revenue—GAAP

      19,381        19,543        18,804        18,572        76,300        18,332   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Monster Revenue—GAAP

    $ 233,750      $ 224,577      $ 220,821      $ 211,244      $ 890,392      $ 211,986   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Segment operating income (loss): GAAP

             

Careers—North America

    $ 3,199      $ 14,911      $ 17,169      $ 7,407      $ 42,686      $ 12,423   

Careers—International

      2,881        6,336        7,543        (3,684 )      13,076        (8,991 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Careers operating income GAAP

      6,080        21,247        24,712        3,723        55,762        3,432   

Internet Advertising & Fees operating income GAAP

      3,268        5,307        4,990        4,156        17,721        6,262   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Monster operating income

    $ 9,348      $ 26,554      $ 29,702      $ 7,879      $ 73,483      $ 9,694   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Corporate expenses GAAP

      (8,634 )      (12,175 )      (11,655 )      (8,867 )      (41,331 )      (8,849 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Monster Consolidated operating income (loss) GAAP

    $ 714      $ 14,379      $ 18,047      $ (988 )    $ 32,152      $ 845   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Segment operating income(1): Non-GAAP

             

Careers—North America

    $ 17,369      $ 15,070      $ 17,053      $ 14,163      $ 63,655      $ 20,414   

Careers—International

      11,077        6,852        8,112        3,314        29,355        (3,900 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Careers operating income Non-GAAP

      28,446        21,922        25,165        17,477        93,010        16,514   

Internet Advertising & Fees operating income Non-GAAP

      4,351        5,381        4,999        5,114        19,845        6,347   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Monster Proforma income(1)

    $ 32,797      $ 27,303      $ 30,164      $ 22,591      $ 112,855      $ 22,861   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Corporate expenses Non-GAAP

      (13,165 )      (10,080 )      (10,390 )      (7,401 )      (41,036 )      (7,474 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Monster Consolidated operating income Non-GAAP

    $ 19,632      $ 17,223      $ 19,774      $ 15,190      $ 71,819      $ 15,387   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) 

- See notes to financial supplement for further explanation of Non-GAAP measures.

 

7

Monster Worldwide, Inc.

Segment Information and Margin Analysis—GAAP and Non-GAAP

(unaudited, in thousands)

 

     Trended Data  

Summary P&L Information

    Q1 2012     Q2 2012      Q3 2012      Q4 2012     FY 2012     Q1 2013  

Revenue—GAAP

    $ 233,750      $ 224,577       $ 220,821       $ 211,244      $ 890,392      $ 211,986   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

OIBDA—GAAP (1)

    $ 31,214      $ 37,617       $ 39,806       $ 23,509      $ 132,146      $ 24,518   

Depreciation expense

      12,782        12,867         12,991         13,286        51,926        13,000   

Amortization of restricted stock

      8,201        7,254         5,683         6,985        28,123        6,794   

Non-cash stock option expense

      51        —            —            —           51        —      

Restructuring non-cash write-offs

      6,383        32         —            1,126        7,541        775   

Amortization of intangibles

      3,083        3,085         3,085         3,100        12,353        3,104   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Operating income (loss)—GAAP

    $ 714      $ 14,379       $ 18,047       $ (988 )    $ 32,152      $ 845   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Recovery of restitution award from former executive

      (5,350 )      —            —            —           (5,350 )      —      

Non-GAAP fees associated with strategic alternatives

      —           1,829         1,483         1,347        4,659        1,375   

Restructuring program non-cash write-offs

      6,383        32         —            1,126        7,541        775   

Restructuring expenses, less non-cash items

      17,885        983         244         13,705        32,817        12,392   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total Non-GAAP Adjustments

      18,918        2,844         1,727         16,178        39,667        14,542   

Operating income Non-GAAP(1)

    $ 19,632      $ 17,223       $ 19,774       $ 15,190      $ 71,819      $ 15,387   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

 

(1) 

See notes to financial supplement for further explanation of Non-GAAP measures.

 

8

Monster Worldwide, Inc.

Statements of Cash Flows

(unaudited, in thousands)

 

     Trended Data  
     Q1 2012     Q2 2012     Q3 2012     Q4 2012     FY 2012     Q1 2013  

Cash flows provided by (used for) operating activities:

             

Net income (loss)

    $ 3,742      $ 4,802      $ (194,239 )    $ (73,025 )    $ (258,720 )    $ 4,984   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities:

             

Depreciation and amortization

      17,445        17,518        17,778        17,259        70,000        16,104   

Recovery of restitution award from former executive

      (5,350 )      5,350        —           —           —           —      

Provision for doubtful accounts

      698        656        710        2,405        4,469        535   

Non-cash compensation

      8,324        7,429        5,829        7,382        28,964        6,794   

Deferred income taxes

      (8,499 )      1,499        6,706        (9,520 )      (9,814 )      (2,172 ) 

Non-cash restructuring write-offs and other

      6,383        34        —           1,088        7,505        775   

Loss in equity interests, net

      200        255        271        355        1,081        458   

Tax benefit from change in uncertain tax positions

      —           —           (43,193 )      —           (43,193 )      (12,869 ) 

Impairment of Goodwill and intangibles

      —           —           216,221        51,634        267,855        —      

Amount reclassified from accumulated other comprehensive income

      —           —           —           —           —           (23,109 ) 

Changes in assets and liabilities, net of acquisitions:

             

Accounts receivable

      (11,608 )      16,947        8,002        (15,354 )      (2,013 )      5,907   

Prepaid and other

      (13,582 )      8,486        16,205        2,223        13,332        14,690   

Deferred revenue

      23,752        (27,523 )      (24,506 )      10,821        (17,456 )      (5,039 ) 

Accounts payable, accrued liabilities, and other

      (258 )      (28,584 )      (2,062 )      22,221        (8,683 )      (15,695 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total adjustments

      17,505        2,067        201,961        90,514        312,047        (13,621 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by (used for) operating activities

      21,247        6,869        7,722        17,489        53,327        (8,637 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cash flows used for investing activities:

             

Capital expenditures

      (12,700 )      (20,551 )      (13,651 )      (12,670 )      (59,572 )      (9,149 ) 

Cash funded to and dividends received from equity investee and other

      (779 )      728        (1,298 )      —           (1,349 )      623   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net cash used for investing activities

      (13,479 )      (19,823 )      (14,949 )      (12,670 )      (60,921 )      (8,526 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cash flows (used for) provided by financing activities:

             

Proceeds from borrowings on credit facilities

      189,700        3,655        28,000        3,363        224,718        17,500   

Payments on borrowings on credit facilities

      (225,022 )      (46,494 )      (286 )      (33,907 )      (305,709 )      (11,399 ) 

Proceed from the borrowings on term loan

      100,000        —           —           —           100,000        —      

Payments on borrowings on term loan

      (40,000 )      (1,250 )      (1,250 )      (1,250 )      (43,750 )      (1,250 ) 

Tax withholdings related to net share settlements of restricted stock awards and units

      (2,475 )      (3,564 )      (1,991 )      (452 )      (8,482 )      (1,793 ) 

Repurchase of common stock

      (33,335 )      (25,577 )      (6,699 )      —           (65,611 )      —      

Proceeds from the exercise of employee stock options

      23        —           —           —           23        —      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net cash (used for) provided by financing activities

      (11,109 )      (73,230 )      17,774        (32,246 )      (98,811 )      3,058   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Effects of exchange rates on cash

      5,625        (8,957 )      7,096        509        4,273        (3,172 ) 

Net increase (decrease) in cash and cash equivalents

      2,284        (95,141 )      17,643        (26,918 )      (102,132 )      (17,277 ) 

Cash and cash equivalents, beginning of period

      250,317        252,601        157,460        175,103        250,317        148,185   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cash and cash equivalents, end of period

    $ 252,601      $ 157,460      $ 175,103      $ 148,185      $ 148,185      $ 130,908   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

9

Monster Worldwide, Inc.

Consolidated Condensed Balance Sheets

(unaudited, in thousands, except selected financial ratios)

 

     Trended Data  
     March 2012     June 2012     September 2012     December 2012     March 2013  
ASSETS           

Current assets:

           

Cash and cash equivalents

    $ 252,601      $ 157,460      $ 175,103      $ 148,185      $ 130,908   

Accounts receivable, net

      358,004        333,640        315,058        335,905        333,174   

Prepaid and other

      95,972        85,845        72,226        73,861        75,229   

Current assets of discontinued operations

      —          —          80,303        21,702        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total current assets

      706,577        576,945        642,690        579,653        539,311   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Property and equipment, net

      159,632        161,432        150,541        147,613        137,998   

Goodwill

      1,142,194        1,118,942        878,688        887,271        880,715   

Intangibles, net

      47,603        43,729        35,105        32,583        29,385   

Investment in unconsolidated affiliates

      1,764        335        1,159        562        170   

Other assets

      43,679        44,135        30,412        37,183        38,644   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total assets

    $ 2,101,449      $ 1,945,518      $ 1,738,595      $ 1,684,865      $ 1,626,223   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
LIABILITIES AND STOCKHOLDERS’ EQUITY           

Current liabilities:

           

Accounts payable, accrued expenses and other

    $ 218,681      $ 189,927      $ 170,700      $ 181,914      $ 186,142   

Deferred revenue

      408,334        372,239        332,723        351,546        356,468   

Borrowings on credit facility short-term

      4,545        8,143        7,941        11,389        —     

Current portion of long-term debt

      5,000        5,625        6,250        6,875        7,500   

Current liabilities of discontinued operations

      —          —          31,881        33,256        3,771   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total current liabilities

      636,560        575,934        549,495        584,980        553,881   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Long-term income taxes payable

      96,666        96,692        61,612        63,465        51,255   

Long-term debt, less current portion

      204,000        155,625        181,750        145,975        161,600   

Other liabilities

      12,542        16,042        10,897        10,406        8,352   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities

      949,768        844,293        803,754        804,826        775,088   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Common stock and class B common stock

      139        139        140        140        141   

Additional paid-in capital

      1,374,246        1,352,205        1,349,781        1,357,126        1,360,236   

Accumulated other comprehensive income

      79,223        46,006        76,284        87,162        50,163   

Accumulated deficit

      (301,927 )      (297,125 )      (491,364 )      (564,389 )      (559,405 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total stockholders’ equity

      1,151,681        1,101,225        934,841        880,039        851,135   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities and stockholders’ equity

    $ 2,101,449      $ 1,945,518      $ 1,738,595      $ 1,684,865      $ 1,626,223   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Selected Financial Ratios(1)

           

- Annualized return on equity

      1.3 %      1.7 %      -76.3 %      -32.2 %      2.3 % 

- Book value per share

    $ 10.09      $ 9.85      $ 8.42      $ 7.92      $ 7.60   

- Cash and marketable securities per share

    $ 2.21      $ 1.41      $ 1.58      $ 1.33      $ 1.17   

- Net cash and securities

    $ 39,056      $ (11,933 )    $ (20,838 )    $ (16,054 )    $ (38,192 ) 

 

(1) 

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

 

10