EX-99.1 2 c76473exv99w1.htm EXHIBIT 99.1 Filed by Bowne Pure Compliance
EXHIBIT 99.1
Monster Worldwide Reports Third Quarter and Nine Months 2008 Results
Diluted Earnings Per Share from Continuing Operations Increases to $0.36 on Flat Revenue; Non-GAAP Diluted Earnings Per Share from Continuing Operations Increases to $0.40
Careers International Revenue Grows 17% as Operating Margin Expands to 21.2% and Non-GAAP Operating Margin Reaches 22.8%
Net Cash and Securities of $486 million
Cash Flow From Operations of $92 Million
Monster Worldwide to List on New York Stock Exchange
New York, October 30, 2008— Monster Worldwide, Inc. (NASDAQ:MNST) today reported financial results for the third quarter ended September 30, 2008.
Third Quarter Results
Total revenue was $332 million compared with $330 million in the comparable quarter of 2007. Revenue was impacted by approximately $6 million of foreign currency benefits. In last year’s third quarter, foreign currency contributed approximately $8 million to revenue.
Careers revenue was $298 million, essentially flat with last year’s third quarter. Careers International revenue, which accounted for 43% of consolidated revenue, grew 17% over the prior year period, or 13% excluding the benefits of currency, to $142 million. North American Careers revenue was $155 million compared with $175 million in last year’s third quarter. Internet Advertising & Fees revenue was $35 million, up 4% over last year’s comparable quarter.
Consolidated operating expenses were $270 million, and income from continuing operations was $43 million, or $0.36 per diluted share in the third quarter of 2008 compared to $34 million, or $0.26 per diluted share, in the comparable 2007 period. The effect of foreign exchange rates benefited consolidated operating income by approximately $1 million, compared to approximately $2 million in the third quarter of 2007.

 

1

 

Included in income from continuing operations for the three months ended September 30, 2008 is $7 million of pre-tax pro forma expenses, or $0.04 per diluted share, associated with the Company’s restructuring plan and matters related to the Company’s historical stock option grant practices. 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, income from continuing operations in the third quarter of 2008 was $48 million, or $0.40 per diluted share, compared to $46 million, or $0.36 per diluted share, in the prior year.
At September 30, 2008, the Company had $733 million of cash, cash equivalents and available for sale securities compared with $533 million at June 30, 2008. During the quarter, the Company borrowed $247 million under its existing credit facility as a precautionary measure to provide additional financial flexibility. Approximately $94 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 September 30, 2008. As a result, the Company ended the quarter with net cash and securities of $486 million, before the payment of $174 million for the remaining interest in ChinaHR, which occurred in October 2008.
Cash generated from operating activities was $92 million in the third quarter of 2008 compared to $73 million generated in the prior year period. Capital expenditures were $21 million, reflecting the Company’s strategic investments in technology and infrastructure. During the quarter, the Company repurchased 2.2 million shares of its common stock for an aggregate cost of $42 million. The Company currently has $126 million remaining under the current stock repurchase program. Monster Worldwide’s deferred revenue balance at September 30, 2008 was $412 million, compared with last year’s third quarter balance of $435 million.

 

2

 

“Monster’s strong third quarter earnings growth and solid cash flow generation in the face of a severe global economic slowdown clearly demonstrate the Company’s ability to manage its business efficiently. During the quarter we reduced costs while aggressively investing in critical areas that will drive future growth. As a result, operating expenses were roughly flat with last year’s levels while we strategically expanded our US sales force and substantially enhanced our customer service capability. We have made significant progress in the development of new products for both seekers and employers as we prepare to launch a new job seeker site and user experience in early January 2009,” said Timothy Yates, Executive Vice President and Chief Financial Officer of Monster Worldwide.
Nine Months Results
Monster Worldwide reported total revenue of $1.05 billion for the nine months ended September 30, 2008 compared to $976 million in the comparable period last year, an 8% increase, or 4% before the benefit of foreign exchange rates. Careers revenue grew 9% to $955 million compared with $879 million in the 2007 period. Internet Advertising & Fees reported revenue of $98 million, essentially flat with the prior year period. The Company reported income from continuing operations of $85 million, or $0.70 per diluted share, compared to $104 million or $0.79 per diluted share in the prior year period.
Sal Iannuzzi, Chairman, President and Chief Executive Officer of Monster Worldwide said, “We view the current economic downturn as an opportunity to continue to invest and strengthen the Monster brand and value proposition across our entire global organization, while remaining vigilant in controlling costs. Our recently completed acquisition of ChinaHR, the region’s fastest growing online recruitment resource, provides unparalleled size and reach and further distances Monster from the competition. We cannot predict when the market will improve, however, we are working hard to capture market share and position the Company for stronger growth when the global economy rebounds.”

 

3

 

Monster Worldwide to List on New York Stock Exchange
Monster today announced that it has filed an application to list its common stock on NYSE Euronext (“NYSE”). The Company expects to begin trading on the NYSE on November 10, 2008 (subject to approval by the NYSE) under the stock symbol MWW. The Company will continue to trade on the NASDAQ Global Select Market until that time.
Mr. Iannuzzi added, “We believe the NYSE is a prestigious platform for Monster, a platform that is committed to integrity in governance, innovation, and global growth. These are exciting times for Monster and our move to the NYSE is consistent with the goals, strategies, and values of the new Monster.”
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/Q308.pdf or through the Company’s Investor Relations website at http://ir.monster.com.
Conference Call Information
Third quarter 2008 results will be discussed on Monster Worldwide’s quarterly conference call taking place on October 30, 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# 68058316. 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 #68058316. This number is valid until midnight on November 6, 2008.
Contacts
Investors: Robert Jones, (212) 351-7032, Robert.Jones@monsterworldwide.com
Media: Nick Ragone, (646) 935-4046, Nick.Ragone@ketchum.com

 

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About Monster Worldwide
Monster Worldwide, Inc. (NASDAQ: MNST), parent company of Monster(R), 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, Asia and Latin America, 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
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: costs associated with the Company’s historical stock option grant practices, 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.

 

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Net cash and securities is defined as cash and cash equivalents plus short-term and long-term marketable securities, less total debt. The Company considers net cash and securities to be an important measure of liquidity and an indicator of its ability to meet its ongoing obligations. The Company also uses net cash and securities, among other measures, in evaluating its choices for capital deployment. Net cash and securities presented herein is a non-GAAP measure and may not be comparable to similarly titled measures used by other companies.
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 Company’s historical stock option grant practices, 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 September 30,     Nine Months Ended September 30,  
    2008     2007     2008     2007  
 
                                
Revenue
   $ 332,189     $ 330,142     $ 1,052,955     $ 975,957  
 
                        
 
                                
Salaries and related
     136,506       126,940       412,833       393,259  
Office and general
     71,834       69,466       221,091       200,089  
Marketing and promotion
     57,684       71,584       238,514       217,661  
Provision for legal settlements, net
     —       —       40,100       —  
Restructuring and other special charges
     3,592       11,155       13,251       11,155  
 
                        
Total operating expenses
     269,616       279,145       925,789       822,164  
 
                        
 
                                
Operating income
     62,573       50,997       127,166       153,793  
 
                                
Interest and other, net
     5,283       6,507       15,723       18,823  
 
                        
 
                                
Income from continuing operations before income taxes and equity interests
     67,856       57,504       142,889       172,616  
 
                                
Income taxes
     22,734       20,474       50,030       61,151  
Loss in equity interests, net
     (2,086 )     (3,074 )     (7,500 )     (7,460 )
 
                        
 
                                
Income from continuing operations
     43,036       33,956       85,359       104,005  
Income (loss) from discontinued operations, net of tax
     (258 )     (655 )     10,840       (2,606 )
 
                        
 
                                
Net income
   $ 42,778     $ 33,301     $ 96,199     $ 101,399  
 
                        
 
                                
Basic earnings per share:
                                
 
                                
Income from continuing operations
   $ 0.36     $ 0.26     $ 0.70     $ 0.80  
Income (loss) from discontinued operations, net of tax
     —       (0.01 )     0.09       (0.02 )
 
                        
Basic earnings per share*
   $ 0.36     $ 0.26     $ 0.79     $ 0.78  
 
                        
 
                                
Diluted earnings per share:
                                
 
                                
Income from continuing operations
   $ 0.36     $ 0.26     $ 0.70     $ 0.79  
Income (loss) from discontinued operations, net of tax
     —       (0.01 )     0.09       (0.02 )
 
                        
Diluted earnings per share*
   $ 0.35     $ 0.25     $ 0.79     $ 0.77  
 
                        
 
                                
*Earnings per share may not add in certain periods due to rounding.
                                
 
                                
Weighted average shares outstanding:
                                
 
                                
Basic
     120,057       129,499       121,213       129,893  
 
                        
 
                                
Diluted
     120,722       130,757       121,884       132,044  
 
                        
 
                                
Operating income before depreciation and amortization:
                                
 
                                
Operating income
   $ 62,573     $ 50,997     $ 127,166     $ 153,793  
Depreciation and amortization of intangibles
     14,710       11,845       40,503       31,862  
Amortization of stock based compensation
     7,602       2,975       21,468       24,453  
Restructuring non-cash expenses
     924       67       3,933       67  
 
                        
Operating income before depreciation and amortization
   $ 85,809     $ 65,884     $ 193,070     $ 210,175  
 
                        

 

 

MONSTER WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
                 
    Nine Months Ended September 30,  
    2008     2007  
Cash flows provided by operating activities:
                
Net income
   $ 96,199     $ 101,399  
 
            
Adjustments to reconcile net income to net cash provided by operating activities:
                
(Income) loss from discontinued operations, net of tax
     (10,840 )     2,606  
Depreciation and amortization of intangibles
     40,503       31,862  
Provision for legal settlements, net
     40,100       —  
Receipts and payments for legal settlements, net
     5,700       —  
Provision for doubtful accounts
     11,174       8,453  
Non-cash compensation
     22,630       24,453  
Deferred income taxes
     (7,142 )     (2,697 )
Loss (gain) on disposal of assets
     3,009       (574 )
Loss in equity interests and other
     7,500       7,460  
Changes in assets and liabilities, net of business combinations:
                
Accounts receivable
     131,891       34,065  
Prepaid and other
     21,620       (12,211 )
Deferred revenue
     (112,567 )     (9,464 )
Accounts payable, accrued liabilities and other
     (4,924 )     24,749  
Net cash used for operating activities of discontinued operations
     (4,091 )     (5,106 )
 
            
Total adjustments
     144,563       103,596  
 
            
Net cash provided by operating activities
     240,762       204,995  
 
            
 
                
Cash flows provided by (used for) investing activities:
                
Capital expenditures
     (71,224 )     (47,560 )
Purchase of marketable securities
     (182,147 )     (1,009,836 )
Sales and maturities of marketable securities
     502,305       1,035,983  
Payments for acquisitions and intangible assets, net of cash acquired
     (126,195 )     (1,939 )
Cash funded to equity investee
     (5,000 )     (10,000 )
Dividends received from equity investee
     1,011       —  
Net cash used for investing activities of discontinued operations
     —       (255 )
 
            
Net cash provided by (used for) investing activities
     118,750       (33,607 )
 
            
 
                
Cash flows (used for) provided by financing activities:
                
Proceeds from borrowings on credit facility short-term
     247,000       —  
Repurchase of common stock
     (128,133 )     (164,734 )
Proceeds from exercise of employee stock options
     1,156       54,052  
Excess tax benefits from equity compensation plans
     981       13,954  
Payments on debt obligations
     (156 )     (58 )
Payments on acquisition debt
     —       (21,862 )
 
            
Net cash (used for) provided by financing activities
     120,848       (118,648 )
 
            
 
                
Effects of exchange rates on cash
     (4,980 )     5,795  
 
                
Net increase in cash and cash equivalents
     475,380       58,535  
Cash and cash equivalents, beginning of period
     129,744       58,680  
 
            
Cash and cash equivalents, end of period
   $ 605,124     $ 117,215  
 
            
 
                
Free cash flow:
                
 
                
Net cash provided by operating activities
   $ 240,762     $ 204,995  
Less: Capital expenditures
     (71,224 )     (47,560 )
 
            
Free cash flow
   $ 169,538     $ 157,435  
 
            

 

 

 

MONSTER WORLDWIDE, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
                 
    September 30, 2008     December 31, 2007  
 
                
Assets:
                
 
                
Cash and cash equivalents
   $ 605,124     $ 129,744  
Available-for-sale securities, current
     33,823       448,703  
Accounts receivable, net
     358,214       499,854  
Available-for-sale securities, non - current
     93,728       —  
Property and equipment, net
     152,352       123,397  
Goodwill and intangibles, net
     743,858       650,685  
Other assets
     215,875       210,696  
Total assets of discontinued operations
     —       14,731  
 
            
Total assets
   $ 2,202,974     $ 2,077,810  
 
            
 
                
Liabilities and Stockholders’ equity:
                
 
                
Accounts payable, accrued expenses and other
   $ 328,546     $ 304,146  
Deferred revenue
     411,764       524,331  
Borrowings on credit facility short-term
     247,000       —  
Non-current income taxes payable
     115,318       111,108  
Other liabilities
     23,682       17,033  
Debt
     43       415  
Total liabilities of discontinued operations
     —       4,276  
 
            
Total liabilities
     1,126,353       961,309  
 
            
 
                
Stockholders’ equity
     1,076,621       1,116,501  
 
            
 
                
Total liabilities and stockholders’ equity
   $ 2,202,974     $ 2,077,810  
 
            

 

 

 

MONSTER WORLDWIDE, INC.
UNAUDITED OPERATING SEGMENT INFORMATION
(in thousands)
                                         
                    Internet              
    Careers -     Careers -     Advertising &     Corporate        
Three Months Ended September 30, 2008   North America     International     Fees     Expenses     Total  
 
                                        
Revenue
   $ 155,165     $ 142,441     $ 34,583             $ 332,189  
Operating income
     43,120       30,231       4,726     $ (15,504 )     62,573  
OIBDA
     52,516       39,060       7,425       (13,192 )     85,809  
 
                                        
Operating margin
     27.8 %     21.2 %     13.7 %             18.8 %
OIBDA margin
     33.8 %     27.4 %     21.5 %             25.8 %
                                         
                    Internet              
    Careers -     Careers -     Advertising &     Corporate        
Three Months Ended September 30, 2007   North America     International     Fees     Expenses     Total  
 
                                        
Revenue
   $ 175,309     $ 121,687     $ 33,146             $ 330,142  
Operating income
     51,455       7,344       3,487     $ (11,289 )     50,997  
OIBDA
     57,589       12,896       5,316       (9,917 )     65,884  
 
                                        
Operating margin
     29.4 %     6.0 %     10.5 %             15.4 %
OIBDA margin
     32.8 %     10.6 %     16.0 %             20.0 %
                                         
                    Internet              
    Careers -     Careers -     Advertising &     Corporate        
Nine Months Ended September 30, 2008   North America     International     Fees     Expenses     Total  
 
                                        
Revenue
   $ 502,983     $ 452,386     $ 97,586             $ 1,052,955  
Operating income
     141,230       71,790       7,951     $ (93,805 )     127,166  
OIBDA
     167,754       96,083       15,725       (86,492 )     193,070  
 
                                        
Operating margin
     28.1 %     15.9 %     8.1 %             12.1 %
OIBDA margin
     33.4 %     21.2 %     16.1 %             18.3 %
                                         
                    Internet              
    Careers -     Careers -     Advertising &     Corporate        
Nine Months Ended September 30, 2007   North America     International     Fees     Expenses     Total  
 
                                        
Revenue
   $ 533,807     $ 344,738     $ 97,412             $ 975,957  
Operating income
     171,912       27,360       15,228     $ (60,707 )     153,793  
OIBDA
     189,584       42,852       20,224       (42,485 )     210,175  
 
                                        
Operating margin
     32.2 %     7.9 %     15.6 %             15.8 %
OIBDA margin
     35.5 %     12.4 %     20.8 %             21.5 %

 

 

 

MONSTER WORLDWIDE, INC.
UNAUDITED NON-GAAP STATEMENTS OF OPERATIONS AND RECONCILIATIONS
(in thousands, except per share amounts)
                                                 
    For the Three Months Ended September, 2008     For the Three Months Ended September, 2007  
            Proforma                     Proforma        
    As Reported     Adjustments     Non-GAAP     As Reported     Adjustments     Non-GAAP  
 
                                                
Revenue
   $ 332,189       —     $ 332,189     $ 330,142       —     $ 330,142  
 
                                                
Salaries and related
     136,506       —       136,506       126,940       364  a     127,304  
Office and general
     71,834       (3,875 ) a      67,959       69,466       (8,589 ) a      60,877  
Marketing and promotion
     57,684       —       57,684       71,584       —       71,584  
Restructuring and other special charges
     3,592       (3,592 ) c      —       11,155       (11,155 )     —  
 
                                    
Total operating expenses
     269,616       (7,467 )     262,149       279,145       (19,380 )     259,765  
 
                                    
Operating income
     62,573       7,467       70,040       50,997       19,380       70,377  
Operating margin
     18.8 %             21.1 %     15.4 %             21.3 %
 
                                                
Interest and other, net
     5,283       —       5,283       6,507       —       6,507  
 
                                    
 
                                                
Income from continuing operations before income taxes and equity interests
     67,856       7,467       75,323       57,504       19,380       76,884  
 
                                                
Income taxes
     22,734       2,502 ) d      25,236       20,474       6,900  d      27,374  
Losses in equity interests, net
     (2,086 )     —       (2,086 )     (3,074 )     —       (3,074 )
 
                                    
Income from continuing operations
   $ 43,036     $ 4,965     $ 48,001     $ 33,956     $ 12,480     $ 46,436  
 
                                    
 
                                                
Diluted earnings per share from continuing operations
   $ 0.36     $ 0.04     $ 0.40     $ 0.26     $ 0.10     $ 0.36  
 
                                    
 
                                                
Weighted average shares outstanding:
                                                
Diluted
     120,722       120,722       120,722       130,757       130,757       130,757  
                                                 
    For the Nine Months Ended September, 2008     For the Nine Months Ended September, 2007  
            Proforma                     Proforma        
    As Reported     Adjustments     Non-GAAP     As Reported     Adjustments     Non-GAAP  
 
                                                
Revenue
   $ 1,052,955       —     $ 1,052,955     $ 975,957       —     $ 975,957  
 
                                                
Salaries and related
     412,833       93  a      412,926       393,259       (15,778 ) a      377,481  
Office and general
     221,091       (11,658 ) a      209,433       200,089       (23,416 ) a      176,673  
Marketing and promotion
     238,514       —       238,514       217,661       —       217,661  
Provision for legal settlements, net
     40,100       (40,100 ) b      —       —       —       —  
Restructuring and other special charges
     13,251       (13,251 ) c      —       11,155       (11,155 )     —  
 
                                    
Total operating expenses
     925,789       (64,916 )     860,873       822,164       (50,349 )     771,815  
 
                                    
Operating income
     127,166       64,916       192,082       153,793       50,349       204,142  
Operating margin
     12.1 %             18.2 %     15.8 %             20.9 %
 
                                                
Interest and other, net
     15,723       —       15,723       18,823       —       18,823  
 
                                    
 
                                                
Income from continuing operations before income taxes and equity interests
     142,889       64,916       207,805       172,616       50,349       222,965  
 
                                                
Income taxes
     50,030       22,729  d      72,759       61,151       17,837  d      78,988  
Losses in equity interests, net
     (7,500 )     —       (7,500 )     (7,460 )     —       (7,460 )
 
                                    
Income from continuing operations
   $ 85,359     $ 42,187     $ 127,546     $ 104,005     $ 32,512     $ 136,517  
 
                                    
 
                                                
Diluted earnings per share from continuing operations *
   $ 0.70     $ 0.35     $ 1.05     $ 0.79     $ 0.25     $ 1.03  
 
                                    
 
                                                
Weighted average shares outstanding:
                                                
Diluted
     121,884       121,884       121,884       132,044       132,044       132,044  
Note Regarding ProForma Adjustments:
The financial information included herein contains certain non-GAAP financial measures. This information is not intended to be used in place of the financial information prepared and presented in accordance with GAAP, nor is it intended to be considered in isolation. We believe that the above presentation of non-GAAP measures provide useful information to management and investors regarding certain core operating and business trends relating to our results of operations, exclusive of certain restructuring related and other special charges.
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 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)
                                         
                    Internet              
    Careers -     Careers -     Advertising &     Corporate        
Three Months Ended September 30, 2008   North America     International     Fees     Expenses     Total  
     
Revenue
   $ 155,165     $ 142,441     $ 34,583             $ 332,189  
Operating income — GAAP
   $ 43,120     $ 30,231     $ 4,726     $ (15,504 )   $ 62,573  
Proforma Adjustments
     651       2,236       251       4,329       7,467  
 
                              
Operating income — Non GAAP
   $ 43,771     $ 32,467     $ 4,977     $ (11,175 )   $ 70,040  
 
                              
     
Operating margin — GAAP
     27.8 %     21.2 %     13.7 %             18.8 %
Operating margin — Non GAAP
     28.2 %     22.8 %     14.4 %             21.1 %
                                         
                    Internet              
    Careers -     Careers -     Advertising &     Corporate        
Three Months Ended September 30, 2007   North America     International     Fees     Expenses     Total  
     
Revenue
   $ 175,309     $ 121,687     $ 33,146             $ 330,142  
Operating income — GAAP
   $ 51,455     $ 7,344     $ 3,487     $ (11,289 )   $ 50,997  
Proforma Adjustments
     7,975       6,245       1,917       3,243       19,380  
 
                              
Operating income — Non GAAP
   $ 59,430     $ 13,589     $ 5,404     $ (8,046 )   $ 70,377  
 
                              
     
Operating margin — GAAP
     29.4 %     6.0 %     10.5 %             15.4 %
Operating margin — Non GAAP
     33.9 %     11.2 %     16.3 %             21.3 %
                                         
                    Internet              
    Careers -     Careers -     Advertising &     Corporate        
Nine Months Ended September 30, 2008   North America     International     Fees     Expenses     Total  
     
Revenue
   $ 502,983     $ 452,386     $ 97,586             $ 1,052,955  
Operating income — GAAP
   $ 141,230     $ 71,790     $ 7,951     $ (93,805 )   $ 127,166  
Proforma Adjustments
     4,831       6,938       1,411       51,736       64,916  
 
                              
Operating income — Non GAAP
   $ 146,061     $ 78,728     $ 9,362     $ (42,069 )   $ 192,082  
 
                              
     
Operating margin — GAAP
     28.1 %     15.9 %     8.1 %             12.1 %
Operating margin — Non GAAP
     29.0 %     17.4 %     9.6 %             18.2 %
                                         
                    Internet              
    Careers -     Careers -     Advertising &     Corporate        
Nine Months Ended September 30, 2007   North America     International     Fees     Expenses     Total  
     
Revenue
   $ 533,807     $ 344,738     $ 97,412             $ 975,957  
Operating income — GAAP
   $ 171,912     $ 27,360     $ 15,228     $ (60,707 )   $ 153,793  
Proforma Adjustments
     8,425       6,245       1,917       33,762       50,349  
 
                              
Operating income — Non GAAP
   $ 180,337     $ 33,605     $ 17,145     $ (26,945 )   $ 204,142  
 
                              
     
Operating margin — GAAP
     32.2 %     7.9 %     15.6 %             15.8 %
Operating margin — Non GAAP
     33.8 %     9.7 %     17.6 %             20.9 %