Exhibit 99.2
FINANCIAL SUPPLEMENT
June 30, 2009
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.
Notes to Financial Supplement
Presentation
Provision for Legal Settlements, net
In the second quarter of 2008, the Company recorded a $40.1 million provision for legal settlements, net, relating to estimated settlements, costs and expenses arising out of the legal actions regarding the Company’s historical stock option granting practices.
The provision for legal settlements, net in the second quarter of 2008 included approximately $25.1 million for the settlement of the securities class action regarding the Company’s historical stock option granting practices. In July 2008, the Company agreed to settle the securities class action, subject to court approval. Court approval was received in October 2008. Under the terms of the settlement, the defendants paid $47.5 million to the class, of which the Company’s cost was approximately $25.1 million, net of its insurance recovery and contribution from 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 the Company’s historical stock option grant practices. In May 2009, the Company agreed, without admitting or denying wrongdoing, to pay a $2.5 million penalty to the United States Securities and Exchange Commission (the “SEC”) to settle claims arising out of the SEC’s inquiry into the Company’s stock option granting practices.
Professional Fees
For the three months ended June 30, 2009 and 2008, we recorded approximately $2.2 million and $4.3 million, respectively, of professional fees relating to our historical stock option grant practices. For the six months ended June 30, 2009 and 2008, we recorded approximately $5.3 million and $7.3 million, respectively, of professional fees relating to our historical stock option grant practices. 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 2009, we expect to continue to incur significant professional fees related to legal fees paid on behalf of former employees and former members of senior management in connection with ongoing matters relating to our historical stock option grant practices.
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. Subsequent to the announcement of this plan, the Company made a strategic decision to in-source customer service and therefore the current reduction is 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 was 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. As of June 30, 2009, all of the initiatives relating to the 2007 restructuring program are complete and no new charges will be incurred in the future relating to this program. Since the inception of the 2007 restructuring plan through June 30, 2009, we have incurred $49.1 of restructuring expenses.
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For the three months ended June 30, 2009 and 2008, we recorded $5.1 million and $2.7 million of restructuring costs, respectively, primarily related to severance, fixed asset write-offs and office consolidations. For the six months ended June 30, 2009 and 2008, we recorded $16.1 million and $9.7 million of restructuring costs, respectively, primarily related to severance, fixed asset write-offs and office consolidations.
Deferred revenue related to acquisitions
During the fourth quarter of 2008, we completed the acquisition of ChinaHR. In accordance with existing purchase accounting rules, we are required to write down a portion of ChinaHR’s deferred revenue to its fair value. Consequently, in post acquisition periods, we do not recognize the full amount of this deferred revenue. When measuring the performance of our business, however, we add back the revenue resulting from this fair value adjustment as we believe that the inclusion of this revenue provides useful information to our management, as well as to investors. For the three and six months ended June 30, 2009, the fair value adjustment to ChinaHR’s deferred revenue was $0.7 million and $1.7 million, respectively.
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.
Security Breach
In August 2007, we announced a security breach related to unauthorized access to our resume database. We took remediation measures, including the procurement of the capability to assist any potentially affected customers. For the six months ended June 30, 2008, we recorded $0.5 million related to the breach, which was recorded as a component of office and general in the consolidated statement of operations.
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.
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Non-GAAP revenue, operating expenses, operating income, operating margin, income from continuing operations and diluted earnings per share all exclude certain pro forma adjustments including: deferred revenue fair value purchase accounting adjustment related to ChinaHR, 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.
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 an important measure of liquidity and an indicator 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
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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
Net cash and securities
We calculate cash and marketable securities per share as follows:
(Cash and cash equivalents + available-for-sale securities, current, + available-for-sale securities, non-current - borrowings on credit facility short-term - current portion of long-term debt - long-term debt, less current portion)
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Monster Worldwide, Inc.
Statements of Operations
(unaudited, in thousands, except per share amounts)
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| | Trended Quarterly Data | | | Year to Date Data | |
Summary P&L Information | | Q2 2007 | | | Q3 2007 | | | Q4 2007 | | | Q1 2008 | | | Q2 2008 | | | Q3 2008 | | | Q4 2008 | | | Q1 2009 | | | Q2 2009 | | | 6M 2008 | | | 6M 2009 | |
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Monster Careers | | $ | 291,326 | | | $ | 296,996 | | | $ | 316,877 | | | $ | 336,810 | | | $ | 320,953 | | | $ | 297,606 | | | $ | 257,931 | | | $ | 222,849 | | | $ | 190,397 | | | $ | 657,763 | | | $ | 413,246 | |
Internet Advertising & Fees | | | 32,659 | | | | 33,146 | | | | 30,970 | | | | 29,662 | | | | 33,341 | | | | 34,583 | | | | 32,741 | | | | 31,554 | | | | 32,660 | | | | 63,003 | | | | 64,214 | |
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Revenue | | | 323,985 | | | | 330,142 | | | | 347,847 | | | | 366,472 | | | | 354,294 | | | | 332,189 | | | | 290,672 | | | | 254,403 | | | | 223,057 | | | | 720,766 | | | | 477,460 | |
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Salary and related | | | 127,839 | | | | 123,965 | | | | 127,666 | | | | 135,115 | | | | 127,346 | | | | 128,904 | | | | 123,211 | | | | 112,037 | | | | 103,564 | | | | 262,461 | | | | 215,601 | |
Office and general | | | 51,856 | | | | 57,621 | | | | 56,708 | | | | 61,710 | | | | 61,754 | | | | 57,124 | | | | 44,091 | | | | 45,793 | | | | 42,917 | | | | 123,464 | | | | 88,710 | |
Marketing and promotion | | | 73,568 | | | | 71,584 | | | | 76,818 | | | | 111,854 | | | | 68,976 | | | | 57,684 | | | | 52,684 | | | | 73,691 | | | | 44,953 | | | | 180,830 | | | | 118,644 | |
Provision for legal settlements, net | | | — | | | | — | | | | — | | | | — | | | | 40,100 | | | | — | | | | — | | | | — | | | | — | | | | 40,100 | | | | — | |
Restructuring and other special charges | | | — | | | | 11,155 | | | | 5,442 | | | | 6,927 | | | | 2,732 | | | | 3,592 | | | | 3,156 | | | | 11,008 | | | | 5,097 | | | | 9,659 | | | | 16,105 | |
Depreciation expense | | | 9,350 | | | | 10,408 | | | | 10,589 | | | | 10,803 | | | | 12,330 | | | | 13,336 | | | | 14,761 | | | | 13,769 | | | | 14,479 | | | | 23,133 | | | | 28,248 | |
Amortization of restricted stock and RSU Plan | | | 17,069 | | | | 2,871 | | | | 3,623 | | | | 5,206 | | | | 8,351 | | | | 7,437 | | | | 7,046 | | | | 10,149 | | | | 9,816 | | | | 13,557 | | | | 19,965 | |
Non-cash stock option expense | | | 47 | | | | 104 | | | | 105 | | | | 127 | | | | 182 | | | | 165 | | | | 178 | | | | 199 | | | | 104 | | | | 309 | | | | 303 | |
Amortization of intangibles | | | 1,413 | | | | 1,437 | | | | 1,457 | | | | 1,386 | | | | 1,274 | | | | 1,374 | | | | 2,756 | | | | 2,551 | | | | 2,466 | | | | 2,660 | | | | 5,017 | |
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Operating expenses | | | 281,142 | | | | 279,145 | | | | 282,408 | | | | 333,128 | | | | 323,045 | | | | 269,616 | | | | 247,883 | | | | 269,197 | | | | 223,396 | | | | 656,173 | | | | 492,593 | |
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Operating (loss) income | | | 42,843 | | | | 50,997 | | | | 65,439 | | | | 33,344 | | | | 31,249 | | | | 62,573 | | | | 42,789 | | | | (14,794 | ) | | | (339 | ) | | | 64,593 | | | | (15,133 | ) |
Interest and other, net | | | 6,903 | | | | 6,507 | | | | 6,799 | | | | 7,383 | | | | 3,057 | | | | 5,283 | | | | 1,560 | | | | 1,203 | | | | 76 | | | | 10,440 | | | | 1,279 | |
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Income (loss) from cont. operations, pre-tax | | | 49,746 | | | | 57,504 | | | | 72,238 | | | | 40,727 | | | | 34,306 | | | | 67,856 | | | | 44,349 | | | | (13,591 | ) | | | (263 | ) | | | 75,033 | | | | (13,854 | ) |
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Income taxes | | | 17,587 | | | | 20,474 | | | | 25,310 | | | | 15,143 | | | | 12,153 | | | | 22,734 | | | | 14,880 | | | | (4,489 | ) | | | (83 | ) | | | 27,296 | | | | (4,572 | ) |
Losses in equity interests, net | | | (2,966 | ) | | | (3,074 | ) | | | (838 | ) | | | (1,822 | ) | | | (3,592 | ) | | | (2,086 | ) | | | (339 | ) | | | (1,239 | ) | | | (1,190 | ) | | | (5,414 | ) | | | (2,429 | ) |
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Income (loss) from continuing operations | | | 29,193 | | | | 33,956 | | | | 46,090 | | | | 23,762 | | | | 18,561 | | | | 43,036 | | | | 29,130 | | | | (10,341 | ) | | | (1,370 | ) | | | 42,323 | | | | (11,711 | ) |
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Income (loss) from disc. operations, net of tax(1) | | | (577 | ) | | | (655 | ) | | | (1,090 | ) | | | (1,171 | ) | | | 12,269 | | | | (258 | ) | | | (536 | ) | | | — | | | | — | | | | 11,098 | | | | — | |
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Net income (loss) | | $ | 28,616 | | | $ | 33,301 | | | $ | 45,000 | | | $ | 22,591 | | | $ | 30,830 | | | $ | 42,778 | | | $ | 28,594 | | | $ | (10,341 | ) | | $ | (1,370 | ) | | $ | 53,421 | | | $ | (11,711 | ) |
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Basic earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | | $ | 0.22 | | | $ | 0.26 | | | $ | 0.37 | | | $ | 0.19 | | | $ | 0.15 | | | $ | 0.36 | | | $ | 0.25 | | | $ | (0.09 | ) | | $ | (0.01 | ) | | $ | 0.35 | | | $ | (0.10 | ) |
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Net income (loss) | | $ | 0.22 | | | $ | 0.26 | | | $ | 0.36 | | | $ | 0.18 | | | $ | 0.26 | | | $ | 0.36 | | | $ | 0.24 | | | $ | (0.09 | ) | | $ | (0.01 | ) | | $ | 0.44 | | | $ | (0.10 | ) |
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Diluted earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | | $ | 0.22 | | | $ | 0.26 | | | $ | 0.36 | | | $ | 0.19 | | | $ | 0.15 | | | $ | 0.36 | | | $ | 0.24 | | | $ | (0.09 | ) | | $ | (0.01 | ) | | $ | 0.35 | | | $ | (0.10 | ) |
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Net income (loss) | | $ | 0.21 | | | $ | 0.25 | | | $ | 0.36 | | | $ | 0.18 | | | $ | 0.25 | | | $ | 0.35 | | | $ | 0.24 | | | $ | (0.09 | ) | | $ | (0.01 | ) | | $ | 0.44 | | | $ | (0.10 | ) |
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Weighted avg. shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic shares | | | 130,542 | | | | 129,499 | | | | 125,504 | | | | 122,711 | | | | 120,885 | | | | 120,057 | | | | 118,601 | | | | 118,855 | | | | 119,274 | | | | 121,798 | | | | 119,066 | |
Diluted shares | | | 133,121 | | | | 130,757 | | | | 126,704 | | | | 123,332 | | | | 121,541 | | | | 120,722 | | | | 119,380 | | | | 118,855 | | | | 119,274 | | | | 122,552 | | | | 119,066 | |
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Global employees (ones) | | | 5,442 | | | | 5,116 | | | | 5,112 | | | | 5,164 | | | | 5,396 | | | | 5,669 | | | | 6,961 | | | | 6,295 | | | | 5,999 | | | | 5,396 | | | | 5,999 | |
Annualized revenue per average employee | | $ | 241.6 | | | $ | 250.2 | | | $ | 272.1 | | | $ | 285.3 | | | $ | 268.4 | | | $ | 240.2 | | | $ | 184.1 | | | $ | 153.5 | | | $ | 145.1 | | | $ | 268.4 | | | $ | 145.1 | |
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(1) - | Loss from discontinued operations, net of tax in the second quarter of 2008 includes tax benefits of $29.4 million and long-lived asset write-offs of $13.1 million related to the wind-down of the Tickle business included in our Internet Advertising & Fees business segment. |
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Monster Worldwide, Inc.
Trailing Twelve Months Statistics — Statements of Operations
(unaudited, in thousands, except per share amounts)
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Summary P&L Information | | Q2 2007 | | | Q3 2007 | | | Q4 2007 | | | Q1 2008 | | | Q2 2008 | | | Q3 2008 | | | Q4 2008 | | | Q1 2009 | | | Q2 2009 | |
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Monster Careers | | $ | 1,084,101 | | | $ | 1,136,805 | | | $ | 1,195,422 | | | $ | 1,242,009 | | | $ | 1,271,636 | | | $ | 1,272,246 | | | $ | 1,213,300 | | | $ | 1,099,339 | | | $ | 968,783 | |
Internet Advertising & Fees | | | 127,303 | | | | 128,505 | | | | 128,382 | | | | 126,437 | | | | 127,119 | | | | 128,556 | | | | 130,327 | | | | 132,219 | | | | 131,538 | |
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Revenue | | | 1,211,404 | | | | 1,265,310 | | | | 1,323,804 | | | | 1,368,446 | | | | 1,398,755 | | | | 1,400,802 | | | | 1,343,627 | | | | 1,231,558 | | | | 1,100,321 | |
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Salary and related | | | 458,256 | | | | 479,579 | | | | 496,472 | | | | 514,585 | | | | 514,092 | | | | 519,031 | | | | 514,576 | | | | 491,498 | | | | 467,716 | |
Office and general | | | 200,719 | | | | 217,151 | | | | 224,935 | | | | 227,895 | | | | 237,793 | | | | 237,296 | | | | 224,679 | | | | 208,762 | | | | 189,925 | |
Marketing and promotion | | | 269,446 | | | | 278,594 | | | | 294,479 | | | | 333,824 | | | | 329,232 | | | | 315,332 | | | | 291,198 | | | | 253,035 | | | | 229,012 | |
Provision for legal settlements, net | | | — | | | | — | | | | — | | | | — | | | | 40,100 | | | | 40,100 | | | | 40,100 | | | | 40,100 | | | | — | |
Restructuring and other special charges | | | — | | | | 11,155 | | | | 16,597 | | | | 23,524 | | | | 26,256 | | | | 18,693 | | | | 16,407 | | | | 20,488 | | | | 22,853 | |
Depreciation expense | | | 31,595 | | | | 35,066 | | | | 38,207 | | | | 41,150 | | | | 44,130 | | | | 47,058 | | | | 51,230 | | | | 54,196 | | | | 56,345 | |
Amortization of restricted stock and RSU Plan | | | 26,612 | | | | 26,540 | | | | 27,739 | | | | 28,769 | | | | 20,051 | | | | 24,617 | | | | 28,040 | | | | 32,983 | | | | 34,448 | |
Non-cash stock option expense | | | 233 | | | | 337 | | | | 442 | | | | 383 | | | | 518 | | | | 579 | | | | 652 | | | | 724 | | | | 646 | |
Amortization of intangibles | | | 5,838 | | | | 5,812 | | | | 5,701 | | | | 5,693 | | | | 5,554 | | | | 5,491 | | | | 6,790 | | | | 7,955 | | | | 9,147 | |
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Operating expenses | | | 992,699 | | | | 1,054,234 | | | | 1,104,572 | | | | 1,175,823 | | | | 1,217,726 | | | | 1,208,197 | | | | 1,173,672 | | | | 1,109,741 | | | | 1,010,092 | |
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Operating income | | | 218,705 | | | | 211,076 | | | | 219,232 | | | | 192,623 | | | | 181,029 | | | | 192,605 | | | | 169,955 | | | | 121,817 | | | | 90,229 | |
Interest and other, net | | | 23,943 | | | | 25,327 | | | | 25,622 | | | | 27,592 | | | | 23,746 | | | | 22,522 | | | | 17,283 | | | | 11,103 | | | | 8,122 | |
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Income from continuing operations, pre-tax | | | 242,648 | | | | 236,403 | | | | 244,854 | | | | 220,215 | | | | 204,775 | | | | 215,127 | | | | 187,238 | | | | 132,920 | | | | 98,351 | |
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Income taxes | | | 85,246 | | | | 83,458 | | | | 86,461 | | | | 78,514 | | | | 73,080 | | | | 75,340 | | | | 64,910 | | | | 45,278 | | | | 33,042 | |
Losses in equity interests, net | | | (7,957 | ) | | | (8,977 | ) | | | (8,298 | ) | | | (8,700 | ) | | | (9,326 | ) | | | (8,338 | ) | | | (7,839 | ) | | | (7,256 | ) | | | (4,854 | ) |
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Income from continuing operations | | | 149,445 | | | | 143,968 | | | | 150,095 | | | | 133,001 | | | | 122,369 | | | | 131,449 | | | | 114,489 | | | | 80,386 | | | | 60,455 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from disc. operations, net of tax | | | (126,089 | ) | | | (3,494 | ) | | | (3,696 | ) | | | (3,493 | ) | | | 9,353 | | | | 9,750 | | | | 10,304 | | | | 11,475 | | | | (794 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 23,356 | | | $ | 140,474 | | | $ | 146,399 | | | $ | 129,508 | | | $ | 131,722 | | | $ | 141,199 | | | $ | 124,793 | | | $ | 91,861 | | | $ | 59,661 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | | $ | 1.16 | | | $ | 1.11 | | | $ | 1.17 | | | $ | 1.05 | | | $ | 0.98 | | | $ | 1.07 | | | $ | 0.95 | | | $ | 0.67 | | | $ | 0.51 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 0.18 | | | $ | 1.08 | | | $ | 1.14 | | | $ | 1.02 | | | $ | 1.06 | | | $ | 1.15 | | | $ | 1.04 | | | $ | 0.77 | | | $ | 0.50 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | | $ | 1.13 | | | $ | 1.09 | | | $ | 1.15 | | | $ | 1.04 | | | $ | 0.97 | | | $ | 1.07 | | | $ | 0.94 | | | $ | 0.67 | | | $ | 0.51 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 0.18 | | | $ | 1.07 | | | $ | 1.12 | | | $ | 1.01 | | | $ | 1.05 | | | $ | 1.15 | | | $ | 1.03 | | | $ | 0.76 | | | $ | 0.50 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted avg. shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic shares | | | 129,292 | | | | 129,546 | | | | 128,785 | | | | 127,064 | | | | 124,650 | | | | 122,289 | | | | 120,557 | | | | 119,600 | | | | 119,197 | |
Diluted shares | | | 131,905 | | | | 131,888 | | | | 130,755 | | | | 128,479 | | | | 125,584 | | | | 123,075 | | | | 121,167 | | | | 120,125 | | | | 119,558 | |
7
Monster Worldwide, Inc.
Statements of Cash Flows
(unaudited, in thousands, except per share amounts)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Trended Quarterly Data | | | Year to Date Data | |
| | Q2 2007 | | | Q3 2007 | | | Q4 2007 | | | Q1 2008 | | | Q2 2008 | | | Q3 2008 | | | Q4 2008 | | | Q1 2009 | | | Q2 2009 | | | 6M 2008 | | | 6M 2009 | |
Cash flows provided by (used for) operating activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 28,616 | | | $ | 33,301 | | | $ | 45,000 | | | $ | 22,591 | | | $ | 30,830 | | | $ | 42,778 | | | $ | 28,594 | | | $ | (10,341 | ) | | $ | (1,370 | ) | | $ | 53,421 | | | $ | (11,711 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(Income) loss from discontinued operations, net of tax | | | 577 | | | | 655 | | | | 1,090 | | | | 1,171 | | | | (12,269 | ) | | | 258 | | | | 536 | | | | — | | | | — | | | | (11,098 | ) | | | — | |
Depreciation and amortization of intangibles | | | 10,763 | | | | 11,845 | | | | 12,046 | | | | 12,189 | | | | 13,604 | | | | 14,710 | | | | 17,517 | | | | 16,320 | | | | 16,945 | | | | 25,793 | | | | 33,265 | |
Provision for legal settlements, net | | | — | | | | — | | | | — | | | | — | | | | 40,100 | | | | — | | | | — | | | | — | | | | — | | | | 40,100 | | | | — | |
Receipts and payments for legal settlements, net | | | — | | | | — | | | | — | | | | — | | | | — | | | | 5,700 | | | | (35,587 | ) | | | — | | | | — | | | | — | | | | — | |
Provision for doubtful accounts | | | 2,630 | | | | 3,340 | | | | 4,453 | | | | 3,564 | | | | 3,207 | | | | 4,403 | | | | 5,057 | | | | 4,072 | | | | 2,812 | | | | 6,771 | | | | 6,884 | |
Non-cash compensation | | | 17,116 | | | | 2,975 | | | | 3,728 | | | | 6,495 | | | | 8,533 | | | | 7,602 | | | | 7,223 | | | | 10,348 | | | | 9,920 | | | | 15,028 | | | | 20,268 | |
Deferred income taxes | | | (7,605 | ) | | | 2,808 | | | | (2,762 | ) | | | (7,319 | ) | | | (12,263 | ) | | | 12,440 | | | | 14,572 | | | | (2,488 | ) | | | (3,933 | ) | | | (19,582 | ) | | | (6,421 | ) |
Non-cash restructuring write-offs and (gain) loss on disposal of assets | | | (572 | ) | | | (2 | ) | | | 3 | | | | 1,649 | | | | 436 | | | | 924 | | | | 924 | | | | 3,690 | | | | 1,051 | | | | 2,085 | | | | 4,741 | |
Loss in equity interests | | | 2,966 | | | | 3,074 | | | | 838 | | | | 1,822 | | | | 3,592 | | | | 2,086 | | | | 339 | | | | 1,239 | | | | 1,189 | | | | 5,414 | | | | 2,428 | |
Changes in assets and liabilities, net of business combinations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | — | |
Accounts receivable | | | (4,804 | ) | | | 13,699 | | | | (101,843 | ) | | | 37,848 | | | | 44,812 | | | | 49,231 | | | | (19,371 | ) | | | 72,347 | | | | 47,892 | | | | 82,660 | | | | 120,239 | |
Prepaid and other | | | (4,202 | ) | | | (8,007 | ) | | | (12,766 | ) | | | 1,025 | | | | 18,073 | | | | 2,522 | | | | 1,548 | | | | 3,246 | | | | 13,615 | | | | 19,098 | | | | 16,861 | |
Deferred revenue | | | 2,360 | | | | (17,515 | ) | | | 89,650 | | | | (2,458 | ) | | | (51,465 | ) | | | (58,644 | ) | | | (5,732 | ) | | | (63,383 | ) | | | (61,153 | ) | | | (53,923 | ) | | | (124,536 | ) |
Accounts payable, accrued expenses and other liabilities | | | 7,163 | | | | 26,536 | | | | 27,091 | | | | (289 | ) | | | (13,308 | ) | | | 8,673 | | | | (27,790 | ) | | | (21,237 | ) | | | (40,656 | ) | | | (13,597 | ) | | | (61,893 | ) |
Net cash provided by (used for) operating activities of discontinued operations | | | (1,847 | ) | | | 126 | | | | (2,344 | ) | | | (560 | ) | | | (2,569 | ) | | | (962 | ) | | | (2,758 | ) | | | (77 | ) | | | 77 | | | | (3,129 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total adjustments | | | 24,545 | | | | 39,534 | | | | 19,184 | | | | 55,137 | | | | 40,483 | | | | 48,943 | | | | (43,522 | ) | | | 24,077 | | | | (12,241 | ) | | | 95,620 | | | | 11,836 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used for) operating activities | | | 53,161 | | | | 72,835 | | | | 64,184 | | | | 77,728 | | | | 71,313 | | | | 91,721 | | | | (14,928 | ) | | | 13,736 | | | | (13,611 | ) | | | 149,041 | | | | 125 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash flows provided by (used for) investing activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capital expenditures | | | (15,515 | ) | | | (10,596 | ) | | | (16,240 | ) | | | (20,559 | ) | | | (29,654 | ) | | | (21,011 | ) | | | (22,403 | ) | | | (14,922 | ) | | | (11,457 | ) | | | (50,213 | ) | | | (26,379 | ) |
Purchase of marketable securities | | | (317,555 | ) | | | (327,250 | ) | | | (415,025 | ) | | | (149,249 | ) | | | (7,633 | ) | | | (25,265 | ) | | | (1,785 | ) | | | (992 | ) | | | (6,484 | ) | | | (156,882 | ) | | | (7,476 | ) |
Sale and maturities of marketable securities | | | 277,903 | | | | 446,418 | | | | 478,068 | | | | 414,453 | | | | 21,852 | | | | 66,000 | | | | 36,981 | | | | 1,425 | | | | 1,892 | | | | 436,305 | | | | 3,317 | |
Payments for acquisitions and intangible assets, net of cash acquired | | | (142 | ) | | | (133 | ) | | | (610 | ) | | | (61,567 | ) | | | — | | | | (64,628 | ) | | | (166,641 | ) | | | — | | | | — | | | | (61,567 | ) | | | — | |
Dividends received from unconsolidated investee | | | — | | | | — | | | | — | | | | — | | | | 1,011 | | | | — | | | | — | | | | — | | | | 763 | | | | 1,011 | | | | 763 | |
Cash funded to equity investee | | | (1,600 | ) | | | (5,900 | ) | | | — | | | | (5,000 | ) | | | — | | | | — | | | | (1,402 | ) | | | (1,428 | ) | | | (1,886 | ) | | | (5,000 | ) | | | (3,314 | ) |
Net cash used for investing activities of discontinued operations | | | (87 | ) | | | (5 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used for) investing activities | | | (56,996 | ) | | | 102,534 | | | | 46,193 | | | | 178,078 | | | | (14,424 | ) | | | (44,904 | ) | | | (155,250 | ) | | | (15,917 | ) | | | (17,172 | ) | | | 163,654 | | | | (33,089 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash flows provided by (used for) financing activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from borrowings on credit facilities short-term | | | — | | | | — | | | | — | | | | — | | | | — | | | | 247,000 | | | | 4,971 | | | | 199,203 | | | | — | | | | — | | | | 199,203 | |
Payments on borrowings on credit facilities short-term | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (197,893 | ) | | | — | | | | (157,173 | ) | | | — | | | | (157,173 | ) |
Repurchase of common stock | | | (6,716 | ) | | | (154,692 | ) | | | (97,761 | ) | | | (79,469 | ) | | | (6,858 | ) | | | (41,806 | ) | | | (32 | ) | | | (1,907 | ) | | | (528 | ) | | | (86,327 | ) | | | (2,435 | ) |
Net borrowings (payments) under capital lease obligations and other debt | | | — | | | | (58 | ) | | | (42 | ) | | | (80 | ) | | | (67 | ) | | | (9 | ) | | | (15 | ) | | | (5 | ) | | | (1 | ) | | | (147 | ) | | | (6 | ) |
Payments on acquisition debt | | | (5,552 | ) | | | — | | | | (1,500 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Proceeds from the exercise of employee stock options | | | 10,006 | | | | 651 | | | | 838 | | | | 418 | | | | 628 | | | | 110 | | | | 305 | | | | 9 | | | | — | | | | 1,046 | | | | 9 | |
Excess tax benefits from (provisions for) stock-based compensation | | | 5,857 | | | | 1,611 | | | | (155 | ) | | | 61 | | | | 59 | | | | 861 | | | | 22 | | | | 4 | | | | — | | | | 120 | | | | 4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used for) financing activities | | | 3,595 | | | | (152,488 | ) | | | (98,620 | ) | | | (79,070 | ) | | | (6,238 | ) | | | 206,156 | | | | (192,642 | ) | | | 197,304 | | | | (157,702 | ) | | | (85,308 | ) | | | 39,602 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Effects of exchange rates on cash | | | 1,037 | | | | 3,795 | | | | 772 | | | | 10,256 | | | | (1,933 | ) | | | (13,303 | ) | | | (20,044 | ) | | | (6,327 | ) | | | 13,681 | | | | 8,323 | | | | 7,354 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | | | 797 | | | | 26,676 | | | | 12,529 | | | | 186,992 | | | | 48,718 | | | | 239,670 | | | | (382,864 | ) | | | 188,796 | | | | (174,804 | ) | | | 235,710 | | | | 13,992 | |
Cash and cash equivalents, beginning of period | | | 89,742 | | | | 90,539 | | | | 117,215 | | | | 129,744 | | | | 316,736 | | | | 365,454 | | | | 605,124 | | | | 222,260 | | | | 411,056 | | | | 129,744 | | | | 222,260 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents, end of period | | $ | 90,539 | | | $ | 117,215 | | | $ | 129,744 | | | $ | 316,736 | | | $ | 365,454 | | | $ | 605,124 | | | $ | 222,260 | | | $ | 411,056 | | | $ | 236,252 | | | $ | 365,454 | | | $ | 236,252 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non — GAAP Free cash flow (1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by operating activities | | $ | 53,161 | | | $ | 72,835 | | | $ | 64,184 | | | $ | 77,728 | | | $ | 71,313 | | | $ | 91,721 | | | $ | (14,928 | ) | | $ | 13,736 | | | $ | (13,611 | ) | | $ | 149,041 | | | $ | 125 | |
Less: Capital expenditures | | | (15,515 | ) | | | (10,596 | ) | | | (16,240 | ) | | | (20,559 | ) | | | (29,654 | ) | | | (21,011 | ) | | | (22,403 | ) | | | (14,922 | ) | | | (11,457 | ) | | | (50,213 | ) | | | (26,379 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Free cash flow | | $ | 37,646 | | | $ | 62,239 | | | $ | 47,944 | | | $ | 57,169 | | | $ | 41,659 | | | $ | 70,710 | | | $ | (37,331 | ) | | $ | (1,186 | ) | | $ | (25,068 | ) | | $ | 98,828 | | | $ | (26,254 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
(1) - See notes to financial supplement for further explanation of non-GAAP measures. |
8
Monster Worldwide, Inc.
Consolidated Condensed Balance Sheets
(unaudited, in thousands, except selected financial ratios)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Trended Quarterly Data | |
| | Q2 2007 | | | Q3 2007 | | | Q4 2007 | | | Q1 2008 | | | Q2 2008 | | | Q3 2008 | | | Q4 2008 | | | Q1 2009 | | | Q2 2009 | |
|
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 90,539 | | | $ | 117,215 | | | $ | 129,744 | | | $ | 316,736 | | | $ | 365,454 | | | $ | 605,124 | | | $ | 222,260 | | | $ | 411,056 | | | $ | 236,252 | |
Marketable securities, current | | | 630,914 | | | | 511,746 | | | | 448,703 | | | | 79,236 | | | | 68,579 | | | | 33,823 | | | | 1,425 | | | | 992 | | | | 14,533 | |
Net Accounts Receivable | | | 419,033 | | | | 401,994 | | | | 499,854 | | | | 458,447 | | | | 410,427 | | | | 358,214 | | | | 376,720 | | | | 294,449 | | | | 249,004 | |
Prepaid and other | | | 100,233 | | | | 101,950 | | | | 106,664 | | | | 97,929 | | | | 121,093 | | | | 111,754 | | | | 82,415 | | | | 82,710 | | | | 73,866 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total current assets | | | 1,240,719 | | | | 1,132,905 | | | | 1,184,965 | | | | 952,348 | | | | 965,553 | | | | 1,108,915 | | | | 682,820 | | | | 789,207 | | | | 573,655 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Marketable securities, non-current | | | — | | | | — | | | | — | | | | 102,716 | | | | 99,330 | | | | 93,728 | | | | 90,347 | | | | 89,196 | | | | 81,272 | |
Property and equipment, net | | | 117,613 | | | | 117,802 | | | | 123,397 | | | | 138,182 | | | | 149,048 | | | | 152,352 | | | | 161,282 | | | | 154,559 | | | | 153,942 | |
Goodwill | | | 595,850 | | | | 614,437 | | | | 615,334 | | | | 702,598 | | | | 690,161 | | | | 707,164 | | �� | | 894,546 | | | | 886,970 | | | | 897,561 | |
Intangibles, net | | | 37,012 | | | | 36,804 | | | | 35,351 | | | | 34,308 | | | | 32,696 | | | | 36,694 | | | | 52,335 | | | | 49,533 | | | | 47,420 | |
Investment in unconsolidated affiliates | | | 54,782 | | | | 51,708 | | | | 50,871 | | | | 49,049 | | | | 44,446 | | | | 42,360 | | | | 1,843 | | | | 1,315 | | | | 517 | |
Other assets | | | 48,360 | | | | 52,513 | | | | 53,162 | | | | 67,218 | | | | 70,475 | | | | 61,761 | | | | 33,417 | | | | 33,314 | | | | 35,100 | |
Non-current assets of discontinued operations | | | 16,233 | | | | 15,461 | | | | 14,730 | | | | 13,959 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,110,569 | | | $ | 2,021,630 | | | $ | 2,077,810 | | | $ | 2,060,378 | | | $ | 2,051,709 | | | $ | 2,202,974 | | | $ | 1,916,590 | | | $ | 2,004,094 | | | $ | 1,789,467 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable, accrued expenses and other | | $ | 278,553 | | | $ | 298,023 | | | $ | 304,146 | | | $ | 297,932 | | | $ | 321,077 | | | $ | 328,546 | | | $ | 254,407 | | | $ | 225,630 | | | $ | 192,266 | |
Deferred revenue | | | 452,196 | | | | 434,682 | | | | 524,331 | | | | 521,873 | | | | 470,408 | | | | 411,764 | | | | 414,312 | | | | 344,905 | | | | 289,818 | |
Borrowings on credit facility short-term | | | — | | | | — | | | | — | | | | — | | | | — | | | | 247,000 | | | | 54,971 | | | | 254,174 | | | | 97,000 | |
Current portion of long-term debt | | | 1,660 | | | | 1,684 | | | | 184 | | | | 158 | | | | 142 | | | | 26 | | | | 18 | | | | 27 | | | | 23 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total current liabilities | | | 732,409 | | | | 734,389 | | | | 828,661 | | | | 819,963 | | | | 791,627 | | | | 987,336 | | | | 723,708 | | | | 824,736 | | | | 579,107 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-current income taxes payable | | | 89,910 | | | | 94,418 | | | | 111,108 | | | | 116,376 | | | | 119,360 | | | | 115,318 | | | | 119,951 | | | | 123,385 | | | | 125,991 | |
Other liabilities | | | 25,785 | | | | 25,574 | | | | 17,264 | | | | 16,254 | | | | 17,449 | | | | 23,699 | | | | 25,658 | | | | 29,838 | | | | 30,971 | |
Non-current liabilities of discontinued operations | | | 4,696 | | | | 4,486 | | | | 4,276 | | | | 4,067 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 852,800 | | | | 858,867 | | | | 961,309 | | | | 956,660 | | | | 928,436 | | | | 1,126,353 | | | | 869,317 | | | | 977,959 | | | | 736,069 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock and class B common stock | | | 131 | | | | 131 | | | | 133 | | | | 133 | | | | 134 | | | | 134 | | | | 133 | | | | 134 | | | | 134 | |
Additional paid-in capital | | | 1,713,670 | | | | 1,562,646 | | | | 1,468,808 | | | | 1,395,991 | | | | 1,397,281 | | | | 1,363,655 | | | | 1,367,373 | | | | 1,374,049 | | | | 1,382,649 | |
Accumulated other comprehensive (loss) income | | | 93,096 | | | | 115,813 | | | | 118,387 | | | | 155,830 | | | | 143,264 | | | | 87,460 | | | | 25,801 | | | | 8,327 | | | | 28,360 | |
Retained deficit | | | (549,128 | ) | | | (515,827 | ) | | | (470,827 | ) | | | (448,236 | ) | | | (417,406 | ) | | | (374,628 | ) | | | (346,034 | ) | | | (356,375 | ) | | | (357,745 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total stockholders’ equity | | | 1,257,769 | | | | 1,162,763 | | | | 1,116,501 | | | | 1,103,718 | | | | 1,123,273 | | | | 1,076,621 | | | | 1,047,273 | | | | 1,026,135 | | | | 1,053,398 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 2,110,569 | | | $ | 2,021,630 | | | $ | 2,077,810 | | | $ | 2,060,378 | | | $ | 2,051,709 | | | $ | 2,202,974 | | | $ | 1,916,590 | | | $ | 2,004,094 | | | $ | 1,789,467 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selected Financial Ratios(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
- Annualized return on equity | | | 9.3 | % | | | 11.0 | % | | | 15.8 | % | | | 8.1 | % | | | 11.1 | % | | | 15.6 | % | | | 10.8 | % | | | -4.0 | % | | | -0.5 | % |
- Book value per share | | $ | 9.60 | | | $ | 9.19 | | | $ | 9.02 | | | $ | 9.13 | | | $ | 9.30 | | | $ | 9.08 | | | $ | 8.83 | | | $ | 8.61 | | | $ | 8.83 | |
- Cash and marketable securities per share | | $ | 5.51 | | | $ | 4.97 | | | $ | 4.67 | | | $ | 4.13 | | | $ | 4.42 | | | $ | 6.18 | | | $ | 2.65 | | | $ | 4.20 | | | $ | 2.78 | |
- Net cash and securities | | $ | 719,481 | | | $ | 627,016 | | | $ | 578,032 | | | $ | 498,353 | | | $ | 533,095 | | | $ | 485,632 | | | $ | 259,033 | | | $ | 247,038 | | | $ | 235,034 | |
| | |
(1) | - See notes to financial supplement for definitions and calculations of selected financial ratios. |
9
Monster Worldwide, Inc.
Segment Information and Margin Analysis — Non-GAAP
(unaudited, in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Trended Quarterly Data | | | Year to Date Data | |
| | Q2 2007 | | | Q3 2007 | | | Q4 2007 | | | Q1 2008 | | | Q2 2008 | | | Q3 2008 | | | Q4 2008 | | | Q1 2009 | | | Q2 2009 | | | 6M 2008 | | | 6M 2009 | |
Segment OIBDA(1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers — North America | | $ | 60,845 | | | $ | 57,589 | | | $ | 60,410 | | | $ | 47,602 | | | $ | 67,636 | | | $ | 52,516 | | | $ | 44,138 | | | $ | 12,272 | | | $ | 22,066 | | | $ | 115,238 | | | $ | 34,338 | |
Careers — International | | | 17,362 | | | | 12,896 | | | | 29,980 | | | | 16,662 | | | | 40,361 | | | | 39,060 | | | | 23,833 | | | | 10,749 | | | | 8,386 | | | | 57,023 | | | | 19,135 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers OIBDA (1) | | | 78,207 | | | | 70,485 | | | | 90,390 | | | | 64,264 | | | | 107,997 | | | | 91,576 | | | | 67,971 | | | | 23,021 | | | | 30,452 | | | | 172,261 | | | | 53,473 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Internet Advertising & Fees OIBDA(1) | | | 7,438 | | | | 5,316 | | | | 3,118 | | | | 792 | | | | 7,508 | | | | 7,425 | | | | 6,293 | | | | 6,364 | | | | 7,939 | | | | 8,300 | | | | 14,303 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Monster OIBDA(1) | | $ | 85,645 | | | $ | 75,801 | | | $ | 93,508 | | | $ | 65,056 | | | $ | 115,505 | | | $ | 99,001 | | | $ | 74,264 | | | $ | 29,385 | | | $ | 38,391 | | | $ | 180,561 | | | $ | 67,776 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate expenses before D&A(1) | | $ | (14,923 | ) | | $ | (9,917 | ) | | $ | (11,032 | ) | | $ | (12,104 | ) | | $ | (61,196 | ) | | $ | (13,192 | ) | | $ | (5,810 | ) | | $ | (13,843 | ) | | $ | (10,810 | ) | | $ | (73,300 | ) | | $ | (24,653 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proforma operating income(1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers — North America | | $ | 55,029 | | | $ | 59,430 | | | $ | 56,482 | | | $ | 42,955 | | | $ | 59,335 | | | $ | 43,771 | | | $ | 34,314 | | | $ | 3,100 | | | $ | 12,405 | | | $ | 102,290 | | | $ | 15,505 | |
Careers — International | | | 12,055 | | | | 13,589 | | | | 28,699 | | | | 12,945 | | | | 33,316 | | | | 32,467 | | | | 17,711 | | | | 7,413 | | | | 1,983 | | | | 46,261 | | | | 9,396 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers Proforma operating income(1) | | | 67,084 | | | | 73,019 | | | | 85,181 | | | | 55,900 | | | | 92,651 | | | | 76,238 | | | | 52,025 | | | | 10,513 | | | | 14,388 | | | | 148,551 | | | | 24,901 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Internet Advertising & Fees ProForma operating income (loss)(1) | | | 5,679 | | | | 5,404 | | | | 2,658 | | | | (609 | ) | | | 4,994 | | | | 4,977 | | | | 3,745 | | | | 4,003 | | | | 5,096 | | | | 4,385 | | | | 9,099 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Monster Proforma income(1) | | $ | 72,763 | | | $ | 78,423 | | | $ | 87,839 | | | $ | 55,291 | | | $ | 97,645 | | | $ | 81,215 | | | $ | 55,770 | | | $ | 14,516 | | | $ | 19,484 | | | $ | 152,936 | | | $ | 34,000 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate Proforma expenses(1) | | $ | (8,778 | ) | | $ | (8,046 | ) | | $ | (12,177 | ) | | $ | (11,586 | ) | | $ | (19,308 | ) | | $ | (11,175 | ) | | $ | (14,294 | ) | | $ | (14,288 | ) | | $ | (11,756 | ) | | $ | (30,894 | ) | | $ | (26,044 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Segment operating income (loss):(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers — North America | | $ | 54,579 | | | $ | 51,455 | | | $ | 52,950 | | | $ | 39,701 | | | $ | 58,409 | | | $ | 43,120 | | | $ | 34,025 | | | $ | 828 | | | $ | 10,919 | | | $ | 98,110 | | | $ | 11,747 | |
Careers — International | | | 12,055 | | | | 7,344 | | | | 24,753 | | | | 9,643 | | | | 31,916 | | | | 30,230 | | | | 12,938 | | | | (671 | ) | | | (2,019 | ) | | | 41,559 | | | | (2,690 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers operating income (loss) | | | 66,634 | | | | 58,799 | | | | 77,703 | | | | 49,344 | | | | 90,325 | | | | 73,350 | | | | 46,963 | | | | 157 | | | | 8,900 | | | | 139,669 | | | | 9,057 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Internet Advertising & Fees operating income (loss) | | | 5,679 | | | | 3,487 | | | | 1,383 | | | | (1,431 | ) | | | 4,656 | | | | 4,726 | | | | 3,715 | | | | 3,557 | | | | 4,926 | | | | 3,225 | | | | 8,483 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Monster operating income (loss) | | $ | 72,313 | | | $ | 62,286 | | | $ | 79,086 | | | $ | 47,913 | | | $ | 94,981 | | | $ | 78,076 | | | $ | 50,678 | | | $ | 3,714 | | | $ | 13,826 | | | $ | 142,894 | | | $ | 17,540 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate expenses | | $ | (29,470 | ) | | $ | (11,289 | ) | | $ | (13,647 | ) | | $ | (14,569 | ) | | $ | (63,732 | ) | | $ | (15,503 | ) | | $ | (7,889 | ) | | $ | (18,508 | ) | | $ | (14,165 | ) | | $ | (78,301 | ) | | $ | (32,673 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Margin Analysis: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers — North America OIBDA margin | | | 34.9 | % | | | 32.8 | % | | | 34.8 | % | | | 25.9 | % | | | 41.2 | % | | | 33.8 | % | | | 32.7 | % | | | 10.3 | % | | | 21.7 | % | | | 33.1 | % | | | 15.5 | % |
Careers — North America Proforma operating margin | | | 31.5 | % | | | 33.9 | % | | | 32.5 | % | | | 23.4 | % | | | 36.1 | % | | | 28.2 | % | | | 25.4 | % | | | 2.6 | % | | | 12.2 | % | | | 29.4 | % | | | 7.0 | % |
Careers — North America operating margin | | | 31.3 | % | | | 29.4 | % | | | 30.5 | % | | | 21.6 | % | | | 35.6 | % | | | 27.8 | % | | | 25.2 | % | | | 0.7 | % | | | 10.7 | % | | | 28.2 | % | | | 5.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers — International OIBDA margin | | | 14.9 | % | | | 10.6 | % | | | 20.9 | % | | | 10.9 | % | | | 25.8 | % | | | 27.4 | % | | | 19.4 | % | | | 10.4 | % | | | 9.5 | % | | | 18.4 | % | | | 10.0 | % |
Careers — International Proforma operating margin | | | 10.3 | % | | | 11.2 | % | | | 20.0 | % | | | 8.4 | % | | | 21.3 | % | | | 22.8 | % | | | 14.2 | % | | | 7.1 | % | | | 2.2 | % | | | 14.9 | % | | | 4.8 | % |
Careers — International operating margin | | | 10.3 | % | | | 6.0 | % | | | 17.3 | % | | | 6.3 | % | | | 20.4 | % | | | 21.2 | % | | | 10.5 | % | | | -0.6 | % | | | -2.3 | % | | | 13.4 | % | | | -1.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers OIBDA margin | | | 26.8 | % | | | 23.7 | % | | | 28.5 | % | | | 19.1 | % | | | 33.6 | % | | | 30.8 | % | | | 26.4 | % | | | 10.3 | % | | | 16.0 | % | | | 26.2 | % | | | 12.9 | % |
Careers Proforma operating margin | | | 23.0 | % | | | 24.6 | % | | | 26.9 | % | | | 16.6 | % | | | 28.9 | % | | | 25.6 | % | | | 20.0 | % | | | 4.7 | % | | | 7.5 | % | | | 22.6 | % | | | 6.0 | % |
Careers operating margin | | | 22.9 | % | | | 19.8 | % | | | 24.5 | % | | | 14.7 | % | | | 28.1 | % | | | 24.6 | % | | | 18.2 | % | | | 0.1 | % | | | 4.7 | % | | | 21.2 | % | | | 2.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Internet Advertising & Fees OIBDA margin | | | 22.8 | % | | | 16.0 | % | | | 10.1 | % | | | 2.7 | % | | | 22.5 | % | | | 21.5 | % | | | 19.2 | % | | | 20.2 | % | | | 24.3 | % | | | 13.2 | % | | | 22.3 | % |
Internet Advertising & Fees Proforma operating margin | | | 17.4 | % | | | 16.3 | % | | | 8.6 | % | | | -2.1 | % | | | 15.0 | % | | | 14.4 | % | | | 11.4 | % | | | 12.7 | % | | | 15.6 | % | | | 7.0 | % | | | 14.2 | % |
Internet Advertising & Fees operating margin | | | 17.4 | % | | | 10.5 | % | | | 4.5 | % | | | -4.8 | % | | | 14.0 | % | | | 13.7 | % | | | 11.3 | % | | | 11.3 | % | | | 15.1 | % | | | 5.1 | % | | | 13.2 | % |
| | |
(1) | - See notes to financial supplement for further explanation of non-GAAP measures. |
10
Monster Worldwide, Inc.
Statements of Operations
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Trended Quarterly Data | | | Year to Date Data | |
Summary P&L Information | | Q2 2007 | | | Q3 2007 | | | Q4 2007 | | | Q1 2008 | | | Q2 2008 | | | Q3 2008 | | | Q4 2008 | | | Q1 2009 | | | Q2 2009 | | | 6M 2008 | | | 6M 2009 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Monster Careers | | | 89.9 | % | | | 90.0 | % | | | 91.1 | % | | | 91.9 | % | | | 90.6 | % | | | 89.6 | % | | | 88.7 | % | | | 87.6 | % | | | 85.4 | % | | | 91.3 | % | | | 86.6 | % |
Internet Advertising & Fees | | | 10.1 | % | | | 10.0 | % | | | 8.9 | % | | | 8.1 | % | | | 9.4 | % | | | 10.4 | % | | | 11.3 | % | | | 12.4 | % | | | 14.6 | % | | | 8.7 | % | | | 13.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | | | 39.5 | % | | | 37.5 | % | | | 36.7 | % | | | 36.9 | % | | | 35.9 | % | | | 38.8 | % | | | 42.4 | % | | | 44.0 | % | | | 46.4 | % | | | 36.4 | % | | | 45.2 | % |
Office and general | | | 16.0 | % | | | 17.5 | % | | | 16.3 | % | | | 16.8 | % | | | 17.4 | % | | | 17.2 | % | | | 15.2 | % | | | 18.0 | % | | | 19.2 | % | | | 17.1 | % | | | 18.6 | % |
Marketing and promotion | | | 22.7 | % | | | 21.7 | % | | | 22.1 | % | | | 30.5 | % | | | 19.5 | % | | | 17.4 | % | | | 18.1 | % | | | 29.0 | % | | | 20.2 | % | | | 25.1 | % | | | 24.8 | % |
Provision for legal settlements, net | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 11.3 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 5.6 | % | | | 0.0 | % |
Restructuring and other special charges | | | 0.0 | % | | | 3.4 | % | | | 1.6 | % | | | 1.9 | % | | | 0.8 | % | | | 1.1 | % | | | 1.1 | % | | | 4.3 | % | | | 2.3 | % | | | 1.3 | % | | | 3.4 | % |
Depreciation expense | | | 2.9 | % | | | 3.2 | % | | | 3.0 | % | | | 2.9 | % | | | 3.5 | % | | | 4.0 | % | | | 5.1 | % | | | 5.4 | % | | | 6.5 | % | | | 3.2 | % | | | 5.9 | % |
Amortization of restricted stock and RSU Plan | | | 5.3 | % | | | 0.9 | % | | | 1.0 | % | | | 1.4 | % | | | 2.4 | % | | | 2.2 | % | | | 2.4 | % | | | 4.0 | % | | | 4.4 | % | | | 1.9 | % | | | 4.2 | % |
Non-cash stock option expense | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.1 | % | | | 0.0 | % | | | 0.1 | % | | | 0.1 | % | | | 0.0 | % | | | 0.0 | % | | | 0.1 | % |
Amortization of intangibles | | | 0.4 | % | | | 0.4 | % | | | 0.4 | % | | | 0.4 | % | | | 0.4 | % | | | 0.4 | % | | | 0.9 | % | | | 1.0 | % | | | 1.1 | % | | | 0.4 | % | | | 1.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating expenses | | | 86.8 | % | | | 84.6 | % | | | 81.2 | % | | | 90.9 | % | | | 91.2 | % | | | 81.2 | % | | | 85.3 | % | | | 105.8 | % | | | 100.2 | % | | | 91.0 | % | | | 103.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | | | 13.2 | % | | | 15.4 | % | | | 18.8 | % | | | 9.1 | % | | | 8.8 | % | | | 18.8 | % | | | 14.7 | % | | | -5.8 | % | | | -0.2 | % | | | 9.0 | % | | | -3.2 | % |
Interest and other, net | | | 2.1 | % | | | 2.0 | % | | | 2.0 | % | | | 2.0 | % | | | 0.9 | % | | | 1.6 | % | | | 0.5 | % | | | 0.5 | % | | | 0.0 | % | | | 1.4 | % | | | 0.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations, pre-tax | | | 15.4 | % | | | 17.4 | % | | | 20.8 | % | | | 11.1 | % | | | 9.7 | % | | | 20.4 | % | | | 15.3 | % | | | -5.3 | % | | | -0.1 | % | | | 10.4 | % | | | -2.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income taxes | | | 5.4 | % | | | 6.2 | % | | | 7.3 | % | | | 4.1 | % | | | 3.4 | % | | | 6.8 | % | | | 5.1 | % | | | -1.8 | % | | | 0.0 | % | | | 3.8 | % | | | -1.0 | % |
Losses in equity interests, net | | | -0.9 | % | | | -0.9 | % | | | -0.2 | % | | | -0.5 | % | | | -1.0 | % | | | -0.6 | % | | | -0.1 | % | | | -0.5 | % | | | -0.5 | % | | | -0.8 | % | | | -0.5 | % |
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Income from continuing operations | | | 9.0 | % | | | 10.3 | % | | | 13.3 | % | | | 6.5 | % | | | 5.2 | % | | | 13.0 | % | | | 10.0 | % | | | -4.1 | % | | | -0.6 | % | | | 5.9 | % | | | -2.5 | % |
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Income (loss) from disc. operations, net of tax | | | -0.2 | % | | | -0.2 | % | | | -0.3 | % | | | -0.3 | % | | | 3.5 | % | | | -0.1 | % | | | -0.2 | % | | | 0.0 | % | | | 0.0 | % | | | 1.5 | % | | | 0.0 | % |
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Net income (loss) | | | 8.8 | % | | | 10.1 | % | | | 12.9 | % | | | 6.2 | % | | | 8.7 | % | | | 12.9 | % | | | 9.8 | % | | | -4.1 | % | | | -0.6 | % | | | 7.4 | % | | | -2.5 | % |
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Monster Worldwide, Inc.
Statements of Operations — Reconciliation of Non-GAAP Measures
(unaudited, in thousands, except per share amounts)
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| | Trended Quarterly Data | | | Year to Date Data | |
Summary P&L Information | | Q2 2007 | | | Q3 2007 | | | Q4 2007 | | | Q1 2008 | | | Q2 2008 | | | Q3 2008 | | | Q4 2008 | | | Q1 2009 | | | Q2 2009 | | | 6M 2008 | | | 6M 2009 | |
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Proforma revenue (1) | | $ | 323,985 | | | $ | 330,142 | | | $ | 347,847 | | | $ | 366,472 | | | $ | 354,294 | | | $ | 332,189 | | | $ | 292,885 | | | $ | 255,397 | | | $ | 223,782 | | | $ | 720,766 | | | $ | 479,179 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deferred revenue related to acquisitions | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 2,213 | | | | 994 | | | | 725 | | | | — | | | | 1,719 | |
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Revenue | | $ | 323,985 | | | $ | 330,142 | | | $ | 347,847 | | | $ | 366,472 | | | $ | 354,294 | | | $ | 332,189 | | | $ | 290,672 | | | $ | 254,403 | | | $ | 223,057 | | | $ | 720,766 | | | $ | 477,460 | |
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OIBDA (1) | | $ | 70,722 | | | $ | 65,884 | | | $ | 82,476 | | | $ | 52,952 | | | $ | 54,309 | | | $ | 85,809 | | | $ | 68,454 | | | $ | 15,542 | | | $ | 27,581 | | | $ | 107,261 | | | $ | 43,123 | |
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Depreciation expense | | | 9,350 | | | | 10,408 | | | | 10,589 | | | | 10,803 | | | | 12,330 | | | | 13,336 | | | | 14,761 | | | | 13,769 | | | | 14,479 | | | | 23,133 | | | | 28,248 | |
Amortization of restricted stock and RSU Plan | | | 17,069 | | | | 2,871 | | | | 3,623 | | | | 5,206 | | | | 8,351 | | | | 7,437 | | | | 7,046 | | | | 10,149 | | | | 9,816 | | | | 13,557 | | | | 19,965 | |
Non-cash stock option expense | | | 47 | | | | 104 | | | | 105 | | | | 127 | | | | 182 | | | | 165 | | | | 178 | | | | 199 | | | | 104 | | | | 309 | | | | 303 | |
Restructuring non-cash compensation expense | | | — | | | | — | | | | — | | | | 1,162 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 1,162 | | | | — | |
Restructuring non-cash write-offs | | | — | | | | 67 | | | | 1,263 | | | | 924 | | | | 923 | | | | 924 | | | | 924 | | | | 3,668 | | | | 1,055 | | | | 1,847 | | | | 4,723 | |
Amortization of intangibles | | | 1,413 | | | | 1,437 | | | | 1,457 | | | | 1,386 | | | | 1,274 | | | | 1,374 | | | | 2,756 | | | | 2,551 | | | | 2,466 | | | | 2,660 | | | | 5,017 | |
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Operating income (loss) | | $ | 42,843 | | | $ | 50,997 | | | $ | 65,439 | | | $ | 33,344 | | | $ | 31,249 | | | $ | 62,573 | | | $ | 42,789 | | | $ | (14,794 | ) | | $ | (339 | ) | | $ | 64,593 | | | $ | (15,133 | ) |
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Proforma operating income (1) | | $ | 63,985 | | | $ | 70,377 | | | $ | 75,662 | | | $ | 43,705 | | | $ | 78,337 | | | $ | 70,040 | | | $ | 41,476 | | | $ | 228 | | | $ | 7,728 | | | $ | 122,042 | | | $ | 7,956 | |
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Executive Commitments | | | 15,811 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Provision for legal settlements, net | | | — | | | | — | | | | — | | | | — | | | | 40,100 | | | | — | | | | — | | | | — | | | | — | | | | 40,100 | | | | — | |
Stock option investigation | | | 5,331 | | | | 2,571 | | | | 1,392 | | | | 2,983 | | | | 4,256 | | | | 3,875 | | | | (6,682 | ) | | | 3,020 | | | | 2,245 | | | | 7,239 | | | | 5,265 | |
Security breach | | | — | | | | 5,654 | | | | 3,389 | | | | 451 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 451 | | | | - | |
Deferred revenue related to acquisitions | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 2,213 | | | | 994 | | | �� | 725 | | | | — | | | | 1,719 | |
Restructuring non-cash compensation expense | | | — | | | | — | | | | — | | | | 1,162 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 1,162 | | | | — | |
Restructuring program non-cash write-offs | | | — | | | | 67 | | | | 1,263 | | | | 924 | | | | 923 | | | | 924 | | | | 924 | | | | 3,668 | | | | 1,055 | | | | 1,847 | | | | 4,723 | |
Restructuring expenses, less non-cash items | | | — | | | | 11,088 | | | | 4,179 | | | | 4,841 | | | | 1,809 | | | | 2,668 | | | | 2,232 | | | | 7,340 | | | | 4,042 | | | | 6,650 | | | | 11,382 | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | | $ | 42,843 | | | $ | 50,997 | | | $ | 65,439 | | | $ | 33,344 | | | $ | 31,249 | | | $ | 62,573 | | | $ | 42,789 | | | $ | (14,794 | ) | | $ | (339 | ) | | $ | 64,593 | | | $ | (15,133 | ) |
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(1) | - See notes to financial supplement for further explanation of non-GAAP measures. |
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