Exhibit 99.3
FINANCIAL SUPPLEMENT
December 31, 2009
Monster Worldwide, Inc. (together with its consolidated subsidiaries, the “Company,” “Monster,” “we,” “our” or “us”) provides this supplement to assist investors in evaluating the Company’s financial and operating metrics. We suggest that the notes to this supplement be read in conjunction with the financial tables. The financial information included in this supplement contains certain non-GAAP financial measures. These measures should be considered in addition to results prepared in accordance with generally accepted accounting principles (“GAAP”), but are not a substitute for, or superior to, GAAP results. The non-GAAP measures included in this supplement have been reconciled to the most comparable GAAP measure. The Company intends to update the financial supplement on a quarterly basis.
Notes to Financial Supplement
Presentation
Provision for (Reversal of) 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.
In September 2009, the Company entered into a memorandum of understanding with the plaintiffs in the ERISA class action, and in November 2009, the Company entered into a settlement agreement with the plaintiffs in the ERISA class action. The settlement agreement provides for a payment of $4.3 million in full satisfaction of the claims asserted in the ERISA Class Action, a substantial majority of which will be paid by insurance and contribution from another defendant. The effectiveness of the settlement agreement is subject to Court approval and certification of the proposed class. On December 3, 2009, the Court granted preliminary approval of the proposed settlement, which included certification of the class members. Notice to the class has been sent and a final hearing on the merits of the proposed settlement is expected to occur in the near future.
Upon the conclusion of the settlement of the ERISA Class Action, all of the actions seeking recoveries from the Company as an outgrowth of the Company’s historical stock option grant practices will have been settled. As a result, in the quarterly period ended September 30, 2009, the Company reversed a previously recorded accrual of $6.9 million relating to these matters.
Auction Rate Securities
In November 2009, the Company entered into a settlement agreement related to its litigation against RBC Capital Markets Corporation (“RBC”) with respect to the auction rate securities (“ARS”) purchased from RBC. Among other terms, the settlement agreement provided for RBC to immediately repurchase ARS at a certain discount to their par value. Additionally, the Company shall receive certain additional monies from RBC if, within a certain time period of the date of the execution of the settlement agreement, any of the ARS still held by RBC are redeemed or refinanced by its issuer for sums higher than the amounts RBC paid the Company to repurchase the ARS. As part of the settlement agreement, the Company dismissed its lawsuit against RBC and released claims related to RBC’s sale of the ARS to the Company. As a result of the settlement with RBC, the Company no longer classifies losses on its remaining auction rate securities as temporary and, accordingly, all losses are reflected in the consolidated statement of operations.
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As such, the Company recorded a total charge of $6.1 million in the fourth quarter of 2009, which was reflected in interest and other, net in the consolidated statement of operations for the three and twelve months ended December 31, 2009, relating to the settlement with RBC as well as unrealized losses on the auction rate securities still owned by the Company.
Professional Fees
For the three and twelve months ended December 31, 2009, we recorded net benefits of $8.0 million and $10.1 million, respectively, primarily resulting from payments from former executives of the Company relating to our historical stock option granting practices. For the three and twelve months ended December 31, 2008, we recorded a net benefit of $6.7 million and a net charge of $4.4 million, respectively, of professional fees as a direct result of payments from former executives of the Company and payments for ongoing matters 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.
As a consequence of the Company’s entry into the settlement agreement with respect to the ERISA class action and settlement of the Company’s claims against a former member of senior management, we do not expect to continue to incur significant professional fees or legal fees paid on behalf of former employees and former members of senior management related to or in connection with matters relating to our historical stock option grant practices.
Restructuring Actions
On July 30, 2007, we announced a strategic restructuring plan intended to position the Company for sustainable long-term growth in the rapidly evolving global online recruitment and advertising industry.
The restructuring plan was originally designed to reduce the Company’s workforce by approximately 800 associates. Subsequent to the announcement of this plan, the Company made a strategic decision to in-source customer service and identified 100 associates who will be staying with the Company. Through June 30, 2009, when all the initiatives relating to the 2007 restructuring plan were complete, the Company had notified or terminated approximately 700 associates and approximately 140 associates had voluntarily left the Company. 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. Since the inception of the 2007 restructuring program through the completion of the program in the second quarter of 2009, the Company has incurred $49.1 million of restructuring expenses.
For the three months ended December 31, 2009 and 2008, we recorded $0 and $3.2 million of restructuring costs, respectively, primarily related to severance costs in 2008. For the years ended December 31, 2009 and 2008, we recorded $16.1 million and $16.4 million of restructuring costs, respectively, primarily related to severance, fixed asset write-offs and office consolidations.
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Severance and Facility Charges
For the three months ended December 31, 2009, the Company incurred charges of $2.9 million for severance and $1.7 million for costs relating to exited facilities. For the year ended December 31, 2009, the Company incurred charges of $8.8 million for severance and $3.5 million for costs relating to exited facilities. These charges primarily relate to certain organizational changes within the Company’s product and technology group designed to enable the Company to shift or add talent and skills to support the Company’s innovation strategy and other targeted headcount reductions. The organizational changes included establishing a new Technology Center of Excellence and Innovation located in Cambridge, Massachusetts, which was opened in the third quarter of 2009. As a result of these and other targeted organizational changes, the Company incurred severance costs related to the elimination of certain positions and charges related to the exiting of certain facilities on a global basis.
Income Tax Reversal
In the three and twelve months ended December 31, 2009, the Company recorded net reversals of $1.2 million and $32.9 million, respectively, of accrued tax and related interest and penalties. These reversals in 2009 primarily related to the expiration of statutes of limitations on uncertain tax positions.
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 twelve months ended December 31, 2009, the fair value adjustment to ChinaHR’s deferred revenue was $0 million and $2.3 million, respectively. For the three and twelve months ended December 31, 2008, the fair value adjustment to ChinaHR’s deferred revenue was $2.2 million.
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 three months ended March 31, 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
The Company has provided certain non-GAAP financial information as additional information for its operating results. These measures are not in accordance with, or an alternative for, GAAP and may be different from non-GAAP measures reported by other companies. The Company believes that its presentation of non-GAAP measures provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations.
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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: net 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; the strategic restructuring actions initiated in the third quarter of 2007; severance and facility charges primarily related to product and technology global reorganization; the fair value adjustment to deferred revenue in connection with the acquisition of ChinaHR; realized and unrealized losses on marketable securities; and a net non-cash benefit relating to the reversal of an income tax liability for uncertain tax positions. 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 important measures of liquidity and indicators of its ability to meet its ongoing obligations. The Company also uses net cash and securities and total available liquidity, among other measures, in evaluating its choices for capital deployment. Net cash and securities and total available liquidity are presented herein as non-GAAP measures and may not be comparable to similarly titled measures used by other companies.
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Selected financial ratios
We have included selected financial ratios in this financial supplement in order to assist investors to further evaluate our business. Our definitions and calculations are as follows:
Annualized return on equity
Annualized return on equity measures our effectiveness and ability to generate future profitability on the earnings that we retain. In addition, the ratio is a strong indicator of how well we utilize shareholders’ investments in our business. We calculate annualized return on equity as follows:
Annualized net income / Average stockholders’ equity
Book value per share
Book value per share is a market value indicator that we utilize when analyzing our stockholders’ equity. We calculate book value per share as follows:
Stockholders’ equity / Total shares outstanding
Cash and marketable securities per share
We calculate cash and marketable securities per share as follows:
(Cash and cash equivalents + Current marketable securities + Non-current marketable securities) / Total shares outstanding
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Monster Worldwide, Inc.
Statements of Operations
(unaudited, in thousands, except per share amounts)
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| | | Trended Quarterly Data | | | Full Year Data | |
| Summary P&L Information | | Q4 2007 | | | Q1 2008 | | | Q2 2008 | | | Q3 2008 | | | Q4 2008 | | | Q1 2009 | | | Q2 2009 | | | Q3 2009 | | | Q4 2009 | | | 12M 2008 | | | 12M 2009 | |
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| Monster Careers | | $ | 316,877 | | | $ | 336,810 | | | $ | 320,953 | | | $ | 297,606 | | | $ | 257,931 | | | $ | 222,849 | | | $ | 190,397 | | | $ | 179,941 | | | $ | 179,409 | | | $ | 1,213,300 | | | $ | 772,596 | |
| Internet Advertising & Fees | | | 30,970 | | | | 29,662 | | | | 33,341 | | | | 34,583 | | | | 32,741 | | | | 31,554 | | | | 32,660 | | | | 34,592 | | | | 33,740 | | | | 130,327 | | | | 132,546 | |
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Revenue | | | 347,847 | | | | 366,472 | | | | 354,294 | | | | 332,189 | | | | 290,672 | | | | 254,403 | | | | 223,057 | | | | 214,533 | | | | 213,149 | | | | 1,343,627 | | | | 905,142 | |
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| Salary and related | | | 127,666 | | | | 135,115 | | | | 127,346 | | | | 128,904 | | | | 123,211 | | | | 112,037 | | | | 103,564 | | | | 102,752 | | | | 105,475 | | | | 514,576 | | | | 423,828 | |
| Office and general | | | 56,708 | | | | 61,710 | | | | 61,754 | | | | 57,124 | | | | 44,091 | | | | 45,793 | | | | 42,917 | | | | 42,422 | | | | 31,623 | | | | 224,679 | | | | 162,755 | |
| Marketing and promotion | | | 76,818 | | | | 111,854 | | | | 68,976 | | | | 57,684 | | | | 52,684 | | | | 73,691 | | | | 44,953 | | | | 45,757 | | | | 45,260 | | | | 291,198 | | | | 209,661 | |
| Provision for (Reversal of) legal settlements, net | | | — | | | | — | | | | 40,100 | | | | — | | | | — | | | | — | | | | — | | | | (6,850 | ) | | | — | | | | 40,100 | | | | (6,850 | ) |
| Restructuring and other special charges | | | 5,442 | | | | 6,927 | | | | 2,732 | | | | 3,592 | | | | 3,156 | | | | 11,008 | | | | 5,097 | | | | — | | | | — | | | | 16,407 | | | | 16,105 | |
| Depreciation expense | | | 10,589 | | | | 10,803 | | | | 12,330 | | | | 13,336 | | | | 14,761 | | | | 13,769 | | | | 14,479 | | | | 15,230 | | | | 15,639 | | | | 51,230 | | | | 59,117 | |
| Amortization of restricted stock and RSU Plan | | | 3,623 | | | | 5,206 | | | | 8,351 | | | | 7,437 | | | | 7,046 | | | | 10,149 | | | | 9,816 | | | | 9,924 | | | | 9,417 | | | | 28,040 | | | | 39,306 | |
| Non-cash stock option expense | | | 105 | | | | 127 | | | | 182 | | | | 165 | | | | 178 | | | | 199 | | | | 104 | | | | 157 | | | | 155 | | | | 652 | | | | 615 | |
| Amortization of intangibles | | | 1,457 | | | | 1,386 | | | | 1,274 | | | | 1,374 | | | | 2,756 | | | | 2,551 | | | | 2,466 | | | | 2,189 | | | | 2,210 | | | | 6,790 | | | | 9,416 | |
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Operating expenses | | | 282,408 | | | | 333,128 | | | | 323,045 | | | | 269,616 | | | | 247,883 | | | | 269,197 | | | | 223,396 | | | | 211,581 | | | | 209,779 | | | | 1,173,672 | | | | 913,953 | |
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Operating income (loss) | | | 65,439 | | | | 33,344 | | | | 31,249 | | | | 62,573 | | | | 42,789 | | | | (14,794 | ) | | | (339 | ) | | | 2,952 | | | | 3,370 | | | | 169,955 | | | | (8,811 | ) |
| Interest and other, net | | | 6,799 | | | | 7,383 | | | | 3,057 | | | | 5,283 | | | | 1,560 | | | | 1,203 | | | | 76 | | | | (48 | ) | | | (7,059 | ) | | | 17,283 | | | | (5,828 | ) |
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Income (loss) from cont. operations, pre-tax | | | 72,238 | | | | 40,727 | | | | 34,306 | | | | 67,856 | | | | 44,349 | | | | (13,591 | ) | | | (263 | ) | | | 2,904 | | | | (3,689 | ) | | | 187,238 | | | | (14,639 | ) |
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| Provision for (benefit from) Income taxes | | | 25,310 | | | | 15,143 | | | | 12,153 | | | | 22,734 | | | | 14,880 | | | | (4,489 | ) | | | (83 | ) | | | (30,891 | ) | | | (2,420 | ) | | | 64,910 | | | | (37,883 | ) |
| Losses in equity interests, net | | | (838 | ) | | | (1,822 | ) | | | (3,592 | ) | | | (2,086 | ) | | | (339 | ) | | | (1,239 | ) | | | (1,190 | ) | | | (1,044 | ) | | | (844 | ) | | | (7,839 | ) | | | (4,317 | ) |
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Income (loss) from continuing operations | | | 46,090 | | | | 23,762 | | | | 18,561 | | | | 43,036 | | | | 29,130 | | | | (10,341 | ) | | | (1,370 | ) | | | 32,751 | | | | (2,113 | ) | | | 114,489 | | | | 18,927 | |
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(Loss) income from disc. operations, net of tax(1) | | | (1,090 | ) | | | (1,171 | ) | | | 12,269 | | | | (258 | ) | | | (536 | ) | | | — | | | | — | | | | — | | | | — | | | | 10,304 | | | | — | |
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Net income (loss) | | $ | 45,000 | | | $ | 22,591 | | | $ | 30,830 | | | $ | 42,778 | | | $ | 28,594 | | | $ | (10,341 | ) | | $ | (1,370 | ) | | $ | 32,751 | | | $ | (2,113 | ) | | $ | 124,793 | | | $ | 18,927 | |
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Basic earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income (loss) from continuing operations | | $ | 0.37 | | | $ | 0.19 | | | $ | 0.15 | | | $ | 0.36 | | | $ | 0.25 | | | $ | (0.09 | ) | | $ | (0.01 | ) | | $ | 0.27 | | | $ | (0.02 | ) | | $ | 0.95 | | | $ | 0.16 | |
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| Net income (loss) | | $ | 0.36 | | | $ | 0.18 | | | $ | 0.26 | | | $ | 0.36 | | | $ | 0.24 | | | $ | (0.09 | ) | | $ | (0.01 | ) | | $ | 0.27 | | | $ | (0.02 | ) | | $ | 1.04 | | | $ | 0.16 | |
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Diluted earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income (loss) from continuing operations | | $ | 0.36 | | | $ | 0.19 | | | $ | 0.15 | | | $ | 0.36 | | | $ | 0.24 | | | $ | (0.09 | ) | | $ | (0.01 | ) | | $ | 0.27 | | | $ | (0.02 | ) | | $ | 0.94 | | | $ | 0.16 | |
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| Net income (loss) | | $ | 0.36 | | | $ | 0.18 | | | $ | 0.25 | | | $ | 0.35 | | | $ | 0.24 | | | $ | (0.09 | ) | | $ | (0.01 | ) | | $ | 0.27 | | | $ | (0.02 | ) | | $ | 1.03 | | | $ | 0.16 | |
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Weighted avg. shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic shares | | | 125,504 | | | | 122,711 | | | | 120,885 | | | | 120,057 | | | | 118,601 | | | | 118,855 | | | | 119,274 | | | | 119,473 | | | | 119,575 | | | | 120,557 | | | | 119,359 | |
| Diluted shares | | | 126,704 | | | | 123,332 | | | | 121,541 | | | | 120,722 | | | | 119,380 | | | | 118,855 | | | | 119,274 | | | | 121,676 | | | | 119,575 | | | | 121,167 | | | | 121,170 | |
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| Global employees (ones) | | | 5,112 | | | | 5,164 | | | | 5,396 | | | | 5,669 | | | | 6,961 | | | | 6,295 | | | | 5,999 | | | | 5,779 | | | | 5,687 | | | | 6,961 | | | | 5,687 | |
| Annualized revenue per average employee | | $ | 272.1 | | | $ | 285.3 | | | $ | 268.4 | | | $ | 240.2 | | | $ | 184.1 | | | $ | 153.5 | | | $ | 145.1 | | | $ | 145.7 | | | $ | 148.7 | | | $ | 231.8 | | | $ | 152.4 | |
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| (1) — | | Gain 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. |
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 | | Q4 2007 | | | Q1 2008 | | | Q2 2008 | | | Q3 2008 | | | Q4 2008 | | | Q1 2009 | | | Q2 2009 | | | Q3 2009 | | | Q4 2009 | |
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| Monster Careers | | $ | 1,195,422 | | | $ | 1,242,009 | | | $ | 1,271,636 | | | $ | 1,272,246 | | | $ | 1,213,300 | | | $ | 1,099,339 | | | $ | 968,783 | | | $ | 851,118 | | | $ | 772,596 | |
| Internet Advertising & Fees | | | 128,382 | | | | 126,437 | | | | 127,119 | | | | 128,556 | | | | 130,327 | | | | 132,219 | | | | 131,538 | | | | 131,547 | | | | 132,546 | |
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Revenue | | | 1,323,804 | | | | 1,368,446 | | | | 1,398,755 | | | | 1,400,802 | | | | 1,343,627 | | | | 1,231,558 | | | | 1,100,321 | | | | 982,665 | | | | 905,142 | |
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| Salary and related | | | 496,472 | | | | 514,585 | | | | 514,092 | | | | 519,031 | | | | 514,576 | | | | 491,498 | | | | 467,716 | | | | 441,564 | | | | 423,828 | |
| Office and general | | | 224,935 | | | | 227,895 | | | | 237,793 | | | | 237,296 | | | | 224,679 | | | | 208,762 | | | | 189,925 | | | | 175,223 | | | | 162,755 | |
| Marketing and promotion | | | 294,479 | | | | 333,824 | | | | 329,232 | | | | 315,332 | | | | 291,198 | | | | 253,035 | | | | 229,012 | | | | 217,085 | | | | 209,661 | |
| Provision for (Reversal of) legal settlements, net | | | — | | | | — | | | | 40,100 | | | | 40,100 | | | | 40,100 | | | | 40,100 | | | | — | | | | (6,850 | ) | | | (6,850 | ) |
| Restructuring and other special charges | | | 16,597 | | | | 23,524 | | | | 26,256 | | | | 18,693 | | | | 16,407 | | | | 20,488 | | | | 22,853 | | | | 19,261 | | | | 16,105 | |
| Depreciation expense | | | 38,207 | | | | 41,150 | | | | 44,130 | | | | 47,058 | | | | 51,230 | | | | 54,196 | | | | 56,345 | | | | 58,239 | | | | 59,117 | |
| Amortization of restricted stock and RSU Plan | | | 27,739 | | | | 28,769 | | | | 20,051 | | | | 24,617 | | | | 28,040 | | | | 32,983 | | | | 34,448 | | | | 36,935 | | | | 39,306 | |
| Non-cash stock option expense | | | 442 | | | | 383 | | | | 518 | | | | 579 | | | | 652 | | | | 724 | | | | 646 | | | | 638 | | | | 615 | |
| Amortization of intangibles | | | 5,701 | | | | 5,693 | | | | 5,554 | | | | 5,491 | | | | 6,790 | | | | 7,955 | | | | 9,147 | | | | 9,962 | | | | 9,416 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating expenses | | | 1,104,572 | | | | 1,175,823 | | | | 1,217,726 | | | | 1,208,197 | | | | 1,173,672 | | | | 1,109,741 | | | | 1,010,092 | | | | 952,057 | | | | 913,953 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | | | 219,232 | | | | 192,623 | | | | 181,029 | | | | 192,605 | | | | 169,955 | | | | 121,817 | | | | 90,229 | | | | 30,608 | | | | (8,811 | ) |
| Interest and other, net | | | 25,622 | | | | 27,592 | | | | 23,746 | | | | 22,522 | | | | 17,283 | | | | 11,103 | | | | 8,122 | | | | 2,791 | | | | (5,828 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations, pre-tax | | | 244,854 | | | | 220,215 | | | | 204,775 | | | | 215,127 | | | | 187,238 | | | | 132,920 | | | | 98,351 | | | | 33,399 | | | | (14,639 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Provision for (benefit from) Income taxes | | | 86,461 | | | | 78,514 | | | | 73,080 | | | | 75,340 | | | | 64,910 | | | | 45,278 | | | | 33,042 | | | | (20,583 | ) | | | (37,883 | ) |
| Losses in equity interests, net | | | (8,298 | ) | | | (8,700 | ) | | | (9,326 | ) | | | (8,338 | ) | | | (7,839 | ) | | | (7,256 | ) | | | (4,854 | ) | | | (3,812 | ) | | | (4,317 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | | 150,095 | | | | 133,001 | | | | 122,369 | | | | 131,449 | | | | 114,489 | | | | 80,386 | | | | 60,455 | | | | 50,170 | | | | 18,927 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income (loss) from disc. operations, net of tax | | | (3,696 | ) | | | (3,493 | ) | | | 9,353 | | | | 9,750 | | | | 10,304 | | | | 11,475 | | | | (794 | ) | | | (536 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 146,399 | | | $ | 129,508 | | | $ | 131,722 | | | $ | 141,199 | | | $ | 124,793 | | | $ | 91,861 | | | $ | 59,661 | | | $ | 49,634 | | | $ | 18,927 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income from continuing operations | | $ | 1.17 | | | $ | 1.05 | | | $ | 0.98 | | | $ | 1.07 | | | $ | 0.95 | | | $ | 0.67 | | | $ | 0.51 | | | $ | 0.42 | | | $ | 0.16 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 1.14 | | | $ | 1.02 | | | $ | 1.06 | | | $ | 1.15 | | | $ | 1.04 | | | $ | 0.77 | | | $ | 0.50 | | | $ | 0.42 | | | $ | 0.16 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income from continuing operations | | $ | 1.15 | | | $ | 1.04 | | | $ | 0.97 | | | $ | 1.07 | | | $ | 0.94 | | | $ | 0.67 | | | $ | 0.51 | | | $ | 0.42 | | | $ | 0.16 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 1.12 | | | $ | 1.01 | | | $ | 1.05 | | | $ | 1.15 | | | $ | 1.03 | | | $ | 0.76 | | | $ | 0.50 | | | $ | 0.41 | | | $ | 0.16 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted avg. shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic shares | | | 128,785 | | | | 127,064 | | | | 124,650 | | | | 122,289 | | | | 120,557 | | | | 119,600 | | | | 119,197 | | | | 119,051 | | | | 119,294 | |
| Diluted shares | | | 130,755 | | | | 128,479 | | | | 125,584 | | | | 123,075 | | | | 121,167 | | | | 120,125 | | | | 119,558 | | | | 119,796 | | | | 119,845 | |
Monster Worldwide, Inc.
Statements of Cash Flows
(unaudited, in thousands, except per share amounts)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Trended Quarterly Data | | | Full Year Data | |
| | | Q4 2007 | | | Q1 2008 | | | Q2 2008 | | | Q3 2008 | | | Q4 2008 | | | Q1 2009 | | | Q2 2009 | | | Q3 2009 | | | Q4 2009 | | | 12M 2008 | | | 12M 2009 | |
Cash flows provided by (used for) operating activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 45,000 | | | $ | 22,591 | | | $ | 30,830 | | | $ | 42,778 | | | $ | 28,594 | | | $ | (10,341 | ) | | $ | (1,370 | ) | | $ | 32,751 | | | $ | (2,113 | ) | | $ | 124,793 | | | $ | 18,927 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Adjustments to reconcile net income (loss) to cash provided by operating activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loss (income) from discontinued operations, net of tax | | | 1,090 | | | | 1,171 | | | | (12,269 | ) | | | 258 | | | | 536 | | | | — | | | | — | | | | — | | | | — | | | | (10,304 | ) | | | — | |
| Depreciation and amortization | | | 12,046 | | | | 12,189 | | | | 13,604 | | | | 14,710 | | | | 17,517 | | | | 16,320 | | | | 16,945 | | | | 17,419 | | | | 17,849 | | | | 58,020 | | | | 68,533 | |
| Provision for (Reversal of) legal settlements, net | | | — | | | | — | | | | 40,100 | | | | — | | | | — | | | | — | | | | — | | | | (6,850 | ) | | | — | | | | 40,100 | | | | (6,850 | ) |
| Receipts and (payments) for legal settlements, net | | | — | | | | — | | | | — | | | | 5,700 | | | | (35,587 | ) | | | — | | | | — | | | | — | | | | — | | | | (29,887 | ) | | | — | |
| Provision for doubtful accounts | | | 4,453 | | | | 3,564 | | | | 3,207 | | | | 4,403 | | | | 5,057 | | | | 4,072 | | | | 2,812 | | | | 1,682 | | | | 1,588 | | | | 16,231 | | | | 10,154 | |
| Non-cash compensation | | | 3,728 | | | | 6,495 | | | | 8,533 | | | | 7,602 | | | | 7,223 | | | | 10,348 | | | | 9,920 | | | | 10,081 | | | | 9,572 | | | | 29,853 | | | | 39,921 | |
| Deferred income taxes | | | (2,762 | ) | | | (7,319 | ) | | | (12,263 | ) | | | 12,440 | | | | 14,572 | | | | (2,488 | ) | | | (3,933 | ) | | | 12,160 | | | | (4,550 | ) | | | 7,430 | | | | 1,189 | |
| Non-cash restructuring write-offs, accelerated amortization, and other | | | 3 | | | | 1,649 | | | | 436 | | | | 924 | | | | 924 | | | | 3,690 | | | | 1,051 | | | | 3 | | | | 4,216 | | | | 3,933 | | | | 8,960 | |
| Loss in equity interests | | | 838 | | | | 1,822 | | | | 3,592 | | | | 2,086 | | | | 339 | | | | 1,239 | | | | 1,190 | | | | 1,044 | | | | 844 | | | | 7,839 | | | | 4,317 | |
| Changes in assets and liabilities, net of acquisitions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Accounts receivable | | | (101,843 | ) | | | 37,848 | | | | 44,812 | | | | 49,231 | | | | (19,371 | ) | | | 72,347 | | | | 47,892 | | | | 7,284 | | | | (47,061 | ) | | | 112,520 | | | | 80,462 | |
| Prepaid and other | | | (12,766 | ) | | | 1,025 | | | | 18,073 | | | | 2,522 | | | | 1,548 | | | | 3,246 | | | | 13,615 | | | | (16,005 | ) | | | (3,525 | ) | | | 23,168 | | | | (2,669 | ) |
| Deferred revenue | | | 89,650 | | | | (2,458 | ) | | | (51,465 | ) | | | (58,644 | ) | | | (5,732 | ) | | | (63,383 | ) | | | (61,153 | ) | | | (28,152 | ) | | | 41,054 | | | | (118,299 | ) | | | (111,634 | ) |
| Accounts payable, accrued expenses and other liabilities | | | 27,091 | | | | (289 | ) | | | (13,308 | ) | | | 8,673 | | | | (27,790 | ) | | | (21,237 | ) | | | (40,657 | ) | | | (19,574 | ) | | | 14,883 | | | | (32,714 | ) | | | (66,585 | ) |
| Net cash (used for) provided by operating activities of discontinued operations | | | (2,344 | ) | | | (560 | ) | | | (2,569 | ) | | | (962 | ) | | | (2,758 | ) | | | (77 | ) | | | 77 | | | | — | | | | — | | | | (6,849 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total adjustments | | | 19,184 | | | | 55,137 | | | | 40,483 | | | | 48,943 | | | | (43,522 | ) | | | 24,077 | | | | (12,241 | ) | | | (20,908 | ) | | | 34,870 | | | | 101,041 | | | | 25,798 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used for) operating activities | | | 64,184 | | | | 77,728 | | | | 71,313 | | | | 91,721 | | | | (14,928 | ) | | | 13,736 | | | | (13,611 | ) | | | 11,843 | | | | 32,757 | | | | 225,834 | | | | 44,725 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash flows provided by (used for) investing activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital expenditures | | | (16,240 | ) | | | (20,559 | ) | | | (29,654 | ) | | | (21,011 | ) | | | (22,403 | ) | | | (14,922 | ) | | | (11,457 | ) | | | (12,285 | ) | | | (10,013 | ) | | | (93,627 | ) | | | (48,677 | ) |
| Purchase of marketable securities | | | (415,025 | ) | | | (149,249 | ) | | | (7,633 | ) | | | (25,265 | ) | | | (1,785 | ) | | | (992 | ) | | | (6,484 | ) | | | — | | | | (1,109 | ) | | | (183,932 | ) | | | (8,585 | ) |
| Sale and maturities of marketable securities | | | 478,068 | | | | 414,453 | | | | 21,852 | | | | 66,000 | | | | 36,981 | | | | 1,425 | | | | 1,892 | | | | — | | | | 67,660 | | | | 539,286 | | | | 70,977 | |
| Payments for acquisitions and intangible assets, net of cash acquired | | | (610 | ) | | | (61,567 | ) | | | — | | | | (64,628 | ) | | | (166,641 | ) | | | — | | | | — | | | | (300 | ) | | | — | | | | (292,836 | ) | | | (300 | ) |
| Dividends received from unconsolidated investee | | | — | | | | — | | | | 1,011 | | | | — | | | | — | | | | — | | | | 763 | | | | — | | | | — | | | | 1,011 | | | | 763 | |
| Cash funded to equity investee | | | — | | | | (5,000 | ) | | | — | | | | — | | | | (1,402 | ) | | | (1,428 | ) | | | (1,886 | ) | | | (1,639 | ) | | | (1,346 | ) | | | (6,402 | ) | | | (6,299 | ) |
| Net cash used for investing activities of discontinued operations | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used for) investing activities | | | 46,193 | | | | 178,078 | | | | (14,424 | ) | | | (44,904 | ) | | | (155,250 | ) | | | (15,917 | ) | | | (17,172 | ) | | | (14,224 | ) | | | 55,192 | | | | (36,500 | ) | | | 7,879 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash flows (used for) provided by financing activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from borrowings on credit facilities short-term | | | — | | | | — | | | | — | | | | 247,000 | | | | 4,971 | | | | 199,203 | | | | — | | | | — | | | | — | | | | 251,971 | | | | 199,203 | |
| Payments on borrowings on credit facilities short-term | | | — | | | | — | | | | — | | | | — | | | | (197,893 | ) | | | — | | | | (157,173 | ) | | | (99,023 | ) | | | — | | | | (197,893 | ) | | | (256,196 | ) |
| Repurchase of common stock | | | (97,761 | ) | | | (79,469 | ) | | | (6,858 | ) | | | (41,806 | ) | | | (32 | ) | | | (1,907 | ) | | | (528 | ) | | | (1,869 | ) | | | (267 | ) | | | (128,165 | ) | | | (4,571 | ) |
| Net borrowings (payments) under capital lease obligations and other debt | | | (42 | ) | | | (80 | ) | | | (67 | ) | | | (9 | ) | | | (15 | ) | | | (5 | ) | | | (1 | ) | | | 50,006 | | | | — | | | | (171 | ) | | | 50,000 | |
| Payments on acquisition debt | | | (1,500 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Cash received from the exercise of employee stock options | | | 838 | | | | 418 | | | | 628 | | | | 110 | | | | 305 | | | | 9 | | | | — | | | | 46 | | | | 12 | | | | 1,461 | | | | 67 | |
| Excess tax benefits from (provisions for) stock-based compensation | | | (155 | ) | | | 61 | | | | 59 | | | | 861 | | | | 22 | | | | 4 | | | | — | | | | 8 | | | | 67 | | | | 1,003 | | | | 79 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash (used for) provided by financing activities | | | (98,620 | ) | | | (79,070 | ) | | | (6,238 | ) | | | 206,156 | | | | (192,642 | ) | | | 197,304 | | | | (157,702 | ) | | | (50,832 | ) | | | (188 | ) | | | (71,794 | ) | | | (11,418 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Effects of exchange rates on cash | | | 772 | | | | 10,256 | | | | (1,933 | ) | | | (13,303 | ) | | | (20,044 | ) | | | (6,327 | ) | | | 13,681 | | | | 4,438 | | | | 209 | | | | (25,024 | ) | | | 12,001 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | | | 12,529 | | | | 186,992 | | | | 48,718 | | | | 239,670 | | | | (382,864 | ) | | | 188,796 | | | | (174,804 | ) | | | (48,775 | ) | | | 87,970 | | | | 92,516 | | | | 53,187 | |
Cash and cash equivalents, beginning of period | | | 117,215 | | | | 129,744 | | | | 316,736 | | | | 365,454 | | | | 605,124 | | | | 222,260 | | | | 411,056 | | | | 236,252 | | | | 187,477 | | | | 129,744 | | | | 222,260 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents, end of period | | $ | 129,744 | | | $ | 316,736 | | | $ | 365,454 | | | $ | 605,124 | | | $ | 222,260 | | | $ | 411,056 | | | $ | 236,252 | | | $ | 187,477 | | | $ | 275,447 | | | $ | 222,260 | | | $ | 275,447 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-GAAP Free cash flow (1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net cash provided by (used for) operating activities | | $ | 64,184 | | | $ | 77,728 | | | $ | 71,313 | | | $ | 91,721 | | | $ | (14,928 | ) | | $ | 13,736 | | | $ | (13,611 | ) | | $ | 11,843 | | | $ | 32,757 | | | $ | 225,834 | | | $ | 44,725 | |
| Less: Capital expenditures | | | (16,240 | ) | | | (20,559 | ) | | | (29,654 | ) | | | (21,011 | ) | | | (22,403 | ) | | | (14,922 | ) | | | (11,457 | ) | | | (12,285 | ) | | | (10,013 | ) | | | (93,627 | ) | | | (48,677 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Free cash flow | | $ | 47,944 | | | $ | 57,169 | | | $ | 41,659 | | | $ | 70,710 | | | $ | (37,331 | ) | | $ | (1,186 | ) | | $ | (25,068 | ) | | $ | (442 | ) | | $ | 22,744 | | | $ | 132,207 | | | $ | (3,952 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
| (1) — | | See notes to financial supplement for further explanation of non-GAAP measures. |
Monster Worldwide, Inc.
Consolidated Condensed Balance Sheets
(unaudited, in thousands, except selected financial ratios)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Trended Quarterly Data | |
| | | Q4 2007 | | | Q1 2008 | | | Q2 2008 | | | Q3 2008 | | | Q4 2008 | | | Q1 2009 | | | Q2 2009 | | | Q3 2009 | | | Q4 2009 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash and cash equivalents | | $ | 129,744 | | | $ | 316,736 | | | $ | 365,454 | | | $ | 605,124 | | | $ | 222,260 | | | $ | 411,056 | | | $ | 236,252 | | | $ | 187,477 | | | $ | 275,447 | |
| Marketable securities, current | | | 448,703 | | | | 79,236 | | | | 68,579 | | | | 33,823 | | | | 1,425 | | | | 992 | | | | 14,533 | | | | 20,482 | | | | 9,259 | |
| Accounts Receivable, net | | | 499,854 | | | | 458,447 | | | | 410,427 | | | | 358,214 | | | | 376,720 | | | | 294,449 | | | | 249,004 | | | | 243,033 | | | | 287,698 | |
| Prepaid and other | | | 106,664 | | | | 97,929 | | | | 121,093 | | | | 111,754 | | | | 82,416 | | | | 82,710 | | | | 73,866 | | | | 87,058 | | | | 73,089 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total current assets | | | 1,184,965 | | | | 952,348 | | | | 965,553 | | | | 1,108,915 | | | | 682,821 | | | | 789,207 | | | | 573,655 | | | | 538,050 | | | | 645,493 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Marketable securities, non-current | | | — | | | | 102,716 | | | | 99,330 | | | | 93,728 | | | | 90,347 | | | | 89,196 | | | | 81,272 | | | | 75,953 | | | | 15,410 | |
| Property and equipment, net | | | 123,397 | | | | 138,182 | | | | 149,048 | | | | 152,352 | | | | 161,282 | | | | 154,559 | | | | 153,942 | | | | 150,963 | | | | 143,727 | |
| Goodwill | | | 615,334 | | | | 702,598 | | | | 690,161 | | | | 707,164 | | | | 894,546 | | | | 886,970 | | | | 897,561 | | | | 930,231 | | | | 925,758 | |
| Intangibles, net | | | 35,351 | | | | 34,308 | | | | 32,696 | | | | 36,694 | | | | 52,335 | | | | 49,533 | | | | 47,420 | | | | 45,893 | | | | 43,863 | |
| Investment in unconsolidated affiliates | | | 50,871 | | | | 49,049 | | | | 44,446 | | | | 42,360 | | | | 1,843 | | | | 1,315 | | | | 517 | | | | 525 | | | | 546 | |
| Other assets | | | 53,162 | | | | 67,218 | | | | 70,475 | | | | 61,761 | | | | 33,416 | | | | 33,314 | | | | 35,100 | | | | 32,617 | | | | 52,393 | |
| Non-current assets of discontinued operations | | | 14,730 | | | | 13,959 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,077,810 | | | $ | 2,060,378 | | | $ | 2,051,709 | | | $ | 2,202,974 | | | $ | 1,916,590 | | | $ | 2,004,094 | | | $ | 1,789,467 | | | $ | 1,774,232 | | | $ | 1,827,190 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Accounts payable, accrued expenses and other | | $ | 304,146 | | | $ | 297,932 | | | $ | 321,077 | | | $ | 328,546 | | | $ | 254,407 | | | $ | 225,630 | | | $ | 192,266 | | | $ | 204,402 | | | $ | 196,248 | |
| Deferred revenue | | | 524,331 | | | | 521,873 | | | | 470,408 | | | | 411,764 | | | | 414,312 | | | | 344,905 | | | | 289,818 | | | | 265,573 | | | | 305,898 | |
| Borrowings on credit facility short-term | | | — | | | | — | | | | — | | | | 247,000 | | | | 54,971 | | | | 254,174 | | | | 97,000 | | | | — | | | | — | |
| Current portion of long-term debt | | | 184 | | | | 158 | | | | 142 | | | | 26 | | | | 18 | | | | 27 | | | | 23 | | | | 5,017 | | | | 5,010 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total current liabilities | | | 828,661 | | | | 819,963 | | | | 791,627 | | | | 987,336 | | | | 723,708 | | | | 824,736 | | | | 579,107 | | | | 474,992 | | | | 507,156 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-current income taxes payable | | | 111,108 | | | | 116,376 | | | | 119,360 | | | | 115,318 | | | | 119,951 | | | | 123,385 | | | | 125,991 | | | | 82,963 | | | | 87,343 | |
| Long-term debt | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 45,000 | | | | 45,000 | |
| Other liabilities | | | 17,264 | | | | 16,254 | | | | 17,449 | | | | 23,699 | | | | 25,658 | | | | 29,838 | | | | 30,971 | | | | 36,394 | | | | 54,527 | |
| Non-current liabilities of discontinued operations | | | 4,276 | | | | 4,067 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 961,309 | | | | 956,660 | | | | 928,436 | | | | 1,126,353 | | | | 869,317 | | | | 977,959 | | | | 736,069 | | | | 639,349 | | | | 694,026 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common stock and class B common stock | | | 133 | | | | 133 | | | | 134 | | | | 134 | | | | 133 | | | | 134 | | | | 134 | | | | 134 | | | | 134 | |
| Additional paid-in capital | | | 1,468,808 | | | | 1,395,991 | | | | 1,397,281 | | | | 1,363,655 | | | | 1,367,373 | | | | 1,374,049 | | | | 1,382,649 | | | | 1,388,609 | | | | 1,395,969 | |
| Accumulated other comprehensive income | | | 118,387 | | | | 155,830 | | | | 143,264 | | | | 87,460 | | | | 25,801 | | | | 8,327 | | | | 28,360 | | | | 71,133 | | | | 64,167 | |
| Accumulated deficit | | | (470,827 | ) | | | (448,236 | ) | | | (417,406 | ) | | | (374,628 | ) | | | (346,034 | ) | | | (356,375 | ) | | | (357,745 | ) | | | (324,993 | ) | | | (327,106 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total stockholders’ equity | | | 1,116,501 | | | | 1,103,718 | | | | 1,123,273 | | | | 1,076,621 | | | | 1,047,273 | | | | 1,026,135 | | | | 1,053,398 | | | | 1,134,883 | | | | 1,133,164 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 2,077,810 | | | $ | 2,060,378 | | | $ | 2,051,709 | | | $ | 2,202,974 | | | $ | 1,916,590 | | | $ | 2,004,094 | | | $ | 1,789,467 | | | $ | 1,774,232 | | | $ | 1,827,190 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selected Financial Ratios(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| - Annualized return on equity | | | 15.8 | % | | | 8.1 | % | | | 11.1 | % | | | 15.6 | % | | | 10.8 | % | | | -4.0 | % | | | -0.5 | % | | | 12.0 | % | | | -0.7 | % |
| - Book value per share | | $ | 9.02 | | | $ | 9.13 | | | $ | 9.30 | | | $ | 9.08 | | | $ | 8.83 | | | $ | 8.61 | | | $ | 8.83 | | | $ | 9.49 | | | $ | 9.48 | |
| - Cash and marketable securities per share | | $ | 4.67 | | | $ | 4.13 | | | $ | 4.42 | | | $ | 6.18 | | | $ | 2.65 | | | $ | 4.20 | | | $ | 2.78 | | | $ | 2.37 | | | $ | 2.51 | |
| - Net cash and securities | | $ | 578,032 | | | $ | 498,353 | | | $ | 533,095 | | | $ | 485,632 | | | $ | 259,033 | | | $ | 247,038 | | | $ | 235,034 | | | $ | 233,895 | | | $ | 250,106 | |
| | | |
| (1) — | | See notes to financial supplement for definitions and calculations of selected financial ratios. |
Monster Worldwide, Inc.
Segment Information and Margin Analysis — Non-GAAP
(unaudited, in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Trended Quarterly Data | | | Full Year Data | |
| | | Q4 2007 | | | Q1 2008 | | | Q2 2008 | | | Q3 2008 | | | Q4 2008 | | | Q1 2009 | | | Q2 2009 | | | Q3 2009 | | | Q4 2009 | | | 12M 2008 | | | 12M 2009 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Segment OIBDA(1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Careers — North America | | $ | 60,410 | | | $ | 47,602 | | | $ | 67,636 | | | $ | 52,516 | | | $ | 44,138 | | | $ | 12,272 | | | $ | 22,066 | | | $ | 16,902 | | | $ | 12,988 | | | $ | 211,892 | | | $ | 64,228 | |
| Careers — International | | | 29,980 | | | | 16,662 | | | | 40,361 | | | | 39,060 | | | | 23,833 | | | | 10,749 | | | | 8,386 | | | | 8,154 | | | | 9,024 | | | | 119,916 | | | | 36,313 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers OIBDA (1) | | | 90,390 | | | | 64,264 | | | | 107,997 | | | | 91,576 | | | | 67,971 | | | | 23,021 | | | | 30,452 | | | | 25,056 | | | | 22,012 | | | | 331,808 | | | | 100,541 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Internet Advertising & Fees OIBDA(1) | | | 3,118 | | | | 792 | | | | 7,508 | | | | 7,425 | | | | 6,293 | | | | 6,364 | | | | 7,939 | | | | 8,247 | | | | 7,573 | | | | 22,018 | | | | 30,123 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Monster OIBDA(1) | | $ | 93,508 | | | $ | 65,056 | | | $ | 115,505 | | | $ | 99,001 | | | $ | 74,264 | | | $ | 29,385 | | | $ | 38,391 | | | $ | 33,303 | | | $ | 29,585 | | | $ | 353,826 | | | $ | 130,664 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate expenses before D&A(1) | | $ | (11,032 | ) | | $ | (12,104 | ) | | $ | (61,196 | ) | | $ | (13,192 | ) | | $ | (5,810 | ) | | $ | (13,843 | ) | | $ | (10,810 | ) | | $ | (2,851 | ) | | $ | 1,206 | | | $ | (92,302 | ) | | $ | (26,298 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proforma operating income(1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Careers — North America | | $ | 56,482 | | | $ | 42,955 | | | $ | 59,335 | | | $ | 43,771 | | | $ | 34,314 | | | $ | 3,100 | | | $ | 12,405 | | | $ | 9,519 | | | $ | 4,226 | | | $ | 180,375 | | | $ | 29,250 | |
| Careers — International | | | 28,699 | | | | 12,945 | | | | 33,316 | | | | 32,467 | | | | 17,711 | | | | 7,413 | | | | 1,983 | | | | 782 | | | | 297 | | | | 96,439 | | | | 10,475 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers Proforma operating income(1) | | | 85,181 | | | | 55,900 | | | | 92,651 | | | | 76,238 | | | | 52,025 | | | | 10,513 | | | | 14,388 | | | | 10,301 | | | | 4,523 | | | | 276,814 | | | | 39,725 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Internet Advertising & Fees ProForma operating income (loss)(1) | | | 2,658 | | | | (609 | ) | | | 4,994 | | | | 4,977 | | | | 3,745 | | | | 4,003 | | | | 5,096 | | | | 6,506 | | | | 4,993 | | | | 13,107 | | | | 20,598 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Monster Proforma income(1) | | $ | 87,839 | | | $ | 55,291 | | | $ | 97,645 | | | $ | 81,215 | | | $ | 55,770 | | | $ | 14,516 | | | $ | 19,484 | | | $ | 16,807 | | | $ | 9,516 | | | $ | 289,921 | | | $ | 60,323 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate Proforma expenses(1) | | $ | (12,177 | ) | | $ | (11,586 | ) | | $ | (19,308 | ) | | $ | (11,175 | ) | | $ | (14,294 | ) | | $ | (14,288 | ) | | $ | (11,756 | ) | | $ | (12,913 | ) | | $ | (9,567 | ) | | $ | (56,363 | ) | | $ | (48,524 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Segment operating income (loss):(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Careers — North America | | $ | 52,950 | | | $ | 39,701 | | | $ | 58,409 | | | $ | 43,120 | | | $ | 34,025 | | | $ | 828 | | | $ | 10,919 | | | $ | 6,057 | | | $ | 1,866 | | | $ | 175,255 | | | $ | 19,670 | |
| Careers — International | | | 24,753 | | | | 9,643 | | | | 31,916 | | | | 30,230 | | | | 12,938 | | | | (671 | ) | | | (2,019 | ) | | | (2,181 | ) | | | (1,412 | ) | | | 84,727 | | | | (6,283 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers operating income (loss) | | | 77,703 | | | | 49,344 | | | | 90,325 | | | | 73,350 | | | | 46,963 | | | | 157 | | | | 8,900 | | | | 3,876 | | | | 454 | | | | 259,982 | | | | 13,387 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Internet Advertising & Fees operating income (loss) | | | 1,383 | | | | (1,431 | ) | | | 4,656 | | | | 4,726 | | | | 3,715 | | | | 3,557 | | | | 4,926 | | | | 5,091 | | | | 4,540 | | | | 11,666 | | | | 18,114 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Monster operating income (loss) | | $ | 79,086 | | | $ | 47,913 | | | $ | 94,981 | | | $ | 78,076 | | | $ | 50,678 | | | $ | 3,714 | | | $ | 13,826 | | | $ | 8,967 | | | $ | 4,994 | | | $ | 271,648 | | | $ | 31,501 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate expenses | | $ | (13,647 | ) | | $ | (14,569 | ) | | $ | (63,732 | ) | | $ | (15,503 | ) | | $ | (7,889 | ) | | $ | (18,508 | ) | | $ | (14,165 | ) | | $ | (6,015 | ) | | $ | (1,624 | ) | | $ | (101,693 | ) | | $ | (40,312 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Margin Analysis: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers — North America OIBDA margin | | | 34.8 | % | | | 25.9 | % | | | 41.2 | % | | | 33.8 | % | | | 32.7 | % | | | 10.3 | % | | | 21.7 | % | | | 17.8 | % | | | 14.3 | % | | | 33.2 | % | | | 15.8 | % |
Careers — North America Proforma operating margin | | | 32.5 | % | | | 23.4 | % | | | 36.1 | % | | | 28.2 | % | | | 25.4 | % | | | 2.6 | % | | | 12.2 | % | | | 10.0 | % | | | 4.6 | % | | | 28.3 | % | | | 7.2 | % |
Careers — North America operating margin | | | 30.5 | % | | | 21.6 | % | | | 35.6 | % | | | 27.8 | % | | | 25.2 | % | | | 0.7 | % | | | 10.7 | % | | | 6.4 | % | | | 2.1 | % | | | 27.5 | % | | | 4.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers — International OIBDA margin | | | 20.9 | % | | | 10.9 | % | | | 25.8 | % | | | 27.4 | % | | | 19.4 | % | | | 10.4 | % | | | 9.5 | % | | | 9.6 | % | | | 10.2 | % | | | 20.8 | % | | | 9.9 | % |
Careers — International Proforma operating margin | | | 20.0 | % | | | 8.4 | % | | | 21.3 | % | | | 22.8 | % | | | 14.2 | % | | | 7.1 | % | | | 2.2 | % | | | 0.9 | % | | | 0.3 | % | | | 16.7 | % | | | 2.8 | % |
Careers — International operating margin | | | 17.3 | % | | | 6.3 | % | | | 20.4 | % | | | 21.2 | % | | | 10.5 | % | | | -0.6 | % | | | -2.3 | % | | | -2.6 | % | | | -1.6 | % | | | 14.7 | % | | | -1.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers OIBDA margin | | | 28.5 | % | | | 19.1 | % | | | 33.6 | % | | | 30.8 | % | | | 26.4 | % | | | 10.3 | % | | | 16.0 | % | | | 13.9 | % | | | 12.3 | % | | | 27.3 | % | | | 13.0 | % |
Careers Proforma operating margin | | | 26.9 | % | | | 16.6 | % | | | 28.9 | % | | | 25.6 | % | | | 20.0 | % | | | 4.7 | % | | | 7.5 | % | | | 5.7 | % | | | 2.5 | % | | | 22.8 | % | | | 5.1 | % |
Careers operating margin | | | 24.5 | % | | | 14.7 | % | | | 28.1 | % | | | 24.6 | % | | | 18.2 | % | | | 0.1 | % | | | 4.7 | % | | | 2.2 | % | | | 0.3 | % | | | 21.4 | % | | | 1.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Internet Advertising & Fees OIBDA margin | | | 10.1 | % | | | 2.7 | % | | | 22.5 | % | | | 21.5 | % | | | 19.2 | % | | | 20.2 | % | | | 24.3 | % | | | 23.8 | % | | | 22.4 | % | | | 16.9 | % | | | 22.7 | % |
Internet Advertising & Fees Proforma operating margin | | | 8.6 | % | | | -2.1 | % | | | 15.0 | % | | | 14.4 | % | | | 11.4 | % | | | 12.7 | % | | | 15.6 | % | | | 18.8 | % | | | 14.8 | % | | | 10.1 | % | | | 15.5 | % |
Internet Advertising & Fees operating margin | | | 4.5 | % | | | -4.8 | % | | | 14.0 | % | | | 13.7 | % | | | 11.3 | % | | | 11.3 | % | | | 15.1 | % | | | 14.7 | % | | | 13.5 | % | | | 9.0 | % | | | 13.7 | % |
| | | |
| (1) — | | See notes to financial supplement for further explanation of non-GAAP measures. |
Monster Worldwide, Inc.
Statements of Operations
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Trended Quarterly Data | | | Full Year Data | |
| Summary P&L Information | | Q4 2007 | | | Q1 2008 | | | Q2 2008 | | | Q3 2008 | | | Q4 2008 | | | Q1 2009 | | | Q2 2009 | | | Q3 2009 | | | Q4 2009 | | | 12M 2008 | | | 12M 2009 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Monster Careers | | | 91.1 | % | | | 91.9 | % | | | 90.6 | % | | | 89.6 | % | | | 88.7 | % | | | 87.6 | % | | | 85.4 | % | | | 83.9 | % | | | 84.2 | % | | | 90.3 | % | | | 85.4 | % |
| Internet Advertising & Fees | | | 8.9 | % | | | 8.1 | % | | | 9.4 | % | | | 10.4 | % | | | 11.3 | % | | | 12.4 | % | | | 14.6 | % | | | 16.1 | % | | | 15.8 | % | | | 9.7 | % | | | 14.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | | | 36.7 | % | | | 36.9 | % | | | 35.9 | % | | | 38.8 | % | | | 42.4 | % | | | 44.0 | % | | | 46.4 | % | | | 47.9 | % | | | 49.5 | % | | | 38.3 | % | | | 46.8 | % |
| Office and general | | | 16.3 | % | | | 16.8 | % | | | 17.4 | % | | | 17.2 | % | | | 15.2 | % | | | 18.0 | % | | | 19.2 | % | | | 19.8 | % | | | 14.8 | % | | | 16.7 | % | | | 18.0 | % |
| Marketing and promotion | | | 22.1 | % | | | 30.5 | % | | | 19.5 | % | | | 17.4 | % | | | 18.1 | % | | | 29.0 | % | | | 20.2 | % | | | 21.3 | % | | | 21.2 | % | | | 21.7 | % | | | 23.2 | % |
| Provision for (Reversal of) legal settlements, net | | | 0.0 | % | | | 0.0 | % | | | 11.3 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | -3.2 | % | | | 0.0 | % | | | 3.0 | % | | | -0.8 | % |
| Restructuring and other special charges | | | 1.6 | % | | | 1.9 | % | | | 0.8 | % | | | 1.1 | % | | | 1.1 | % | | | 4.3 | % | | | 2.3 | % | | | 0.0 | % | | | 0.0 | % | | | 1.2 | % | | | 1.8 | % |
| Depreciation expense | | | 3.0 | % | | | 2.9 | % | | | 3.5 | % | | | 4.0 | % | | | 5.1 | % | | | 5.4 | % | | | 6.5 | % | | | 7.1 | % | | | 7.3 | % | | | 3.8 | % | | | 6.5 | % |
| Amortization of restricted stock and RSU Plan | | | 1.0 | % | | | 1.4 | % | | | 2.4 | % | | | 2.2 | % | | | 2.4 | % | | | 4.0 | % | | | 4.4 | % | | | 4.6 | % | | | 4.4 | % | | | 2.1 | % | | | 4.3 | % |
| Non-cash stock option expense | | | 0.0 | % | | | 0.0 | % | | | 0.1 | % | | | 0.0 | % | | | 0.1 | % | | | 0.1 | % | | | 0.0 | % | | | 0.1 | % | | | 0.1 | % | | | 0.0 | % | | | 0.1 | % |
| Amortization of intangibles | | | 0.4 | % | | | 0.4 | % | | | 0.4 | % | | | 0.4 | % | | | 0.9 | % | | | 1.0 | % | | | 1.1 | % | | | 1.0 | % | | | 1.0 | % | | | 0.5 | % | | | 1.0 | % |
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Operating expenses | | | 81.2 | % | | | 90.9 | % | | | 91.2 | % | | | 81.2 | % | | | 85.3 | % | | | 105.8 | % | | | 100.2 | % | | | 98.6 | % | | | 98.4 | % | | | 87.4 | % | | | 101.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | | | 18.8 | % | | | 9.1 | % | | | 8.8 | % | | | 18.8 | % | | | 14.7 | % | | | -5.8 | % | | | -0.2 | % | | | 1.4 | % | | | 1.6 | % | | | 12.6 | % | | | -1.0 | % |
| Interest and other, net | | | 2.0 | % | | | 2.0 | % | | | 0.9 | % | | | 1.6 | % | | | 0.5 | % | | | 0.5 | % | | | 0.0 | % | | | 0.0 | % | | | -3.3 | % | | | 1.3 | % | | | -0.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations, pre-tax | | | 20.8 | % | | | 11.1 | % | | | 9.7 | % | | | 20.4 | % | | | 15.3 | % | | | -5.3 | % | | | -0.1 | % | | | 1.4 | % | | | -1.7 | % | | | 13.9 | % | | | -1.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income taxes (benefit from) | | | 7.3 | % | | | 4.1 | % | | | 3.4 | % | | | 6.8 | % | | | 5.1 | % | | | -1.8 | % | | | 0.0 | % | | | -14.4 | % | | | -1.1 | % | | | 4.8 | % | | | -4.2 | % |
| Losses in equity interests, net | | | -0.2 | % | | | -0.5 | % | | | -1.0 | % | | | -0.6 | % | | | -0.1 | % | | | -0.5 | % | | | -0.5 | % | | | -0.5 | % | | | -0.4 | % | | | -0.6 | % | | | -0.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | | 13.3 | % | | | 6.5 | % | | | 5.2 | % | | | 13.0 | % | | | 10.0 | % | | | -4.1 | % | | | -0.6 | % | | | 15.3 | % | | | -1.0 | % | | | 8.5 | % | | | 2.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (Loss) income from disc. operations, net of tax | | | -0.3 | % | | | -0.3 | % | | | 3.5 | % | | | -0.1 | % | | | -0.2 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.8 | % | | | 0.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | | 12.9 | % | | | 6.2 | % | | | 8.7 | % | | | 12.9 | % | | | 9.8 | % | | | -4.1 | % | | | -0.6 | % | | | 15.3 | % | | | -1.0 | % | | | 9.3 | % | | | 2.1 | % |
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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 | | | Full Year Data | |
| Summary P&L Information | | Q4 2007 | | | Q1 2008 | | | Q2 2008 | | | Q3 2008 | | | Q4 2008 | | | Q1 2009 | | | Q2 2009 | | | Q3 2009 | | | Q4 2009 | | | 12M 2008 | | | 12M 2009 | |
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proforma revenue(1) | | $ | 347,847 | | | $ | 366,472 | | | $ | 354,294 | | | $ | 332,189 | | | $ | 292,885 | | | $ | 255,397 | | | $ | 223,782 | | | $ | 215,085 | | | $ | 213,149 | | | $ | 1,345,840 | | | $ | 907,413 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deferred revenue related to acquisitions | | | — | | | | — | | | | — | | | | — | | | | 2,213 | | | | 994 | | | | 725 | | | | 552 | | | | — | | | | 2,213 | | | | 2,271 | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 347,847 | | | $ | 366,472 | | | $ | 354,294 | | | $ | 332,189 | | | $ | 290,672 | | | $ | 254,403 | | | $ | 223,057 | | | $ | 214,533 | | | $ | 213,149 | | | $ | 1,343,627 | | | $ | 905,142 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
OIBDA(1) | | $ | 82,476 | | | $ | 52,952 | | | $ | 54,309 | | | $ | 85,809 | | | $ | 68,454 | | | $ | 15,542 | | | $ | 27,581 | | | $ | 30,452 | | | $ | 30,791 | | | $ | 261,524 | | | $ | 104,366 | |
| | |
| Depreciation expense | | | 10,589 | | | | 10,803 | | | | 12,330 | | | | 13,336 | | | | 14,761 | | | | 13,769 | | | | 14,479 | | | | 15,230 | | | | 15,639 | | | | 51,230 | | | | 59,117 | |
| Amortization of restricted stock and RSU Plan | | | 3,623 | | | | 5,206 | | | | 8,351 | | | | 7,437 | | | | 7,046 | | | | 10,149 | | | | 9,816 | | | | 9,924 | | | | 9,417 | | | | 28,040 | | | | 39,306 | |
| Non-cash stock option expense | | | 105 | | | | 127 | | | | 182 | | | | 165 | | | | 178 | | | | 199 | | | | 104 | | | | 157 | | | | 155 | | | | 652 | | | | 615 | |
| Restructuring non-cash compensation expense | | | — | | | | 1,162 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 1,162 | | | | — | |
| Restructuring non-cash write-offs | | | 1,263 | | | | 924 | | | | 923 | | | | 924 | | | | 924 | | | | 3,668 | | | | 1,055 | | | | — | | | | — | | | | 3,695 | | | | 4,723 | |
| Amortization of intangibles | | | 1,457 | | | | 1,386 | | | | 1,274 | | | | 1,374 | | | | 2,756 | | | | 2,551 | | | | 2,466 | | | | 2,189 | | | | 2,210 | | | | 6,790 | | | | 9,416 | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | | $ | 65,439 | | | $ | 33,344 | | | $ | 31,249 | | | $ | 62,573 | | | $ | 42,789 | | | $ | (14,794 | ) | | $ | (339 | ) | | $ | 2,952 | | | $ | 3,370 | | | $ | 169,955 | | | $ | (8,811 | ) |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proforma operating income(1) | | $ | 75,662 | | | $ | 43,705 | | | $ | 78,337 | | | $ | 70,040 | | | $ | 41,476 | | | $ | 228 | | | $ | 7,728 | | | $ | 3,894 | | | $ | (51 | ) | | $ | 233,558 | | | $ | 11,799 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Provision for (Reversal of) legal settlements, net | | | — | | | | — | | | | 40,100 | | | | — | | | | — | | | | — | | | | — | | | | (6,850 | ) | | | — | | | | 40,100 | | | | (6,850 | ) |
| Stock option investigation | | | 1,392 | | | | 2,983 | | | | 4,256 | | | | 3,875 | | | | (6,682 | ) | | | 3,020 | | | | 2,245 | | | | (474 | ) | | | (8,037 | ) | | | 4,432 | | | | (3,246 | ) |
| Security breach | | | 3,389 | | | | 451 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 451 | | | | — | |
| Non-Gaap severance | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 5,907 | | | | 2,866 | | | | — | | | | 8,773 | |
| Non-Gaap facilities | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 1,807 | | | | 1,750 | | | | — | | | | 3,557 | |
| Deferred revenue related to acquisitions | | | — | | | | — | | | | — | | | | — | | | | 2,213 | | | | 994 | | | | 725 | | | | 552 | | | | — | | | | 2,213 | | | | 2,271 | |
| Restructuring non-cash compensation expense | | | — | | | | 1,162 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 1,162 | | | | — | |
| Restructuring program non-cash write-offs | | | 1,263 | | | | 924 | | | | 923 | | | | 924 | | | | 924 | | | | 3,668 | | | | 1,055 | | | | — | | | | — | | | | 3,695 | | | | 4,723 | |
| Restructuring expenses, less non-cash items | | | 4,179 | | | | 4,841 | | | | 1,809 | | | | 2,668 | | | | 2,232 | | | | 7,340 | | | | 4,042 | | | | — | | | | — | | | | 11,550 | | | | 11,382 | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | | $ | 65,439 | | | $ | 33,344 | | | $ | 31,249 | | | $ | 62,573 | | | $ | 42,789 | | | $ | (14,794 | ) | | $ | (339 | ) | | $ | 2,952 | | | $ | 3,370 | | | $ | 169,955 | | | $ | (8,811 | ) |
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| (1) — | | See notes to financial supplement for further explanation of non-GAAP measures. |
