Exhibit 99.2
FINANCIAL SUPPLEMENT
December 31, 2010
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
Acquisition of the HotJobs Assets from Yahoo! Inc.
On August 24, 2010, pursuant to an Asset Purchase Agreement dated as of February 3, 2010 (the “Asset Purchase Agreement”) by and between Monster and Yahoo! Inc. (“Yahoo!”), Monster completed the acquisition of substantially all of the assets exclusive to Yahoo! HotJobs (the “HotJobs Assets”) from Yahoo! The purchase price for the HotJobs Assets was $225.0 million. We acquired the HotJobs Assets, among other objectives, to expand our business in the North American online recruitment market. The results of operations attributable to the HotJobs Assets have been included in our consolidated financial statements since August 24, 2010. Concurrent with the closing of the acquisition, Monster and Yahoo! entered into a three year commercial traffic agreement whereby Monster became Yahoo!’s exclusive provider of career and job content on the Yahoo! homepage in the United States and Canada.
The Company funded the purchase of the HotJobs Assets with available cash and proceeds from the Company’s revolving credit facility. In the three and twelve months ended December 31, 2010, the Company incurred $6.1 million and $24.3 million, respectively, of acquisition and integration-related costs associated with the acquisition of the HotJobs Assets, which were expensed as incurred and are included in office and general expenses and salary and related expenses in the consolidated statement of operations. These costs primarily relate to legal fees, professional fees and other integration costs associated with the acquisition. We expect to continue to incur significant acquisition and integration-related costs in the first quarter of 2011 relating to the acquisition of the HotJobs Assets.
Deferred Revenue Related to Acquisitions
During the third quarter of 2010, we completed the acquisition of the HotJobs Assets. In accordance with existing purchase accounting rules, we are required to write-down to fair value a portion of the deferred revenue attributable to the HotJobs Assets. 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 months and twelve months ended December 31, 2010, the fair value adjustment to deferred revenue was $3.3 million and $5.1 million, respectively.
During the fourth quarter of 2008, we completed the acquisition of ChinaHR.com Holdings Ltd. (“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 year ended December 31, 2009, the fair value adjustment to ChinaHR’s deferred revenue was $2.3 million.
Severance Charges
For the three months ended December 31, 2010 and 2009, the Company incurred $0.5 million and $2.9 million, respectively, of severance costs relating to targeted global headcount reductions. For the year ended December 31, 2010 and 2009, the Company incurred $7.9 million and $8.8 million, respectively, of severance costs relating to targeted global headcount reductions. These global headcount reductions were introduced to reduce operating expenses and provide funding for investments to further position the Company for sustainable long-term growth in the global online recruitment and advertising industry.
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Auction Rate Securities
In November 2009, the Company entered into a settlement agreement with RBC Capital Markets Corporation (“RBC”) with respect to auction rate securities purchased from RBC. Pursuant to the terms of the settlement agreement, RBC immediately repurchased the subject auction rate securities from the Company at a certain discount to their par value. The Company will 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 auction rate securities still held by RBC are redeemed or refinanced by the issuer for sums higher than the amounts RBC paid the Company to repurchase such auction rate securities. As part of the settlement agreement, the Company dismissed a lawsuit it had filed against RBC in connection with, and released claims related to, RBC’s sale of the auction rate securities to the Company. As a result of the settlement with RBC, beginning in the fourth quarter of 2009, the Company no longer classified losses on its remaining auction rate securities as temporary and, accordingly, all losses are reflected in the consolidated statement of operations. As such, the Company recorded a total charge of $6.3 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.
In the year ended December 31, 2010, the Company received $1.4 million from RBC relating to auction rate securities which were redeemed by the issuer or sold by RBC for sums higher than the amounts RBC paid the Company to repurchase such auction rate securities. The Company’s receipt of $1.4 million from RBC resulted in a $1.4 million benefit recorded in interest and other, net, in the consolidated statement of operations for the year ended December 31, 2010
Additionally, in the year ended December 31, 2010, the Company received at par value issuer redemptions of auction rate securities, resulting in a $1.0 million benefit which was recorded in interest and other, net, in the consolidated statement of operations.
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. Additionally in 2010, we reversed $1.2 million of accrued tax and related interest related to a favorable resolution of a tax examination.
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. 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. The Company will not incur any new charges relating to this program.
For the year ended December 31, 2009, we recorded $16.1 million of restructuring costs, primarily related to severance, fixed asset write-offs and office consolidations.
Reversal of Legal Settlements, net
In the third quarter of 2009, the Company reversed a previously recorded accrual of $6.9 million relating to settlement of all actions seeking recoveries from the Company as an outgrowth of the Company’s historical stock option grant practices.
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Facility Charges
For the three and twelve months ended December 31, 2009, the Company incurred charges of $1.8 million and $3.6 million, respectively, for costs relating to exited facilities. These charges primarily related 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. The organizational changes included plans for a new Technology Center of Excellence and Innovation located in Cambridge, Massachusetts.
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, of professional fees relating to our historical stock option granting practices. These costs primarily related 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 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.
Reclassifications
Certain reclassifications of prior year amounts have been made for consistent presentation.
Non-GAAP financial measures
The Company has provided certain non-GAAP financial information as additional information for its operating results. These measures are not in accordance with, or an alternative for, GAAP and may be different from non-GAAP measures reported by other companies. The Company believes that its presentation of non-GAAP measures provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations.
Non-GAAP revenue, operating expenses, operating income, operating margin, net income or loss 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 the product and technology global reorganization; the fair value adjustment to deferred revenue in connection with the acquisition of ChinaHR and the HotJobs Assets; realized and unrealized gains and losses on marketable securities; transaction costs related to the acquisition of the HotJobs Assets; 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.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is defined as net income or loss before interest income or expense, income tax expense or benefit, net gain or loss in equity interests, depreciation and amortization and non-cash compensation expense. The Company considers EBITDA to be an important indicator of its operational strength which the Company believes is useful to management and investors in evaluating its operating performance. EBITDA is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies.
Operating income before depreciation and amortization (“OIBDA”) is defined as net income or loss before depreciation, amortization of intangible assets, amortization of stock-based compensation and non-cash costs incurred in connection with the Company’s restructuring program. The Company considers OIBDA to be an important indicator of its operational strength. This measure eliminates the effects of depreciation, amortization of intangible assets, amortization of stock-based compensation and non-cash restructuring costs from period to period, which the Company believes is useful to management and investors in evaluating its operating performance. OIBDA is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies.
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Bookings represent the dollar value of contractual orders received in the relevant period.
Free cash flow is defined as cash flow from operating activities less capital expenditures. Free cash flow is considered a liquidity measure and provides useful information about the Company’s ability to generate cash after investments in property and equipment. Free cash flow reflected herein is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies. Free cash flow does not reflect the total change in the Company’s cash position for the period and should not be considered a substitute for such a measure.
Net cash and securities are defined as cash and cash equivalents plus short-term and long-term marketable securities, less total debt. Total available liquidity is defined as cash and cash equivalents, plus short-term and long-term marketable securities, plus unused borrowings under our credit facility. The Company considers net cash and securities and total available liquidity to be important measures of liquidity and indicators of its ability to meet its ongoing obligations. The Company also uses net cash and securities and total available liquidity, among other measures, in evaluating its choices for capital deployment. Net cash and securities and total available liquidity are presented herein as non-GAAP measures and may not be comparable to similarly titled measures used by other companies.
Selected financial ratios
We have included selected financial ratios in this financial supplement in order to assist investors to further evaluate our business. Our definitions and calculations are as follows:
Annualized return on equity
Annualized return on equity measures our effectiveness and ability to generate future profitability on the earnings that we retain. In addition, the ratio is a strong indicator of how well we utilize shareholders’ investments in our business. We calculate annualized return on equity as follows:
Annualized net income / Average stockholders’ equity
Book value per share
Book value per share is a market value indicator that we utilize when analyzing our stockholders’ equity. We calculate book value per share as follows:
Stockholders’ equity / Total shares outstanding
Cash and marketable securities per share
We calculate cash and marketable securities per share as follows:
(Cash and cash equivalents + Current marketable securities + Non-current marketable securities) / Total shares outstanding
5
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 2008 | | | Q1 2009 | | | Q2 2009 | | | Q3 2009 | | | Q4 2009 | | | Q1 2010 | | | Q2 2010 | | | Q3 2010 | | | Q4 2010 | | | 12M 2009 | | | 12M 2010 | |
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Monster Careers | | $ | 257,931 | | | $ | 222,849 | | | $ | 190,397 | | | $ | 179,941 | | | $ | 179,409 | | | $ | 182,582 | | | $ | 183,808 | | | $ | 193,912 | | | $ | 222,689 | | | $ | 772,596 | | | $ | 782,991 | |
Internet Advertising & Fees | | | 32,741 | | | | 31,554 | | | | 32,660 | | | | 34,592 | | | | 33,740 | | | | 32,723 | | | | 31,109 | | | | 34,930 | | | | 32,380 | | | | 132,546 | | | | 131,142 | |
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Revenue | | | 290,672 | | | | 254,403 | | | | 223,057 | | | | 214,533 | | | | 213,149 | | | | 215,305 | | | | 214,917 | | | | 228,842 | | | | 255,069 | | | | 905,142 | | | | 914,133 | |
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Salary and related | | | 123,211 | | | | 112,037 | | | | 103,564 | | | | 102,752 | | | | 105,475 | | | | 118,183 | | | | 104,089 | | | | 105,764 | | | | 115,564 | | | | 423,828 | | | | 443,600 | |
Office and general | | | 44,091 | | | | 45,793 | | | | 42,917 | | | | 42,422 | | | | 31,623 | | | | 45,544 | | | | 41,214 | | | | 46,790 | | | | 42,153 | | | | 162,755 | | | | 175,701 | |
Marketing and promotion | | | 52,684 | | | | 73,691 | | | | 44,953 | | | | 45,757 | | | | 45,260 | | | | 59,581 | | | | 46,925 | | | | 51,661 | | | | 64,399 | | | | 209,661 | | | | 222,566 | |
Reversal of legal settlements, net | | | — | | | | — | | | | — | | | | (6,850 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | (6,850 | ) | | | — | |
Restructuring and other special charges | | | 3,156 | | | | 11,008 | | | | 5,097 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 16,105 | | | | — | |
Depreciation expense | | | 14,761 | | | | 13,769 | | | | 14,479 | | | | 15,230 | | | | 15,639 | | | | 14,521 | | | | 13,782 | | | | 13,975 | | | | 14,204 | | | | 59,117 | | | | 56,482 | |
Amortization of restricted stock units and awards | | | 7,046 | | | | 10,149 | | | | 9,816 | | | | 9,924 | | | | 9,417 | | | | 10,124 | | | | 10,744 | | | | 13,398 | | | | 12,380 | | | | 39,306 | | | | 46,646 | |
Amortization of stock options | | | 178 | | | | 199 | | | | 104 | | | | 157 | | | | 155 | | | | 143 | | | | 133 | | | | 135 | | | | 134 | | | | 615 | | | | 545 | |
Amortization of intangibles | | | 2,756 | | | | 2,551 | | | | 2,466 | | | | 2,189 | | | | 2,210 | | | | 2,083 | | | | 1,910 | | | | 2,507 | | | | 4,114 | | | | 9,416 | | | | 10,614 | |
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Operating expenses | | | 247,883 | | | | 269,197 | | | | 223,396 | | | | 211,581 | | | | 209,779 | | | | 250,179 | | | | 218,797 | | | | 234,230 | | | | 252,948 | | | | 913,953 | | | | 956,154 | |
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Operating income (loss) | | | 42,789 | | | | (14,794 | ) | | | (339 | ) | | | 2,952 | | | | 3,370 | | | | (34,874 | ) | | | (3,880 | ) | | | (5,388 | ) | | | 2,121 | | | | (8,811 | ) | | | (42,021 | ) |
Interest and other, net | | | 1,560 | | | | 1,203 | | | | 76 | | | | (48 | ) | | | (7,059 | ) | | | (653 | ) | | | 901 | | | | (1,286 | ) | | | (835 | ) | | | (5,828 | ) | | | (1,873 | ) |
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Income (loss) from cont. operations, pre-tax | | | 44,349 | | | | (13,591 | ) | | | (263 | ) | | | 2,904 | | | | (3,689 | ) | | | (35,527 | ) | | | (2,979 | ) | | | (6,674 | ) | | | 1,286 | | | | (14,639 | ) | | | (43,894 | ) |
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Provison for (benefit from) income taxes | | | 14,880 | | | | (4,489 | ) | | | (83 | ) | | | (30,891 | ) | | | (2,420 | ) | | | (12,179 | ) | | | (829 | ) | | | (1,823 | ) | | | 426 | | | | (37,883 | ) | | | (14,405 | ) |
Loss in equity interests, net | | | (339 | ) | | | (1,239 | ) | | | (1,190 | ) | | | (1,044 | ) | | | (844 | ) | | | (831 | ) | | | (807 | ) | | | (873 | ) | | | (359 | ) | | | (4,317 | ) | | | (2,870 | ) |
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Income (loss) from continuing operations | | | 29,130 | | | | (10,341 | ) | | | (1,370 | ) | | | 32,751 | | | | (2,113 | ) | | | (24,179 | ) | | | (2,957 | ) | | | (5,724 | ) | | | 501 | | | | 18,927 | | | | (32,359 | ) |
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Loss from disc. operations, net of tax | | | (536 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
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Net income (loss) | | $ | 28,594 | | | $ | (10,341 | ) | | $ | (1,370 | ) | | $ | 32,751 | | | $ | (2,113 | ) | | $ | (24,179 | ) | | $ | (2,957 | ) | | $ | (5,724 | ) | | $ | 501 | | | $ | 18,927 | | | $ | (32,359 | ) |
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Basic earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | | $ | 0.25 | | | $ | (0.09 | ) | | $ | (0.01 | ) | | $ | 0.27 | | | $ | (0.02 | ) | | $ | (0.20 | ) | | $ | (0.02 | ) | | $ | (0.05 | ) | | $ | — | | | $ | 0.16 | | | $ | (0.27 | ) |
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Net income (loss) | | $ | 0.24 | | | $ | (0.09 | ) | | $ | (0.01 | ) | | $ | 0.27 | | | $ | (0.02 | ) | | $ | (0.20 | ) | | $ | (0.02 | ) | | $ | (0.05 | ) | | $ | — | | | $ | 0.16 | | | $ | (0.27 | ) |
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Diluted earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | | $ | 0.24 | | | $ | (0.09 | ) | | $ | (0.01 | ) | | $ | 0.27 | | | $ | (0.02 | ) | | $ | (0.20 | ) | | $ | (0.02 | ) | | $ | (0.05 | ) | | $ | — | | | $ | 0.16 | | | $ | (0.27 | ) |
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Net income (loss) | | $ | 0.24 | | | $ | (0.09 | ) | | $ | (0.01 | ) | | $ | 0.27 | | | $ | (0.02 | ) | | $ | (0.20 | ) | | $ | (0.02 | ) | | $ | (0.05 | ) | | $ | — | | | $ | 0.16 | | | $ | (0.27 | ) |
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Weighted avg. shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic shares | | | 118,601 | | | | 118,855 | | | | 119,274 | | | | 119,473 | | | | 119,575 | | | | 120,032 | | | | 120,701 | | | | 120,796 | | | | 120,892 | | | | 119,359 | | | | 120,608 | |
Diluted shares | | | 119,380 | | | | 118,855 | | | | 119,274 | | | | 121,676 | | | | 119,575 | | | | 120,032 | | | | 120,701 | | | | 120,796 | | | | 124,525 | | | | 121,170 | | | | 120,608 | |
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Global employees (ones) | | | 6,961 | | | | 6,295 | | | | 5,999 | | | | 5,779 | | | | 5,687 | | | | 5,518 | | | | 5,546 | | | | 5,792 | | | | 5,847 | | | | 5,687 | | | | 5,847 | |
Annualized revenue per average employee | | $ | 184.1 | | | $ | 153.5 | | | $ | 145.1 | | | $ | 145.7 | | | $ | 148.7 | | | $ | 153.7 | | | $ | 155.4 | | | $ | 161.5 | | | $ | 175.3 | | | $ | 152.4 | | | $ | 161.5 | |
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Net Bookings | | | 289,650 | | | | 186,899 | | | | 175,468 | | | | 185,920 | | | | 258,620 | | | | 219,054 | | | | 208,202 | | | | 235,025 | | | | 330,157 | | | | 806,907 | | | | 992,438 | |
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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 | | Q4 2008 | | | Q1 2009 | | | Q2 2009 | | | Q3 2009 | | | Q4 2009 | | | Q1 2010 | | | Q2 2010 | | | Q3 2010 | | | Q4 2010 | |
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Monster Careers | | $ | 1,213,300 | | | $ | 1,099,339 | | | $ | 968,783 | | | $ | 851,118 | | | $ | 772,596 | | | $ | 732,329 | | | $ | 725,740 | | | $ | 739,711 | | | $ | 782,991 | |
Internet Advertising & Fees | | | 130,327 | | | | 132,219 | | | | 131,538 | | | | 131,547 | | | | 132,546 | | | | 133,715 | | | | 132,164 | | | | 132,502 | | | | 131,142 | |
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Revenue | | | 1,343,627 | | | | 1,231,558 | | | | 1,100,321 | | | | 982,665 | | | | 905,142 | | | | 866,044 | | | | 857,904 | | | | 872,213 | | | | 914,133 | |
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Salary and related | | | 514,576 | | | | 491,498 | | | | 467,716 | | | | 441,564 | | | | 423,828 | | | | 429,974 | | | | 430,499 | | | | 433,511 | | | | 443,600 | |
Office and general | | | 224,679 | | | | 208,762 | | | | 189,925 | | | | 175,223 | | | | 162,755 | | | | 162,506 | | | | 160,803 | | | | 165,171 | | | | 175,701 | |
Marketing and promotion | | | 291,198 | | | | 253,035 | | | | 229,012 | | | | 217,085 | | | | 209,661 | | | | 195,551 | | | | 197,523 | | | | 203,427 | | | | 222,566 | |
Provision for (reversal of) legal settlements, net | | | 40,100 | | | | 40,100 | | | | — | | | | (6,850 | ) | | | (6,850 | ) | | | (6,850 | ) | | | (6,850 | ) | | | — | | | | — | |
Restructuring and other special charges | | | 16,407 | | | | 20,488 | | | | 22,853 | | | | 19,261 | | | | 16,105 | | | | 5,097 | | | | — | | | | — | | | | — | |
Depreciation expense | | | 51,230 | | | | 54,196 | | | | 56,345 | | | | 58,239 | | | | 59,117 | | | | 59,869 | | | | 59,172 | | | | 57,917 | | | | 56,482 | |
Amortization of restricted stock units and awards | | | 28,040 | | | | 32,983 | | | | 34,448 | | | | 36,935 | | | | 39,306 | | | | 39,281 | | | | 40,209 | | | | 43,683 | | | | 46,646 | |
Amortization of stock options | | | 652 | | | | 724 | | | | 646 | | | | 638 | | | | 615 | | | | 559 | | | | 588 | | | | 566 | | | | 545 | |
Amortization of intangibles | | | 6,790 | | | | 7,955 | | | | 9,147 | | | | 9,962 | | | | 9,416 | | | | 8,948 | | | | 8,392 | | | | 8,710 | | | | 10,614 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating expenses | | | 1,173,672 | | | | 1,109,741 | | | | 1,010,092 | | | | 952,057 | | | | 913,953 | | | | 894,935 | | | | 890,336 | | | | 912,985 | | | | 956,154 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | | | 169,955 | | | | 121,817 | | | | 90,229 | | | | 30,608 | | | | (8,811 | ) | | | (28,891 | ) | | | (32,432 | ) | | | (40,772 | ) | | | (42,021 | ) |
Interest and other, net | | | 17,283 | | | | 11,103 | | | | 8,122 | | | | 2,791 | | | | (5,828 | ) | | | (7,684 | ) | | | (6,859 | ) | | | (8,097 | ) | | | (1,873 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations, pre-tax | | | 187,238 | | | | 132,920 | | | | 98,351 | | | | 33,399 | | | | (14,639 | ) | | | (36,575 | ) | | | (39,291 | ) | | | (48,869 | ) | | | (43,894 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Provision for (benefit from) income taxes | | | 64,910 | | | | 45,278 | | | | 33,042 | | | | (20,583 | ) | | | (37,883 | ) | | | (45,573 | ) | | | (46,319 | ) | | | (17,251 | ) | | | (14,405 | ) |
Loss in equity interests, net | | | (7,839 | ) | | | (7,256 | ) | | | (4,854 | ) | | | (3,812 | ) | | | (4,317 | ) | | | (3,909 | ) | | | (3,526 | ) | | | (3,355 | ) | | | (2,870 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | | | 114,489 | | | | 80,386 | | | | 60,455 | | | | 50,170 | | | | 18,927 | | | | 5,089 | | | | 3,502 | | | | (34,973 | ) | | | (32,359 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from disc. operations, net of tax | | | 10,304 | | | | 11,475 | | | | (794 | ) | | | (536 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 124,793 | | | $ | 91,861 | | | $ | 59,661 | | | $ | 49,634 | | | $ | 18,927 | | | $ | 5,089 | | | $ | 3,502 | | | $ | (34,973 | ) | | $ | (32,359 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | | $ | 0.95 | | | $ | 0.67 | | | $ | 0.51 | | | $ | 0.42 | | | $ | 0.16 | | | $ | 0.04 | | | $ | 0.03 | | | $ | (0.29 | ) | | $ | (0.27 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 1.04 | | | $ | 0.77 | | | $ | 0.50 | | | $ | 0.42 | | | $ | 0.16 | | | $ | 0.04 | | | $ | 0.03 | | | $ | (0.29 | ) | | $ | (0.27 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | | $ | 0.94 | | | $ | 0.67 | | | $ | 0.51 | | | $ | 0.42 | | | $ | 0.16 | | | $ | 0.04 | | | $ | 0.03 | | | $ | (0.29 | ) | | $ | (0.27 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 1.03 | | | $ | 0.76 | | | $ | 0.50 | | | $ | 0.41 | | | $ | 0.16 | | | $ | 0.04 | | | $ | 0.03 | | | $ | (0.29 | ) | | $ | (0.27 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted avg. shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic shares | | | 120,557 | | | | 119,600 | | | | 119,197 | | | | 119,051 | | | | 119,294 | | | | 119,588 | | | | 119,945 | | | | 120,276 | | | | 120,605 | |
Diluted shares | | | 121,167 | | | | 120,125 | | | | 119,558 | | | | 119,796 | | | | 119,845 | | | | 120,139 | | | | 120,496 | | | | 120,276 | | | | 121,513 | |
7
Monster Worldwide, Inc.
Statements of Cash Flows
(unaudited, in thousands, except per share amounts)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Trended Quarterly Data | | | Full Year Data | |
| | Q4 2008 | | | Q1 2009 | | | Q2 2009 | | | Q3 2009 | | | Q4 2009 | | | Q1 2010 | | | Q2 2010 | | | Q3 2010 | | | Q4 2010 | | | 12M 2009 | | | 12M 2010 | |
Cash flows (used for) provided by operating activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 28,594 | | | $ | (10,341 | ) | | $ | (1,370 | ) | | $ | 32,751 | | | $ | (2,113 | ) | | $ | (24,179 | ) | | $ | (2,957 | ) | | $ | (5,724 | ) | | $ | 501 | | | $ | 18,927 | | | $ | (32,359 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjustments to reconcile net income (loss) to cash (used for) provided by operating activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss from discontinued operations, net of tax | | | 536 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Depreciation and amortization | | | 17,517 | | | | 16,320 | | | | 16,945 | | | | 17,419 | | | | 17,849 | | | | 16,604 | | | | 15,692 | | | | 16,482 | | | | 18,318 | | | | 68,533 | | | | 67,096 | |
Reversal of legal settlements, net | | | — | | | | — | | | | — | | | | (6,850 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | (6,850 | ) | | | — | |
Payments for legal settlements, net | | | (35,587 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Provision for doubtful accounts | | | 5,057 | | | | 4,072 | | | | 2,812 | | | | 1,682 | | | | 1,588 | | | | 1,149 | | | | 398 | | | | 489 | | | | 911 | | | | 10,154 | | | | 2,947 | |
Non-cash compensation | | | 7,223 | | | | 10,348 | | | | 9,920 | | | | 10,081 | | | | 9,572 | | | | 10,267 | | | | 10,877 | | | | 13,533 | | | | 12,514 | | | | 39,921 | | | | 47,191 | |
Deferred income taxes | | | 14,572 | | | | (2,488 | ) | | | (3,933 | ) | | | 12,160 | | | | (4,550 | ) | | | (14,713 | ) | | | (2,872 | ) | | | (8,509 | ) | | | (1,796 | ) | | | 1,189 | | | | (27,890 | ) |
Non-cash restructuring write-offs, accelerated amortization, and other | | | 924 | | | | 3,690 | | | | 1,051 | | | | 3 | | | | 35 | | | | — | | | | 144 | | | | 19 | | | | 92 | | | | 4,779 | | | | 255 | |
Loss in equity interests, net | | | 339 | | | | 1,239 | | | | 1,190 | | | | 1,044 | | | | 844 | | | | 831 | | | | 807 | | | | 873 | | | | 359 | | | | 4,317 | | | | 2,870 | |
Losses (gains) on auction rate securities | | | — | | | | — | | | | — | | | | — | | | | 4,181 | | | | (200 | ) | | | (1,904 | ) | | | (311 | ) | | | — | | | | 4,181 | | | | (2,415 | ) |
Changes in assets and liabilities, net of acquisitions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts receivable | | | (19,371 | ) | | | 72,347 | | | | 47,892 | | | | 7,284 | | | | (47,061 | ) | | | 17,631 | | | | 16,930 | | | | (21,282 | ) | | | (66,834 | ) | | | 80,462 | | | | (53,555 | ) |
Prepaid and other | | | 1,548 | | | | 3,246 | | | | 13,615 | | | | (16,005 | ) | | | (3,525 | ) | | | 1,589 | | | | (2,201 | ) | | | 720 | | | | (16,598 | ) | | | (2,669 | ) | | | (16,490 | ) |
Deferred revenue | | | (5,732 | ) | | | (63,383 | ) | | | (61,153 | ) | | | (28,152 | ) | | | 41,054 | | | | 4,668 | | | | (19,725 | ) | | | 12,471 | | | | 65,074 | | | | (111,634 | ) | | | 62,488 | |
Accounts payable, accrued expenses and other liabilities | | | (27,790 | ) | | | (21,237 | ) | | | (40,657 | ) | | | (19,574 | ) | | | 14,883 | | | | 22,569 | | | | (8,491 | ) | | | 9,849 | | | | 19,007 | | | | (66,585 | ) | | | 42,934 | |
Net cash (used for) provided by operating activities of discontinued operations | | | (2,758 | ) | | | (77 | ) | | | 77 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total adjustments | | | (43,522 | ) | | | 24,077 | | | | (12,241 | ) | | | (20,908 | ) | | | 34,870 | | | | 60,395 | | | | 9,655 | | | | 24,334 | | | | 31,047 | | | | 25,798 | | | | 125,431 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash (used for) provided by operating activities | | | (14,928 | ) | | | 13,736 | | | | (13,611 | ) | | | 11,843 | | | | 32,757 | | | | 36,216 | | | | 6,698 | | | | 18,610 | | | | 31,548 | | | | 44,725 | | | | 93,072 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash flows (used for) provided by investing activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capital expenditures | | | (22,403 | ) | | | (14,922 | ) | | | (11,457 | ) | | | (12,285 | ) | | | (10,013 | ) | | | (8,536 | ) | | | (11,939 | ) | | | (16,181 | ) | | | (20,470 | ) | | | (48,677 | ) | | | (57,126 | ) |
Purchase of marketable securities | | | (1,785 | ) | | | (992 | ) | | | (6,484 | ) | | | — | | | | (1,109 | ) | | | — | | | | — | | | | — | | | | — | | | | (8,585 | ) | | | — | |
Sale and maturities of marketable securities and other | | | 36,981 | | | | 1,425 | | | | 1,892 | | | | — | | | | 67,660 | | | | 3,414 | | | | 11,120 | | | | 8,461 | | | | 4,094 | | | | 70,977 | | | | 27,089 | |
Payments for acquisitions and intangible assets, net of cash acquired | | | (166,641 | ) | | | — | | | | — | | | | (300 | ) | | | — | | | | — | | | | — | | | | (225,000 | ) | | | (795 | ) | | | (300 | ) | | | (225,795 | ) |
Dividends received from unconsolidated investee | | | — | | | | — | | | | 763 | | | | — | | | | — | | | | 220 | | | | — | | | | — | | | | — | | | | 763 | | | | 220 | |
Cash funded to equity investee | | | (1,402 | ) | | | (1,428 | ) | | | (1,886 | ) | | | (1,639 | ) | | | (1,346 | ) | | | (1,345 | ) | | | (1,555 | ) | | | (1,524 | ) | | | (1,224 | ) | | | (6,299 | ) | | | (5,648 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash (used for) provided by investing activities | | | (155,250 | ) | | | (15,917 | ) | | | (17,172 | ) | | | (14,224 | ) | | | 55,192 | | | | (6,247 | ) | | | (2,374 | ) | | | (234,244 | ) | | | (18,395 | ) | | | 7,879 | | | | (261,260 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash flows (used for) provided by financing activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from borrowings on credit facilities short-term | | | 4,971 | | | | 199,203 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 90,000 | | | | — | | | | 199,203 | | | | 90,000 | |
Payments on borrowings on credit facilities short-term | | | (197,893 | ) | | | — | | | | (157,173 | ) | | | (99,023 | ) | | | — | | | | — | | | | — | | | | (5,000 | ) | | | (10,500 | ) | | | (256,196 | ) | | | (15,500 | ) |
Repurchase of common stock and tax withholdings on net share settlement of restricted stock awards and units | | | (32 | ) | | | (1,907 | ) | | | (528 | ) | | | (1,869 | ) | | | (267 | ) | | | (6,359 | ) | | | (2,856 | ) | | | (589 | ) | | | (4,423 | ) | | | (4,571 | ) | | | (14,227 | ) |
Net borrowings (payments) under capital lease obligations and other debt | | | (15 | ) | | | (5 | ) | | | (1 | ) | | | 50,006 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 50,000 | | | | — | |
Proceeds from the exercise of employee stock options | | | 305 | | | | 9 | | | | — | | | | 46 | | | | 12 | | | | 27 | | | | 39 | | | | — | | | | 234 | | | | 67 | | | | 300 | |
Excess tax benefits from equity compensation plans | | | 22 | | | | 4 | | | | — | | | | 8 | | | | 67 | | | | — | | | | — | | | | — | | | | — | | | | 79 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash (used for) provided by financing activities | | | (192,642 | ) | | | 197,304 | | | | (157,702 | ) | | | (50,832 | ) | | | (188 | ) | | | (6,332 | ) | | | (2,817 | ) | | | 84,411 | | | | (14,689 | ) | | | (11,418 | ) | | | 60,573 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Effects of exchange rates on cash | | | (20,044 | ) | | | (6,327 | ) | | | 13,681 | | | | 4,438 | | | | 209 | | | | (7,932 | ) | | | (3,930 | ) | | | 9,207 | | | | (2,008 | ) | | | 12,001 | | | | (4,663 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net (decrease) increase in cash and cash equivalents | | | (382,864 | ) | | | 188,796 | | | | (174,804 | ) | | | (48,775 | ) | | | 87,970 | | | | 15,705 | | | | (2,423 | ) | | | (122,016 | ) | | | (3,544 | ) | | | 53,187 | | | | (112,278 | ) |
Cash and cash equivalents, beginning of period | | | 605,124 | | | | 222,260 | | | | 411,056 | | | | 236,252 | | | | 187,477 | | | | 275,447 | | | | 291,152 | | | | 288,729 | | | | 166,713 | | | | 222,260 | | | | 275,447 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents, end of period | | $ | 222,260 | | | $ | 411,056 | | | $ | 236,252 | | | $ | 187,477 | | | $ | 275,447 | | | $ | 291,152 | | | $ | 288,729 | | | $ | 166,713 | | | $ | 163,169 | | | $ | 275,447 | | | $ | 163,169 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non — GAAP Free cash flow (1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash (used for) provided by operating activities | | $ | (14,928 | ) | | $ | 13,736 | | | $ | (13,611 | ) | | $ | 11,843 | | | $ | 32,757 | | | $ | 36,216 | | | $ | 6,698 | | | $ | 18,610 | | | $ | 31,548 | | | $ | 44,725 | | | $ | 93,072 | |
Less: Capital expenditures | | | (22,403 | ) | | | (14,922 | ) | | | (11,457 | ) | | | (12,285 | ) | | | (10,013 | ) | | | (8,536 | ) | | | (11,939 | ) | | | (16,181 | ) | | | (20,470 | ) | | | (48,677 | ) | | | (57,126 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Free cash flow | | $ | (37,331 | ) | | $ | (1,186 | ) | | $ | (25,068 | ) | | $ | (442 | ) | | $ | 22,744 | | | $ | 27,680 | | | $ | (5,241 | ) | | $ | 2,429 | | | $ | 11,078 | | | $ | (3,952 | ) | | $ | 35,946 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
(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 | |
| | Q4 2008 | | | Q1 2009 | | | Q2 2009 | | | Q3 2009 | | | Q4 2009 | | | Q1 2010 | | | Q2 2010 | | | Q3 2010 | | | Q4 2010 | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 222,260 | | | $ | 411,056 | | | $ | 236,252 | | | $ | 187,477 | | | $ | 275,447 | | | $ | 291,152 | | | $ | 288,729 | | | $ | 166,713 | | | $ | 163,169 | |
Marketable securities, current | | | 1,425 | | | | 992 | | | | 14,533 | | | | 20,482 | | | | 9,259 | | | | 8,150 | | | | 8,300 | | | | — | | | | — | |
Accounts Receivable, net | | | 376,720 | | | | 294,449 | | | | 249,004 | | | | 243,033 | | | | 287,698 | | | | 263,589 | | | | 242,199 | | | | 282,274 | | | | 346,751 | |
Prepaid and other | | | 82,416 | | | | 82,710 | | | | 73,866 | | | | 87,058 | | | | 73,089 | | | | 70,229 | | | | 68,487 | | | | 66,301 | | | | 75,451 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total current assets | | | 682,821 | | | | 789,207 | | | | 573,655 | | | | 538,050 | | | | 645,493 | | | | 633,120 | | | | 607,715 | | | | 515,288 | | | | 585,371 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Marketable securities, non-current | | | 90,347 | | | | 89,196 | | | | 81,272 | | | | 75,953 | | | | 15,410 | | | | 13,110 | | | | 4,094 | | | | 4,094 | | | | — | |
Property and equipment, net | | | 161,282 | | | | 154,559 | | | | 153,942 | | | | 150,963 | | | | 143,727 | | | | 136,487 | | | | 136,821 | | | | 143,973 | | | | 150,147 | |
Goodwill | | | 894,546 | | | | 886,970 | | | | 897,561 | | | | 930,231 | | | | 925,758 | | | | 917,187 | | | | 892,008 | | | | 1,123,834 | | | | 1,122,951 | |
Intangibles, net | | | 52,335 | | | | 49,533 | | | | 47,420 | | | | 45,893 | | | | 43,863 | | | | 41,173 | | | | 39,029 | | | | 70,067 | | | | 66,184 | |
Investment in unconsolidated affiliates | | | 1,843 | | | | 1,315 | | | | 517 | | | | 525 | | | | 546 | | | | 330 | | | | 640 | | | | 745 | | | | 1,359 | |
Other assets | | | 33,416 | | | | 33,314 | | | | 35,100 | | | | 32,617 | | | | 52,393 | | | | 50,884 | | | | 52,411 | | | | 52,108 | | | | 51,990 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 1,916,590 | | | $ | 2,004,094 | | | $ | 1,789,467 | | | $ | 1,774,232 | | | $ | 1,827,190 | | | $ | 1,792,291 | | | $ | 1,732,718 | | | $ | 1,910,109 | | | $ | 1,978,002 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable, accrued expenses and other | | $ | 254,407 | | | $ | 225,630 | | | $ | 192,266 | | | $ | 204,402 | | | $ | 196,248 | | | $ | 217,671 | | | $ | 203,227 | | | $ | 213,562 | | | $ | 225,876 | |
Deferred revenue | | | 414,312 | | | | 344,905 | | | | 289,818 | | | | 265,573 | | | | 305,898 | | | | 304,993 | | | | 279,809 | | | | 312,952 | | | | 376,448 | |
Borrowings on credit facility short-term | | | 54,971 | | | | 254,174 | | | | 97,000 | | | | — | | | | — | | | | — | | | | — | | | | 90,000 | | | | 79,500 | |
Current portion of long-term debt | | | 18 | | | | 27 | | | | 23 | | | | 5,017 | | | | 5,010 | | | | 5,003 | | | | 5,000 | | | | 5,000 | | | | 5,000 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total current liabilities | | | 723,708 | | | | 824,736 | | | | 579,107 | | | | 474,992 | | | | 507,156 | | | | 527,667 | | | | 488,036 | | | | 621,514 | | | | 686,824 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Long-term income taxes payable | | | 119,951 | | | | 123,385 | | | | 125,991 | | | | 82,963 | | | | 87,343 | | | | 89,101 | | | | 90,813 | | | | 95,464 | | | | 95,390 | |
Long-term debt, less current portion | | | — | | | | — | | | | — | | | | 45,000 | | | | 45,000 | �� | | | 45,000 | | | | 45,000 | | | | 40,000 | | | | 40,000 | |
Other liabilities | | | 25,658 | | | | 29,838 | | | | 30,971 | | | | 36,394 | | | | 54,527 | | | | 38,288 | | | | 38,325 | | | | 27,398 | | | | 27,138 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 869,317 | | | | 977,959 | | | | 736,069 | | | | 639,349 | | | | 694,026 | | | | 700,056 | | | | 662,174 | | | | 784,376 | | | | 849,352 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock | | | 133 | | | | 134 | | | | 134 | | | | 134 | | | | 134 | | | | 135 | | | | 135 | | | | 136 | | | | 136 | |
Additional paid-in capital | | | 1,367,373 | | | | 1,374,049 | | | | 1,382,649 | | | | 1,388,609 | | | | 1,395,970 | | | | 1,394,915 | | | | 1,404,043 | | | | 1,416,547 | | | | 1,424,815 | |
Accumulated other comprehensive income | | | 25,801 | | | | 8,327 | | | | 28,360 | | | | 71,133 | | | | 64,167 | | | | 48,470 | | | | 20,608 | | | | 69,016 | | | | 63,165 | |
Accumulated deficit | | | (346,034 | ) | | | (356,375 | ) | | | (357,745 | ) | | | (324,993 | ) | | | (327,107 | ) | | | (351,285 | ) | | | (354,242 | ) | | | (359,966 | ) | | | (359,466 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total stockholders’ equity | | | 1,047,273 | | | | 1,026,135 | | | | 1,053,398 | | | | 1,134,883 | | | | 1,133,164 | | | | 1,092,235 | | | | 1,070,544 | | | | 1,125,733 | | | | 1,128,650 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 1,916,590 | | | $ | 2,004,094 | | | $ | 1,789,467 | | | $ | 1,774,232 | | | $ | 1,827,190 | | | $ | 1,792,291 | | | $ | 1,732,718 | | | $ | 1,910,109 | | | $ | 1,978,002 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selected Financial Ratios(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
- Annualized return on equity | | | 10.8 | % | | | -4.0 | % | | | -0.5 | % | | | 12.0 | % | | | -0.7 | % | | | -8.7 | % | | | -1.1 | % | | | -2.1 | % | | | 0.2 | % |
- Book value per share | | $ | 8.83 | | | $ | 8.61 | | | $ | 8.83 | | | $ | 9.49 | | | $ | 9.47 | | | $ | 9.05 | | | $ | 8.87 | | | $ | 9.32 | | | $ | 9.32 | |
- Cash and marketable securities per share | | $ | 2.65 | | | $ | 4.20 | | | $ | 2.78 | | | $ | 2.37 | | | $ | 2.51 | | | $ | 2.59 | | | $ | 2.49 | | | $ | 1.41 | | | $ | 1.35 | |
- Net cash and securities | | $ | 259,033 | | | $ | 247,038 | | | $ | 235,034 | | | $ | 233,895 | | | $ | 250,106 | | | $ | 262,409 | | | $ | 251,123 | | | $ | 35,807 | | | $ | 38,669 | |
| | |
(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 | | | Full Year Data | |
| | Q4 2008 | | | Q1 2009 | | | Q2 2009 | | | Q3 2009 | | | Q4 2009 | | | Q1 2010 | | | Q2 2010 | | | Q3 2010 | | | Q4 2010 | | | 12M 2009 | | | 12M 2010 | |
Segment OIBDA(1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers — North America | | $ | 44,138 | | | $ | 12,272 | | | $ | 22,066 | | | $ | 16,902 | | | $ | 12,988 | | | $ | 5,671 | | | $ | 26,825 | | | $ | 29,734 | | | $ | 28,033 | | | $ | 64,228 | | | $ | 90,263 | |
Careers — International | | | 23,833 | | | | 10,749 | | | | 8,386 | | | | 8,154 | | | | 9,024 | | | | (3,089 | ) | | | 5,583 | | | | 5,170 | | | | 11,539 | | | | 36,313 | | | | 19,203 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers OIBDA (1) | | | 67,971 | | | | 23,021 | | | | 30,452 | | | | 25,056 | | | | 22,012 | | | | 2,582 | | | | 32,408 | | | | 34,904 | | | | 39,572 | | | | 100,541 | | | | 109,466 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Internet Advertising & Fees OIBDA(1) | | | 6,293 | | | | 6,364 | | | | 7,939 | | | | 8,247 | | | | 7,573 | | | | 4,764 | | | | 4,056 | | | | 5,673 | | | | 4,346 | | | | 30,123 | | | | 18,839 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Monster OIBDA(1) | | $ | 74,264 | | | $ | 29,385 | | | $ | 38,391 | | | $ | 33,303 | | | $ | 29,585 | | | $ | 7,346 | | | $ | 36,464 | | | $ | 40,577 | | | $ | 43,918 | | | $ | 130,664 | | | $ | 128,305 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate expenses before D&A(1) | | $ | (5,810 | ) | | $ | (13,843 | ) | | $ | (10,812 | ) | | $ | (2,851 | ) | | $ | 1,206 | | | $ | (15,349 | ) | | $ | (13,775 | ) | | $ | (15,950 | ) | | $ | (10,965 | ) | | $ | (26,300 | ) | | $ | (56,039 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proforma operating income(1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers — North America | | $ | 34,314 | | | $ | 3,100 | | | $ | 12,405 | | | $ | 9,519 | | | $ | 4,226 | | | $ | (491 | ) | | $ | 17,500 | | | $ | 20,744 | | | $ | 18,701 | | | $ | 29,250 | | | $ | 56,454 | |
Careers — International | | | 17,711 | | | | 7,413 | | | | 1,983 | | | | 782 | | | | 297 | | | | (11,269 | ) | | | (3,989 | ) | | | (5,576 | ) | | | 288 | | | | 10,475 | | | | (20,546 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers Proforma operating income(1) | | | 52,025 | | | | 10,513 | | | | 14,388 | | | | 10,301 | | | | 4,523 | | | | (11,760 | ) | | | 13,511 | | | | 15,168 | | | | 18,989 | | | | 39,725 | | | | 35,908 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Internet Advertising & Fees ProForma operating income (loss)(1) | | | 3,745 | | | | 4,003 | | | | 5,096 | | | | 6,506 | | | | 4,993 | | | | 2,145 | | | | 561 | | | | 1,937 | | | | 559 | | | | 20,598 | | | | 5,202 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Monster Proforma income(1) | | $ | 55,770 | | | $ | 14,516 | | | $ | 19,484 | | | $ | 16,807 | | | $ | 9,516 | | | $ | (9,615 | ) | | $ | 14,072 | | | $ | 17,105 | | | $ | 19,548 | | | $ | 60,323 | | | $ | 41,110 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate Proforma expenses(1) | | $ | (14,294 | ) | | $ | (14,288 | ) | | $ | (11,756 | ) | | $ | (12,913 | ) | | $ | (9,567 | ) | | $ | (14,528 | ) | | $ | (12,223 | ) | | $ | (11,554 | ) | | $ | (7,612 | ) | | $ | (48,524 | ) | | $ | (45,917 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Segment operating income (loss)(1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers — North America | | $ | 34,025 | | | $ | 828 | | | $ | 10,919 | | | $ | 6,057 | | | $ | 1,866 | | | $ | (3,772 | ) | | $ | 17,454 | | | $ | 18,773 | | | $ | 15,328 | | | $ | 19,670 | | | $ | 47,783 | |
Careers — International | | | 12,938 | | | | (671 | ) | | | (2,019 | ) | | | (2,181 | ) | | | (1,412 | ) | | | (13,412 | ) | | | (4,536 | ) | | | (5,882 | ) | | | 258 | | | | (6,283 | ) | | | (23,572 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers operating income (loss) | | | 46,963 | | | | 157 | | | | 8,900 | | | | 3,876 | | | | 454 | | | | (17,184 | ) | | | 12,918 | | | | 12,891 | | | | 15,586 | | | | 13,387 | | | | 24,211 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Internet Advertising & Fees operating income (loss) | | | 3,715 | | | | 3,557 | | | | 4,926 | | | | 5,091 | | | | 4,540 | | | | 1,236 | | | | 546 | | | | 1,880 | | | | 562 | | | | 18,114 | | | | 4,224 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Monster operating income (loss) | | $ | 50,678 | | | $ | 3,714 | | | $ | 13,826 | | | $ | 8,967 | | | $ | 4,994 | | | $ | (15,948 | ) | | $ | 13,464 | | | $ | 14,771 | | | $ | 16,148 | | | $ | 31,501 | | | $ | 28,435 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate expenses | | $ | (7,889 | ) | | $ | (18,508 | ) | | $ | (14,165 | ) | | $ | (6,015 | ) | | $ | (1,624 | ) | | $ | (18,926 | ) | | $ | (17,344 | ) | | $ | (20,159 | ) | | $ | (14,027 | ) | | $ | (40,312 | ) | | $ | (70,456 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Margin Analysis: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers — North America OIBDA margin | | | 32.7 | % | | | 10.3 | % | | | 21.7 | % | | | 17.8 | % | | | 14.3 | % | | | 5.8 | % | | | 27.7 | % | | | 27.7 | % | | | 23.2 | % | | | 15.8 | % | | | 21.4 | % |
Careers — North America Proforma operating margin | | | 25.4 | % | | | 2.6 | % | | | 12.2 | % | | | 10.0 | % | | | 4.6 | % | | | -0.5 | % | | | 18.1 | % | | | 19.0 | % | | | 15.0 | % | | | 7.2 | % | | | 13.2 | % |
Careers — North America operating margin | | | 25.2 | % | | | 0.7 | % | | | 10.7 | % | | | 6.4 | % | | | 2.1 | % | | | -3.9 | % | | | 18.0 | % | | | 17.5 | % | | | 12.7 | % | | | 4.8 | % | | | 11.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers — International OIBDA margin | | | 19.4 | % | | | 10.4 | % | | | 9.5 | % | | | 9.6 | % | | | 10.2 | % | | | -3.6 | % | | | 6.4 | % | | | 6.0 | % | | | 11.4 | % | | | 9.9 | % | | | 5.3 | % |
Careers — International Proforma operating margin | | | 14.2 | % | | | 7.1 | % | | | 2.2 | % | | | 0.9 | % | | | 0.3 | % | | | -13.2 | % | | | -4.6 | % | | | -6.4 | % | | | 0.3 | % | | | 2.8 | % | | | -5.7 | % |
Careers — International operating margin | | | 10.5 | % | | | -0.6 | % | | | -2.3 | % | | | -2.6 | % | | | -1.6 | % | | | -15.7 | % | | | -5.2 | % | | | -6.8 | % | | | 0.3 | % | | | -1.7 | % | | | -6.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Careers OIBDA margin | | | 26.4 | % | | | 10.3 | % | | | 16.0 | % | | | 13.9 | % | | | 12.3 | % | | | 1.4 | % | | | 17.6 | % | | | 18.0 | % | | | 17.8 | % | | | 13.0 | % | | | 14.0 | % |
Careers Proforma operating margin | | | 20.0 | % | | | 4.7 | % | | | 7.5 | % | | | 5.7 | % | | | 2.5 | % | | | -6.4 | % | | | 7.4 | % | | | 7.8 | % | | | 8.4 | % | | | 5.1 | % | | | 4.6 | % |
Careers operating margin | | | 18.2 | % | | | 0.1 | % | | | 4.7 | % | | | 2.2 | % | | | 0.3 | % | | | -9.4 | % | | | 7.0 | % | | | 6.6 | % | | | 7.0 | % | | | 1.7 | % | | | 3.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Internet Advertising & Fees OIBDA margin | | | 19.2 | % | | | 20.2 | % | | | 24.3 | % | | | 23.8 | % | | | 22.4 | % | | | 14.6 | % | | | 13.0 | % | | | 16.2 | % | | | 13.4 | % | | | 22.7 | % | | | 14.4 | % |
Internet Advertising & Fees Proforma operating margin | | | 11.4 | % | | | 12.7 | % | | | 15.6 | % | | | 18.8 | % | | | 14.8 | % | | | 6.6 | % | | | 1.8 | % | | | 5.5 | % | | | 1.7 | % | | | 15.5 | % | | | 4.0 | % |
Internet Advertising & Fees operating margin | | | 11.3 | % | | | 11.3 | % | | | 15.1 | % | | | 14.7 | % | | | 13.5 | % | | | 3.8 | % | | | 1.8 | % | | | 5.4 | % | | | 1.7 | % | | | 13.7 | % | | | 3.2 | % |
| | |
(1) | | - See notes to financial supplement for further explanation of non-GAAP measures. |
10
Monster Worldwide, Inc.
Statements of Operations
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Trended Quarterly Data | | | Full Year Data | |
Summary P&L Information | | Q4 2008 | | | Q1 2009 | | | Q2 2009 | | | Q3 2009 | | | Q4 2009 | | | Q1 2010 | | | Q2 2010 | | | Q3 2010 | | | Q4 2010 | | | 12M 2009 | | | 12M 2010 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Monster Careers | | | 88.7 | % | | | 87.6 | % | | | 85.4 | % | | | 83.9 | % | | | 84.2 | % | | | 84.8 | % | | | 85.5 | % | | | 84.7 | % | | | 87.3 | % | | | 85.4 | % | | | 85.7 | % |
Internet Advertising & Fees | | | 11.3 | % | | | 12.4 | % | | | 14.6 | % | | | 16.1 | % | | | 15.8 | % | | | 15.2 | % | | | 14.5 | % | | | 15.3 | % | | | 12.7 | % | | | 14.6 | % | | | 14.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | | | 42.4 | % | | | 44.0 | % | | | 46.4 | % | | | 47.9 | % | | | 49.5 | % | | | 54.9 | % | | | 48.4 | % | | | 46.2 | % | | | 45.3 | % | | | 46.8 | % | | | 48.5 | % |
Office and general | | | 15.2 | % | | | 18.0 | % | | | 19.2 | % | | | 19.8 | % | | | 14.8 | % | | | 21.2 | % | | | 19.2 | % | | | 20.4 | % | | | 16.5 | % | | | 18.0 | % | | | 19.2 | % |
Marketing and promotion | | | 18.1 | % | | | 29.0 | % | | | 20.2 | % | | | 21.3 | % | | | 21.2 | % | | | 27.7 | % | | | 21.8 | % | | | 22.6 | % | | | 25.2 | % | | | 23.2 | % | | | 24.3 | % |
Reversal of legal settlements, net | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | -3.2 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | -0.8 | % | | | 0.0 | % |
Restructuring and other special charges | | | 1.1 | % | | | 4.3 | % | | | 2.3 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 1.8 | % | | | 0.0 | % |
Depreciation expense | | | 5.1 | % | | | 5.4 | % | | | 6.5 | % | | | 7.1 | % | | | 7.3 | % | | | 6.7 | % | | | 6.4 | % | | | 6.1 | % | | | 5.6 | % | | | 6.5 | % | | | 6.2 | % |
Amortization of restricted stock units and awards | | | 2.4 | % | | | 4.0 | % | | | 4.4 | % | | | 4.6 | % | | | 4.4 | % | | | 4.7 | % | | | 5.0 | % | | | 5.9 | % | | | 4.9 | % | | | 4.3 | % | | | 5.1 | % |
Amortization of stock options | | | 0.1 | % | | | 0.1 | % | | | 0.0 | % | | | 0.1 | % | | | 0.1 | % | | | 0.1 | % | | | 0.1 | % | | | 0.1 | % | | | 0.1 | % | | | 0.1 | % | | | 0.1 | % |
Amortization of intangibles | | | 0.9 | % | | | 1.0 | % | | | 1.1 | % | | | 1.0 | % | | | 1.0 | % | | | 1.0 | % | | | 0.9 | % | | | 1.1 | % | | | 1.6 | % | | | 1.0 | % | | | 1.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating expenses | | | 85.3 | % | | | 105.8 | % | | | 100.2 | % | | | 98.6 | % | | | 98.4 | % | | | 116.2 | % | | | 101.8 | % | | | 102.4 | % | | | 99.2 | % | | | 101.0 | % | | | 104.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | | | 14.7 | % | | | -5.8 | % | | | -0.2 | % | | | 1.4 | % | | | 1.6 | % | | | -16.2 | % | | | -1.8 | % | | | -2.4 | % | | | 0.8 | % | | | -1.0 | % | | | -4.6 | % |
Interest and other, net | | | 0.5 | % | | | 0.5 | % | | | 0.0 | % | | | 0.0 | % | | | -3.3 | % | | | -0.3 | % | | | 0.4 | % | | | -0.6 | % | | | -0.3 | % | | | -0.6 | % | | | -0.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations, pre-tax | | | 15.3 | % | | | -5.3 | % | | | -0.1 | % | | | 1.4 | % | | | -1.7 | % | | | -16.5 | % | | | -1.4 | % | | | -2.9 | % | | | 0.5 | % | | | -1.6 | % | | | -4.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Provision for (benefit from) income taxes | | | 5.1 | % | | | -1.8 | % | | | 0.0 | % | | | -14.4 | % | | | -1.1 | % | | | -5.7 | % | | | -0.4 | % | | | -0.8 | % | | | 0.2 | % | | | -4.2 | % | | | -1.6 | % |
Loss in equity interests, net | | | -0.1 | % | | | -0.5 | % | | | -0.5 | % | | | -0.5 | % | | | -0.4 | % | | | -0.4 | % | | | -0.4 | % | | | -0.4 | % | | | -0.1 | % | | | -0.5 | % | | | -0.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | | | 10.0 | % | | | -4.1 | % | | | -0.6 | % | | | 15.3 | % | | | -1.0 | % | | | -11.2 | % | | | -1.4 | % | | | -2.5 | % | | | 0.2 | % | | | 2.1 | % | | | -3.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(Loss) income from disc. operations, net of tax | | | -0.2 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | | 9.8 | % | | | -4.1 | % | | | -0.6 | % | | | 15.3 | % | | | -1.0 | % | | | -11.2 | % | | | -1.4 | % | | | -2.5 | % | | | 0.2 | % | | | 2.1 | % | | | -3.5 | % |
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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 | | | Full Year Data | |
Summary P&L Information | | Q4 2008 | | | Q1 2009 | | | Q2 2009 | | | Q3 2009 | | | Q4 2009 | | | Q1 2010 | | | Q2 2010 | | | Q3 2010 | | | Q4 2010 | | | 12M 2009 | | | 12M 2010 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proforma revenue (1) | | $ | 292,885 | | | $ | 255,397 | | | $ | 223,782 | | | $ | 215,085 | | | $ | 213,149 | | | $ | 215,305 | | | $ | 214,917 | | | $ | 230,630 | | | $ | 258,334 | | | $ | 907,413 | | | $ | 919,186 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deferred revenue related to acquisitions | | | 2,213 | | | | 994 | | | | 725 | | | | 552 | | | | — | | | | — | | | | — | | | | 1,788 | | | | 3,265 | | | | 2,271 | | | | 5,053 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 290,672 | | | $ | 254,403 | | | $ | 223,057 | | | $ | 214,533 | | | $ | 213,149 | | | $ | 215,305 | | | $ | 214,917 | | | $ | 228,842 | | | $ | 255,069 | | | $ | 905,142 | | | $ | 914,133 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
OIBDA (1) | | $ | 68,454 | | | $ | 15,542 | | | $ | 27,579 | | | $ | 30,452 | | | $ | 30,791 | | | $ | (8,003 | ) | | $ | 22,689 | | | $ | 24,627 | | | $ | 32,953 | | | $ | 104,364 | | | $ | 72,266 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation expense | | | 14,761 | | | | 13,769 | | | | 14,479 | | | | 15,230 | | | | 15,639 | | | | 14,521 | | | | 13,782 | | | | 13,975 | | | | 14,204 | | | | 59,117 | | | | 56,482 | |
Amortization of restricted stock units and awards | | | 7,046 | | | | 10,149 | | | | 9,816 | | | | 9,924 | | | | 9,417 | | | | 10,124 | | | | 10,744 | | | | 13,398 | | | | 12,380 | | | | 39,306 | | | | 46,646 | |
Amortization of stock options | | | 178 | | | | 199 | | | | 104 | | | | 157 | | | | 155 | | | | 143 | | | | 133 | | | | 135 | | | | 134 | | | | 615 | | | | 545 | |
Restructuring non-cash write-offs | | | 924 | | | | 3,668 | | | | 1,053 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 4,721 | | | | — | |
Amortization of intangibles | | | 2,756 | | | | 2,551 | | | | 2,466 | | | | 2,189 | | | | 2,210 | | | | 2,083 | | | | 1,910 | | | | 2,507 | | | | 4,114 | | | | 9,416 | | | | 10,614 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | | $ | 42,789 | | | $ | (14,794 | ) | | $ | (339 | ) | | $ | 2,952 | | | $ | 3,370 | | | $ | (34,874 | ) | | $ | (3,880 | ) | | $ | (5,388 | ) | | $ | 2,121 | | | $ | (8,811 | ) | | $ | (42,021 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proforma operating income (loss) (1) | | $ | 41,476 | | | $ | 228 | | | $ | 7,728 | | | $ | 3,894 | | | $ | (51 | ) | | $ | (24,143 | ) | | $ | 1,849 | | | $ | 5,551 | | | $ | 11,936 | | | $ | 11,799 | | | $ | (4,807 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reversal of legal settlements, net | | | — | | | | — | | | | — | | | | (6,850 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | (6,850 | ) | | | — | |
Stock option investigation | | | (6,682 | ) | | | 3,020 | | | | 2,245 | | | | (474 | ) | | | (8,037 | ) | | | — | | | | — | | | | — | | | | — | | | | (3,246 | ) | | | — | |
Non-Gaap severance | | | — | | | | — | | | | — | | | | 5,907 | | | | 2,866 | | | | 6,360 | | | | 494 | | | | 546 | | | | 456 | | | | 8,773 | | | | 7,856 | |
Non-Gaap facilities | | | — | | | | — | | | | — | | | | 1,807 | | | | 1,750 | | | | — | | | | — | | | | — | | | | — | | | | 3,557 | | | | — | |
Non-Gaap Integration fees | | | — | | | | — | | | | — | | | | — | | | | — | | | | 4,371 | | | | 5,235 | | | | 8,605 | | | | 4,668 | | | | — | | | | 22,879 | |
Non-Gaap Integration fees — Salary | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 1,426 | | | | — | | | | 1,426 | |
Deferred revenue related to acquisitions | | | 2,213 | | | | 994 | | | | 725 | | | | 552 | | | | — | | | | — | | | | — | | | | 1,788 | | | | 3,265 | | | | 2,271 | | | | 5,053 | |
Restructuring program non-cash write-offs | | | 924 | | | | 3,668 | | | | 1,053 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 4,721 | | | | — | |
Restructuring expenses, less non-cash items | | | 2,232 | | | | 7,340 | | | | 4,044 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 11,384 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | | $ | 42,789 | | | $ | (14,794 | ) | | $ | (339 | ) | | $ | 2,952 | | | $ | 3,370 | | | $ | (34,874 | ) | | $ | (3,880 | ) | | $ | (5,388 | ) | | $ | 2,121 | | | $ | (8,811 | ) | | $ | (42,021 | ) |
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| | |
(1) | | - See notes to financial supplement for further explanation of non-GAAP measures. |
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