Exhibit 99.2
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FINANCIAL SUPPLEMENT
DECEMBER 31, 2007
We provide this supplement to assist investors in evaluating our Company’s financial and operating metrics. We suggest that the notes to this supplement are read in conjunction with the financial tables. The financial information included in this supplement contains certain non-GAAP financial measures. These measures should be considered in addition to results prepared in accordance with GAAP, but are not a substitute for, or superior to, GAAP results. The non-GAAP measures included in this supplement have been reconciled to the most comparable GAAP measure. The Company intends to update the financial supplement on a quarterly basis.
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![](https://capedge.com/proxy/8-K/0001104659-08-006151/g40771kc00i002.jpg)
Notes to Financial Supplement
Presentation
Stock Option Investigation
On June 12, 2006, we announced that a committee of independent directors of the Board of Directors (the “Special Committee”) assisted by independent legal counsel and outside accounting experts were conducting an independent investigation to review our historical stock option grant practices. On December 13, 2006, we restated our historical financial statements to record additional non-cash stock based compensation charges and the related income tax effects based on the findings of the Special Committee. We recorded these non-cash compensation charges as a component of “Corporate expenses” and did not allocate these non-cash costs to our reportable segments. No such amounts were recorded beyond the 2005 periods, as we accelerated the vesting of all unvested outstanding stock options as of December 31, 2005 to mitigate compensation expense we would have had to record upon the effectiveness of SFAS 123R. The restatement did not affect our statements of operations or segment results for the 2006 or 2007 periods.
Professional Fees
For the three months and year ended December 31, 2007, we recorded $1.4 million and $19.1 million, respectively, of professional fees as a direct result of the ongoing stock option investigation. In addition, approximately $13.6 million and $18.3 million of professional fees related to the stock option investigation were included in three months and year ended December 31, 2006, respectively. These costs primarily relate to professional fees and are a component of “office and general” and in 2006 $5.0 million relates to compensation for former employees for the value of stock options that expired during the period that the Company’s equity compensation plans were suspended, which is a component of “salary and related”. In addition, we have incurred costs related to litigation, the informal investigation by the SEC and the investigation by the United States Attorney for the Southern District of New York.
We expect to continue to incur significant professional fees related to the ongoing stock option investigation. While we cannot quantify or estimate the timing of these costs throughout 2008, they primarily relate to legal fees paid on behalf of former employees and former members of senior management, fees paid in defense of shareholder litigation and potential fines, damages or settlements.
Severance
Included in our operating results for the year ended December 31, 2007, is approximately $15.8 million of severance charges related to executive officers who departed the Company in the second quarter of 2007. Of the $15.8 million, approximately $12.8 million is non-cash and relates to the acceleration of equity awards. The severance is recorded as component of “salaries and related” and the acceleration of equity awards is recorded as a component of “amortization of restricted stock and RSU’s” in our Financial Supplement.
Restructuring Actions
On July 30, 2007, we announced a series of strategic restructuring actions that are intended to position us for sustainable long-term growth in the rapidly evolving global online recruitment advertising industry.
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The restructuring plan includes an anticipated reduction in the current workforce by approximately 800 associates, or 15% of our full-time staff, through 2008. The plan also includes 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 is intended to realign the structure to permit investment in key areas that will improve the customer experience and foster revenue growth and long-term operating margin expansion.
As a result of the restructuring initiatives, we expect to record a cumulative pre-tax charge within the range of $55 million to $70 million, beginning in the third quarter of 2007 and into 2008. The breakdown of the expected pre-tax cumulative charge is as follows:
Category | | Range | |
| | | |
Employee Severance | | $26 million – $33 million | |
Fixed Asset Write-Offs | | $6 million – $8 million | |
Accelerated Depreciation | | $8 million – $11 million | |
Consolidation of Office Facilities | | $6 million – $8 million | |
Other (contract termination costs, relocation costs and professional fees) | | $9 million – $10 million | |
For the three months and year ended December 31, 2007, we recorded $5.4 million and $16.6 million of expenses for the restructuring actions, respectively, including $14.1 million for employee severance related to approximately 360 associates and with approximately 100 additional voluntary terminations.
Security Breach
In August 2007, we announced a security breach related to unauthorized access to our resume database. We have taken measures to remediate the breach and assist any affected customers. For the three months and year ended December 31, 2007, we recorded $3.4 million and $9.0 million of expenses, respectively, for the remediation of the security breach. We expect to incur additional costs in 2008; however, the amount and the timing of such costs cannot be estimated.
Certain reclassifications of prior year amounts have been made for consistent presentation.
(1) Non-GAAP financial measures
Monster Worldwide, Inc. (the “Company”) has provided certain non-GAAP financial information as additional information for its operating results. These measures are not in accordance with, or an alternative for, generally accepted accounting principles (“GAAP”) and may be different from non-GAAP measures reported by other companies. The Company believes that its presentation of non-GAAP measures, provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations.
Non-GAAP operating expenses, operating income, operating margin, income from continuing operations and diluted earnings per share all exclude certain proforma adjustments including: ongoing costs associated with the stock option investigations, related litigation and potential fines or settlements (“Stock option investigation”); severance costs for former executive officers incurred in the second quarter of 2007 (“Executive commitments”); costs associated with the remediation of a recent database security breach (“Security Breach”); and the strategic restructuring actions initiated in the third quarter of 2007 (“Restructuring”). 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 and amortization of stock based compensation. We consider OIBDA to be an important indicator of our operational strength. This measure eliminates the effects of depreciation, amortization of intangible assets and amortization of stock based compensation from period to period, which we believe is useful to management and investors in evaluating our 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. As a result of the adoption SFAS 123(R) in 2006, free cash flow amounts in 2005 have been adjusted to exclude the income tax benefits on stock option exercises. Free cash flow is
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considered a liquidity measure and provides useful information about our 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 our cash position for the period and should not be considered a substitute for such a measure.
(2) 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 + Marketable securities) / Total shares outstanding
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Monster Worldwide, Inc.
Statements of Operations
(unaudited, in thousands, except per share amounts)
| | Trended Quarterly Data | | Year to Date Data | |
| | | | | | | | | | | | | | | | | | | | | | | |
Summary P&L Information | | Q4 2005 | | Q1 2006 | | Q2 2006 | | Q3 2006 | | Q4 2006 | | Q1 2007 | | Q2 2007 | | Q3 2007 | | Q4 2007 | | 12M 2006 | | 12M 2007 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Monster Careers | | $ | 192,982 | | $ | 224,589 | | $ | 237,190 | | $ | 244,292 | | $ | 258,260 | | $ | 290,223 | | $ | 291,326 | | $ | 296,996 | | $ | 316,877 | | $ | 964,331 | | $ | 1,195,422 | |
Internet Advertising & Fees | | 30,830 | | 32,447 | | 37,979 | | 41,563 | | 40,356 | | 38,805 | | 39,823 | | 40,148 | | 37,111 | | 152,345 | | 155,887 | |
Revenue | | 223,812 | | 257,036 | | 275,169 | | 285,855 | | 298,616 | | 329,028 | | 331,149 | | 337,144 | | 353,988 | | 1,116,676 | | 1,351,309 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Salary and related | | 85,819 | | 89,524 | | 95,439 | | 103,895 | | 112,172 | | 117,985 | | 129,037 | | 125,275 | | 129,100 | | 401,030 | | 501,397 | |
Office and general | | 31,405 | | 36,973 | | 32,672 | | 42,025 | | 50,007 | | 60,436 | | 53,033 | | 58,754 | | 58,062 | | 161,677 | | 230,285 | |
Marketing and promotion | | 53,633 | | 65,799 | | 73,212 | | 68,077 | | 66,418 | | 78,069 | | 78,045 | | 76,348 | | 80,697 | | 273,506 | | 313,159 | |
Restructuring and other special charges | | — | | — | | — | | — | | — | | — | | — | | 11,155 | | 5,442 | | — | | 16,597 | |
Depreciation expense | | 6,292 | | 7,097 | | 8,586 | | 7,323 | | 7,895 | | 8,285 | | 9,827 | | 10,886 | | 11,068 | | 30,901 | | 40,066 | |
Amortization of restricted stock and RSU Plan | | 693 | | 2,029 | | 3,423 | | 2,943 | | 2,424 | | 4,176 | | 17,069 | | 2,871 | | 3,623 | | 10,819 | | 27,739 | |
Non-cash stock option expense | | 425 | | — | | — | | — | | — | | 186 | | 47 | | 104 | | 105 | | — | | 442 | |
Amortization of intangibles | | 2,832 | | 2,675 | | 2,569 | | 1,765 | | 1,870 | | 1,696 | | 1,716 | | 1,739 | | 1,760 | | 8,879 | | 6,911 | |
Operating expenses | | 181,099 | | 204,097 | | 215,901 | | 226,028 | | 240,786 | | 270,833 | | 288,774 | | 287,132 | | 289,857 | | 886,812 | | 1,136,596 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | 42,713 | | 52,939 | | 59,268 | | 59,827 | | 57,830 | | 58,195 | | 42,375 | | 50,012 | | 64,131 | | 229,864 | | 214,713 | |
Interest and other, net(1) | | 3,804 | | 3,130 | | 3,940 | | 5,012 | | 6,398 | | 5,304 | | 6,912 | | 6,288 | | 6,840 | | 18,480 | | 25,344 | |
Income from cont. operations, pre-tax | | 46,517 | | 56,069 | | 63,208 | | 64,839 | | 64,228 | | 63,499 | | 49,287 | | 56,300 | | 70,971 | | 248,344 | | 240,057 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Income taxes | | 16,028 | | 20,411 | | 22,077 | | 22,692 | | 22,481 | | 22,352 | | 17,406 | | 19,998 | | 24,843 | | 87,661 | | 84,599 | |
Losses in equity interests, net | | (2,180 | ) | (1,241 | ) | (2,284 | ) | (2,054 | ) | (1,517 | ) | (1,420 | ) | (2,966 | ) | (3,074 | ) | (838 | ) | (7,096 | ) | (8,298 | ) |
Income from continuing operations | | 28,309 | | 34,417 | | 38,847 | | 40,093 | | 40,230 | | 39,727 | | 28,915 | | 33,228 | | 45,290 | | 153,587 | | 147,160 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from disc. operations, net of tax(2) | | 7,840 | | 7,845 | | 770 | | (123,910 | ) | (1,155 | ) | (245 | ) | (299 | ) | 73 | | (290 | ) | (116,450 | ) | (761 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 36,149 | | $ | 42,262 | | $ | 39,617 | | $ | (83,817 | ) | $ | 39,075 | | $ | 39,482 | | $ | 28,616 | | $ | 33,301 | | $ | 45,000 | | $ | 37,137 | | $ | 146,399 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 0.23 | | $ | 0.27 | | $ | 0.30 | | $ | 0.31 | | $ | 0.31 | | $ | 0.31 | | $ | 0.22 | | $ | 0.26 | | $ | 0.36 | | $ | 1.20 | | $ | 1.14 | |
Net income (loss) | | $ | 0.29 | | $ | 0.33 | | $ | 0.31 | | $ | (0.65 | ) | $ | 0.30 | | $ | 0.30 | | $ | 0.22 | | $ | 0.26 | | $ | 0.36 | | $ | 0.29 | | $ | 1.14 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Diluted earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 0.22 | | $ | 0.26 | | $ | 0.29 | | $ | 0.31 | | $ | 0.31 | | $ | 0.30 | | $ | 0.22 | | $ | 0.25 | | $ | 0.36 | | $ | 1.17 | | $ | 1.13 | |
Net income (loss) | | $ | 0.28 | | $ | 0.32 | | $ | 0.30 | | $ | (0.64 | ) | $ | 0.30 | | $ | 0.30 | | $ | 0.21 | | $ | 0.25 | | $ | 0.36 | | $ | 0.28 | | $ | 1.12 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Weighted avg. shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | |
Basic shares | | 124,348 | | 126,753 | | 128,551 | | 128,484 | | 128,489 | | 129,653 | | 130,542 | | 129,499 | | 125,504 | | 128,077 | | 128,785 | |
Diluted shares | | 127,418 | | 130,619 | | 132,009 | | 130,827 | | 131,209 | | 132,464 | | 133,121 | | 130,757 | | 126,704 | | 131,247 | | 130,755 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Global employees (ones) | | 3,537 | | 3,785 | | 4,214 | | 4,632 | | 4,854 | | 5,321 | | 5,476 | | 5,149 | | 5,146 | | 4,854 | | 5,146 | |
Annualized revenue per average employee | | $ | 260.1 | | $ | 280.8 | | $ | 275.2 | | $ | 258.5 | | $ | 251.8 | | $ | 258.7 | | $ | 245.4 | | $ | 253.8 | | $ | 275.1 | | $ | 251.8 | | $ | 275.1 | |
(1) - Interest and other, net includes a $2.1 million gain from the sale of a long-term investment and a $1.3 million gain related to an early repayment of a note associated with a disposed company in the fourth quarters of 2005 and 2006, respectively. |
(2) - Loss from discontinued operations, net of tax in the third quarter of 2006 includes the write-off of $133.0 million of goodwill related to our former TMP Worldwide Advertising & Communications business in North America. |
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Monster Worldwide, Inc. Trailing Twelve Months Statistics - Statements of Operations (unaudited, in thousands, except per share amounts) | |
| | | | | | | | | | | | | | | | | | | |
Summary P&L Information | | Q4 2005 | | Q1 2006 | | Q2 2006 | | Q3 2006 | | Q4 2006 | | Q1 2007 | | Q2 2007 | | Q3 2007 | | Q4 2007 | |
| | | | | | | | | | | | | | | | | | | |
Monster Careers | | $ | 708,718 | | $ | 768,534 | | $ | 833,692 | | $ | 899,053 | | $ | 964,331 | | $ | 1,029,965 | | $ | 1,084,101 | | $ | 1,136,805 | | $ | 1,195,422 | |
Internet Advertising & Fees | | 109,553 | | 117,239 | | 129,159 | | 142,819 | | 152,345 | | 158,703 | | 160,547 | | 159,132 | | 155,887 | |
Revenue | | 818,271 | | 885,773 | | 962,851 | | 1,041,872 | | 1,116,676 | | 1,188,668 | | 1,244,648 | | 1,295,937 | | 1,351,309 | |
| | | | | | | | | | | | | | | | | | | |
Salary and related | | 316,431 | | 334,673 | | 352,602 | | 374,677 | | 401,030 | | 429,491 | | 463,089 | | 484,469 | | 501,397 | |
Office and general | | 118,444 | | 126,344 | | 129,881 | | 143,075 | | 161,677 | | 185,140 | | 205,501 | | 222,230 | | 230,285 | |
Marketing and promotion | | 194,721 | | 212,568 | | 238,718 | | 260,721 | | 273,506 | | 285,776 | | 290,609 | | 298,880 | | 313,159 | |
Restructuring and other special charges | | — | | — | | — | | — | | — | | — | | — | | 11,155 | | 16,597 | |
Depreciation expense | | 23,838 | | 25,176 | | 27,942 | | 29,298 | | 30,901 | | 32,089 | | 33,330 | | 36,893 | | 40,066 | |
Amortization of restricted stock and RSU Plan | | 2,735 | | 3,796 | | 6,685 | | 9,088 | | 10,819 | | 12,966 | | 26,612 | | 26,540 | | 27,739 | |
Non-cash stock option expense | | 11,885 | | 9,164 | | 7,026 | | 425 | | — | | 186 | | 233 | | 337 | | 442 | |
Amortization of intangibles | | 9,585 | | 9,933 | | 10,255 | | 9,841 | | 8,879 | | 7,900 | | 7,047 | | 7,021 | | 6,911 | |
Operating expenses | | 677,639 | | 721,654 | | 773,109 | | 827,125 | | 886,812 | | 953,548 | | 1,026,421 | | 1,087,525 | | 1,136,596 | |
| | | | | | | | | | | | | | | | | | | |
Operating income | | 140,632 | | 164,119 | | 189,742 | | 214,747 | | 229,864 | | 235,120 | | 218,227 | | 208,412 | | 214,713 | |
Interest and other, net | | 4,830 | | 8,351 | | 11,558 | | 15,886 | | 18,480 | | 20,654 | | 23,626 | | 24,902 | | 25,344 | |
Income from cont. operations, pre-tax | | 145,462 | | 172,470 | | 201,300 | | 230,633 | | 248,344 | | 255,774 | | 241,853 | | 233,314 | | 240,057 | |
| | | | | | | | | | | | | | | | | | | |
Income taxes | | 51,641 | | 61,600 | | 71,531 | | 81,208 | | 87,661 | | 89,602 | | 84,931 | | 82,237 | | 84,599 | |
Losses in equity interests, net | | (3,397 | ) | (4,429 | ) | (6,346 | ) | (7,759 | ) | (7,096 | ) | (7,275 | ) | (7,957 | ) | (8,977 | ) | (8,298 | ) |
Income from continuing operations | | 90,424 | | 106,441 | | 123,423 | | 141,666 | | 153,587 | | 158,897 | | 148,965 | | 142,100 | | 147,160 | |
| | | | | | | | | | | | | | | | | | | |
Income (loss) from disc. operations, net of tax | | 7,770 | | 16,053 | | 20,671 | | (107,455 | ) | (116,450 | ) | (124,540 | ) | (125,609 | ) | (1,626 | ) | (761 | ) |
| | | | | | | | | | | | | | | | | | | |
Net income | | $ | 98,194 | | $ | 122,494 | | $ | 144,094 | | $ | 34,211 | | $ | 37,137 | | $ | 34,357 | | $ | 23,356 | | $ | 140,474 | | $ | 146,399 | |
| | | | | | | | | | | | | | | | | | | |
Basic earnings per share: | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 0.74 | | $ | 0.86 | | $ | 0.98 | | $ | 1.12 | | $ | 1.20 | | $ | 1.23 | | $ | 1.15 | | $ | 1.10 | | $ | 1.14 | |
Net income | | $ | 0.80 | | $ | 0.99 | | $ | 1.15 | | $ | 0.27 | | $ | 0.29 | | $ | 0.27 | | $ | 0.18 | | $ | 1.08 | | $ | 1.14 | |
| | | | | | | | | | | | | | | | | | | |
Diluted earnings per share: | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 0.72 | | $ | 0.84 | | $ | 0.96 | | $ | 1.09 | | $ | 1.17 | | $ | 1.21 | | $ | 1.13 | | $ | 1.08 | | $ | 1.13 | |
Net income | | $ | 0.79 | | $ | 0.97 | | $ | 1.12 | | $ | 0.26 | | $ | 0.28 | | $ | 0.26 | | $ | 0.18 | | $ | 1.07 | | $ | 1.12 | |
| | | | | | | | | | | | | | | | | | | |
Weighted avg. shares outstanding: | | | | | | | | | | | | | | | | | | | |
Basic shares | | 122,055 | | 123,570 | | 125,445 | | 127,034 | | 128,077 | | 128,794 | | 129,292 | | 129,546 | | 128,785 | |
Diluted shares | | 125,038 | | 126,494 | | 128,701 | | 130,218 | | 131,247 | | 131,627 | | 131,905 | | 131,888 | | 130,755 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Monster Worldwide, Inc.
Statements of Cash Flows
(unaudited, in thousands, except per share amounts)
| | Trended Quarterly Data | | Year to Date Data | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | Q4 2005 | | Q1 2006 | | Q2 2006 | | Q3 2006 | | Q4 2006 | | Q1 2007 | | Q2 2007 | | Q3 2007 | | Q4 2007 | | 12M 2006 | | 12M 2007 | |
Cash flows provided by operating activities: | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 36,149 | | $ | 42,262 | | $ | 39,617 | | $ | (83,817 | ) | $ | 39,075 | | $ | 39,482 | | $ | 28,616 | | $ | 33,301 | | $ | 45,000 | | $ | 37,137 | | $ | 146,399 | |
Adjustments to reconcile net income to cash provided by operating activities: | | | | | | | | | | | | | | | | | | | | | | | |
(Income) loss from discontinued operations, net of tax | | (7,840 | ) | (7,845 | ) | (770 | ) | 123,910 | | 1,155 | | 245 | | 299 | | (73 | ) | 290 | | 116,450 | | 761 | |
Depreciation and amortization | | 9,124 | | 9,772 | | 11,155 | | 9,088 | | 9,765 | | 9,981 | | 11,543 | | 12,625 | | 12,828 | | 39,780 | | 46,977 | |
Provision for doubtful accounts | | 1,807 | | 2,824 | | 1,840 | | 1,841 | | 2,550 | | 2,483 | | 2,630 | | 3,340 | | 4,453 | | 9,055 | | 12,906 | |
Non cash compensation | | 640 | | 2,029 | | 3,423 | | 2,943 | | 2,424 | | 4,362 | | 17,116 | | 2,975 | | 3,728 | | 10,819 | | 28,181 | |
Common stock issued for matching contribution to 401(k) plan and other | | 973 | | 996 | | 858 | | — | | — | | — | | — | | — | | — | | 1,854 | | — | |
Deferred income taxes | | 9,762 | | 6,736 | | 2,593 | | (815 | ) | 2,267 | | 2,100 | | (7,605 | ) | 2,808 | | (2,762 | ) | 10,781 | | (5,459 | ) |
Loss (gain) on disposal of assets | | — | | — | | — | | — | | — | | — | | (572 | ) | (2 | ) | 3 | | — | | (571 | ) |
Loss in equity interests and other, net | | 2,641 | | 1,235 | | 2,284 | | 2,056 | | 1,521 | | 1,420 | | 2,966 | | 3,074 | | 838 | | 7,096 | | 8,298 | |
Changes in assets and liabilities, net of business combinations: | | | | | | | | | | | | | | | | | | | | | | | |
Accounts receivable | | (75,510 | ) | (3,062 | ) | (21,388 | ) | (24,072 | ) | (122,790 | ) | 25,170 | | (4,804 | ) | 13,699 | | (101,843 | ) | (171,312 | ) | (67,778 | ) |
Prepaid and other | | (8,617 | ) | (1,492 | ) | (8,248 | ) | (14,542 | ) | 2,465 | | (2 | ) | (4,202 | ) | (8,007 | ) | (12,766 | ) | (21,817 | ) | (24,977 | ) |
Deferred revenue | | 79,779 | | 15,900 | | 5,544 | | (2,328 | ) | 97,440 | | 5,691 | | 2,360 | | (17,515 | ) | 89,650 | | 116,556 | | 80,186 | |
Accounts payable, accrued expenses and other liabilities | | (6,443 | ) | 8,377 | | 24,478 | | 48,418 | | 11,322 | | (8,950 | ) | 7,163 | | 26,536 | | 27,091 | | 92,595 | | 51,840 | |
Net cash provided by (used for) operating activities of discontinued operations | | 6,304 | | 4,326 | | 1,342 | | 16,168 | | (2,635 | ) | (2,983 | ) | (2,349 | ) | 74 | | (2,326 | ) | 19,201 | | (7,584 | ) |
Total adjustments | | 12,620 | | 39,796 | | 23,111 | | 162,667 | | 5,484 | | 39,517 | | 24,545 | | 39,534 | | 19,184 | | 231,058 | | 122,780 | |
Net cash provided by operating activities | | 48,769 | | 82,058 | | 62,728 | | 78,850 | | 44,559 | | 78,999 | | 53,161 | | 72,835 | | 64,184 | | 268,195 | | 269,179 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Cash flows provided by (used for) investing activities: | | | | | | | | | | | | | | | | | | | | | | | |
Capital expenditures | | (14,983 | ) | (9,416 | ) | (16,127 | ) | (12,825 | ) | (17,238 | ) | (21,612 | ) | (15,602 | ) | (10,601 | ) | (16,240 | ) | (55,606 | ) | (64,055 | ) |
Purchase of marketable securities | | (118,461 | ) | (334,990 | ) | (608,773 | ) | (404,703 | ) | (373,959 | ) | (365,031 | ) | (317,555 | ) | (327,250 | ) | (415,025 | ) | (1,722,425 | ) | (1,424,861 | ) |
Sale and maturities of marketable securities | | — | | 238,001 | | 406,537 | | 321,390 | | 342,351 | | 311,662 | | 277,903 | | 446,418 | | 478,068 | | 1,308,279 | | 1,514,051 | |
Payments for acquisitions and intangible assets, net of cash acquired | | (96,598 | ) | (1,450 | ) | (16,832 | ) | (631 | ) | (688 | ) | (1,664 | ) | (142 | ) | (133 | ) | (610 | ) | (19,601 | ) | (2,549 | ) |
Investment in unconsolidated affiliate | | — | | (19,936 | ) | — | | — | | — | | — | | — | | — | | — | | (19,936 | ) | — | |
Sale of long-term investment | | 2,713 | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Net proceeds from sale of business | | 1,000 | | — | | 32,950 | | 36,205 | | — | | — | | — | | — | | — | | 69,155 | | — | |
Cash funded to equity investee | | — | | — | | (4,800 | ) | (2,400 | ) | (2,800 | ) | (2,500 | ) | (1,600 | ) | (5,900 | ) | — | | (10,000 | ) | (10,000 | ) |
Net cash used for investing activities of discontinued operations | | (727 | ) | (2,469 | ) | — | | (455 | ) | — | | — | | — | | — | | — | | (2,924 | ) | — | |
Net cash provided by (used for) investing activities | | (227,056 | ) | (130,260 | ) | (207,045 | ) | (63,419 | ) | (52,334 | ) | (79,145 | ) | (56,996 | ) | 102,534 | | 46,193 | | (453,058 | ) | 12,586 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Cash flows provided by financing activities: | | | | | | | | | | | | | | | | | | | | | | | |
Net borrowings (payments) under capital lease obligations | | 323 | | (276 | ) | (87 | ) | (130 | ) | 322 | | — | | — | | (58 | ) | (42 | ) | (171 | ) | (100 | ) |
Payments on acquisition debt | | — | | (22,205 | ) | (7,480 | ) | — | | 440 | | (16,310 | ) | (5,552 | ) | — | | (1,500 | ) | (29,245 | ) | (23,362 | ) |
Proceeds from the exercise of employee stock options | | 57,317 | | 59,594 | | 31,571 | | 60 | | 1,038 | | 43,395 | | 10,006 | | 651 | | 838 | | 92,263 | | 54,890 | |
Excess tax benefits from stock option exercises | | 12,180 | | 11,275 | | 6,049 | | 16 | | 632 | | 6,486 | | 5,857 | | 1,611 | | (155 | ) | 17,972 | | 13,799 | |
Repurchase of common stock | | (7,906 | ) | (8,537 | ) | (5,879 | ) | — | | (318 | ) | (3,326 | ) | (6,716 | ) | (154,692 | ) | (97,761 | ) | (14,734 | ) | (262,495 | ) |
Structured stock repurchase | | — | | (22,758 | ) | — | | — | | — | | — | | — | | — | | — | | (22,758 | ) | — | |
Net cash provided by (used for) financing activities | | 61,914 | | 17,093 | | 24,174 | | (54 | ) | 2,114 | | 30,245 | | 3,595 | | (152,488 | ) | (98,620 | ) | 43,327 | | (217,268 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Effects of exchange rates on cash | | (739 | ) | 547 | | 1,167 | | 352 | | 1,553 | | 963 | | 1,037 | | 3,795 | | 772 | | 3,619 | | 6,567 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | | (117,112 | ) | (30,562 | ) | (118,976 | ) | 15,729 | | (4,108 | ) | 31,062 | | 797 | | 26,676 | | 12,529 | | (137,917 | ) | 71,064 | |
Cash and cash equivalents, beginning of period | | 313,709 | | 196,597 | | 166,035 | | 47,059 | | 62,788 | | 58,680 | | 89,742 | | 90,539 | | 117,215 | | 196,597 | | 58,680 | |
Cash and cash equivalents, end of period | | $ | 196,597 | | $ | 166,035 | | $ | 47,059 | | $ | 62,788 | | $ | 58,680 | | $ | 89,742 | | $ | 90,539 | | $ | 117,215 | | $ | 129,744 | | $ | 58,680 | | $ | 129,744 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Non - GAAP Free cash flow(1): | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by operating activities | | $ | 48,769 | | $ | 82,058 | | $ | 62,728 | | $ | 78,850 | | $ | 44,559 | | $ | 78,999 | | $ | 53,161 | | $ | 72,835 | | $ | 64,184 | | $ | 268,195 | | $ | 269,179 | |
Less: Capital expenditures | | (14,983 | ) | (9,416 | ) | (16,127 | ) | (12,825 | ) | (17,238 | ) | (21,612 | ) | (15,602 | ) | (10,601 | ) | (16,240 | ) | (55,606 | ) | (64,055 | ) |
Free cash flow | | $ | 33,786 | | $ | 72,642 | | $ | 46,601 | | $ | 66,025 | | $ | 27,321 | | $ | 57,387 | | $ | 37,559 | | $ | 62,234 | | $ | 47,944 | | $ | 212,589 | | $ | 205,124 | |
(1) - See notes to financial supplement for further explanation of non-GAAP measures.
7
Monster Worldwide, Inc.
Consolidated Condensed Balance Sheets
(unaudited, in thousands, except selected financial ratios)
| | Trended Quarterly Data | |
ASSETS | | | | | | | | | | | | | | | | | | | |
| | Q4 2005 | | Q1 2006 | | Q2 2006 | | Q3 2006 | | Q4 2006 | | Q1 2007 | | Q2 2007 | | Q3 2007 | | Q4 2007 | |
Current assets: | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 196,597 | | $ | 166,035 | | $ | 47,059 | | $ | 62,788 | | $ | 58,680 | | $ | 89,742 | | $ | 90,539 | | $ | 117,215 | | $ | 129,744 | |
Available-for-sale securities | | 123,747 | | 221,019 | | 422,972 | | 506,285 | | 537,893 | | 591,262 | | 630,914 | | 511,746 | | 448,703 | |
Accounts receivable, net | | 258,848 | | 259,086 | | 278,870 | | 324,507 | | 444,747 | | 417,329 | | 419,033 | | 401,994 | | 499,854 | |
Prepaid and other | | 54,651 | | 58,242 | | 63,565 | | 77,937 | | 82,488 | | 89,650 | | 100,233 | | 101,950 | | 106,664 | |
Current assets of discontinued operations | | 139,216 | | 129,844 | | 90,864 | | — | | — | | — | | — | | — | | — | |
Total current assets | | 773,059 | | 834,226 | | 903,330 | | 971,517 | | 1,123,808 | | 1,187,983 | | 1,240,719 | | 1,132,905 | | 1,184,965 | |
| | | | | | | | | | | | | | | | | | | |
Property and equipment, net | | 80,977 | | 83,302 | | 89,243 | | 94,150 | | 102,402 | | 115,729 | | 122,077 | | 121,795 | | 126,962 | |
Goodwill | | 521,717 | | 531,497 | | 567,677 | | 570,272 | | 589,041 | | 590,553 | | 595,850 | | 614,437 | | 615,334 | |
Intangibles, net | | 55,602 | | 53,509 | | 54,569 | | 53,067 | | 51,695 | | 50,262 | | 48,781 | | 48,272 | | 46,516 | |
Investment in unconsolidated affiliates | | 46,758 | | 65,480 | | 63,196 | | 61,142 | | 59,625 | | 57,748 | | 54,782 | | 51,708 | | 50,871 | |
Other assets | | 29,755 | | 30,363 | | 46,018 | | 49,156 | | 43,232 | | 55,540 | | 48,360 | | 52,513 | | 53,162 | |
Long-term assets of discontinued operations | | 170,847 | | 171,191 | | 139,266 | | — | | — | | — | | — | | — | | — | |
Total assets | | $ | 1,678,715 | | $ | 1,769,568 | | $ | 1,863,299 | | $ | 1,799,304 | | $ | 1,969,803 | | $ | 2,057,815 | | $ | 2,110,569 | | $ | 2,021,630 | | $ | 2,077,810 | |
| | | | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | |
Accounts payable, accrued expenses and other | | $ | 249,464 | | $ | 255,812 | | $ | 288,031 | | $ | 350,250 | | $ | 358,850 | | $ | 279,032 | | $ | 278,553 | | $ | 298,023 | | $ | 304,145 | |
Deferred revenue | | 327,429 | | 343,329 | | 349,034 | | 346,706 | | 444,145 | | 449,836 | | 452,196 | | 434,682 | | 524,331 | |
Current portion of long-term debt | | 31,378 | | 21,789 | | 18,635 | | 18,507 | | 23,249 | | 7,074 | | 1,660 | | 1,684 | | 184 | |
Current liabilities of discontinued operations | | 97,674 | | 88,855 | | 46,028 | | — | | — | | — | | — | | — | | — | |
Total current liabilities | | 705,945 | | 709,785 | | 701,728 | | 715,463 | | 826,244 | | 735,942 | | 732,409 | | 734,389 | | 828,660 | |
| | | | | | | | | | | | | | | | | | | |
Long-term debt, less current portion | | 15,678 | | 3,093 | | 2,185 | | 2,152 | | 415 | | 395 | | 312 | | 261 | | 231 | |
Long-term income taxes payable | | — | | — | | — | | — | | — | | 84,480 | | 89,910 | | 94,418 | | 111,108 | |
Other liabilities | | 23,615 | | 30,481 | | 34,812 | | 34,454 | | 33,459 | | 39,496 | | 30,169 | | 29,799 | | 21,310 | |
Long-term liabilities of discontinued operations | | 137 | | — | | — | | — | | — | | — | | — | | — | | — | |
Total liabilities | | 745,375 | | 743,359 | | 738,725 | | 752,069 | | 860,118 | | 860,313 | | 852,800 | | 858,867 | | 961,309 | |
| | | | | | | | | | | | | | | | | | | |
Common stock and class B common stock | | 127 | | 129 | | 131 | | 131 | | 131 | | 131 | | 131 | | 131 | | 133 | |
Additional paid-in capital | | 1,548,936 | | 1,592,077 | | 1,629,378 | | 1,632,246 | | 1,636,023 | | 1,687,407 | | 1,713,670 | | 1,562,646 | | 1,468,808 | |
Accumulated other comprehensive income | | 35,515 | | 42,979 | | 64,424 | | 68,034 | | 87,632 | | 87,708 | | 93,096 | | 115,813 | | 118,387 | |
Retained deficit | | (651,238 | ) | (608,976 | ) | (569,359 | ) | (653,176 | ) | (614,101 | ) | (577,744 | ) | (549,128 | ) | (515,827 | ) | (470,827 | ) |
Total stockholders’ equity | | 933,340 | | 1,026,209 | | 1,124,574 | | 1,047,235 | | 1,109,685 | | 1,197,502 | | 1,257,769 | | 1,162,763 | | 1,116,501 | |
| | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 1,678,715 | | $ | 1,769,568 | | $ | 1,863,299 | | $ | 1,799,304 | | $ | 1,969,803 | | $ | 2,057,815 | | $ | 2,110,569 | | $ | 2,021,630 | | $ | 2,077,810 | |
| | | | | | | | | | | | | | | | | | | |
Selected Financial Ratios(2) | | | | | | | | | | | | | | | | | | | |
– Annualized return on equity | | 16.3 | % | 17.3 | % | 14.7 | % | -30.9 | % | 14.5 | % | 13.7 | % | 9.3 | % | 11.0 | % | 15.8 | % |
– Book value per share | | $ | 7.44 | | $ | 8.01 | | $ | 8.75 | | $ | 8.15 | | $ | 8.63 | | $ | 9.19 | | $ | 9.60 | | $ | 9.19 | | $ | 9.02 | |
– Cash and marketable securities per share | | $ | 2.55 | | $ | 3.02 | | $ | 3.66 | | $ | 4.43 | | $ | 4.64 | | $ | 5.23 | | $ | 5.51 | | $ | 4.97 | | $ | 4.67 | |
(2) – See notes to financial supplement for definitions and calculations of selected financial ratios.
8
Monster Worldwide, Inc.
Segment Information and Margin Analysis - Non-GAAP
(unaudited, in thousands)
| | Trended Quarterly Data | | Year to Date Data | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | Q4 2005 | | Q1 2006 | | Q2 2006 | | Q3 2006 | | Q4 2006 | | Q1 2007 | | Q2 2007 | | Q3 2007 | | Q4 2007 | | 12M 2006 | | 12M 2007 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Segment OIBDA(1): | | | | | | | | | | | | | | | | | | | | | | | |
Monster Careers - North America | | $ | 49,974 | | $ | 58,652 | | $ | 61,337 | | $ | 62,114 | | $ | 64,984 | | $ | 71,150 | | $ | 60,845 | | $ | 57,522 | | $ | 59,147 | | $ | 247,087 | | $ | 248,664 | |
Monster Careers - International | | 3,580 | | 4,724 | | 7,064 | | 8,248 | | 13,001 | | 12,594 | | 17,362 | | 12,896 | | 29,980 | | 33,037 | | 72,832 | |
Monster Careers OIBDA(1) | | 53,554 | | 63,376 | | 68,401 | | 70,362 | | 77,985 | | 83,744 | | 78,207 | | 70,418 | | 89,127 | | 280,124 | | 321,496 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Internet Advertising & Fees OIBDA(1) | | 11,915 | | 11,608 | | 14,235 | | 13,504 | | 12,849 | | 6,439 | | 7,750 | | 5,111 | | 2,592 | | 52,196 | | 21,892 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total Monster OIBDA(1) | | $ | 65,469 | | $ | 74,984 | | $ | 82,636 | | $ | 83,866 | | $ | 90,834 | | $ | 90,183 | | $ | 85,957 | | $ | 75,529 | | $ | 91,719 | | $ | 332,320 | | $ | 343,388 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Corporate expenses before D&A(1) | | $ | (12,514 | ) | $ | (10,244 | ) | $ | (8,790 | ) | $ | (12,008 | ) | $ | (20,815 | ) | $ | (17,645 | ) | $ | (14,923 | ) | $ | (9,917 | ) | $ | (11,032 | ) | $ | (51,857 | ) | $ | (53,517 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Proforma operating income(1): | | | | | | | | | | | | | | | | | | | | | | | |
Monster Careers - North America | | $ | 45,769 | | $ | 54,559 | | $ | 55,597 | | $ | 57,193 | | $ | 59,853 | | $ | 65,878 | | $ | 55,029 | | $ | 59,430 | | $ | 56,482 | | $ | 227,202 | | $ | 236,819 | |
Monster Careers - International | | 285 | | 765 | | 2,003 | | 4,997 | | 9,658 | | 7,961 | | 12,055 | | 13,589 | | 28,699 | | 17,423 | | 62,304 | |
Monster Careers Proforma operating income(1) | | 46,054 | | 55,324 | | 57,600 | | 62,190 | | 69,511 | | 73,839 | | 67,084 | | 73,019 | | 85,181 | | 244,625 | | 299,123 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Internet Advertising & Fees ProForma operating income(1) | | 10,656 | | 9,486 | | 12,563 | | 11,843 | | 11,170 | | 4,304 | | 5,211 | | 4,419 | | 1,350 | | 45,062 | | 15,284 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total Monster Proforma income(1) | | $ | 56,710 | | $ | 64,810 | | $ | 70,163 | | $ | 74,033 | | $ | 80,681 | | $ | 78,143 | | $ | 72,295 | | $ | 77,438 | | $ | 86,531 | | $ | 289,687 | | $ | 314,407 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Corporate Proforma expenses(1) | | $ | (13,997 | ) | $ | (11,871 | ) | $ | (10,270 | ) | $ | (10,118 | ) | $ | (9,285 | ) | $ | (10,121 | ) | $ | (8,778 | ) | $ | (8,046 | ) | $ | (12,177 | ) | $ | (41,544 | ) | $ | (39,122 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Segment operating income:(1) | | | | | | | | | | | | | | | | | | | | | | | |
Monster Careers - North America | | $ | 45,769 | | $ | 54,559 | | $ | 55,597 | | $ | 57,193 | | $ | 59,853 | | $ | 65,878 | | $ | 54,579 | | $ | 51,455 | | $ | 52,950 | | $ | 227,202 | | $ | 224,862 | |
Monster Careers - International | | 285 | | 765 | | 2,003 | | 4,997 | | 9,658 | | 7,961 | | 12,055 | | 7,344 | | 24,753 | | 17,423 | | 52,113 | |
Monster Careers operating income | | 46,054 | | 55,324 | | 57,600 | | 62,190 | | 69,511 | | 73,839 | | 66,634 | | 58,799 | | 77,703 | | 244,625 | | 276,975 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Internet Advertising & Fees operating income | | 10,656 | | 9,486 | | 12,563 | | 11,843 | | 11,170 | | 4,304 | | 5,211 | | 2,502 | | 75 | | 45,062 | | 12,092 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total Monster operating income | | $ | 56,710 | | $ | 64,810 | | $ | 70,163 | | $ | 74,033 | | $ | 80,681 | | $ | 78,143 | | $ | 71,845 | | $ | 61,301 | | $ | 77,778 | | $ | 289,687 | | $ | 289,067 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Corporate expenses | | $ | (13,997 | ) | $ | (11,871 | ) | $ | (10,895 | ) | $ | (14,206 | ) | $ | (22,851 | ) | $ | (19,948 | ) | $ | (29,470 | ) | $ | (11,289 | ) | $ | (13,647 | ) | $ | (59,823 | ) | $ | (74,354 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Margin Analysis: | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Monster Careers - North America OIBDA margin | | 36.3 | % | 36.7 | % | 37.7 | % | 37.2 | % | 38.6 | % | 38.7 | % | 34.9 | % | 32.8 | % | 34.1 | % | 37.5 | % | 35.2 | % |
Monster Careers - North America Proforma operating margin | | 33.2 | % | 34.1 | % | 34.1 | % | 34.3 | % | 35.6 | % | 35.8 | % | 31.5 | % | 33.9 | % | 32.5 | % | 34.5 | % | 33.5 | % |
Monster Careers - North America operating margin | | 33.2 | % | 34.1 | % | 34.1 | % | 34.3 | % | 35.6 | % | 35.8 | % | 31.3 | % | 29.4 | % | 30.5 | % | 34.5 | % | 31.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
Monster Careers - International OIBDA margin | | 6.5 | % | 7.3 | % | 9.5 | % | 10.7 | % | 14.5 | % | 11.9 | % | 14.9 | % | 10.6 | % | 20.9 | % | 10.8 | % | 14.9 | % |
Monster Careers - International Proforma operating margin | | 0.5 | % | 1.2 | % | 2.7 | % | 6.5 | % | 10.7 | % | 7.5 | % | 10.3 | % | 11.2 | % | 20.0 | % | 5.7 | % | 12.8 | % |
Monster Careers - International operating margin | | 0.5 | % | 1.2 | % | 2.7 | % | 6.5 | % | 10.7 | % | 7.5 | % | 10.3 | % | 6.0 | % | 17.3 | % | 5.7 | % | 10.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
Monster Careers OIBDA margin | | 27.8 | % | 28.2 | % | 28.8 | % | 28.8 | % | 30.2 | % | 28.9 | % | 26.8 | % | 23.7 | % | 28.1 | % | 29.0 | % | 26.9 | % |
Monster Careers Proforma operating margin | | 23.9 | % | 24.6 | % | 24.3 | % | 25.5 | % | 26.9 | % | 25.4 | % | 23.0 | % | 24.6 | % | 26.9 | % | 25.4 | % | 25.0 | % |
Monster Careers operating margin | | 23.9 | % | 24.6 | % | 24.3 | % | 25.5 | % | 26.9 | % | 25.4 | % | 22.9 | % | 19.8 | % | 24.5 | % | 25.4 | % | 23.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
Internet Advertising & Fees OIBDA margin | | 38.6 | % | 35.8 | % | 37.5 | % | 32.5 | % | 31.8 | % | 16.6 | % | 19.5 | % | 12.7 | % | 7.0 | % | 34.3 | % | 14.0 | % |
Internet Advertising & Fees Proforma operating margin | | 34.6 | % | 29.2 | % | 33.1 | % | 28.5 | % | 27.7 | % | 11.1 | % | 13.1 | % | 11.0 | % | 3.6 | % | 29.6 | % | 9.8 | % |
Internet Advertising & Fees operating margin | | 34.6 | % | 29.2 | % | 33.1 | % | 28.5 | % | 27.7 | % | 11.1 | % | 13.1 | % | 6.2 | % | 0.2 | % | 29.6 | % | 7.8 | % |
(1) - See notes to financial supplement for further explanation of non-GAAP measures. |
9
Monster Worldwide, Inc.
Statements of Operations
(unaudited)
| | Trended Quarterly Data | | Year to Date Data | |
| | | | | | | | | | | | | | | | | | | | | | | |
Summary P&L Information | | Q4 2005 | | Q1 2006 | | Q2 2006 | | Q3 2006 | | Q4 2006 | | Q1 2007 | | Q2 2007 | | Q3 2007 | | Q4 2007 | | 12M 2006 | | 12M 2007 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Monster Careers | | 86.2 | % | 87.4 | % | 86.2 | % | 85.5 | % | 86.5 | % | 88.2 | % | 88.0 | % | 88.1 | % | 89.5 | % | 86.4 | % | 88.5 | % |
Internet Advertising & Fees | | 13.8 | % | 12.6 | % | 13.8 | % | 14.5 | % | 13.5 | % | 11.8 | % | 12.0 | % | 11.9 | % | 10.5 | % | 13.6 | % | 11.5 | % |
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 | | 38.3 | % | 34.8 | % | 34.7 | % | 36.3 | % | 37.6 | % | 35.9 | % | 39.0 | % | 37.2 | % | 36.5 | % | 35.9 | % | 37.1 | % |
Office and general | | 14.0 | % | 14.4 | % | 11.9 | % | 14.7 | % | 16.7 | % | 18.4 | % | 16.0 | % | 17.4 | % | 16.4 | % | 14.5 | % | 17.0 | % |
Marketing and promotion | | 24.0 | % | 25.6 | % | 26.6 | % | 23.8 | % | 22.2 | % | 23.7 | % | 23.6 | % | 22.6 | % | 22.8 | % | 24.5 | % | 23.2 | % |
Restructuring and other special charges | | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 3.3 | % | 1.5 | % | 0.0 | % | 1.2 | % |
Depreciation expense | | 2.8 | % | 2.8 | % | 3.1 | % | 2.6 | % | 2.6 | % | 2.5 | % | 3.0 | % | 3.2 | % | 3.1 | % | 2.8 | % | 3.0 | % |
Amortization of restricted stock and RSU Plan | | 0.3 | % | 0.8 | % | 1.2 | % | 1.0 | % | 0.8 | % | 1.3 | % | 5.2 | % | 0.9 | % | 1.0 | % | 1.0 | % | 2.1 | % |
Non-cash stock option expense | | 0.2 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.1 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % |
Amortization of intangibles | | 1.3 | % | 1.0 | % | 0.9 | % | 0.6 | % | 0.6 | % | 0.5 | % | 0.5 | % | 0.5 | % | 0.5 | % | 0.8 | % | 0.5 | % |
Operating expenses | | 80.9 | % | 79.4 | % | 78.5 | % | 79.1 | % | 80.6 | % | 82.3 | % | 87.2 | % | 85.2 | % | 81.9 | % | 79.4 | % | 84.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | 19.1 | % | 20.6 | % | 21.5 | % | 20.9 | % | 19.4 | % | 17.7 | % | 12.8 | % | 14.8 | % | 18.1 | % | 20.6 | % | 15.9 | % |
Interest and other, net | | 1.7 | % | 1.2 | % | 1.4 | % | 1.8 | % | 2.1 | % | 1.6 | % | 2.1 | % | 1.9 | % | 1.9 | % | 1.7 | % | 1.9 | % |
Income from cont. operations, pre-tax | | 20.8 | % | 21.8 | % | 23.0 | % | 22.7 | % | 21.5 | % | 19.3 | % | 14.9 | % | 16.7 | % | 20.0 | % | 22.2 | % | 17.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
Income taxes | | 7.2 | % | 7.9 | % | 8.0 | % | 7.9 | % | 7.5 | % | 6.8 | % | 5.3 | % | 5.9 | % | 7.0 | % | 7.9 | % | 6.3 | % |
Losses in equity interests, net | | -1.0 | % | -0.5 | % | -0.8 | % | -0.7 | % | -0.5 | % | -0.4 | % | -0.9 | % | -0.9 | % | -0.2 | % | -0.6 | % | -0.6 | % |
Income from continuing operations | | 12.6 | % | 13.4 | % | 14.1 | % | 14.0 | % | 13.5 | % | 12.1 | % | 8.7 | % | 9.9 | % | 12.8 | % | 13.8 | % | 10.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from disc. operations, net of tax | | 3.5 | % | 3.1 | % | 0.3 | % | -43.3 | % | -0.4 | % | -0.1 | % | -0.1 | % | 0.0 | % | -0.1 | % | -10.4 | % | -0.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | 16.2 | % | 16.4 | % | 14.4 | % | -29.3 | % | 13.1 | % | 12.0 | % | 8.6 | % | 9.9 | % | 12.7 | % | 3.3 | % | 10.8 | % |
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Monster Worldwide, Inc.
Statements of Operations - Reconciliation of Non-GAAP Measures
(unaudited, in thousands, except per share amounts)
| | Trended Quarterly Data | | Year to Date Data | |
| | | | | | | | | | | | | | | | | | | | | | | |
Summary P&L Information | | Q4 2005 | | Q1 2006 | | Q2 2006 | | Q3 2006 | | Q4 2006 | | Q1 2007 | | Q2 2007 | | Q3 2007 | | Q4 2007 | | 12M 2006 | | 12M 2007 | |
| | | | | | | | | | | | | | | | | | | | | | | |
OIBDA (1) | | $ | 52,955 | | $ | 64,740 | | $ | 73,846 | | $ | 71,858 | | $ | 70,019 | | $ | 72,538 | | $ | 71,034 | | $ | 65,612 | | $ | 80,687 | | $ | 280,463 | | $ | 289,871 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Depreciation expense | | 6,292 | | 7,097 | | 8,586 | | 7,323 | | 7,895 | | 8,285 | | 9,827 | | 10,886 | | 11,068 | | 30,901 | | 40,066 | |
Amortization of restricted stock and RSU Plan | | 693 | | 2,029 | | 3,423 | | 2,943 | | 2,424 | | 4,176 | | 17,069 | | 2,871 | | 3,623 | | 10,819 | | 27,739 | |
Non-cash stock option expense | | 425 | | — | | — | | — | | — | | 186 | | 47 | | 104 | | 105 | | — | | 442 | |
Amortization of intangibles | | 2,832 | | 2,675 | | 2,569 | | 1,765 | | 1,870 | | 1,696 | | 1,716 | | 1,739 | | 1,760 | | 8,879 | | 6,911 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | $ | 42,713 | | $ | 52,939 | | $ | 59,268 | | $ | 59,827 | | $ | 57,830 | | $ | 58,195 | | $ | 42,375 | | $ | 50,012 | | $ | 64,131 | | $ | 229,864 | | $ | 214,713 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Proforma operating income (1) | | $ | 42,713 | | $ | 52,939 | | $ | 59,893 | | $ | 63,915 | | $ | 71,396 | | $ | 68,022 | | $ | 63,517 | | $ | 69,392 | | $ | 74,354 | | $ | 248,143 | | $ | 275,285 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Executive Commitments | | — | | — | | — | | — | | — | | — | | 15,811 | | — | | — | | — | | 15,811 | |
Stock option investigation | | — | | — | | 625 | | 4,088 | | 13,566 | | 9,827 | | 5,331 | | 2,571 | | 1,392 | | 18,279 | | 19,121 | |
Security breach | | — | | — | | — | | — | | — | | — | | — | | 5,654 | | 3,389 | | — | | 9,043 | |
Realignment program | | — | | — | | — | | — | | — | | — | | — | | 11,155 | | 5,442 | | — | | 16,597 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | $ | 42,713 | | $ | 52,939 | | $ | 59,268 | | $ | 59,827 | | $ | 57,830 | | $ | 58,195 | | $ | 42,375 | | $ | 50,012 | | $ | 64,131 | | $ | 229,864 | | $ | 214,713 | |
(1) – See notes to financial supplement for further explanation of non-GAAP measures. |
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