Exhibit 99.1
Monster Worldwide Reports Third Quarter 2013 Results
| | • | | Revenue of $197 million |
| | • | | Careers – North America Revenue Stabilizes at $110 million |
| | • | | GAAP EPS from Continuing Operations of $0.08 per share |
| | • | | Operating Expenses declined 9% year over year |
| | • | | Consolidated EBITDA of $34 million |
| | • | | Total CareersEBITDA margin of18% |
| | • | | Announces Sale of Minority Stake (49.9%) in South Korean Business for $90 Million, Establishing New Strategic Partnership in the Asia Pacific Region |
| | • | | Expands Joint Venture with Alma Media Resulting in #1 Market Share Position in Eastern Europe and the Baltic Region |
| | • | | Repurchased8 Million Shares of Common Stock in the Third Quarter; Company Has Repurchased 11% of Outstanding Shares in 2013 |
New York, November 7, 2013— Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the third quarter ended September 30, 2013.
“Our third quarter results were encouraging as we experienced stability in North America, protected profitability and continued executing on several important initiatives to enhance future growth,” said Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide. “The stabilization we experienced in North America in the second quarter continued and we are cautiously optimistic that this positive momentum will result in sequential revenue growth in North America in the fourth quarter of 2013.”
“We are pleased to announce the sale of a minority stake in our South Korean business for $90 million which demonstrates the underlying value of the Monster enterprise. We look forward to working with our partner, H&Q Korea, to grow this profitable business as well as to explore the potential expansion of this partnership throughout the Asia Pacific region. We are also excited to announce the expansion of our alliance with Alma Media in Eastern Europe and the Baltic region, which will enhance the profitability of these businesses and grow our market share position. Finally, consistent with our objective to enhance shareholder returns, we successfully repurchased $37 million worth of our shares in the quarter.”
Third Quarter 2013 Results
Revenue was $197 million, compared to third quarter 2012 revenue of $221 million. Careers – North America revenue of $110 million was flat on a sequential basis. Historical data on revenue for prior quarters is available in the Company’s supplemental financial information.
Consolidated operating expenses of $183 million decreased 9% compared to $201 million of Non-GAAP operating expenses in the third quarter 2012. Income from continuing operations for the third quarter of 2013 was $8.2 million, or $0.08 per share, compared to $41.1 million, or $0.37 per share in the third quarter 2012, which included a $31 million non-cash tax benefit. Non-GAAP net income from continuing operations in the third quarter of 2012 was $11.7 million, or $0.10 per share. EBITDA margin of 17% was led by Careers-North America with a 23% margin. Pro-forma items are described in the “Notes Regarding the Use of Non-GAAP Financial Measures” and are reconciled to the GAAP measure in the accompanying tables.
Net cash provided by operating activities in the quarter was $2.3 million, which included approximately $5 million of non-recurring cash outflows associated with restructuring activities. Deferred revenue was $316 million compared to $329 million as of June 30, 2013 and $352 million as of December 31, 2012. The Company ended the quarter with total available liquidity of $214 million.
Sale of Minority Stake in JobKorea
The Company has announced today that it has agreed to sell a 49.9% minority stake of JobKorea to H&Q Korea (“H&Q”) for a purchase price of $90 million. H&Q is a leading Asian private equity firm focused on companies with leading market positions, solid growth potential and profitability. Monster will retain management control in JobKorea and will leverage H&Q’s expertise and extensive Asia Pacific regional network to enhance and grow this profitable business. Monster will continue to consolidate the results of JobKorea.
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Joint Venture with Alma Media
The Company has also announced an agreement to expand its current relationship with its joint venture partner in Finland. Alma Media is a leading media company focused on digital services and publishing in Finland, the Nordic countries, the Baltics and Central Europe. Monster and Alma Media will each contribute several additional entities and businesses into the existing joint venture and form a significantly larger joint venture where Monster will have an initial equity ownership of 15%, with the opportunity to increase ownership to 20%. Combining these assets will create an entity with the #1 market share position in the region and allow Monster to leverage another significant strategic partner for expanding and competing in new markets across the region.
Share Repurchase
During the third quarter 2013, Monster repurchased 8 million shares of its common stock at an average price of $4.64 per share, for a total of $37.2 million. At September 30, 2013, there was approximately $139.5 million remaining under the Company’s previously announced $200 million share repurchase program. Year to date, the Company has repurchased 12 million shares, or 11% of its total shares outstanding.
Nine Months Results
Monster Worldwide reported total revenue of $609 million for the first nine months ended September 30, 2013 compared to $679 million in the same period last year, a 10% decrease. Monster Careers revenue decreased 11% to $554 million compared with $621 million in the 2012 period. Internet Advertising & Fees reported revenue of $55 million compared to $58 million in the prior year period. The Company reported income from continuing operations of $23 million, or $0.21 per share, compared to $63 million, or $0.55 per share, in the prior period.
Company Provides Q4 EPS Guidance
Beginning this quarter, any guidance provided will exclude non-cash, stock-based compensation expense in order to provide a better measurement of Monster’s operating performance, cash generation potential and value as a company.
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Fourth quarter 2013 Non-GAAP EPS from continuing operations is expected to be in the range of $0.09 to $0.13, which excludes approximately $8 million of stock-based compensation expense.
Third quarter 2013 Non-GAAP EPS from continuing operations would have been $0.11 excluding approximately $5 million of stock-based compensation expense.
Historical data on Non-GAAP EPS excluding stock-based compensation expense for prior quarters is available in the Company’s supplemental financial information.
Conference Call and Webcast
Third quarter 2013 results will be discussed on Monster Worldwide’s quarterly conference call on November 7, 2013 at 8:30 AM ET. A live webcast of the conference call can be accessed online through the Investor Relations section of the Company’s website at http://ir.monster.com. To join the conference call by telephone, please dial (888) 696-1396 or (706) 758-9636 and reference conference ID# 90871551.
A presentation of financial slides will be referenced during the conference call and will be viewable through the live webcast. A PDF of the financial presentation can also be accessed directly through the Company’s Investor Relations website at http://ir.monster.com.
The Company has also made available certain supplemental financial information which can be accessed directly through the Company’s Investor Relations website at http://ir.monster.com.
For a replay of the conference call, please dial (855) 859-2056 or (404) 537-3406 and reference ID# 90871551. This number is valid until midnight on November 21, 2013.
Contacts
Investors: Andi Rose, Joele Frank, (212) 355-4449,arose@joelefrank.com
Media: Matt Anchin, (212) 351-7528,matt.anchin@monster.com
About Monster Worldwide
Monster Worldwide, Inc. (NYSE:MWW), is the global leader in successfully connecting job opportunities and people. Monster uses the world’s most advanced technology to help people Find Better, matching job seekers to opportunities via digital, social and mobile solutions including monster.com®, our flagship website, and employers to the best talent using a vast array of products and services. As an Internet pioneer, more than 200 million people have registered on the Monster Worldwide network. Today, with operations in more than 40 countries, Monster provides the broadest, most sophisticated job seeking, career management, recruitment and talent management capabilities globally. For more information visitabout.monster.com
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Special Note: The statements in this release that are not strictly historical, including, without limitation, statements regarding the Company’s strategic direction, prospects and future results, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risks and uncertainties and, therefore, actual results may differ materially from what is expressed or implied herein and no assurance can be given that the Company will achieve, among other things, its outlook with respect to earnings per share for the fourth quarter 2013. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, economic and other conditions in the markets in which we operate, risks associated with acquisitions or dispositions, competition, and the other risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated into this release by reference. Many of the factors that will determine the Company’s future results are beyond the ability of management to control or predict. Readers should not place undue reliance on the forward-looking statements in this release as they reflect management’s views only as of the date hereof. The Company undertakes no obligation to revise or update any of the forward-looking statements contained in this release or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Notes Regarding the Use of Non-GAAP Financial Measures
The Company has provided certain non-GAAP financial information as additional information for its operating results. These measures are not in accordance with, or an alternative for, generally accepted accounting principles (“GAAP”) and may be different from non-GAAP measures reported by other companies. The Company believes that its presentation of non-GAAP measures provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations.
Non-GAAP revenue, operating expenses, operating income from continuing operations, operating margin, income from continuing operations, (loss) income from discontinued operations, net of tax, and diluted earnings (loss) per share all exclude certain pro-forma adjustments including: costs incurred for the 2012 restructurings; recovery of restitution award from former executive; costs incurred related to the Company’s review of strategic alternatives; income tax benefits associated with the reversal of income tax reserves on uncertain tax positions and a tax benefit related to certain losses arising from the Company’s restructuring programs; and the results of the businesses in Careers – China, Latin America and Turkey as they have been classified as discontinued operations. 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.
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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, non-cash compensation expense and non-cash restructuring costs. 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.
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 marketable securities, less total debt. Total available liquidity is defined as cash and cash equivalents, plus short-term marketable securities plus unused borrowings under our credit facilities. The Company considers net cash and securities and total available liquidity to be important measures of liquidity and indicators of its ability to meet its ongoing obligations. The Company also uses net cash and securities and total available liquidity, among other measures, in evaluating its choices for capital deployment. Net cash and securities and total available liquidity are presented herein as non-GAAP measures and may not be comparable to similarly titled measures used by other companies.
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MONSTER WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | | 2013 | | | 2012 | | | 2013 | | | 2012 | |
Revenue | | $ | 196,817 | | | $ | 220,821 | | | $ | 608,861 | | | $ | 679,148 | |
Salaries and related | | | 92,931 | | | | 98,780 | | | | 279,973 | | | | 310,904 | |
Office and general | | | 51,542 | | | | 60,651 | | | | 154,936 | | | | 171,104 | |
Marketing and promotion | | | 38,089 | | | | 43,099 | | | | 130,750 | | | | 143,823 | |
Restructuring and other special charges | | | — | | | | 244 | | | | 19,995 | | | | 25,527 | |
Recovery of restitution award from former executive | | | — | | | | — | | | | — | | | | (5,350 | ) |
| | | | | | | | | | | | | | | | |
Total operating expenses | | | 182,562 | | | | 202,774 | | | | 585,654 | | | | 646,008 | |
| | | | | | | | | | | | | | | | |
Operating income | | | 14,255 | | | | 18,047 | | | | 23,207 | | | | 33,140 | |
Interest and other, net | | | (1,482 | ) | | | (1,532 | ) | | | (4,107 | ) | | | (4,184 | ) |
| | | | | | | | | | | | | | | | |
Income before income taxes and loss in equity interests | | | 12,773 | | | | 16,515 | | | | 19,100 | | | | 28,956 | |
Provision for (benefit from) income taxes | | | 4,480 | | | | (24,871 | ) | | | (5,153 | ) | | | (35,245 | ) |
Loss in equity interests, net | | | (119 | ) | | | (271 | ) | | | (822 | ) | | | (726 | ) |
| | | | | | | | | | | | | | | | |
Income from continuing operations | | | 8,174 | | | | 41,115 | | | | 23,431 | | | | 63,475 | |
Income (loss) from discontinued operations, net of tax | | | 3,095 | | | | (235,354 | ) | | | (3,798 | ) | | | (249,170 | ) |
| | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 11,269 | | | $ | (194,239 | ) | | $ | 19,633 | | | $ | (185,695 | ) |
| | | | | | | | | | | | | | | | |
*Basic earnings (loss) per share: | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 0.08 | | | $ | 0.37 | | | $ | 0.21 | | | $ | 0.56 | |
Income (loss) from discontinued operations, net of tax | | | 0.03 | | | | (2.12 | ) | | | (0.03 | ) | | | (2.20 | ) |
| | | | | | | | | | | | | | | | |
Basic earnings (loss) per share | | $ | 0.11 | | | $ | (1.75 | ) | | $ | 0.18 | | | $ | (1.64 | ) |
| | | | | | | | | | | | | | | | |
*Diluted earnings (loss) per share: | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 0.08 | | | $ | 0.37 | | | $ | 0.21 | | | $ | 0.55 | |
Income (loss) from discontinued operations, net of tax | | | 0.03 | | | | (2.10 | ) | | | (0.03 | ) | | | (2.17 | ) |
| | | | | | | | | | | | | | | | |
Diluted earnings (loss) per share | | $ | 0.11 | | | $ | (1.73 | ) | | $ | 0.18 | | | $ | (1.62 | ) |
| | | | | | | | | | | | | | | | |
Weighted average shares outstanding: | | | | | | | | | | | | | | | | |
Basic | | | 105,394 | | | | 111,239 | | | | 109,221 | | | | 113,460 | |
| | | | | | | | | | | | | | | | |
Diluted | | | 105,967 | | | | 112,212 | | | | 110,247 | | | | 114,622 | |
| | | | | | | | | | | | | | | | |
EBITDA: | | | | | | | | | | | | | | | | |
Operating income | | $ | 14,255 | | | $ | 18,047 | | | $ | 23,207 | | | $ | 33,140 | |
Depreciation and amortization of intangibles | | | 14,545 | | | | 16,076 | | | | 46,374 | | | | 47,893 | |
Amortization of stock-based compensation | | | 4,901 | | | | 5,683 | | | | 17,165 | | | | 21,189 | |
Restructuring non-cash expenses | | | — | | | | — | | | | 5,315 | | | | 6,417 | |
| | | | | | | | | | | | | | | | |
EBITDA | | $ | 33,701 | | | $ | 39,806 | | | $ | 92,061 | | | $ | 108,639 | |
| | | | | | | | | | | | | | | | |
| * | Earnings per share may not add in certain periods due to rounding. |
MONSTER WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| | | | | | | | |
| | | Nine Months Ended September 30, | |
| | | 2013 | | | 2012 | |
Cash flows provided by operating activities: | | | | | | | | |
Net income (loss) | | $ | 19,633 | | | $ | (185,695 | ) |
| | | | | | | | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | |
Depreciation and amortization | | | 46,374 | | | | 52,741 | |
Provision for doubtful accounts | | | 1,750 | | | | 2,064 | |
Non-cash compensation | | | 17,165 | | | | 21,582 | |
Deferred income taxes | | | 2,218 | | | | (294 | ) |
Non-cash restructuring charges | | | 5,315 | | | | 6,417 | |
Loss in equity interests, net | | | 822 | | | | 726 | |
Amount reclassified from accumulated other comprehensive income | | | (23,109 | ) | | | — | |
Tax benefit from change in uncertain tax positions | | | (14,355 | ) | | | (43,193 | ) |
Impairment of goodwill | | | — | | | | 216,221 | |
Excess income tax benefit from equity compensation plans | | | (4,014 | ) | | | — | |
Changes in assets and liabilities, net of acquisitions: | | | | | | | | |
Accounts receivable | | | 41,461 | | | | 13,341 | |
Prepaid and other | | | 12,184 | | | | 11,109 | |
Deferred revenue | | | (47,824 | ) | | | (28,277 | ) |
Accounts payable, accrued liabilities and other | | | (48,603 | ) | | | (30,904 | ) |
| | | | | | | | |
Total adjustments | | | (10,616 | ) | | | 221,533 | |
| | | | | | | | |
Net cash provided by operating activities | | | 9,017 | | | | 35,838 | |
| | | | | | | | |
Cash flows used for investing activities: | | | | | | | | |
Capital expenditures | | | (24,990 | ) | | | (46,902 | ) |
Cash funded to and dividends received from equity investee and other | | | (2,499 | ) | | | (1,349 | ) |
| | | | | | | | |
Net cash used for investing activities | | | (27,489 | ) | | | (48,251 | ) |
| | | | | | | | |
Cash flows used for financing activities: | | | | | | | | |
Proceeds from borrowings on credit facilities | | | 69,500 | | | | 221,355 | |
Payments on borrowings on credit facilities | | | (39,799 | ) | | | (271,802 | ) |
Proceeds from borrowings on term loan | | | — | | | | 100,000 | |
Payments on borrowings on term loan | | | (5,000 | ) | | | (42,500 | ) |
Repurchase of common stock | | | (60,782 | ) | | | (65,611 | ) |
Tax withholdings related to net share settlements of restricted stock awards and units | | | (5,914 | ) | | | (8,030 | ) |
Excess income tax benefit from equity compensation plans | | | 4,014 | | | | — | |
Proceeds from the exercise of employee stock options | | | — | | | | 23 | |
| | | | | | | | |
Net cash used for financing activities | | | (37,981 | ) | | | (66,565 | ) |
| | | | | | | | |
Effects of exchange rates on cash | | | (4,787 | ) | | | 3,764 | |
| | | | | | | | |
Net decrease in cash and cash equivalents | | | (61,240 | ) | | | (75,214 | ) |
Cash and cash equivalents, beginning of period | | | 148,185 | | | | 250,317 | |
| | | | | | | | |
Cash and cash equivalents, end of period | | $ | 86,945 | | | $ | 175,103 | |
| | | | | | | | |
Free cash flow: | | | | | | | | |
Net cash provided by operating activities | | $ | 9,017 | | | $ | 35,838 | |
Less: Capital expenditures | | | (24,990 | ) | | | (46,902 | ) |
| | | | | | | | |
Free cash flow | | $ | (15,973 | ) | | $ | (11,064 | ) |
| | | | | | | | |
MONSTER WORLDWIDE, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
| | | | | | | | |
| | | September 30, 2013 | | | December 31, 2012 | |
Assets: | | | | | | | | |
Cash and cash equivalents | | $ | 86,945 | | | $ | 148,185 | |
Accounts receivable, net | | | 298,823 | | | | 335,905 | |
Property and equipment, net | | | 128,409 | | | | 147,613 | |
Goodwill and intangibles, net | | | 915,842 | | | | 919,854 | |
Other assets | | | 113,911 | | | | 111,606 | |
Current assets of discontinued operations | | | — | | | | 21,702 | |
| | | | | | | | |
Total Assets | | $ | 1,543,930 | | | $ | 1,684,865 | |
| | | | | | | | |
Liabilities and Stockholders’ Equity: | | | | | | | | |
Accounts payable, accrued expenses and other current liabilities | | $ | 151,778 | | | $ | 181,914 | |
Deferred revenue | | | 315,645 | | | | 351,546 | |
Current portion of long-term debt and borrowings on credit facilities | | | 8,750 | | | | 18,264 | |
Long-term income taxes payable | | | 51,298 | | | | 63,465 | |
Long-term debt, less current portion | | | 180,200 | | | | 145,975 | |
Other long-term liabilities | | | 5,752 | | | | 10,406 | |
Current liabilities of discontinued operations | | | 2,137 | | | | 33,256 | |
| | | | | | | | |
Total Liabilities | | $ | 715,560 | | | $ | 804,826 | |
| | | | | | | | |
Stockholders’ Equity | | | 828,370 | | | | 880,039 | |
| | | | | | | | |
Total Liabilities and Stockholders’ Equity | | $ | 1,543,930 | | | $ | 1,684,865 | |
| | | | | | | | |
MONSTER WORLDWIDE, INC.
UNAUDITED NON-GAAP STATEMENTS OF OPERATIONS AND RECONCILIATIONS
(in thousands, except per share amounts)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30,
2013 | | | Three Months Ended September 30,
2012 | |
| | | As Reported | | | Non GAAP
Adjustments | | | Consolidated
Non GAAP | | | As Reported | | | Non GAAP
Adjustments | | | Consolidated
Non GAAP | |
Revenue | | $ | 196,817 | | | $ | — | | | $ | 196,817 | | | $ | 220,821 | | | $ | — | | | $ | 220,821 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and related | | | 92,931 | | | | — | | | | 92,931 | | | | 98,780 | | | | — | | | | 98,780 | |
Office and general | | | 51,542 | | | | — | | | | 51,542 | | | | 60,651 | | | | (1,483 | )a | | | 59,168 | |
Marketing and promotion | | | 38,089 | | | | — | | | | 38,089 | | | | 43,099 | | | | — | | | | 43,099 | |
Restructuring and other special charges | | | — | | | | — | | | | — | | | | 244 | | | | (244 | )b | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 182,562 | | | | — | | | | 182,562 | | | | 202,774 | | | | (1,727 | ) | | | 201,047 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 14,255 | | | | — | | | | 14,255 | | | | 18,047 | | | | 1,727 | | | | 19,774 | |
Operating margin | | | 7.2 | % | | | | | | | 7.2 | % | | | 8.2 | % | | | | | | | 9.0 | % |
Interest and other, net | | | (1,482 | ) | | | — | | | | (1,482 | ) | | | (1,532 | ) | | | — | | | | (1,532 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes and loss in equity interests | | | 12,773 | | | | — | | | | 12,773 | | | | 16,515 | | | | 1,727 | | | | 18,242 | |
Provision for (benefit from) income taxes | | | 4,480 | | | | — | | | | 4,480 | | | | (24,871 | ) | | | 31,168 | d,e | | | 6,297 | |
Loss in equity interests, net | | | (119 | ) | | | — | | | | (119 | ) | | | (271 | ) | | | — | | | | (271 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | | 8,174 | | | | — | | | | 8,174 | | | | 41,115 | | | | (29,441 | ) | | | 11,674 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from discontinued operations, net of tax | | | 3,095 | | | | (3,095 | )g | | | — | | | | (235,354 | ) | | | 235,354 | g | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 11,269 | | | $ | (3,095 | ) | | $ | 8,174 | | | $ | (194,239 | ) | | $ | 205,913 | | | $ | 11,674 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Diluted earnings (loss) per share:* | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 0.08 | | | $ | — | | | $ | 0.08 | | | $ | 0.37 | | | $ | (0.27 | ) | | $ | 0.10 | |
Income (loss) from discontinued operations, net of tax | | | 0.03 | | | | (0.03 | ) | | | — | | | | (2.10 | ) | | | 2.10 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Diluted earnings (loss) per share | | $ | 0.11 | | | $ | (0.03 | ) | | $ | 0.08 | | | $ | (1.73 | ) | | $ | 1.83 | | | $ | 0.10 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | 105,394 | | | | 105,394 | | | | 105,394 | | | | 111,239 | | | | 111,239 | | | | 111,239 | |
Diluted | | | 105,967 | | | | 105,967 | | | | 105,967 | | | | 112,212 | | | | 112,212 | | | | 112,212 | |
| | |
| | | Nine Months Ended September 30,
2013 | | | Nine Months Ended September 30,
2012 | |
| | | As Reported | | | Non GAAP
Adjustments | | | Consolidated
Non GAAP | | | As Reported | | | Non GAAP
Adjustments | | | Consolidated
Non GAAP | |
Revenue | | $ | 608,861 | | | $ | — | | | $ | 608,861 | | | $ | 679,148 | | | $ | — | | | $ | 679,148 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and related | | | 279,973 | | | | — | | | | 279,973 | | | | 310,904 | | | | — | | | | 310,904 | |
Office and general | | | 154,936 | | | | (2,920 | )a | | | 152,016 | | | | 171,104 | | | | (3,312 | )a | | | 167,792 | |
Marketing and promotion | | | 130,750 | | | | — | | | | 130,750 | | | | 143,823 | | | | — | | | | 143,823 | |
Restructuring and other special charges | | | 19,995 | | | | (19,995 | )b | | | — | | | | 25,527 | | | | (25,527 | )b | | | — | |
Recovery of restitution award from former executive | | | — | | | | — | | | | — | | | | (5,350 | ) | | | 5,350 | c | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 585,654 | | | | (22,915 | ) | | | 562,739 | | | | 646,008 | | | | (23,489 | ) | | | 622,519 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 23,207 | | | | 22,915 | | | | 46,122 | | | | 33,140 | | | | 23,489 | | | | 56,629 | |
Operating margin | | | 3.8 | % | | | | | | | 7.6 | % | | | 4.9 | % | | | | | | | 8.3 | % |
Interest and other, net | | | (4,107 | ) | | | — | | | | (4,107 | ) | | | (4,184 | ) | | | — | | | | (4,184 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes and loss in equity interests | | | 19,100 | | | | 22,915 | | | | 42,015 | | | | 28,956 | | | | 23,489 | | | | 52,445 | |
(Benefit from) provision for income taxes | | | (5,153 | ) | | | 19,878 | d,e | | | 14,725 | | | | (35,245 | ) | | | 52,902 | d,e,f | | | 17,657 | |
Loss in equity interests, net | | | (822 | ) | | | — | | | | (822 | ) | | | (726 | ) | | | — | | | | (726 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | | 23,431 | | | | 3,037 | | | | 26,468 | | | | 63,475 | | | | (29,413 | ) | | | 34,062 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Loss from discontinued operations, net of tax | | | (3,798 | ) | | | 3,798 | g | | | — | | | | (249,170 | ) | | | 249,170 | g | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 19,633 | | | $ | 6,835 | | | $ | 26,468 | | | $ | (185,695 | ) | | $ | 219,757 | | | $ | 34,062 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Diluted earnings (loss) per share:* | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 0.21 | | | $ | 0.03 | | | $ | 0.24 | | | $ | 0.55 | | | $ | (0.26 | ) | | $ | 0.30 | |
Loss from discontinued operations, net of tax | | | (0.03 | ) | | | 0.03 | | | | — | | | | (2.17 | ) | | | 2.17 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Diluted earnings (loss) per share | | $ | 0.18 | | | $ | 0.06 | | | $ | 0.24 | | | $ | (1.62 | ) | | $ | 1.92 | | | $ | 0.30 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | 109,221 | | | | 109,221 | | | | 109,221 | | | | 113,460 | | | | 113,460 | | | | 113,460 | |
Diluted | | | 110,247 | | | | 110,247 | | | | 110,247 | | | | 114,622 | | | | 114,622 | | | | 114,622 | |
Note Regarding Non GAAP Adjustments:
The financial information included herein contains certain non-GAAP financial measures. This information is not intended to be used in place of the financial information prepared and presented in accordance with GAAP, nor is it intended to be considered in isolation. We believe that the above presentation of non-GAAP measures provide useful information to management and investors regarding certain core operating and business trends relating to our results of operations, exclusive of certain restructuring related and other special charges.
Non GAAP adjustments consist of the following:
| a | Costs directly associated with our previously announced review of strategic alternatives. |
| b | Restructuring related charges pertaining to the strategic actions that the Company announced in January and November 2012. These charges include costs related to the reduction in the Company’s workforce, fixed asset write-offs, costs relating to the consolidation of certain office facilities, and professional fees. |
| c | Restitution award paid by a former executive to the United States government in connection with the Company’s historical stock option practices. |
| d | Non-GAAP income tax adjustment includes the reversal of income tax reserves inclusive of interest due to uncertain tax positions. |
| e | Income tax adjustment is calculated using the effective tax rate of the reported period multiplied by the Non GAAP adjustment to income (loss) before income taxes and loss in equity interests. |
| f | Non-GAAP adjustment includes a tax benefit due to certain losses arising from the company’s restructuring. |
| g | Discontinued operations related to our sale of ChinaHR and the exit of our businesses in Latin America and Turkey. |
| * | Earnings per share may not add in certain periods due to rounding. |
MONSTER WORLDWIDE, INC.
UNAUDITED NON-GAAP OPERATING SEGMENT INFORMATION
(in thousands)
| | | | | | | | | | | | | | | | | | | | |
Three Months Ended September 30, 2013 | | Careers -
North America | | | Careers -
International | | | Internet
Advertising & Fees | | | Corporate
Expenses | | | Total | |
Revenue—GAAP | | $ | 109,622 | | | $ | 69,115 | | | $ | 18,080 | | | | | | | $ | 196,817 | |
| | | | | | | | | | | | | | | | | | | | |
Operating income (loss)—GAAP | | $ | 16,346 | | | $ | (325 | ) | | $ | 5,902 | | | $ | (7,668 | ) | | $ | 14,255 | |
Non GAAP Adjustments | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Operating income (loss)—Non GAAP | | $ | 16,346 | | | $ | (325 | ) | | $ | 5,902 | | | $ | (7,668 | ) | | $ | 14,255 | |
| | | | | | | | | | | | | | | | | | | | |
EBITDA—GAAP | | $ | 25,542 | | | $ | 6,953 | | | $ | 7,429 | | | $ | (6,223 | ) | | $ | 33,701 | |
Non GAAP Adjustments | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
EBITDA—Non GAAP | | $ | 25,542 | | | $ | 6,953 | | | $ | 7,429 | | | $ | (6,223 | ) | | $ | 33,701 | |
| | | | | | | | | | | | | | | | | | | | |
Operating margin—GAAP | | | 14.9 | % | | | -0.5 | % | | | 32.6 | % | | | | | | | 7.2 | % |
Operating margin—Non GAAP | | | 14.9 | % | | | -0.5 | % | | | 32.6 | % | | | | | | | 7.2 | % |
EBITDA margin—GAAP | | | 23.3 | % | | | 10.1 | % | | | 41.1 | % | | | | | | | 17.1 | % |
EBITDA margin—Non GAAP | | | 23.3 | % | | | 10.1 | % | | | 41.1 | % | | | | | | | 17.1 | % |
| | | | | |
Three Months Ended September 30, 2012 | | Careers -
North America | | | Careers -
International | | | Internet
Advertising & Fees | | | Corporate
Expenses | | | Total | |
Revenue—GAAP | | $ | 115,455 | | | $ | 86,562 | | | $ | 18,804 | | | | | | | $ | 220,821 | |
| | | | | | | | | | | | | | | | | | | | |
Operating income (loss)—GAAP | | $ | 17,169 | | | $ | 7,543 | | | $ | 4,990 | | | $ | (11,655 | ) | | $ | 18,047 | |
Non GAAP Adjustments | | | (116 | ) | | | 569 | | | | 9 | | | | 1,265 | | | | 1,727 | |
| | | | | | | | | | | | | | | | | | | | |
Operating income (loss)—Non GAAP | | $ | 17,053 | | | $ | 8,112 | | | $ | 4,999 | | | $ | (10,390 | ) | | $ | 19,774 | |
| | | | | | | | | | | | | | | | | | | | |
EBITDA—GAAP | | $ | 26,887 | | | $ | 13,877 | | | $ | 6,990 | | | $ | (7,948 | ) | | $ | 39,806 | |
Non GAAP Adjustments | | | (116 | ) | | | 569 | | | | 9 | | | | 1,265 | | | | 1,727 | |
| | | | | | | | | | | | | | | | | | | | |
EBITDA—Non GAAP | | $ | 26,771 | | | $ | 14,446 | | | $ | 6,999 | | | $ | (6,683 | ) | | $ | 41,533 | |
| | | | | | | | | | | | | | | | | | | | |
Operating margin—GAAP | | | 14.9 | % | | | 8.7 | % | | | 26.5 | % | | | | | | | 8.2 | % |
Operating margin—Non GAAP | | | 14.8 | % | | | 9.4 | % | | | 26.6 | % | | | | | | | 9.0 | % |
EBITDA margin—GAAP | | | 23.3 | % | | | 16.0 | % | | | 37.2 | % | | | | | | | 18.0 | % |
EBITDA margin—Non GAAP | | | 23.2 | % | | | 16.7 | % | | | 37.2 | % | | | | | | | 18.8 | % |
| | | | | |
Nine Months Ended September 30, 2013 | | Careers -
North America | | | Careers -
International | | | Internet
Advertising & Fees | | | Corporate
Expenses | | | Total | |
Revenue—GAAP | | $ | 335,274 | | | $ | 218,936 | | | $ | 54,651 | | | | | | | $ | 608,861 | |
| | | | | | | | | | | | | | | | | | | | |
Operating income (loss)—GAAP | | $ | 48,041 | | | $ | (15,370 | ) | | $ | 18,476 | | | $ | (27,940 | ) | | $ | 23,207 | |
Non GAAP Adjustments | | | 9,537 | | | | 7,866 | | | | 341 | | | | 5,171 | | | | 22,915 | |
| | | | | | | | | | | | | | | | | | | | |
Operating income (loss)—Non GAAP | | $ | 57,578 | | | $ | (7,504 | ) | | $ | 18,817 | | | $ | (22,769 | ) | | $ | 46,122 | |
| | | | | | | | | | | | | | | | | | | | |
EBITDA—GAAP | | $ | 80,165 | | | $ | 8,830 | | | $ | 23,196 | | | $ | (20,130 | ) | | $ | 92,061 | |
Non GAAP Adjustments | | | 7,543 | | | | 6,481 | | | | 341 | | | | 3,238 | | | | 17,603 | |
| | | | | | | | | | | | | | | | | | | | |
EBITDA—Non GAAP | | $ | 87,708 | | | $ | 15,311 | | | $ | 23,537 | | | $ | (16,892 | ) | | $ | 109,664 | |
| | | | | | | | | | | | | | | | | | | | |
Operating margin—GAAP | | | 14.3 | % | | | -7.0 | % | | | 33.8 | % | | | | | | | 3.8 | % |
Operating margin—Non GAAP | | | 17.2 | % | | | -3.4 | % | | | 34.4 | % | | | | | | | 7.6 | % |
EBITDA margin—GAAP | | | 23.9 | % | | | 4.0 | % | | | 42.4 | % | | | | | | | 15.1 | % |
EBITDA margin—Non GAAP | | | 26.2 | % | | | 7.0 | % | | | 43.1 | % | | | | | | | 18.0 | % |
| | | | | |
Nine Months Ended September 30, 2012 | | Careers -
North America | | | Careers -
International | | | Internet
Advertising & Fees | | | Corporate
Expenses | | | Total | |
Revenue—GAAP | | $ | 351,418 | | | $ | 270,002 | | | $ | 57,728 | | | | | | | $ | 679,148 | |
| | | | | | | | | | | | | | | | | | | | |
Operating income (loss)—GAAP | | $ | 35,279 | | | $ | 16,760 | | | $ | 13,565 | | | $ | (32,464 | ) | | $ | 33,140 | |
Non GAAP Adjustments | | | 14,213 | | | | 9,281 | | | | 1,166 | | | | (1,171 | ) | | | 23,489 | |
| | | | | | | | | | | | | | | | | | | | |
Operating income (loss) —Non GAAP | | $ | 49,492 | | | $ | 26,041 | | | $ | 14,731 | | | $ | (33,635 | ) | | $ | 56,629 | |
| | | | | | | | | | | | | | | | | | | | |
EBITDA—GAAP | | $ | 71,071 | | | $ | 38,217 | | | $ | 20,532 | | | $ | (21,181 | ) | | $ | 108,639 | |
Non GAAP Adjustments | | | 8,965 | | | | 8,748 | | | | 543 | | | | (1,183 | ) | | | 17,073 | |
| | | | | | | | | | | | | | | | | | | | |
EBITDA—Non GAAP | | $ | 80,036 | | | $ | 46,965 | | | $ | 21,075 | | | $ | (22,364 | ) | | $ | 125,712 | |
| | | | | | | | | | | | | | | | | | | | |
Operating margin—GAAP | | | 10.0 | % | | | 6.2 | % | | | 23.5 | % | | | | | | | 4.9 | % |
Operating margin—Non GAAP | | | 14.1 | % | | | 9.6 | % | | | 25.5 | % | | | | | | | 8.3 | % |
EBITDA margin—GAAP | | | 20.2 | % | | | 14.2 | % | | | 35.6 | % | | | | | | | 16.0 | % |
EBITDA margin—Non GAAP | | | 22.8 | % | | | 17.4 | % | | | 36.5 | % | | | | | | | 18.5 | % |
