[HotJobs.com Logo] Exhibit 99.1
FOR IMMEDIATE RELEASE
HOTJOBS REPORTS THIRD CONSECUTIVE QUARTER OF PRO FORMA
PROFITABILITY, REPORTS $.01 PER SHARE
NEW YORK, NY, JANUARY 30, 2002- HotJobs.com, Ltd. (Nasdaq: HOTJ), a leading
recruiting solutions company, today announced financial results for the quarter
and year ended December 31, 2001.
Total revenue was $25.1 million for the fourth quarter of 2001, a decrease of
20.4% from $31.5 million reported in the same period of 2000, and a decrease of
8.9% from $27.5 million reported for the quarter ended September 30, 2001.
For the twelve months of 2001, total revenue was $117.6 million, a 21.8%
increase compared to $96.5 million for the twelve months of 2000.
Pro forma profit for the quarter ended December 31, 2001 was $237,000, or $0.01
per share, excluding merger expenses of $19.8 million, non-cash compensation
charges of $218,000 and amortization of goodwill charges of $4.0 million. This
compares with a pro forma loss (excluding non-cash compensation charges of
$482,000 and amortization of goodwill charges of $4.1 million) of ($6.9)
million, or ($.19) per share for the quarter ended December 31, 2000, and a pro
forma profit (excluding merger expenses of $546,000, non-cash compensation
charges of $228,000 and amortization of goodwill charges of $4.0 million) of
$799,000, or $.02 per share for the quarter ended September 30, 2001.
Pro forma EBITDA (earnings before interest, taxes, depreciation and
amortization), also excluding merger expenses of $19.8 million and non-cash
compensation charges of $218,000, for the quarter ended December 31, 2001 was
$3.4 million, compared to a ($6.3) million loss for the quarter ended December
31, 2000, and 17.6% higher than the $2.9 million reported in the quarter ended
September 30, 2001, despite lower revenues.
The net loss was ($23.8) million, or ($.61) per basic and diluted share for the
quarter ended December 31, 2001, compared to ($11.4) million, or ($.31) per
basic and diluted share for the fourth quarter of 2000, and ($4.0) million, or
($.10) per basic and diluted share for the quarter ended September 30, 2001.
(Please refer to Table 1 for a reconciliation of net income (loss) per share
excluding the restructuring charges, merger expenses and the non-cash
compensation and goodwill amortization charges to reported net loss per share.)
HotJobs' pro forma loss per share (excluding merger expenses of $21.2 million,
non-cash compensation charges of $1.1 million, restructuring charges of $3.3
million and amortization of goodwill charges of $16.0 million) for the twelve
months of 2001 was ($.09), compared to ($.99) for the twelve months of 2000. The
basic and diluted net loss per share was ($1.19) and ($1.34) for the twelve
months ended December 31, 2001 and 2000, respectively.
"I am truly proud of our team's ability to meet challenge after challenge with
unwavering confidence, insightful management and tremendous dedication. We have
lowered our cost structure, strengthened our brand and improved our products
throughout this difficult year. The talent and experience of the HotJobs team
will bring significant change to the industry in `02, allowing us to expand our
market share in this very dynamic environment," said Dimitri Boylan, Chief
Executive Officer.
Cash, cash equivalents and marketable securities were $65.8 million or $1.70 per
share at December 31, 2001, a decline from $79.0 million at September 30, 2001
due to the payment of $17 million in merger related expenses during the quarter.
Financial results for the fourth quarter of 2001 also included $518,000 of net
interest income.
METRICS
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- HotJobs was the most visited job board for six consecutive months based
on domain traffic. HotJobs drew 7.5 million unique visitors during the
final month of 2001, according to Media Metrix.
- HotJobs' career newsletters grew to over 5 million subscribers in the
fourth quarter of 2001, up from over 1.2 million subscribers in the
third quarter of 2001.
- Over 6.9 million job seekers were registered in the database at
December 31, 2001, up from 6.1 million at September 30, 2001 and 2.9
million at the end of 2000.
- HotJobs employed 506 associates at December 31, 2001, compared to 524
at September 30, 2001 and 665 at December 31, 2000.
BRAND BUILDING
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- HotJobs will be advertising in its 4th consecutive Super Bowl on
February 3, 2002, debuting a new 30-second TV commercial during the
third quarter of the game. The new commercial is an extension of the
popular Onward. Upward. campaign that launched in October 2000.
SITE ENHANCEMENTS
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As part of its ongoing commitment to offer job seekers the most comprehensive
and effective job site available, HotJobs launched a redesigned site on October
16, 2001. The user-centered design simplifies the job search process with its
straightforward navigation, easy-to-read results and user-friendly layout.
On October 17, 2001, HotJobs announced a partnership with Moving.com, the
leading online relocation company, to provide a newly launched relocation center
on HotJobs.com. The relocation center provides a full suite of moving tools,
including a digital change-of-address application, an auction-based platform for
moving services, a moving wizard application, as well as other value-added
services for the move, such as real estate listings, mortgage quotes and home
services.
On January 18, 2002, HotJobs launched Version 1.7 of HotJobs.com. This new
version included eight new job categories, job seeker polls and a career tools
content area.
CORPORATE DEVELOPMENT
- ---------------------
On December 27, 2001, HotJobs announced that it had entered into a merger
agreement with Yahoo! Inc. (Nasdaq: YHOO), a leading global internet
communication, commerce and media company. Under the terms of the exchange
offer, Yahoo! is offering to acquire all outstanding shares of common stock of
HotJobs for at least $5.25 in cash and a fraction of a share of common stock of
Yahoo!, together having a value based on the formula described in the offering
documents of $10.50 per share of HotJobs common stock. The transaction is
subject to completion of an exchange offer, regulatory approval and other
customary closing conditions.
BUSINESS OUTLOOK
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HotJobs currently expects that the transaction with Yahoo! will close during the
first quarter of 2002 and therefore is not providing any further guidance for
its financial results.
FOURTH QUARTER AND FULL YEAR 2001 FINANCIAL RESULTS CONFERENCE CALL JANUARY 31,
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2002
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A live webcast of HotJobs' fourth quarter and full year 2001 financial
results conference call can be heard at 10:00 am EDT on Thursday, January 31,
2002 at http://www.hotjobs.com/htdocs/about/investor-index.html.
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ABOUT HOTJOBS
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HotJobs.com, Ltd. is a leading recruiting solutions and software company. The
company's flagship job site, HotJobs.com (http://www.hotjobs.com), is the
most-visited job board based on domain traffic, according to independent
research by Media Metrix. In addition to its popular consumer job board, HotJobs
provides employers with progressive recruiting solutions such as its Resumix(R)
and Softshoe(R) hiring management software, Agency Desktop and Diversity
Marketing Solutions. HotJobs recently ranked #14 in Bloomberg Personal Finance
Magazine's coveted "Tech 100" list.
"Safe Harbor" Statement Under The Private Securities Litigation Reform Act:
Statements in HotJobs' release that are not strictly historical are
"forward-looking" statements which are subject to the many risks and
uncertainties that exist in the Company's operations and business environment
that may cause actual results, performance or achievements of the Company to be
materially different from those expected or anticipated in the forward-looking
statements. These risks and uncertainties include, but are not limited to, those
risks which are set forth in more detail in the Company's most recent Quarterly
Report on Form 10-Q for the quarter ended September 30, 2001, as well as other
reports and documents filed from time to time with the Securities and Exchange
Commission.
The forward-looking statements included in this press release reflects the
beliefs of the Company's management on the date of this release, and the Company
undertakes no obligation to update the forward-looking statements in this
release to reflect events or circumstances occurring after the date of this
release.
At HotJobs At Morgen-Walke
- ---------- ---------------
Lowell W. Robinson Stephanie Prince (Investors)
Chief Financial Officer Evan Goetz (Media)
212-699-5342 212-850-5600
- tables to follow -
HOTJOBS.COM, LTD.
CONDENSED STATEMENT OF OPERATIONS
THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2001 AND 2000
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED DECEMBER 31ST
(UNAUDITED)
2001 2000
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Revenues:
e-Recruitment $ 19.9 $ 24.9
Software 4.5 4.6
Career Expos - 0.9
Other 0.7 1.1
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Total Revenues $ 25.1 $ 31.5
Cost of Revenues 3.8 7.2
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Gross Profit 21.3 24.3
Operating Expenses:
Product Development 1.1 2.5
Sales and Marketing 15.0 22.7
General and Administrative 5.5 7.5
Non-Cash Compensation 0.2 0.5
Amortization of Goodwill 4.0 4.1
Merger Costs 19.8 -
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Total Operating Expenses 45.6 37.3
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Loss From Operations (24.3) (13.0)
Other Income (Expense) 0.5 1.6
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Net Loss $ (23.8) $ (11.4)
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Pro Forma Net Income (Loss)
Per Basic and Diluted Share $ 0.01 $ (0.19)
Basic and Diluted Net Loss
Per Common Share $ (0.61) $ (0.31)
Weighted Average Shares Outstanding
Used in Basic and Diluted Net
Income (Loss) Per Common Share
Calculation 38.7 36.7
TWELVE MONTHS ENDED DECEMBER 31ST
2001 2000
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Revenues:
e-Recruitment $ 94.1 $ 74.7
Software 19.8 12.9
Career Expos 1.1 5.0
Other 2.6 3.9
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Total Revenues $ 117.6 $ 96.5
Cost of Revenues 21.7 22.1
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Gross Profit 95.9 74.4
Operating Expenses:
Product Development 8.9 10.2
Sales and Marketing 66.7 83.9
General and Administrative 27.2 21.6
Non-Cash Compensation 1.1 1.9
Amortization of Goodwill 16.0 10.2
Merger Costs 21.2 -
Restructuring Charges 3.3 -
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Total Operating Expenses 144.4 127.8
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Loss From Operations (48.5) (53.4)
Other Income (Expense) 3.5 7.1
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Net Loss $ (45.0) $ (46.3)
============= =============
Pro Forma Net Loss Per Basic
and Diluted Share (unaudited) $ (0.09) $ (0.99)
Basic and Diluted Net Loss Per Common Share $ (1.19) $ (1.34)
Weighted Average Shares
Outstanding Used in Basic
and Diluted Net Loss Per
Common Share Calculation 37.9 34.7
HOTJOBS.COM, LTD.
CONDENSED BALANCE SHEETS
($ MILLIONS)
DECEMBER 31, DECEMBER 31,
2001 2000
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Cash, Cash Equivalents & Marketable Securities $ 65.8 $ 99.1
Accounts Receivable, net 15.5 22.2
Property and Equipment, net 26.4 24.5
Goodwill, net 21.8 37.7
Other Assets 7.7 7.2
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Total Assets $ 137.2 $ 190.7
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Accounts Payable and Accrued Expenses $ 23.9 $ 32.2
Deferred Revenue 12.3 16.9
Other Liabilities 3.5 4.9
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Total Liabilities 39.7 54.0
Stockholders' Equity 97.5 136.7
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Total Liabilities and Stockholders' Equity $ 137.2 $ 190.7
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TABLE 1
HOTJOBS.COM, LTD.
NET INCOME (LOSS) PER SHARE RECONCILIATION
THREE MONTHS ENDED DECEMBER 31ST
------------------------------------
2001 2000
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Pro forma net income (loss)
per share, excluding non-cash
compensation, goodwill
amortization and merger costs $ 0.01 $ (0.19)
Non-cash compensation charge (0.01) (0.01)
Amortization of goodwill (0.10) (0.11)
Merger costs (0.51) -
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Net loss per share, reported (0.61) (0.31)
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THREE MONTHS ENDED DECEMBER 31ST
------------------------------------
2001 2000
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Pro forma net loss per share,
excluding non-cash compensation,
goodwill amortization, merger costs
and restructuring charges $ (0.09) $ (0.99)
Non-cash compensation charge $ (0.03) $ (0.05)
Amortization of goodwill (0.42) (0.30)
Merger costs (0.56) -
Restructuring charges (0.09) -
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Net loss per share, reported $ (1.19) $ (1.34)
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