( BW)(NY-MONSTER-WORLDWIDE)(MNST) Monster Worldwide Reports 2005 First
Quarter Results
Business Editors
NEW YORK--(BUSINESS WIRE)--April 26, 2005--Monster Worldwide, Inc.
(NASDAQ:MNST):
-- Company Reports $246.9 Million of Revenue, $20.6 Million of
Net Income and $0.17 in Diluted Earnings Per Share
-- Monster Division Increases Revenue 55% to $189.5 Million,
Reports Deferred Revenue of $240.8 Million
-- Company Announces Decision To Explore Strategic Alternatives
For Directional Marketing Business Segment
Monster Worldwide, Inc. (NASDAQ:MNST) today reported financial
results for the first quarter ended March 31, 2005.
Monster Worldwide's total revenue grew 35% to $246.9 million in
the first quarter of 2005 from $182.4 million in the first quarter of
2004. The Monster division recorded revenue of $189.5 million, a 55%
increase over last year's first quarter level of $122.2 million.
Organic revenue growth for the Company and the Monster division was
21% and 34%, respectively, compared to the year ago quarter. The
Monster division's deferred revenue balance of $240.8 million at the
end of the first quarter represents a 49% increase over last year's
first quarter and a 5% sequential gain. Net income for the first
quarter increased to $20.6 million from the $12.4 million reported in
the first quarter of the prior year. Diluted earnings per share for
the first quarter were $0.17 compared to $0.11 in the first quarter of
2004, a 55% increase.
Cash generated from operating activities in the first quarter of
2005 was $41.4 million compared with cash used of $11.0 million in the
2004 period. Free cash flow, defined as cash flow from operating
activities less capital expenditures, grew to $32.7 million compared
to a $17.7 million outflow in last year's first quarter.
"Monster Worldwide is off to a great start in 2005, with strong
financial results for the first quarter driven by a terrific global
sales performance, increased operating efficiencies at the Monster
division and continued improvement at the Advertising & Communications
division compared to a year ago," said Andrew J. McKelvey, Chairman
and Chief Executive Officer of Monster Worldwide. "We continued to
make strategic investments in our sales force, products and services
and technology during the first quarter, while also making strategic
investments to further expand our Monster franchise in North America,
Europe and other emerging international markets where significant
opportunities exist to grow revenue and profitability."
Directional Marketing Strategic Alternatives
The Company also announced that it is currently evaluating
strategic alternatives, including a possible sale, for its Directional
Marketing business segment. There can be no assurance that any
transaction or other corporate action will result from this effort.
Mr. McKelvey added, "Given our corporate strategy of focusing our
energy and resources on growing the Monster franchise across key
local, national and global markets, we believe it is an appropriate
time to evaluate strategic alternatives for our Directional Marketing
business while considering what's in the best interests of our
shareholders and other stakeholders."
Operational Highlights
-- Monster's highly successful January Jobs campaign, designed to
support its "GoLocal" sales strategy, generated strong resume
submissions from users and greater employer resume views for
the month. Monster.com received 3.3 million new and updated
resume submissions in January 2005, outperforming last
January's totals. Job applications submitted by job seekers
increased 23% year over year in January 2005, while employer
resume views registered a 28% increase over last January. The
campaign included radio advertising and Monster.com's first
ever Ultimate Career Day online which included career
inspiration and guidance, success stories, local business
features and career advice.
-- Monster Worldwide continued to expand its global footprint
with the announcement of two strategic transactions in
February. The Company acquired a 40% stake in ChinaHR.com
Holdings LTD., the owner of ChinaHR.com, one of China's
leading and most widely recognized online recruitment web
sites. ChinaHR.com has operations in ten major cities in China
and attracts approximately 3.2 million monthly registered
users and more than 280,000 corporate clients. The Company has
certain rights and obligations to acquire a majority interest
in ChinaHR.com in the event of an initial public offering or
February 1, 2008, whichever comes first.
-- Separately, Monster Worldwide acquired the French online
recruiter Emailjob.com to solidify Monster's leadership
position in France, a key European market, by uniting two of
the leading players in the French online recruitment sector.
Users of Emailjob.com will benefit from the reach of an
expanded global online careers network, while customers will
have a larger choice of qualified job candidates.
-- The Monster Employment Index (MEI) continued to reflect the
steady growth in online job demand since December 2003.
Measuring strong growth in online job availability across all
Index categories, the Index jumped to 130 in March 2005 from
122 in February 2005, establishing a new all-time high since
its inception. The Company also announced that it will expand
the Monster Employment Index in Europe with the addition of
data measuring online job demand in France, Germany, the
Netherlands, Sweden, and the United Kingdom to be released in
June 2005. In addition, it announced plans to expand the Index
in the U.S. with the addition of local market data measuring
online recruitment activity within the top 28 U.S. markets
starting in August 2005.
Business Outlook
The following forward-looking statements reflect Monster
Worldwide, Inc.'s expectations as of April 26, 2005. These
expectations involve a number of uncertainties - in particular,
assumptions about foreign currency exchange rates, future economic
conditions, plans to cultivate new business, market share and growth
rates, pricing power, capital spending, depreciation and amortization,
the tax rate and the other risk factors contained in our Annual Report
on Form 10-K for the year ended December 31, 2004. These expectations
do not include the effect of acquisitions or any possible dispositions
or implementation of accounting rule changes or other factors outside
of our control which may have an impact on future financial results.
-0-
*T
$'s in millions, except per
share amounts Second Quarter 2005 Full Year 2005
------------------------------ ------------------- ------------------
Total revenue $249 - $257 $1,030 - $1,060
Monster division revenue $192 - $197 $790 - $810
Diluted EPS from continuing
operations $0.19 - $0.20 $0.85 - $0.90
------------------------------ --------------------------------------
*T
Conference Call Information
First quarter 2005 results will be discussed on Monster
Worldwide's quarterly conference call taking place on April 26, 2005
at 10:00 AM EDT. To join the conference call, please dial in on
1-888-722-1090 at 9:50 AM EDT. For those outside the United States,
please call in on 1-212-896-6043. The call will begin promptly at
10:00 AM EDT. Individuals can also access Monster Worldwide's
quarterly conference call online through the investor information
section of the Company's website at www.monsterworldwide.com.
Interactive Metrics for Monster Worldwide and Monster are available at
www.monsterworldwide.com or www.monster.com.
About Monster Worldwide
Founded in 1967, Monster Worldwide, Inc. is the parent company of
Monster(R), the leading global online careers property. The company
also owns TMP Worldwide, the world's largest Yellow Pages advertising
agency and one of the world's largest Recruitment Advertising agency
networks. TMP Worldwide is also a provider of direct marketing
services. Headquartered in New York with approximately 5,000 employees
in 26 countries, Monster Worldwide (NASDAQ:MNST - News) is a member of
the S&P 500 Index. More information about Monster Worldwide is
available at www.monsterworldwide.com.
Monster is the leading global online careers property. A division
of Monster Worldwide, Monster works for everyone by connecting quality
job seekers at all levels with leading employers across all
industries. Founded in 1994 and headquartered in Maynard, Mass.,
Monster has 25 local language and content sites in 23 countries
worldwide. More information is available at www.monster.com or by
calling 1-800-MONSTER. To learn more about Monster's industry-leading
employer products and services, please visit
http://recruiter.monster.com.
Notes Regarding the Use of 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 such
as operating income before depreciation and amortization, net cash and
free cash flow, provide useful information to management and investors
regarding certain financial and business trends relating to its
financial condition and results of operations. In addition, the
Company's management uses these measures for reviewing the financial
results of the Company and for budgeting and planning purposes.
Operating income before depreciation and amortization is defined
as income from operations before depreciation, amortization of
intangible assets and amortization of stock based compensation. The
Company considers operating income before depreciation and
amortization to be an important indicator of its operational strength.
This measure eliminates the effects of depreciation, amortization of
intangible assets and amortization of stock based compensation from
period to period, which the Company believes is useful to management
and investors in evaluating its operating performance, as depreciation
and amortization costs are not directly attributable to the underlying
performance of the Company's business operations. Operating income
before depreciation and amortization 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 is defined as cash and cash equivalents less total debt.
Net cash is considered a measure of the Company's liquidity and
reflects the amount of cash and cash equivalents that would remain
with the Company after paying off its contractual debt obligations.
Net cash also provides information to investors regarding the effect
that each period's borrowings have on the Company's balance of cash
and cash equivalents. Net cash presented herein is a non-GAAP measure
and may not be comparable to similarly titled measures reported by
other companies.
Special Note: Except for historical information contained herein,
the statements made in this release 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,
including statements regarding the Company's strategic direction,
prospects and future results. Certain factors, including factors
outside of our control, may cause actual results to differ materially
from those contained in the forward-looking statements, including
economic and other conditions in the markets in which we operate,
risks associated with acquisitions, competition, seasonality 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 in this release by reference.
-0-
*T
MONSTER WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended March 31,
(in thousands, except per share amounts)
2005 2004
--------- ---------
Monster $189,534 $122,162
Advertising & Communications 41,522 38,097
Directional Marketing 15,882 22,092
--------- ---------
Total revenue 246,938 182,351
--------- ---------
Salaries and related 109,721 82,599
Office and general 51,944 39,869
Marketing and promotion 49,656 38,972
Amortization of intangibles 2,485 760
--------- ---------
Total operating expenses 213,806 162,200
--------- ---------
Operating income 33,132 20,151
Interest and other, net (77) (356)
--------- ---------
Income from continuing operations before income
taxes and equity interests 33,055 19,795
Income taxes 11,574 6,805
Losses in equity interests (209) -
--------- ---------
Income from continuing operations 21,272 12,990
Loss from discontinued operations, net of tax (702) (585)
--------- ---------
Net income $ 20,570 $ 12,405
========= =========
Basic earnings per share:
Earnings per share from continuing operations $ 0.18 $ 0.11
Loss per share from discontinued operations, net
of tax (0.01) -
--------- ---------
Basic earnings per share $ 0.17 $ 0.11
========= =========
Diluted earnings per share:
Earnings per share from continuing operations $ 0.17 $ 0.11
Loss per share from discontinued operations, net
of tax (0.01) -
--------- ---------
Diluted earnings per share* $ 0.17 $ 0.11
========= =========
Weighted average shares outstanding:
Basic 120,655 115,533
========= =========
Diluted 123,577 118,030
========= =========
Operating income before depreciation and
amortization:
Operating income $ 33,132 $ 20,151
Depreciation and amortization of intangibles 10,328 8,012
Amortization of stock based compensation 968 474
--------- ---------
Operating income before depreciation and
amortization $ 44,428 $ 28,637
========= =========
* - Earnings per share does not add in the 2005 period due to
rounding
*T
-0-
*T
MONSTER WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31,
(in thousands)
2005 2004
--------- ---------
Cash flows provided by (used for) operating
activities:
Net income $ 20,570 $ 12,405
--------- ---------
Adjustments to reconcile net income to cash
provided by (used for) operating activities:
Loss from discontinued operations, net of tax 702 585
Depreciation and amortization 10,328 8,012
Provision for doubtful accounts 3,684 1,229
Tax benefit on stock option exercises 581 438
Net loss on disposal and write-off of fixed
assets (71) 87
Non-cash compensation 1,447 474
Common stock issued for matching contribution to
401(k) plan and other 741 2,145
Provision for deferred income taxes 8,853 6,426
Minority interests and other (126) 24
Changes in assets and liabilities, net of purchase
transactions:
Accounts Receivable 13,698 (7,794)
Work-in-process, prepaid and other (4,708) 598
Deferred revenue 7,035 7,469
Accrued business reorganization and other costs (1,972) (3,996)
Accounts payable, accrued liabilities and
outstanding checks in excess of bank balances (19,399) (36,752)
Net cash used for operating activities of
discontinued operations - (2,373)
--------- ---------
Total adjustments 20,793 (23,428)
--------- ---------
Net cash provided by (used for) operating
activities 41,363 (11,023)
--------- ---------
Cash flows used for investing activities:
Capital expenditures (8,633) (6,695)
Payments for acquisitions and intangible assets,
net of cash acquired (42,477) (25,932)
Investment in unconsolidated affiliate (50,137) -
Cash funded for sale of subsidiaries (432) -
Sale of long-term investment 1,878 -
Net cash used for investing activities of
discontinued operations - (1,147)
--------- ---------
Net cash used for investing activities (99,801) (33,774)
--------- ---------
Cash flows provided by financing activities:
Net repayments under line of credit and capital
lease obligations (507) (184)
Proceeds from the issuance of common stock - 55,673
Cash received from the exercise of employee stock
options 3,653 2,714
--------- ---------
Net cash provided by financing activities 3,146 58,203
--------- ---------
Effects of exchange rates on cash (1,894) 227
Net increase (decrease) in cash and cash
equivalents (57,186) 13,633
Cash and cash equivalents, beginning of period 198,111 142,255
--------- ---------
Cash and cash equivalents, end of period $140,925 $155,888
========= =========
*T
-0-
*T
MONSTER WORLDWIDE, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December March 31,
2005 31, 2004 2004
----------- ----------- -----------
Assets:
Cash and cash equivalents $ 140,925 $ 198,111 $ 155,888
Accounts receivable, net 427,767 441,827 347,012
Property and equipment, net 95,571 94,558 85,289
Goodwill and intangibles, net 726,382 723,217 476,020
Other assets 131,157 85,900 92,920
Total assets of discontinued
operations - - 16,290
----------- ----------- -----------
Total Assets $1,521,802 $1,543,613 $1,173,419
=========== =========== ===========
Liabilities and Stockholders'
Equity:
Accounts payable and accrued
expenses $ 415,015 $ 435,973 $ 380,323
Accrued integration and
restructuring 8,754 9,492 6,211
Accrued business reorganization
and spin-off costs 19,623 21,595 29,962
Deferred revenue 245,192 234,167 166,751
Other liabilities 30,303 23,635 14,268
Debt 46,632 63,237 20,157
Total liabilities of discontinued
operations - - 19,453
----------- ----------- -----------
Total Liabilities 765,519 788,099 637,125
Stockholders' Equity 756,283 755,514 536,294
----------- ----------- -----------
Total Liabilities and
Stockholders' Equity $1,521,802 $1,543,613 $1,173,419
=========== =========== ===========
*T
-0-
*T
MONSTER WORLDWIDE, INC.
UNAUDITED SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands, except percentages)
First Quarter 2005
-------------------------------
Operating
Income Operating
Revenue (loss) Margin
--------------------------------
Monster
-------
North America $ 148,317 $ 40,002 27.0%
Europe 38,814 (2,027) -5.2%
Asia Pacific 2,403 (1,124) -46.8%
-------------------------------
Total Monster $ 189,534 $ 36,851 19.4%
-------------------------------
Advertising & Communications
----------------------------
North America $19,762 $ 2,630 13.3%
Europe 18,231 (484) -2.7%
Asia Pacific 3,529 (523) -14.8%
-------------------------------
Total Advertising & Communications $ 41,522 $ 1,623 3.9%
-------------------------------
Total Directional Marketing $ 15,882 (5,342) -33.6%
-------------------------------
Total Monster Worldwide $ 246,938 $ 33,132 13.4%
===============================
First Quarter 2004
-------------------------------
Operating
Income Operating
Revenue (loss) Margin
-------------------------------
Monster
-------
North America $ 104,997 $ 21,197 20.2%
Europe 16,474 (1,835) -11.1%
Asia Pacific 691 (642) -92.9%
-------------------------------
Total Monster $ 122,162 $ 18,720 15.3%
-------------------------------
Advertising & Communications
----------------------------
North America $ 17,495 $ 1,552 8.9%
Europe 17,307 (1,185) -6.8%
Asia Pacific 3,295 (173) -5.3%
-------------------------------
Total Advertising & Communications $ 38,097 $ 194 0.5%
-------------------------------
Total Directional Marketing $ 22,092 1,237 5.6%
-------------------------------
Total Monster Worldwide $ 182,351 $ 20,151 11.1%
===============================
Purchase Acquisition Information
--------------------------------
Q1 2005
---------
Acquisition revenue:
Acquisitions completed in 2005* $ 1,609
Acquisitions completed in 2004** 24,002
---------
Total $ 25,611
=========
Q1 2005
---------
Acquisition operating income (loss):
Acquisitions completed in 2005* $ (24)
Acquisitions completed in 2004** 1,929
---------
Total $ 1,905
=========
* Represents the acquisition of Emailjob SAS completed on February
11, 2005
** Represents the following acquisitions:
- Military Advantage, Inc., completed on March 1, 2004
- Jobpilot GmbH, completed on April 22, 2004
- Tickle, Inc., completed on May 21, 2004
- WebNeuron Services Limited (JobsAhead), on June 18, 2004
Summary Balance Sheet Information
---------------------------------
3/31/2005 12/31/2004 3/31/2004
-------------------------------
Net cash:
Cash and cash equivalents $ 140,925 $198,111 $ 155,888
Debt 46,632 63,237 20,157
-------------------------------
Net cash $ 94,293 $134,874 $ 135,731
===============================
Deferred revenue:
Monster $240,844 $230,097 $161,315
Other 4,348 4,070 5,436
-------------------------------
Total deferred revenue $245,192 $234,167 $166,751
===============================
Free Cash Flow Information
--------------------------
Free Cash Flow: Q1 2005 Q4 2004 Q1 2004
-------------------------------
Cash flow from operating activities $ 41,363 $ 44,092 $(11,023)
Less: Capital expenditures (8,633) (3,542) (6,695)
-------------------------------
Free cash flow $ 32,730 $ 40,550 $(17,718)
===============================
*T
--30--DB/ny*
CONTACT: Monster Worldwide, Inc.
Investors:
Robert Jones, 212-351-7032
bob.jones@monsterworldwide.com
or
Media:
David Rosa, 212-351-7067
david.rosa@monsterworldwide.com
KEYWORD: NEW YORK
INDUSTRY KEYWORD: HUMAN RESOURCES GOVERNMENT INTERNET E-COMMERCE
EARNINGS CONFERENCE CALLS
SOURCE: Monster Worldwide, Inc.
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: http://www.businesswire.com
