Monster Worldwide Reports Fourth Quarter 2003 and Year End Results
NEW YORK--(BUSINESS WIRE)--Feb. 10, 2004--Monster Worldwide, Inc. (NASDAQ:MNST):
2003 Fourth Quarter Highlights
-- Total Revenue Increases to $170.8 Million
-- Diluted EPS of $0.11
-- Monster Division's Revenue Increases 9.7% to $109.3 Million
-- Monster Division's Deferred Revenue Reaches Record $153.2 Million
-- Net Cash Position Grows Sequentially to $137.5 Million
-- Cash Flow from Operating Activities of $33.4 Million
Monster Worldwide, Inc. (NASDAQ: MNST), the parent company of the leading global online careers property, Monster(R), and the world's largest Yellow Pages advertising agency and one of the world's largest Recruitment Advertising agency networks, today reported financial results for the fourth quarter and full year ended December 31, 2003.
Fourth Quarter Results
Total revenue increased to $170.8 million from $164.4 million in the fourth quarter of 2002, with the Monster division contributing $109.3 million, which represents a 9.7% increase over the $99.6 million recorded in the fourth quarter of 2002 and a 2.6% increase over the third quarter of 2003. The Monster division's deferred revenue grew for the third consecutive quarter and reached an all time record high of $153.2 million, reflecting a strong performance by the sales force in the fourth quarter. The Monster division's deferred revenue was $121.5 million for the third quarter of 2003 and $120.7 million in the fourth quarter of 2002.
Detailed quarterly comparative results for Monster Worldwide by business segment and a reconciliation of all GAAP to non-GAAP financial information in this release are presented in the financial information tables following this release. Non-GAAP measures reflect adjustments made to exclude business reorganization, spin-off and other special charges, merger and integration costs, and the tax benefits thereon.
Income from continuing operations was $12.6 million, or $0.11 per share in the fourth quarter of 2003, compared to a loss per share from continuing operations of $0.18, and non-GAAP income per share from continuing operations of $0.08 in the fourth quarter of 2002. Financial results for prior periods have been reclassified to reflect the Company's previously announced discontinued operations. Net income per share, which includes a loss from discontinued operations, was $0.11 compared to a loss per share of $0.46 in the fourth quarter of 2002.
Cash flow from operating activities was $33.4 million, up considerably from the $16.4 million generated from continuing operations in the third quarter and the $24.7 million generated from continuing operations in the fourth quarter of 2002. Free cash flow was $26.1 million for the fourth quarter of 2003, compared to $9.9 million and $16.5 million in the third quarter of 2003 and fourth quarter of 2002, respectively. Free cash flow represents cash flow from operating activities, or operating activities of continuing operations, less capital expenditures. See the financial information tables following this release for a reconciliation of free cash flow.
"Our fourth quarter performance, particularly in our Monster division, shows that our focus to drive revenue is working," said Andrew J. McKelvey, chairman and chief executive officer of Monster Worldwide. "The Monster division's sequential and solid year-over-year revenue growth, as well as record-high deferred revenue, are signs that our market is expanding and improving. We intend to build on this momentum and, as the online recruitment leader, continue to provide innovative solutions for our customers."
Full Year Results
Monster Worldwide reported total revenue of $679.6 million for the year ended December 31, 2003, compared to $700.5 million in 2002, with the Monster division contributing revenue of $424.3 million in 2003, an increase over the $414.4 million in the prior year. Income from continuing operations was $7.3 million, or $0.06 per share in 2003, compared to a loss of $15.0 million, or $0.13 per share in the full year 2002. Excluding costs associated with the Company's merger, integration, reorganization and spin-off plans, non-GAAP income from continuing operations was $45.9 million, or $0.40 per share in 2003, compared with $69.5 million, or $0.62 per share, for 2002. Non-GAAP income from continuing operations and diluted earnings per share from continuing operations for the year ended December 31, 2002 also exclude the after-tax cumulative effect of an accounting change of $428.4 million, which resulted from the implementation of Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets. All non-GAAP financial information in this release has been reconciled to the relevant GAAP measure in the financial information tables that follow this release. Net loss per share, which includes losses from discontinued operations in both periods and a cumulative effect of accounting change in 2002, was $0.72 and $4.80 in 2003 and 2002, respectively.
Balance Sheet Highlights
Cash was $142.3 million at December 31, 2003, compared to $118.1 million and $165.6 million at September 30, 2003 and December 31, 2002, respectively. Net cash was $137.5 million at December 31, 2003, compared to $111.8 million and $160.0 million at September 30, 2003 and December 31, 2002, respectively. In early January 2004, the Company raised $55.9 million in net proceeds from a public offering of 2.5 million shares of its common stock, which is not reflected in the balance sheet data presented in this release.
Operational Highlights
-- Global Marketing Campaign Launch - To further extend Monster's brand awareness, the Company launched a $125-million global marketing campaign embracing the new tagline, "Today's the Day." The U.S. program includes television, radio, print and online advertising; online promotions; affiliate marketing; and key sponsorships with the NCAA and the 2004 Summer Olympics.
-- Super Bowl XXXVIII - On February 1, 2004, Monster unveiled two 30-second ads and sponsored the Halftime Report during the Super Bowl, which was seen by a record total audience of 143.6 million viewers. Monster experienced a surge in post-game site interactions. 62,007 resumes were submitted to Monster on Monday, February 2nd, which represents a 16% increase over the 53,510 resumes submitted the Monday after last year's Game. In addition, on Tuesday, February 3rd, 59,126 resumes were posted on Monster, for a combined two-day total of over 120,000 new resumes and a two-day average of 60,567.
-- Key Vertical Initiatives - Monster Worldwide continues to gain momentum in key vertical initiatives, including:
-- Government - Monster Government Solutions (MGS) was aided by a further unified sales effort between MGS, QuickHire and TMP Worldwide Advertising & Communications. Key client engagements secured include the Internal Revenue Service, Federal Bureau of Investigation, and the U.S. Departments of Agriculture, Health and Human Services, and Labor.
-- Healthcare - The number of healthcare resumes submitted in the fourth quarter rose 125% from the first quarter of 2003. The Company appointed Jim Burns as vice president and general manager of Monster Healthcare to oversee and further grow the healthcare business. -- Hourly & Skilled
-- Hourly & Skilled jobs posted to Monster in the fourth quarter represented 19% of the total job postings - a 21% increase over the previous quarter. During this period, more than 421,000 Hourly & Skilled job seekers registered, bringing Monster's total number of hourly and skilled job seekers to 2.8 million.
-- Monster Networking - The subscription-based professional networking service is designed to help the more than 90% of job seekers who leverage networking during their job search to improve their chances of finding the right job and better manage their careers. The service was launched in January 2004 to all 'My Monster' members.
-- Strategic Alliances - Monster established an alliance with the NCAA to create a Web site (NCAA Career Coach) to assist student-athletes with career exploration, job searches, and career guidance. Monster also aligned with Women's Sports Services to create a co-branded online career center that will assist women, minorities and other under-represented communities in pursuing sports-related careers. In addition, Monster announced a strategic recruiting partnership to become the exclusive online career resource of the NAACP. Outlook
As it enters the year with strong momentum, the Company anticipates that it will report year over year revenue and earnings growth in 2004 led by continuing strong performance in the Monster division. Monster Worldwide believes that it is well positioned to benefit from an improvement in the job market in 2004 and has made the strategic decision to step up its advertising and increase its field sales and telesales forces. As a result, earnings per share in the first quarter of 2004 are anticipated to be modestly higher than the $0.09 reported for the first quarter 2003 on sequentially higher revenue.
Conference Call Information
Fourth quarter 2003 and full year results will be discussed on Monster Worldwide's quarterly conference call taking place on February 11, 2004. To join the conference call, please dial in on 1-800-746-1483 at 9:50 AM EST. For those outside the United States, please call in on 1-212-346-6590. The call will begin promptly at 10:00 AM EST. 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 4,300 employees in 19 countries, Monster Worldwide (NASDAQ: MNST) is a member of the S&P 500 Index. More information about Monster Worldwide is available at www.monsterworldwide.com.
Founded in 1994 and headquartered in Maynard, Mass., Monster is the leading global careers website, recording over 41.6 million visits during the month of December 2003, according to independent research conducted by I/PRO. Monster connects the most progressive companies with the most qualified career-minded individuals, offering innovative technology and superior services that give them more control over the recruiting process. The Monster global network consists of local content and language sites in the United States, United Kingdom, Canada, the Netherlands, Belgium, Singapore, Hong Kong, France, Scotland, Germany, Ireland, Spain, Luxembourg, India, Italy, Sweden, Norway, Denmark, Switzerland, and Finland. Monster is the official online career management services sponsor of the 2004 U.S. Olympic Team. More information about Monster is available at http://www.monster.com/or by calling 1-800-MONSTER.
Financial Information Tables
On March 31, 2003, Monster Worldwide completed the spin-off of its eResourcing and Executive Search business units as a new publicly traded company known as Hudson Highland Group, Inc. (NASDAQ: HHGP), and in August 2003, the Company's Monster division terminated its joint venture arrangement in Australia and New Zealand. As a result, the financial information tables following this release present the results of Hudson Highland Group, Inc. and the disposition of the terminated joint venture as discontinued operations for all periods presented. Monster Worldwide's 2003 and 2002 financial results from continuing operations reflect the results of the Company's Monster, Advertising & Communications, and Directional Marketing business segments.
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 and may be different from non-GAAP measures reported by other companies. The Company believes that its presentation of non-GAAP measures such as non- GAAP operating income, non-GAAP earnings per share, adjusted EBITDA, 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 budget planning purposes.
Non-GAAP operating income, income from continuing operations and related per share information exclude merger, integration, business reorganization, spin-off and other special charges and any tax benefits thereon. Non-GAAP operating income is a measure used by the Company in reviewing business trends and the financial results of its reportable segments. These measures are also the primary basis upon which the Company prepares its budgets and forecasts.
Adjusted EBITDA is one of the measures that determines the Company's ability to borrow under its $100 million credit facility. If the Company failed to meet the required level of adjusted EBITDA as defined in its credit agreement, the lender may terminate the agreement, requiring the Company to repay any outstanding amount. EBITDA and adjusted EBITDA are non-GAAP measures and should not be considered in isolation, or as a substitute for, operating income, cash flows from operating activities or as a measure of the Company's profitability or liquidity. EBITDA and adjusted EBITDA reflected herein may not be comparable with similarly titled measures reported by other companies.
Free cash flow is defined as cash flow from operating activities or operating activities of continuing operations, 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 after subtracting 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.
OPERATING SEGMENT DATA
(in thousands)
(unaudited)
| Three months ended December 31, 2003 | Monster | Advertising & Communications | Directional Marketing | Total |
| Revenue | $109,325 | $35,349 | $26,104 | $170,778 |
| Operating income (loss) | $23,339 | $(3,295) | $(651) | $19,393 |
| Operating margin | 21.3% | -9.3% | -2.5% | 11.4% |
| % Interactive revenue | 100.0% | 30.4% | 21.4% | 73.6% |
| Three months ended December 31, 2002 | Monster | Advertising & Communications | Directional Marketing | Total |
| Revenue | $99,615 | $38,130 | $26,646 | $164,391 |
| Operating loss Add back: Business reorganization, spin-off and other special charges | (7,667) 22,640 | (14,121) 11,479 | (3,742) 5,061 | (25,530) 39,180 |
| Non-GAAP operating income (loss) | $14,973 | $(2,642) | $1,319 | $13,650 |
| Non-GAAP operating margin | 15.0% | -6.9% | 5.0% | 8.3% |
| % Interactive revenue | 100.0% | 23.4% | 19.9% | 69.4% |
| Year ended December 31, 2003 | Monster | Advertising & Communications | Directional Marketing | Total |
| Revenue | $424,313 | $138,443 | $116,884 | $679,640 |
| Operating income loss Add back: Business reorganization, spin-off and other special charges | 56,986 28,606 | (31,897) 11,766 | (284) 7,550 | 24,805 47,922 |
| Non-GAAP operating income (loss) | $85,592 | $(20,131) | $7,266 | $72,727 |
| Non-GAAP operating margin | 20.2% | -14.5% | 6.2% | 10.7% |
| % Interactive revenue | 100.0% | 24.0% | 18.0% | 70.4% |
| Year ended December 31, 2002 | Monster | Advertising & Communications | Directional Marketing | Total |
| Revenue | $414,367 | $166,852 | $119,321 | $700,540 |
| Operating income loss Add back: Business reorganization, spin-off and other special charges | 28,005 49,063 | (35,189) 37,021 | 534 20,914 | (6,650) 106,998 |
| Non-GAAP operating income (loss) | $77,068 | $1,832 | $21,448 | $100,348 |
| Non-GAAP operating margin | 18.6% | 1.1% | 18.0% | 14.3% |
| % Interactive revenue | 100.0% | 19.1% | 16.1% | 66.5% |
MONSTER WORLDWIDE, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands, except percentages and per share amounts)
(unaudited)
SUPPLEMENTAL STATEMENT OF OPERATIONS INFORMATION:
-------------------------------------------------------------------------------------------------
| Three months ended December 31 | Q4 2003 | Q4 2002 | Inc./(Dec.) | ,% Change |
| Revenue: Monster Advertising & Communications Directional Marketing | $109,325 35,349 26,104 | $99,615 38,130 26,646 | $9,710 (2,781) (542) | 9.7% -7.3% -2.0% |
| Total | $170,778 | $164,391 | $6,387 | 3.9% |
| Operating income (loss): Monster Advertising & Communications Directional Marketing | $23,339 (3,295) (651) | $(7,667) (14,121) (3,742) | $31,006 10,826 3,091 | 404.4% 76.7% 82.6% |
| Total | $19,393 | $(25,530) | $44,923 | 176.0% |
| 2003 GAAP operating income (loss) versus 2002 Non-GAAP operating income (loss): Monster Advertising & Communications Directional Marketing | Q4 2003 23,339 (3,295) (651) | Q4 2002 $14,973 (2,642) 1,319 | $8,366 (653) (1,970) | 55.9% -24.7% -149.4% |
| Total | 19,393 | $13,650 | $5,743 | 42.1% |
| Operating margin : Monster Advertising & Communications Directional Marketing | 21.3% -9.3% -2.5% | -7.7% -37.0% -14.0% | ||
| Total | 11.4% | -15.5% | ||
| 2003 GAAP operating margin vs. 2002 Non-GAAP operating margin: Monster Advertising & Communications Directional Marketing | 21.3% -9.3% -2.5% | 15.0% -6.9% 5.0% | ||
| Total | 11.4% | 8.3% |
| Q4 2003 | Q4 2002 | Inc./(Dec.) | % Change | |
| Income (loss) from continuing operations | $12,569 | $(20,415) | $32,984 | 161.6% |
| Non-GAAP income from continuing operations | N/A | 9,354 | N/A | N/A |
| Net income (loss) | 12,132 | (51,099) | 63,231 | 123.7% |
| Diluted income (loss) per share from continuing operations | 0.11 | (0.18) | 0.29 | 161.1% |
| Non-GAAP diluted earnings per share from continuing operations | N/A | 0.08 | N/A | N/A |
| Diluted net income (loss) per share | 0.11 | (0.46) | 0.57 | 123.9% |
| EBITDA | 26,311 | (49,488) | 75,799 | 153.2% |
| Adjusted EBITDA | 26,748 | 20,376 | 6,372 | 31.3% |
MONSTER WORLDWIDE, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands, except percentages and per share amounts)
(unaudited)
SUPPLEMENTAL STATEMENT OF OPERATIONS INFORMATION:
-------------------------------------------------------------------------------------------------
| Year ended December 31 | FY 2003 | FY 2002 | Inc./(Dec.) | ,% Change |
| Revenue: | ||||
| Monster | $424,313 | $414,367 | $9,946 | 2.4% |
| Advertising & Communications | 138,443 | 166,852 | (28,409) | -17.0% |
| Directional Marketing | 116,884 | 119,321 | (2,437) | -2.0% |
| Total | $679,640 | $700,540 | $(20,900) | -3.0% |
| Operating income (loss): | ||||
| Monster | $56,986 | $28,005 | $28,981 | 103.5% |
| Advertising & Communications | (31,897) | (35,189) | 3,292 | 9.4% |
| Directional Marketing | (284) | 534 | (818) - | 153.2% |
| Total | $24,805 | $(6,650) | $31,455 | 473.0% |
| Non-GAAP operating income (loss): | ||||
| Monster | $85,592 | $77,068 | $8,524 | 11.1% |
| Advertising & Communications | (20,131) | 1,832 - | (21,963) | 1198.9% |
| Directional Marketing | 7,266 | 21,448 | (14,182) | -66.1% |
| Total | $72,727 $100,348 $(27,621) -27.5% | |||
| FY 2003 FY 2002 | ||||
| Operating margin: Monster 13.4% 6.8% | ||||
| Advertising & Communications -23.0% -21.1% | ||||
| Directional Marketing -0.2% 0.4% | ||||
| Total | 3,6% | -0,9% | ||
| Non-GAAP operating margin: | ||||
| Monster | 20.2% | 18.6% | ||
| Advertising & Communications | -14.5% | 1.1% | ||
| Directional Marketing | 6.2% | 18.0% | ||
| Total | 10.7% | 14.3% | ||
| FY 2003 | FY 2002 | Inc./(Dec.) | % Change | |
| Income (loss) from continuing operations | $7,321 | $(15,022) | $22,343 | 148.7% |
| Non-GAAP income from continuing operations | 45,897 - | 69,474 | (23,577) | 33.9% |
| Net income (loss) | (81,864) | (534,896) | 453,032 | 84.7% |
| Diluted income (loss) per share from continuing operations | 0.06 | (0.13) | 0.19 | 146.2% |
| Non-GAAP diluted earnings per share from continuing operations | 0.40 | 0.62 | (0.22) - | 35.5% |
| Diluted net income (loss) per share | (0.72) | (4.80) | 4.08 | 85.0% |
| EBITDA | (36,792) | (491,784) | 454,992 | 92.5% |
| Adjusted EBITDA | 100,315 | 135,088 | (34,773) | -25.7% |
MONSTER WORLDWIDE, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands, except percentages and per share amounts)
(unaudited)
SUMMARY BALANCE SHEET INFORMATION:
-------------------------------------------------------------------
| 12/31/2003 | 9/30/2003 | Inc./(Dec.) | % Change | |
| Net cash: | ||||
| Cash and cash equivalents $142,255 $118,115 $24,140 20.4% | ||||
| Debt 4,710 6,305 (1,595) -25.3% | ||||
| Net cash $137,545 $111,810 $25,735 23.0% | ||||
| Deferred revenue: | ||||
| Monster $153,154 $121,463 $31,690 26.1% | ||||
| Other 23,970 22,561 1,410 6.2% | ||||
| Total deferred revenue $177,124 $144,024 $33,100 23.0% | ||||
| 12/31/2003 12/31/2002 Inc./(Dec.) % Change | ||||
| Net cash: | ||||
| Cash and cash equivalents $142,255 $165,648 $(23,393) -14.1% | ||||
| Debt 4,710 5,631 (921) -16.4% | ||||
| Net cash $137,545 $160,017 $(22,472) -14.0% | ||||
| Deferred revenue: | ||||
| Monster $153,154 $120,682 $32,472 26.9% | ||||
| Other 23,970 28,684 (4,714) -16.4% | ||||
| Total deferred revenue $177,124 $149,366 $27,758 18.6% | ||||
| Free Cash Flow: Q4 2003 Q3 2003 Q4 2002 | ||||
| Cash flow from operating activities $33,379 $13,284 $10,395 | ||||
| Add back: Cash used in discontinued operations - 3,091 14,290 | ||||
| Cash flow from operating activities of continuing operations 33,379 16,375 24,685 | ||||
| Less: Capital expenditures (7,285) (6,437) (8,140) | ||||
| Free cash flow and free cash flow from continuing operations $26,094 $9,938 $16,545 | ||||
SUMMARY CASH FLOW INFORMATION FOR THE
THREE MONTHS ENDED DECEMBER 31, 2003:
Cash at September 30,
2003 $118,115
--------------------------------- --------------
Cash payments for
integration and
business
reorganization costs,
including
payments to HH Group,
Inc. (7,864)
Cash provided by all
other operating
activities of
continuing operations 41,244
----------------------------------- ---------------
Cash provided by
operating activities 33,380
----------------------------------- ---------------
Cash paid for capital
expenditures (7,285)
Cash paid in connection
with purchase
transactions and
intangible assets, net (6,956)
---------------------------------- ---------------
Cash used in investing
activities (14,241)
--------------------------------- ---------------
Net payments on debt (918)
Cash received from
exercise of
employee stock options 4,433
-------------------------------- ---------------
Cash provided by
financing activities 3,515
-------------------------------- ---------------
Effects of exchange
rates 1,486
-------------------------------- ---------------
Cash at December 31,
2003 $142,255
================= ===========
MONSTER WORLDWIDE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Twelve Months Ended December 31,
(in thousands, except per share amounts)
(unaudited)
| 2003 | 2002 | |
| Revenue: | ||
| Monster | $424,313 | $414,367 |
| Advertising & Communications | 138,443 | 166,852 |
| Directional Marketing | 116,884 | 119,321 |
| Total revenue | 679,640 | 700,540 |
| Operating expenses: | ||
| Salaries and related | 323,204 | 313,133 |
| Office and general | 158,841 | 157,621 |
| Marketing and promotion | 122,468 | 127,033 |
| Merger and integration | - | 3,178 |
| Business reorganization, spin-off and other special charges | 47,922 | 103,820 |
| Amortization of intangibles | 2,400 | 2,405 |
| Total operating expenses | 654,835 | 707,190 |
| Operating income (loss) | 24,805 | (6,650) |
| Interest and other, net | (1,184) | 1,477 |
| Income from continuing operations before income taxes and accounting change | 23,621 | (5,173) |
| Income taxes | 16,300 | 9,849 |
| Income (loss) from continuing operations before accounting change | 7,321 | (15,022) |
| Loss from discontinued operations, net of tax | (89,185) | (91,500) |
| Loss before accounting change | (81,864) | (106,522) |
| Cumulative effect of accounting change, net of $20,000 tax benefit | - | (428,374) |
| Net loss | $(81,864) | $(534,896) |
| Basic earnings (loss) per share: | ||
| Income (loss) from continuing operations per share before accounting change | $0.07 | $(0.13) |
| Loss from discontinued operations per share, net of tax | (0.80) | (0.82) |
| Cumulative effect of accounting change per share, net of tax benefit | - | (3.85) |
| Basic loss per share | $(0.73) | $(4.80) |
| Diluted earnings (loss) per share: | ||
| Income (loss) from continuing operations per share before accounting change | $0.06 | $(0.13) |
| Loss from discontinued operations per share, net of tax | (0.78) | (0.82) |
| Cumulative effect of accounting change per share, net of tax benefit | - | (3.85) |
| Diluted loss per share | $(0.72) | $(4.80) |
| Weighted average shares outstanding: Basic | 112,124 | 111,339 |
| Diluted | 114,087 | 111,339 |
MONSTER WORLDWIDE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Twelve Months Ended December 31,
(in thousands, except per share amounts)
(unaudited)
| 2003 | 2002 | |
| Reconciliation of income (loss) from continuing operations to non-GAAP income from continuing operations: | ||
| Income(loss) from continuing operations before accounting change | $7,321 $ | (15,022) |
| Merger, integration, business reorganization, spin off and other special charges | 47,922 | 106,998 |
| Tax benefit on merger, integration, business reorganization, spin-off and other special charges | (9,346) | (22,502) |
| Non-GAAP income from continuing operations | $45,897 | $69,474 |
| Non-GAAP diluted income from continuing operations per share | ||
| Income (loss) from continuing operations per share before accounting change | $0.06 | $(0.13) |
| Merger, integration, business reorganization, spin off and other special charges per share | 0.42 | 0.95 |
| Tax benefit per share on merger, integration, business reorganization, spin-off and other special charges | (0.08) | (0.20) |
| Non-GAAP income from continuing operations per share | $0.40 | $0.62 |
| Weighted average diluted shares outstanding used in calculating Non-GAAP income from continuing operations per share | 114,087 | 112,782 |
| Adjusted EBITDA: | ||
| Net loss | $(81,864) | $(534,896) |
| Interest (income) expense, net | 724 | (640) |
| Income taxes | 16,300 | 9,849 |
| Depreciation and amortization | 28,048 | 33,903 |
| EBITDA | (36,792) | (491,784) |
| Add back: Loss from discontinued operations, net of tax | 89,185 | 91,500 |
| Cumulative affect of accounting change, net of tax benefit | - | 428,374 |
| Merger, integration, business reorganization, spin-off and other special charges | 47,922 | 106,998 |
| Adjusted EBITDA | $100,315 | $135,088 |
MONSTER WORLDWIDE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended December 31,
(in thousands, except per share amounts)
(unaudited)
| 2003 | 2002 | |
| Revenue: | ||
| Monster | $109,325 | $99,615 |
| Advertising & Communications | 35,349 | 38,130 |
| Directional Marketing | 26,104 | 26,646 |
| Total revenue | 170,778 | 164,391 |
| Operating expenses: | ||
| Salaries and related | 86,439 | 78,871 |
| Office and general | 38,800 | 40,567 |
| Marketing and promotion | 25,561 | 30,761 |
| Merger and integration | - | (1,514) |
| Business reorganization and other special charges | - | 40,694 |
| Amortization of intangibles | 585 | 542 |
| Total operating expenses | 151,385 | 189,921 |
| Operating income (loss) | 19,393 | (25,530) |
| Interest and other, net | (350) | 992 |
| Income (loss) from continuing operations before income taxes | 19,043 | (24,538) |
| Income taxes | 6,474 | (4,123) |
| Income (loss) from continuing operations | 12,569 | (20,415) |
| Loss from discontinued operations, net of tax | (437) | (30,684) |
| Net income (loss) | $12,132 | $(51,099) |
| Basic earnings (loss) per share: | ||
| Income (loss) from continuing operations per share | $0.11 | $(0.18) |
| Loss from discontinued operations per share, net of tax | - | (0.28) |
| Basic earnings (loss) per share | $0.11 | $(0.46) |
| Diluted earnings (loss) per share: | ||
| Income (loss) from continuing operations per share | $0.11 | $(0.18) |
| Loss from discontinued operations per share, net of tax | -- | (0.28) |
| Diluted earnings (loss) per share | $0.11 | $(0.46) |
| Weighted average shares outstanding: Basic | 112,838 | 111,246 |
| Diluted | 115,514 | 111,246 |
MONSTER WORLDWIDE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended December 31,
(in thousands, except per share amounts)
(unaudited)
| 2003 | 2002 | |
| Reconciliation of income (loss) from continuing operations to non-GAAP income from continuing operations: | ||
| Income (loss) from continuing operations | $12,569 | $(20,415) |
| Merger, integration, business reorganization, spin off and other special charges | - | 39,180 |
| Tax benefit on merger, integration, business reorganization, spin-off and other special charges | - | (9,411) |
| Non-GAAP income from continuing operations | N/A* | $9,354 |
| Non-GAAP diluted income from continuing operations per share: | ||
| Income (loss) from continuing operations per share | 0.11 | (0.18) |
| Merger, integration, business reorganization, spin off and other special charges per share | - | 0.35 |
| Tax benefit per share on merger, integration, business reorganization, spin-off and other special charges | - | (0.09) |
| Non-GAAP diluted income from continuing operations per share | N/A* | $0.08 |
| Weighted average diluted shares outstanding used in calculating Non-GAAP income from continuing operations per share | 115,514 | 112,025 |
| Adjusted EBITDA: | ||
| Net income (loss) | $12,132 | $(51,099) |
| Interest (income) expense, net | - | (276) |
| Income taxes | 6,474 | (4,123) |
| Depreciation and amortization | 7,705 | 6,010 |
| EBITDA | 26,311 | (49,488) |
| Add back: | ||
| Loss from discontinued operations, net of tax | 437 | 30,684 |
| Cumulative affect of accounting change, net of tax benefit | - | - |
| Merger, integration, business reorganization, spin- off and other special charges | - | 39,180 |
| Adjusted EBITDA | $26,748 | $20,376 |
* Not applicable
MONSTER WORLDWIDE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
| December 31, 2003 | September 30, 2003 | December 31, 2002 | |
| Assets: Cash and cash equivalents | $142,255 $ | $118,115 | $165,648 |
| Accounts receivable, net | 349,401 | 343,900 | 306,773 |
| Property and equipment, net | 86,022 | 87,420 | 123,502 |
| Intangibles, net | 448,022 | 423,279 | 386,704 |
| Other assets | 96,579 | 85,653 | 132,858 |
| Total assets of discontinued operations | - | - | 515,310 |
| Total Assets | $1,122,279 | $1,058,367 | $1,630,795 |
| Liabilities and Stockholders' Equity: | |||
| Accounts payable and accrued expenses | $419,489 | $425,868 | $425,567 |
| Accrued integration and restructuring | 6,688 | 7,373 | 12,355 |
| Accrued business reorganization and spin-off costs | 33,958 | 39,322 | 60,000 |
| Deferred revenue | 177,124 | 144,024 | 149,366 |
| Other liabilities | 12,118 | 6,591 | 9,219 |
| Debt | 4,710 | 6,305 | 5,631 |
| Total liabilities of discontinued operations | - | - | 155,218 |
| Total Liabilities | 654,087 | 629,483 8 | 17,356 |
| Stockholders' Equity | 468,192 | 428,884 | 813,439 |
| Total Liabilities and Stockholders' Equity | $1,122,279 | $1,058,367 | $1,630,795 |
Media David Rosa,
212-351-7067