Monster Worldwide Reports 2005 First Quarter Results

( BW)(NY-MONSTER-WORLDWIDE)(MNST) Monster Worldwide Reports 2005 First
Quarter Results

    Business Editors

    NEW YORK--(BUSINESS WIRE)--April 26, 2005--Monster Worldwide, Inc.

    --  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.
$'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
------------------------------  --------------------------------------

    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

    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
    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
    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.

                        MONSTER WORLDWIDE, INC.
                 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

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



                        MONSTER WORLDWIDE, INC.
                 For the Three Months Ended March 31,
                            (in thousands)

                                                     2005       2004
                                                   --------- ---------
Cash flows provided by (used for) operating
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
  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
                                                   ========= =========


                        MONSTER WORLDWIDE, INC.
                            (in thousands)

                                     March 31,  December    March 31,
                                       2005     31, 2004      2004
                                   ----------- ----------- -----------

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'

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
                                   =========== =========== ===========


                        MONSTER WORLDWIDE, INC.
                  (in thousands, except percentages)

                                              First Quarter 2005
                                                   Income   Operating
                                       Revenue     (loss)     Margin
  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
                                                   Income   Operating
                                       Revenue     (loss)     Margin
  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)


    CONTACT: Monster Worldwide, Inc.
             Robert Jones, 212-351-7032
             David Rosa, 212-351-7067

    SOURCE: Monster Worldwide, Inc.

REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
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