( BW)(NY-MONSTER-WORLDWIDE)(MNST) Monster Worldwide Reports 2005 Third
Quarter Results; Diluted Earnings Per Share from Continuing Operations
Increases 67% to $0.25; Income from Continuing Operations Grows 74% to
$31 Million with Revenue Increasing 26% to $249 million
Business Editors
NEW YORK--(BUSINESS WIRE)--Oct. 26, 2005--Monster Worldwide, Inc.
(NASDAQ:MNST):
-- Cash Generated from Operating Activities of $66 Million with
Free Cash Flow up 55% to $58 Million
-- Monster Division Revenue Grows 31% to $207 Million
Monster Worldwide, Inc. (NASDAQ:MNST) today reported financial
results for the third quarter and nine months ended September 30,
2005.
Total revenue increased 26% to $249.3 million in the third quarter
of 2005 from $198.6 million in last year's third quarter, while
revenue at the Monster division grew 31% to $206.8 million over the
$157.7 million recorded in the same period of 2004. The Company's
Advertising & Communications business contributed $42.5 million to
total revenue, a 4% increase over last year's comparable quarter.
Organic revenue growth for the Company and the Monster division
was 25% and 30%, respectively, compared to last year's third quarter.
Income from continuing operations for the third quarter increased 74%
to $30.8 million from $17.7 million in the 2004 third quarter. Diluted
earnings per share from continuing operations increased 67% to $0.25
over $0.15 for the third quarter of 2004. Net income was $30.8
million, resulting in diluted earnings per share of $0.25, a 47%
increase over $0.17 for the third quarter of 2004. The Monster
division's deferred revenue balance at September 30, 2005 was $246.8
million, a 26% increase over last year's third quarter.
Cash generated from operating activities in the third quarter of
2005 was $66.3 million compared with $42.1 million for the comparable
year ago quarter. Free cash flow, (a non-GAAP measure) defined as cash
flow from operating activities less capital expenditures, increased to
$57.8 million, a 55% increase, compared to $37.3 million in the third
quarter of 2004. At the end of the third quarter of 2005, Monster
Worldwide's net cash position, defined as cash and cash equivalents
less debt, totaled $269 million, up from $135 million at December 31,
2004.
"We are extremely pleased to report that the momentum we
experienced in the first half of the year continued in the third
quarter and our outlook remains strong. One of the many highlights of
the quarter is the strong operating leverage we demonstrated in the
North American Monster division, which contributed to our significant
increase in earnings. Once again, I would like to congratulate our
global sales force for turning in another terrific performance," said
Andrew J. McKelvey, Chairman and CEO, of Monster Worldwide. "We
believe Monster's high brand awareness, effective sales force, and
expanding global presence position us well to continue to drive strong
and consistent financial results. We recently took an important step
forward in expanding our global footprint with the recent acquisition
of JobKorea, the premier online recruitment website in South Korea.
The addition of JobKorea to the Monster family strengthens our leading
position in the dynamic Asian human capital market and expands the
Company's strategy of leveraging Monster's online recruiting
expertise, scale and technology on a global basis."
Nine Months Results
Monster Worldwide reported total revenue of $720.3 million for the
nine months ended September 30, 2005 compared to $541.2 million in the
first nine months of last year. Income from continuing operations was
$79.7 million, or $0.64 per diluted share compared to $43.2 million,
or $0.36 per diluted share in last year's comparable period. Net
income for the first nine months of 2005 was $71.0 million up from
$48.6 million in the first nine months of 2004. Diluted earnings per
share was $0.57 compared to $0.41 reported for the first nine months
of 2004.
Recent Developments/Operational Highlights
-- In October, Monster Worldwide expanded its global presence
with the acquisition of JobKorea (www.jobkorea.co.kr), the
premier online recruitment web site in South Korea. JobKorea
serves more than three million registered users and utilizes
an advanced eCommerce system and posting model, which
emphasizes ease and self-service. The acquisition is
consistent with Monster's strategy to expand its reach and
capabilities in key Asian countries that represent a growing
force in the world's employment markets. Monster Worldwide's
other Asian operations serve India, Singapore, and Hong Kong
and the Company holds a 40% equity investment in ChinaHR.com,
which serves the region's largest and fastest growing Internet
economy.
-- During the 2005 third quarter, Monster launched a series of
enhancements on Monster.com to help job seekers find and apply
for more jobs in less time, while helping to provide employers
with a more robust pool of quality applicants. The new search
and application technology is designed to facilitate a better
match by identifying jobs that best fit seekers'
qualifications and career goals. A new feature includes
QUICKApply, which allows users to apply for a job with the
click of a button, automatically sending all the essential
information to an employer, including resume, cover letter and
target job title. Other enhancements include Recommended Jobs
and Also Applied To, which present seekers with a customized
listing of new, highly relevant job postings.
Supplemental Financial Information
The Company has made available certain supplemental financial
information, in a separate document, that can be accessed directly at
http://www.monsterworldwide.com/Q305.pdf or through the Company's
Investor Relations website at http://ir.monsterworldwide.com.
Business Outlook
The following forward-looking statements reflect Monster
Worldwide's expectations as of October 26, 2005. These expectations do
not include the effect of any future acquisitions or dispositions,
implementation of accounting rule changes or factors outside of our
control, which may have an impact on future financial results and are
subject to the Special Note regarding forward-looking statements
elsewhere in this release.
-0-
*T
$'s in millions, except per share Fourth
amounts Quarter 2005 Full Year 2005
---------------------------------------- -------------- --------------
Total revenue $260 - $267 $980 - $987
Monster division revenue $218 - $223 $812 - $818
Diluted EPS from continuing operations $0.27 - $0.28 $0.91 - $0.92
---------------------------------------- -----------------------------
*T
Conference Call Information
Third quarter 2005 results will be discussed on Monster
Worldwide's quarterly conference call taking place on October 26, 2005
at 10:00 AM EST. To join the conference call, please dial in on
888-568-1946 at 9:50 AM EST. For those outside the United States,
please call in on 212-341-7084. 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.
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, one of the world's largest Recruitment
Advertising agency networks. Headquartered in New York with
approximately 4,800 employees in 26 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.
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 26 local language and content sites in 24 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.
Note on Discontinued Operations
On June 1, 2005, the Company disposed of its Directional Marketing
segment. As a result, substantially all the operating results of such
businesses have been reclassified to discontinued operations for all
periods presented. Entities that were retained are now included with
the results of the Company's Advertising & Communications
international business for all periods presented.
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 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. 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.
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
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2005 2004 2005 2004
--------- --------- --------- ---------
Revenue $249,288 $198,619 $720,320 $541,157
----------------------------- --------- --------- --------- ---------
Salaries and related 109,332 92,124 315,452 245,946
Office and general 45,931 42,706 139,175 116,454
Marketing and promotion 46,296 37,349 142,434 113,280
----------------------------- --------- --------- --------- ---------
Total operating expenses 201,559 172,179 597,061 475,680
----------------------------- --------- --------- --------- ---------
Operating income 47,729 26,440 123,259 65,477
Interest and other, net 715 (227) 1,691 (942)
----------------------------- --------- --------- --------- ---------
Income from continuing
operations before income
taxes and equity interests 48,444 26,213 124,950 64,535
Income taxes 16,955 8,532 43,990 21,295
Losses in equity interests (641) - (1,217) -
----------------------------- --------- --------- --------- ---------
Income from continuing
operations 30,848 17,681 79,743 43,240
Income (loss) from
discontinued operations, net
of tax (27) 2,307 (8,776) 5,393
----------------------------- --------- --------- --------- ---------
Net income $ 30,821 $ 19,988 $ 70,967 $ 48,633
============================= ========= ========= ========= =========
Basic earnings per share:
Earnings per share from
continuing operations $ 0.25 $ 0.15 $ 0.66 $ 0.37
Income (loss) per share from
discontinued operations, net
of tax - 0.02 (0.07) 0.05
----------------------------- --------- --------- --------- ---------
Basic earnings per share(a) $ 0.25 $ 0.17 $ 0.59 $ 0.41
============================= ========= ========= ========= =========
Diluted earnings per share:
Earnings per share from
continuing operations $ 0.25 $ 0.15 $ 0.64 $ 0.36
Income (loss) per share from
discontinued operations, net
of tax - 0.02 (0.07) 0.05
----------------------------- --------- --------- --------- ---------
Diluted earnings per share $ 0.25 $ 0.17 $ 0.57 $ 0.41
============================= ========= ========= ========= =========
Weighted average shares
outstanding:
Basic 122,128 118,584 121,283 117,188
============================= ========= ========= ========= =========
Diluted 124,757 120,351 123,798 119,392
============================= ========= ========= ========= =========
Operating income before
depreciation and
amortization:
Operating income $ 47,729 $ 26,440 $123,259 $ 65,477
Depreciation and amortization
of intangibles 9,285 9,972 27,744 24,806
Amortization of stock based
compensation 540 737 2,042 2,083
----------------------------- --------- --------- --------- ---------
Operating income before
depreciation and
amortization $ 57,554 $ 37,149 $153,045 $ 92,366
============================= ========= ========= ========= =========
(a) - Earnings per share does not add in the nine month 2004 period
due to rounding
*T
-0-
*T
MONSTER WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2005 2004 2005 2004
--------- --------- --------- ---------
Cash flows provided by
operating activities:
Net income $ 30,821 $ 19,988 $ 70,967 $ 48,633
---------------------------- --------- --------- --------- ---------
Adjustments to reconcile net
income to net cash provided
by operating activities:
(Income) Loss from
discontinued operations,
net of tax 27 (2,307) 8,776 (5,393)
Depreciation and
amortization of intangibles 9,285 9,972 27,744 24,806
Provision for doubtful
accounts 3,597 1,156 7,976 3,457
Tax benefit on stock option
exercises and stock based
compensation 4,874 83 8,714 1,688
Non-cash compensation 540 737 2,521 2,083
Common stock issued for
matching contribution
to 401(k) plan 835 202 2,840 3,676
Deferred income taxes 1,625 (117) 11,234 14,634
Minority interests and
other 915 62 1,428 394
Changes in assets and
liabilities, net of
business combinations:
Accounts Receivable (7,463) (29,334) (7,367) (60,631)
Prepaid and other (1,359) 3,865 (23,473) 12,152
Deferred revenue 2,351 16,528 12,692 28,180
Accounts payable, accrued
liabilities and other 21,081 14,180 56,212 17,970
Net cash used for operating
activities of discontinued
operations (793) 7,091 (19,643) (43,206)
----------------------------- --------- --------- --------- ---------
Total adjustments 35,515 22,118 89,654 (190)
----------------------------- --------- --------- --------- ---------
Net cash provided by
operating activities 66,336 42,106 160,621 48,443
----------------------------- --------- --------- --------- ---------
Cash flows used for investing
activities:
Capital expenditures (8,543) (4,788) (24,096) (13,826)
Payments for acquisitions
and intangible assets, net
of cash acquired (2,265) (1,813) (51,752) (117,926)
Investment in
unconsolidated affiliate - - (50,137) -
Sale of long- term
investment 125 - 2,003 -
Net proceeds (payments) from
(for) sale of businesses (658) - 49,091 -
Net cash used for investing
activities of discontinued
operations - (1,375) (710) (8,870)
----------------------------- --------- --------- --------- ---------
Net cash used for investing
activities (11,341) (7,976) (75,601) (140,622)
----------------------------- --------- --------- --------- ---------
Cash flows provided by
financing activities:
Payments on capital lease
obligations (302) (339) (2,137) (709)
Proceeds from exercise of
employee stock options 23,323 978 37,709 11,743
Proceeds from the issuance
of common stock - - - 55,673
Repurchase of common stock - - (1,398) -
----------------------------- --------- --------- --------- ---------
Net cash provided by
financing activities 23,021 639 34,174 66,707
----------------------------- --------- --------- --------- ---------
Effects of exchange rates on
cash (125) 239 (3,596) 429
Net increase (decrease) in
cash and cash equivalents 77,891 35,008 115,598 (25,043)
Cash and cash equivalents,
beginning of period 235,818 82,204 198,111 142,255
----------------------------- --------- --------- --------- ---------
Cash and cash equivalents,
end of period $313,709 $117,212 $313,709 $117,212
============================= ========= ========= ========= =========
Free cash flow:
Net cash provided by operating
activities $ 66,336 $ 42,106 $160,621 $ 48,443
Less: Capital Expenditures (8,543) (4,788) (24,096) (13,826)
----------------------------- --------- --------- --------- ---------
Free cash flow $ 57,793 $ 37,318 $136,525 $ 34,617
============================= ========= ========= ========= =========
*T
-0-
*T
MONSTER WORLDWIDE, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September June 30, December
30, 2005 2005 31, 2004
---------- ---------- ----------
Assets:
Cash and cash equivalents $ 313,709 $ 235,818 $ 198,111
Accounts receivable, net 321,243 317,378 318,530
Property and equipment, net 84,542 83,352 81,415
Goodwill and intangibles, net 640,655 640,950 664,738
Other assets 129,086 130,119 68,997
Total assets of discontinued
operations - - 211,822
---------------------------- ---------- ---------- ----------
Total Assets $1,489,235 $1,407,617 $1,543,613
============================ ========== ========== ==========
Liabilities and Stockholders'
Equity:
Accounts payable, accrued
expenses and other $ 340,304 $ 326,099 $ 308,061
Deferred revenue 248,063 245,713 231,382
Other liabilities 37,578 36,156 23,381
Debt 44,708 40,935 63,237
Total liabilities of
discontinued operations - - 162,038
---------------------------- ---------- ---------- ----------
Total Liabilities 670,653 648,903 788,099
Stockholders' Equity 818,582 758,714 755,514
---------------------------- ---------- ---------- ----------
Total Liabilities and
Stockholders' Equity $1,489,235 $1,407,617 $1,543,613
============================ ========== ========== ==========
*T
-0-
*T
MONSTER WORLDWIDE, INC.
UNAUDITED OPERATING SEGMENT INFORMATION
(in thousands)
Monster Advertising & Communications
---------------------------- ----------------------------
Three Months
Ended
September North North
30, 2005 America International Total America International Total
---------------------------------------- ----------------------------
Revenue $161,998 $ 44,836 $206,834 $ 21,540 $ 20,914 $ 42,454
Operating
income
(loss) 56,646 (2,061) 54,585 2,308 2,139 4,447
OIBDA 61,542 356 61,898 3,551 2,574 6,125
Operating
Margin 35.0% -4.6% 26.4% 10.7% 10.2% 10.5%
OIBDA
Margin 38.0% 0.8% 29.9% 16.5% 12.3% 14.4%
Corporate Total
-------- --------
Revenue $249,288
Operating income (loss) $(11,303) 47,729
OIBDA (10,469) 57,554
Operating Margin 19.1%
OIBDA Margin 23.1%
Monster Advertising & Communications
---------------------------- ----------------------------
Three Months
Ended
September North North
30, 2004 America International Total America International Total
---------------------------------------- ----------------------------
Revenue $126,896 $ 30,783 $157,679 $ 19,292 $ 21,648 $ 40,940
Operating
income
(loss) 34,998 (356) 34,642 1,657 (11) 1,646
OIBDA 40,018 2,588 42,606 2,848 553 3,401
Operating
Margin 27.6% -1.2% 22.0% 8.6% -0.1% 4.0%
OIBDA
Margin 31.5% 8.4% 27.0% 14.8% 2.6% 8.3%
Corporate Total
-------- --------
Revenue $198,619
Operating income (loss) $(9,848) 26,440
OIBDA (8,858) 37,149
Operating Margin 13.3%
OIBDA Margin 18.7%
Monster Advertising & Communications
---------------------------- ----------------------------
Nine Months
Ended
September North North
30, 2005 America International Total America International Total
---------------------------------------- ----------------------------
Revenue $462,527 $131,932 $594,459 $ 60,234 $ 65,627 $125,861
Operating
income
(loss) 153,011 (5,734) 147,277 4,970 2,679 7,649
OIBDA 167,873 1,577 169,450 8,365 4,018 12,383
Operating
Margin 33.1% -4.3% 24.8% 8.3% 4.1% 6.1%
OIBDA
Margin 36.3% 1.2% 28.5% 13.9% 6.1% 9.8%
Corporate Total
-------- --------
Revenue $720,320
Operating income (loss) $(31,667) 123,259
OIBDA (28,788) 153,045
Operating Margin 17.1%
OIBDA Margin 21.2%
Monster Advertising & Communications
---------------------------- ----------------------------
Nine Months
Ended
September North North
30, 2004 America International Total America International Total
---------------------------------------- ----------------------------
Revenue $347,787 $ 73,958 $421,745 $ 54,340 $ 65,072 $119,412
Operating
income
(loss) 89,391 (1,515) 87,876 3,653 639 4,292
OIBDA 102,861 3,729 106,590 7,249 2,308 9,557
Operating
Margin 25.7% -2.0% 20.8% 6.7% 1.0% 3.6%
OIBDA
Margin 29.6% 5.0% 25.3% 13.3% 3.5% 8.0%
Corporate Total
--------- -------
Revenue $541,157
Operating income (loss) $(26,691) 65,477
OIBDA (23,781) 92,366
Operating Margin 12.1%
OIBDA Margin 17.1%
*T
--30--DB/ny*
Kontakt: Monster Worldwide, Inc.
Investors:
Robert Jones, 212-351-7032
bob.jones@monsterworldwide.com
or
Media
David Rosa, 212-351-7067
david.rosa@monsterworldwide.com
