NEW YORK--(BUSINESS WIRE)--Oct. 24, 2007--Monster Worldwide, Inc.
(NASDAQ:MNST):
-- Total Revenue Increases 18% to $337 Million with Careers
International Revenue Growth of 57%
-- Diluted Earnings Per Share from Continuing Operations at
$0.25, Including $0.10 Per Share of Pro Forma Adjustments
-- GAAP Operating Margin Expands to 15% from 13% in the Second
Quarter; Non-GAAP Operating Margin Improves to 21% Compared to
19% in the Second Quarter
-- Cash Generated from Operating Activities of $73 Million
-- Stock Buyback Authorization Increased by $100 Million to $350
Million
Monster Worldwide, Inc. (NASDAQ:MNST) today reported financial
results for the third quarter and nine months ended September 30,
2007.
Third Quarter Results
Total revenue grew 18% to $337 million in the third quarter of
2007 from $286 million in the comparable quarter of 2006. Foreign
exchange rate benefits contributed approximately 3% to the year over
year revenue growth.
Monster Careers revenue increased 22% to $297 million, compared
with $244 million in last year's third quarter, led by International
revenue growth of 57% to $122 million. Included in International
revenue is a $7 million benefit from the effect of foreign exchange
rates. North American Careers revenue increased 5% to $175 million in
the third quarter of 2007, while Internet Advertising & Fees revenue
was $40 million compared with $42 million in last year's comparable
quarter.
Monster Worldwide's deferred revenue balance at September 30, 2007
grew 25% to $435 million over last year's third quarter balance of
$347 million.
Income from continuing operations was $33 million, or $0.25 per
diluted share, in the third quarter of 2007, compared to $40 million
or $0.31 per diluted share in the 2006 period. Included in income from
continuing operations for the three months ended September 30, 2007 is
a $0.07 per diluted share impact from costs associated with the
ongoing stock option investigation and the Company's restructuring
plan. Pro forma adjustments also include $0.03 per diluted share of
costs associated with measures taken by the Company in response to the
security breach of the Company's resume database in August. These pro
forma adjustments are described in the "Notes Regarding the Use of
Non-GAAP Financial Measures" and are reconciled to the nearest GAAP
measure in the accompanying tables.
At September 30, 2007, the Company's net cash position was $627
million compared with $719 million at June 30, 2007. During the
quarter, the Company utilized the remaining $55 million under its
November 2005 buyback program and spent $100 million of the September
2007 authorization, repurchasing a total of 4.5 million shares on the
open market. Cash generated from operating activities was $73 million
compared to $79 million in the third quarter of 2006. Capital
expenditures totaled $11 million in the third quarter of 2007.
The Company also announced that its Board of Directors has
increased the Company's current stock repurchase authorization to $350
million from $250 million. Giving effect to the increased
authorization and repurchases to date, the Company currently has $250
million remaining under the program.
Sal Iannuzzi, Chairman and Chief Executive Officer of Monster
Worldwide, said, "We believe our third quarter results demonstrated
the strength of the Monster brand in a difficult domestic market
environment. Our ongoing strategy to expand our franchise on a global
basis contributed to the significant revenue growth and strong margin
expansion we experienced in our International segment. Our ability to
provide quality job candidates to our employer customers on a global
basis provides a competitive advantage in the marketplace and enhances
Monster's position as the global online recruitment leader."
Mr. Iannuzzi added, "Our team is in the process of ramping up
investments in product development and innovation, enhanced technology
and more aggressive marketing which we believe will improve the
customer experience and deliver solid revenue growth and operating
margin expansion over time. We are in the early stages of the recently
announced restructuring plan and are pleased to report we are on pace
with the cost elimination and efficiency initiatives we have outlined.
During the third quarter the consolidated non-GAAP operating margin
expanded to 21% from 19% in the second quarter. We believe our strong
balance sheet will support the Company's growth opportunities as we
work toward building long term sustainable value for our customers,
shareholders and dedicated associates across the globe."
Nine Months Results
Monster Worldwide reported total revenue of $997 million for the
nine months ended September 30, 2007 compared to $818 million in the
comparable period last year, a 22% increase, or 19% before the benefit
of foreign exchange rates. Monster Careers revenue grew 24% to $879
million compared with $706 million in the 2006 period. Internet
Advertising & Fees reported revenue of $119 million, an increase of 6%
over the prior year period. The Company reported income from
continuing operations of $102 million, or $0.77 per diluted share,
compared to $113 million or $0.86 per diluted share in the prior year
period.
Business Outlook
The Company's business outlook reflects the anticipated savings
and investments of the restructuring plan noted above, as well as
other initiatives to improve long-term revenue growth and
profitability. Specific assumptions are as follows:
-0-
*T
$'s in millions, except EPS figures Full Year 2007
----------------------------------------------------------------------
Total Revenue $1,345-$1,365
Non-GAAP Operating Expenses $1,070-$1,090
Effective Income Tax Rate 35.5%
Losses in Equity Interest $(11)-$(9)
Non-GAAP operating expenses exclude ongoing costs associated with the
stock option investigations, related litigation and potential fines
or settlements; previously disclosed severance costs of $15.8 million
for former executive officers; costs related to measures taken by the
Company in response to the security breach; and restructuring and
other special charges. See below for Notes Regarding the Use of Non-
GAAP Financial Measures.
*T
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/Q307.pdf or through the Company's
Investor Relations website at http://ir.monsterworldwide.com.
Conference Call Information
Third quarter 2007 results will be discussed on Monster
Worldwide's quarterly conference call taking place on October 24,
2007 at 5:00 PM EST. To join the conference call, please dial (888)
551-5973 at 4:50 PM EDT and reference conference ID# 19394110. For
those outside the United States, please dial (706) 643-3467 and
reference the same conference ID#. The call will begin promptly at
5:00 PM EST. Individuals can also access Monster Worldwide's quarterly
conference call online through the Investor Relations section of the
Company's website at www.monsterworldwide.com. For a replay of the
call, please dial (800) 642-1687 or outside the United States
dial (706) 645-9291 and reference ID #19394110. This number is valid
until midnight on November 1, 2007.
About Monster Worldwide
Monster Worldwide, Inc. (NASDAQ: MNST), parent company of
Monster(R), the premier global online employment solution for more
than a decade, strives to bring people together to advance their
lives. With a local presence in key markets in North America, Europe,
and Asia, Monster works for everyone by connecting employers with
quality job seekers at all levels and by providing personalized career
advice to consumers globally. Through online media sites and
services, Monster delivers vast, highly targeted
audiences to advertisers. Monster Worldwide is a member of the S&P 500
Index and the NASDAQ 100. To learn more about Monster's
industry-leading products and services, visit www.monster.com. More
information about Monster Worldwide is available at
www.monsterworldwide.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
provides useful information to management and investors regarding
certain financial and business trends relating to its financial
condition and results of operations.
Non-GAAP operating expenses, operating income, operating margin,
income from continuing operations and diluted earnings per share all
exclude certain pro forma adjustments including: ongoing costs
associated with the stock option investigations, related litigation
and potential fines or settlements; severance costs for former
executive officers incurred in the second quarter of 2007; costs
related to the measures taken by the Company in response to the
security breach; and the strategic restructuring actions initiated in
the third quarter of 2007. The Company uses these non-GAAP measures
for reviewing the ongoing results of the Company's core business
operations and in certain instances, for measuring performance under
certain of the Company's incentive compensation plans. These non-GAAP
measures may not be comparable to similarly titled measures reported
by other companies.
Operating income before depreciation and amortization ("OIBDA") is
defined as income from operations before depreciation, amortization of
intangible assets and amortization of stock based compensation. The
Company considers OIBDA 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. OIBDA 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 plus marketable
securities, less total debt. The Company considers net cash to be an
important measure of liquidity and an indicator of its ability to meet
its ongoing obligations. The Company also uses net cash, among other
measures, in evaluating its choices for capital deployment. Net cash
presented herein is a non-GAAP measure and may not be comparable to
similarly titled measures used by other companies.
The operating expenses included in the Company's outlook ranges
are non-GAAP financial measures within the meaning of Regulation G as
promulgated by the Securities and Exchange Commission because, among
other things, they do not include legal costs and expenses that the
Company will incur as a result of its historical stock option granting
practices. Because the Company cannot reasonably estimate or predict
these costs and expenses, the Company cannot calculate the most
directly comparable GAAP measure of operating expenses that would
include such legal costs and expenses. Therefore, the Company cannot
reconcile the non-GAAP measure to the most directly comparable GAAP
measure. While the amount of the legal costs and expenses associated
with the Company's historical stock option granting practices is
likely to be material, the Company believes that such costs and
expenses are of limited significance to an evaluation of the Company's
business fundamentals, since such costs and expenses bear little
relation to the Company's core business or operating prospects.
Additionally, non-GAAP operating expenses exclude severance costs for
former executive officers, costs associated with the measures taken by
the Company in response to the security breach and anticipated
restructuring charges. While the aggregate restructuring charge can be
estimated, the Company cannot determine the precise amount of the
charge to be taken each period. As a result, the Company is unable to
reconcile the projected non-GAAP operating expenses to a projection
calculated in accordance with GAAP.
Special Note: Except for historical information contained herein,
the statements made in this release, including the business outlook,
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 or dispositions,
competition, ongoing costs associated with the stock option
investigations and lawsuits, costs associated with the restructuring
and security breach, 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,
------------------- -------------------
2007 2006 2007 2006
-------- ---------- -------- ----------
Revenue $337,144 $ 285,855 $997,321 $ 818,060
------------------------------ -------- ---------- -------- ----------
Salaries and related 128,250 106,838 396,750 297,253
Office and general 71,379 51,113 206,372 141,685
Marketing and promotion 76,348 68,077 232,462 207,088
Restructuring and other
special charges 11,155 - 11,155 -
------------------------------ -------- ---------- -------- ----------
Total operating expenses 287,132 226,028 846,739 646,026
------------------------------ -------- ---------- -------- ----------
Operating income 50,012 59,827 150,582 172,034
Interest and other, net 6,288 5,012 18,504 12,082
------------------------------ -------- ---------- -------- ----------
Income from continuing
operations before income taxes
and equity interests 56,300 64,839 169,086 184,116
Income taxes 19,998 22,692 59,756 65,180
Losses in equity interests,
net (3,074) (2,054) (7,460) (5,579)
------------------------------ -------- ---------- -------- ----------
Income from continuing
operations 33,228 40,093 101,870 113,357
Income (loss) from
discontinued operations, net
of tax 73 (123,910) (471) (115,295)
------------------------------ -------- ---------- -------- ----------
Net income (loss) $33,301 $(83,817) $101,399 $ (1,938)
============================== ======== ========== ======== ==========
Basic earnings per share:
Earnings per share from
continuing operations $ 0.26 $ 0.31 $ 0.78 $ 0.89
Income (loss) per share from
discontinued operations, net
of tax - (0.96) - (0.90)
--------------------------------------- ---------- -------- ----------
Basic earnings (loss) per
share* $ 0.26 $ (0.65) $ 0.78 $ (0.02)
============================== ======== ========== ======== ==========
Diluted earnings per share:
Earnings per share from
continuing operations $ 0.25 $ 0.31 $ 0.77 $ 0.86
Income (loss) per share from
discontinued operations, net
of tax - (0.95) - (0.88)
--------------------------------------- ---------- -------- ----------
Diluted earnings (loss) per
share* $ 0.25 $ (0.64) $ 0.77 $ (0.01)
============================== ======== ========== ======== ==========
*Basic and diluted earning (loss) per share may not add in
certain periods due to rounding.
Weighted average shares
outstanding:
Basic 129,499 128,484 129,893 127,938
============================== ======== ========== ======== ==========
Diluted 130,757 130,827 132,044 131,224
============================== ======== ========== ======== ==========
Operating income before
depreciation and amortization:
Operating income $50,012 $ 59,827 $150,582 $ 172,034
Depreciation and amortization
of intangibles 12,625 9,088 34,149 30,015
Amortization of stock based
compensation 2,975 2,943 24,453 8,395
------------------------------ -------- ---------- -------- ----------
Operating income before
depreciation and amortization $65,612 $ 71,858 $209,184 $ 210,444
======================================= ========== ======== ==========
*T
-0-
*T
MONSTER WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- -------------------------
2007 2006 2007 2006
---------- ---------- ------------ ------------
Cash flows provided by
operating activities:
Net income (loss) $ 33,301 $(83,817) $ 101,399 $ (1,938)
---------------------- ---------- ---------- ------------ ------------
Adjustments to reconcile net
income to net cash provided by
operating activities:
(Income) loss from
discontinued
operations, net of
tax (73) 123,910 471 115,295
Depreciation and
amortization of
intangibles 12,625 9,088 34,149 30,015
Provision for doubtful
accounts 3,340 1,841 8,453 6,505
Non-cash compensation 2,974 2,943 24,452 8,395
Common stock issued
for matching
contribution to
401(k) plan - - - 1,854
Deferred income taxes 2,808 (815) (2,697) 8,514
Gain on disposal of
assets (2) - (574) -
Loss in equity
interests and other,
net 3,074 2,056 7,460 5,575
Changes in assets and
liabilities, net of
business
combinations:
Accounts receivable 13,699 (24,072) 34,065 (48,522)
Prepaid and other (8,007) (14,542) (12,211) (24,282)
Deferred revenue (17,515) (2,328) (9,464) 19,116
Accounts payable,
accrued liabilities
and other 26,537 48,418 24,750 81,273
Net cash provided by
(used for) operating
activities of
discontinued
operations 74 16,168 (5,258) 21,836
---------------------- ---------- ---------- ------------ ------------
Total adjustments 39,534 162,667 103,596 225,574
---------------------- ---------- ---------- ------------ ------------
Net cash provided by
operating activities 72,835 78,850 204,995 223,636
---------------------- ---------- ---------- ------------ ------------
Cash flows used for
investing activities:
Capital expenditures (10,601) (12,825) (47,815) (38,368)
Purchase of marketable
securities (327,250) (404,703) (1,009,836) (1,348,466)
Sales and maturities
of marketable
securities 446,418 321,390 1,035,983 965,928
Payments for
acquisitions and
intangible assets,
net of cash acquired (133) (631) (1,939) (18,913)
Investment in
unconsolidated
affiliate - - - (19,936)
Net proceeds from sale
of business - 36,205 69,155
Cash funded to equity
investee (5,900) (2,400) (10,000) (7,200)
Net cash used for
investing activities
of discontinued
operations - (455) - (2,924)
---------------------- ---------- ---------- ------------ ------------
Net cash provided by
(used for) investing
activities 102,534 (63,419) (33,607) (400,724)
---------------------- ---------- ---------- ------------ ------------
Cash flows provided by
financing activities:
Payments on capital
lease obligations (58) (130) (58) (493)
Payments on
acquisition debt - - (21,862) (29,685)
Proceeds from exercise
of employee stock
options 651 60 54,052 91,225
Excess tax benefits
from equity
compensation plans 1,611 16 13,954 17,340
Repurchase of common
stock (154,692) - (164,734) (14,416)
Structured stock
repurchase - - - (22,758)
---------------------- ---------- ---------- ------------ ------------
Net cash (used in)
provided by financing
activities (152,488) (54) (118,648) 41,213
---------------------- ---------- ---------- ------------ ------------
Effects of exchange
rates on cash 3,795 352 5,795 2,066
Net increase
(decrease) in cash
and cash equivalents 26,676 15,729 58,535 (133,809)
Cash and cash
equivalents,
beginning of period 90,539 47,059 58,680 196,597
---------------------- ---------- ---------- ------------ ------------
Cash and cash
equivalents, end of
period 117,215 62,788 117,215 62,788
====================== ========== ========== ============ ============
Free cash flow:
Net cash provided by
operating activities $ 72,835 $ 78,850 $ 204,995 $ 223,636
Less: Capital
expenditures (10,601) (12,825) (47,815) (38,368)
---------------------- ---------- ---------- ------------ ------------
Free cash flow $ 62,234 $ 66,025 $ 157,180 $ 185,268
====================== ========== ========== ============ ============
*T
-0-
*T
MONSTER WORLDWIDE, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Assets: September December
30, 2007 31, 2006
---------- ----------
Cash and cash equivalents $ 117,215 $ 58,680
Available-for-sale securities 511,746 537,893
Accounts receivable, net 401,994 444,747
Property and equipment, net 121,795 102,402
Goodwill and intangibles, net 662,709 640,736
Other assets 206,171 185,345
------------------------------------------------ ---------- ----------
Total assets $2,021,630 $1,969,803
================================================ ========== ==========
Liabilities and Stockholders' equity:
Accounts payable, accrued expenses and other $ 298,023 $ 358,850
Deferred revenue 434,682 444,145
Long-term income taxes payable 94,418 -
Other liabilities 29,799 33,459
Debt 1,945 23,664
------------------------------------------------ ---------- ----------
Total liabilities 858,867 860,118
------------------------------------------------ ---------- ----------
Stockholders' equity 1,162,763 1,109,685
------------------------------------------------ ---------- ----------
Total liabilities and stockholders' equity $2,021,630 $1,969,803
================================================ ========== ==========
*T
-0-
*T
MONSTER WORLDWIDE, INC.
UNAUDITED OPERATING SEGMENT INFORMATION
(in thousands)
MONSTER
-------------------------------------------
Three Months Ended Careers - Internet
September 30, 2007 North Careers - Advertising
America International & Fees Subtotal
---------------------------------------------------------------------
Revenue $175,309 $ 121,687 $ 40,148 $337,144
Operating income 51,455 7,344 2,502 61,301
OIBDA 57,522 12,896 5,111 75,529
Operating margin 29.4% 6.0% 6.2% 18.2%
OIBDA margin 32.8% 10.6% 12.7% 22.4%
MONSTER
-------------------------------------------
Three Months Ended Careers - Internet
September 30, 2006 North Careers - Advertising
America International & Fees Subtotal
---------------------------------------------------------------------
Revenue $166,910 $ 77,382 $ 41,563 $285,855
Operating income 57,193 4,997 11,843 74,033
OIBDA 62,114 8,248 13,504 83,866
Operating margin 34.3% 6.5% 28.5% 25.9%
OIBDA margin 37.2% 10.7% 32.5% 29.3%
MONSTER
-------------------------------------------
Nine Months Ended Careers - Internet
September 30, 2007 North Careers - Advertising
America International & Fees Subtotal
---------------------------------------------------------------------
Revenue $533,807 $ 344,738 $ 118,776 $997,321
Operating income 171,912 27,360 12,017 211,289
OIBDA 189,517 42,852 19,300 251,669
Operating margin 32.2% 7.9% 10.1% 21.2%
OIBDA margin 35.5% 12.4% 16.2% 25.2%
MONSTER
-------------------------------------------
Nine Months Ended Careers - Internet
September 30, 2006 North Careers - Advertising
America International & Fees Subtotal
---------------------------------------------------------------------
Revenue $489,724 $ 216,347 $ 111,989 $818,060
Operating income 167,349 7,765 33,892 209,006
OIBDA 182,103 20,036 39,347 241,486
Operating margin 34.2% 3.6% 30.3% 25.5%
OIBDA margin 37.2% 9.3% 35.1% 29.5%
Three Months Ended September 30, 2007 Corporate
Expenses Total
----------------------------------------------------------------------
Revenue $337,144
Operating income $(11,289) 50,012
OIBDA (9,917) 65,612
Operating margin 14.8%
OIBDA margin 19.5%
Three Months Ended September 30, 2006 Corporate
Expenses Total
----------------------------------------------------------------------
Revenue $285,855
Operating income $(14,206) 59,827
OIBDA (12,008) 71,858
Operating margin 20.9%
OIBDA margin 25.1%
Nine Months Ended September 30, 2007 Corporate
Expenses Total
----------------------------------------------------------------------
Revenue $997,321
Operating income $(60,707) 150,582
OIBDA (42,485) 209,184
Operating margin 15.1%
OIBDA margin 21.0%
Nine Months Ended September 30, 2006 Corporate
Expenses Total
----------------------------------------------------------------------
Revenue $818,060
Operating income $(36,972) 172,034
OIBDA (31,042) 210,444
Operating margin 21.0%
OIBDA margin 25.7%
*T
-0-
*T
MONSTER WORLDWIDE, INC.
UNAUDITED NON-GAAP STATEMENTS OF OPERATIONS AND RECONCILIATIONS
(in thousands, except per share amounts)
For the Three Months Ended
September 30, 2007
-----------------------------
As ProForma Non-GAAP
Reported Adjustments
-----------------------------
Revenue $337,144 - $337,144
Salaries and related 128,250 365 a 128,615
Office and general 71,379 (8,590) a 62,789
Marketing and promotion 76,348 - 76,348
Restructuring and other special charges 11,155 (11,155)b -
-------- ---------- --------
Total operating expenses 287,132 (19,380) 267,752
-------- ---------- --------
Operating income 50,012 19,380 69,392
Operating margin 14.8% 20.6%
Interest and other, net 6,288 - 6,288
-------- ---------- --------
Income from continuing operations before
income taxes and equity interests 56,300 19,380 75,680
Income taxes 19,998 6,884 c 26,882
Losses in equity interests, net (3,074) - (3,074)
-------- ---------- --------
Income from continuing operations $33,228 $ 12,496 $45,724
======== ========== ========
Diluted Earnings per share from
continuing operations $ 0.25 $ 0.10 $ 0.35
======== ========== ========
Weighted average shares outstanding:
Diluted 130,757 130,757 130,757
For the Nine Months Ended
September 30, 2007
-----------------------------
As ProForma Non-GAAP
Reported Adjustments
-----------------------------
Revenue $997,321 - $997,321
Salaries and related 396,750 (15,777)a 380,973
Office and general 206,372 (23,417)a 182,955
Marketing and promotion 232,462 - 232,462
Restructuring and other special charges 11,155 (11,155)b -
-------- ---------- --------
Total operating expenses 846,739 (50,349) 796,390
-------- ---------- --------
Operating income 150,582 50,349 200,931
Operating margin 15.1% 20.1%
Interest and other, net 18,504 - 18,504
-------- ---------- --------
Income from continuing operations before
income taxes and equity interests 169,086 50,349 219,435
Income taxes 59,756 17,794 c 77,550
Losses in equity interests, net (7,460) - (7,460)
-------- ---------- --------
Income from continuing operations $101,870 $ 32,555 $134,425
======== ========== ========
Diluted Earnings per share from
continuing operations $ 0.77 $ 0.25 $ 1.02
======== ========== ========
Weighted average shares outstanding:
Diluted 132,044 132,044 132,044
For the Three Months Ended
September 30, 2006
-----------------------------
As ProForma Non-GAAP
Reported Adjustments
-----------------------------
Revenue $285,855 - $285,855
Salaries and related 106,838 - 106,838
Office and general 51,113 (4,088)a 47,025
Marketing and promotion 68,077 - 68,077
Restructuring and other special charges - - -
-------- ---------- --------
Total operating expenses 226,028 (4,088) 221,940
-------- ---------- --------
Operating income 59,827 4,088 63,915
Operating margin 20.9% 22.4%
Interest and other, net 5,012 - 5,012
-------- ---------- --------
Income from continuing operations before
income taxes and equity interests 64,839 4,088 68,927
Income taxes 22,692 1,431 c 24,123
Losses in equity interests, net (2,054) (2,054)
-------- ---------- --------
Income from continuing operations $40,093 $ 2,657 $42,750
======== ========== ========
Diluted Earnings per share from
continuing operations $ 0.31 $ 0.02 $ 0.33
======== ========== ========
Weighted average shares outstanding:
Diluted 130,827 130,827 130,827
For the Nine Months Ended
September 30, 2006
-----------------------------
As ProForma Non-GAAP
Reported Adjustments
-----------------------------
Revenue $818,060 - $818,060
Salaries and related 297,253 - 297,253
Office and general 141,685 (4,713)a 136,972
Marketing and promotion 207,088 - 207,088
Restructuring and other special charges - - -
-------- ---------- --------
Total operating expenses 646,026 (4,713) 641,313
-------- ---------- --------
Operating income 172,034 4,713 176,747
Operating margin 21.0% 21.6%
Interest and other, net 12,082 - 12,082
-------- ---------- --------
Income from continuing operations before
income taxes and equity interests 184,116 4,713 188,829
Income taxes 65,180 1,668 c 66,848
Losses in equity interests, net (5,579) - (5,579)
-------- ---------- --------
Income from continuing operations $113,357 $ 3,045 $116,402
======== ========== ========
Diluted Earnings per share from
continuing operations $ 0.86 $ 0.02 $ 0.89
======== ========== ========
Weighted average shares outstanding:
Diluted 131,224 131,224 131,224
Note Regarding ProForma Adjustments:
ProForma adjustments consist of the following:
a Costs associated with the ongoing investigation into the Company's
historical stock option granting practices ($2,571 and $17,729
for the three and nine month periods ended September 30, 2007),
severance charges associated with the termination of certain
executives in the second quarter of 2007 ($15,811) and costs
associated with the remediation of a security breach related to
the Company's resume database in August 2007 ($5,654).
b Restructuring related charges pertain to the strategic
restructuring actions that the Company announced on July 30,
2007. These charges include costs related to the reduction in the
Company's workforce, fixed asset write-offs, costs relating to
the consolidation of certain office facilities, contract
termination costs, relocation costs and professional fees.
c Income tax adjustment is calculated using the effective tax rate
of the period multiplied by the ProForma adjustment to income
from continuing operations before income taxes and equity
interest.
*T
-0-
*T
MONSTER WORLDWIDE, INC.
UNAUDITED NON-GAAP OPERATING SEGMENT INFORMATION
(in thousands)
MONSTER
--------------------------------------------
Three Months Ended Careers - Internet
September 30, 2007 North Careers - Advertising
America International & Fees Subtotal
---------------------------------------------------------------------
Revenue $175,309 $ 121,687 $ 40,148 $337,144
Operating income - GAAP $51,455 $ 7,344 $ 2,502 $61,301
Proforma Adjustments 7,975 6,245 1,917 16,137
-------- ------------- ----------- --------
Operating income - Non
GAAP $59,430 $ 13,589 $ 4,419 $77,438
======== ============= =========== ========
Operating margin - GAAP 29.4% 6.0% 6.2% 18.2%
Operating margin - Non
GAAP 33.9% 11.2% 11.0% 23.0%
MONSTER
--------------------------------------------
Three Months Ended Careers - Internet
September 30, 2006 North Careers - Advertising
America International & Fees Subtotal
---------------------------------------------------------------------
Revenue $166,910 $ 77,382 $ 41,563 $285,855
Operating income - GAAP $57,193 $ 4,997 $ 11,843 $74,033
Proforma Adjustments - - - -
-------- ------------- ----------- --------
Operating income - Non
GAAP $57,193 $ 4,997 $ 11,843 $74,033
======== ============= =========== ========
Operating margin - GAAP 34.3% 6.5% 28.5% 25.9%
Operating margin - Non
GAAP 34.3% 6.5% 28.5% 25.9%
MONSTER
--------------------------------------------
Nine Months Ended Careers - Internet
September 30, 2007 North Careers - Advertising
America International & Fees Subtotal
---------------------------------------------------------------------
Revenue $533,807 $ 344,738 $ 118,776 $997,321
Operating income - GAAP $171,912 $ 27,360 $ 12,017 $211,289
Proforma Adjustments 8,425 6,245 1,917 16,587
-------- ------------- ----------- --------
Operating income - Non
GAAP $180,337 $ 33,605 $ 13,934 $227,876
======== ============= =========== ========
Operating margin - GAAP 32.2% 7.9% 10.1% 21.2%
Operating margin - Non
GAAP 33.8% 9.7% 11.7% 22.8%
MONSTER
--------------------------------------------
Nine Months Ended Careers - Internet
September 30, 2006 North Careers - Advertising
America International & Fees Subtotal
---------------------------------------------------------------------
Revenue $489,724 $ 216,347 $ 111,989 $818,060
Operating income - GAAP $167,349 $ 7,765 $ 33,892 $209,006
Proforma Adjustments - - - -
-------- ------------- ----------- --------
Operating income - Non
GAAP $167,349 $ 7,765 $ 33,892 $209,006
======== ============= =========== ========
Operating margin - GAAP 34.2% 3.6% 30.3% 25.5%
Operating margin - Non
GAAP 34.2% 3.6% 30.3% 25.5%
Three Months Ended September Corporate Expenses Total
30, 2007
--------------------------------------------------------------------
Revenue $ 337,144
Operating income - GAAP $ (11,289) $ 50,012
Proforma Adjustments 3,243 19,380
-------------------- ----------------
Operating income - Non GAAP $ (8,046) $ 69,392
==================== ================
Operating margin - GAAP 14.8%
Operating margin - Non GAAP 20.6%
Three Months Ended September Corporate Expenses Total
30, 2006
--------------------------------------------------------------------
Revenue $ 285,855
Operating income - GAAP $ (14,206) $ 59,827
Proforma Adjustments 4,088 4,088
-------------------- ----------------
Operating income - Non GAAP $ (10,118) $ 63,915
==================== ================
Operating margin - GAAP 20.9%
Operating margin - Non GAAP 22.4%
Nine Months Ended September 30, Corporate Expenses Total
2007
--------------------------------------------------------------------
Revenue $ 997,321
Operating income - GAAP $ (60,707) $ 150,582
Proforma Adjustments 33,762 50,349
-------------------- ----------------
Operating income - Non GAAP $ (26,945) $ 200,931
==================== ================
Operating margin - GAAP 15.1%
Operating margin - Non GAAP 20.1%
Nine Months Ended September 30, Corporate Expenses Total
2006
--------------------------------------------------------------------
Revenue $ 818,060
Operating income - GAAP $ (36,972) $ 172,034
Proforma Adjustments 4,713 4,713
-------------------- ----------------
Operating income - Non GAAP $ (32,259) $ 176,747
==================== ================
Operating margin - GAAP 21.0%
Operating margin - Non GAAP 21.6%
*T
CONTACT: Monster Worldwide, Inc.
Investors:
Robert Jones, 212-351-7032
bob.jones@monsterworldwide.com
or
Media:
Kathryn Burns, 212-351-7063
kathryn.burns@monsterworldwide.com
