Monster Worldwide Reports Fourth Quarter 2013 Results
- Fourth Quarter Highlights
- Revenue Increases Sequentially to $199 Million Driven by Growth in North America and Europe
- Cash Flow from Operations of $25 Million
- Consolidated EBITDA of $31 Million; Careers – North America EBITDA Margin of 24%
- Non-GAAP EPS of $0.11; GAAP Loss Per Share of ($0.21) includes $0.26 of Non-Cash Income Tax Expense Primarily Related to South Korean Transaction
- Closed Sale of Minority Interest in South Korean Business for an Aggregate Purchase Price of $90 Million with Net Cash Proceeds of $86.5 Million
- Repurchased 8.2 Million Shares of Common Stock in the Fourth Quarter; Company Has Repurchased Approximately 20% of Outstanding Shares in 2013
06/02/2014 — NEW YORK — (BUSINESS WIRE)
Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the fourth quarter ended December 31, 2013.
“We are pleased with our fourth quarter financial results as we delivered sequential revenue growth in North America and Europe reflecting increased demand for Monster’s products. We were encouraged that the momentum we saw in the second and third quarters of 2013 in North America and parts of Europe accelerated in the fourth quarter, and we believe these positive sales trends will continue into 2014,” said Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide. “We continue to execute on several important initiatives that we believe will significantly improve our market share and increase profitability. We look forward to discussing these initiatives at our Investor Meeting on May 14th. Finally, consistent with our objective to enhance shareholder value, we repurchased $46 million worth of our shares in the quarter and continue to believe that repurchasing shares represents an extremely attractive investment.”
Fourth Quarter 2013 Results
Revenue of $199 million increased sequentially from $197 million in the third quarter of 2013. Revenue in the fourth quarter of 2012 was $211 million. Revenue from the Company’s North American and European operations increased on a sequential basis. Internet Advertising & Fees revenue for the fourth quarter of 2013 was $18 million compared to $19 million in last year’s comparable quarter. Historical quarterly revenue data is available in the Company’s supplemental financial information.
Consolidated GAAP operating expenses of $189 million decreased 11% compared to $212 million in the fourth quarter 2012. Consolidated net loss for the fourth quarter of 2013 was $20 million, or ($0.21) per share, which included $26 million of non-cash tax expense primarily associated with the completion of the previously announced sale of the Company’s minority interest in its South Korean business. In the fourth quarter of 2012, the Company reported a net loss of $73 million, or ($0.66) per share, which included a loss from discontinued operations, net of tax, of $68 million.
Non-GAAP net income was $10 million or $0.11 per share, compared to $13 million, or $0.12 per share in the fourth quarter of 2012. Non-GAAP operating expenses of $181 million decreased 5% year over year. EBITDA margin of 16% was led by Careers-North America with a 24% margin. Pro-forma items are described in the “Notes Regarding the Use of Non-GAAP Financial Measures” and are reconciled to the GAAP measure in the accompanying tables.
Net cash provided by operating activities in the quarter was $25 million and free cash flow was $17 million. Deferred revenue grew sequentially to $342 million or 8% compared to $316 million as of September 30, 2013. Deferred revenue as of December 31, 2012 grew 6% on a sequential basis. The Company ended the quarter with total available liquidity of approximately $270 million, which includes $86.5 million of net proceeds associated with the South Korea transaction which closed in December 2013.
Share Repurchase
During the fourth quarter 2013, Monster repurchased 8.2 million shares of its common stock at an average price of $5.63 per share, for a total of $46 million. At December 31, 2013, there was approximately $93 million remaining under the Company’s previously announced $200 million share repurchase program. Year to date, the Company has repurchased 20.6 million shares, or approximately 20% of its total shares outstanding.
Full Year Results
Monster Worldwide reported total revenue of $808 million for the twelve months ended December 31, 2013 compared to $890 million in the same period last year, a 9% decrease. Monster Careers revenue decreased 10% to $735 million compared with $814 million in the 2012 period. Internet Advertising & Fees reported revenue of $73 million compared to $76 million in the prior year period. The Company reported net loss of $0.5 million, compared to a net loss of $259 million, or ($2.27) per share, in the prior period.
Company Provides Q1 EPS Guidance
First quarter 2014 Non-GAAP EPS from continuing operations is expected to be in the range of $0.06 to $0.10, which excludes approximately $9 million of stock-based compensation.
Historical data on Non-GAAP EPS excluding stock-based compensation expense is available in the Company’s supplemental financial information.
Conference Call and Webcast
Fourth quarter 2013 results will be discussed on Monster Worldwide’s quarterly conference call on February 6, 2014 at 8:30 AM ET. A live webcast of the conference call can be accessed online through the Investor Relations section of the Company’s website at http://ir.monster.com. To join the conference call by telephone, please dial (888) 696-1396 or (706) 758-9636 and reference conference ID# 36864089. A presentation of financial slides will be referenced during the conference call and will be viewable through the live webcast. A PDF of the financial presentation can also be accessed directly through the Company’s Investor Relations website at http://ir.monster.com.
The Company has also made available certain supplemental financial information which can be accessed directly through the Company’s Investor Relations website at http://ir.monster.com.
For a replay of the conference call, please dial (855) 859-2056 or (404) 537-3406 and reference ID# 36864089. This number is valid until midnight on February 20, 2014.
About Monster Worldwide
Monster Worldwide, Inc. (NYSE:MWW), is the global leader in successfully connecting job opportunities and people. Monster uses the world’s most advanced technology to help people Find Better, matching job seekers to opportunities via digital, social and mobile solutions including monster.com®, our flagship website, and employers to the best talent using a vast array of products and services. As an Internet pioneer, more than 200 million people have registered on the Monster Worldwide network. Today, with operations in more than 40 countries, Monster provides the broadest, most sophisticated job seeking, career management, recruitment and talent management capabilities globally. For more information visit about.monster.com
Special Note: The statements in this release that are not strictly historical, including, without limitation, statements regarding the Company’s strategic direction, prospects and future results, 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 and, therefore, actual results may differ materially from what is expressed or implied herein and no assurance can be given that the Company will achieve, among other things, its outlook with respect to earnings per share for the first quarter 2014. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, economic and other conditions in the markets in which we operate, risks associated with acquisitions or dispositions, competition, 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 into this release by reference. Many of the factors that will determine the Company’s future results are beyond the ability of management to control or predict. Readers should not place undue reliance on the forward-looking statements in this release as they reflect management’s views only as of the date hereof. The Company undertakes no obligation to revise or update any of the forward-looking statements contained in this release or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Notes Regarding the Use of Non-GAAP Financial Measures
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 revenue, operating expenses, operating income from continuing operations, operating margin, income from continuing operations, (loss) income from discontinued operations, net of tax, and diluted earnings (loss) per share all exclude certain pro-forma adjustments including: costs incurred for the 2012 restructurings; recovery of restitution award from former executive; non-cash stock-based compensation expense, costs incurred related to the Company’s review of strategic alternatives; income tax benefits associated with the reversal of income tax reserves on uncertain tax positions and a tax benefit related to certain losses arising from the Company’s restructuring programs; and the results of the businesses in Careers – China, Latin America and Turkey as they have been classified as discontinued operations. 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.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is defined as net income or loss before interest income or expense, income tax expense or benefit, net gain or loss in equity interests, depreciation and amortization, non-cash compensation expense and non-cash restructuring costs. The Company considers EBITDA to be an important indicator of its operational strength which the Company believes is useful to management and investors in evaluating its operating performance. EBITDA 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 and securities are defined as cash and cash equivalents plus short-term marketable securities, less total debt. Total available liquidity is defined as cash and cash equivalents, plus short-term marketable securities plus unused borrowings under our credit facilities. The Company considers net cash and securities and total available liquidity to be important measures of liquidity and indicators of its ability to meet its ongoing obligations. The Company also uses net cash and securities and total available liquidity, among other measures, in evaluating its choices for capital deployment. Net cash and securities and total available liquidity are presented herein as non-GAAP measures and may not be comparable to similarly titled measures used by other companies.
| MONSTER WORLDWIDE, INC. | ||||||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Revenue | $ | 198,718 | $ | 211,244 | $ | 807,579 | $ | 890,392 | ||||||||
| Salaries and related | 99,433 | 97,401 | 379,406 | 408,305 | ||||||||||||
| Office and general | 50,461 | 55,497 | 205,397 | 226,601 | ||||||||||||
| Marketing and promotion | 38,840 | 44,503 | 169,590 | 188,326 | ||||||||||||
| Restructuring and other special charges | – | 14,831 | 19,995 | 40,358 | ||||||||||||
| Recovery of restitution award from former executive | – | – | – | (5,350 | ) | |||||||||||
| Total operating expenses | 188,734 | 212,232 | 774,388 | 858,240 | ||||||||||||
| Operating income (loss) | 9,984 | (988 | ) | 33,191 | 32,152 | |||||||||||
| Interest and other, net | (1,663 | ) | (1,699 | ) | (5,770 | ) | (5,883 | ) | ||||||||
| Income (loss) before income taxes and loss in equity interests | 8,321 | (2,687 | ) | 27,421 | 26,269 | |||||||||||
| Provision for (benefit from) income taxes | 28,157 | 2,267 | 23,004 | (32,978 | ) | |||||||||||
| Loss in equity interests, net | (86 | ) | (355 | ) | (908 | ) | (1,081 | ) | ||||||||
| (Loss) income from continuing operations | (19,922 | ) | (5,309 | ) | 3,509 | 58,166 | ||||||||||
| Loss from discontinued operations, net of tax | – | (67,716 | ) | (3,798 | ) | (316,886 | ) | |||||||||
| Net loss | (19,922 | ) | (73,025 | ) | (289 | ) | (258,720 | ) | ||||||||
| Net income attributable to noncontrolling interest | (193 | ) | – | (193 | ) | – | ||||||||||
| Net loss attributable to Monster Worldwide, Inc. | $ | (20,115 | ) | $ | (73,025 | ) | $ | (482 | ) | $ | (258,720 | ) | ||||
| *Basic (loss) earnings per share attributable to Monster Worldwide, Inc.: | ||||||||||||||||
| (Loss) income from continuing operations | $ | (0.21 | ) | $ | (0.05 | ) | $ | 0.03 | $ | 0.52 | ||||||
| Loss from discontinued operations, net of tax | – | (0.61 | ) | (0.04 | ) | (2.81 | ) | |||||||||
| Basic (loss) earnings per share | $ | (0.21 | ) | $ | (0.66 | ) | $ | – | $ | (2.29 | ) | |||||
| *Diluted (loss) earnings per share attributable to Monster Worldwide, Inc.: | ||||||||||||||||
| (Loss) income from continuing operations | $ | (0.21 | ) | $ | (0.05 | ) | $ | 0.03 | $ | 0.51 | ||||||
| Loss from discontinued operations, net of tax | – | (0.61 | ) | (0.04 | ) | (2.78 | ) | |||||||||
| Diluted (loss) earnings per share | $ | (0.21 | ) | $ | (0.66 | ) | $ | – | $ | (2.27 | ) | |||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 97,872 | 111,098 | 106,947 | 112,866 | ||||||||||||
| Diluted | 97,872 | 111,098 | 107,913 | 113,995 | ||||||||||||
| EBITDA: | ||||||||||||||||
| Operating income (loss) | $ | 9,984 | $ | (988 | ) | $ | 33,191 | $ | 32,152 | |||||||
| Depreciation and amortization of intangibles | 12,782 | 16,386 | 59,156 | 64,279 | ||||||||||||
| Amortization of stock-based compensation | 8,226 | 6,985 | 25,391 | 28,174 | ||||||||||||
| Restructuring non-cash expenses | – | 1,126 | 5,315 | 7,543 | ||||||||||||
| EBITDA | $ | 30,992 | $ | 23,509 | $ | 123,053 | $ | 132,148 | ||||||||
| *Earnings per share may not add in certain periods due to rounding. | ||||||||||||||||
| MONSTER WORLDWIDE, INC. | ||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (in thousands) | ||||||||
| Twelve Months Ended December 31, | ||||||||
| 2013 | 2012 | |||||||
| Cash flows provided by operating activities: | ||||||||
| Net loss | $ | (289 | ) | $ | (258,720 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 59,156 | 70,000 | ||||||
| Provision for doubtful accounts | 2,367 | 4,469 | ||||||
| Non-cash compensation | 25,391 | 28,964 | ||||||
| Deferred income taxes | 28,574 | (9,814 | ) | |||||
| Non-cash restructuring charges | 5,315 | 7,505 | ||||||
| Loss in equity interests, net | 908 | 1,081 | ||||||
| Amount reclassified from accumulated other comprehensive income | (23,109 | ) | – | |||||
| Tax benefit from change in uncertain tax positions | (14,355 | ) | (43,193 | ) | ||||
| Impairment of goodwill and other intangibles | – | 267,855 | ||||||
| Excess income tax benefit from equity compensation plans | (5,907 | ) | – | |||||
| Changes in assets and liabilities, net of acquisitions: | ||||||||
| Accounts receivable | 8,018 | (2,013 | ) | |||||
| Prepaid and other | 14,573 | 13,332 | ||||||
| Deferred revenue | (22,189 | ) | (17,456 | ) | ||||
| Accounts payable, accrued liabilities and other | (44,631 | ) | (8,683 | ) | ||||
| Total adjustments | 34,111 | 312,047 | ||||||
| Net cash provided by operating activities | 33,822 | 53,327 | ||||||
| Cash flows used for investing activities: | ||||||||
| Capital expenditures | (32,616 | ) | (59,572 | ) | ||||
| Cash funded to and dividends received from equity investee and other | (6,266 | ) | (1,349 | ) | ||||
| Net cash used for investing activities | (38,882 | ) | (60,921 | ) | ||||
| Cash flows used for financing activities: | ||||||||
| Proceeds from borrowings on credit facilities | 69,500 | 224,718 | ||||||
| Payments on borrowings on credit facilities | (91,599 | ) | (305,709 | ) | ||||
| Proceeds from borrowings on term loan | – | 100,000 | ||||||
| Payments on borrowings on term loan | (6,875 | ) | (43,750 | ) | ||||
| Repurchase of common stock | (107,167 | ) | (65,611 | ) | ||||
| Tax withholdings related to net share settlements of restricted stock awards and units | (6,061 | ) | (8,482 | ) | ||||
| Excess income tax benefit from equity compensation plans | 5,907 | – | ||||||
| Net proceeds from sale of noncontrolling interest | 86,523 | – | ||||||
| Proceeds from the exercise of employee stock options | – | 23 | ||||||
| Net cash used for financing activities | (49,772 | ) | (98,811 | ) | ||||
| Effects of exchange rates on cash | (4,772 | ) | 4,273 | |||||
| Net decrease in cash and cash equivalents | (59,604 | ) | (102,132 | ) | ||||
| Cash and cash equivalents, beginning of period | 148,185 | 250,317 | ||||||
| Cash and cash equivalents, end of period | $ | 88,581 | $ | 148,185 | ||||
| Free cash flow: | ||||||||
| Net cash provided by operating activities | $ | 33,822 | $ | 53,327 | ||||
| Less: Capital expenditures | (32,616 | ) | (59,572 | ) | ||||
| Free cash flow | $ | 1,206 | $ | (6,245 | ) | |||
| MONSTER WORLDWIDE, INC. | ||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (in thousands) | ||||||
| Assets: | December 31, 2013 | December 31, 2012 | ||||
| Cash and cash equivalents | $ | 88,581 | $ | 148,185 | ||
| Accounts receivable, net | 332,675 | 335,905 | ||||
| Property and equipment, net | 124,169 | 147,613 | ||||
| Goodwill and intangibles, net | 919,576 | 919,854 | ||||
| Other assets | 121,256 | 111,606 | ||||
| Current assets of discontinued operations | – | 21,702 | ||||
| Total Assets | $ | 1,586,257 | $ | 1,684,865 | ||
| Liabilities and Stockholders’ Equity: | ||||||
| Accounts payable, accrued expenses and other current liabilities | $ | 166,257 | $ | 181,914 | ||
| Deferred revenue | 342,156 | 351,546 | ||||
| Current portion of long-term debt and borrowings on credit facilities | 9,375 | 18,264 | ||||
| Long-term income taxes payable | 53,078 | 63,465 | ||||
| Long-term debt, less current portion | 125,900 | 145,975 | ||||
| Other long-term liabilities | 44,297 | 10,406 | ||||
| Current liabilities of discontinued operations | 1,049 | 33,256 | ||||
| Total Liabilities | $ | 742,112 | $ | 804,826 | ||
| Stockholders’ Equity | 844,145 | 880,039 | ||||
| Total Liabilities and Stockholders’ Equity | $ | 1,586,257 | $ | 1,684,865 | ||
| MONSTER WORLDWIDE, INC. | |||||||||||||||||||||||||||||
| UNAUDITED NON-GAAP STATEMENTS OF OPERATIONS AND RECONCILIATIONS | |||||||||||||||||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||||||||||||||
| Three Months Ended December 31, 2013 | Three Months Ended December 31, 2012 | ||||||||||||||||||||||||||||
| As Reported | Non GAAP Adjustments | Consolidated Non GAAP | As Reported | Non GAAP Adjustments | Consolidated Non GAAP | ||||||||||||||||||||||||
| Revenue | $ | 198,718 | $ | – | $ | 198,718 | $ | 211,244 | $ | – | $ | 211,244 | |||||||||||||||||
| Salaries and related | 99,433 | (8,226 | ) | a | 91,207 | 97,401 | (6,985 | ) | a | 90,416 | |||||||||||||||||||
| Office and general | 50,461 | – | 50,461 | 55,497 | (1,347 | ) | b | 54,150 | |||||||||||||||||||||
| Marketing and promotion | 38,840 | – | 38,840 | 44,503 | – | 44,503 | |||||||||||||||||||||||
| Restructuring and other special charges | – | – | – | 14,831 | (14,831 | ) | c | – | |||||||||||||||||||||
| Total operating expenses | 188,734 | (8,226 | ) | 180,508 | 212,232 | (23,163 | ) | 189,069 | |||||||||||||||||||||
| Operating income (loss) | 9,984 | 8,226 | 18,210 | (988 | ) | 23,163 | 22,175 | ||||||||||||||||||||||
| Operating margin | 5.0 | % | 9.2 | % | -0.5 | % | 10.5 | % | |||||||||||||||||||||
| Interest and other, net | (1,663 | ) | – | (1,663 | ) | (1,699 | ) | – | (1,699 | ) | |||||||||||||||||||
| Income (loss) before income taxes and loss in equity interests | 8,321 | 8,226 | 16,547 | (2,687 | ) | 23,163 | 20,476 | ||||||||||||||||||||||
| Provision for (benefit from) income taxes | 28,157 | (22,366 | ) | f,g | 5,791 | 2,267 | 4,481 | e,f | 6,748 | ||||||||||||||||||||
| Loss in equity interests, net | (86 | ) | – | (86 | ) | (355 | ) | – | (355 | ) | |||||||||||||||||||
| (Loss) income from continuing operations | (19,922 | ) | 30,592 | 10,670 | (5,309 | ) | 18,682 | 13,373 | |||||||||||||||||||||
| Loss from discontinued operations, net of tax | – | – | – | (67,716 | ) | 67,716 | h | – | |||||||||||||||||||||
| Net (loss) income | (19,922 | ) | 30,592 | 10,670 | (73,025 | ) | 86,398 | 13,373 | |||||||||||||||||||||
| Net income attributable to noncontrolling interest | (193 | ) | – | (193 | ) | – | – | – | |||||||||||||||||||||
| Net (loss) income attributable to Monster Worldwide, Inc. | $ | (20,115 | ) | $ | 30,592 | $ | 10,477 | $ | (73,025 | ) | $ | 86,398 | $ | 13,373 | |||||||||||||||
| *Diluted (loss) earnings per share attributable to Monster Worldwide, Inc.: | |||||||||||||||||||||||||||||
| (Loss) income from continuing operations | $ | (0.21 | ) | $ | 0.31 | $ | 0.11 | $ | (0.05 | ) | $ | 0.17 | $ | 0.12 | |||||||||||||||
| Income (loss) from discontinued operations, net of tax | – | – | – | (0.61 | ) | 0.61 | – | ||||||||||||||||||||||
| Diluted (loss) earnings per share | $ | (0.21 | ) | $ | 0.31 | $ | 0.11 | $ | (0.66 | ) | $ | 0.78 | $ | 0.12 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||||||||
| Basic | 97,872 | 97,872 | 97,872 | 111,098 | 111,098 | 111,098 | |||||||||||||||||||||||
| Diluted | 97,872 | 98,655 | 98,655 | 111,098 | 112,129 | 112,129 | |||||||||||||||||||||||
| Twelve Months Ended December 31, 2013 | Twelve Months Ended December 31, 2012 | ||||||||||||||||||||||||||||
| As Reported | Non GAAP Adjustments | Consolidated Non GAAP | As Reported | Non GAAP Adjustments | Consolidated Non GAAP | ||||||||||||||||||||||||
| Revenue | $ | 807,579 | $ | – | $ | 807,579 | $ | 890,392 | $ | – | $ | 890,392 | |||||||||||||||||
| Salaries and related | 379,406 | (25,391 | ) | a | 354,015 | 408,305 | (28,174 | ) | a | 380,131 | |||||||||||||||||||
| Office and general | 205,397 | (2,920 | ) | b | 202,477 | 226,601 | (4,659 | ) | b | 221,942 | |||||||||||||||||||
| Marketing and promotion | 169,590 | – | 169,590 | 188,326 | – | 188,326 | |||||||||||||||||||||||
| Restructuring and other special charges | 19,995 | (19,995 | ) | c | – | 40,358 | (40,358 | ) | c | – | |||||||||||||||||||
| Recovery of restitution award from former executive | – | – | – | (5,350 | ) | 5,350 | d | – | |||||||||||||||||||||
| Total operating expenses | 774,388 | (48,306 | ) | 726,082 | 858,240 | (67,841 | ) | 790,399 | |||||||||||||||||||||
| Operating income | 33,191 | 48,306 | 81,497 | 32,152 | 67,841 | 99,993 | |||||||||||||||||||||||
| Operating margin | 4.1 | % | 10.1 | % | 3.6 | % | 11.2 | % | |||||||||||||||||||||
| Interest and other, net | (5,770 | ) | – | (5,770 | ) | (5,883 | ) | – | (5,883 | ) | |||||||||||||||||||
| Income before income taxes and loss in equity interests | 27,421 | 48,306 | 75,727 | 26,269 | 67,841 | 94,110 | |||||||||||||||||||||||
| Provision for (benefit from) income taxes | 23,004 | 3,528 | e,f,g | 26,532 | (32,978 | ) | 64,517 | e,f | 31,539 | ||||||||||||||||||||
| Loss in equity interests, net | (908 | ) | – | (908 | ) | (1,081 | ) | – | (1,081 | ) | |||||||||||||||||||
| Income from continuing operations | 3,509 | 44,778 | 48,287 | 58,166 | 3,324 | 61,490 | |||||||||||||||||||||||
| Loss from discontinued operations, net of tax | (3,798 | ) | 3,798 | h | – | (316,886 | ) | 316,886 | h | – | |||||||||||||||||||
| Net (loss) income | (289 | ) | 48,576 | 48,287 | (258,720 | ) | 320,210 | 61,490 | |||||||||||||||||||||
| Net income attributable to noncontrolling interest | (193 | ) | – | (193 | ) | – | – | – | |||||||||||||||||||||
| Net (loss) income attributable to Monster Worldwide, Inc. | $ | (482 | ) | $ | 48,576 | $ | 48,094 | $ | (258,720 | ) | $ | 320,210 | $ | 61,490 | |||||||||||||||
| *Diluted earnings (loss) per share attributable to Monster Worldwide, Inc.: | |||||||||||||||||||||||||||||
| Income from continuing operations | $ | 0.03 | $ | 0.41 | $ | 0.45 | $ | 0.51 | $ | 0.03 | $ | 0.54 | |||||||||||||||||
| Loss from discontinued operations, net of tax | (0.04 | ) | 0.04 | – | (2.78 | ) | 2.78 | – | |||||||||||||||||||||
| Diluted earnings (loss) per share | $ | – | $ | 0.45 | $ | 0.45 | $ | (2.27 | ) | $ | 2.81 | $ | 0.54 | ||||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||||||||
| Basic | 106,947 | 106,947 | 106,947 | 112,866 | 112,866 | 112,866 | |||||||||||||||||||||||
| Diluted | 107,913 | 107,913 | 107,913 | 113,995 | 113,995 | 113,995 | |||||||||||||||||||||||
| Note Regarding Non GAAP Adjustments: | |||||||||||||||||||||||||||||
| The financial information included herein contains certain non-GAAP financial measures. This information is not intended to be used in place of the financial information prepared and presented in accordance with GAAP, nor is it intended to be considered in isolation. We believe that the above presentation of non-GAAP measures provide useful information to management and investors regarding certain core operating and business trends relating to our results of operations, exclusive of certain restructuring related and other special charges. | |||||||||||||||||||||||||||||
| Non GAAP adjustments consist of the following: | |||||||||||||||||||||||||||||
| a | Costs related to stock based compensation. | ||||||||||||||||||||||||||||
| b | Costs directly associated with our previously announced review of strategic alternatives. | ||||||||||||||||||||||||||||
| c | Restructuring related charges pertaining to the strategic actions that the Company announced in January and November 2012. 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, and professional fees. | ||||||||||||||||||||||||||||
| d | Restitution award paid by a former executive to the United States government in connection with the Company’s historical stock option practices. | ||||||||||||||||||||||||||||
| e | Non-GAAP income tax adjustment includes the reversal of income tax reserves inclusive of interest due to uncertain tax positions and a tax benefit due to certain losses arising from the company’s restructuring. | ||||||||||||||||||||||||||||
| f | Income tax adjustment is calculated using the effective tax rate of the reported period multiplied by the Non GAAP adjustment to income (loss) before income taxes and loss in equity interests. Non-GAAP income tax adjustment includes provision for tax valuation allowances. | ||||||||||||||||||||||||||||
| g | Income tax adjustment related to sale of a noncontrolling interest in our South Korean business. | ||||||||||||||||||||||||||||
| h | Discontinued operations related to our sale of ChinaHR and the exit of our businesses in Latin America and Turkey. | ||||||||||||||||||||||||||||
| *Earnings per share may not add in certain periods due to rounding. | |||||||||||||||||||||||||||||
| MONSTER WORLDWIDE, INC. | ||||||||||||||||||||
| UNAUDITED NON-GAAP OPERATING SEGMENT INFORMATION | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Three Months Ended December 31, 2013 | Careers – North America | Careers – International | Internet Advertising & Fees | Corporate Expenses | Total | |||||||||||||||
| Revenue – GAAP | $ | 111,000 | $ | 69,687 | $ | 18,031 | $ | 198,718 | ||||||||||||
| Operating income (loss) – GAAP | $ | 16,968 | $ | (3,226 | ) | $ | 6,016 | $ | (9,774 | ) | $ | 9,984 | ||||||||
| Non GAAP Adjustments | 3,347 | 431 | 737 | 3,711 | 8,226 | |||||||||||||||
| Operating income (loss) – Non GAAP | $ | 20,315 | $ | (2,795 | ) | $ | 6,753 | $ | (6,063 | ) | $ | 18,210 | ||||||||
| EBITDA – GAAP | $ | 26,375 | $ | 2,663 | $ | 7,792 | $ | (5,838 | ) | $ | 30,992 | |||||||||
| Non GAAP Adjustments | – | – | – | – | – | |||||||||||||||
| EBITDA – Non GAAP | $ | 26,375 | $ | 2,663 | $ | 7,792 | $ | (5,838 | ) | $ | 30,992 | |||||||||
| Operating margin – GAAP | 15.3 | % | -4.6 | % | 33.4 | % | 5.0 | % | ||||||||||||
| Operating margin – Non GAAP | 18.3 | % | -4.0 | % | 37.5 | % | 9.2 | % | ||||||||||||
| EBITDA margin – GAAP | 23.8 | % | 3.8 | % | 43.2 | % | 15.6 | % | ||||||||||||
| EBITDA margin – Non GAAP | 23.8 | % | 3.8 | % | 43.2 | % | 15.6 | % | ||||||||||||
| Three Months Ended December 31, 2012 | Careers – North America | Careers – International | Internet Advertising & Fees | Corporate Expenses | Total | |||||||||||||||
| Revenue – GAAP | $ | 111,544 | $ | 81,128 | $ | 18,572 | $ | 211,244 | ||||||||||||
| Operating income (loss) – GAAP | $ | 7,407 | $ | (3,684 | ) | $ | 4,156 | $ | (8,867 | ) | $ | (988 | ) | |||||||
| Non GAAP Adjustments | 8,721 | 8,861 | 1,484 | 4,097 | 23,163 | |||||||||||||||
| Operating income (loss) – Non GAAP | $ | 16,128 | $ | 5,177 | $ | 5,640 | $ | (4,770 | ) | $ | 22,175 | |||||||||
| EBITDA – GAAP | $ | 19,032 | $ | 4,392 | $ | 6,137 | $ | (6,052 | ) | $ | 23,509 | |||||||||
| Non GAAP Adjustments | 5,888 | 6,741 | 958 | 1,465 | 15,052 | |||||||||||||||
| EBITDA – Non GAAP | $ | 24,920 | $ | 11,133 | $ | 7,095 | $ | (4,587 | ) | $ | 38,561 | |||||||||
| Operating margin – GAAP | 6.6 | % | -4.5 | % | 22.4 | % | -0.5 | % | ||||||||||||
| Operating margin – Non GAAP | 14.5 | % | 6.4 | % | 30.4 | % | 10.5 | % | ||||||||||||
| EBITDA margin – GAAP | 17.1 | % | 5.4 | % | 33.0 | % | 11.1 | % | ||||||||||||
| EBITDA margin – Non GAAP | 22.3 | % | 13.7 | % | 38.2 | % | 18.3 | % | ||||||||||||
| Twelve Months Ended December 31, 2013 | Careers – North America | Careers – International | Internet Advertising & Fees | Corporate Expenses | Total | |||||||||||||||
| Revenue – GAAP | $ | 446,274 | $ | 288,623 | $ | 72,682 | $ | 807,579 | ||||||||||||
| Operating income (loss) – GAAP | $ | 65,009 | $ | (18,596 | ) | $ | 24,492 | $ | (37,714 | ) | $ | 33,191 | ||||||||
| Non GAAP Adjustments | 17,909 | 13,661 | 2,475 | 14,261 | 48,306 | |||||||||||||||
| Operating income (loss) – Non GAAP | $ | 82,918 | $ | (4,935 | ) | $ | 26,967 | $ | (23,453 | ) | $ | 81,497 | ||||||||
| EBITDA – GAAP | $ | 106,540 | $ | 11,493 | $ | 30,988 | $ | (25,968 | ) | $ | 123,053 | |||||||||
| Non GAAP Adjustments | 7,543 | 6,481 | 341 | 3,238 | 17,603 | |||||||||||||||
| EBITDA – Non GAAP | $ | 114,083 | $ | 17,974 | $ | 31,329 | $ | (22,730 | ) | $ | 140,656 | |||||||||
| Operating margin – GAAP | 14.6 | % | -6.4 | % | 33.7 | % | 4.1 | % | ||||||||||||
| Operating margin – Non GAAP | 18.6 | % | -1.7 | % | 37.1 | % | 10.1 | % | ||||||||||||
| EBITDA margin – GAAP | 23.9 | % | 4.0 | % | 42.6 | % | 15.2 | % | ||||||||||||
| EBITDA margin – Non GAAP | 25.6 | % | 6.2 | % | 43.1 | % | 17.4 | % | ||||||||||||
| Twelve Months Ended December 31, 2012 | Careers – North America | Careers – International | Internet Advertising & Fees | Corporate Expenses | Total | |||||||||||||||
| Revenue – GAAP | $ | 462,962 | $ | 351,130 | $ | 76,300 | $ | 890,392 | ||||||||||||
| Operating income (loss) – GAAP | $ | 42,686 | $ | 13,076 | $ | 17,721 | $ | (41,331 | ) | $ | 32,152 | |||||||||
| Non GAAP Adjustments | 26,826 | 22,841 | 4,506 | 13,668 | 67,841 | |||||||||||||||
| Operating income (loss) – Non GAAP | $ | 69,512 | $ | 35,917 | $ | 22,227 | $ | (27,663 | ) | $ | 99,993 | |||||||||
| EBITDA – GAAP | $ | 90,103 | $ | 42,609 | $ | 26,669 | $ | (27,233 | ) | $ | 132,148 | |||||||||
| Non GAAP Adjustments | 14,853 | 15,489 | 1,501 | 282 | 32,125 | |||||||||||||||
| EBITDA – Non GAAP | $ | 104,956 | $ | 58,098 | $ | 28,170 | $ | (26,951 | ) | $ | 164,273 | |||||||||
| Operating margin – GAAP | 9.2 | % | 3.7 | % | 23.2 | % | 3.6 | % | ||||||||||||
| Operating margin – Non GAAP | 15.0 | % | 10.2 | % | 29.1 | % | 11.2 | % | ||||||||||||
| EBITDA margin – GAAP | 19.5 | % | 12.1 | % | 35.0 | % | 14.8 | % | ||||||||||||
| EBITDA margin – Non GAAP | 22.7 | % | 16.5 | % | 36.9 | % | 18.4 | % | ||||||||||||
CONTACT:
Investors:
Joele Frank
Andi Rose, 212-355-4449
arose@joelefrank.com
or
Media:
Monster Worldwide, Inc.
Matt Anchin, 212-351-7528
matt.anchin@monster.com
KEYWORDS: United States North America New York
INDUSTRY KEYWORDS: Technology Internet Professional Services Human Resources
MEDIA:
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